§ 3.85.015. Definitions.

Unless a different meaning is plainly required by the context, the following words and phrases shall have the following meanings:

A.

Accumulated contributions means the sum of all amounts deducted from a member's compensation or paid by a member who is reinstating past service (buy-back) contributions, together with any interest credited to such sums.

B.

Active membership means membership in the retirement system while employed, whether or not receiving compensation.

C.

Actuarial equivalent means a benefit having the same value as a benefit it replaces.

D.

Alternate payee means a person named in a qualified domestic relations order who is granted the right to receive a portion of the benefits payable to a member under this chapter.

E.

And means a conjunctive term. When used to separate a set of conditions, the utilization of the term "and" shall mean that the fulfillment of all such conditions is required.

F.

Average monthly compensation means a Plan I or Plan II member's compensation paid by the Municipality during the period of the three consecutive calendar years which yielded the highest income divided by the number of months for which such compensation was received. This can also be calculated by utilizing the two full calendar years preceding retirement, plus at least the month of January of the third and final year if that produces a higher monthly average. The amount of time over which average final compensation is calculated could therefore range from a period of 25 months to 36 months depending on the date of retirement. The definition applicable to this provision for Plan III shall be termed final average compensation.

G.

Beneficiary means any person other than a retired member receiving a retirement benefit from the retirement system.

H.

Board, board of trustees or retirement board means the nine-member, elected and appointed board members, as an entity of the retirement system.

I.

Break in service means a separation from the municipal workforce including termination, resignation, layoff, or retirement for a period of time and under conditions specified in this chapter.

J.

Children means natural or adopted sons or daughters. Stepchildren and foster children are not included in the definition of children.

K.

Children's benefit means that additional sum, applicable to Plan III, not to exceed ten percent of the member's final average compensation and to be paid to the disabled member or the legal guardian of the member's dependent children who were born before or after the date of disability or death of the member and continuing for each child until the attainment of age 18, or a disabled child ceases to be considered disabled by the Social Security Administration. The children's benefit for one child shall be five percent and the benefit for two or more children shall be ten percent (10%).

L.

Compensation for Plan I and Plan II members shall include a member's base rate of pay, overtime, longevity pay, shift differential, education, differential pay, specialty pay, acting pay, and holiday pay, provided that such pay elements are subject to required contributions to the retirement system, and are reported in the pay periods in which they are actually paid, during each calendar year.

For Plan III members, compensation shall include the basic hourly wage, longevity, holiday pay, shift differential pay and educational pay, provided that such pay elements are subject to a required contribution to the retirement system and are reported in the pay periods in which they are actually paid, during each calendar year.

M.

Credited service means the total period of regular, fulltime municipal employment for which retirement benefits under this system, or any prior eligible system of the municipality, are earned and subject to contributions. Credited service shall also include military service credit approved by the board pursuant to this chapter, or as otherwise required by state or federal law. Credited service does not include any unpaid leave of absence exceeding 30 consecutive calendar days in a calendar year. Credited service shall not include any service for the municipality in a position other than as police officer or firefighter as defined in this definitions section.

N.

Custodian shall mean a financial institution or trust company designated by the board to maintain physical possession of the assets of the system.

O.

Deferred vested member means a member of the plan who:

1.

Has completed a minimum of five years of credited service;

2.

Has not reached the age of 55 years;

3.

Has left the employment of the municipality or has assumed a new position with the municipality which is not eligible for membership in the system; and

4.

Has not received a refund of his contributions and interest from the system.

P.

Dependent means a person who has received more than 50 percent of his or her support during the previous calendar year from a system member.

Q.

Duties means the essential functions assigned and performed by the member as depicted on current, approved, municipal position description documents, excluding elective, optional, volunteer and special assignments and tasks.

R.

Early retirement means a member's withdrawal from service, including a deferred vested member, under circumstances permitting the payment of a retirement benefit before such member is eligible for normal retirement. This shall not include a disability retirement. For Plan I and Plan II, early retirement occurs after the member has at least five years of service and is at least 55 years of age at the time of termination of employment. For Plan III, early retirement occurs after the member has accumulated at least 15 years of service and terminates employment with the municipality.

S.

Employee means a firefighter or a police officer presently employed by the municipality.

T.

Employee contribution means the amount which may be contributed by a member as required by the provisions of this chapter. Employee contributions shall be paid on a pre-tax basis as provided by the Internal Revenue Code.

U.

Enhanced benefit means a benefit created from time to time from available surplus assets.

V.

Final average compensation means a Plan III member's compensation during the 52 consecutive bi-weekly pay periods immediately prior to the last day of actual work prior to the date benefits were awarded, or during the period of any two consecutive tax years, divided by 24 months, whichever results in the higher amount.

W.

Firefighter means any person employed by the municipality whose duties it is to extinguish fires, to protect life and to protect property and to hold a position having one of the following job titles or performing duties which are substantially similar to the duties established for the job title as of July 1, 1977 for members of Plans I and II and April 17, 1984 for Plan III members. In the case of doubt as to coverage of a position, the board of trustees' determination shall be final and binding. The covered positions are:

1.

Chief of paramedic training;

2.

Deputy fire chief;

3.

Deputy fire marshal;

4.

Fire apparatus engineer;

5.

Fire battalion chief;

6.

Fire captain;

7.

Fire chief;

8.

Fire investigator;

9.

Firefighter trainee;

10.

Firefighter I;

11.

Firefighter II;

12.

Firefighter III;

13.

Fire inspector;

14.

Fire training specialist;

15.

Paramedic;

16.

Paramedic I;

17.

Paramedic II;

18.

Paramedic supervisor;

19.

Paramedic intern;

20.

Senior fire captain;

21.

Incident safety officer;

22.

Fire training officer.

X.

Fire representative means a trustee who is an active or retired member of the fire department who is elected from among the active and retired members of the fire department and appointed by the mayor consistent with the Municipal Charter. This term is interchangeable with the term "fire trustee."

Y.

Full pay period means a pay period in which a member receives compensation for the normally scheduled number of hours (e. g., 80 hours or 112 hours for kelly shift employees of the fire department) at the member's regular hourly or overtime rate of pay. A pay period during which a member is on leave without pay or during which a member's hourly rate is reduced due to injury leave does not count as a full period.

Z.

Fund means the trust fund which comprises the assets of the Anchorage Police and Fire Retirement System.

AA.

Gross monthly compensation means the earnings received by members of Plans I and II during the 26 full pay periods prior to disability, death or the conversion to a disability/death benefit after retirement (or 24 pay periods when the payroll cycle was semi-monthly), divided by 12 months. If the period of employment is less than one year, the gross monthly compensation shall be determined utilizing the actual period of employment.

BB.

Guardian means a person appointed in accordance with Alaska law and charged with the duty of managing the affairs of a member or beneficiary of the plan.

CC.

Inactive member means a person who is neither a member, nor a deferred vested member nor a retired member. An inactive member shall have no right to receive any benefit from the system except for a refund of contributions and interest as provided for in this chapter.

DD.

Involuntary separation means the termination of a member from employment with the municipality other than through voluntary resignation.

EE.

Light duty means an active member's return to work under medical restrictions.

FF.

Line of duty death means that a police officer or a firefighter is killed while performing the assigned duties of the police officer or a firefighter with the municipality.

GG.

Malfeasance means the intentional disregard of the duties of a trustee.

HH.

May shall be construed as a permissive term.

II.

Meaningful consequences means as a result of a break in service, the reemployed member suffers losses to employment indicia including loss of rank or grade, loss of pay, loss of seniority, loss of longevity pay and establishment of a new employment date for leave accrual purposes.

JJ.

Member means a police officer or firefighter of the municipality who is actively employed and who is making required contributions to the system; or is on an unpaid leave of absence approved by the municipality; a deferred vested employee or a person, other than a survivor, alternate payee or other beneficiary, who is receiving benefits.

KK.

Minimum defined benefit shall mean those benefits provisions provided for under the prior plan at the date of termination and carried forward without interruption under this new municipal chapter.

LL.

Misfeasance means the performance of duties of a trustee in a negligent fashion.

MM.

Municipal representative means a trustee other than those elected by the active and retired police officers and firefighters and who holds the position of trustee at the pleasure of the mayor. This term is interchangeable with the term "municipal trustee."

NN.

Nonfeasance means the negligent or intentional failure to perform the duties of a trustee.

OO.

Non-occupational disability means a physical or mental condition which is determined by the disability committee which prevents a member from performing the assigned, essential functions of the position for the municipality as a police officer or firefighter, or from performing substantially similar duties for any police or fire department, when the cause of such disability is not work related as defined in this chapter.

PP.

Normal retirement means a member's withdrawal from service, including a deferred vested member, under circumstances permitting the payment of a non-disability retirement benefit.

QQ.

Occupational disability means a physical or mental condition as defined in this Code, which is determined by the disability committee which prevents a member from performing the assigned, essential functions of the position for the municipality as a police officer or firefighter, or from performing substantially similar duties for any police or fire department.

RR.

Or shall be construed to mean the alternative. When used between a pair or series of conditions, the word "or" shall designate that the fulfillment of any one of the conditions is sufficient.

SS.

Parent means the natural or adopted mother or father of a member. Foster parents and stepparents shall not be included within this definition.

TT.

Participant means members and beneficiaries of the retirement system, excluding alternate payees.

UU.

Pension shall mean a series of periodic payments, usually for life, payable in monthly installments.

VV.

Police officer shall mean any person employed by the Municipality of Anchorage in its police department who is vested with the authority to bear arms and make arrests and whose primary responsibility is the prevention and detection of crime, or the enforcement of the penal, criminal, traffic or highway laws of the State of Alaska and who holds one of the following job titles or performs duties which are substantially identical to the duties established for that job title as of July 1, 1977 for members of Plans I and II and April 17, 1984 for members of Plan III. In the case of doubt as to coverage of a position, the board of trustees' determination shall be final and binding. The covered positions are:

1.

Captain;

2.

Corporal;

3.

Deputy police chief;

4.

I.D. specialist (Plans I and II only);

5.

Investigator;

6.

Lieutenant;

7.

Patrol officer;

8.

Police chief;

9.

Police major;

10.

Senior patrol officer;

11.

Sergeant;

12.

Warrant officer.

WW.

Police representative means a trustee who is an active or retired member of the police department who is elected from among the active and retired members of the police department and appointed by the mayor consistent with the Municipal Charter. This term is interchangeable with the term "police trustee."

XX.

Prior plan shall refer to the terminated retirement system under former Chapter 3.85.

YY.

Retired member means a person who is receiving benefits from this system, but excludes temporary disability benefits, alternate payee benefits of a member or survivor benefits.

ZZ.

Retirement shall mean a member's withdrawal from active service with the immediate grant of a benefit to the member pursuant to the provisions of this chapter.

AAA.

Retirement plan means one of the three plans of benefits which comprise the retirement system.

BBB.

Separation from service means a withdrawal from service with the Municipality of Anchorage through termination, resignation, retirement, or death.

CCC.

Service means active service as an employee member of this plan.

DDD.

Service retirement means a member's retirement from active service under circumstances permitting payment of pension benefits due to length of service and without special qualifications such as disability. Service retirement shall be considered normal retirement.

EEE.

Shall means a mandatory term.

FFF.

Sibling shall mean the natural or adopted brother or sister of a member. The term "sibling" shall also include half-brothers and half-sisters. Stepbrothers and stepsisters or foster brothers and foster sisters shall not be included in this definition.

GGG.

Significant financial impact decision shall mean a decision on an issue which requires a super majority and the decision is considered by the board to affect the fiscal integrity of the system as more fully set forth in this chapter.

HHH.

Spouse means the lawful spouse of a member. An unmarried domestic partner shall not be considered a spouse.

III.

Surplus benefit account means those accounts for members created from surplus assets of the current and former retirement systems and held in trust for members until the commencement of payment of benefits.

JJJ.

Survivor means the spouse, minor children, disabled children or dependent parents of a member living at the time that a member becomes deceased.

KKK.

Temporary disability means a physical or mental condition which has not been determined to be permanent and which prevents a member from performing the assigned, essential functions of the position for the municipality as a police officer or firefighter, or from performing substantially similar physical or mental duties for any police or fire department.

LLL.

Termination means leaving employment with the municipality.

MMM.

Transfer means a member's voluntary or involuntary reclassification to a position not covered by the provisions of this chapter.

NNN.

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

OOO.

Vested benefit shall mean an immediate or deferred benefit to which a member has gained a non-forfeitable right under the provisions of this chapter.

(AO No. 2000-65, § 3, 4-18-00; AO No. 2002-54, § 1, 3-19-02; AO No. 2003-112, § 1, 9-9-03)