§ 2.28.020. Definitions.

Unless otherwise expressly stated or the context clearly indicates a different intention, the following terms shall, for the purpose of this chapter, have the meanings indicated in this section:

"Board" means the Wichita employees' retirement board of trustees.

"City" means the City of Wichita, Kansas, and includes employees under the jurisdiction of the City Manager eligible for benefits under this chapter.

"Deferral period" means that period of time between the date a vested employee leaves service and the date upon which the employee is eligible for and begins to receive a pension benefit.

"Disabled" or "disability" means the total inability to perform permanently any duties for the City which such employee might reasonably be expected to perform in view of the employee's training, experience and education.

"DROP" means Deferred Retirement Option Plan.

"DROP account" means the notational account established to reflect an amount equivalent to the accumulation of the participating member's monthly retirement benefit payments (including post retirement adjustments) if the member had retired upon participation in DROP and interest under Section 2.28.230 or 2.28.240.

"Employee" means any person regularly appointed or elected and receiving salary from the City on a full-time basis. For purposes of Plan No. 2 membership, "employee" shall also mean any member of the City Council elected on or after July 1, 1973, who has served at least seven years in that capacity, whether continuously or not, and who has paid into the fund the full amount which would have been deducted from such council member's salary under Plan No. 2, together with interest on such sum at the rate of seven percent per annum. "Employee" does not include seasonal, temporary, limited or part-time employees, nor commissioned police and fire personnel who are covered under a separate retirement ordinance; nor persons who have retired under any retirement plan or program of the City of Wichita and who are receiving a benefit from such program. "Employee" also does not include any person appointed by the City Council as City Manager, or appointed by the city manager as an employee in pay grade 001 through 006 inclusive of the management pay plan of the City under an offer of employment which provides the option of either membership in Wichita's employees' retirement Plan No. 3 or the International City Management Association deferred compensation and/or retirement programs, unless such person files in writing an irrevocable selection of membership in Wichita employees' retirement Plan No. 3 within sixty days of commencing employment.

"Final average salary" means the average annual salary for the three highest consecutive years of credited service within the last ten years of credited service as an employee prior to retirement and which shall be computed on the basis of the seventy-eight consecutive pay periods within which the salary is highest.

"Fund" means the Wichita Employees' Retirement Fund.

"Investment credit" is a prorated share of the increased or decreased value of the fund as a result of investment activities.

"Minor child" or "minor children" means a child or children of the blood or adopted children under the age of eighteen.

"QDRO" means qualified domestic relations order.

"Salary" means the monthly rate of pay being paid in accordance with the City's pay plan or salary ordinances, and also includes longevity pay in the computation of retirement benefits.

(a)

For employees in Plan No. 1, salary shall also include overtime pay, lump sum vacation pay, or any fees or allowances for automobile use or other expenses.

(b)

For employees in Plan No. 2, salary does not include overtime pay, lump sum vacation pay, or any fees or allowances for automobile use or other expenses.

"Self-direction responsibility" means an employee is to determine the asset allocation and specific investments for such employee's Vested account, following an election to continue participation in Plan 3 as provided for by Section 2.28.060.

"Service" means the period beginning on the first day upon which a person first becomes an employee of the city covered by the retirement plan and ending on the date of the latest termination of such employment, excluding all intervening periods during which such employee shall have been separated from employment with the city due to resignation, dismissal, layoff or expiration of any term of appointment and all periods of leaves of absence without pay; and all periods of time for which the employee has requested and received a refund of his or her contributions to the retirement system or vested account.

Periods during which a member is receiving disability retirement benefits shall be counted as service under the following circumstances:

(a)

For employees in Plan No. 1, any such periods shall be credited as service if such employee is re-employed by the city after having received such disability retirement benefits;

(b)

For employees in Plan No. 2, any such period shall be credited as service if such employee is re-employed by the city after having received such disability retirement benefits and is so employed for at least three years thereafter.

"Sick leave," unused and accumulated, shall be defined as service; provided the sick leave shall not be used to meet existing age or vesting requirements.

"Vested" means for a Plan No. 1 or Plan No. 2 employee the completion of seven years of service, not including unused and accumulated sick leave.

"Vested account" means those contributions and investment credits in the account of an employee in Plan No. 3 which are subject to distribution for the benefit of such employees or his or her beneficiaries. Employee contributions shall become part of such employee's "vested account" upon deduction from the employee's salary. Investment credits earned on employee contributions shall become part of such employee's "vested account" when earned. City contributions and investment credits thereon shall become part of an employee's "vested account" in accordance with the following schedule:

(a)

Twenty-five percent of such contributions and investment credits shall become part of an employee's "vested account" after three years continuous service;

(b)

Fifty percent of such contributions and investment credits shall become part of an employee's "vested account" after five years continuous service; and

(c)

One hundred percent of such contributions and investment credits shall become part of an employee's "vested account" after seven years continuous service.

The portion of any city contributions and the earnings thereon which are forfeited by an employee who terminates employment with less than seven years service, shall be applied toward city contributions which the city would otherwise be required to deposit in the fund.

Benefits paid from and employee contributions made to the retirement plan shall not exceed the maximum benefits and maximum annual additions, respectively, permissible under Section 415 of the Internal Revenue Code.

(Ord. No. 45-392 § 1; Ord. No. 44-812 § 2; Ord. No. 47-451, § 1, 3-27-07)