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HomeMy WebLinkAboutOrdinance 9054,:~ - , ORDINANCE NO . ~O ~ ~~ AN ORDINANCE ESTABLISHING A FUND FROM WHICH LUMP SUM PAY- MENTS SHALL BE MADE UPON THE DEATH OF RETIRED MEMBERS OF THE EMPLOYEES' RETIREMENT FUND OF THE CITY OF FORT WORTH; PROVIDING FOR APPROPRIATIONS; PROVIDING FOR THE CONDITIONS UNDER WHICH PAYMENTS SHALL BE MADE; PROVIDING FOR THE ADMINISTRATION OF SUCH FUND; MAKING THIS ORDINANCE CUMU- LATIVE; REPEALING ORDINANCE NO. 6235; PROVIDING A SEVERA- BILITY CLAUSE; PROVIDING FOR THE ENGROSSMENT AND ENROLLMENT OF THIS ORDINANCE; AND DECLARING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. Ordinance No. 6235, as adopted by the City Council of the City of Fort Worth on January 26, 1970, created and established a fund designated as the Retired Employees Group Death Benefit Fund from which lump sum payments are made upon the death of retired members of the Employees' Retirement Fund of the City of Fort Worth, Texas. That fund is still in existence and shall continue operation as herein set forth. SECTION 2. The City shall continue to annually appropriate to the Retired Employees Death Benefit Fund such amount or amounts as may be neces- ` sary to provide the lump sum payments hereinafter set forth in Section 3 of this ordinance and to maintain the Retired Employees Death Benefit Fund in an actuarially sound condition. Such appropri- ations shall continue to be made from current revenues, and, in the event such current revenues are insufficient, the City shall com- pute, ascertain and levy an ad valorem tax sufficient to raise and produce the money required to appropriate and pay any additional sums which may become due during any such year. The City shall levy a sufficient tax from year to year to provide the revenue from which such appropriations may be made. SECTION 3. When a member of the Employees' Retirement Fund of the City of Fort Worth dies subsequent to retirement from active employment with `~ r 4 ... the City of Fort Worth, the surviving widow or widower shall be entitled to receive a lump sum payment (in addition to benefits pro- vided under the Retirement Ordinance) of $3,000.00 if such member was covered immediately preceding retirement for a period of not less than five consecutive years under the City's Group Life Insurance Plan. If the deceased member leaves no surviving widow or widower entitled to survivor's benefits under the provisions of the Retirement Ordinance of the City of Fort Worth and was covered immediately preceding retirement for a period of not less than five consecutive years under the City's Group Life Insurance Plan, then, in that event, a lump sum payment of $3,000.00 shall be made to the estate of the deceased member. The lump sum payment herein provided shall be made in lieu of any payments to which the survivors or estate of the deceased member would have been entitled under the City's Group Life Insurance Plan during the member's period of active employment with the City. SECTION 4. The Administrator of the Employees' Retirement Fund of the City of Fort Worth shall be charged with the duty of making the lump sum payments herein provided for, and such payments shall be made solely from funds appropriated by the City Council for such purpose. The Administrator shall maintain such records as may be necessary in the administration of this Ordinance. The Administrator shall maintain a special accounting of the funds heretofore and hereby appropriated, and the Administrator shall not make any payments authorized here- under from funds contributed by the employees or the City under the provisions of the Retirement Ordinance of the City of Fort Worth or from the earnings on such contributions. SECTION 5. The Board of Trustees of the Employees' Retirement Fund of the City of Fort Worth shall act on behalf of the City Council of the -2- ~, ~ _! a ! ~ f City of Fort Worth as trustees of the Fund under the same provi- sions, regulations and procedures as provided in Retirement Ordinance of the City for the investment of funds of the Employees' Retirement Fund of the City of Fort Worth, and records of the Fund hereby created and all earnings. on the assets of such Fund shall be maintained separate and apart from assets and earnings of the Employees' Retirement Fund of the City of Fort Worth. SECTION 6. This Ordinance shall be cumulative of all provisions of ordi- nances and of the Code of the City of Fort Worth, Texas (1964), as amended, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 7. Ordinance No. 6235 was adopted by the City Council of the City of Fort Worth on January 26, 1970, and is hereby repealed. SECTION 8. If any provision, section, part, subsection, sentence, clause, phrase or paragraph be declared invalid or unconstitutional, the same shall not affect any other portion or provision hereof, and all other provisions shall remain valid and unaffected by any invalid portion, if any, and the City Council now says that if it had known at the time of passage that any portion of said .ordinance was in- valid, it would not have adopted such invalid part. SECTION 9. 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 in the minutes of the City Council and by filing the Ordinance in the ordinance records of the City. -3- .. z ` . y ~ ~ • ~~ .. .. . ~~ • * ~ ` SECTION 10. This Ordinance shall be in full force and effect from and after its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: ~~ City Attorney Date: ~2- ~ '~3 ADOPTED: c~ - oc(~ " 8 EFFECTIVE: -4- ti1ASiER FIlE~1~ // pity ®f' JF~r~ d~®~°~h, ~e.~a~ CITY MgrygGER l; f ACCOUNTING.p ~1\~Il ~/~) 11®~ ~.W~1-~1p ~// (' ®~1! 1- ~1ylj ,f1~D // ~®~'~I ~yN•11 ~1 1- ~~1j if1i17j'~/-rll ®7y11 'iRANSpORTAT1ON~pUBLPC WORKS+i ~111....A~~ llL// l~L•/J/ 0 ILILIV ~1J !!/1L 0 ((/Il/ (L((i ~./ 0 0 l4~ 0 U l{~ (Lill/ ({ill/IUL (L ((~ /! l[~ FINANCE.1. U ,E ~ ., .~ DATE REFERENCE SUBJECT Retired Employees Death PAGE 3/20/84 NUMBER **G- 5943 Benefits Ordinance l_ ~ of~.___ Background On January 26, 1970 (M&C G-1498), the City Council adopted Ordinance No. 6235 This ordinance established the Retired Employees Group Death Benefit Fund to make lump sum payments upon the death of retired members of the Employees Retirement Fund. Such payments are made to the surviving widow or widower; otherwise, the payment is made to the deceased member's estate The current ordinance provides for payments of $1,000, $2,000 or $3,000 dependent upon the level of life insurance which the retiree had as an employee under the City's group insurance plan This provision parallels the insurance plan in 1970 which provided for three levels of life insurance coverage based on salary Recognizing that under the present group insurance plan all employees have $10,000 of life insurance coverage, the Board of Trustees of the Employees Retirement Fund has requested that the Retired Employees Death Benefits Ordinance be amended to provide that all retirees be eligible for the same lump sum death benefit payment in the amount of $3,000. Fiscal Impact The Ordinance provides that the City Council will annually appropriate to the Death Benefits Fund such amounts as necessary to provide the lump sum payments and to maintain the Fund in an actuarially sound condition From 1969-1970 through 1982-83, the Council appropriated $75,000 annually In preparing the 1983-84 budget, the staff performed a financial analysis of the Fund The conclusion from this analysis was that the present interest earnings on the principal in the Fund was sufficient to provide for the average death benefits being paid No additional appropriation was required for the 1983-84 year, nor should any future appropriate be required unless interest rates drop significant7. or annual retiree deaths increase considerably An actuarial review of the Fund will be done in the current year to provide a more definitive analysis of th+~ future requirements Recommendation It is recommended by the staff and the Board of Trustees of the Employees Retirement Fund that the attached ordinance be adopted providing for a single $3,000 lump sum payment to the surviving spouse or estate of all deceased retired employees. APPROVED B1~ CITY COUNCIL MCM : j c Attachment ~~~ ~© 1984 ~~ SUBMITTED FOR THE ///~~) , ~ ~ _Jf GER'S ~ IIFF C A ' °'--^-~- DISP~LT_IQe ~~Y COU1~ i~e ~ PROCESSED BV C ~ / I E BY (~ ORIGINATING L1dSOn Bailiff r OTHER (DES~`CRIB ) DEPARTMENT HEAD: _ CITY SECRErARt FOR ADDITIONAL INFORMATION AD NT B iliff E t 8185 J d PTED ORDNANCE NO CO ACT son u a x DAY