§ 101. Definitions.

For the purpose of this title, the following words and phrases shall have the meanings stated in this section.

A.

Actuarial accrued liability. The portion of the present value of fully projected benefits accrued as of the valuation date.

B.

Actuarial equivalent. The benefit of equivalent value, computed on the basis of an appropriate Mortality Table as approved by the Board of Trustees. The mortality table used for purposes of adjusting any benefit or limitation under 415(b)(2)(B), (C) or (D) of the Internal Revenue Code of 1986, as amended, is the table prescribed in Rev. Rul. 2001-62.

C.

Actuarially Determined Employer Contribution (ADEC). The Employer's periodic required contribution, expressed as a percentage of earnings of all participating employees, as determined by adding the normal cost to the unfunded actuarial accrued liability, and as reported in the annual actuarial examination required by Section 1005 hereof.

D.

Actuary. An independent, qualified actuary selected by the Board of Trustees.

E.

Basic employee contributions. The mandatory contributions described in Section 301 hereof.

F.

Board of Trustees. The Board of Trustees of The Municipal Employees' Retirement Plan provided for in Section 1000 hereof.

G.

Closed amortization schedule. Beginning January 1, 2016, the Employer's total unfunded actuarial accrued liability will be amortized as a level percent of the total earnings of Employees in the Plan, over a closed period of thirty (30) years. At the beginning of each plan year thereafter, the amortization schedule will decrease by one year, so that the projected unfunded actuarial accrued liability for December 31, 2046, will be no greater than zero dollars. The closed amortization schedule will continue beyond December 31, 2046 so long as the Plan has an actuarial accrued liability greater than zero dollars.

H.

Continuous employment. A period or periods of employment by an Employee while making Basic Employee Contributions to the Plan, plus periods of employment by an Employee during which the Employee is not allowed to make Basic Employee Contributions to the Plan because the Employee does not satisfy the Plan's minimum service requirements or (prior to September 1, 1990) the Plan's minimum age requirements.

I.

Credited interest.

1.

Basic Employee contributions. Credited interest on Basic Employee Contributions shall mean interest at an annual percentage rate of three and one-half percent (3.5%) for the period May 1, 1960, through December 31, 1972; four percent (4%) for the period January 1, 1973, through December 31, 1974; and five percent (5%) for periods on and after January 1, 1975, or such other rate as may be established from time to time by the Board of Trustees.

2.

Optional Employee contributions. Credited interest on optional Employee contributions shall mean interest of an annual percentage rate of three and one-half percent (3.5%) for the period May 1, 1960, through December 31, 1972; five percent (5%) for the period January 1, 1973, through December 31, 1974; and six percent (6%) for periods on and after January 1, 1975, or such other rate as may be established by the Board of Trustees. Such percentage rate shall not exceed the percentage of interest, dividends and realized and unrealized capital gains earned by the fund in the preceding calendar year. The accumulated interest credited on optional Employee contributions shall not be less than the interest that would have been credited on Basic Employee Contributions during the same period.

3.

Computation of interest. Computation of credited interest shall be based on the total amount of each Participant's basic and optional Employee contributions and previously credited interest, if any, on deposit in the fund immediately before the first day of the preceding calendar year. Such credited interest shall be computed annually and credited to each Participant's share of the fund effective the first day of each calendar year, except that in the event of a Participant's termination of employment or death on any day other than December 31st, credited interest shall be computed, including credit for all completed months of employment, during such partial plan year.

J.

Credited service. A period which is included in the calculation of the amount of a Participant's retirement income. A Participant's credited service shall be determined in accordance with Chapter 5 herein.

K.

Earnings. The monthly base earnings payable to a Participant by the Employer, excluding payments for overtime, reimbursement for travel or other expenses, service pay or other special payments. On and after January 1, 1989, such Earnings shall include any amounts defined as Basic Employee Contributions. Earnings shall also include amounts which would be payable as base earnings but for election by the Participant to defer such earnings under a plan deemed to be a qualified plan described in Sections 125, 401, 403 or 457 of the Internal Revenue Code of 1986, as amended. Effective January 1, 1989, earnings for any plan year will be limited to the first Two Hundred Thousand Dollars ($200,000.00) of Earnings (or such other amount determined in accordance with Code Section 415(d)). Effective January 1, 1996, for each Participant who first becomes a Participant in the Plan after 1995, earnings for any plan year will be limited to the first One Hundred Fifty Thousand Dollars ($150,000.00) of earnings (or such other amount determined in accordance with Code Section 401(a)(17)). For purposes of calculating Earnings received on or after January 1, 2002, the limitation under Section 401(a)(17) of the Code is increased to Two Hundred Thousand Dollars ($200,000.00), as adjusted.

L.

Employee. A permanent and full time, classified or unclassified employee of the Employer. Employees shall be considered full time if their position contemplates a normal work week of forty (40) hours or more. However, employees who were participating in the Plan and required to work less than forty (40) hours per week on January 1, 1974, shall be eligible to continue such participation in the Plan so long as they are otherwise eligible.

M.

Employer. The City of Tulsa, Oklahoma; the Indian Nations Council of Governments; the City of Tulsa-Rogers County Port Authority; the Tulsa Airport Improvement Trust; the Tulsa City-County Library; the Metropolitan Tulsa Transit Authority; and the Tulsa River Parks Authority.

N.

Final average earnings.

1.

The average monthly earnings of a Participant during the thirty (30) months, whether consecutive or not, in which his aggregate earnings shall have been highest, selected from the last sixty (60) months prior to his termination of employment, excluding any part of the Participant's employment during which no earnings were payable to the Participant. If the Participant has fewer than thirty (30) months of earnings during such sixty (60)-month period, the thirty (30)-month average shall be taken over additional months of Earnings during such sixty (60)-month period, excluding any months during which no Earnings were paid to the Participant. If the Participant shall have been employed for fewer than thirty (30) complete months, or if the period of average earnings is reduced to less than thirty (30) months in accordance with the previous sentence, all of the complete months during the total period of employment or during the period as so reduced shall be used for the purpose of determining final average earnings.

2.

For purposes of computing final average earnings of a Participant who retires after July 1, 2002, and whose earnings were reduced by the fiscal year 2002-2003 temporary, general wage rollback of approximately two and seven tenths percent (2.7%), the Participant's earnings for the month of June 2002 shall be the Participant's earnings during months within fiscal year 2002-2003 for which the Participant's earnings were so reduced, unless the Participant has attained higher earnings, in which event, the higher monthly earnings shall be used.

O.

Funded ratio. The ratio of the Plan's current assets to the present value of earned benefits, as determined by the Plan's actuary, by any method acceptable to the Governmental Accounting Standards Board (GASB).

P.

Legislative body. The governing body of the City of Tulsa, Tulsa, Oklahoma, a municipal corporation, as established by the currently existing or any subsequently amended Charter of the City of Tulsa, Oklahoma.

Q.

Long-term disability. Disability of a Participant which results in such Participant's becoming qualified for and receiving long-term disability benefits under the terms of an insurance program, then available through the Employer to its Employees, or which disability results in such Participant's receiving disability benefits under the provisions of the Social Security Act.

R.

Normal cost. The portion of the cost of projected benefits allocated to the current plan year. The normal cost for which the Employer is responsible equals the total normal cost for the Plan reduced by Employee Contributions.

S.

Normal retirement date. The first day of the month after a person reaches sixty-five (65) years of age or on the sixty-fifth birthday, if that is the first day of the month.

T.

Optional Employee contributions. Contributions which a Participant may make, but is not required to make, to the Plan as described in Subsection 301.B hereof.

U.

Participant. An Employee who has met all the requirements for eligibility to participate in the Plan, has become included in the Plan, as provided in Chapter 2 herein, and who continues to have rights or contingent rights to benefits payable under the Plan.

V.

Plan. The Municipal Employees' Retirement Plan as established by the provisions of this title.

W.

Plan improvement. Any change made to the Plan which results in a richer benefit to Participants.

X.

Plan year. The calendar year.

Y.

Present value of fully projected benefits. The total future benefit cash flows from the Plan projected using actuarial assumptions, and then discounted to the valuation date using the valuation interest rate.

Z.

Retirement fund or fund. The Employee Retirement Fund described in Section 1100 hereof held in trust and established to provide the benefits and administrative costs required by the Plan.

AA.

Staff Member. The City personnel who assist the Board of Trustees in carrying out the duties and responsibilities of the Municipal Employees' Retirement Plan.

BB.

Termination of employment. The retirement, resignation or other voluntary or involuntary cessation of an Employee's employment with the Employer.

CC.

Unfunded actuarial accrued liability. The excess, if any of the actuarial accrued liability over the actuarial value of assets.

(Ord. Nos. 17199, 17389, 17981, 18364, 18513, 19320, 19899, 19988, 20420, 20497, 20812, 21204, 21401; Ord. No. 23382, § 1, 10-1-2015 )