Section 881.403 - Contract provisionsAny contract for an optional retirement plan entered into between a municipality and the board shall not provide for any benefits in excess of or minimum member's contribution rates less than those available to that municipality for that class of employes under any existing law pertaining to the establishment of a retirement or pension system, except to the extent that excess investment earnings are allocated to provide for additional pension benefits or member accruals as otherwise provided in this law.
The contract shall specifically state the following terms and conditions:
(1) The superannuation retirement age at which a member shall become eligible for a full normal retirement allowance in accordance with the formula specified in the contract.(2) Length of service requirements which must be met before a member becomes eligible for either a superannuation retirement allowance, an early retirement allowance and the method of determining any reduction factors involved in the computation of the amount of the allowance because of retirement prior to attaining superannuation age.(3) Provisions for the refunding of accumulated deductions plus excess interest to employes who leave the service of the municipality before they become eligible for any type of retirement benefit and whether or not the employe shall be entitled to interest earned on contributions.(4) Provisions relating to the types and amounts of disability retirement benefits for which a member may become eligible, and the qualifications therefore.(5) The availability of any vesting or deferred benefits to which a member may become entitled.(6) A description of the amount and the manner in which a member may qualify for any death benefits, both before and after retirement, including any prescribed payments to widows or children under eighteen years of age.(7) The formula used to determine the amount of normal retirement benefits, including an explanation of the salary or compensation to be used in the computations, and a statement concerning any social security offset provisions included in the contract.(8) A description of any optional methods of payment of retirement allowances available to a member, including the availability of the DROP.(9) Any provisions for cost-of-living increases, and limitations thereon, which may be included.(10) The manner in which the rate or rates of employe contributions shall be determined, together with any provisions for additional voluntary contributions.(11) The manner in which the rates of contribution from the municipalities shall be determined.(12) The manner in which costs for prior service for which the municipality is willing to assume liability shall be determined, with respect to both the municipality's share and the member's share, if any.(13) The manner in which credit for any allowable military service shall be determined and the manner in which costs of service shall be paid.(14) Any other information which might have a bearing on the costs or benefits of the retirement plan which might be required by the board in the administration of the plan, including whether the municipality will permit an eligible retired public safety officer to direct that a portion of his annuity be used to pay qualified accident, health or long-term care insurance premiums as remitted under section 402(l) of the Internal Revenue Code.1974, Feb. 1, P.L. 34, No. 15, § 403, effective in 90 days. Amended 1980, May 17, P.L. 135, No. 50, § 11, effective in 60 days; 2010, July 9, P.L. 434, No. 56, § 16, imd. effective.