HomeMy WebLinkAboutOrdinance 10081".. ~~ ~ ~~
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ORDINANCE NO. /aD~j
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 AND 9532,
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 FOR CONTINUATION FOR LIFE OF WIDOW AND
WIDOWER'S BENEFITS AFTER REMARRIAGE; PROVIDING FOR
INTEREST TO BE COMPOUNDED BIWEEKLY WHERE PAYABLE TO A
NON-VESTED EMPLOYEE WHO IS TERMINATED; PROVIDING A CHANGE
IN INVESTMENT RESTRICTIONS; MAKING THIS ORDINANCE CUMULA-
TIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR
ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE
DATE .
BE IT ORDAINED 8Y 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, 7056, 7317, 7875, 8674,
8843, 9247 and 9532, be and the same is hereby further amended as
follows:
SECTION 1.
That Chapter 2, Article VI, Division 1, Section 2-202, Subsec°
tion "Regular Interest,'° of the City of Fort Worth (1986), as
amended, be and is hereby further amended by substituting the fol-
lowing language in lieu thereof, to wit:
"'Regular interest' shall mean interest compounded biweek-
ly 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."
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SECTION II.
That Chapter 2, Article VI, Division 1, Subsection 2-211(a)(2),
"Definition of Eligible Dependent," Subsections (a) and (b), of the
Code of the City of Fort Worth (1986), as amended, be and are hereby
further amended by substituting the following language in lieu
thereof, to wit:
"a. A married male member may elect only his female wife
as his dependent under this option. A wife qualifies
as a dependent if (1) she is not mare than fifteen
(15) years younger than her husband, and (2) she has
been legally married to him for at least one (1)
year. Benefits to a widow shall continue after re -
marriage, but shall cease upon her death.
b. A married female mem'per may elect only her male hus-
band as her dependent. A husband qualifies as a
dependent if (1) he is not more than fifteen (15)
years younger than his wife, and (2) he has been
legally married to her at least one (1) year. Bene-
fits to a widower shall continue after remarriage,
but shall cease upon his death."
SECTION III.
'That Chapter 2, Article VI, Division I, Section 2-l11(a)(3),
"Death Benefit Option, '° of the Code of the City of Fort Worth
(1986), as amended, be and is hereby further amended by substituting
the following language in lieu thereof, to wit:
"3. Death Benefit Option
A n eligible dependent of (a) a deceased member whose
eligible dependent was receiving benefits when Ordinance
No. 4430 was adopted, (b) a retired member who subsequent-
ly dies, or (c) an active member who subsequently dies
prior to exercising a Joint and Survivor Option shall have
the option of receiving the death benefit provided for
prior to the adoption of said ordinance (payment or con-
tinuance of the member's pension for the remaining part of
a ten (10) year period following the death or retirement
of said member, whichever is applicable) or a life
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annuity (subject to automatic cancellation upon death)
computed in accordance with the following table:
Relative Age of
Dependent to Member
15 years younger
14 years younger
13 years younger
l2 years younger
11 years younger
10 years younger
9 years younger
8 years younger
7 years younger
6 years younger
5 years younger
4 years younger
3 years younger
2 years younger
1 year younger
Same age
1 year older
2 years older
3 years older
4 years older
5 or more years older
Percentage of Basic Monthly
Pension Payable to Dependent
43.5
44.0
44.5
45.0
45.5
46.0
46.5
47 .0
47.5
48.0
48.5
49.0
49.5
50.0
53.0
56.0
59.0
62.0
65.U
68.U
71 .0
If an eligible dependent child is more than fifteen (15)
years younger than a member, the percentage of monthly
pension payable to such child shall be computed by reduc-
ing forty-three and one-half per cent (43.5x) by one-half
per cent (0.5x) for each year by which the age difference
exceeds fifteen (15)."
SEC'PION IV.
That Chapter 2, Article VI, Division 1, Section 2-211(b)(5),
"General Provisions", of the Code of the City of Fort Worth (1986),
as amended, be and is hereby further amended by substituting the
following language in lieu thereof, to wit:
"If a deceased member leaves no widow, widower,
children or dependent parents eligible to receive a bene-
fit hereunder, his total contributions, plus regular
interest less any amount previously paid to him because of
disability, shall be paid to his estate.
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"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
the earlier of such parent's death or marriage. Payments
to a widow or widower shall continue after remarriage, 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.
"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 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.
"The Board shall determine all questions of depen-
dency, and their determination shall be final and conclu-
sive on all parties.
"All unmarried, legitimate and legally adopted chil-
dren under the age of eighteen (18) years, in the absence
of a determination to the contrary, shall be considered
dependent."
SECTION V.
That Chapter 2, Article VI, Division 1, Section 2-212, "Termi-
nation of Benefits and Vesting°', Subsection (a), of the Code of the
City of Fort Worth (1986), as amended, be and is hereby further
amended by substituting the following language in lieu thereof, to
wit:
"Any member who is voluntarily or involuntarily sepa-
rated from the service of the City before he is vested
shall be entitled to receive the amount of his contribu-
tions plus regular interest, less Twenty-five Dollars
($25.00). In cases where the position held by the member
has been abolished, the Twenty-five Dollar ($25.UU) charge
shall not be deducted. No additional assessment shall be
made against employees whose contribution refund does not
equal Twenty-five Dollars ($25.00)."
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SECTION VI.
That Chapter 2, Article VI, Division 1, Section 2-216(b)(6), of
the Code of the City of Fort Worth (1986), as amended, be and is
hereby further amended by substituting the following language in
lieu thereof, to wit:
"6. The Board shall be the trustee of the Fund and
shall have full power, at its sole discretion, to invest
and reinvest the assets of the Fund, including undis-
tributed income. In acquiring, investing, reinvesting,
exchanging, retaining, selling, supervising and managing
the funds held hereunder, the Board shall exercise the
judgment and care under the circumstances then prevailing
which persons of ordinary prudence, discretion and intel-
ligence exercise in the management of their own affairs,
not in regard to speculation but in regard to the perma-
nent disposition of their funds, considering the probable
income therefrom as well as the probable safety of their
capital. 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 obliga-
tions, and stocks, preferred or common, which persons of
ordinary prudence, discretion and intelligence acquire or
retain for their own account; provided, however, that each
investment manager employed by the Board shall not pur-
chase or hold within the Fund's investment portfolio under
its management at any time more than five per cent (5°s) of
the outstanding securities of any one corporation.
VII.
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 by substituting
the following language in lieu thereof, to wit:
"Sec. 2-222. Limited retroactivity of benefits.
"(a) The following changes in benefits shall be
applied retroactively to those persons already receiving
benefits as of the date stated below, which changes shall
be imposed upon only those benefits payable after that
date stated below.
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(1) As of June 6, 1983, increased compensation base
for persons receiving benefits prior to July 1, 1983, as
set forth in Section 2-209(b)(1);
(2) As of December 17, 1985, a one-time increase in
compensation base on January 1, 1986, for persons receiv-
ing benefits prior to January 1, 1981, as set forth in
Section 2-209(b)(2);
(3) As of June 6, 1983, increased disability benefits
as set forth in Section 2-210(d) and (e); and
(4) As of June 6, 1983, increased death benefits to
qualified spouses and dependent children as set forth in
Section 2-211.
"(b) It is the express intention of the City Council
that all other changes in retirement benefits provided for
in this section, and which are not listed in Subsec -
tion (a), shall not be given retroactive effect."
VIII.
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 con-
flict, the provisions of this ordinance shall control.
SECTION IX.
VALIDITY' OF ORDINANCE
If any provision, section, part, subsection, sentence, clause,
phrase or paragraph of this ordinance be declared invalid or uncon-
stitutio nal, the same shall not affect any other portion or provi-
sion hereof, and all other provisions shall remain valid and
unaffected by any invalid portion, if any, and the City Council now
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says that, if it had known at the time of the pass age of this
ordinance that any portion of said ordinance was invalid, it would
not have adopted such invalid part.
SECTION X.
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.
SECTIUN XI.
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 XII.
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 TO FORM AND LEGALITY:
City Attorney
Date:
ADOPTED: U/ ~y
EFFECTIVE : l.~i
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PAGE
„rig DATE _ NUMBER CE SUBJECT
[~/~ 3-24-88 G-7492 AMENDED RETIREMENT ORDINANCE !of __1
RECOMMENDATION
The Board of Trustees of the Employees' Retirement Fund recommends that the
City Council adopt the attached amended ordinance which continues pensions upon
the remarriage of a widow/widower, compounds regular interest on a biweekly
basis on employee contributions restricts each investment manager from
purchasing or holding more than 5% of the outstanding securities of any one
corporation, and clarifies commencement dates for limited retroactivity of
benefits granted by prior ordinances.
nT Cf'I ICCT f1N
On January 31, 1988, the Board of Trustees of the Employees' Retirement Fund of
the City of Fort Worth approved• 1) the continuation of widow's/widower's
benefits after remarriage, and 2) regular interest on employee contributions
received upon termination to be compounded biweekly which shall equal but not
exceed the effective annual rate of 5-1/4% computed on a calendar year basis.
Both changes would become effective when City Council approves said retirement
amendment. ,.
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The January 1, 1987 actuarial valuation of the Fund and a special study on
January 18, 1988 indicate that both changes can be added to the system without
jeopardizing the actuarial soundness of the Fund.
The amended ordinance would also eliminate prior investment restrictions on
security holdings and prohibit each investment manager employed by the Board
from purchasing or holding within the Fund's investment portfolio under its
management at any time more than 5% of the outstanding securities of any one
corporation. The Board approved this change in the summer of 1987.
Lastly, revisions of the city Code by a new publisher caused some erroneous
date language to be placed in the limited retroactivity of benefits section. No
changes have been made to actual benefits; staff has merely clarified the
implementation of such limited retroactive benefits as set forth in prior
ordinances.
WA.wg
SUBMITTED FOR IMt
CITY MANAGER'S
OFFICE BY David Ivor
ORIGINATING
CEPARTMENT HEAD• JUd77SOfnVr BaT 1 ~ ff
FOR AO DITIONAL~NFO,~tal IIQ I f 8585
CONTACT ~$
APPROUED BY
CITY COUNCIL
MAR `~4 1988
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DISPOSITION BY COUNCIL. G'1tY $ECLEta~SR8E~S5ED BY
Q APPROVED
~.a :~ Wozth, Texae
OTHER (DESCRIBE)
CITY SECRETAR'!
Adopted Ordinance iVo./~/~_,_/~ DATE