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HomeMy WebLinkAboutOrdinance 10679 ORDINANCE NO. ~ ~/ V ` 7 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 AND 10607, 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, RETIRE- MENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THE CITY OF FORT WORTH; PROVIDING FOR A REDUCTION IN THE PERCENTAGE OF A MEMBER'S SALARY UPON WHICH BASIS THE CITY AND THE MEMBER CONTRIBUTE TO THE RETIREMENT FUND; PROVIDING FOR AN INCREASE IN THE PERCENTAGE OF A MEMBER'S COMPENSATION BASE TO BE RECEIVED UPON RETIREMENT; PROVIDING FOR AN INCREASE IN PENSIONS FOR MEMBERS RECEIVING BENEFITS BEFORE OCTOBER 1, 1990, AND ESTABLISHING MINIMUM MONTHLY PAYMENTS FOR SUCH MEMBERS; PROVIDING FOR AN INCREASE IN THE AMOUNT OF CERTAIN DISABILITY PENSIONS; PROVIDING FOR REDUCED RETIREMENT FOR CERTAIN MEMBERS AT AGE 50; AMENDING THE LIMITED RETROACTIVITY OF BENEFITS SECTION; MAKING THIS ORDI- NANCE CUMULATIVE; 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 Ordinance No. 2999, passed and adopted by the City Council of the City of Fort Worth on the 24th day of September, A.D. 1952, as amended by Ordinance Nos. 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556,47056, 7317, 7875, 8674, 8843, 9247, 9532, 10081, 10291, 10369, 10385 10564 and 10607, be and the same hereby is further amended as follows: SECTION 1. That Chapter 2, Article VI, Division 1, Section 2-204, "Members' contributions", of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended to read as follows: e "Sec. 2-204. Members' contributions. (a) Commencing on the effective date of member- ship and continuing until the date of his actual retirement or earlier termination of employment, each member shall contribute to the fund five and sixty- seven one hundredths (5.67) percent of his salary. 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 deduc- tions made from his compensation; and payment to such member of compensation, less the deduction, shall constitute a full and complete discharge and acquit- tance of all claims and demands whatsoever for services rendered by such member during the period covered by such payment except as to the benefits provided for by this article. (b) The members' contribution percentage pro- vided for in this section may be raised at any time from five and sixty-seven one hundredths (5.67) per- cent 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 (75) percent of the members voting at an election called for that purpose by the board and held at a time simultaneous with the election of members to the board, as specified in section 2-216 of this article, provided that such raise shall not be effective unless the city council shall, by ordi- nance or resolution, also agree to contribute at least an equal percentage." SECTION 2. That Chapter 2, Article VI, Division 1, Section 2-205, "City's contributions", of the Code of the City of Fort Worth (1986), as amended, be and is hereby amended by changing subsection (a) thereof to read as follows: "(a) The city shall contribute to the fund an amount equal to eight and fifty one-hundredths (8.50) percent of the salaries of members. Section 2-204 shall not limit the right of the city council, through its budget appropriation, to contribute an additional amount over and above the members' contri- butions, in accordance with article 6243k, Revised Civil Statutes of Texas, as amended, plus the cost of administration of the fund." 2 SECTION 3. That Chapter 2, Article VI, Division 1, Section 2-209, "Retirement pensions", of the Code of the City of Fort Worth {1986), as amended, is hereby further amended by changing subsections (a), (b), and (c) thereof to read as follows: "(a) Pension commencing upon retirement. A vested member who retires and requests commencement of his pension shall receive an annual life pension, the amount of which shall be two and fifty one-hundredths (2.50) percent of his compensation base multiplied by his total credited service to date of actual retire- ment, payable on the first day of each month com- mencing with the month following the last month for which such member receives compensation from the city. (b) Pension adjustments for persons receiving benefits as of July 1, 1990. (1) Effective July 1, 1990, all retired members previously receiving pension benefits shall have their calculation for base pension benefits adjusted to two and fifty one-hundredths (2.50) percent of their compensation base multiplied by their total credited service to date of actual retirement. Any cost of living amount presently being paid in addition to base pension benefits shall be added to the new base pension to determine total benefits to be paid. (2) Effective July 1, 1990, after the adjustment provided for in Section 2-209(b)(1) is made, all retired members receiving pension bene- fits prior to July 1, 1990, shall have their calculation for pension benefits further adjusted, if necessary, so that the monthly payment received, including any cost of living adjustments, shall not be less than $150.00 for each five (5) years of credited service to the date of actual retirement. Effective July 1, 1990, such minimum monthly payments shall be made to such retired members who were receiving benefits prior to July 1, 1990, and no member who becomes 3 entitled to receive benefits on or after July 1, 1990, shall be entitled to such mini- mum payments. (3) Surviving spouses, dependent children and dependent parents may share in the pension adjustments provided for in this Section 2-209 (b), subject to the limitations con- tained in Section 2-211. (4) Those members retiring on or between July 1, 1990 and October 1, 1990 may be entitled to pension adjustments as set forth in Section 2-209(b) (1), (2) and (3) based upon their date of actual retirement. (c) Cost-of-living adjustments. Annually, effective January 1, 1991, and on the first day of each January thereafter, a cost-of-living adjustment shall be made on all base pensions of all members of the fund who have retired or to their survivors who have become entitled to benefits on or before September thirtieth of any preceding year, by adjusting the amount of the base pension up or down by the amount of the change in the consumer price index over the previous year, or by two (2) percent, 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, nor shall payments to any person covered by Section 2-209(b)(2) be reduced below the minimum payments provided for in such section." SECTION 4. That Chapter 2, Article VI, Division 1, Section 2-210, "Disability pensions", of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by changing subsections (d) and (e) thereof to read as follows: "(d) Disability from bodily injury in line of duty. If a member becomes disabled while in the line of duty, he shall receive an annual life pension, the amount of which shall be two and fifty one-hundredths (2.50) percent of his compensation base multiplied by his total credited service which would have accrued if the member had worked to his earliest retirement date, but not less than two hundred fifty dollars ($250.00) per month. Disability, as that term is used in this subsection, shall mean total and perma- nent disablement caused by injury or disease sus- tained in the course of the operations usual to a 4 i member's employment, and shall include all operations necessary, incident or appurtenant thereto or con- nected therewith, whether such operations are con- ducted at the usual place of employment or elsewhere in connection with or in relation to his usual and customary employment. (e) Disability not in line of duty. If a member who is vested becomes totally and permanently disabled while not in the line of duty, he shall receive an annual life pension, the amount of which shall be two and fifty one-hundredths (2.50} percent of his compen- sation base multiplied by his total credited service to date. If a member becomes disabled not in the line of duty before that member is vested, then Section 2-212 shall apply." SECTION 5. That Chapter 2, Article VI, Division 1, Section 2-212, "Termination benefits and vesting" of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by changing subsection (b) thereof to read as follows: "(b) A member who resigns or is terminated after vesting shall be entitled to receive a vested right of one hundred (100) percent of the amount of pension earned to date of termination, payable in full on the date when the member shall be eligible for retirement under Section 2-207, or in a reduced amount com- mencing at age fifty (50), such reduction to be five-twelfths (5/12) percent for each month by which commencement of the pension antedates the date when the member shall be eligible for retirement under Section 2-207." SECTION 6. That Chapter 2, Article VI, Division 1, Section 2-222, "Limited retroactivity of benefits", of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended to read as follows: "Sec. 2-222. Limited retroactivity of benefits. (a) The following changes in benefits shall be applied retroactively to those persons receiving bene- fits prior to July 1, 1990, and shall be applied only to those benefits payable on and after July 1, 1990: 5 1 (1) Increased percentage of compensation base as set forth in Section 2-209(b); (2) Increased minimum monthly pension payments as set forth in Section 2-209(b); (3) Increased disability benefits as set forth in Section 2-209(b) and Section 2-210(d) and (e); and (4) Increased death benefits to qualified spouses and dependent children as set forth in Section 2-209(b) and Section 2-211. (b) It is the express intention of the city council that all other increased retirement benefits provided for in this article, and which are not listed in subsection (a), shall not be given retroactive effect and shall apply solely to members retiring on or after July 1, 1990." SECTION 7. 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. SECTION 8. 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 6 i Z of this ordinance that any portion of said ordinance was invalid, it would not have adopted such invalid part. SECTION 9. PREREQUISITES TO ORDINANCE The City Council finds that all acts, conditions and things required by provisions of the Constitution of Texas and the 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 and manner. SECTION 10. 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 11. EFFECTIVE DATE This ordinance shall be in full force and effect from and after the date of its adoption and it is so ordained. APPROVED AS FOR FORM AND LEGALITY: City Attorney Date • ~ ~ ~ S r l ~ ADOPTED :~ 5 '' ~~ EFFECTIVE : ~ ~' ~ ~ ~ ~~ 7 e r MASTER FICE+11 ACCOUNTING<2 ~~~~ O~~/O~e~ `~,®~}~' ~~~~~ IRANSPORTATIONIPUBLIC .WORD /.f ~~/q 1L i, • ~ HATER ADMINISTRATION"" "7/ ® ° ~^~'~~ ~®LLiIV~~~~ ~®~0 U W IVIY~~~'1..W ~~®~ CITY. MANAO a ~ .' eeeJJJ~~~ (~ O ~ `^' ~ REFERENCE suB~ ORDINANCEE PAGE 2 ~../~ ~ ~ NUMBER 9-25-90 G-8831 I 1 of RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance amending the following sections of the City Retirement Ordinance: Section 2-204 - Section 2-205 - Section 2-209 - Section 2-210 - Section 2-212 - Section 2-222 - DISCUSSION: "Members' Contributions"; "City's Contributions"; "Retirement Pensions"; "Disability Pensions"; "Termination Benefits and Vesting" and "Limited Retroactivity of Benefits". At the May 22, 1990, Precouncil session, the City Council was presented with information concerning the condition of the Employees' Retirement Fund and a request from the Retirement Fund Board of Trustees to amend the Retirement Ordinance to provide for certain benefit improvements. The Council directed the City Manager to evaluate both the information and the request, and to present his recommendation for any possible retirement benefit improvements. In Informal Report No. 7471 (June 5, 1990), the City Manager presented to the Council his recommendation which consisted of the following: Contribution Adjustments: A) adjust the City Contribution to the Retirement Fund from 11.50% to 8.50% B) adjust the Employee contribution to the Retirement Fund from 7.67% to 5.67% Benefit Imorovements A) increase the benefit formula multiplier from 2.00% to 2.50% B) establish a minimum benefit for current retirees of $150 for each 5 years of service after the first 5 years of credited service C) provide fbr`a.n "early retirement" at age 50 with an actuarial adjustment of 5/12% per month for each month by which commencement of a pension antedates the date which would have been the member's retirement date if the member had remained employed by the City. The consensus of the City Council was that once the adjustments to contributions could be made, the Council would proceed to implement the City Manager's recommendations for benefit improvements. _, DATE REFERENCE suB~ECT '' AMENDMENTS TO RETIREMENT Pace NUMBER - ORDINANCE 2 2 9-25-90 G-8831 or The above recommended amendments to the Retirement Ordinance provide for both the adjustments to contributions and for the improvements to retiree benefits to become effective October 1, 1990. RAM:b/6 * Improvements to the retirees benefit to be retroactive to July 1, 1990 APPRpV~p BY CITY COUNCIL ~s• S~~ ~~ ts3p Cite Seozetazy of the City of Port Worth, Texan SUBMITTED FOR THE CITY MANAGER'S OFFICE BY Ruth Ann Mckinne 6125 DISPOSITIO COUNCIL: APPR VED PROCESSED BY ORIGINATING HER (DESCRIBE) 7 .1 DEPARTMENT HEAD• JUdSOn Bdl ~ ~ ff B186 See asterisk CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT Ruth Ann McKinney 6125 ~ ~CdICi~FI~@ Nis DATE