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HomeMy WebLinkAboutOrdinance 9532~M&C G-6512 .~ ORDINANCE N0. _!~V` ~~ AN ORDINANCE AMENDING ORDINANCE NOS. 2999, 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556, 7056, 7317, 7875, 8674, 8843 AND 9247, CODI- FIED AS APPENDIX "C" OF THE CODE OF THE CITY OF FORT WORTH (1964), AS AMENDED, WHICH ORDINANCES ESTABLISH AND FROVIDE FOR A RETIREMENT SYSTEM, RETIREMENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THE CITY OF FORT WORTH; PRO- VIDING FOR AN INCREASE IN THE PENSION COMPENSATION BASE FOR ALL RETIREMENTS COMMENCING PRIOR TO JANUARY 1, 1981; BY DECREASING THE AGE AT WHICH A DISABLED RETIREE MAY CEASE REPORTING EARNED INCOME OR NET EARNINGS FROM SELF°~ EMPLOYMENT; BY AMENDING THE LIMITED RETROACTIVITY OF BENEFITS SECTION DUE TO THE AFOREMENTIONED INCREASE IN PENSION COMPENSATION BASE; MAKING THIS ORDINANCE CUMULA- TIVE; 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, 7056, 7317, 7875, 8674, 8843 and 9247, be and the same is hereby further amended as follows: SECTION I. That Section IX, Paragraph B of Appendix "C" of the Code of the City of Fort Worth (1964), as amended, be and is hereby further amended by substituting the following language in lieu thereof, to wit: "B. Increases in Compensation Base "1. Persons Receiving Benefits Prior to July 1, 1983 "Effective July 1, 1983, all persons pre- viously receiving retirement benefits shall have their calculation fpr base pension benefits adjusted to two per cent (2$) of their compensa- _ _ Lion ba_se~multi,plied by_ rtheir total credited ' " - '=~~ - ~ _ °- ~ service- to date of actual retirement. Any cost of living amount presently being paid in addi- tion to base pension benefits shall be added to the new base pension to determine total benefits to be paid." "2. Persons Receiving Benefits Prior to January 1, 1981 "Effective January 1, 1986, all persons previously receiving retirement benefits prior ,fir .. F~_ , '~~~ . to January 1, 1981, shall have their compensa- tion base increased by one per cent (1$) for each full calendar year of retirement up to and including the year of 1985. Such revised compen- sation base shall be in addition to that pro- vided for in Section IX, Paragraph B.1. Any cost of living amount presently being paid in addi- tion to base pension benefits shall be added to the new base pension to determine total benefits to be paid." SECTION II. That Section X, Paragraph G of Appendix "C" of the Code of the City of Fort Worth (1964), as amended, be and is hereby further amended by substituting the following language in lieu thereof, to wit: "G. Report of Earned Income or Net Earnings from Self- Employment "Any disabled member who is not eligible to retire according to Section VII and who is receiving disability retirement benefits shall submit to the Board prior to October 1 of the first year following retirement and annually thereafter, a certified 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 employ- ment. If the total of earned income, net earnings from self-employment, compensation deferred under a deferred compensation program and City disability retirement benefits 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 over- time, acting, assignment, holiday, longevity, educa- tional incentive, safety award, incentive, shift differential or any other special o.r premium pay.) The Board shall terminate all disability benefits upon the member°s failure to submit the required income tax return with all attachments thereto or submission of falsified documents." SECTION III. That Section XXIII of Appendix "C" of the Code of the City of Fort Worth (1964), as amended, be and is hereby further amended by substituting the following language in lieu thereof, to wit: "SECTION XXIII "LIMITED RETROACTIVITY OF BENEFITS "The following changes in benefits shall be applied retroactively to those persons already receiving benefits -2- ~. 4Y}. 1 ~ ~' C~'- ~ l as of the date of this ordinance, which changes shall be imposed upon only those benefits payable after the effec- tive date of this ordinance: (1) increased compensation base for persons receiving benefits prior to July 1, 1983, as set forth in Section IX, B.1; (2) increased compensa- tion base effective January 1, 1986, for persons receiving benefits prior to January 1, 1981, as set forth in Section IX, B.2; (3) increased disability benefits as set forth in Section X, Paragraphs D. and E.; and (4) in- creased death benefits to qualified spouses and dependent children as set forth in Section XI. It is the express intention of the City Council of the City of Fort Worth that ail other increased retirement benefits herein pro- vided for, and which are not listed in the foregoing sentence, shall not be given retroactive effect and shall apply solely to members retiring on or after the effective date of this ordinance. SECTION IV. CONTROLLING POWER OF ORDINANCE The provisions of this ordinance shall be cumulative of and in ar3dition 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 V. VALIDITY OF ORDINANCE If any .provision, section, part, subsection, sentence, clause, phrase or paragraph of this ordinance be declared invalid or uncon- stitutional, the same shall not affect any other portion or provi- sion hereof, anti 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 ordi- nance that any portion of said ordinance was invalid, it would not have adopted such invalid part. SECTION VI. PREREQUISITES TO ORDINANCE _~ _ _ ._~...._.. The < City-Cou:nci-l--fi"nds'~that =a1"1' = a`ct"s"~° 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. -3- J. ~r~~. `'i: ,,~,f/ a, 4` r i.~, d~ 1,l ri. ~.- ra .. ~ r SECTION VII. ENGROSSMENT AND ENROLLMENT The City Secretary of the City of Fort Worth is hereby directed to engxoss 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 VIII. EFFECTIVE DATE This ordinance shall be in full force and effect from and after the date of its adoption and it is soy ordained. APPROVED AS TO .FORM AND LEGALITY: City Attorney of the City of Fort Worth, Texas Date: 1 2 - S _ g ADOPTED: _ ~~ E.F.FECTIVE : ~ ~~S ~ _____~~ -4- _. ~. ACCOUNTIh7G 2 TRANSPORTATION~PUQt.LC.WO F `~ ~~~J®~ h °'fER AOMINISTRATiGP~ ¢ e/%'/ ~~~C ~~~~,~~~ ~®~,~~~,a~~~~®~~, ~~ ~'d~ REFERENCE DATE NUMBER J~'~'`~-~,-+ '~7/~35 **G-6512 Recommendation It is recommended that cerning the Employees' suB~ECT Amended Retirement Ordinance PAGE ~ or-1 the City Council adopt the attached amended ordinance con- Retirement Fund of the City of Fort blorth. Discussion On October 28, 1y85, the Board of Trustees of the Employees' Retirement Fund of the Pity of Fort ~~iorth voted to recommend for all retired rnembers of the Fund and those entitled to survivors' benefits prior to January 1, 1981, a one percent in- crease in their base pension for each full calendar year of retirement up to and including the year of 1985. If approved by City Council, this base pension increase will become effective on January 1, 1986. The annual actuarial valuation of the Fund, dated January 1, 1985, and a special study reflect that this increase can be added to the system ~aithout ~eopardiziny the actuarial souridness of the Fund. The actuarial report of January .l, 1y85 showed that there was a one percent mar- gin between the contribution level in place and the contribution rates reylaired to support the benefits of the system. The required contribution rate as per ac- tuarial calculation was 18.08% of pay, whereas the actual current contribution rate of pay is 1y.17%. Consequently, the one percent adjustment in base pension is within the actuarial limits as it only utilizes approximately one-half of the margin in granting the one percent base pension increase to t{-lose persons re- ceiving retirement benefits prior to ~lanuary 1, 1Q81. The recommended amended ordinance also changes the reporting reyuirernent con- cerning net earnings or earned income while receiving disability retirement bene- fits from the City. The aye at which a disabled retiree becomes exempt from the requirement to submit proof of such income or earnings has been lowered from aye seventy-two to the age at which the employee could have retired under the rule of eighty but for the disability. AJB kcgq Attachment ~~R~Y ~C~~~~L //~~ "~~DEC ~~' t985 City SeQretary of th© City of Folt3 e ~ SUBMITTED FOR TH~~ CITY MANAGER'S nFFICE BY i / ORIGINATING DEPARTMENT HEAD J, Bailiff DISPOSITION BY COUNCIL. ~i APPROVED OTHER (DESCRIBE) PROCESSED BY CITY SECRETARY FOR ADDITIONAL INFORMATIgN I~,dOr~ted Ord~naece No. CONTACT U . Bai 1 i ff 8185 t' DATE