§ 16-63. Death benefits while an active participant.

Effective on October 1, 2004, if a participant dies while an employee, the plan pays the death benefit explained below:

(1)

If the participant was married at the time of their death and had completed ten (10) years of vesting service, then the surviving spouse can elect one (1) of the following benefits:

a.

If the participant has met the requirements of normal retirement under this plan, that is police and fire age fifty (50) with a minimum of twenty (20) years of service; age fifty-five (55) with minimum of twenty-five (25) years of service; or age sixty-five (65) with a minimum of ten (10) years of service, the plan pays the spouse a monthly annuity calculated at one hundred (100) percent spousal formula rate as in the living benefit. The benefit shall begin on the first of the month following the date of the participant's death, with the provision that upon the death of the spouse, a lump sum is paid to the spouse's beneficiary equal to the amount, if any, by which the balance of the participant contributions, with interest accrued to the date of death of the participant at the rate of four (4) percent per annum, exceeds the sum of the annuity payments previously made to the spouse.

b.

If the participant has not met the requirements of normal retirement under this plan, a monthly annuity equal to fifty (50) percent of the participant's accrued benefit as of the date of the participant's death payable to the spouse. The benefit shall begin on the first of the month coincident with or next following the later of the date the participant would have reached age fifty-five (55), with the provision that upon the death of the spouse, a lump sum is paid to the spouse's beneficiary equal to the amount, if any, by which the balance of the participant contributions, with interest accrued to the date of death of the participant at the rate of four (4) percent per annum, exceeds the sum of the annuity payments previously made to the spouse.

c.

A lump sum payment equal to the participant contributions made by the participant plus interest accrued until the date of the participant's death at the rate of four (4) percent per annum.

(2)

If the participant's death occurs where a benefit is not payable under subsection (1), the participant's beneficiary shall receive a lump sum payment equal to the participant contributions made by the participant plus interest accrued until the date of participant's death at the rate of four (4) percent per annum.

(Ord. No. 88-04, 11-18-04)

Editor's note

Ord. No. 88-04, adopted November 18, 2004, set out provisions intended for use as a new section 16-62. However, such section number exists, therefore, these provisions were redesignated as a new section 16-63 at the editor's discretion.