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HomeMy WebLinkAboutOrdinance 9247.~ i i~ «-,, ~' i ORDINANCE N0. AN ORDINANCE AMENDING ORDINANCES NOS. 2999, -4060, 4250, 4304, 4354, 4430, 4860,. 4861, 4873, ,~: 4875, 5226, 5259, 6393, 6556, 7056, 7317, 7875, 8674 AND 8843, CODIFIED AS APPENDIX "C" OF THE CODE OF THE CITY OF FORT WORTH (1964), AS AMENDED, WHICH ORDINANCES ESTABLISH AND PROVIDE FOR A RETIREMENT SYSTEM, RETIREMENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THE CITY OF FORT WORTH, BY ADDING DEFINITIONS OF EARNED INCOME AND NET EARNINGS FROM SELF-EMPLOYMENT; REVISING THE DEFINITION OF EARNINGS;' PROVIDING FOR THE EFFECT OF MAJOR MEDICAL LEAVE, NOT COMPENSATED OTHERWISE, UPON CREDITED SERVICE; '`~ CHANGING ELIGIBILITY DATES FOR RETIREMENT; REVISING THE COMPENSATION BASE FOR DETERMINING BENEFITS, TOTAL AND PERMANENT DISABILITY BENE- FITS, DEATH BENEFITS, AND ADMINISTRATIVE EXPENSES; DELETING AN EXPIRED PROVISION PERTAIN- ING TO AN INTERIM BOARD OF TRUSTEES; MAKING THI5 ORDINANCE CUMULATIVE; PROVIDING FOR AMENDMENT HEREOF; PROVIDING A SEVERABILITY CLAUSE; PRO- VIDING FOR A LIMITATION OF LEGAL RIGHTS; PROVID- ING LIMITED RETROACTIVITY OF BENEFITS; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, e TEXAS: That Ordinance No. 2999, passed and adopted by the City Council E of the City of Fort Worth on the 24th day of September, A.D. 1952, as amended by Ordinances Nos. 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556, 7056, 7317, 7875, 8674 and 8843, be and the same is hereby amended and, after being so amended, .the same shall be and read as follows: SECTION I. ~+ ACKNOWLEDGMENT OF CREATION OF THE FUND Acknowledgement is hereby made of the creation and establish- -. meat 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, R.C.S. of Texas, which amending Article abolished the ~~ ~ ^ .. ~: ~ ,t, i- f ~ i ~ 1 ; "~ - ; , k!~ ~~ ! ~ i statutory Firemen's Relief and Retirement Fund in the City of Fort Worth. The abolition of the Firemen's Relief and Retirement Fund in the City of Fort Worth by the adoption of Article 6243e-2 by the Legislature was of great benefit to employees of the City of Fort Worth for the reason that the minimum pension under the State statute was a minimum of Fifty Dollars ($50.00) a month and the max- imam was Two Hundred Six Dollars ($206.00) a month. The abolition of the statutory Firemen's Relief and Retirement Fund, which was actu- arially unsound, was also of benefit to the firemen, the City and its employees, in that the Legislature of the State of Texas re- frained from adopting proposed legislation which would have required a contribution of nine per cent (9~} from the fire employees and twelve per cent (12%) from the City to make such Fund sound. 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. ` Since the assets transferred from- the Firemen's Relief and Retirement Fund were insufficient to provide improved benefits, it was necessary that contributions to the Fund by both the City and the employees be substantially increased to insure sufficient fund- ing and improved benefits. At an election held on June 28 and 29, 1974, by the members of the Employees' Retirement Fund of the City of Fort Worth, in excess of eighty-three per cent (83~) of such membership approved the fol- lowing proposition: "Shall the employees' contributions to the Retirement Fund be increased by an amount not less than 1-1/2~S of salary, nor more than 2-3/4~ of salary, provided that the em- ployees' total contribution shall not exceed 2/3 of the total amount contributed by the City of Fort Worth; such increases in contribution being necessary to provide ade- quate funding for normal retirement at age 55 after 30 years of service and an increase in the amount of pension payments?" -2- •,~ „ - r ~~ '~ ~,b. ii -+- i} it A' •i' 1. ~~ j~4c. I~~ .f. ' ~ni I f' n } At the time of the adoption of such proposition, the employee con- tributions were six per cent (6~) and the City's contributions were nine per cent (9~) of salary. SECTION II. DEFINITIONS 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. B. "Actuary" shall mean the individual or organization re- tained by the City to provide actuarial evaluations of the Fund. C. "Administrator" shall mean the individual appointed by the City Manager, subject to the approval of the Board of , Trustees, to supervise the operation of the Fund. D. "Beneficiary" shall mean any person in receipt of a re- tirement benefit or any other benefit provided under the ordinance. E. "Board" shall mean the Board of Trustees of the Em- ployees' Retirement Fund of the City of Fort Worth, Texas. F. "City" shall mean the City of Fort Worth, Texas. G. "Credited service" shall mean the number of years and com- pleted months of service in which an employee has partici- pated in the program of the Employees' Retirement Fund of the City of Fort Worth. H. "Earned income" shall mean, for purposes of Section X, those wages, salaries, tips, commissions, monetary bonuses or professional fees, and other amounts received as com- penration for personal services actually rendered, includ- ing any compensation deferred under a deferred compensa- tion program. I. "Earnings" shall mean the base hourly rate of pay actually paid to an employee by the City for services rendered to the City during a calendar year plus overtime, acting, assignment, holiday, longevity, educational incentive, -3- n ;~ ~ ~ a c .j ~.. s '.: ~q,. ~t w _ _ =~G iA G' ~a:~r.i i<'.' w.. .~ is 1F. 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, auto- mobile 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 participating in a City-sponsored deferred compensation plan shall have the amount 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. J. "Employees eligible for participation" in the Retirement Fund shall include all regular employees of the City of Fort Worth on the first day of the pay period following their employment with the City and who at that time have enough years of work remaining that they will be eligible for vesting, provided that the following employees shall not be eligible for participation in the Retirement Fund: 1. Elective officers and non-salaried, appointive mem- bers of administrative boards and commissions, except employee members of such boards; 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; 5. Persons carried on the payroll as temporary em- ployees. 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 of Trustees of the Retirement Fund for a deter- mination as to any person's eligibility to become a member of the Fund. K. "Fiscal year" shall mean the period from October 1st of one year through September 30th of the following year. L. "Fund" shall mean The Employees' Retirement Fund of the City of Fort Worth, Texas. -4- ! [ ~, j7"y, 1 M. "Legitimate Children" shall mean those children legiti- mate 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. N. "Members" shall mean the eligible employees of the City of Fort Worth who are participants in the Fund. O. "Net Earnings from self-employment" shall constitute, for purposes of Section X, 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. P. "Price index" shall mean the annual average for each year, ending September 30th, of the Consumer Price 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. Q. "Regular interest" shall mean interest at the rate of five and one-fourth per cent (5-1/4~) per annum, com- pounded annually, from the end of the Plan year in which each contribution is made up to the end of the Plan year preceding the date upon which such interest becomes pay- able. , R. "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. S. "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. T. "The masculine pronoun," wherever used herein, shall in- elude the feminine pronoun. U. "Vested" shall mean the rights accrued under this ordi- nance by a City employee who has been a member of the Employees' Retirement Fund of the City of Fort Worth for five (5) years or more. -5- U C i ,3 , c , ` `I: i~ 4 l .. ~ . ~ 3 ;~ SECTION III. MEMBERSHIP IN TFiE FUND Membership in the Fund shall be a condition of employment for all eligible employees. No person employed in the future shall be= come a member of the Fund until he ha°s passed a satisfactory physi- cal examination prescribed by the Board of Trustees. Any existing physical condition at the time of entry into the Fund shall not be a basis for disability retirement prior to vesting. Upon actual accep- tance into the Fund, such new member shall make contributions back to the date of that employee's eligibility for acceptance into the Fund in accordance with the then current schedule of contributions. Firemen who were in the active employ of the City and were mem- hers of the Firemen's Relief and Retirement Fund on the effective date of legislation authorizing the inclusion of active firemen in this Fund shall be granted pension credits for all years and com- pleted months of service rendered as an employee of the City of Fort Worth prior to said effective date. Employees of the City who were actively at work on October 1, 19,52, and who were eligible for membership in the Fund on January 1, 1946, but who at the date of such eligibility rejected membership and who joined the amended Fund as of October 1, 1952, shall receive credit for all prior service except for the period between the date of refusal and September 30, 1952. SECTION IV. MEMBERS' CONTRIBUTIONS Commencing on the effective date of membership and continuing until the date of his actual retirement or earlier termination of employment, each member shall contribute to the Fund seven and sixty-seven one hundredths per cent (7.67) of his salary. This con- tribution 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 mem- ber shall be deemed to consent and agree to deductions made from his compensation; and payment to said member of compensation, less said deduction, shall constitute a full and complete discharge and acquittance of all claims and demands whatsoever for services ren- -6- I: ~ ! ~ {;. ~~ ~ ~ '~ ~ t - - :C ' 1. (` ~].] T .I` 1~. L~ ~ ti,. ~ t 1. ~ '~ ~ 1: ~ ' .I• 1:' `dered by such member during the period covered by such payment ex- cept as to the benefits provided for by this ordinance. The members' contribution percentage provided for herein may be raised at any time from seven and sixty-seven one hundredths per cent (7.67) to a higher amount, as regulated by Article 6243k, R.C.S. of Texas, as amended, upon a vote in favor of such raise by seventy-five per cent (75~) 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 XVI of this Ordinance, provided that such raise shall not be effective unless the City Council shall, by ordinance or resolution, also agree to contribute at least an equal percentage. SECTION V. CITY'S CONTRIBUTIONS The City shall contribute to the Fund an amount equal to eleven and fifty one-hundredths per cent (11.50) of the salaries of mem- hers. Section IV 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, R.C.S. of Texas, as amended, plus the cost of admin- istration of the Fund. The City Council shall also include in the budget sufficient funds to pay the cost of the administration of the Fund, as further set forth in Section XVI.D., and such appropriation shall be in addition to the City's contributions to the Fund. SECTION VI. CREDITED SERVICE A. Service Breaks Pension credits shall be granted for all years and completed months of service for which a member of the Fund receives compensa- tion from the City up to the date of his actual retirement after the date of his eligibility for participation, subject to the following regulations pertaining to service breaks: 1. Authorized service breaks of ninety (90) or less consecu- tive calendar days shall not be deducted from credited service, provided member,: contributions are continued -7- .~ o. .. d _ r, t, i ., ~ _ ~. ..F {: '~ a .t. i ~' 4. I. 1. i V 1. I. 1. 1 during such periods, in which event City contributions shall also be continued. 2. Periods of absence in excess of ninety (90) consecutive calendar days 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 twelve (12) or less consecutive calendar months due to layoff or authorized leave shall be permit- ted without loss of prior service credits; a period of absence exceeding twelve (12) consecutive calendar months (except for bona fide illness or military service as here- inafter provided for) shall cancel all prior service; how- ever, if a member is absent for a period exceeding twelve (12) consecutive calendar months, he may regain his prior service credits by remaining in active City employment for a period equal to or greater than two (2) times the period of absence or ten {10) years, whichever is less, and repaying the total amount of all contributions withdrawn, plus regular interest thereon from the date of withdrawal to the date of repayment. 4. A member who is absent because of bona fide illness shall not lose his eligibility for retirement, disability or death benefits nor suffer loss of prior credited service while so absent, even though such absence exceeds twelve (12) consecutive calendar months. Such absences beyond ninety (90) consecutive calendar days shall, however, be deducted from years and months of service in computing percentage pension credits and in determining total years of service to be credited in computing a minimum pension. 5. A member absent for service in the Armed Forces of the United States, with the exception of those employees involuntarily recalled to active duty in time of a National Emergency, shall be granted service credit for such absence for a period not to exceed two (2) years, provided that any such member shall not have withdrawn his contributions to the Fund. Members involuntarily recalled -$- . r - ~y _ i`~ :S r ~ J ~' a' s <, ~ ~x ~ fj,- to active duty in the Armed Forces during a National Emergency shall be granted service credit for such absence for a period not to exceed two (2) years, provided that such member resumes his employment with the City within one hundred twenty (120) consecutive calendar days after date of his first becoming eligible for release to inac- tive duty or discharge, and provided further that such member has not withdrawn his contributions to the Fund. 6. For purposes of this section, service for fifteen (15} or more days in any month shall constitute a completed month of service; absence for fifteen (15) or more days in any month shall constitute a completed month of absence. 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 Section VI. A. above, any hours of accumulated sick leave and/or unused major medical leave, as recorded in the official personnel records of the City, for which that employee has not received com- pensation. For credited service purposes, 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 of accumulated uncompen- sated sick leave and/or unused major medical leave divided by 2080 and multiplied by 12 (2080 is derived from 26 pay periods in a year multiplied by the 80 hours in a single pay period). 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 greater than or equal to 0.50, then one month shall be added to credited service. If the resulting product contains a decimal value that is less than 0.50, then no addition to credited service shall be made. 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. -9- ., , r.. ~ , ~. , ' ~. + .r .. 1 v ~> .~: ~t SECTION VII. RETIREMENT DATES A vested member shall be eligible for retirement on the last day of the month in which the earliest of the following occurs: 1) Member's years of age and years of credited service total eighty (80) when added together; or 2) Member reaches age sixty-five (65), except that a female whose latest employment date was prior to October 1, 1971, may retire at age sixty (60). SECTION VIII. COMPENSATION BASE FOR DETERMINING BENEFITS Pension, death and vested termination benefits shall be based upon the average earnings which were paid to a member by the City for employment with the C ity during any f ive ( 5 ) calendar years in which he had the highest earnings. Earnings for the purpose of cal- culating the compensation base shall constitute the base hourly rate of pay actually paid to an employee by the City for services rendered to the City during 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, auto- mobile 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 participating in a City- sponsored deferred compensation plan shall have the amount 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. SECTION IX. RETIREMENT PENSIONS 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 per cent (2~} of his compensation base -10- ~a- A V ~i y _...~ ~ ~ ~ 4 ~.. ~ ~ y multiplied by his total credited service to date of actual retirement, payable on the first day of each month commencing with the month following the last month for which such member receives compensation from the City. B. Increase in Com ensation Base for Persons Receiving Benefits Prior to July 1, 1983. Effective July 1, 1983, all those previously receiving retirement benefits shall have their calculation for base pen- sion benefits adjusted to two per cent (2~) of their compen- sation 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. C. Cost of Living Adjustments Annually, effective January 1, 1984, 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 30th 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 pre- vious year, or by two per cent (2~), whichever is smaller; pro- vided that in no event shall any retired member's pension or any survivor's benefits be reduced below the base pension. SECTION X. DISABILITY PENSIONS A. Definition of Total and Permanent Disabilit A member is totally and permanently disabled by bodily in- jury, disease or mental illness when he is completely incapaci- tated for life from performing the usual and customary duties and tasks of the particular trade, profession or occupation for which he has been employed by the City; provided, however, that no physical condition existing at the time of entry into the Fund shall be a basis for disability retirement prior to vest- ing. -11- i. ~ J ~ !_ ~ i' i' n ,~ + ~ r. ~ i_ i. ~. B. General Provisions C. 1. Such disability must exist for at least ninety (90) con- secutive 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 (includ- ing the United States Merchant Marine), any of its allies or any other foreign country; and 3. The Industrial Accident Board has rendered a determination under the provisions of Article 8306, R.C.S. of Texas, as amended, that the member is totally and permanently inca- pacitated and such determination has not been reversed or set aside on appeal by the courts. Qualification for Disability Pension 1. A member shall qualify for a disability pension as hereinafter provided only after he has been certified to be disabled, in accordance with the definition in Paragraph A, by a duly licensed and practicing physician appointed by the Administrator. Determination of the existence of disability shall be made after a ninety (90) day period from the date such disability is alleged to have commenced, and benefits shall not commence until the first day of the month following the month in which such ninety (90) day period ends. 2. The Board shall have the appointed physician conduct a medical examination prior to the end of the first two (2) years of disability retirement, again immediately prior to the end of the fifth year of such disability retirement, and at any other time when a change in the retiree's condition is brought to the Board's attention, in order to determine whether the disability is continuing. 3. Any disability payment shall be discontinued at any time upon proof that the member is not disabled as above defined. The Board's determination on all matters concerning -12- ., J ~i 3, • ~ r,, ~i ... t; . ~ ,~ ~ ~ ~. 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 more than fifteen (15) years younger than her husband, and (2) she has been legally married to him for at least one (1) year. A widow will cease to be an eligible dependent if she remarries after the death of the deceased male member. b. A married female member 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. A widower will cease to be an eligible dependent if he remarries after his wife's death. c. An unmarried member with a legitimate or legally adopted child or children may elect only such child or children as his dependent. A child qualifies as a dependent if he either is under age eighteen (18 ) or became totally and permanently disabled before age eighteen (18). If a child is more than fifteen (15) years younger than the member, the percentage of monthly pension payable to both parties will be com- puted by reducing sixty-eight per cent (68~) by one and four-tenths per cent (1.4~) for each year by which the age difference exceeds fifteen (15). Unless disabled, a child will cease to be an eligible depen- dent upon attainment of age eighteen (18), and in any event will cease to be an eligible dependent upon marriage. d. An unmarried member without a legitimate or legally adopted child or children may elect only his parent or parents as his dependent. A parent qualifies as a ~ dependent if he is either totally and permanently disabled or has reached age sixty-five (65). -16- ,' .. x D. E. the granting, refusing or revoking of a disability payment shall be final and conclusive on all parties, and no appeal can be made therefrom. 4. No disability benefit coverage shall be provided during a service break in excess of three (3) consecutive months un- less the service break was caused by sickness or accident lead- ing to total disability. 5. The disability benefit 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 exist- ing Civil Service Statutes. Disability from Bodily Injury in Line of Duty If a member becomes disabled while in line of duty, he shall receive an annual life pension, the amount of which shall be two per cent (2~) 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 paragraph, shall mean total and per- manent disablement caused by injury or disease sustained in the course of the operations usual to a member's employment, and shall include all operations necessary, incident or appurtenant thereto or connected therewith, whether such operations are conducted at the usual place of employment, or elsewhere, in connection with or in relation to his usual and customary em- ployment. Disability Not in Line of Duty If a member who is vested becomes totally and permanently disabled while not in line of duty, he shall receive a monthly life pension, the amount of which shall be two per cent (2%) of his compensation base multiplied by his total credited service to date. If a member becomes disabled not in line of duty before that member is vested, then Section XII shall apply. -13- ~~ i ~~ \. ~" (.. i. F. G. Recovery from Disability If a disabled member receiving disability benefits here- under is found to be no longer disabled upon examination, as provided in Paragraph C of this Section, the employee's dis- ability payments shall immediately cease. If such member is reemployed by the City immediately fol- lowing certification of recovery, his Fund membership shall be reinstated as of the date of such reemployment, 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 reemployed 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, over the total of disability payments made to him; provided, how- ever, that if such member had a vested interest in his pension credits as of the date on which he was certified totally dis- abled, he shall receive a pension from the later of the date of certification of recovery or attainment of age fifty-five (55 ) equal to the amount which would have been payable under the provisions of Section XII had he terminated his employment on the date his disability pension began. His death benefits thereafter shall be determined in accordance with Section XI. Report of Earned Income or Net Earnings from Self-Employment Any disabled member until the age of seventy-two (72) years who is receiving disability benefits under this section 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 employment. If the total of earned income, net earnings from self-employment, compensation deferred under a deferred compensation program and City disability retirement -14- • ~ i 1 ~ , ~ i. r .~ ~ ~ i~ !~ 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 overtime, acting, assignment, holiday, longevity, educational incentive, safety award, incen- tive, 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 return with all attachments thereto or submission of falsified documents. SECTION X1. DEATH BENEFITS A. Death Benefit for Members Retiring Before April 1, 1963 1. Joint and Survivor Option A member retiring or becoming disabled before April 1, 1963, may elect to have his pension reduced in accordance with the following table in order to secure for his eligible dependent, as herein defined, a continuing income after his death: Relative Age of Percentage of Basic Monthly Dependent to Member Pension Payable to Both Parties 15 years younger 68.0 14 years younger 69.4 13 years younger 70.8 12 years younger 72.2 11 years younger 73.6 10 years younger 75.0 9 years younger 76.4 8 years younger 77.8 7 years younger 79.2 6 years younger 80.6 5 years younger 82.0 4 years younger 83.4 3 years younger 84.8 2 years younger 86.2 1 year younger 87.6 Same age gg,0 1 year older 90.4 2 years older 91.g 3 years older 93.2 4 years older 94.6 5 or more years older 96.0 2. Definition of Eligible De endent An "eligible dependent," for purposes of the optional pension elections herein provided for, is defined as fol- lows: -15- ` .,. 1 , r ~, ~.1' ` ,. ,, ~. ,,, y. 3. Death Benefit Option An 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 annuity (subject to automatic cancellation upon remarriage) com- puted in accordance with the following table: Relative Age of Percentage of Basic Monthly D ~ endeht to Member Pension Payable to Dependent 15 years younger 43.5 14 years younger 44.0 13 years younger 44.5 12 years younger 45.0 11 years younger 45.5 10 years younger 46.0 9 years younger 46.5 8 years younger 47.0 7 years younger 47.5 6 years younger 48.0 5 years younger 48.5 4 years younger 49.0 3 years younger 49.5 2 years younger 50.0 1 year younger 53.0 Same age 56.0 1 year older 59.0 2 years older 62.0 3 years older 65.0 4 years older 68.0 5 or more years older 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 (43.5) by one-half per cent (0.5~) for each year by which the age difference exceeds fifteen (15). 4. General Provisions Election of a ,joint and Survivor Option under Paragraph A.1 hereof may be made, rescinded or changed by a member at any time prior to the date on which his pension is to commence. Election of a Death Benefit Option -17- r a "' ,~. t-. ~: ,F ~., under Paragraph A.3. must be made" by an eligible depen- dent within three (3) months following a member's death. Until such election is made, no death benefits shall be payable, and if the dependent fails to make an election before the expiration of the three (3) month period, his right to elect a life annuity shall be irrevocably waived and the death benefit provided for prior to the adoption of Ordinance No. 443D shall be paid. Optional pension and death benefit elections shall be made in writing on the form or forms specified by the Board. Proof of age and such other information as may be required for determining the amount of the optional benefit shall be furnished to the Board upon its request. If an eligible dependent dies before the date on which the member's pension under a Joint and Survivor Option is to commence, the election shall be of no effect, and the member shall be treated the same as though he had not elected an option. If an eligible dependent dies on or after the date on which a member's pension under a Joint and Survivor Option is to commence, the election shall continue in force, and the amount of the member's pension shall not be increased thereby. If a widow or widower receiving a pension under one of the foregoing options predeceases a legitimate or legally adopted child or children under age eighteen (18), such child or children will receive the pension until age eighteen (18). The .Board of Trustees of the Employees' Retirement Fund of the City of Fort Worth shall determine the dependency of children, and its determination in this connection shall be final and conclusive. B. Death Benefit for Active Members and Members Retiring After May 31, 1963 1. 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 _1$_ ,. ' ,, " J ,~ ,. ,. ~. a ,: seventy-five per cent (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), pro- vided, 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 per cent (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 payable 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 mem- ber's accrued pension projected to earliest retirement date, whichever is greater. In the event there are depen- dent children who are entitled to receive Sixty-Five Dollars ($65.00) per month hereunder, and in the event the total payments to the dependent children and widow or wid- ower would exceed the combined maximum monthly pension payable, then and in that event the pension of the widow or widower shall be reduced so that the sum of the Sixty- Five Dollars ($65.00) monthly payment to each dependent child shall not exceed the combined maximum monthly pen- sion 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 per cent (75~) -19- s r- ,. e ~ ~. :. . ~? ~ '~ C i. L ~• ~~ r ~:~ ~ 1 l ~ ~ i. of the member's accrued monthly pension projected to earl- iest 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 par- ents, such dependent parents or the surviving dependent parent shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per cent (75~) of the member's accrued pension projected to earliest retire- ment date, but not less than Two Hundred Fifty Dollars ($250.00). 2. While Not in Line of Duty 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 per cent (75~) of the member's accrued pension but not less than One Hundred Fifty Dollars ($150.00). In the event that a member was not vested on the date of his death, the surviving widow or widower shall be entitled to the return of all monies which the member paid into the Fund during his life plus regular interest thereon. 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 pension, based on the number of years of credited service that would have accrued had the member lived to his earliest retirement date, but not more than One Hundred Fifty Dollars ($150.00) or the member's accrued pension, whichever is greater. The combined maxi- -20- ,. t. .r, ti• ~ ~ r mum monthly pension payable to a surviving widow or widower and one or more children eligible to receive a benefit hereunder shall be either One Hundred Fifty Dollars ($150.00) or the member's accrued pension, which- ever is greater. In the event 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), and in the event the total of payments to the dependent children and the widow or widower would exceed the member's accrued pension, then and in that event the pension of the widow or widower shall be reduced so that the sum of the monthly payment under said pension and the monthly payment of Sixty-Five Dollars ($65.00) to each dependent child shall not exceed the member's accrued pension; provided that in no event shall the pension of the widow or widower be reduced to less than Ninety Dollars ($90.00) per month. In the event that, after the reduction of the pension of the widow or widower as here- inabove 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 $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 bene- fit 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 pay- ment 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 per cent (75~) of the member's accrued pension. -21- ,- ~~ ,~ _ ~. ,~ ~~ ,. ~,,, .. „. ` iy In the event the maximum monthly pension payable is $150.00, the pension of the widow or widower shall be $90.00 and the balance shall be divided equally among the eligible dependent children. When the last eligible depen- dent child either attains the age of eighteen (1$) years, dies or marries, said balance shall be added to the pen- sion of the widow or widower. If a vested member who dies before retirement but not 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 per cent (75~) of the member's accrued pen- sion, but not less than One Hundred Fifty Dollars ($150.00). 3. 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 per cent (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 prior to the member's retirement. Each dependent child of such deceased 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 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 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 -22- ,` ~ ~ ,_ .:, r eligible to receive a benefit hereunder shall be an amount not to exceed the pension being paid to the member at his death. 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 per cent (75~) of the pension being paid to the member at his death. 4. After Vested Termination If a terminated member entitled to a pension under the provisions of Section XII dies before his pension com- mences, his estate shall receive an amount equal to his total contributions to the Fund, plus regular interest; provided, however, that if he were eligible for retirement on the date as of which his employment terminated, his eligible dependents shall receive the benefit specified under Paragraph B.3 of this section, based on the pension to which he would have been entitled as of the date of his death. If such terminated member dies after his pension com= mences, his eligible dependents shall receive the benefit specified under Paragraph B.3. of this section. 5. General Provisions If a deceased member leaves no widow, widower, chil- dren or dependent parents eligible to receive a benefit hereunder, his total contributions, plus regular interest less any amount previously paid to him because of disabil- ity, shall be paid to his estate. Payments to a child shall be made whether or not a widow survives and shall continue after the death of a widow, but shall cease upon the earliest of such child's death, marriage or attainment of age eighteen (18). Pay- ments to a widow, widower or parent shall cease upon the earlier of such person's death or marriage. After all pay- -23- n ' I ' t: r a; ' ments cease, any excess of the member's total contribu- tions, plus regular interest at date of death over dis- ability and/or death benefits paid shall be paid to his estate. Death benefit coverage during service breaks in ex- 1 cess 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 XII. TERMINATION BENEFITS AND VESTING 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 of Five and One-Fourth per cent (5-1/4$) per annum, compounded annual- ly, less Twenty-Five Dollars ($25.00). In cases where the position held by the member has been abolished, the Twenty-Five Dollar ($25.00) charge shall not be deducted. No additional assessment shall be made against employees whose contribution refund does not equal Twenty-Five Dollars ($25.00). A member who resigns or is terminated after vesting shall be entitled to receive a vested right of one hundred per cent (100$) of the amount of pension earned to date of termination, payable in full at age sixty-five (65), or age sixty (60) if a female whose latest employment date was prior to October 1, 1971, or in reduced amount commencing at age fifty-five (55), said reduction to be five- -24- 1 ~~ ` .~ ti - :1 ~ +, ~ , 1. ' twelfths per cent (5/12) for each month by which commencement of the pension antedates age sixty-five (65), or age sixty (b0) if female whose latest employment date was prior to October 1, 1971. Any terminating member with a vested right may elect to receive a refund of his contributions, plus regular interest, 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. SECTION XIII PAYMENT OF BENEFITS The Treasurer of the City of Fort Worth shall be the ex officio non-voting Treasurer of the Fund and shall: a. Act as official custodian of the cash and securities ,belonging to the Fund and provide adequate safe de- posit facilities for the preservation of such secur- ities subject to the order of the Board; b . Receive al l items of cash belonging to the Fund, in- cluding contributions of members, collect the inter- est on and the principal of all securities belonging to the Fund as such interest and principal become due and payable, deposit all such amounts in a special trust fund for the account of the Fund and submit a monthly report to the Fund of all such transactions; and c. Make payments for purposes specified in this ordi- nance in accordance with vouchers submitted pursuant to authorization of the Administrator. The Treasurer shall have the same responsibility for assets of the Fund in his possession as for funds of the City under his control, and all assets of the Fund shall be completely segregated and ear- marked as belonging to the Fund. Benefits granted hereunder shall become payable only on or after the date of each individual employee's acceptance as a Fund member. Except for the adjusted retirement benefits granted under Ordinance No. 2999 to members who retired between January 1, 1946, and October 1 , 1952, nothing herein contained shall be construed to authorize any benefit payments or adjustments of any kind to members of the Fund, employees of the City, or beneficiaries thereof on .account of any death, retirement, disability or termination which occurred prior to the date of this ordinance. -25- ,. ~~ 4 r. ~ ~ .,L' ~~ ~F i. r ~! F a In any case, under the terms of this ordinance, where benefits are payable to a child and the Board determines that such child is unable or lacks the proper discretion to handle the benefits, the Board may direct such benefits to be paid to the child's natural or legal guardian, who shall expend such benefits for the best interest of the child. SECTION XIV. ACCOUNTS TO BE MAINTAINED i The assets of the Retirement Fund shall consist of two (2) sep- arate unallocated accounts as follows: a. 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 receipt by the City Treasurer of the Administrator's authorization as provided in Section XVI. b. A Retirement Reserve Account to consist of annual trans- fers 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 Administrator in accordance with Section XVI. SECTION XV. ANNUAL ACTUARIAL VALUATIONS The Board shall retain an actuary for the purpose of providing annual valuations of the Retirement Fund, properly certified to the Board. The Actuary shall be appointed by the City Council upon rec- ommendation by the Board. The actuarial tables used by the Actuary shall assume such interest, mortality, turnover and other rates as the Actuary, with, Board approval, shall from time to time approve. Section XVI 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 nine (9) trustees designated as Place 1, Place 2, Place 3, Place 4, Place 5, Place 6, -26- ,. ;~ .¢~ . ~, , ;. s' ~~• ., Q ,. k Place ?, Place 8 and Place 9, respectively. Except for the initial terms of trustees appointed by the City Council as defined in this section, each trustee shall serve for a term of two (2} years. Trustees shall be selected as follows: 1. Trustees Elected by Employees: Five (5) trustees who are members of the Fund shall be elected by the employees of the City who are also members of the Fund, and said five (5) trustees shall serve in Places 1, 3, 5, 7 and 9, respectively. Only those employees who are members of the Fund shall be eligible to vote in the Board of Trustees election. Each of the trustees shall be elected by one of the five (5) 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 wark 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 5. The trustee for Place 5 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, Data Processing and Human Resources Departments of the City. Only -27- .e afp'~, i~ ~f 1 ' ~f, f A ~t, 1.. .~ Y" _ J • "1.. ~ ~ .tr .~ ~ I ~'',3 ~ .M ~ ± I. 1 members of the Fund who qualify for Employee Group C shall be eligible to vote for a nominee for Place 5. Only members of the r^und who qualify for Employee Group C shall be eligible to serve on Place 5 of the Board. Place 7. The trustee for Place 7 shall be elected by Employee Group D which shall consist of those members 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 quali- fy 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. No later than June 1 of each odd numbered year, the City Council shall determine as nearly as practicable the number of employees in each department of the City, and by amendment to this section redefine the composition of any or all of the five (5) employee groups as it deems necessary to maintain a sub- stantial equality of employees in each group. The reapportion- ment or redefining of employment groups shall have no effect on the qualification or eligibility of employee trustees to serve the remainder of their then current terms. a) Term. In accordance with the nomination and election procedures prescribed herein, trustees shall be -28- .c 1.: s- ,, .. ,: ~ ~ r e' .~y, ~' ~ ` e: ~ 4 elected to Places 1, 3, 5, 7 and 9, and shall serve for a two (2) year term commencing on the first day of October, 1983. Thereafter, 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 employment status of any elected trustee change so that said trustee is no longer a member of the employee group from which he or she was elected, then said trustee shall automat- ically forfeit the office of trustee. Should a vacan- cy 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 whose glace has been vacated, which qualified em- ployee 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 year, the Retirement Administrator 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 Retirement Administrator prior to July 15 of said election year. Each returned petition shall identify the employee group of which the nomi- nee is a member and designate for which place on the Board of Trustees he or she 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 seventy-five members of the employee group -29- s ~'~ ~. ,, ,.~ ~ .. ,ti ,, ,, '~° d ~° ,. who are qualified to vote for said place on the date said petition is submitted to the Retirement Administrator. Only those employees who are members of the Fund shall be entitled to have his or her name placed upon the official ballot as a nominee. No person's name shall be placed upon the official ballot as 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 un- less that person is a member of Employee Group E. c) Method of Electing Employee Trustees. The Retirement Administrator shall prepare an official ballot for each place, listing in alphabetical order according to surname the nominees for election to that place. 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 pay-day 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 for 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 Retirement Administrator no later than ten (10) -30- ~ 1: ~ .. f < c r. . ,~ ~+ ar.~,.. days after the first payday in August, at which time the Retirement Administrator 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 Retirement Administrator shall submit the results 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 no nominee receives a majority of the votes cast for any one place, or if there is a tie for any one place, then a run-off election shall be held on the first pay-day 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 pre- scribed 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 Retirement Administrator no later than ten (10~ days after the first pay-day in September, at which time the Retirement Administrator -31- ~,t ~ f • ~ ~ A ~ -1 . -w .t. J. ''•.T.,a a .. is !~ 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 elec- tion, the candidates who tie shall cast lots in the presence of the Retirement Administrator 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 Retirement Administrator 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 elec- tion 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 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. 2. Trustees .Appointed by the City Council. Four (4) trustees shall be appointed by the City Council to serve in Places 2, 4, 6 and 8. The term of the initial appointees shall be for one (1) year, commencing on October 1, 1983, and ending on September 30, 1984. Thereafter, the term of appointees for Places 2, 4, 6 and 8 shall be for two (2) years commencing on October 1 of every even numbered year. Should a vacancy occur in Place 2, 4, 6 or 8 during the term thereof, then a majority of the City Council -32- fi~ ~ "~ 'r r .,i--1. ... :r ! a L>.. ~ ,, - y i shall appoint a qualified person to serve the unexpired' term of the place so vacated. B. General Provisions 1. It is the purpose of this Ordinance that the terms of the members of the Board be so regulated that the Board shall not consist entirely of newly elected or appointed members at any one time. 2. The members of the Board shall remain in office until their successors are duly elected or appointed. 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 Board shall elect its own chairman, who shall have the power to call a meeting at any time necessary in order to carry out the business of the Board. 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 all members remaining on the Board. 5. The Board shall have full power to make any and all rules and regulations 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 full power, at its sole discretion, to invest and reinvest the assets of the Fund, including undistributed income. In acquir- ing, 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 intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable -33- ~~~. )' . ~ ~1. iL l i ~ 4 ~ .• ~"` 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 prop- erty, real, personal or mixed, and every kind of investment, specifically including but not by way of limitation, bonds, debentures and other corporate obligations, and stocks, pre- ferred or common, which persons of ordinary prudence, discre- tion and intelligence acquire or retain for their own account; provided that no securities of any one corporation shall ever be purchased if such purchase would result in the total secur- ~~-- ities of such corporation held by the Fund having a value in excess of five per cent (5~) of the total value of the Fund, nor shall more than five per cent (5~) of the outstanding securities of any one corporation ever be purchased for or re- tained as an asset of the Fund. 7. The Board is specifically prohibited from purchasing bonds, warrants, obligations or securities of the City of Fort Worth for the Fund. The provisions of the Texas Trust Code are expressly incorporated in this ordinance by reference the same as if set out herein verbatim. 8. In administering the Fund, the decisions of the Board shall be final and conclusive. The Administrator shall make available to the Board all information and records pertaining to the Fund requested by the Board in the form specified by the Board. C. Administrator The Administrator, who shall supervise the administrative affairs of the Fund, shall be appointed by the City Manager, subject to the approval of the Board of Trustees. The number of personnel required to assist the Administrator in carrying out his work shall be included by the City Manager in his annual budget recommendations. The duties of the Administrator shall include, but not necessarily be limited to, the following: 1. Maintaining all records necessary in the administra- tion of the Fund and the disbursement of benefits therefrom; 2. Determining eligibility for benefit payments; -34- ~, .. ., .~ ~ _ ,i . ~. ~. ~ ; .f` wry. ,~~ 3. Computing benefits payable; 4. Authorizing the City Treasurer to disburse benefits; and 5. Advising members annually of their standing in the Fund with respect to benefits thereunder. 6. Conducting the election of employees to the Board of Trustees, including but not limited to, the way and manner of holding the election, the personnel and officers who are to hold same, and all details con- nected with holding the election. D. Administrative Expenses 1. Personnel, supplies and capital outlay expenses of the Board and of the Administrator necessary for the administration of the Fund shall be paid from the Retirement Administration budget appropriation of the General Fund and must be recom- mended by the City Manager and approved by the City Council. However, no provision of this ordinance shall preclude the Retirement Fund from voluntarily reimbursing the General Fund for all actual administrative expenses or a portion thereof upon a majority vote approval by the Board of Trustees where an actuary determines that such action is sound. 2. Consultant expenses, consisting of but not limited to, fees for investment management, actuarial services, funds evaluation and brokers' fees and commissions, necessary for the operation of the Fund, shall be paid from the Retirement Fund upon approval by the Board of Trustees. SECTION XVII. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS The City shall never be held liable or responsible for any claim or asserted claim for benefits under the provisions of this ordinance, but all claims shall be paid from the funds for which provision has been specifically made herein. 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 pro- cess 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 persons entitled to the bene- -35- .~ .y ~ i . ... ,i . y r. r f t • KC y > > 4 fits of this Fund, nor shall said 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 nothing herein 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. E SECTION XVIII. AMENDMENT OF ORDINANCE With the exception of the sections relating to contributions to the Fund by members and by the City, the City Council, consistent with the Constitution and laws of the State 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 ordinance without submit- ting such amendment or amendments at an election of the qualified voters thereof entitled to vote on the question of the issuance of tax-supported bonds. SECTION XIX. 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 XX. 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, 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 ordi- nance that any portion of said ordinance was invalid, it would not have adopted such invalid part. -36- ••. rwz.~-~~w ~~ do ~~ -'i~ r, ~ ~~~~ •. ~ • a ;~~ 2 ~ ~`' :5 ` r. :~ ' SECTION XXI. PREREQUISITES TO ORDINANCE The City Council finds that all acts, conditions and things re- quired 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. SECTION XXII. LIMITATION OF LEGAL RIGHTS By reason of the expansion 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 total disability sustained in line of duty, as heretofore defined; and by virtue of becoming a member he or she 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 in lieu of such right to sue for damages in a court of competent jurisdic- tion. SECTION XXIII LIMITED RETROACTIVITY OF BENEFITS The following changes in benefits shall be applied retroactive- ly to those persons already receiving benefits as of the date of this ordinance, which changes shall be imposed upon only those bene- fits payable after the effective date of this ordinance: (1) in- creased compensation base for persons receiving benefits prior to July 1, 1983, as set forth in Section IX, B.; (2) increased death benefits to qualified spouses and dependent children as set forth in Section XI; and (3) increased disability benefits as set forth in Section X, D. and E. It is the express intention of the City Council of the City of Fort Worth that all other increased retirement bene- fits herein provided for, and which are not listed in the foregoing -37- r .~' .. '"~' M: r r. . ~ ~ ,~ ~ ~ r;. x,~ v: e ~ „, ~ ' w, ~r. ,~. sentence, shall not be given retroactive effect and shall apply solely to members retiring on or after the effective date of this ordinance. SECTION XXIV. 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 XXV. EFFECTIVE DATE This ordinance shall be in full force and effect from and after the date of its adopt~~ and it is s ordain d. ~ Adopted this~~ day ~ of A.D. 19 ATTEST: City Secretary of the City of Fort Worth, Texas APPROVED AS TO FORM AND LEGALITY: City Attorney of the City of Fort Worth, Texas Date: t l' ~ _ g Mayor of the City of Fort Worth, Texas -38- i 'r ~,. ~ ~. ~w~_f~'.fil'' ~ .1 r ra ,~~ gip.. ~St~i M ~ r r ~~ry i~-iYi . ~~ i RETIREMENT ORDINANCE INDEX SECTION DESCRIPTION PAGE I. ACKNOWLEDGMENT OF CREATION OF THE FUND 1 II. DEFINITIONS 3 III. MEMBERSHIP IN THE FUND 6 IV. MEMBERS' CONTRIBUTIONS 6 V. CITY'S CONTRIBUTIONS ~ VI. CREDITED SERVICE A. Service Breaks 7 B. Accumulated Sick Leave 9 VII. RETIREMENT DATES 10 VIII. COMPENSATION BASE FOR DETERMINING BENEFITS 10 IX. RETIREMENT PENSIONS A. Pension Commencing Upon Retirement 10 B. Increase in Compensation Base for Persons Receiving Benefits Prior to July 1, 1983 11 C. Cost of Living Adjustments 11 X. DISABILITY PENSIONS A. Definition of Total and Permanent Disability 11 B. General Provisions 12 C. Qualification for Disability Pension 12 D. Disability from Bodily Injury in Line of Duty 13 E. Disability Not in Line of Duty 13 F. Recovery from Disability 14 G. Report of Earned Income or Net Earnings from Self-Employment 14 XI. DEATH BENEFITS A. Death Benefit for Members Retiring Before April 1, 1963 1. Joint and Survivor Option 15 2. Definition of Eligible Dependent 15 3. Death Benefit Option 17 4. General Provisions 17 B. Death Benefit for Active Members and Members Retiring After May 31, 1963 1. While in Line of Duty 18 2. While Not in Line of Duty 20 3. After Retirement 22 4. After Vested Termination 23 5. General Provisions 23 XII. TERMINATION BENEFITS AND VESTING 24 XIII. PAYMENT OF BENEFITS 25 XIV. ACCOUNTS TO BE MAINTAINED 26 XV. ANNUAL ACTUARIAL VALUATIONS 26 XVI. ADMINISTRATION A. Board of Trustees 26 B. General Provisions 33 C. Administrator 34 D. Administrative Expenses 35 XVII. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS 3S XVIII. AMENDMENT OF ORDINANCE 36 -.. i, -~ _- _- -.. - __T aft ~ •'.1 ? F Y • . 1 ~ ~ , .p.~ ,1 XIX. CONTROLLING POWER OF ORDINANCE 36 XX. VALIDITY OF ORDINANCE 36 XXI. PREREQUISITES TO ORDINANCE 37 XXII. LIMITATION OF LEGAL RIGHTS 37 XXIII. LIMITED RETROACTIVITY OF BENEFITS 37 XXIV. ENGROSSMENT AND ENROLLMENT 38 XXV. EFFECTIVE DATE 38 JMA81'ER FILE. 1 ~` QiTY+~ER. l ~~,ty lof ~®rt ~®~°th, ~~.~oca~ ACCOUNTING 2 TiiANpFDRTATION~PUBLIC WOR~~ n®~ /rn_~i1 Y 1, .~~ n.~/r~l/ ~~~~~ /~.~~~/~ lI ~®~ PCI7SgNNEt,.i •••/// 111IIL.1//~~C sa.!/~/ ~w 1L-1Y ~1./ ~VW ~L/ !V ~~~~1JJJ ~6/W a~WIL+ ~~'~~G~'i- DATE REFERENCE SUBJECT ! PAGE NUMBER 11/6/84 G-6155 Revised Retirement Ordinance 1 of 2 Background Approximately three years ago various City Council members, the Retirement Fund Board of Trustees and City staff developed a general plan for making revisions to the City pension program to benefit both current and retired employees. Major accomplishments which have been implemented to date are: 1. Revisions to the Retirement Ordinance adopted June 7, 1983; 2. Diversification of the investment program; and 3. Selection of new actuarial consultants and revision of actuarial assumptions. The revisions to the Retirement Ordinance on June 6, 1983, reflected those changes which were determined to be the highest priority of current and .retired members. Other revisions with high, but less urgent, priority were postponed by mutual agreement until the actuarial condition of the Fund would indicate that additional improvements would: (1) have no immediate negative impact on the actuarial soundness of the Fund; and (2) require no additional contributions from the City or employees. The most recent actuarial valuation of the Fund, dated January 1, 1984, shave that the condition of the Fund would allow consideration of the next priority level of changes. The revised ordinance contains these changes as well as a number of other changes proposed for the purpose of clarification and improved administration. The priority changes are as follaws:~ 1. Change eligibility for normal retirement to the "Rule of 80." The Rule of 80 would allow a member to retire and receive his/'her normal retirement benefit, whenever the total of age plus credited service equals 80. This would provide normal retirement benefits, for example, to persons age 50 with 30 years of service, age 55 with 25 years of service and age 60 with 20 years of service. 2. Change provision for disability retirement to require that the employee only be disabled from his occupation for which he has been employed by the City rather than from any employment with an allowance for the disabled retiree~to earn other income, which when added to his disability retirement benefit, does not exceed his annualized base hourly rate of pay at the time disability status was granted. ~'" .$ `;~ _-~~ DP,TE REFERENCE NUMBER SUBJECT Revised Retirement Ordinance PAGE 11/6/84 G-6155 2 of 2 3. Change provision for payment of administrative expenses to provide for the IZoard of Trustees to voluntarily authorize reimbursement to the City for General F1,ind expenses related to the Retirement Fund. Recor>~endation It is recaT>rnended that the City Council adopt the attached revised ordinance concerning the IITployee's Retirement Fund of the City of Port Worth. A.7B : J ~I~i 1 ~A~PRO1fE~ g~j~~ C~~~ CC~~~~Cf~. +kJ I Vt/i ~ lG~l~~p a ~ ~~~ -- V C.itp Secretary of the Cltp of ~o~ _W,p>41r6, ~iSS~i ~~ SUBMITTED FOR THE ~~ CITY MANAGER'S /C///_ OFFICE 6Y )~L DISPOSITION BY COUNCIL: PROCESSED BY (/ ..- ^ APPROVED ORIGINATING ~_-I OTHER (DESCRIBE) DEPARTMENT HEAD• A. Judson Bailiff CITY SECRETARY FOR ADDITIONAL INFORMATION CONTACT ted Ordinance Na. d A J o DATE `~?~. ~~'~ ~ ~,. w