HomeMy WebLinkAboutResolution 4947-06-2018 A Resolution
NO. 4947-06-2018
TO NOTIFY THE BOARD OF TRUSTEES OF THE EMPLOYEES'RETIREMENT
FUND OF THE CITY OF FORT WORTH THAT THE FORT WORTH CITY
COUNCIL INTENDS TO CONSIDER AND VOTE ON AMENDMENTS TO THE
RETIREMENT ORDINANCE
WHEREAS, Article 62431 of the Texas Revised Civil Statutes applies to the Employees' Retirement
Fund of the City of Fort Worth("the Fund");and
WHEREAS, Section 4.03 of Article 62431 of the Texas Revised Civil Statutes requires the City Council
to notify the Board of Trustees of the Fund ("Board") of the City Council's intent to consider and vote
on any amendment to the administrative rules governing the Fund that would reduce a benefit provided
by the retirement system; and
WHEREAS, the City currently allows certain accumulated sick and major medical balances to be
converted to service credit in calculating a member's pension;and
WHEREAS, the City controls, within Constitutional constraints and as may be limited by collective
bargaining or meet and confer agreements, the retirement benefits that are offered to employees;and
WHEREAS, the Board has the legal authority over the investment strategy and management oversight
of the contributions once remitted to the Fund;and
WHEREAS, the City has previously made changes to the Retirement ordinance in 2011, 2012 and
2014; and
WHEREAS, the City previously adopted a 2% guaranteed cost of living adjustment(COLA) for certain.
employees that resulted in an increase in the liability of the Fund;and
WHEREAS, the Fund has not consistently met its assumed rate of return in recent years, which has led
to an increase in the liability of the Fund;and
WHEREAS, the Fund has had more than three consecutive actuarial valuations that indicate an
amortization period of greater than 40 years;and
WHEREAS, State law requires a governmental entity to submit a Funding Soundness Restoration Plan
(FSRP) when the Fund has had three consecutive valuations with an amortization period of greater than
40 years; and
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WHEREAS, the FSRP requires that the plan reduces the amortization period to below 40 years within
10 years; and
WHEREAS,additional reductions are necessary to comply with the FSRP;and
WHEREAS,retirees are living longer and receiving pension payments for longer periods of time,making
it appropriate to consider delaying the age at which members may begin receiving a pension; and
WHEREAS, on October 24, 2017, City Council adopted Ordinance No. 22977-10-2017, modifying the
calculation of the interest rate for refunds on contributions to the Fund;and
WHEREAS, On December 12, 2017, City Council adopted Ordinance No. 23034-12-2017, modifying
the calculation of the interest rate for the purchase of prior credited service;and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
That this Resolution serve as Notification to the Board of Trustees of the Employees' Retirement Fund
of the City of Fort Worth that the Fort Worth City Council intends to consider and vote on one or more
amendments to the Retirement Ordinance, at a meeting to be held on or after the 90th day after the
adoption of this Resolution:
1. To reduce or eliminate future accruals of Cost of Living Adjustments (ad hoc and 2%)
for all Participating Retirees, Participating Members,Vested Terminated Members and
for all Beneficiaries;
2. To eliminate future accumulated sick leave and major medical leave from the
calculation of credited service for leave accumulated;
3. To increase minimum retirement age upon which both current and future members
become eligible to draw a pension; and
4. To extend the Rule of 80 upon which both current and future members become eligible
to draw a pension.
Adopted this 12th day of June, 2018. FORTS
ATTEST: O�
B y: - filS
------Mary J. Kayserets y
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