The following words and phrases, as used in this act, shall be construed to have the following meanings:

“Board,” the city retirement board created by this act.

“City employe,” an officer or employe of the city whose salary or compensation is paid on a yearly or monthly basis, including the collector of taxes and employes of the office of collector of taxes and also any officer or employe regularly employed two hundred or more days per year whose compensation is paid on a per diem basis.

“Fund,” the city employes' retirement fund created by this act.

“Accumulated deductions,” the total of the amounts deducted from the salary of a contributor and paid into the fund created by this act and standing to the credit of the members' annuity reserve account, together with the regular interest thereon.

“Contributor,” any person who has accumulated deductions in the fund created by this act standing to the credit of the members' annuity reserve account.

“Beneficiary,” any person in receipt of a retirement allowance under this act.

“Prior service,” all service as a city employe served not later than December thirty-first preceding the year a retirement system is established in any city.

“Original member,” a member who was a city employe on the date of establishment of a retirement system under this act.

“New member,” a city employe who shall have become a member of the retirement system subsequent to the date a retirement system is established under this act in any city.

“Superannuation retirement age,” as applied to a contributor, means sixty years of age.

“Final salary,” the average annual salary received by a contributor for the five years of service immediately preceding retirement, or in the event a member has not served five years, the total salary received divided by the number of years served.

“Regular interest,” interest at the rate of three and one-half per centum, compounded annually.

“City annuity,” payments for life or during disability derived from contributions made by the city.

“Member's annuity,” payments for life or during disability derived from contributions made by the contributor.

“Retirement allowance,” the city annuity plus the member's annuity.