43:13-22.29. Creation and maintenance of fund

A fund to pay pensions under this act shall be created and maintained as follows:

(A) The financial officer of the city shall deduct from every payment of salary (a) to any person who becomes a city employee after the enactment of this act and who becomes a member of the retirement system created hereby, and pay into the retirement system not less than 5% or more than 7%, as determined from time to time by the commission, of the amount of said salary, provided such employee was under 35 years of age at the time of his permanent appointment; provided, however, that any person entering the service of the municipality and becoming a member of said retirement system after reaching the age of 35 years and any present city employee not now a member of any of the 3 funds which are being merged into the retirement system created hereby, and who qualifies for membership under the provisions of this act and who was over 35 years of age at the time he received his permanent appointment, shall contribute to and there shall be deducted from his annual salary the following percentages, depending upon the age of said employee at the time of his permanent employment, as shall be determined from time to time by the commission:

AGE PERCENTAGE OF DEDUCTIONS

Over 35 years and under 36 years .....

not less than 5 1/4% or more than 7 1/4%

Over 36 years and under 37 years .....

not less than 5 1/2% or more than 7 1/2%

Over 37 years and under 38 years .....

not less than 5 3/4% or more than 7 3/4%

Over 38 years and under 39 years .....

not less than 6% or more than 8%

Over 39 years and under 40 years .....

not less than 6 1/4% or more than 8 1/4%

Over 40 years and under 41 years .....

not less than 6 1/2% or more than 8 1/2%

Over 41 years and under 42 years .....

not less than 6 3/4% or more than 8 3/4%

Over 42 years and under 43 years .....

not less than 7% or more than 9%

Over 43 years and under 44 years .....

not less than 7 1/4% or more than 9 1/4%

Over 44 years and under 45 years .....

not less than 7 1/2% or more than 9 1/2%

(b) to any employee who is, at the time of the enactment of this act a member of any of the 3 aforesaid pension funds that are being merged into the retirement system created hereby and who is now contributing less than 5% of his annual salary, the sum of not less than 5% or more than 7%, as shall be determined by the commission, of the amount of his annual salary shall be deducted; (c) to any member of any of the 3 pension funds being merged into the retirement system created hereby who is now contributing more than 5% of his annual salary not less than 1% or more than 3%, as shall be determined by the commission, of his annual salary in addition to the amount now being deducted from said annual salary. Such deductions shall continue to be made during the entire period of employment of the member and until the death or retirement of said member; provided, however, that such deductions shall be continued for a total period of at least 25 years, and in the event that death or retirement occurs before the completion of the 25-year period, the aforesaid deductions shall thereafter be continued to be made from the pension payments made pursuant to this act for the said period of time. The period during which any employee contributed to the retirement system created hereby, and any prior service credits granted such employee and standing to his credit under the various statutes referred to previously, shall be considered as part of the 25-year period herein referred to; provided, however, where an employee is promoted to a higher position in a temporary capacity, he shall continue to have deducted from his salary the amount of deductions due the pension fund on his permanent salary basis.

(B) To further provide for the solvency of the retirement system created hereby the commission shall, (1) whenever the assets of the fund reach a minimum of $150,000.00 and (2) once prior to the end of the year 1956 and once during every third year thereafter, cause the actuary appointed by the commission to make an investigation into the conduct and operation of the retirement system and into the mortality, service and compensation experience of the members and beneficiaries of the retirement system and to make a valuation of the assets and liabilities of the system. The actuary shall report thereon to the commission. Based upon said report the commission shall (a) establish for the retirement system such mortality, service and other tables as shall be deemed necessary and (b) adjust and certify the rates of contribution to be paid by members of the retirement system and the city, within the minimum and maximum schedules set forth in this act, on the basis of the said investigation, valuation and report of the actuary, to the ends that, so far as possible, (1) the assets of the fund shall not decline below a minimum of $150,000.00 and (2) the value of future contributions of members and the city, when taken with present assets, shall not be less than the value of prospective benefit payments based upon membership service to be rendered after the effective date of this act.

(C) The governing body of the city shall annually appropriate in the city budget, raise by taxation, and contribute to the retirement system an amount equal to the percentage of salary contributed by the members and the pensioners of the said system. Such payment shall continue to be made during the entire period of employment of each member and until the death or retirement of each member; provided, however, that such payment shall be continued in each case for a total period of at least 25 years, and in the event that a member dies or retires before the completion of the 25-year period, the said percentage shall thereafter continue to be made upon the amount of pension payments resulting from such death or retirement until the end of such 25-year period has been reached, provided, further, however, the contribution of the city shall not continue beyond the time that the particular pension is paid or is being paid.

(D) All moneys given to or donated to the retirement system and all earnings of this retirement system shall be deposited to the credit of the system.

(E) All moneys required to meet the city contributions provided for under this and all other sections of this act shall be appropriated annually in the city budget by the governing body. If at any time there is not sufficient money to meet the requirements of this system and pay the pensions or other benefits provided for herein, the governing body shall, from time to time, include in any tax levy a sum sufficient to meet the said requirements and payments of the retirement system, provided, however, that no insufficiency of funds shall be made up by the city unless and until the commission shall have required deductions from employees at the maximum rates set forth in subsection (A) of this section.

L.1954, c. 218, p. 824, s. 27.