HomeMy WebLinkAboutOrdinance 11126ORDINANCE NO. ~~/~~
AN ORDINANCE AMENDING ORDINANCE NOS. 2999, 4060, 4250,
4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556, 7056, 7317,
7875, 8674, 8843, 9247, 9532, 10081, 10291, 10369, 10385, 10564, 10607,
AND 10679, CODIFIED AS CHAPTER 2, ARTICLE VI, DIVISION 1,
ENTITLED "EMPLOYEES' RETIREMENT FUND", OF THE CODE OF
THE CITY OF FORT WORTH (1986), AS AMENDED, WHICH
ORDINANCES ESTABLISH AND PROVIDE FOR A RETIREMENT
SYSTEM, RETIREMENT PLAN AND BENEFITS THEREUNDER FOR
EMPLOYEES OF THE CITY OF FORT WORTH, PROVIDING THAT
REGULAR CITY EMPLOYEES BECOME MEMBERS ON FIRST DAY
WORKED; PROVIDING THAT EARNED INCOME SHALL NOT
INCLUDE DEFERRED COMPENSATION; AMENDING CREDITED
SERVICE ALLOWANCE OF AUTHORIZED LEAVE, LAY-OFFS, AND
MILITARY SERVICE, AMENDING THE DEFINITION OF DISABILITY
TO REQUIRE ACCEPTANCE OF ANOTHER CITY POSITION IF
QUALIFIED, WITH POSSIBLE WAGE DECREASE, AND TO GOVERN
CONTINUANCE OF DISABILITY PENSIONS, PROVIDING FOR
EXCLUSION OF COST OF LIVING INCREASES FROM EARNED
INCOME FOR DISABILITY PENSION PURPOSES; DELETING THE
ADMINISTRATIVE FEE CHARGED TO TERMINATING MEMBERS,
PROVIDING DEATH BENEFITS TO DEPENDENTS OF A MEMBER
TERMINATING UNDER THE RULE OF SIXTY-FIVE; PERMITTING
TRUSTEES TO MAKE ALTERNATE BENEFIT PAYMENTS WHERE
A DEPENDENT OR MEMBER IS UNABLE TO HANDLE MONEY,
PROVIDING FOR TRUSTEE APPOINTMENT OF AN ACTUARY,
PROVIDING FOR A VICE CHAIR, THE ELECTION OF ONE
ADDITIONAL TRUSTEE BY RETIRED MEMBERS AND ADJUSTING
FOR TIE AS WELL AS MAJORITY VOTES, PROVIDING RESIDENCY
REQUIREMENTS FOR CERTAIN BOARD MEMBERS, PROVIDING
FOR THE ROLE OF THE CITY ATTORNEY AND OUTSIDE
COUNSEL, AMENDING TRUSTEES' FIDUCIARY STANDARD OF
CARE, PROVIDING FOR FUND'S EXECUTIVE DIRECTOR TO BE
APPOINTED BY TRUSTEES AND CONFIRMED BY CITY COUNCIL
WITH SUPERVISION BY TRUSTEES, PROVIDING FOR FINAL
BUDGET DETERMINATION AND POWER TO CONTRACT, CARRY
OUT FUND BUSINESS, AND RULES, REGULATIONS AND
PROCEDURES BY TRUSTEES, PROVIDING THAT QUALIFIED
DOMESTIC RELATIONS ORDERS SHALL BE HONORED
ACCORDING TO THE TEXAS GOVERNMENT CODE AND FEDERAL
LAW, MAKING THIS ORDINANCE CUMULATIVE, PROVIDING FOR
AMENDMENT HEREOF, PROVIDING A SEVERABILITY CLAUSE,
PROVIDING FOR ENGROSSMENT AND ENROLLMENT, AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS.
THAT THE ORDINANCE. ESTABLISHING A RETIREMENT SYSTEM,
RETIREMENT PLAN AND BENEFITS THEREUNDER FOR
EMPLOYEES OF THE CITY OF FORT WORTH IS HEREBY
AMENDED AND REENACTED IN ITS ENTIRETY TO READ AS
FOLLOWS.
SECTION I
PURPOSE AND HISTORY
The Employees' Retirement Fund of the City of Fort Worth, Texas, was originally
established by prior ordinance in 1945 The Fund is a defined benefit plan for the
exclusive purpose of providing benefits for the employees of the City of Fort Worth,
Texas.
Acknowledgement is hereby made of the creation and establishment by prior Ordinance
in 1945 of the "EMPLOYEES' RETIREMENT FUND OF THE CITY OF FORT
WORTH, A TRUST", which fund is the same pension trust considered by the Supreme
Court in City of Fort Worth v. Howerton, 149 Tex. 614, 236 S.W.2d 615 (1951), and
further, which Trust was amended in 1963 pursuant to the adoption of Article 6243e-2,
Revised Civil Statutes of Texas, which amending Article abolished the statutory Firemen's
Relief and Retirement Fund in the City of Fort Worth.
After the adoption of Article 6243e-2, abolishing the Firemen's Relief and Retirement
Fund in the City of Fort Worth and authorizing the assets thereof to be transferred to the
Employees' Retirement Fund of the City of Fort Worth, a Trust, the other employees of
the City of Fort Worth voted to permit firemen to join the Trust Fund of the Employees'
Retirement Fund of the City of Fort Worth. In 1963, all active firemen in the employ of
the City became members of and "subject to all provisions of the Employees' Retirement
Fund of the City of Fort Worth.
Sec.2-201. DEFINITIONS.
The following words, terms and phrases, when used in this Ordinance, as
amended, shall have the meanings ascribed to them in this section, except
where the context clearly indicates a different meaning. The masculine
pronouns, wherever used herein, shall include both male and female persons.
A. "Actuarial tables" shall mean such tables of mortality, interest rates,
turnover discounts, salary scales, etc., as shall be used by the Actuary
with approval of the Board.
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B. "Actuary" shall mean the individual or organization retained by the
Board to provide actuarial evaluations of the Fund.
C. "Annual Additions" shall mean the sum of the following amounts
credited to a member's account or accounts under any Defined
Contribution Plan or plans maintained by the City for the calendar
year•
1. City contributions; and
2. member contributions, other than rollover contributions from
a plan maintained by an employer other than the City; and
3. forfeitures; and
4. amounts allocated after March 31, 1984, to an individual
medical account (if any were to be established), as defined in
section 415(1)(2) of the Code, that is part of a pension or
annuity plan maintained by the City.
The amounts described in Paragraph (4} are not annual additions for
the purpose of computing the percentage limitation described in
Sec. 2-208.C.1. Furthermore, nothing in Paragraph (4) shall be
construed as requiring the payment of any medical benefits from the
Fund unless and until an amendment to the Fund to provide such
benefits has been duly made and approved by the Internal Revenue
Service. For any calendar year beginning prior to January 1, 1987,
only that portion of member contributions equal to the lesser of
member contributions in excess of six percent (6%) of 415
compensation or one-half (1i2) of member contributions shall be
considered an annual addition. All member contributions to the Fund
or any other qualified Defined Benefit Plan maintained by the City
after December 31, 1986, are treated as annual additions.
D "Annual Benefit" shall mean the aggregate benefit attributable to City
contributions payable annually under the terms of the Fund exclusive
of any benefit not required to be considered for purposes of applying
the limitations of section 415 of the Code to the Fund, payable in the
form of a straight life annuity commencing at age sixty-two (62) with
no ancillary benefits. In computing the limitations under the Fund,
the annual benefit is adjusted to the equivalent of such straight life
annuity pursuant to Sec. 2-208.C.1.
E. "Base Pension" shall have the meaning set forth in Sec. 2-208.A.
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F. 'Beneficiary' shall mean any person in receipt of a Retirement Benefit
or any other benefit provided under this Ordinance.
G 'Board" shall mean the Board of Trustees of the Employees'
Retirement Fund of the City of Fort Worth, Texas.
H. "City" shall mean the City of Fort Worth, Texas.
I. "Code" shall mean the United States Internal Revenue Code of 1986,
as amended, and any successor thereof.
J "Compensation Base" shall have the meaning set forth in Sec. 2-207.
K. "Credited Service" shall mean the number of years (treating each
complete month of service as one-twelfth of a year) in which an
employee has participated in the Employees' Retirement Fund of the
City of Fort Worth, Texas, including unused accumulated sick leave
and major medical leave pursuant to Sec. 2-205.B. Service for fifteen
(15) or more calendar days in any month shall constitute a complete
month of service; service for less than fifteen (15) calendar days in
any month shall constitute a complete month of absence.
L. 'Defined Benefit Plan" shall mean a defined benefit plan as defined
in ERISA Section 3(35).
M. "Defined Contnbution Plan" shall mean a defined contribution plan
as defined in ERISA Section 3(34).
N "Earned Income" shall mean, for purposes of Sec. 2-209, those wages,
salaries, tips, commissions, monetary bonuses or professional fees, and
other amounts received as compensation for personal services actually
rendered, including any compensation deferred under a deferred
compensation program.
O. "Earnings" shall mean the base hourly rate of pay actually paid to an
employee by the City for services rendered to the City dunng a
calendar year plus overtime, acting, assignment, holiday, longevity,
educational incentive, safety award, incentive and shift differential pay,
as reported on the employee's W-2 form. Regardless of the fact that
the following payments may be shown upon an employee's W-2 form,
earnings shall not include: (1) any non-salary allowance (such as
uniform reimbursement, automobile usage and mileage, etc.) and
(2) lump sum payments received at time of termination for unused
vacation leave, sick leave and personal leave. However, an employee
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participating in aCity-sponsored deferred compensation plan shall
have the ar'ri6unt of any deferred compensation credited to that
employee during the calendar year added to earnings reported on the
employee's W-2 form to arrive at total earnings for Retirement Fund
matters. Notwnthstanding the foregoing, earnings in excess of
$200,000, if any (or such other amounts as may be determined by
taking into account the cost-of-living adjustment provided under
section 401(a) (17) of the Code), shall be disregarded for all purposes
of this Ordinance.
P "Employee Members" shall include all regular employees of the City
of Fort Worth starting on their first day of work, provided that the
following employees shall not be eligible for participation in the
Retirement Fund. '
1. Elective officers and non-salaried, appointive members of
administrative boards and commissions, except employee
members of boards or commissions;
2. Persons employed under contract for a definite period or for
performance of a particular, special service;
3. Employees serving on a part-time basis of less than one-half
time;
4 Employees who are paid in part by the County, State or other
governmental agency, and only in part by the City; and
5 Persons carried on the payroll as temporary employees.
Whether or not any employee is a temporary or permanent
employee shall be determined by the record of the
appointment.
Any employee, department head or any other interested person may
appeal to the Board for a determination as to any person's eligibility
to become a member of the Fund. The Board's decision will be final.
Q "FRIBA" shall mean the Employee Retirement Income Security Act
of 1974, as amended, and any successor thereof.
R. "Executive Director" shall mean the individual appointed by the
Board, subject to the approval of the City Council, to supervise the
administrative affairs of the Fund and carry out the business of the
Fund.
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S. "Fiscal Year" shall mean the period from October 1st of one year
through September 30th of the following year
T. "415 Compensation" shall mean a member's wages, salaries, and other
accounts received in connection with personal services actually
rendered in the course of employment with the City during a calendar
year, but shall not include:
1. contributions made by the City to a plan of deferred
compensation, or simplified employee pension plan, to the
extent such contributions are excludable from the member's
gross income;
2. any distributions from a plan of deferred compensation
regardless of whether such amounts are includable in the gross
income of the member when distributed, except any amounts
received by a member pursuant to an unfunded, non-qualified
plan to the extent such amounts are includable in the gross
income of the member;
3. other amounts that received special tax benefits, such as
premiums for group term life insurance, to the extent that the
premiums are not includable in the gross income of the
member, or contributions made by the City, including
contributions toward the purchase of an annuity described in
section 403(b) of the Code (whether or not contributed
pursuant to a salary reduction agreement and whether or not
the amounts are actually excludable from the gross income of
the member); and
4 for any calendar year beginning after December 31, 1988,
compensation in excess of $200,000, adjusted in the manner
permitted under section 415(d) of the Code.
U "Fund" shall mean The Employees' Retirement Fund of the City of
Fort Worth, Texas.
V. "Legitimate Children" shall mean those children legitimate to their
respective parent(s), as legitimacy is defined by the Texas Family
Code and the Texas Probate Code, R.C.S. of Texas, as amended.
W "Member's Account" shall mean any account or accounts established
and maintained for an Employee Member with respect to the
member's total interest in a Defined Contribution Plan or plans
maintained by the City resulting from Annual Additions.
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X. 'Net Earnings from Self-employment" shall constitute, for purposes of
Sec. 2-209, the net earnings from self-employment as reflected upon
the Internal Revenue Form Schedule SE and its successors, which
schedule is attached to Internal Revenue Form 1040 and its
successors.
Y. 'Normal Retirement Date" shall have the meaning set forth in
Sec. 2-206.
Z. 'Price Index" shall mean the annual average for each year, ending
September 30th, of the Consumer Pnce Index (all items -United
States City Average) published monthly by the Bureau of Labor
Statistics, U.S. Department of Labor, or its successor in function.
AA. "Regular Interest" shall mean interest compounded biweekly which
should equal but not exceed the effective annual rate of five and one-
quarter percent (5-1/4%) computed on a calendar year basis on and
after the effective date of this Ordinance.
AB. "Retirement Benefit" shall mean a pension for life, as provided in the
Ordinance, payable each year in twelve (12) equal monthly
installments, beginning as of the date fixed by the Board in
accordance with the provisions of this Ordinance.
AC. 'Termination of Employment" shall mean complete severance of
employment of any member as an employee of the City by any act
or means except death, disability or retirement.
AD "Vested" shall mean the rights accrued under this Ordinance by an
Employee Member of the Fund who has been an Employee Member
for five (5) years or more, or who has attained his retirement date as
described in Sec. 2-206. Such rights shall also accrue to all members
of the Fund at the time of termination of the Fund, at the time of
any complete discontinuance of the City's contributions to the Fund,
and to members affected at the time of any partial termination of the
Fund, but only to the extent that the benefits of such members have
been funded.
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Sec. 2-202. MEMBERSHIP IN THE FUND.
Membership in the Fund shall be a condition of employment for all
permanent employees. Any existing physical condition at the time of entry
into the Fund shall not be a basis for disability retirement prior to vesting.
Sec. 2-203. MEMBERS' CONTRIBUTIONS.
A. Commencing on the effective date of membership and continuing until
the date of actual retirement or earlier termination of employment,
each member shall contribute to the Fund five and sixty-seven one-
hundredths percent (5.67%) of his Earnings. This contribution shall
be made notwithstanding that the net compensation paid in cash to
such member shall be reduced below the minimum wage prescribed
by law By accepting employment with the City, each member shall
be deemed to consent and agree to deductions made from his
compensation; and payment to such member of compensation, less the
deduction, shall constitute a full and complete discharge and
acquittance of all claims and demands whatsoever far services
rendered by such member during the period covered by such payment
except as to the benefits provided for by the Fund.
B. The members' contribution percentage provided for in this section
may be raised at any time from five and sixty-seven one hundredths
percent (5.67%) to a higher amount, as regulated by article 6243K,
Revised Civil Statutes of Texas, as amended, upon a vote in favor of
such raise by seventy-five percent (75%) of the members voting at an
election called for that purpose by the Board, provided that such raise
shall not be effective unless the City Council shall, by ordinance or
resolution, also agree that the City shall increase its contribution to
the Fund by at least an equal percentage increase.
Sec. 2-204 CITY'S CONTRIBUTIONS.
The City shall contribute to the Fund an amount to eight and fifty one-
hundredths percent (8.50%) of the Earnings of members. Sec. 2-203 shall
not limit the right of the City Council, through its budget appropriation, to
contribute an additional amount over and above the members' contributions,
in accordance with article 6243k, Revised Civil Statutes of Texas, as
amended.
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Sec. 2-205 CREDITED SERVICE.
A. Service Breaks.
Pension credits shall be granted for all Credited Service for which an
Employee Member of the Fund receives employment compensation
from the City, subject to the following regulations pertaining to service
breaks:
1. Authorized service breaks of ninety (90) or less consecutive
calendar days without pay shall not be deducted from Credited
Service.
2. Except as provided below, periods of absence in excess of
ninety (90) consecutive calendar days without pay shall be
deducted from Credited Service, and no contributions shall be
made by members or by the City during such periods.
3. An absence of any period shall be permitted without loss of
pnor service credits, unless the member receives a distribution
of his total contributions, plus Regular Interest; any period of
absence shall cancel all prior service if the member receives
a distribution of his total contributions, plus Regular Interest;
however, if a member is absent, he may regain his prior service
credits by repaying the total amount of all contributions
withdrawn, plus Regular Interest thereon (at the Regular
Interest rate in effect on the date of repayment) from the date
of withdrawal to the date of repayment.
4. A member who is drafted, called to active duty or volunteers
in times of national emergency for the Armed Forces of the
United States shall be granted service credit for such absence
for a period not to exceed four (4) years, provided such
member resumes employment with the City within one hundred
and twenty (120) consecutive calendar days after first becoming
eligible for release to inactive duty or discharge, and provided
further that any such member shall not have withdrawn his
contributions to the Fund.
B. Accumulated Sick Leave and Major Medical Leave.
At retirement, a member shall have added to his Credited Service, as
defined herein and subject to the provisions of Sec. 2-205.A, above,
any hours or accumulated sick leave and/or unused major medical
leave, as recorded in the official personnel records of the City, for
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which that employee has not received compensation. For Credited
Service puiposes, such accumulated sick leave hours and/or unused
major medical leave for which a member has not received
compensation shall be converted into months using the following
formula: total number of hours accumulated uncompensated sick
leave and/or unused major medical leave divided by the member's
total scheduled hours of work for the year and multiplied by 12. The
resulting product represents the number of months in whole numbers
and/or a decimal fraction of a month; any whole number shall
constitute that number of months to be added to Credited Service.
If the resulting product contains a decimal value that is less than O.SO,
then no addition to Credited Service shall be made with respect to
such decimal value. The addition of such accumulated sick leave
and/or unused major medical leave to Credited Service shall not be
applied toward determination of retirement eligibility, but only toward
calculation of retirement benefits.
Sec. 2-206. NORMAL RETIREMENT DATE.
A member shall be eligible for retirement on his Normal Retirement Date
which shall be the last day of the month in which the earliest of the
following occurs:
A. the member's years of age and years of Credited Service total eighty
(80); or
B. the later of (i) the date on which the member reaches age sixty-five
{65) or (ii) the fifth (Sth) anniversary of the date he became a
member of the Fund.
Sec. 2-207. COMPENSATION BASE FOR DETERMINING BENEFITS.
Pension, death, disability and vested termination benefits shall be based upon
the member's Compensation Base which shall mean the average Earnings
which were paid to the member by the City far employment with the City
during any five (S) calendar years in which he had the highest Earnings.
Sec. 2-208. RETIREMENT PENSION
A. Pension Commencing Upon Retirement.
A vested member who retires after his Retirement Date and requests
commencement of his pension shall receive an annual life pension, the
amount of which shall be two and fifty one-hundredths percent
(2.50%) of his Compensation Base multiplied by his total years of
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Credited Service to date of actual retirement, payable on the first day
of each mo~ith commencing with the month following the last month
for which such member receives compensation from the City.
For a retired member who was receiving pension benefits prior to
January 1, 1991, Base Pension shall mean the pension benefits the
member was receiving immediately prior to such date. For a member
whose pension benefits commence January 1, 1991 or thereafter,
Base Pension shall mean the pension benefits the member receives
upon commencement of such benefits.
B. Cost of Living Adjustment.
Annually, effective January 1, 1991, and on the first day of each
January thereafter, acost-of-living adjustment shall be made on all
Base Pensions of all members of the Fund who have retired (including
disability retirement), or to their survivors, by adjusting the amount
of the Base Pension up or down by the amount of the change in the
Price Index over the previous year, or by two percent (2%), whichever
is smaller; provided that in no event shall any retired member's
pension or any survivor's benefits be reduced below the Base Pension.
To be eligible for acost-of-living adjustment for a particular year,
either the member or any survivor must have been receiving benefits
by September 30 of the prior year.
C. Maximum Benefits.
1. Limitation of Annual Benefits.
Notwithstanding any other provisions of this Ordinance, the
maximum annual benefit payable in any calendar year to a
member of the Fund shall not exceed the lesser of:
a. $90,000; or
b. one hundred percent (100%) of a member's 415
compensation averaged over the three consecutive
calendar years, or the actual number of calendar years
for a member whose total pension service is less than
three consecutive calendar years, during which the
member had the greatest aggregate 415 compensation
from the City
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2. Reduction to be made first .from benefit paid by other In ans.
Benefits provided to a member under the Fund and under any
other defined benefit plan or plans maintained by the City shall
be aggregated for purposes of determining whether the
limitations in Sec. 2-208.C.1 are met. If the aggregate benefits
payable from the Fund and any other defined benefit plan or
plans maintained by the City would otherwise exceed those
limitations, the reductions in benefits shall be made to the
extent possible from the other plan or plans.
3 Adjustments Upon Retirement.
a. If the annual benefit begins before a member attains age
sixty-two (62), the $90,000 limitation, as adjusted, shall
be reduced in a manner prescribed by the Secretary of
the Treasury However; such adjustment shall not
reduce the member's annual benefit below $75,000, if
such member's benefit begins after fifty-five (55), or the
actuarial equivalent of such $75,000 commencing at age
fifty-five (55) if benefits commence before age fifty-five
(55). Furthermore, no such adjustment shall reduce the
annual benefit of a qualified police or firefighter below
$50,000, regardless of the age at which the benefit
commences. For purposes of this subparagraph, a
"qualified police or firefighter" shall mean a member
who retired with at least fifteen (15) years of credited
service as a full-time employee of the police or fire
department (or both) including any credit for full time
service in the Armed Forces of the United States.
b. If the annual benefit begins after a member attains age
sixty-five (65), the $90,000 limitation, as adjusted, shall
be increased so that it is the actuarial equivalent of the
$90,000 limitation at age sixty-five (65).
c. ~ The portion of a member's benefit that is attributable
to such member's own contributions is not part of the
annual benefit subject to the limitations of Sec. 208.C.1.
above. Instead, the amount of such contributions is
treated as an annual addition to a qualified defined
contribution plan maintained by the City
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4 Annual Adjustment to Limitations.
a. The $90,000 dollar limitation on annual benefits provided
in Sec. 2-208.C.1 and the $50,000 limitation provided in
Sec. 2-208.C.3 (but not the $75,000 limitation provided
in Sec. 2-208C.3.), shall be adjusted annually as provided
in section 415(d) of the Code pursuant to the regulations
prescribed by the Secretary of the Treasury The
adjusted limitation is effective as of January 1 of each
calendar year.
b. The one hundred percent (100%) limitation provided in
Sec. 2-208.C.1 for a member who has separated from
service with a vested right to a pension shall be adjusted
annually as provided in section 415(d) of the Code
pursuant to the regulations prescribed by the Secretary
of the Treasury.
5 Interest Rate Assumptions.
a. For the purpose of adjusting the annual benefit to a
straight life annuity, the interest rate assumption shall
be five percent (5%) unless a different rate is required
by the Secretary of the Treasury.
b. For the purpose of adjusting the $90,000 limitation after
a member attains age sixty-five (65), the interest rate
assumption shall be five percent (S%) unless a different
rate is required by the Secretary of the Treasury, and
no adjustment for mortality shall be made to the extent
that a forfeiture does not occur at death.
6. No Adjustment in Certain Cases.
a. For purposes of Sec. 2-208.C.4, no adjustment under
section 415(d) of the Code shall be taken into account
before the calendar year for which such adjustment first
takes effect.
b. For purposes of Sec. 2-208.C.1. and 4., no adjustment
is required for the value of qualified joint and survivor
annuity benefits, pre-retirement disability benefits,
pre-retirement death benefits, post-retirement medical
benefits or post-retirement cost-of-living increases made
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in accordance with section 415(d) of the Code and
Sec. 1.415-3(c) of the Income Tax Regulations.
7 Total Annual Benefits not in excess of $10.000.
g
a. The Fund shall pay an annual benefit to any member
in excess of the member's maximum annual benefit
otherwise allowed under Sec. 2-208.C.1 and 4 if:
(i) the annual benefit derived from the City's
contributions to the Fund and all other defined
benefit plans maintained by the City does not in
the aggregate exceed $10,000 for the calendar
year or for any prior calendar year; and
(ii) the City has not at any time maintained a defined
contribution plan in which the member
participated.
b. For purposes of this paragraph only, member
contributions to the Fund will not be considered a
separate defined contribution plan maintained by the
City
8. Less than ten (lOl years of Membership or Service.
a. If a member has less than ten (10) years of total
pension service in the Fund at the time the member
begins to receive benefits under the Fund, the $90,000
limitation, as adjusted, shall be reduced by multiplying
the limitation by a fraction in which the numerator is
the number of years of total pension service and the
denominator is 10; provided, however, that the fraction
shall in no event be less than one-tenth (i/10th).
b. If a member has less than ten (10) years of employment
with the City, the one hundred percent (100%) limitation
of Sec. 2-208.C.1. and the $10,000 limitation of
Sec. 2-208.C.7. shall be reduced in the same manner as
provided in subparagraph a., above, except the
numerator shall be the number of years of employment
with the City rather than years of total pension service.
c. To the extent provided in regulations prescribed by the
Secretary of the Treasury, the reductions described in
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this paragraph shall be applied separately with respect
to each change in the benefit structure of the Fund.
9 Participation in Both Defined Benefit and Defined Contribution
Plans..
If a member is or has been a participant in one or more
defined benefit plans and one or more defined contribution
plans maintained by the City, the following provisions shall
apply:
a. the sum of the defined benefit plan fraction and the
defined contribution °plan fraction for any calendar year
may not exceed 1.0.
b. the defined benefit plan fraction for any calendar year
is a fraction in which:
1. the numerator is the projected annual benefit of
a member, determined as of the close of the
calendar year pursuant to Sec. 1.415-7(b)(3) of
the Income Tax Regulations, and
2. The denominator is the lesser of:
(i) the product of 1.25 multiplied by the
maximum dollar limitation in effect under
section 415(b)(1}(A) of the Code, as
adjusted, for the calendar year; or
(ii) the product of 1.4 multiplied by the
amount that may be taken into account
under section 415(b)(1)(B) of the Code for
the calendar year.
c. The defined contribution plan fraction for any calendar
year is a fraction in which:
1. the numerator is the sum of the annual additions
to the member's account as of the close of the
calendar year; and
2. the denominator is the sum of the lesser of the
following amounts determined for the calendar
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year and each prior calendar year in which the
member had service with the City:
(i) the product of 1.25 multiplied by the dollar
limitation in effect under section
415(c)(1)(A) of the Code for the calendar
year, determined without regard to section
• 415(c)(6) of the Code; or
(ii) the product of 1.4 multiplied by the
amount that may be taken into account
under section 415(c)(1)(B) of the Code for
the calendar year For any calendar year
beginning before January 1, 1987, the
annual additions shall not be recomputed
to treat all member contributions as an
annual addition.
d. If the sum of the defined benefit plan fraction and the
defined contribution plan fraction exceeds 1.0 in any
calendar year for any member of the Fund, the
administrator shall limit, to the extent necessary, the
annual additions to the member's account for that
calendar year. If after limiting to the extent possible the
annual additions to the member's account for the
calendar year, the sum of the defined benefit plan
fraction and the defined contribution plan fraction still
exceeds 1.0, the administrator shall adjust the benefits
under the defined benefit plan fraction so that the sum
of both fractions shall not. exceed 1.0 in any calendar
year for the member.
10. Combining of Plans.
For purposes of determining the limits provided in
Sec.2-208.C., all qualified defined benefit plans ever
maintained by the City, whether terminated or not, shall be
treated as one defined benefit plan, and all qualified defined
contribution plans ever maintained by the City, whether
terminated or not, shall be treated as one defined contribution
plan.
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11. Internal Revenue Code A~ lication.
Notwithstanding anything contained in Sec. 2-208.C., to the
contrary, the limitations, adjustments, and other requirements
prescribed in Sec. 2-208.C. shall at all times comply with the
requirements of section 415 of the Code, as amended, and all
regulations promulgated under the Code, the terms of which
are specifically .incorporated into Sec.. 2-208.C. by reference.
12. No Increase in Benefits.
Sec. 2-208.C. shall not be construed to provide a greater
benefit to any member than the benefit computed under
Sec. 2-208.A. Furthermore, Sec. 2-208.C. shall remain in effect
only to the extent necessary to satisfy the requirements of
section 415 of the Code or its successor Thus, if section 415
of the Code is repealed or made inapplicable to governmental
plans, Sec. 2-208.C. shall be void.
D Commencement of Benefits.
Notwithstanding any other provision in this Ordinance, monthly benefit
payments to a member shall commence no later than April 1 of the
year after .the year in which the member attains age 70-1/2, or, if
later, April 1 of the year after the year in which the member retires.
Monthly benefit payments to any eligible dependent of a deceased
member or deceased retired member shall commence no later than
one (1) year after the death of such member or retired member
Sec. 2-209 DISABILITY PENSIONS.
A. Definition of Disability and Procedure.
A member is disabled (or continues to be disabled) if, because of
bodily injury, disease or mental illness, the member is completely
incapacitated for life, in spite of reasonable accommodations by the
City, from performing the essential functions of (i) the particular
trade, profession or occupation in which the member was employed
by the City when the member suffered the bodily injury, disease, or
mental illness or (ii) any other vacant City position paying at least
75% of the pay received when the member suffered the bodily injury,
disease, or mental illness; provided, however, that no physical
condition existing at the time of entry into the Fund shall be a basis
for disability retirement prior to Vesting.
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Before applying to the Board for a disability pension, a member shall
apply to the City for any vacant position paying at least ?5% of the
pay received when the member suffered the bodily injury, disease, or
mental illness. If the City determines that the member (i) is not
qualified to perform the essential functions of any such vacant position
or (ii) is unable, because of such bodily injury, disease, or mental
illness, m spite of reasonable accommodations by the City, to perform
the essential functions of any such position, the City shall so certify
in writing to the Board. If the Board determines on the basis of
medical advice that such bodily injury, disease, or mental illness exists,
it shall grant a disability pension; if the Board determines on the basis
of medical advice that such bodily injury, disease, or mental illness
does not exist, it shall deny a disability pension. If the City
determines that the member (i) is qualified to perform the essential
functions of any such vacant position and (ii) is able, with or without
reasonable accommodations by the City, to perform the essential
functions of such vacant position, the City shall offer the position to
the member If the member accepts such position, the Board shall
deny a disability pension. If the member claims to be unable, despite
reasonable accommodations by the City, because of such bodily injury,
disease, or mental illness, to perform the essential functions of the
offered position, the Board shall determine on the basis of medical
advice the validity of such claim. If the Board agrees with the City,
it shall deny a disability pension, if the Board agrees with the
member, it shall grant a disability pension. Any grant of a disability
pension shall be subject to all other provisions of this Sec. 2-209
Continuation of a disability pension, whether granted before or after
the enactment of this Ordinance, shall be subject to all the provisions
of this Sec. 2-209.
B. General Provisions.
1. Such disability must exist for at least ninety (90) consecutive
days;
2. Such disability was not contracted, suffered or incurred while
the member was engaged in, or did not result from his having
engaged in, a criminal enterprise, or from his habitual
drunkenness or addiction to narcotics, or from self-inflicted
injury, or from voluntary or involuntary service in the Armed
Forces of the United States (including the United States
Merchant Marine), any of its allies or any other foreign
country; and
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3 Notwithstanding the provisions of subsection D and E, no
disability pension shall, at the time of commencement, exceed
the member's rate of Earnings.
C. Qualification for Disability Pension.
1. A member shall not qualify for a disability pension as
hereinafter provided unless he has been certified to be
disabled, in accordance with the definition in subsection (A)
of this section, by one or more duly licensed and practicing
physician(s) appointed by the Executive Director.
Determination of the existence of disability shall not be made
until ninety (90) days after the date such disability is alleged
to have commenced, and benefits shall not commence before
the first day of the month following the month in which such
ninety (90) day period ends.
2. The Executive ,Director shall have the appointed physician(s)
conduct an annual medical examination after a disability
pension has been granted (unless deemed not necessary by the
Executive Director due to the retiree's condition) and at any
other time deemed necessary by the Board when (i) a change
in the retiree's condition or (ii) an available position is brought
to the Board's attention, in order to determine whether the
disability is continuing. To continue to receive a disability
pension, the retiree must submit to any medical examination
required by the Executive Director or Board.
3 If at any time the Board is in reasonable doubt as to whether
the member is disabled as above defined, it shall suspend the
disability pension until the doubt is resolved, which shall occur
within a reasonable time. Any disability pension shall be
terminated upon the Board's determination that the member
is not disabled as above defined.
4. No disability pension coverage shall be provided during a
service break in excess of ninety (90) consecutive days unless
the service break was caused by sickness or accident leading
to total disability.
5 The disability pension specified herein shall not be payable
during any period for which regular pay or a portion thereof
is continued by the City, the State of Texas or any other
division of government in accordance with the then existing
Civil Service Statutes.
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6. Falsification or omission on any part of the employment
application of prior conditions or injuries for which a disability
pension is or has been sought, falsification or omission on any
part of the disability pension application, or falsification or
omission in connection with the continuation of a disability
pension shall constitute grounds for denial of a disability
pension or for revocation of any disability pension granted.
7 The Board's determination on all matters concerning the
granting, refusing or revoking of a disability pension shall be
final and conclusive on all parties, and no appeal can be made
therefrom. A member is entitled to a reasonable hearing (at
which the member may appear in person, with or by a
representative, or in writing) before the Board makes its
determination.
D Disability in Line of DutX
If a member becomes disabled as above defined while in the line of
duty, he shall receive an annual life pension, the amount of which
shall be two and fifty one-hundredths percent (2.50%) of his
Compensation Base multiplied by his total Credited Service which
would have accrued if the member had worked to his Normal
Retirement Date, but not less than Two Hundred Fifty Dollars
($250.00) per month. ~ As used in this subsection D and subsection E
below, "line of duty" means in the course of the operations usual to
a member's employment, including all operations necessary, incident,
or appurtenant thereto or connected therewith, whether such
operations are conducted at the usual place of employment or
elsewhere.
E. Disability Not in Line of Duty
If a member who is vested becomes disabled as above defined while
not in line of duty, he shall receive an annual life pension, the amount
of which shall be two and fifty one-hundredths percent (2.50%) of his
Compensation Base multiplied by his total credited service to date.
If a member becomes disabled not in the line of duty before the
member is vested, then Sec. 2-211 shall apply
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F Recovery from Disability
If a disabled member receiving disability benefits hereunder is found
to be no longer disabled as above defined, the employee's disability
payment shall immediately cease.
If such member is re-employed by the City immediately following
certification of recovery, his Fund membership shall be reinstated as
of the date of such re-employment, with full Credited Service to date
of disability He shall receive no pension service credits for the
period of disability, but such period shall be counted in determining
all requirements for length of Credited Service. If such member is
not re-employed by the City immediately following certification of
recovery, he shall be considered as a terminated Fund member and
shall have no further interest in the Fund other than a refund of any
excess of his total contributions, plus Regular Interest (at the Regular
Interest rate in effect on the date of any refund), over the total of
disability payments made to him; provided, however, that if such
member had a vested interest in his pension credits as of the date of
which he was certified disabled, he shall receive a pension from the
later of the date of certification of recovery or attainment of the
earliest retirement age under the Ordinance equal to the amount
which would have been payable under the provisions of Sec. 2-211
had he terminated. his employment on the date his disability pension
began. His death benefits thereafter shall be determined in
accordance with Sec. 2-210.
G Report of Earned Income or Net Earnings from Self-Emplovment.
Any disabled member who is not eligible to retire according to
Sec. 2-206 and who is receiving disability benefits shall submit to the
Executive Director prior to October 1 of the first year following
disability retirement and annually thereafter, a copy of his income tax
return filed for the preceding year, with all attachments thereto, as
proof of his Earned Income and Net Earnings from Self-employment
for that year obtained from any occupation or employment. If the
total of Earned Income, Net Earnings from Self-employment, and City
disability retirement benefits (not including any cost of living
adjustment increase or increase in the formula under which the
pension is calculated) received by the member exceeds his annualized
base hourly rate of pay at the time disability status was granted by the
Board, then the Board shall reduce the amount of disability benefits
to be paid to the member in the upcoming calendar year by the
amount of such excess earnings. (Note that base hourly rate of pay
shall not include overtime, acting, assignment, holiday, longevity,
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educational incentive, safety award, incentive, shift differential or any
other special or premium pay) The Board shall terminate all
disability benefits upon the member's failure to submit the required
income tax returns with ail attachments thereto or submission of
falsified documents.
Sec. 2-210. DEATH BENEFITS.
A. While in Line of Duty
If a member dies before retirement while in line of duty and as a
result of the performance of that member's duties, the surviving widow
or widower shall be entitled to receive a monthly pension, the amount
of which shall be seventy-five percent (75%) of the member's pension,
based on the number of years of Credited Service that would have
accrued had the member lived to earliest retirement date, but not less
than Two Hundred Fifty Dollars ($250.00). Each dependent child of
such member under age eighteen (18) shall be entitled to receive a
monthly pension, the amount of which shall be Sixty-Five Dollars
($65.00), provided however, that if no surviving widow or widower
shall be entitled to receive a monthly pension pursuant to the terms
of this Ordinance, all such dependent children shall share equally a
monthly pension, the amount of which shall be seventy-five percent
(75%) of the member's pension, based on the number of years of
Credited Service that would have accrued had the member lived to
earliest retirement date, but not less than Two Hundred Fifty Dollars
($250.00). .
The combined maximum monthly pension available to a surviving
widow or widower and one or more children eligible to receive a
benefit hereunder shall be either Three Hundred Seventy-Five Dollars
($375.00) or the member's accrued pension projected to earliest
retirement date, whichever is greater If there are dependent children
who are entitled to receive Sixty-Five Dollars ($65.00) per month
hereunder and the total payments to the dependent children and
widow or widower would exceed the combined maximum monthly
pension payable, the pension of the widow or widower shall be
reduced so that the sum of the monthly payments shall not exceed the
combined maximum monthly pension payable. When a dependent
child receiving a benefit hereunder shall attain the age of eighteen
(18) years, die or marry, the Sixty-Five Dollars ($65.00) monthly
benefit thereafter shall be added to the pension of the widow or
widower, but in no event shall the monthly pension of the widow or
widower exceed either seventy-five percent (75%) of the member's
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accrued monthly pension projected to earliest retirement date or Two
Hundred Fifty Dollars ($250.00), whichever is greater
If a member who dies while in line of duty leaves no widow or
widower or children eligible to receive a benefit hereunder but is
survived by a dependent parent or parents, such dependent parents
or the surviving dependent parent shall be entitled to receive a
monthly pension, the amount of which shall be seventy-five percent
(75%) of the member's accrued pension projected to earliest
retirement date, but not less than Two Hundred Fifty Dollars
($250.00).
B. While Not in Line of Dutv
If a vested member dies before retirement, while not in the line of
duty, the surviving widow or widower shall be entitled to receive a
monthly pension, the amount of which shall be seventy-five percent
(75%) of the member's accrued pension but not less than One
Hundred Fifty Dollars ($150.00). If a member was not vested on the
date of his death, the surviving widow or widower shall be entitled to
the return of all contributions which the member paid into the Fund
during his life plus Regular Interest thereon (at the Regular Interest
rate in effect on the date of any payment to the widow or widower).
Each dependent child under eighteen (18) years of age of such vested
member shall be entitled to receive a monthly pension, the amount
of which shall be Sixty-Five Dollars ($65.00); provided, however, that
if no surviving widow or widower shall be entitled to receive a
monthly pension pursuant to the terms of this Ordinance, all such
dependent children shall share equally a monthly pension, the amount
of which shall be seventy-five percent (75%) of the member's accrued
pension, but not less than One Hundred Fifty Dollars ($150.00).
The combined maximum monthly pension payable to a surviving
widow or widower and one or more children eligible to receive a
benefit hereunder shall not exceed the greater of One Hundred Fifty
Dollars ($150.00) or the member's accrued pension.
If the combined maximum monthly pension payable is the member's
accrued pension and there are dependent children entitled to receive
Sixty-Five Dollars ($65.00) each, and the total of payments to the
dependent children and the widow or widower would exceed the
member's accrued pension, the pension of the widow or widower
shall be reduced so that the sum of the monthly payments shall not
exceed the member's accrued pension; provided that the pension of
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the widow or widower shall not be reduced to less than Ninety Dollars
($90.00) per month. If after the reduction of the pension of the
widow or widower as hereinabove provided, the sum of said pension
and the payments to eligible dependent children exceed the member's
accrued pension, the pension of the widow or widower shall be Ninety
Dollars ($90.00) .and the balance up to the amount of the member's
accrued pension shall be distributed in equal portions among the
eligible dependent children, up to the maximum of Sixty-Five Dollars
($65.00) per dependent child as herein provided.
When a dependent child receiving a benefit hereunder shall attain the
age of eighteen (18} years, die or marry, the monthly benefit to that
child shall be redistributed in equal portions among the remaining
eligible dependent children up to the maximum monthly payment of
Sixty-Five Dollars ($65.00) per dependent child. Any excess thereafter
shall be added to the pension of the widow or widower, provided that
in no event shall the monthly pension of the widow or widower
exceed seventy-five percent (75%) of the member's accrued pension.
If the maximum monthly pension payable is One Hundred Fifty
Dollars ($150.00), the pension of the widow or widower shall be
Ninety Dollars ($90.00) and the balance shall be divided equally
among the eligible dependent children. When the last eligible child
either attains the age of eighteen (18) years, dies or marries, said
balance shall be added to the pension of the widow or widower.
If a vested member who dies before retirement but not in the line of
duty leaves no widow or widower or children eligible to receive a
benefit hereunder, but is survived by a dependent parent or parents,
such dependent parents (or the surviving dependent parent) shall be
entitled to receive a monthly pension, the amount of which shall be
seventy-five percent (75%) of the member's accrued pension, but not
less than One Hundred Fifty Dollars ($150.00).
C. After Retirement.
Upon the death of a retired member, the surviving widow or widower
shall be entitled to receive a monthly pension, the amount of which
shall be seventy-five percent (75%) of the pension being paid to the
member, provided that the member and surviving widow or widower
had been married for at least one (1) year immediately prior to the
member's retirement.
Each dependent child under eighteen (18) years of age of such
deceased member shall be entitled to receive monthly pension, the
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amount of which shall be Sixty-Five Dollars ($65.00); provided,
however, that if no surviving widow or widower shall be entitled to
a monthly pension pursuant to the terms of the Ordinance, all such
dependent children shall share equally a monthly pension, the amount
of which shall be .seventy-five percent (7S%) of the pension being
paid to the member at the time of his death.
The combined maximum monthly pension payable to a surviving
widow or widower and one or more children eligible to receive a
benefit hereunder shall be an amount not to exceed the pension being
paid to the member at his death. If there are one or more
dependent children who are entitled to receive Sixty-Five Dollars
($65.00) each per month hereunder and the total payments to the
dependent children and widow or widower would. exceed the combined
maximum pension payable, the pension to the widow or widower shall
be reduced so that the sum of the monthly payments shall not exceed
the combined monthly pension payable.
If a deceased member leaves no widow or widower or children eligible
to receive a benefit hereunder but is survived by a dependent parent
or parents, such dependent parents (or the surviving dependent
parent) shall be entitled to receive a monthly pension, the amount of
which shall be seventy-five percent (7S%) of the pension being paid
to the member at his death.
When a dependent child receiving a benefit hereunder shall attain the
age of eighteen (18) years, die or marry, the monthly benefit to that
child shall be redistributed in equal portions among the remaining
eligible dependent children (if any) up to a maximum monthly
payment of Sixty-Five Dollars ($65.00) per dependent child. Any
excess thereafter shall be added to the pension of the widow, or
widower (if any), provided that in no event shall the monthly pension
of the widow or widower exceed seventy-five percent (7S%) of the
member's accrued pension.
D After Vested Termination.
If a terminated member entitled to a pension under the provisions of
Sec. 2-211 dies before the member's pension commences, the
member's estate shall receive an amount equal to the member's total
contributions to the Fund, plus Regular Interest , (at the Regular
Interest rate in effect on the date of such payment); provided,
however, that if the vested member's years of age and years of
Credited Service total at least sixty-five (6S) as of the date of the
member's termination, the member's eligible dependents shall receive
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the benefit specified under Sec. 2-210.B., based on the pension to
which the rriember would have been entitled as of the date of the
member's death, in lieu of the payment of contributions plus Regular
Interest to the member's estate.
If such terminated member dies after the member's pension
commences, the member's eligible dependents shall receive the benefit
specked under Sec. 2-210.B.
E. General Provisions.
If a deceased member leaves no widow, widower, children or
dependent parents eligible to receive a benefit hereunder, his total
contributions, plus Regular Interest (at the Regular Interest rate in
effect on the date of any such payment) less any amount previously
paid to him from the Fund, shall be paid to his estate.
Payments to a child shall be made whether or not a widow or
widower survives and shall continue .after the death of a widow or
widower, but shall cease upon the earliest of such child's death,
marriage or attainment of age eighteen (18). Payments to a parent
shall cease upon such parent's death. Payments to a widow or
widower shall continue after remarriage if the remarriage occurred
after March 24, 1988, but shall cease upon the death of the widow
or widower After all payments cease, any excess of the member's
total contributions, plus regular interest at date of death over disability
and/or death benefits paid shall be paid to his estate.
Except as provided in Sec. 2-210.D., death benefit coverage during
service breaks in excess of ninety (90) consecutive calendar days shall
be limited to members who are absent due to service-connected injury
incurred while in the line of duty
Benefits hereunder shall be payable on the first day of each month
commencing with the month following the one in which the member's
death occurs.
~'he Board shall determine all questions of dependency, and their
determination shall be final and conclusive on all parties.
All unmarried, legitimate and legally adopted children under the age
of eighteen (18) .years, in the absence of determination to the
contrary, shall be considered dependent.
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Sec. 2-211 TERMINATION BENEFITS AND VESTING.
A. Any member who is voluntarily or involuntarily separated from the
service of the City before he is vested shall be entitled to receive the
amount of his contributions plus Regular Interest (at the Regular
Interest rate in effect on the date of such payment) less any amount
previously paid to him from the Fund.
B. A member who resigns or is terminated after vesting shall be entitled
to receive one hundred percent (100%) of .the amount of pension
earned to date of termination, payable in full on the date when the
member would have been eligible for retirement under Sec. 2-206, or
payable in a reduced amount commencing at age fifty (50). The
amount of reduction for early commencement of pension shall be five-
twelfths percent (5/12%) for each month by which commencement of
the pension antedates the date when the member would have been
eligible to receive the full pension under the preceding sentence.
C. Any terminating member with a vested right may elect to receive a
refund of his contributions, plus Regular Interest (at the Regular
Interest rate in effect on the date of such payment) less any amount
previously paid to him from the Fund, in lieu of retirement benefits
either at date of termination or at any time thereafter prior to
commencement of retirement income, but by so doing, he shall forfeit
all rights under the Fund and thereafter be entitled to no further
benefits hereunder
Sec. 2-212. PAYMENT OF BENEFITS.
Where benefits are payable to a minor, an individual who has legally been
determined to lack capacity, or an individual whom the Board determines
to be unable to handle money, the Board shall make payments, without any
duty to see to the application thereof, to the guardian of such person's estate
or, if there is none such, as the Board determines to be in the best interest
of such person.
If a retired employee who is currently receiving pension benefits is re-
employed as a permanent, full-time employee by the City of Fart Worth,
that person's pension benefits shall cease upon the date of reemployment.
Credited service earned during the term of the second employment shall be
added to the credited service of the first employment and upon final
separation from the City, a new pension benefit shall be calculated.
If the distributes of an eligible rollover distribution (as defined in Code
section 401(f)(2)(a)) (i) elects to have such distribution paid directly to an
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eligible retirement plan and (ii) specifies in writing- (before the distribution
is made) the eligible retirement plan to which such distribution is to be
made, the distribution will be made in the form of a direct trustee-to-trustee
transfer to the eligible retirement plan so specified.
Sec. 2-213. ACCOUNTS TO BE MAINTAINED
The assets of the Retirement Fund shall consist of two (2) separate
unallocated accounts as follows:
1. An Active Reserve Account to include City and employee
contributions, plus earned income thereon. Contribution refunds to
terminated members shall be paid from this account upon the
Executive Director's authorization as provided in Sec. 2-215.
2. A Retirement Reserve Account to consist of annual transfers from the
Active Reserve Fund to provide retirement, death, disability and
vested termination benefits, such benefits being paid from this account
as authorized by the Executive Director in accordance with Sec. 2-215
Sec. 2-214. ANNUAL ACTUARIAL VALUATIONS.
The Board shall .appoint an actuary for the purpose of providing annual
valuations of the Retirement Fund. The Actuary .shall also serve as a
technical advisor to the Board and the Executive Director regarding the
operations authorized by this Ordinance. The actuarial assumptions and
tables used by the Actuary shall assume such costs, liabilities, rates of
interest, mortality, turnover and other factors as are reasonable, taking into
account the experience of the Fund and reasonable expectations, and shall
be subject to Board approval.
Sec.2-215 ADMINISTRATION.
A. Board of Trustees.
The Fund created by this Ordinance is a trust. This Fund shall be
administered by a Board to be known as the "Board of Trustees of
the Employees' Retirement Fund of the City of Fort Worth". The
Board shall consist of ten (10) trustees designated as Place. 1, Place
2, Place 3, Place 4, Place 5, Place 6, Place 7, Place 8, Place 9, and
Place 10, respectively. Each trustee shall serve for a term of two
(2) years. Trustees shall be selected as follows:
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1. Trustees Elected by Employees.
Five (S) trustees who are members of the Fund and residents
of the City of Fort Worth shall be elected by the employees
of the City who are also members of the Fund; said five (S)
trustees shall serve in Places 1, 3, S, 7, and 9, respectively
Each of the trustees shall be elected by one of the five (S))
employee groups of the City, as follows.
Place 1. The trustee for Place 1 shall be elected by
Employee Group A, which shall consist of
those members of the Fund who are
assigned to work in the Police Department
of the City Only members of the Fund
who qualify for Employee Group A shall
be eligible to vote for a nominee for Place
1. Only members of the Fund who qualify
for Employee Group A shall be eligible to
serve on Place 1 of the Board.
Place 3. The trustee for Place 3 shall be elected by
Employee Group B, which shall consist of
those members of the Fund who are
assigned to work in the Water and Sewer,
Library, and Aviation Departments of the
City.. Only members of the Fund who
qualify for Employee Group B shall be
eligible to vote for a nominee for Place 3.
Only members of the Fund who qualify for
Employee Group B shall be eligible to
serve on Place 3 of the Board.
Place S The trustee for Place S shall be elected by
Employee Group C, which .shall consist of
those members of the Fund who are
assigned to work in the Municipal Court,
Fire, Information System and Services, and
Housing and Human Services Departments
of the City Only members of the Fund
who qualify for Employee Group C shall
be eligible to vote for a nominee for Place
S Only members of the Fund who qualify
for Employee Group C shall be eligible to
serve on Place S of the Board.
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Place 7 The trustee for Place 7 shall be elected by
Employee Group D, which shall consist of
those member's of the Fund who are
assigned to work in the City Services and
the Transportation and Public Works
Departments of the City. Only members
of the Fund who qualify for Employee
Group D shall be eligible to vote for a
nominee for Place 7 Only members of
the Fund who qualify for Employee Group
D shall be eligible to serve on Place 7 of
the Board.
Place 9 The trustee for Place 9 shall be elected by
Employee Group E, which shall consist of
those members of the Fund who are
assigned to work in all other departments
of the City not specified in Employee
Groups A, B, C, and D Only members
of the Fund who .qualify for Employee
Group E shall be eligible to vote for a
nominee for Place 9. Only members of
the Fund who qualify for Employee Group
E shall be eligible to serve on Place 9 of
the Board.
a. Term.
In accordance with the nomination and election
procedures prescribed herein, trustees shall be elected
to Places 1, 3, 5, 7, and 9, and shall serve for a two (2)
year term. Trustees shall be elected every odd
numbered year and shall serve from October 1 of such
odd numbered year through September 30 of the next
odd numbered year. Should the residency or
employment status of any elected trustee change so that
said trustee is no longer a resident of the City of Fort
Worth or a member of the employee group from which
the trustee was elected, then said trustee shall
automatically forfeit the office of trustee. Should a
vacancy occur, for whatever reason, in Place 1, 3, 5, 7,
or 9 during the term thereof, then a majority of all
trustees remaining on said Board shall appoint to the
Board a qualified employee from the employee group
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a
whose place has been vacated, which qualified employee
shall serve the remainder of the unexpired term.
b. Method of Nominating Employee Members for Election.
Nominations of employee members for election to the
Board of Trustees shall be by petition only. Before
July 1 .of each odd numbered year, the .Executive
Director shall make available to employees of each
employee group eligible to vote in the scheduled
election, official petition forms with written instructions.
Petitions containing the names of nominees shall be
returned to the Executive Director prior to July 15 of
said election year. Each returned petition shall identify
the employee group of which the nominee is a member
and designate for which place on the Board of Trustees
the employee is being nominated. No person's name
shall be placed upon the official ballot as a nominee
unless that person is nominated by petition. Said
nominating petition must contain the signature and
employee number of at least one hundred (100)
members of the employee group who are qualified to
vote for said place on the date .said petition is submitted
to the Executive Director. Only those employees who
are members of the Fund shall be entitled to be listed
upon the official ballot as a nominee. No person's name
shall be placed upon the official ballot as a nominee for
Place 1 unless that person is a member of Employee
group A. No person's name shall be placed upon the
official ballot as a nominee for Place 3 unless that
person is a member of Employee Group B. No person's
name shall be placed upon the official ballot as a
nominee for Place 5 unless that person is a member of
Employee Group C. No person's name shall be placed
upon the official ballot as a nominee for Place 7 unless
that person is a member of Employee Group D. No
person's name shall be placed upon the official ballot
as a nominee for Place 9 unless that person is a member
of Employee Group E.
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c. Method of Electing Employee Trustees.
The Executive Director shall prepare an official ballot
for each place, listing in alphabetical order according to
surname .the nominees for election to that place. If,
however, there. is only one nominee for any Place,. there
shall be no election for that Place; and such nominee
shall automatically be elected to the Board of Trustees.
Only the names of those .persons who are nominated by
petition as prescribed herein shall be placed upon the
official ballot. No person shall be elected as a trustee
whose name does not appear upon the official ballot as
a nominee. Ballots shall be made available to the Fund
members no later than the first payday in August in such
manner as to allow each member an opportunity to vote
by secret ballot. Each employee qualified to vote in said
election shall vote for one nominee only Any ballot
containing votes of two or more persons, or for persons
who are not nominees as prescribed herein, shall be
declared invalid, and shall not be counted. All ballots
must be returned to the Executive Director no later than
ten (10) days after the first payday in August, at which
time the Executive Director shall tabulate all votes for
all nominees. The nominee for each place who receives
a majority of the votes cast for that place shall be
declared elected to the Board of Trustees. Following
the tabulation of votes, the Executive Director shall
submit the result of same to the Board of Trustees at
a meeting to be held before September 1 of said
election year, at which time the Board shall canvass the
results of said election and certify which nominees are
elected to the Board of Trustees. If at the time of
canvassing said results, the nominee receiving the
majority of votes for said place is no longer eligible to
serve on the place to which that nominee was elected,
then a majority of all trustees on said Board shall
appoint to the Board a qualified employee from the
employee group whose place has been vacated, which
qualified employee shall serve from October 1 of such
odd-numbered year through September 30 of the next
odd numbered year.
If there is more than one nominee and no nominee
receives a majority of the votes cast for any one place,
or if there is a tie for any one place, then arun-off
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election shall be held on the first payday in September,
at which time ballots shall be made available to the
Fund members qualified to vote for that place in the
same manner as prescribed for the first election. Only
the names of candidates who tied for the highest number
of votes cast for that place in the first election, or the
two candidates who received the highest number of votes
with neither having a majority of votes cast for that
place, shall be printed on the ballot for the run-off
election. All ballots for the second election must be
returned to the Executive Director no later than ten (10)
days after the first payday in September, at which time
the Executive Director shall tabulate the votes for the
candidates in the run-off election. The candidate
receiving the highest number of votes cast for that place
in the run-off election shall be declared elected to the
Board of Trustees.
In the event of a tie vote at the second election, the
candidates who tie shall cast lots in the presence of the
Executive Director to determine which one shall be
declared elected. Following the tabulation of votes in
the run-off election, and the casting of lots in case of
ties, the Executive Director shall submit the results of
same to the Board of Trustees at a meeting to be held
before October 1 of said election year, at which time the
Board shall canvass the results of the run-off election
and certify which nominees are elected to the Board of
Trustees. If at the time of canvassing the results of the
run-off election, the nominee elected to serve on said
Board is no longer eligible to serve on the Place to
which he or she was elected, then a majority of the
Trustees remaining on said Board shall appoint to the
Board a qualified employee from the employee group
whose place has been vacated, which qualified employee
shall serve from October 1, of such odd-numbered year
through September 30 of the next odd-number year
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2. Trustee Elected b~ Retired .Members.
Only retired members of the Fund shall be eligible to vote for
a nominee for Place 8. Only retired members of the Fund
shall be eligible to serve on Place 8 of the Board.
The retired Board member holding office when this ordinance
is enacted shall cantmue as such until a successor retired Board
member is elected. Effective October 1, 1992, the retired
Board Member will be elected. The first nomination and
election will be held under such terms as the Board prescribes,
adhering as closely as practicable to the procedures set forth
below for later terms.
a. Term.
In accordance with the nomination and election
procedures prescribed in this section, a Trustee shall be
elected to Place 8 and serve for atwo-year term. The
Trustee shall be elected every even numbered year and
shall serve from October 1 of such even numbered year
through September 30 of the next even numbered year.
Should the Trustee return to City employment and again
become an Employee Member of the Fund, the Trustee
shall automatically forfeit the office of Trustee. Should
a vacancy occur in Place 8, during the term thereof, then
a majority of all Trustees remaining on the Board shall
appoint to the Board a Retired Member to serve the
remainder of the unexpired term.
b. Nomination of Retired Member for Election.
Nomination of the Retired Member for election to the
Board shall be by Letter of Nomination only Before
May 1 of each even numbered year, the Executive
Director shall make available to Retired Members
official Letter of Nomination forms with written
instructions. Completed Letters of Nomination shall be
returned to the Executive Director prior to July 1 of the
election year. Each returned Letter of Nomination shall
identify the Retired Member being nominated and must
contain the signature and Retired Employee Account
Number of the Retired Member making the nomination.
Any Retired Member receiving at least twenty-five (25)
Letters of Nomination shall be considered a nominee for
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election to Place 8 on the Board. No person shall be
placed on the ballot as a nominee unless the person is
a Retired Member who is nominated by Letter of
Nomination. Only Retired Members may complete
Letters of Nomination.
c. Election of Retired Board Member
Ballots for election of the retired Board Member listing
the nominees in alphabetical order by surname shall be
mailed to all Retired Members no later than August 1
of each even numbered year Only the names of those
persons who are nominated by Letters of Nomination
shall be placed on the official ballot. No person shall
be elected as Trustee whose name does not appear on
the official ballot as a nominee. To be considered valid,
a cast ballot must be returned to the Executive Director
by mail and postmarked no later than September 1 of
the election year Each Retired Member qualified to
vote in the election shall vote for one nominee only.
Any ballot containing votes for two or more persons, or
for persons who are not nominees as provided herein,
shall be declared invalid and shall not be counted. The
Executive Director shall tabulate .all votes for all
nominees. The nominee receiving the highest number
of votes cast shall be declared elected to the Board.
Following the tabulation of votes, the Executive Director
shall submit the results of same to the Board of Trustees
meeting to be held before September 30 of the election
year, at which time the Board shall canvass the results
of the election and certify which nominee is elected to
the Board of Trustees. If at the time of canvassing the
results, the nominee receiving the highest number of
votes for the place is no longer eligible to serve on the
place to which the nominee was elected, then a majority
of the Trustees remaining on the Board shall appoint
a Retired Member who shall serve from October first
of such even-numbered year through September thirtieth
of the next even-numbered year. In case of a tie vote,
selection shall be by lot in the presence of the Board
of Trustees. At a meeting to be held no later than
September 30 of the election year, the Board of
Trustees shall canvass the returns, cast lots (if
necessary), certify the results and announce the official
results of the election.
-35-
3 Board Members appointed by the City -Council.
Four (4) Board Members who are residents of the City of Fort
Worth and may be members of the City Council shall be
appointed by the City Council to serve in Places 2, 4, 6, and
10. The term of appointees for Places 2, 4, 6, and 10 shall be
for two (2) years (unless sooner removed by a majority of the
City Council) commencing on October 1 of every even
numbered year. Should any appointed member cease to be a
resident of the City of Fort Worth or should a vacancy occur
in Place 2, 4, 6, or 10 during the term thereof for any other
reason, then a majority of the City Council shall appoint a
qualified person to serve the remainder of the unexpired term.
4 Transitional Rules.
a. Individuals elected or appointed to serve as members
of the Board of Trustees of the Employees' Retirement
Fund of the City of Fort Worth before enactment of this
Ordinance shall continue in .their offices (regardless of
their residency as of the date of the adoption of this
Ordinance) until the election or appointment of Trustees
of the Board as created by this Ordinance.
B. General Provisions.
1. The members of the Board shall remain in office until their
successors are duly elected or appointed.
2. At its October meeting, the Board shall elect from its
membership a Chair and a Vice Chair to serve for one (1)
year
3. The Board shall serve without remuneration and shall meet not
less than once a month and may meet at any time that the
business of the Fund shall require it. The Chair shall have the
power to call a meeting at any time necessary to carry out the
business of the Fund.
4. Six (6) members of the Board shall constitute a quorum to
transact any business unless there are vacancies, in which event
the quorum shall be reduced by the number of vacancies
existing. Every matter before the Board for vote shall require
for final passage the affirmative vote of a majority of the
-36-
Trustees remaining on the Board. The Chair shall only vote
when there is a tie vote or when the Chair's vote is needed to
obtain a majority of all Board members. If the Vice Chair is
acting as Chair, the Vice Chair shall only vote when there is
a tie vote or when his vote is needed to obtain a majority of
all Board members.
5 The Board shall have the power and duty to administer the
Fund and to make and establish any and all rules, regulations
and procedures pertaining to the Fund not inconsistent with
this Ordinance, the Constitution and laws of the State of Texas
or local civil service regulations.
6. The Board shall be the trustee of the Fund and shall have the
power to acquire, invest, reinvest, exchange, retain, sell,
supervise and manage the assets of the Fund. The Board
shall discharge its duties solely in the interest of the members
and beneficiaries: (a} for the exclusive purpose of: (i)
providing benefits to members and their beneficiaries; and (ii)
defraying any reasonable expenses of administering the system;
(b) with the care, skill, prudence, and diligence under the
prevailing circumstances that a prudent person acting in a like
capacity and familiar with matters of the type would use in the
conduct of an enterprise with a like character and like aims;
(c) by diversifying the investments of the Fund to minimize the
risk of large losses, unless under the circumstances it is clearly
prudent not to do so; and (d) in accordance with the
documents and instruments governing the Fund to the extent
that the documents and instruments are consistent with this
Ordinance, the Constitution, and the laws of the State of Texas
or local civil service regulations.
Within the limitations of the foregoing standard, the Board is
authorized to acquire and retain every kind of property, real,
personal or mixed, and every kind of investment, specifically
including but not by way of limitation, bonds, debentures and
other corporate obligations, and stacks, preferred or common,
which trustees of ordinary prudence, discretion and intelligence
acquire or retain for trust accounts; provided, however, that
each investment manager employed by the Board shall not
purchase or hold within the Fund's investment portfolio under
its management at any time more than five percent (5%) of
the outstanding securities of any one corporation; and provided
further, that the Board is specifically prohibited from
-37-
purchasing bonds, warrants, obligations or securities of the City
of Fort Worth for the Fund.
7 The Board shall have the power, as it deems necessary and
appropriate to carry out the purposes of the Fund, to retain,
enter into contracts and pay from Fund assets for .professional
services, including, but not limited, to the following: actuaries,
accountants, attorneys, administrators, consultants, master
trustees and investment managers or advisors.
8. The Board shall have the power, as it deems necessary and
appropriate to carry out the business of the Fund, to enter into
contracts, agreements and arrangements to facilitate the
administration of the Fund, and to pay for the costs and
expenses of such business and administration out of Fund
assets.
9 The Board has discretion to make all determinations regarding
the eligibility of members or other persons for benefits from
the Fund and the amount and payee thereof, not inconsistent
with this Ordinance, the Constitution and laws of the State of
Texas or local civil. service regulations. Therefore, its decisions
shall be final, binding and conclusive on all persons.
10. In construing this Ordinance, the provisions of the Texas Trust
Code shall apply to the extent that they do not differ from this
Ordinance.
11. The City Attorney or his representative shall advise the Board
on any matter for which the Board requests a legal opinion or
seeks legal advice from the City Attorney The Board shall
have the power, as it deems necessary and appropriate to carry
out .the purposes of the Fund, to retain other attorney(s) to
represent the Board, to enter into contracts with such attorneys
and to pay them from Fund assets.
C. Executive Director and Other Em~lovees.
The Board shall appoint an Executive Director of the Fund, subject
to the approval of the City Council, who shall supervise the
administrative affairs of the Fund and carry out the business of the
Fund as directed by the Board. The Executive Director may appoint
such other employees as are necessary for the operation of the Fund.
The Executive Director and such other employees shall be City
employees (and governed by the City personnel rules and regulations,
-38-
except that the Board shall propose a salary range for the Executive
Director, subject to the approval of City Council), Fund members, and
eligible for employee benefits available to City employees.
D Budget, Expenses, and Repayment by City
1. Annually, the Executive Director shall propose a budget for the
Fund. The Fund's proposed budget shall be reviewed and
revised, if appropriate, by the Board and presented to the
City's budget office for review and comment. The City's
budget office may request the Board to reconsider any item in
the budget, but the Board shall make the final determination
on the budget for the Fund.
2. All administrative, business or other costs relating to the Fund
shall be paid or reimbursed by the Board from Fund income
or assets upon approval by the Board. If any such costs are
paid initially by the City, then the City shall be reimbursed by
the Fund for all appropriate expenses incurred, unless it is
actuarially determined that such reimbursement would have an
adverse effect on the payment of benefits to members and
beneficiaries.
3. ,In addition to the City's contributions made pursuant to
Sec. 2-204 and any payments described in paragraph (2) above,
the City shall also pay the amount of Seven Million One
Hundred Fifty-Two Thousand Four Hundred Five Dollars and
Ninety-Three Cents ($7,152,405.93) over a period of seven (7)
fiscal years, commencing with the fiscal year beginning on
October 1, 1992. Also commencing on October 1, 1992,
interest at the rate of eight percent (8%) per annum shall
accrue on the unpaid balance. Not less than twelve and one-
half percent (12-1/2%) of the principal amount, plus accrued
interest on the unpaid balance, shall be paid in any fiscal year
commencing after September 30, 1992, until such additional
amount has been paid. Nothing shall prevent the City from
prepaying said amount at any time with no further interest
obligation beyond the date of the prepayment.
-39-
Sec. 2-216. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS.
A. The City shall never be held liable or responsible for any claim or
asserted claim for benefits under the provisions of this article, but all
claims shall be paid from the Fund for which provision has been
specifically made in this Ordinance.
B. No portion of this Fund shall, at any time before or after its
disbursement, be held, seized, taken, subjected to or detained or
levied upon by virtue of any execution, attachment, garnishment,
assignment, injunction or other writ, order or decree, or any process
or proceedings whatsoever issued out of or by any court for the
payment or satisfaction, in whole or in part, of any debt, damage,
claim, demand or judgment against any person entitled to a benefit
from this Fund, nor shall the Fund, or any claim thereto, be directly
or indirectly, assigned or transferred, and any attempt to transfer or
assign same shall be void; provided that (1) nothing in this section
.shall prevent the deduction of the spouse's insurance premiums from
the Fund for the purpose of paying same, on behalf of the spouse,
to the health and life insurance carrier for the City only, and (2)
nothing shall prevent the Fund from dividing a member's pension
benefit between the member and a former spouse and/or children or
other dependents of the member according to the terms of a valid
court order from a court of competent jurisdiction as set forth in
Sec. 2-216.C.
C. The provisions of Chapter 804 of the Texas Government Code, as
amended, (i) are incorporated into this Ordinance by reference and
(ii) shall apply to domestic relations orders affecting a member. Any
amount payable to an alternate payee shall be paid in a lump sum
when the member first receives benefits or a return of contributions.
D Unless otherwise expressly provided for in this Ordinance, the Board
shall not reduce an individual pension.
E. No part of the corpus or income of the Fund shall ever revert to the
City or be used for, or diverted to, any purpose other than for the
exclusive purpose of providing benefits to members and their
beneficiaries in accordance with the terms of this Ordinance.
-40-
Sec. 2-217 AMENDMENT OF ORDINANCE.
The City Council, consistent with the Constitution, the laws of the State of
Texas, and the Charter of the City of Fort Worth, shall have the power and
authority to amend any or all of the terms and provisions of this article,
except where an amendment in the City's contribution rate would require the
issuance of tax-supported bonds approved at an election of .the qualified
voters of the City of Fort Worth.
Sec. 2-218. CONTROLLING POWER OF ORDINANCE.
The provisions of this Ordinance shall be cumulative of and in addition to
all other Ordinances of the City of Fort Worth relating to pensions, which
Ordinances are hereby preserved and continued in force and effect;
provided, however, that in the event of any conflict, the provisions of this
Ordinance shall control.
Sec. 2-219 PREREQUISITES TO ORDINANCE.
The City Council finds that all acts, conditions and things required by
provisions of the Constitution of Texas and Charter and Ordinances of the
City of Fort Worth precedent to and in the adoption of this Ordinance have
been done, have happened and have been performed in proper and lawful
time.
Sec. 2-220. LIMITATION OF LEGAL RIGHTS.
By reason of the benefits and coverage herein and the additional burdens
placed upon the City of Fort Worth and the Fund, it is expressly provided
that no member of the Fund shall have the right to sue the City with respect
to this Fund for disability sustained in line of duty, as heretofore defined;
and by virtue of membership in the Fund, the member accepts the benefits
provided by the Fund in lieu of any alleged right at law to sue the City or
this Fund for damages. No heir or legal representative of a member who
is injured in line of duty, which injury results in death, shall have the right
to sue the City for damages by reason thereof, but such heir or legal
representative shall accept the benefits provided under the employees'
retirement fund Ordinances of the City of Fort Worth in lieu of such right
to sue for damages in a court of competent jurisdiction.
-41-
SECTION II
VALIDITY OF ORDINANCE
If any provision, section, part, subsection, sentence, clause, phrase or paragraph of this
Ordinance be declared invalid or unconstitutional, the same shall not affect any other
portion or provision hereof, and all other provisions shall remain valid and unaffected by
any invalid portion, if any, and the City Council now says that if it had known at the time
of the passage of this Ordinance that any portion of said Ordinance was invalid, it would
not have adopted such invalid part.
SECTION III
ENGROSSMENT AND ENROLLMENT
The City Secretary of the City of Fort Worth is hereby directed to engross and enroll this
Ordinance by copying the caption and effective date of same in the minutes of the City
Council of the City of Fort Worth and by filing this Ordinance in the Ordinance records
of said City
SECTION IV
EFFECTIVE DATE
This Ordinance shall be in full force and effect from and after the date of its adoption
and it is so ordained.
-42-
ADOPTED this - i~~~i~~ay of , A.D. 19~.2.~
YO OF THE
CITY OF FORT WORTH, TEXAS
~~~~
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;ITY SECRETAR`>~~~~ THE
I'~Y OF FORT..•V~%ORTH, TEXAS
r,~E ~.~-
>, Po~ *.
APPROVED AS TO
FORM AND LEGALITY
~~~Zw~-
C~ITY ATTORNEY OF THE
CITY OF FORT WORTH, TEXAS
Date. °r ~~ _ 902
[C:\CrGS1B0A485~S8000\ORDINANCJ
-43-
7, r.
~nASCER FiC£ ] ~
.~~a~Nrl~:, F City of Fort worth, Texas
2P.N5F'Ud~fATWN~P~`°a oy, and Council C'~rmmunic '
+.. i OF AO MINISi R w y
lPa~ 1
FI RANG
07/14/92
G-9724
13RETIRE
loft
SUBJECT I RETIREMENT ORDINANCE AMENDMENT
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance amending the City
Retirement Ordinance.
DISCUSSION:
In January 1992, the City Manager's staff presented to the City Council proposed
amendments to the ordinance which establishes and governs the Employees' Retirement
Fund of the City of Fort Worth. Subsequent to this presentation, the Retirement Fund
Board of Trustees developed their own recommendations for amending the ordinance which,
in some instances, were in conflict with those developed by staff. 'Because of this,
a City Council Retirement Committee was formed to reconcile the differences in the two
proposals With the exception of a residency requirement for both elected employee and
appointed members to the Board of Trustees, the Committee was successful in bringing
forth an ordinance that has the support of the Retirement Board and the City Manager.
In addition to a number of minor changes to either improve or clarify operation of the
Retirement Fund. These ten changes and respective sections of the Ordinance which they
affect are as follows:
1. BOARD STRUCTURE (Sec. 2-215. A) - Increases the Retirement Board from 9 to 10
members. In addition to the current 5 members elected by employee groups and 4
members appointed by the City Council, a 10th member will be elected by retired
employees. In the new 10 member board, the Chair will vote only in case of tie
vote or when needed to obtain a majority.
2 BOARD RESIDENCY (Sec. 2-215. A.1 and A 3) - All Board members except the elected
retiree are to be residents of the City of Fort Worth.
3. CHAIR AND VICE CHAIR (Sec. 2-215. B.3) - In October of each year, the Board shall
elect a Chair and a Vice Chair to serve for 1 year (currently only a Chair is
elected).
4 RULES AND REGULATIONS (Sec. 2-215. 6.5) - The Board shall have power to administer
the Fund and make all rules, regulations, and procedures not inconsistent with the
Retirement Ordinance and other laws.
5. ACTUARIAL VALUATION (Sec. 2-214) - The Board shall appoint an actuary to perform
an annual actuarial study without City Council approval.
6. ADMINISTRATOR (Sec. 2-215. C.) - The position of Retirement Fund Administrator
shall be retitled to Executive Director The Executive Director shall be
appointed by the Board with the approval of the City Council. The Executive
Director and staff shall be employees of the City and subject to the City's
personnel rules and regulations. The Executive Director shall report to the Board
and not the City Manager. The Board shall propose a salary range for the
Executive Director subject to City Council approval.
Prirried on recyded paper
~~ G'ity of Fort Worth, Texas
Mayor and' Cau~cil Communication
DATE REFEREN E NUMBER L G NAME PA E
07/14/92 G-9724 13RETIRE 2 of 2
SUBJECT RETIREMENT ORDINANCE AMENDMENT
7. LEGAL ADVISOR (Sec. 2-215. B.11.~ - The City Attorney shall advise the Board upon°
the Board's request, and the Board may retain outside counsel as needed.
8. DISABILITY DEFINITION (Sec. 2-209) -Prior to applying to the Board for disability
retirement, employees disabled from the position in which they are working will
be required to apply to the City for any other vacant City position for which they
are qualified and can be reasonably accommodated, which position pays at least 75%
of their pay when disabled. This provision would require any person previously
granted disability retirement to seek reemployment with the City if permitted by
their condition and a vacant position exists which pays at least 15% of their pay
when they became disabled.
9. TERMINATION PROCESSING FEE (Sec. 2-211) - The $25 administrative fee current
charged to terminating employees shall no longer be deducted.
10. ADMINISTRATIVE EXPENSES (Sec. 2-215. D.1.& 2) - The Retirement Board will either
directly pay or reimburse the City for all administrative expenses of the Fund.
The budget for the Retirement Fund shall be presented to the City Budget Office
for review and comment; however, the Board shall make the final determination on
the Fund's budget.
CB:t
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by to
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Charles Boswel l 8500 '
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Originating Department Head '~
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VIiVIVClL
Judson Bai 1 i ff 8185 rom ~~
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For Additional Information ~ ~J
Contact City SsezstAry of the
City of Fort Worth, Texan
Judson Bailiff 8185
Printed on recyded paper