HomeMy WebLinkAboutOrdinance 20008-12-2011ORDINANCE NO. 20008-12-2011
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE VI, DIVISION 1, ENTITLED
"EMPLOYEES RETIREMENT FUND," OF THE CODE OF THE CITY OF FORT
WORTH (1986), AS AMENDED, AMENDING SECTION 2-201 TO DELETE
DEFINITIONS FOR TRUST AGREEMENT, TRUSTEE, AND VESTED TERMINATION
DATE, TO ADD DEFINITIONS FOR LINE OF DUTY AND VESTED RETIREMENT
DATE, TO SUBSTITUTE NEW DEFINITIONS FOR ALTERNATIVE PENSION
BENEFIT, BASE PENSION, CREDITED SERVICE, EXECUTIVE DIRECTOR, DROP
ACCOUNT, EARNINGS, NORMAL RETIREMENT DATE AND VESTED
TERMINATION PENSION; AMENDING SECTION 2-202 TO DELETE REFERENCE
TO DISABILITY AND TO ADD THE PROCEDURE FOR DETERMINING BENEFITS
FOR EMPLOYEES WHO TERMINATE AND RETURN TO SERVICE; AMENDING
SECTION 2-205 TO ADD PROCEDURES FOR THE CASH BALANCE ACCOUNT;
AMENDING SECTION 2-207 TO CLARIFY SECTION REFERENCES AND TO ADD
PROCEDURES FOR THE CASH BALANCE ACCOUNT; AMENDING SECTION 2-208
TO ADD PROCEDURES FOR THE CASH BALANCE ACCOUNT, AND TO CORRECT
THE AGE FOR VESTED TERMINATION PENSION; AMENDING SECTION 2-209 TO
ADD PROCEDURES FOR THE CASH BALANCE ACCOUNT; AMENDING SECTION
2-210 TO ADHERE TO NEW DEFINITIONS, TO CLARIFY THE APPLICABILITY OF
THE AD HOC COLA, PROVIDING THE DATE FOR ELIGIBILITY OF THE COST OF
LIVING ADJUSTMENTS, AND DELETING SECTION THAT IS RESTATED
ELSEWHERE IN THE ORDINANCE; AMENDING SECTION 2-211 TO CORRECT
LANGUAGE AND TO PROVIDE FOR PROCEDURES FOR THE CASH BALANCE
ACCOUNT; AMENDING SECTION 2-212 TO PROVIDE PROCEDURES FOR CASH
BALANCE ACCOUNT, TO PROVIDE BENEFIT FOR THE DEPENDENT PARENTS OF
AN EMPLOYEE WHO DIES NOT IN THE LINE OF DUTY, TO PROVIDE BENEFIT
FOR DEPENDENT CHILDREN, TO CLARIFY SURVIVOR BENEFIT; AMENDING
SECTION 2-214 TO PROVIDE FOR DEPARTMENTAL CHANGES FOR EMPLOYEE
GROUP ELECTIONS AND TO DELETE THE FOLLOWING SECTIONS: GENERAL
PROVISIONS, CODE OF ETHICS, EXECUTIVE DIRECTOR AND OTHER
EMPLOYEES, BUDGET, EXPENSES, AND REPAYMENT BY CITY, AND CUSTODIAL
TRUSTEE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT ALL
CONDITIONS PRECEDENT FOR THE ADOPTION OF THIS ORDINANCE CLAUSE
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Fort Worth City Council ("City Council") adopted Ordinance
No. 13543, as amended, and codified as Chapter 2, Article VI, Division 1 of the Code of the City
of Fort Worth, collectively called the "Employees Retirement Fund Ordinance"; and
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WHEREAS, the City Council desires to make changes to the Retirement Ordinance to
clarify previous changes made to Retirement Ordinance; and
WHEREAS, the City Council desires to make changes to the Retirement Ordinance to
ensure that the Retirement Ordinance remains in compliance with applicable state statutes; and
WHEREAS, the City Council desires to make changes to the Retirement Ordinance in
accordance with changes made to the Administrative Rules of the Retirement Fund.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
Chapter 2, Article VI, Division 1, Section 2-201, ("Definitions") of the Retirement
Ordinance is amended to add the definitions for "Line of Duty" and "Vested Retirement Date",
to delete the terms and definitions for "Trust Agreement", "Trustee", and "Vested Termination
Date", and to change the definitions of "Alternative Pension Benefit", "Base Pension", "Credited
Service", "DROP Account", "Earnings", "Normal Retirement Date", and "Vested Termination
Pension", to read as follows:
Sec. 2-201. - Definitions.
The following words, terms and phrases, when used in this division, as amended, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a different
meaning. The masculine pronouns, wherever used herein, shall include both male and female
persons.
Actuarial equivalent and actuarially equivalent shall mean equality in value of the aggregate
amounts expected to be received under different forms of payment based upon the actuarial
factors and assumptions used by the actuary with the approval of the board.
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.
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Actuary shall mean the technical advisor regarding the operations which are based on mortality,
service, and compensation experience, who makes periodic valuations of the assets and liabilities
of the fund and other evaluations as requested by the board and the governing body.
Alternative pension benefit shall have the meaning set forth in section 2-210(a)(1)b. or (a)(2)b.,
whichever applies.
Base pension shall mean the annual life pension a member receives pursuant to section 2-
210(a)(1)(a), 2-210(a)(2)a., or 2-210(a)(4)g., whichever applies, prior to any cost -of -living
adjustments pursuant to section 2-210(b) or 2-210(a)(4)g. If a member elects an alternative
pension benefit pursuant to section 2-210(a)(1)b. or 2-210(a)(2)b., or participates in DROP
pursuant to section 2-210(a)(4), the member's base pension shall not include the lump sum
amount or the DROP account.
Beneficiary shall mean any person in receipt of a retirement benefit or any other benefit provided
under this division.
Board shall mean the Board of Trustees of the Employees Retirement Fund of the City of Fort
Worth.
City shall mean the City of Fort Worth, Texas.
Code shall mean the United States Internal Revenue Code of 1986, as amended, and any
successor thereof
Compensation base shall have the meaning set forth in section 2-207.
Credited service shall mean the number of years (treating each complete month of service as
one -twelfth (1/12) of a year) in which an employee has participated in the Employees'
Retirement Fund of the City of Fort Worth, Texas, including unused accumulated sick leave and
major medical leave pursuant to section 2-205(b). Service for fifteen (15) or more calendar days
in any month shall constitute a complete month of service; service for less than fifteen (15)
calendar days in any month shall constitute a complete month of absence. Notwithstanding the
preceding provisions of this definition of credited service, the period of time following a
member's effective DROP election shall not be included when determining a member's credited
service. A member may have his or her proof of credited service increased through the purchase
of permissive service credits as provided in section 2-205(c).
DROP shall mean the deferred retirement option program as set forth in section 2-210(a)(4).
Drop account shall mean the account created pursuant to section 2-210(a)(4)d. for a member
who has made a DROP election.
Drop election shall mean the election made by a member pursuant to section 2-210(a)(4) to
participate in the deferred retirement option program.
Earned income shall mean, for purposes of section 2-211, those wages, salaries, tips,
commissions, monetary bonuses or professional fees, and other amounts received as
compensation for personal services actually rendered, including any compensation deferred
under a deferred compensation program.
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Earnings shall mean the amount actually paid to an employee by the city for services rendered to
the city during the 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. "Earnings" shall also include weekly workers' compensation benefits
(currently referred to as temporary income benefits), beginning for such amounts received by
city employees on or after January 1, 2006, so long as required by law. 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, automobile allowance or
mileage, etc.), (2) lump sum payments received at time of termination for unused vacation leave,
sick leave and personal leave, (3) any award by a court, administrative body, or settlement
agreement in excess of earnings, and (4) any amount paid to an employee for which the city does
not contribute to the fund under section 2-204. 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. Mandatory member
contributions that are picked -up by the city and excluded from a member's W-2 form shall also
be included as part of earnings. Notwithstanding the foregoing, earnings in excess of two
hundred thousand dollars ($200,000.00), if any (or such other amounts as may be determined by
taking into account the cost -of -living adjustment provided under section 401(a)(17) of the Code)
shall be disregarded for all purposes of this definition. Notwithstanding the preceding provisions
of this definition of earnings, earnings shall not include any amounts paid following a member's
effective DROP election.
ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended, and any
successor thereof.
Executive director shall mean the individual appointed by the board, , to supervise the
administrative affairs of the fund and carry out the business of the fund.
Fire fighter shall mean any member of the Fort Worth Fire Department who was hired in
substantial compliance with Chapter 143 of the Local Government Code, or as modified by the
provisions of the city's collective bargaining agreement with the Fort Worth Professional
Firefighters Association IAFF Local 440, and any fire fighter trainee who is employed by the
city for the sole purpose of attending the City of Fort Worth Fire Department's Training
Academy.
Fiscal year shall mean the period from October 1 of one (1) year through September 30 of the
following year.
Fund shall mean The Employees' Retirement Fund of the City of Fort Worth, Texas.
Legitimate children shall mean those children legitimate 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.
Line of duty shall mean in the course of the operation usual to a member's employment,
including all operations necessary, incident or appurtenant thereto or connected therewith,
whether such operations are conducted at the usual place of employment or elsewhere.
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Member shall mean a "participating member" as defined by Section 1.02(4) of Article 6243i of
the Revised Civil Statutes.
Net earnings from self-employment shall constitute, for purposes of section 2-211, 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.
Normal retirement date shall have the meaning set forth in section 2-206 (a)(1) for police
officers, fire fighters and members hired prior to July 1, 2011 who are not police officers or fire
fighters. Normal retirement date shall have the meaning set forth in Section 2-206(b)(2) for
members hired on or after July 1, 2011, who are not police officers or fire fighters.
Permissive service credits shall mean a member's voluntary purchase of additional periods of
credited service pursuant to section 2-205(c).
Police officer shall mean a member in the City of Fort Worth Police Department who has
acquired civil service status as well as a beginning employee currently serving a one (1) year
probationary period pursuant to Chapter 143, Local Government Code, Revised Civil Statutes of
Texas, as amended.
Price index shall mean the annual average for each year, ending September 30, 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.
Regular interest shall mean interest compounded biweekly which should equal but not exceed
the effective annual rate of five and one -quarter (51) percent computed on a calendar year basis
on and after the effective date of this division.
Retirement benefit shall mean a pension for life, as provided in the division, 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 division.
Special retirement date shall have the meaning set forth in section 2-206 (a)(2).
Standard pension benefit shall have the meaning set forth in section 2-210(a)(1)a. or 2-
210(a)(2)a., whichever applies.
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.
Vested shall mean the rights accrued under this division by a member of the fund who has been a
member for five (5) years or more, or who has attained his or her retirement date as described in
section 2-206. Such rights shall also accrue to all members of the fund at the time of termination
of the fund, at the time of any complete discontinuance of the city's contributions to the fund, and
to members affected at the time of any partial termination of the fund, but only to the extent that
the benefits of such members have been funded.
Vested retirement data shall have the meaning set torth in section 2-206 (a)(3) for police
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officers, fire fighters and members hired prior to July 1, 2011 who are not police officers or fire
fighters. Vested termination retirement date shall have the meaning set forth in section 2-
206(b)(3) for members hired on or after July 1, 2011 who are not police officers or fire fighters .
Vested termination pension shall have the meaning set forth in section 2-208 (a)(2) for police
officers, fire fighters and members hired prior to July 1, 2011 who are not police officers or fire
fighters. Vested termination retirement date shall have the meaning set forth in section 2-
208(b)(2) for members hired on or after July 1, 2011 who are not police officers or fire fighters.
SECTION 2.
Chapter 2, Article VI, Division 1, Section 2-202, ("Membership in the fund") of the
Retirement Ordinance is amended to read as follows:
Sec. 2-202. - Membership in the fund.
(a)_Membership in the fund shall be based on the requirements set forth in Section 2.01 of
Article 6243i of the Revised Civil Statutes, provided however, that membership in the fund
shall be a condition of employment for all employees who are eligible to be members.
(b) If a member hired prior to July 1, 2011, who is not a police officer or firefighter, terminates
employment with the City after vesting, takes a refund of their contributions, and then
returns to service with the City after July 1, 2011, then the member will be treated as if the
member was hired after July 1, 2011, even if the member purchases service credits pursuant
to Section 2-205(a)(3).
(c) If a member hired prior to July 1, 2011, who is not a police officer or firefighter, terminates
employment with the City after vesting, does not take a refund of their contributions, and
then returns to service with the City after July 1, 2011, then the member will be treated as if
the member was hired prior to July 1, 2011.
(d) If a member hired prior to July 1, 2011, who is not a police officer or firefighter, terminates
employment with the City prior to vesting, and then returns to service with the City after
July 1, 2011, then the member will be treated as if the member was hired after July 1, 2011,
even if the member purchases service credits pursuant to Sec 2-205(a)(3).
SECTION 3.
Chapter 2, Article VI, Division 1, Section 2-205, "Credited Service", of the Retirement
Ordinance is amended to read as follows:
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Sec. 2-205. - Credited service.
(a) Service breaks. Pension credits shall be granted for all credited service for which a member
of the fund receives employment compensation from the city, subject to the following
regulations pertaining to service breaks:
(1) Authorized service breaks of ninety (90) or less consecutive calendar days without pay
shall not be deducted from credited service.
(2) Except as provided below, periods of absence in excess of ninety (90) consecutive
calendar days without pay 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 any period shall be permitted without loss of prior service credits,
unless the member receives a distribution of his or her total contributions, plus regular
interest; any period of absence shall cancel all prior service if the member receives a
distribution of the member's total contributions, plus regular interest; however, if a member
is absent, the member may regain prior service credits by repaying the total amount of all
contributions withdrawn, plus regular interest thereon (at the regular interest rate in effect
on the date of repayment),less the amount received in from the member's cash balance
account, from the date of withdrawal to the date of repayment, pursuant to policies adopted
by the board under one (1) of the two (2) following options:
a. Repay in a single lump sum payment within ninety (90) days of reemployment,
or
b. Repay through a payroll deduction payback plan which commences within ninety
(90) days of reemployment, and provides that regular interest will be charged
throughout the payback period and that the repayment period will not exceed seven (7)
years.
A rehired member who does not timely elect one (1) of these two (2) options and
timely repay the prior contributions (plus regular interest) will waive his or her right to
prior service credits. An existing rehired member on the date this provision is added to
the retirement ordinance shall have until October 31, 1999 to elect one (1) of the above
repayment options or waive his or her right to prior service credits.
Members who received a refund of the proceeds in their cash balance account are not
required to repay that amount to regain credited service under this provision. A refund
of the proceeds in the cash balance account is irrevocable and the member can not pay
back the amount received to restore their original cash balance account.
(4) Effective on or after December 12, 1994, any member who is reemployed by the city
upon completion of service in the uniformed services (within the time frame provided under
the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended),
shall be granted service credit for such uniformed service, provided the member makes the
contributions (with no interest) to the fund that the member would have been required to
contribute if the member had remained continuously employed by the city throughout the
period of uniformed service. Such payment must be made during the period which
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commences with the date of reemployment by the city and whose duration is three (3) times
the period of the member's service in the uniformed services, not to exceed five (5) years. If
a reemployed member makes such contributions, the city shall also make its corresponding
contributions to the fund. This provision shall be construed consistently with the
requirements of the Uniformed Services Employment and Reemployment Act of 1994, as
amended.
(5) Any member whose employment was terminated involuntarily and was thereafter
reinstated as the direct result of an appeal or suit arising from the involuntary termination
shall be granted all service credits for the period of absence.
(b) Accumulated sick leave and major medical leave. At retirement and in calculating a vested
termination pension, a member shall have added to his or her credited service, as defined herein
and subject to the provisions of section 2-205(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 compensation. Notwithstanding the preceding sentence,
accumulated sick leave and/or unused major medical leave shall not be taken into account to
increase the pension of a member receiving an in -line -of -duty disability pension under section 2-
211(d). For credited service purposes, such accumulated sick leave hours and/or unused major
medical leave for which a member shall not receive compensation shall be converted into months
using the following formula: total number of hours accumulated uncompensated sick leave
and/or unused major medical leave divided by the member's total scheduled hours of work for
the year and multiplied by twelve (12). 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 less than five tenths (0.50), then no addition to credited service shall be made with
respect to such decimal value, however, if the resulting product contains a decimal value that is
five tenths (0.50) or greater, then an additional month of credited service shall be provided for
such decimal value. 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.
(c) Permissive service credits.
(1) General. Effective on or after October 1, 2002, a member who has earnings from the
city for the then current year may elect to purchase permissive service credits and have his
or her period of credited service increased for purposes of calculating the member's
retirement benefit, normal retirement date, and special retirement date, pursuant to the
provisions of this section 2-205(c). The actuary shall prepare factors which shall be used to
determine the voluntary additional contributions that a member must make to purchase
permissive service credits, provided, however, that in no event shall a member be required
to contribute an amount that exceeds the amount necessary to fund the benefit attributable
to the additional credited service that is purchased.
(2) Limitations. A member cannot purchase more than five (5) years of permissive service
credits that are attributable to non -qualified service, and a member cannot purchase any
permissive service credits for non -qualified service prior to completion of five (5) years of
participation as a member.
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(3) Non -qualified service. For purposes of this subsection 2-205(c), the term "non -
qualified service" means service for which permissive service credit is allowed other than
(i) service (including parental, medical, sabbatical, and similar leave) as an employee of the
government of the United States, any state or political subdivision thereof, or any agency
instrumentality of any of the foregoing (other than military service or service for credit
which was obtained as a result of the repayment described in section 415(k)(3) of the
Code), (ii) service (including parental, medical, sabbatical, and similar leave) as an
employee (other than as an employee described in clause (i) above) of an education
organization described in section 170(b)(1)(A)(ii) of the Code which is a public, private, or
sectarian school which provides elementary or secondary education (through grade 12), as
determined under state law, (iii) service as an employee of an association of employees who
are described in clause (i) above, or (iv) military service (other than qualified military
service under section 414(u) of the Code) recognized by such governmental plan. In the
case of service described in clauses (i), (ii), or (iii) above, such service will be non -qualified
service if recognition of such service would cause a member to receive retirement benefits
for the same service under more than one (1) plan.
(4) Purchase of permissive service credits. A member may purchase permissive service
credits pursuant to the rules, procedures and forms as may be adopted and amended by the
board in its complete discretion, which shall be uniform and nondiscriminatory and which
shall be interpreted in a manner that is consistent with the provision of the retirement
ordinance and applicable law. Permissive service credits may be purchased by a member's
direct payment to the trustee of the amount determined by the factors provided by the
actuary, or through a trustee to trustee transfer of such amount from the member's account
under an eligible deferred compensation plan (as defined in Code section 457) or a qualified
plan within the meaning of Code section 401(a), including a 401(k) plan, or the member's
annuity contract meeting the requirements of Code section 403(b).
SECTION 4.
Chapter 2, Article VI, Division 1, Section 2-207, "Compensation Base For Determining
Benefits" is amended to read as follows:
Sec. 2-207. - Compensation base for determining benefits.
(a) For all members hired and vested before October 23, 2007: Pension, death, disability and
vested termination benefits shall be based upon the member's compensation base which shall
mean the average annual earnings which were paid to the member by the city for employment
with the city during any five (5) calendar years in which he or she had the highest annual
earnings. If a member's last day of employment with the city is on or after January 1, 1999,
"three (3)" shall be substituted for "five (5)" in the preceding sentence, and the calculation of the
member's compensation base will be subject to any applicable limits on annual earnings set forth
in section 2-207(b). If a member has less than five (5) (or, if applicable, three (3)) calendar years
of employment, the member's compensation base shall be determined by the executive director
under uniform, non-discriminatory procedures that are consistently applied. For compensation
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base purposes, any lump sum payments of earnings for any prior time period, whether awarded
to the member by a court, administrative body or settlement agreement, shall be retroactively
attributed to the calendar year in which it would otherwise have been received by the employee
from the city for services rendered. For purposes of computing the compensation base for a
member who has made an effective DROP election, the member's compensation base shall be
calculated using the member's earnings prior to the effective date of the DROP election.
(b) For all members hired prior to October 23, 2007, who had less than five years of service as
of October 23, 2007; for police officers and fire fighters hired after October 23, 2007; and for
members hired after October 23, 2007 and prior to July 1, 2011, who are not police officers or
fire fighters:
(1) For purposes of 2-207(b) a member is defined as all members hired prior to October
23, 2007, who had less than five (5) years of service as of October 23, 2007, police officers
and fire fighters hired after October 23, 2007, or members hired after October 23, 2007 and
prior to July 1, 2011.
(2) Pension, death, disability and vested termination benefits shall be based upon the
member's compensation base which shall mean the average annual earnings which were
paid to the member by the city for employment with the city during any three (3) calendar
years in which he or she had the highest annual earnings. If a member has less than three (3)
calendar years of employment, the member's compensation base shall be determined by the
executive director under uniform, non-discriminatory procedures that are consistently
applied. For compensation base purposes, any lump sum payments of earnings for any prior
time period, whether awarded to the member by a court, administrative body or settlement
agreement, shall be retroactively attributed to the calendar year in which it would otherwise
have been received by the employee from the city for services rendered. For purposes of
computing the compensation base for a member who has made an effective DROP election,
the member's compensation base shall be calculated using the member's earnings prior to
the effective date of the DROP election.
(3) For a member whose last day of employment with the city is on or after January 1,
1999, and whose benefits commence on or after December 31, 2008, a member's
compensation base shall be calculated as follows:
a. The fund shall determine the four (4) calendar years in which the member had the
highest annual earnings. Of such four (4) years, the year in which the member had the
lowest annual earnings shall serve as the base year. The base year shall not be included
as one (1) of the three (3) calendar years for purposes of the compensation base
calculation.
b. The first annual earnings to be used in the calculation of the member's
compensation base shall be the actual annual earnings from the calendar year with the
third highest annual earnings of the four (4) calendar years identified in subsection
(3)a. of this section 2-207(b), provided that if such annual earnings are from a calendar
year beginning on or after January 1, 2008, the amount to be used in the calculation of
the compensation base for the first year shall not exceed one hundred twelve (1 12)
percent of the annual earnings for the base year.
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c. The second annual earnings to be used in the calculation of the member's
compensation base shall be the actual annual earnings from the calendar year with the
second highest annual earnings of the four (4) calendar years identified in subsection
(3)a. of this section 2-207(b), provided that if such annual earnings are from a calendar
year beginning on or after January 1, 2008, the amount to be used in the calculation of
the compensation base for the second year shall not exceed one hundred twelve (112)
percent of the annual earnings used that are attributable to the year described in
subsection (3)b. of section 2-207(b).
d. The third annual earnings to be used in the calculation of the member's
compensation base shall be the actual annual earnings from the calendar year with the
highest annual earnings of the four (4) calendar years identified in subsection (3)a. of
this section 2-207(b), provided that if such annual earnings are from a calendar year
beginning on or after January 1, 2008, the amount to be used in the calculation of the
compensation base for the third year shall not exceed one hundred twelve (112)
percent of the annual earnings used that are attributable to the year described in
subsection (3)c. of section 2-207(b).
e. The average of the three (3) amounts determined in accordance with subsections
(3)b. through (3)d. of this section 2-207(b) will be the average annual earnings for
purposes of the member's compensation base.
(c) For members hired on or after July 1, 2011, who are not police officers or fire fighters:
(1) For purposes of section 2-207(c), a member is defined as a member hired on or after
July 1, 2011, who is not a police officer or a fire fighter
(2) For a member hired on or after July 1, 2011, who is not a police officer or a fire
fighter, pension, death, disability and vested termination benefits shall be based upon the
member's compensation base which shall mean the average annual earnings, excluding
overtime, which were paid to the member by the city for employment with the city during
any five (5) calendar years in which he or she had the highest annual earnings (excluding
overtime), . If a member has less than five (5) calendar years of employment, the member's
compensation base shall be determined by the executive director under uniform, non-
discriminatory procedures that are consistently applied. For compensation base purposes,
any lump sum payments of earnings for any prior time period, whether awarded to the
member by a court, administrative body or settlement agreement, shall be retroactively
attributed to the calendar year in which it would otherwise have been received by the
employee from the city for services rendered. For purposes of computing the compensation
base for a member who has made an effective DROP election, the member's compensation
base shall be calculated using the member's earnings (excluding overtime) prior to the
effective date of the DROP election.
(3) Both city contributions and member contributions "picked up" by the city on overtime
will not be included in the compensation base for determining retirement benefits. Member
contributions on overtime will be placed in a cash balance account for each member to be
administered by the fund. A member will be eligible to receive the proceeds in the cash
balance account plus regular interest (at the regular rate in effect on the date of such
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payment) upon termination of employment from the City of Fort Worth. However, a
member who retires from the City under a normal retirement, special retirement, disability
retirement, early retirement is entitled to receive a dollar for dollar match of the proceeds in
the cash balance account plus a dollar for dollar match of the regular interest (at the regular
rate in effect on the date of such payment) on the proceeds in the cash balance account upon
retirement. A member who retires from the City under a vested termination retirement is
entitled to receive a dollar for dollar match of the proceeds in the member's cash balance
account, and a dollar for dollar match of the regular interest on the cash balance up until the
date the member terminated service with the City. However, the member is not entitled to
any interest on the cash balance account after the date the member terminated employment
with the City. An eligible surviving widow or widower, dependent child or children, or
dependent parent or parents of a member who dies prior to retirement would also be entitled
to receive a dollar for dollar match of the proceeds in the cash balance account plus a dollar
for dollar match of the regular interest (at the regular rate in effect on the date of such
payment) on the proceeds in the cash balance account.
SECTION 5.
Chapter 2, Article VI, Division 1, Section 2-208, "Termination benefits and vesting" is
amended to read as follows:
Sec. 2-208. - Termination benefits and vesting.
(a) For police officers, fire fighters, and members hired prior to July 1, 2011 who are not
police officers or fire fighters:
(1) Contribution refund prior to vesting. Any member who is voluntarily or involuntarily
separated from the service of the city before the member is vested shall be entitled to
receive the amount of the member's contributions plus regular interest (at the regular
interest rate in effect on the date of such payment) less any amount previously paid to the
member from the fund.
(2) Vested termination pension.
a. A vested member who is voluntarily or involuntarily separated from the service
of the city shall be entitled to receive a vested termination pension payable: (i) in full,
pursuant to Section 2-206(a)(3) or (ii) in a reduced amount commencing on or after
age fifty (50). A member must file a request for the commencement of the vested
termination pension by completing such forms and following such procedures as are
established by the board. A vested termination pension shall be payable monthly on
the first day of each month commencing with the month following approval of the
member's vested termination pension by the board.
h. A vested termination pension shall he an annual life pension, the amount of
Ordinance No. 20008-12-2011
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which shall be the specified percentage of the member's compensation base multiplied
by the member's total years of credited service to date of such voluntary or involuntary
separation from the service of the city. For purposes of the preceding sentence, the
specified percentage of the member's compensation base shall be two and seventy-five
one -hundredths (2.75) percent, unless the member has attained his or her normal
retirement date or vested retirement date prior to the date the member's pension
payments begin, in which case the specified percentage shall be three (3.0) percent. A
vested termination pension shall be calculated using the "multiplier" ("specified
percentage") in effect at the time the vested termination pension commences (rather
than at the time the member's employment with the city terminates).
c. The amount of reduction for early commencement of a vested termination
pension prior to the member's normal retirement or vested retirement date shall be
five -twelfths (5/12) percent for each month by which commencement of the pension
antedates the member's normal retirement date had the member remained employed by
the city.
(3) Contribution refund after vesting in lieu of vested termination pension. Any vested
member who is voluntarily or involuntarily separated from the service of the city may elect
to receive a refund of the member's contributions, plus regular interest (at the regular
interest rate in effect on the date of such payment) less any amount previously paid to the
member from the fund, either at the date of such separation or at any time thereafter prior to
commencement of retirement benefit, but by so doing, the member shall forfeit all rights
under the fund and thereafter be entitled to no further benefits hereunder.
(b) For members hired on or after July 1, 2011, who are not police officers or fire fighters:
(1) Contribution refund prior to vesting. Any member hired on or after July 1, 2011, who
is not a police officer or fire fighter who is voluntarily or involuntarily separated from the
service of the city before the member is vested shall be entitled to receive the amount of the
member's contributions, plus regular interest (at the regular interest rate in effect on the date
of such payment) including any proceeds in the member's cash balance account, less any
amount previously paid to the member from the fund.
(2) Vested termination pension.
a. A vested member hired on or after July 1, 2011, who is not a police officer or fire
fighter who is voluntarily or involuntarily separated from the service of the city shall
be entitled to receive a vested termination pension payable: (i) in full pursuant to
section 2-206(b)(3), or (ii) in a reduced amount commencing on or after age fifty-five
(55). A member must file a request for the commencement of the vested termination
pension by completing such forms and following such procedures as are established by
the board. A vested termination pension shall be payable monthly on the first day of
each month commencing with the month following approval of the member's vested
termination pension by the board.
b. A vested termination pension shall be an annual life pension, the amount of
which shall be the specified percentage of the member's compensation base multiplied
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by the member's total years of credited service to date of such voluntary or involuntary
separation from the service of the city. For purposes of the preceding sentence, the
specified percentage of the member's compensation base shall be two and twenty-five
one hundreds (2.25) percent, unless the member has attained his or her normal
retirement date prior to the date the member's pension payments begin, in which case
the specified percentage shall be two and fifty one hundredths (2.50) percent. A vested
termination pension shall be calculated using the "multiplier" ("specified percentage")
in effect at the time the vested termination pension commences (rather than at the time
the member's employment with the city terminates).
c. The amount of reduction for early commencement of a vested termination
pension prior to the member's normal retirement date shall be five -twelfths (5/12)
percent for each month by which commencement of the pension antedates the
member's normal retirement date had the member remained employed by the city.
(3) Contribution refund after vesting in lieu of vested termination pension. Any vested
member who is voluntarily or involuntarily separated from the service of the city may elect
to receive a refund of the member's contributions, plus regular interest (at the regular
interest rate in effect on the date of such payment) including any proceeds in the member's
cash balance account less any amount previously paid to the member from the fund, either
at the date of such separation or at any time thereafter prior to commencement of retirement
benefit, but by so doing, the member shall forfeit all rights under the fund and thereafter be
entitled to no further benefits hereunder.
SECTION 6.
Chapter 2, Article VI, Division 1, Section 2-209, ("Payment of benefits") of the
Retirement Ordinance is amended to read as follows:
Sec. 2-209. - Payment of benefits.
Where benefits are payable to a minor, an individual who has legally been determined to lack
capacity, or an individual whom the board determines to be unable to handle money, the board
shall make payments, without any duty to see to the application thereof, to the guardian of such
person's estate or, if there is none, as the board determines to be in the best interest of such
person.
If a retired employee who is receiving pension benefits from the fund is re-employed by the city
as a regular employee, that person's pension benefits shall cease upon the date of re-employment.
Credited service earned during the term of any person's subsequent re-employment in which the
employee's pension benefits have been suspended shall be added to the credited service of the
prior periods of employment, and upon final separation from the city, a new pension benefit shall
be calculated taking into account the member's total years of credited service and recalculated
compensation base. A member who was entitled to the cash balance account upon retirement will
be entitled to begin a new cash balance account upon re-employment. In no event shall the
member's monthly pension benefit be reduced due to periods of reemployment.
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If the distributee of an eligible rollover distribution (as defined in Code section 402(f)(2)(A)) (i)
elects to have such distribution paid directly to an eligible retirement plan and (ii) specifies in
writing (before the distribution is made) the eligible retirement plan to which such distribution is
to be made, the distribution will be made in the form of a direct trustee -to -trustee transfer to the
eligible retirement plan so specified.
SECTION 7.
Chapter 2, Article VI, Division 1, Section 2-210, ("Retirement pension") of the
Retirement Ordinance is amended to read as follows:
Sec. 2-210. - Retirement pension.
(a) Commencement of retirement pensions and adjustment to prior pensions.
(1) Pensions commencing upon normal retirement date.
a. Standard pension benefit.
(i) For police officers, fire fighters, and members hired prior to July 1, 2011,
who are not police officers or fire fighters:
1) For purposes of section 2-210(a)(1)a.i., a member is defined as a police
officer, fire fighter, and a member hired prior to July 1, 2011, who is not
police officers or fire fighter.
2) A vested member who retires on or after the member's normal
retirement date and requests commencement of the member's pension, or a
member who terminates employment prior to the member's normal
retirement date and who waits until such vested retirement date to apply for
a pension, shall receive an annual life pension, the amount of which shall be
three (3.0) percent of the member's compensation base multiplied by the
member's total years of credited service, payable monthly on the first day of
each month commencing with the month following the board's approval of
the member's pension. This pension benefit shall be called the "standard
pension benefit."
(ii) For members hired on or after July 1, 2011, who are not police officers or
fire, fighters:
1) For purposes of section 2-210(a)(1)a.ii., a member is defined as a
member hired on or after July 1, 2011, who is not a police officer or a fire
fighter.
2) A vested member hired on or after July 1, 2011, who is not a police
officer or a fire fighter, who retires on or after the member's normal
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retirement date and requests commencement of the member's pension, or a
member who terminates employment prior to the member's normal
retirement date and who waits until such vested retirement date to apply for
a pension, shall receive an annual life pension, the amount of which shall be
two and fifty one -hundredths (2.50) percent of the member's compensation
base multiplied by the member's total years of credited service, payable
monthly on the first day of each month commencing with the month
following the board's approval of the member's pension. This pension
benefit shall be called the "standard pension benefit."
b. Alternative pension benefit. In lieu of the standard pension benefit, a member
may irrevocably elect with his or her spouse's consent (where applicable), in advance
of his or her retirement and pursuant to regulations and requirements the board in its
discretion may adopt, to receive an "alternative pension benefit" which shall be
actuarially equivalent to the member's standard pension benefit and which shall be
payable in two (2) parts: (i) one (1) part in a lump sum amount not less than five (5)
percent nor greater than twenty-five (25) percent of the actuarial equivalent of the
member's standard pension benefit, which lump sum shall be payable on the date
benefits commence under (ii); and (ii) the remainder in an annual life pension, payable
monthly on the first day of each month commencing with the month following the
board's approval of the member's pension.
c. Limitation on alternative pension benefit. Notwithstanding any other provision in
this division to the contrary, the option to elect an alternative pension benefit shall not
be available for any disability benefits under section 2-211, death benefits under
section 2-212, or termination benefits under section 2-208, nor shall it be available to
any retired employee who is receiving pension benefits hereunder as of the effective
date of the alternative pension benefit provisions of this division, nor shall it be
available upon re -retirement to any retired employee who becomes re-employed by the
city.
(2) Pensions commencing upon special retirement date.
a. Standard pension benefit. A vested police officer member who retires on or after
the member's special retirement date and requests commencement of the member's
pension shall receive an annual life pension, the amount of which shall be three (3.0)
percent of the member's compensation base multiplied by the member's total years of
credited service to date of actual retirement, payable monthly on the first day of each
month commencing with the month following the board's approval of the member's
pension. This pension benefit shall be called the "standard pension benefit."
b. Alternative pension benefit. In lieu of the standard pension benefit, a member
may irrevocably elect with his or her spouse's consent (where applicable), in advance
of his or her retirement and pursuant to regulations and requirements the board in its
discretion may adopt, to receive an "alternative pension benefit" which shall be
actuarially equivalent to his or her standard pension benefit and which shall be payable
in two (2) parts: (i) one (1) part in a lump sum amount not less than five (5) percent
nor greater than twenty-five (25) percent of the actuarial equivalent of the member's
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standard pension benefit, which lump sum shall be payable on the date benefits
commence under (ii); and (ii) the remainder in an annual life pension, payable monthly
on the first day of each month commencing with the month following the board's
approval of the member's pension.
c. Limitation on alternative pension benefit. Notwithstanding any other provision in
this division to the contrary, the option to elect an alternative pension benefit shall not
be available for any disability benefits under section 2-211, death benefits under
section 2-212, or termination benefits under section 2-208, nor shall it be available to
any retired employee who is receiving pension benefits hereunder as of the effective
date of the alternative pension benefit provisions of this division, nor shall it be
available upon re -retirement to any retired employee who becomes reemployed by the
city.
(3) Pension commencing prior to October 1, 1996. Effective October 1, 1996, each
member previously receiving pension benefits hereunder shall have the member's
calculation for base pension benefits adjusted. For members whose pension was calculated
on or after the member attained normal retirement date or special retirement date, or who
were receiving pension benefits prior to October 1, 1993, the new base pension shall be
three (3.0) percent of the member's compensation base multiplied by the member's total
years of credited service to date of actual retirement. For all other members, the new base
pension shall be two and seventy-five one -hundredths (2.75) percent of the member's
compensation base multiplied by the member's total years of credited service to date of
actual retirement. For all members, all prior cost -of -living increases from the date the
member's pension benefits commenced shall be added to the new base pension to determine
total benefits to be paid.
(4) Deferred retirement option program.
a. General. In lieu of the standard pension benefit or the alternative pension benefit,
a member who has attained his or her normal retirement date or special retirement date
may elect to remain in active service with the city and to participate in the deferred
retirement option program ("DROP"). By making an election to participate in DROP
("DROP election"), the member's commencement of retirement pension benefits will
be deferred until the member's actual retirement and the member will receive a lump
sum payment (unless such person elects installment payments pursuant to section 2-
210(a)(4)k) of his or her DROP account (defined below) at the time the member's
actual retirement pension benefits commence. No interest on earnings shall be paid on
the lump sum payment. Once a member makes a DROP election and the DROP
election is approved by the board, the election is irrevocable and is effective as long as
the member remains in active service with the city. Distribution of a member's DROP
account will not be made, and commencement of the member's retirement pension
benefits will not begin, until the member retires from the city. DROP shall be
administered in accordance with the rules, procedures and forms as may be adopted
and amended by the board in its complete discretion, which shall be uniform and
nondiscriminatory and which shall be interpreted in a manner that is consistent with
the provisions of the retirement ordinance and applicable law.
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b. Procedure for DROP election. A DROP election shall be made in accordance
with the rules, procedures and forms (including spousal consent, where applicable) as
may be adopted by the board. The election form adopted by the board may be
amended by the board, and, except as otherwise provided by the board, the election
form in effect at the time the member's DROP election is effective shall control all
DROP benefits the member may become entitled to receive upon retirement. A
member shall not be subject to any fees, charges, or any other similar expenses in
connection with a DROP election.
c. Timing and irrevocability of a DROP election. A member may make a DROP
election at any time on or after the date that is sixty (60) days prior to the date that the
member will attain his or her normal retirement date or special retirement date. Once
effective, a DROP election is irrevocable, provided, however, that a member's DROP
election shall not be effective until the member attains his or her normal retirement
date or special retirement date.
d. The DROP account. A member's DROP account is an individual account
established on behalf of the member into which a monthly amount will be credited
once the DROP election is effective ("DROP account"). The monthly amount credited
to the member's DROP account will be equal to the monthly pension benefit that the
member would have initially received if the member had retired from the city and
commenced receipt of pension benefits. Credits to a member's DROP account will
continue to be made until the member's actual retirement, provided, however, that
amounts will be credited to a member's DROP account for a maximum of five (5)
years. No withdrawals may be made from the DROP account. A member will receive
his or her DROP account in a lump sum distribution at the time the member's pension
benefits commence upon retirement, or, if elected by the member, the DROP account
will be distributed in installments, as provided in section 2-210(a)(4)k.
e. [Reserved.]
f. Continued contributions to the fund. Once a DROP election is effective, both the
member and the city shall continue to make the same contributions to the fund that
would have been made if the member had not made a DROP election. Neither the
member's nor the city's contributions to the fund will be credited to the member's
DROP account and the additional contributions will not affect the member's monthly
pension upon actual retirement.
g. Monthly pension and cost -of -living adjustments. Upon retirement following an
effective DROP election, the member's base pension will be the monthly pension
benefits that the member had earned at the time the DROP election became effective.
Thus, the member's earnings and credited service following the DROP election will
not be included in calculating the member's base pension and monthly pension
benefits. If (and only if) a member completes at least two (2) years of service with the
city after his or her DROP election is effective, then the monthly pension benefit that
the member initially receives upon retirement will be adjusted for intervening cost -of -
living adjustments under section 2-210(b), as if the member's monthly pension benefit
had commenced at the time the DROP election became effective. Further, such a
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member shall receive a cost -of -living adjustment on the following January 1,
regardless of whether the member's pension benefits had commenced by September
30. Notwithstanding the preceding provisions of this section 2-210(a)(4)g., when a
member's monthly pension is initially scheduled to commence at retirement or death,
the member's monthly pension (and base pension) shall be recalculated by adjusting
the member's credited service for the member's then accumulated sick leave and major
medical leave (if any) pursuant to section 2-205(b).
h. DROP election and death benefits. If a member dies while his or her DROP
election is in effect, the member's DROP account shall be paid to the member's
spouse, or if there is no spouse, to the member's estate. The person eligible to receive
the DROP account shall receive the DROP account in a lump sum distribution, unless
such person elects installment payments pursuant to section 2-210(a)(4)k. The
remaining portion of the member's pension benefit shall be paid pursuant to the death
benefit provisions of the retirement ordinance, with the amount determined as if the
member had died at the time of the DROP election.
i. DROP election and disability benefits. If a member makes a DROP election, the
member will not be eligible to receive any disability benefits under the retirement
ordinance. If a member does become disabled following an effective DROP election,
the member may retire from the city and receive the amount that has been credited to
the member's DROP account in a lump sum or in installment payments pursuant to
section 2-210(a)(4)k., and commence receipt of a monthly pension benefit, with the
amount of the benefit calculated as if the member had retired at the time the DROP
election became effective.
j. Alternative pension benefit. A member who has made a DROP election shall not
be eligible to elect an alternative pension benefit (the actuarial equivalent of the
member's standard pension benefit) pursuant to section 2-210(a)(1)b. or 2-210(a)(2)b.
k. Installment payments. Notwithstanding the preceding provisions of section 2-
210(a)(4), a member who is entitled to receive a lump sum payment of his or her
DROP account may elect to receive (on a form adopted by the board) the DROP
account in five (5) substantially equal annual installment payments, rather than a lump
sum. The first installment payment shall be made at the time the member's monthly
pension benefits commence, and the other installments shall be made on or about the
anniversary of the initial installment. No interest on earnings shall be paid on the
installment payments.
1. Actuarial study. No later than five (5) years following the adoption of this
deferred retirement option program, the board shall cause the actuary to perform an
actuarial study of the impact of DROP on the retirement fund and the general fund of
the city, and the actuary shall report the results of the actuarial study to the board and
to the City Council. In the event that the actuary certifies that DROP has had, or will
have, a material adverse impact on the retirement fund or the general fund of the city,
the council shall determine whether DROP shall be terminated. If the City Council
votes to terminate DROP, thereafter no member shall be permitted to elect to
participate in DROP; provided, however, that any member who has elected DROP
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prior to such actuarial certification shall continue to participate in DROP until such
member's DROP account has been completely distributed.
(b) Cost of living adjustment.
(1) 2007 cost of living selection. All members of the fund who will have five (5) years of
service or more as of December 31, 2007, and all members and beneficiaries currently
receiving benefits (including disability retirement), will make a one (1) time election, as to
whether they want to receive an annual two (2) percent simple cost of living adjustment or
be entitled to receive an ad hoc compounded cost of living adjustment to their pension
benefit. The election will be administered by the board of the retirement fund, and must be
held prior to December 1, 2007. Once the member or beneficiary has made an election, the
election is irrevocable and binding on the member, beneficiaries and any and all survivors
and beneficiaries who may be entitled to benefits under this ordinance. For purposes of the
ad hoc cost of living election, a member is deemed to be vested if the actual amount of time
purchased pursuant to a buy back agreement when added to the member's actual years of
service equal or exceed five (5) years. Members and beneficiaries who fail to make an
election will automatically receive the two (2) percent simple cost of living adjustment
(2) Two (2) percent cost of living adjustment:
a. The two (2) percent cost of living adjustment is applicable to the following
members and beneficiaries:
(3)
(i) Members with five (5) years of service or more as of December 31, 2007,
who selected the guaranteed two (2) percent cost of living adjustment in the
election conducted pursuant to section 2-210(b)(1);
(ii) Members and beneficiaries (including those receiving disability retirement
and survivors [including children]) receiving benefits on December 31, 2007,
under the retirement ordinance who elected the guaranteed two (2) percent cost
of living adjustment in the election conducted pursuant to section 2-210(b)(1) ;
and
(iii) Members and beneficiaries who failed to make a selection during the
election conducted pursuant to section 2-210(b)(1).
b. Calculation of the two (2) percent cost of living adjustment: Upon retirement, on
the first day of each January a cost -of -living adjustment shall be made on the base
pension of a member subject to the two (2) percent cost of living adjustment pursuant
to section 2-210(b)(2)a. by increasing the amount of the actual pension by two (2)
percent of the base pension, unless otherwise provided herein. To be eligible for a
cost -of -living adjustment for a particular year, either the member or any survivor must
have been receiving benefits by September 30 of the prior year.
Ad hoc cost of living adjustment:
a. The ad hoc cost of living adjustment is applicable to the following members and
beneficiaries:
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(i) Members who are not police officers or firefighters who begin service with
the city between December 31, 2007 and June 30, 2011 (ii)Members with less
than five (5) years of service with the City of Fort Worth on December 31, 2007;
(iii) Members with five (5) years of service or more as of December 31, 2007,
who selected the ad hoc cost of living adjustment in the election conducted
pursuant to section 2-210(b)(1);
(iv) Members and beneficiaries (including those receiving disability retirement
and survivors [including children]) receiving benefits on December 31, 2007,
under the retirement ordinance who selected the ad hoc cost of living adjustment
in the election conducted pursuant to section 2-210(b)(1); and
(v) Members who are police officers and firefighters who begin service with the
city on or after December 31, 2007.
b. Calculation of the ad hoc cost of living adjustment: Upon retirement, on the first
day of each January thereafter, an ad hoc cost of living adjustment may be made on
the pension of members who are subject to the ad hoc cost of living adjustment
pursuant to section 2-210(b)(3)a. The decision to authorize an ad hoc cost of living
adjustment will be determined as follows:
(i) Prior to December 31 of each year, the fund's actuary shall make a written
report to the board certifying the amortization period required to pay off the
unfunded actuarial accrued liability of the fund. Based on the information
provided by the actuary, the board shall:
1. Grant a compounded cost of living adjustment of four (4) percent, if
the actuary certifies that the amortization period required to pay off the
unfunded actuarial accrued liability of the fund, after granting the four (4)
percent cost of living adjustment, is eighteen (18.0) years or less;
2. Grant a compounded cost of living adjustment of three (3) percent, if
the actuary certifies that the amortization period required to pay off the
unfunded actuarial accrued liability of the fund, after granting the three (3)
percent cost of living adjustment, is between eighteen and one -tenth (18.1)
and twenty-four (24.0) years;
3. Grant a compounded cost of living adjustment of two (2) percent, if the
actuary certifies that the amortization period required to pay off the
unfunded actuarial accrued liability of the fund, after granting a two (2)
percent cost of living adjustment, is between twenty-four and one -tenth
(24.1) and twenty-eight (28.0) years;
4. Grant no cost of living adjustment if the actuary certifies that the
amortization period required to pay off the unfunded actuarial accrued
liability of the fund is twenty-eight and one -tenth (28.1) years or more.
(4) DROP and cost of living adjustment.
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a. If a member elects the ad hoc cost of living adjustment and by December 31,
2007, the member has completed at least two (2) years of service after making a
DROP election, the member's initial pension benefit upon retirement will also receive
a cost of living adjustment for the DROP period before the member made the ad hoc
cost of living election as set forth in section 2-210(b)(3). The ad hoc cost of living
adjustment will apply for the member's remaining DROP period.
b. If a member elects the two (2) percent cost of living adjustment, and by
December 31, 2007, the member has completed at least two (2) years of service after
making the DROP election, the member's initial pension benefit upon retirement will
also receive a cost of living adjustment for the entire DROP period as set forth in
section 2-210(b)(2).
c. A member who makes a DROP election but who does not complete at least two
(2) years of service after making the DROP election will only be eligible to receive a
cost of living adjustment after the member's retirement, based on the member's cost of
living election as set forth in section 2-210(b)(2) or section 2-210(b)(3).
(5) For members hired on or after July 1, 2011, who are not police officers or fire
fighters: Members and their beneficiaries will not be eligible to receive a cost of living
adjustment upon retirement.
(6) Eligibility for cost of living adjustment: To be eligible for a cost -of -living adjustment for
a particular year, either the member or any beneficiary must have been receiving benefits by
September 30th of the prior year.
SECTION 8.
Chapter 2, Article VI, Division 1, Section 2-211, ("Disability Pensions") of the
Retirement Ordinance is amended to read as follows:
Sec. 2-211. - Disability pensions.
(a) Definition of disability. A member is disabled (or continues to be disabled) if, because of
bodily injury, disease or mental illness, the member is incapacitated for life, in spite of
reasonable accommodations by the city, from performing the essential functions of (i) the trade,
profession or occupation in which the member was employed by the city when the member
suffered the bodily injury, disease, or mental illness and (ii) any other position which the board
determines to be reasonably comparable to the position held by the member, taking into account
the member's education, qualifications, experience, salary and other factors which the board
deems appropriate; provided, however, that no physical condition existing at the time of entry
into the fund shall be a basis for a disability pension prior to vesting.
(h) Gc'ncral provisions.
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(1) Such disability must exist for at least ninety (90) consecutive days prior to application
for a disability pension.
(2) Such disability must not have been contracted, suffered or incurred while the member
was engaged in, or did not result from the member having engaged in, a criminal enterprise,
or from habitual drunkenness, addiction to narcotics, self-inflicted injury, or from voluntary
or involuntary service in the Armed Forces of the United States (including the United States
Merchant Marine), any of its allies or any other foreign country.
(3) Notwithstanding the provisions of section 2-211(d) and section 2-211(e), no disability
pension shall, at the time of commencement, exceed the member's rate of earnings.
(4) To assist the board in making disability determinations, the city shall provide the
executive director with city job descriptions and qualifications, related salary ranges, and
other appropriate information as requested.
(5) Continuation of a disability pension, whether granted before or after the enactment of
this division, shall be subject to all the provisions of this section 2-211, including review
and determination of the member's eligibility for a disability pension.
(c) Qualification for disability pension.
(1) A member shall not qualify for a disability pension as hereinafter provided unless one
(1) or more duly licensed and practicing physician(s) appointed by the executive director
has determined that the member is not capable of performing the essential functions of the
positions identified under section 2-211(a)(i) and section 2-211(a)(ii.). Determination of the
existence of disability shall not be made until ninety (90) days after the date such disability
is alleged to have commenced, and benefits shall not commence before the first day of the
month following the month in which such ninety -day period ends.
(2) The executive director shall have the appointed physician(s) conduct an annual
medical examination after a disability pension has been granted (unless deemed not
necessary by the executive director due to the member's medical condition) and at any other
time deemed necessary by the board in order to determine whether the disability is
continuing. The fund will pay the expenses for medical examinations directed by the
executive director or board. To continue to receive a disability pension, the member shall
submit to any medical examination required by the executive director or board.
(3) If at any time the board is in reasonable doubt as to whether the member is disabled as
above defined, it may suspend the disability pension until the doubt is resolved, which shall
occur within a reasonable time. Any disability pension shall be terminated upon the board's
determination that the member is not disabled as defined in section 2-211(a).
(4) No disability pension coverage shall be provided during a service break in excess of
ninety (90) consecutive days unless the service break was caused by sickness or accident
leading to total disability.
(5) The disability pension specified herein shall not be payable during any period for
which wages are received from the city, the State of Texas or any other division of
Ordinance No. 20008-12-2011
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government while performing the duties of a firefighter or peace officer.
(6) Falsification or omission on any part of the employment application of prior
conditions or injuries for which a disability pension is or has been sought, falsification or
omission on any part of the disability pension application, or falsification or omission in
connection with the continuation of a disability pension shall constitute grounds for denial
of a disability pension or for revocation of any disability pension previously granted.
(7) The board's determination on all matters concerning the granting, refusing or revoking
of a disability pension shall be final and conclusive on all parties, and no appeal can be
made therefrom. A member is entitled to a reasonable hearing (at which the member may
appear in person, with or by a representative, or in writing) before the board makes its
determination.
(8) No disability pension shall be granted (or continued) while the member is working for
the city; provided however, a member may be granted a disability pension if the executive
director or the board has been informed by the city that the member's employment is about
to be terminated by the city because of the member's inability to perform the essential
functions of the member's position. Any such disability pension granted under this section
2-211(c)(8) shall not become effective until the month after the member has stopped
working for the city.
(9) Except as otherwise provided by law, to be eligible to continue receiving a disability
pension, a member must have complied with the medical recommendations (including
rehabilitation therapy and treatment) as prescribed by the member's treating physician(s),
the physician(s) appointed by the executive director and/or the Texas Rehabilitation
Commission.
(d) Disability in line of duty.
(1) For police officers, fire fighters and members hired prior to July 1, 2011, who are not
police officers or fire fighters:
a. For purposes of section 2-211(d)(1) a member is defined as a police officer, fire
fighter, and a member hired prior to July 1, 2011, who is not a police officer or fire
fighter.
b. If a member as defined in section 2-211(d)(1)a., whether or not vested, becomes
disabled as above defined while in line of duty, the member shall receive an annual
life pension, the amount of which shall be the specified percentage of the member's
compensation base multiplied by the member's total years of credited service which
would have accrued if the member had worked to the member's normal retirement
date, but not less than two hundred fifty dollars ($250.00) per month. For purposes of
the preceding sentence, the specified percentage of the member's compensation base
shall be two and seventy-five one -hundredths (2.75) percent, unless the member is
already eligible to retire on or after the member's normal retirement date, in which
case the specified percentage shall be three (3.0) percent.
Ordinance No. 20008-12-201 1
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(2) For members hired on or after July 1, 2011, who are not police officers or fire
fighters:
a. For purposes of section 2-211(d)(2), a member is defined as a member hired on
or after July 1, 2011, who is not a police officer or a firefighter.
b. If a member as defined by section 2-211 (d)(2)a., whether or not vested, becomes
disabled as above defined while in line of duty, the member shall receive an annual
life pension, the amount of which shall be the specified percentage of the member's
compensation base multiplied by the member's total years of credited service which
would have accrued if the member had worked to the member's normal retirement
date, but not less than two hundred fifty dollars ($250.00) per month. For purposes of
the preceding sentence, the specified percentage of the member's compensation base
shall be two and twenty-five one -hundredths (2.25) percent, unless the member is
already eligible to retire on or after the member's normal retirement date, in which
case the specified percentage shall be two and fifty one -hundredths (2.50) percent.
(e) Disability not in line of duty.
(1) For police officers, fire fighters and members hired prior to July 1, 2011, who are not
police officers or fire fighters:
a. For purposes of section 2-211(e)(1)b. a member is defined as a police officer, fire
fighter, and a member hired prior to July 1, 2011, who is not a police officer or fire
fighter.
b. If a vested member as defined in section 2-211(e)(1)a., becomes disabled as
above defined while not in line of duty, the member shall receive an annual life
pension, the amount of which shall be the specified percentage of the member's
compensation base multiplied by the member's total years of credited service to date of
actual retirement. For purposes of the preceding sentence, the specified percentage of
the member's compensation base shall be two and seventy-five one -hundredths (2.75)
percent, unless the member is already eligible to retire on or after the member's normal
retirement date, in which case the specified percentage shall be three (3.0) percent. If a
member becomes disabled while not in the line of duty before the member is vested,
then such member shall be entitled to receive a contribution refund in accordance with
section 2-208(a)(1).
(2) For members hired on or after July 1, 2011, who are not police officers or fire
fighters:
a. For purposes of section 2-211(e)(2)b. a member is defined as a member hired on
or after July 1, 2011, who is not a police officer or fire fighter.
b. If a vested member as defined by section 2-211(e)(1)a., becomes disabled as
above defined while not in line of duty, the member shall receive an annual life
pension, the amount of which shall be the specified percentage of the member's
compensation base multiplied by the member's total years of credited service to date of
actual retirement. For purposes of the preceding sentence, the specified percentage of
Ordinance No. 20008-12-201 1
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the member's compensation base shall be two and twenty-five one -hundredths (2.25)
percent, unless the member is already eligible to retire on or after the member's normal
retirement date, in which case the specified percentage shall be two and fifty one
hundredths (2.50) percent. If a member becomes disabled while not in the line of duty
before the member is vested, then such member shall be entitled to receive a
contribution refund in accordance with section 2-208(b)(1).
(f) Recovery from disability. If the board determines that a disabled member receiving a
disability pension hereunder is no longer disabled as above defined, the member's disability
pension shall immediately cease. If such member is re-employed by the city immediately
following such determination by the board, the member's fund membership shall be reinstated as
of the date of such re-employment, with full credited service to the date of disability. The
member shall receive no additional credited service for the period of disability, provided
however, that such period of disability shall be used to determine attainment of normal
retirement date and special retirement date. If such member is not re-employed by the city
immediately following certification of recovery, the member 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
the member's total contributions, plus regular interest (at the regular interest rate in effect on the
date of any refund), less the amount already received from the member's cash balance account, if
applicable, over the total of disability payments made to the member; provided, however, that if
such member had a vested interest in pension credits as of the date of which the member was
certified disabled, the member shall receive a vested termination pension from the later of the
date of certification of recovery or attainment of the vested retirement date under this division
equal to the amount which would have been payable under the provisions of section 2-208 had
the member terminated employment on the date the disability pension began. Any death benefits
thereafter shall be determined in accordance with section 2-212
(g) Report of earned income or net earnings from self-employment. Any disabled member who
has not attained normal retirement date or special retirement date and who is receiving a
disability pension shall submit to the executive director prior to May 1 of each year following
disability retirement a copy of the member's signed income tax return filed for the preceding
year, with all attachments thereto, along with all tax returns and attachments for all of the
member's affiliated entities, including, but not limited to, partnerships, corporations or other
entities in which the member, or any relative, owns any interest, including community or
separate property, and for which the member performs any services, whether compensated or
not, as proof of the member's earned income and net earnings from self-employment for that year
obtained from any occupation or employment. At the end of the first year of disability retirement
and by May 1 of each subsequent year, a disabled member shall also submit to the executive
director an affidavit on the executive director's approved form swearing that the member's earned
income and net earnings from self-employment are fully disclosed on the tax returns provided to
the executive director and that the disabled member has not received any other compensation,
directly or indirectly, for services rendered by the disabled member, nor performed any services
for which the member received no compensation except as disclosed in the affidavit, including
amounts paid to other affiliated entities for the benefit of the disabled member or to any relative
of the disabled member. If the Internal Revenue Service has approved an extension to file a tax
return and the tax return has not been filed by May 1, the member shall provide the executive
director with a copy of the extension by May 1, and a copy of the tax return with all attachments
Ordinance No. 20008-12-2011
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and the related affidavit, within two (2) weeks after the tax return has been filed.
If the member's total receipt of earned income, net earnings from self-employment, and city
disability retirement benefits exceed the annualized base hourly rate of pay the member would
have made during that same tax year had he or she remained employed by the city in the same
position then, as soon as practicable, the board shall reduce the amount of disability benefits to
be paid to the member. In reducing a member's disability pension due to such excess earnings,
the board shall consider the member's then current earnings, and attempt to recover the
cumulative excess earnings and preclude excess earnings in the future. In the event that a
member's disability pension is reduced in excess of the amount required, the board shall pay such
excess to the member. For purposes of section 2-211(g), base hourly rate of pay shall not include
overtime, acting, assignment, holiday, longevity, educational incentive, safety award, incentive,
shift differential or any other special or premium pay.
The board shall withhold a member's disability pension upon the member's failure to submit on a
timely basis the required income tax returns with all attachments thereto and related documents.
If the member subsequently provides the required documentation by the end of the calendar year
in which the return was due, the board shall cause the member's disability pension to be
reinstated, subject to the other provisions of this division and including the payment of any
previously withheld amounts, without interest. If the member fails to provide the required
documentation by the end of the calendar year in which the return was due, the member's
disability pension shall be terminated and the member shall not be entitled to any payment for
the period during which the documentation was not provided.
For purposes of section 2-211(g), any amounts paid to a member's affiliated entity in connection
with the performance of services by the member shall constitute "earned income," and any
attempt to circumvent the limitations under this division on earned income and net earnings from
self-employment through the use of affiliated entities shall be grounds for the board to terminate
the member's disability pension.
SECTION 9.
Chapter 2, Article VI, Division 1, Section 2-212, ("Death Benefits") of the Retirement
Ordinance is amended to read as follows:
Sec. 2-212. - Death benefits.
(a) 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 seventy-five (75) percent of the
member's pension, based on the number of years of credited service that would have accrued had
the member lived to the member's normal retirement date, but not less than two hundred fifty
dollars ($250.00). The surviving widow or widower shall also be entitled to the proceeds in the
member's cash balance account and a dollar for dollar match of the proceeds in member's cash
balance account plus a dollar for dollar match of the regular interest (at the regular rate in effect
Ordinance No. 20008-12-2011
Page 27 of 39
on the date of such payment) on the proceeds in the cash balance account, if applicable. Each
dependent child of such member under age eighteen (18) shall be entitled to receive a monthly
pension, the amount of which shall be one hundred dollars ($100.00), provided however, that if
no surviving widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this division, all such dependent children shall share equally a monthly pension, the
amount of which shall be seventy-five (75) percent of the member's pension, based on the
number of years of credited service that would have accrued had the member lived to the
member's normal retirement date, but not less than two hundred fifty dollars ($250.00), plus the
proceeds in the member's cash balance account, and a dollar for dollar match of the proceeds in
member's cash balance account plus a dollar for dollar match of the regular interest (at the
regular rate in effect on the date of such payment) on the proceeds in the cash balance account, if
applicable. If a member dies while in line of duty and 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 (75) percent of the member's accrued pension
projected to the member's normal retirement date, but not less than two hundred fifty dollars
($250.00), plus the proceeds in the member's cash balance account and a dollar for dollar match
of the proceeds in member's cash balance account plus a dollar for dollar match of the regular
interest (at the regular rate in effect on the date of such payment) on the proceeds in the cash
balance account, if applicable.
For purposes of section 2-212(a), a member's pension on or after normal retirement date shall be
calculated using a multiplier of three (3.0) percent.
(b) 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 (75) percent of the member's accrued pension but not less than
one hundred fifty dollars ($150.00) ), plus the proceeds in the member's cash balance account,
and a dollar for dollar match of the proceeds in member's cash balance account plus a dollar for
dollar match of the regular interest (at the regular rate in effect on the date of such payment) on
the proceeds in the cash balance account, if applicable. If a member was not vested on the date of
death, the surviving widow or widower shall be entitled to the return of all contributions which
the member paid into the fund during the member's life plus regular interest thereon (at the
regular interest rate in effect on the date of any payment to the widow or widower).
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 one hundred dollars ($100.00);
provided, however, that if no surviving widow or widower shall be entitled to receive a monthly
pension pursuant to the terms of this division, all such dependent children shall share equally a
monthly pension, the amount of which shall be seventy-five (75) percent of the member's
accrued pension, but not less than one hundred fifty dollars ($150.00), plus the proceeds in the
member's cash balance accountand a dollar for dollar match of the proceeds in member's cash
balance account plus a dollar for dollar match of the regular interest (at the regular rate in effect
on the date of such payment) on the proceeds in the cash balance account, if applicable.
If a member dies while in not line of duty and leaves no widow or widower or children eligible
to receive a benetit 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
Ordinance No. 20008-12-2011
Page 28 of 39
amount of which shall be seventy-five (75) percent of the member's accrued pension projected to
the member's normal retirement date, but not less than one hundred fifty dollars ($150.00), plus
the proceeds in the member's cash balance account and a dollar for dollar match of the proceeds
in member's cash balance account plus a dollar for dollar match of the regular interest (at the
regular rate in effect on the date of such payment) on the proceeds in the cash balance account, if
applicable.
For purposes of section 2-212(b), a member's accrued pension shall be calculated using a
multiplier of two and seventy-five one -hundredths (2.75) percent, unless the member had
reached the member's normal retirement date prior to death, in which event the multiplier shall
be three (3.0) percent.
(c) After retirement.
(1) For police officers, fire fighters and members hired prior to July 1, 2011, who are not
police officers and fire fighters:
a. For purposes of section 2-212(c)(1), a member is defined as a police officer, fire
fighter, and a member hired prior to July 1, 2011, who is not a police officer or fire
fighter.
b. Upon the death of a member as defined in section 2-212(c)(1)a., the surviving
widow or widower shall be entitled to receive a monthly pension, the amount of which
shall be seventy-five (75) percent 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 immediately prior to the member's retirement. Notwithstanding the preceding
sentence, a surviving widow or widower who was not married to the deceased member
for at least one (1) year immediately prior to the member's retirement shall be eligible
to receive a monthly pension if the member has elected to receive a reduced monthly
pension, on a form and subject to procedures developed by the executive director,
within six (6) months after the member's completion of two (2) years of marriage to
the member's spouse. The reduced monthly pension shall be actuarially determined in
a manner that is actuarially neutral to the fund, based on actuarial tables in effect on
the date of the member's election to receive a reduced monthly pension. If such an
election has been made, the surviving widow or widower shall receive a monthly
pension for life equal to seventy-five (75) percent of the member's reduced monthly
pension. Upon the death of a member who was not married at retirement, a
beneficiary designated by a member at retirement may be eligible to receive a monthly
pension if the member has elected to receive a reduced monthly pension, on a form
and subject to procedures developed by the executive director. The member's reduced
monthly pension shall be actuarially determined in a manner that is actuarially neutral
to the fund, based on actuarial tables in effect on the date of the member's election to
receive a reduced monthly pension. If such an election has been made, the member's
designated beneficiary shall receive a monthly pension for life equal to one hundred
(100) percent, seventy-five (75) percent fifty (50) percent, or twenty-five (25) percent
of the member's reduced monthly pension. If a member who was not married at
retirement and who selected a designated beneficiary pursuant to this section later
marries only the designated beneficiary would be entitled to receive a lifetime monthly
Ordinance No. 20008-12-2011
Page 29 of 39
pension.
c. Each dependent child under eighteen (18) years of age of such deceased Member
shall be entitled to receive a monthly pension, the amount of which shall be One
Hundred Dollars ($100.00) but shall cease upon the earliest of such child's death,
marriage or attainment of age eighteen (18); provided, however, that if no surviving
widow, widower, or designated beneficiary shall be entitled to a monthly pension
pursuant to the terms of the 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 or her death.
(2) For members hired on or after July 1, 2011, who are not police officers or fire
fighters:
a. For purposes of section 2-212(c)(2)., a member is defined as a member hired on
or after July 1, 2011, who is not a police officer or fire fighter.
b. Members who are married at retirement. Upon the death of a retired member as
defined by section 2-212(c)(2)a. the surviving spouse of the member may be eligible
to receive a monthly pension if the member has elected to receive a reduced monthly
pension, on a form and subject to procedures developed by the executive director of
the employees retirement fund. The member's reduced monthly pension shall be
actuarially determined in a manner that is actuarially neutral to the fund, based on
actuarial tables in effect on the date of the member's election to receive a reduced
monthly pension. Notwithstanding the preceding, a surviving spouse who was not
married to the deceased member at the time of the member's retirement shall be
eligible to receive a monthly pension if the member has elected to receive a reduced
monthly pension, on a form and subject to procedures developed by the executive
director, within six (6) months after the member's completion of two (2) years of
marriage to the member's spouse. The reduced monthly pension shall be actuarially
determined in a manner that is actuarially neutral to the fund, based on actuarial tables
in effect on the date of the member's election to receive a reduced monthly pension.
The member can elect for his or her surviving spouse to receive either one -hundred
(100) percent, seventy-five (75) percent, fifty (50) percent, or twenty-five (25) percent
of the member's reduced monthly pension.
c. Members who are not married on date of retirement:: Upon the death of a retired
member as defined by section 2-212(c)(2)a., who was not married at retirement, a
beneficiary designated by the member at retirement may be eligible to receive a
monthly pension if the member has elected to receive a reduced monthly pension, on a
form and subject to procedures developed by the executive director. The member's
reduced monthly pension shall be actuarially determined in a manner that is actuarially
neutral to the fund, based on actuarial tables in effect on the date of the member's
election to receive a reduced monthly pension. The member can elect for his or her
designated beneficiary to receive either one hundred (100) percent, seventy-five (75)
percent fifty (50) percent, or twenty-five (25) percent of the member's reduced
monthly pension. If a member who was not married at retirement and who selected a
designated beneficiary pursuant to this section later marries only the designated
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beneficiary would be entitled to receive a lifetime monthly pension.
d. Each dependent child under eighteen (18) years of age of such deceased Member
shall be entitled to receive a monthly pension, the amount of which shall be One
Hundred Dollars ($100.00), but shall cease upon the earliest of such child's death,
marriage or attainment of age eighteen (18) pursuant to the terms of the ordinance.
(d) If a terminated member entitled to a pension under the provisions of section 2-208 dies
before the member's pension commences, the member's designated beneficiary, or if none, the
member's estate shall receive an amount equal to the member's total contributions to the fund,
plus regular interest (at the regular interest rate in effect on the date of such payment), including
any proceeds in the member's cash balance account, if applicable. If the vested member's years
of age and years of credited service total at least sixty-five (65) as of the date of the member's
termination, the member's eligible dependents shall receive the benefit specified under section 2-
212(b), based on the pension to which the member would have been entitled as of the date of the
member's death, in lieu of the payment of contributions plus regular interest. If the member's
years if age and service did not total at least sixty-five (65) as of the date of the member's
termination, the member's eligible dependents may choose between the refund of contributions,
the payment of the survivor benefit at the date the member would have been eligible to draw the
benefit, or an immediate benefit at an actuarially reduced rate.
If such terminated member dies after the member's pension commences, the member's eligible
dependents shall receive the benefit specified under section 2-212(c).
(e) General provisions. If a deceased member leaves no widow, widower, designated
beneficiary, children or dependent parents eligible to receive a benefit hereunder, the member's
total contributions, plus regular interest (at the regular interest rate in effect on the date of any
such payment) less any amount previously paid to him or her from the fund, shall be paid to the
member's estate.
Payments to a child shall be made whether or not a widow, widower, designated beneficiary
survives and shall continue after the death of a widow or widower, but shall cease upon the
earliest of such child's death, marriage or attainment of age eighteen (18). Payments to a
dependent parent shall cease upon such parent's death. For purposes of this division, a parent will
be deemed to be dependent if the member provides over half of the parent's support. Payments to
a widow, widower or designated beneficiary shall continue after remarriage, but shall cease upon
the death of the widow, widower or designated beneficiary. Payments to a widow or widower
forfeited due to remarriage under prior provisions of this section will be reinstated upon written
request by the widow or widower, but no retroactive payments can be made. After payments
cease, any excess of the member's total contributions, plus regular interest at date of death over
disability and/or death benefits paid less any proceeds paid from the member's cash balance
account, if applicable, shall be paid to the member's estate.
Except as provided in section 2-212(d), death benefit coverage during service breaks in excess of
ninety (90) consecutive calendar days shall be limited to members who are absent due to service -
connected injury incurred while in the line of duty.
Benefits hereunder shall he payable on the first day of each month commencing with the month
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following the one (1) in which the member's death occurs. The board shall determine all
questions of dependency, and their determination shall be final and conclusive on all parties. All
unmarried, legitimate and legally adopted children under the age of eighteen (18) years, in the
absence of determination to the contrary, shall be considered dependent.
SECTION 10.
Chapter 2, Article VI, Division 1, Section 2-214, ("Administrations") of the Retirement
Ordinance is amended to read as follows:
Sec. 2-214. - Administration.
(a) Board of trustees. The 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
thirteen (13) trustees designated as Place 1, Place 2, Place 3, Place 4, Place 5, Place 6, Place 7,
Place 8, Place 9, Place 10, Place 11, Place 12, and Place 13, respectively. A trustee's term shall
be for two (2) years, subject to Section 2-214(a)(1)(i), Section 2-214(a)(2)(i), and Section 2-
214(a)(3). Trustees shall be elected as follows:
(1) Trustees elected by employees. Four (4) trustees who are vested, participating
members of the Fund, as defined by Article 6243i of the Texas Revised Civil Statutes, shall
be elected by the employees of the city, who are also members of the fund; said trustees
shall serve in Places 1, 2, 3, and 4 respectively. Each of the trustees shall be elected by one
of the employee groups as follows:
Place 1. The trustee for Place 1 shall be elected from Group A, which shall consist of
those members of the fund who are employed as police officers as defined by this
Chapter. 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 2. The trustee for Place 2 shall be elected from Group B, which shall consist of
those members of the fund who are employed as firefighters. Only members of the
fund who qualify for Employee Group B shall be eligible to vote for a nominee for
Place 2. Only members of the fund who qualify for Employee Group B shall be
eligible to serve on Place 2 of the board.
Place 3. The trustee for Place 3 shall be elected from Group C, which shall consist of
those members of the fund who are assigned to work in the following departments:
Water, , , Planning and Development, Budget ; Financial Management Services, City
Manager, City Secretary, , , Human Resources, Internal Audit, Legal, and Municipal
Court, including the Marshal's Office. Group C shall also include members of the fund
assigned to work in the Police Department who are not eligible to vote in Place 1.
Only members of the fund who qualify for Employee Group C shall be eligible to vote
for a nominee for Place 3. Only members of the fund who qualify for Employee Group
C shall be eligible to serve on Place 3 of the hoard.
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Place 4. The trustee for Place 4 shall be elected from Group D, which shall consist of
those members of the fund who are assigned to work in the following departments: IT
Solutions, , Housing and Economic Development, , , Library, Parks and Community
Service, Public Events, Public Health, Aviation, Code Compliance, , Equipment
Services, and Transportation and Public Works. Group D shall also include members
of the fund assigned to work in the Fire Department who are not eligible to vote in
Place 2. Only members of the fund who qualify for Employee Group D shall be
eligible to vote for a nominee for Place 4. Only members of the fund who qualify for
Employee Group D shall be eligible to serve on Place 4 of the board.
a. Term. In accordance with the nomination and election procedures prescribed in
this section, trustees shall be elected to Places 1, 2, 3, and 4, and shall serve for a two
(2) year term, subject to the following provisions. Trustees for Places 1 and 3 shall be
elected every odd numbered year beginning in 2007, and shall serve from September 1
of such odd numbered year through August 31 of the next odd numbered year.
Trustees for Places 2 and 4 shall be elected in 2007 to serve a term from September 1,
2007 through August 31, 2008. Thereafter, the Trustees for Place 2 and 4 shall be
elected every even numbered year and shall serve from September 1 of such even
numbered year through August 31 of the next even numbered year. Should the
employment status of any employee elected trustee change so that said trustee is no
longer a member of the employee group from which the trustee was elected, then said
trustee shall automatically forfeit the office of trustee. Should a vacancy occur, for
whatever reason, in Place 1, 2, 3, or 4, during the term thereof, then a majority of all
trustees remaining on the board shall appoint to the board a qualified employee from
the employee group whose place has been vacated, which qualified employee shall
serve the remainder of the unexpired term; provided, however, that if, at the time the
vacancy arises, more than one (1) year remains in the unexpired term, then in lieu of
the board appointing a replacement trustee, there shall be an election pursuant to the
nomination and election provisions set forth below, with the board making reasonable
modifications in the dates and time frames for the nomination and election in light of
the time of the vacancy.
b. Method of nominating members for election. Nominations of members for
election to the board of trustees shall be by petition only. Before May 31 of each
election year, the executive director shall make available to employees of each
employee group eligible to vote in the scheduled election petition forms with written
instructions. Petitions containing the names of nominees shall be returned to the
executive director prior to July 1 of said election year. Nominees may use copies of
the petition form or may create their own petition forms, provided each page of each
returned petition shall identify the name of the nominee, the department in which the
nominee is employed, the employee group of which the nominee is a member, and the
place on the board of trustees for which the employee 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 seventy-five (75) members of the employee group who
are qualified to vote for said place on the date said petition is submitted to the
executive director. Only those employees who are members of the fund shall be
Ordinance No. 20008-12-201 1
Page 33 of 39
entitled to be listed upon the official ballot as a nominee. No person's name shall be
placed upon the official ballot as a 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 2 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 3 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 4 unless that person is a member of
Employee Group D.
c. Method of electing member trustees. The executive director shall provide for an
election procedure as authorized by the board, including but not limited to voting by
mail, telephone, and electronic means, and which may be conducted by a third -party
voting service. The executive director shall prepare an official ballot for each place,
listing in alphabetical order according to surname the nominees for election to that
place. If, however, there is only one (1) nominee for any place, there shall be no
election for that place, and such nominee shall automatically be elected to the board of
trustees. 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 members no later than July 20 of the election year. Each
employee qualified to vote in said election shall vote for one (1) nominee only. Any
ballot containing votes of two (2) 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 cast no later than August 15. Votes cast by written ballot must be
returned no later than August 15 of the election year. If the ballot is returned by mail,
the envelope must be postmarked by August 15 of the election year. The executive
director or a designated third party 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
executive director shall submit the results 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 the nominee finishing second in the election shall be certified by the
board as elected to the board of trustees.
If there is more than one (1) nominee and no nominee receives a majority of the votes
cast for any one (1) place, or if there is a tie for any one (1) place, then a run-off
election shall be held, with ballots made available to the members qualified to vote for
that place no later than September 1 of the election year, and in the same manner as
prescribed 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 (2) 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 cast by September 20 of the election year. Votes cast by
written ballot must he returned by September 20. If a ballot is returned by mail, the
Ordinance No. 20008-12-2011
Page 34 of 39
envelope must be postmarked by September 20. The executive director or a
designated third party 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 election, the candidates who tie shall cast lots in
the presence of the board of trustees to determine which one (1) shall be declared
elected. Following the tabulation of votes in the run-off election, and the casting of
lots in case of ties, the executive director shall submit the results of same to the board
of trustees at a meeting to be held before November 1 of said election year, at which
time the board shall canvass the results of the run-off election 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 the nominee finishing second
in the election shall be certified by the board as elected to the board of trustees.
(2) Trustees elected by retired members.
Place 5. The trustee for Place 5 shall be elected by Retiree Group B, which shall
consist of those retired members of the fund from Employee Group B. Only members
of the fund who qualify for Retiree Group B shall be eligible to vote for a nominee for
Place 5. Only members of the fund who qualify for Retiree Group B shall be eligible
to serve on Place 5 of the board.
Place 6. The trustee for Place 6 shall be elected by Retiree Group A, which shall
consist of those retired members of the fund from Employee Group A. Only members
of the fund who qualify for Retiree Group A shall be eligible to vote for a nominee for
Place 6. Only members of the fund who qualify for Retiree Group A shall be eligible
to serve on Place 6 of the board.
Place 7. The trustee for Place 7 shall be elected by Retiree Group C, which shall
consist of those retired members of the fund from Employee Groups C and D. Only
members of the fund who qualify for Retiree Group C shall be eligible to vote for a
nominee for Place 7. Only members of the fund who qualify for Retiree Group C shall
be eligible to serve on Place 7 of the board.
a. Term. In accordance with the nomination and election procedures prescribed in
this section, a trustee shall be elected to Places 5, 6 and 7, and shall serve for a two-
year term. The Trustee for Place 6 shall be elected to serve a term from September 1,
2007 through August 31, 2008. Thereafter, the Trustee for Place 6 shall be elected
every even number year and shall serve from September 1 of such even numbered year
through August 31 of the next even numbered year. Trustees for Places 5 and 7 shall
be elected every odd numbered year beginning in 2007, and shall serve from
September 1 of such odd numbered year through August 31 of the next odd numbered
year. Should a trustee for Place 5, 6, or 7 return to city employment and again become
an employee member of the fund, the trustee shall automatically forfeit the office of
trustee for Place 5, 6, or 7. Should a vacancy occur in Places 5, 6 or 7, during the term
thereof, then a majority of all trustees remaining on the hoard shall appoint to the
Ordinance No. 20008-12-201 1
Page 35 of 39
board a retired member of Retiree Group A if the vacancy occurs in Place 6, a retired
member of Retiree Group B if the vacancy occurs in Place 5, or a retired member of
Retiree Group C if the vacancy occurs in Place 7, to serve the remainder of the
unexpired term.
b. Nomination of retiree members for election. Nomination of the retired members
for election to the board shall be by letter of nomination only. Before May 31 of each
election year, the executive director shall make available to retired members official
letter of nomination forms with written instructions. Copies of the letter of nomination
may be used. Completed letters of nomination shall be returned to the executive
director prior to July 1 of each election year. Each returned letter of nomination shall
identify the retired member being nominated for the place for which the retired
member is being nominated and must contain the signature and the last four digits of
the Social Security Number of the retired member making the nomination. Any
member of Retiree Group A receiving at least twenty-five (25) nominations from
Retiree Group A shall be considered a nominee for election to Place 5 on the board.
Any retired member of Retiree Group B receiving at least twenty-five (25)
nominations from Retiree Group B shall be considered a nominee for election to Place
6 on the Board. Any member of Retiree Group C receiving at least twenty-five (25)
nominations from Retiree Group C shall be considered a nominee for election to Place
7 on the board. No person shall be placed on the ballot as a nominee unless the person
is a retired member who is nominated by the process detailed above.
c. Election of retiree board members. The executive director shall provide for an
election procedure as authorized by the board, including but not limited to voting by
mail, telephone, and electronic means, and which may be conducted by a third -party
voting service. The executive director shall prepare official ballots for the election of
the retiree board members, listing the nominees in alphabetical order by surname.
Ballots for election of the retiree board members shall be made available to all retired
members in Retiree Group A, B and C no later than July 20. If there is only one (1)
nominee for Place 5, there shall be no election for Place 5, and the one (1) nominee
shall automatically be elected to the board of trustees. If there is only one (1) nominee
for Place 6, there shall be no election for Place 6, and the one (1) nominee shall
automatically be elected to the board of trustees. If there is only one (1) nominee for
Place 7, there shall be no election for Place 7, and the one (1) nominee shall
automatically be elected to the board of trustees. No person shall be elected as trustee
whose name does not appear on the official ballot as a nominee. To be considered
valid, a ballot must be cast no later than August 15 of the election year. Votes cast by
written ballot must be returned no later than August 15 of the election year. If the
ballot is returned by mail, the envelope must be postmarked by August 15 of the
election year. Each retired member qualified to vote in the election shall vote for one
(1) nominee only. Any ballot containing votes for two (2) or more persons, or for
persons who are not nominees as provided herein, shall be declared invalid and shall
not be counted. The executive director or a designated third party shall tabulate all
votes for all nominees. The nominees for each place receiving a majority of votes cast
shall be declared elected to the board of trustees. Following the tabulation of votes, the
executive director shall submit the results of same to the board of trustees meeting to
Ordinance No. 20008-12-2011
Page 36 of 39
be held before September 1 of the election year, at which time the board shall canvass
the results of the election and certify which nominees are elected to the board of
trustees. If, at the time of canvassing the results, a nominee receiving the majority of
votes is no longer eligible to serve, then the retiree receiving the second highest
number of votes from the appropriate retiree group will fill Place 5, 6 or 7 on the
board. That member shall serve from September 1 of the election year through August
31 of the next election year for that Place.
If there is more than one (1) nominee for a place and no nominee receives a majority
of the votes cast, or if there is a tie, then a run-off election shall be held, with ballots
made available to the retired members for that place no later than September 1 of the
election year and in the same manner as prescribed 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 (2) candidates who received the highest number of votes with
neither having a majority of votes cast, shall be printed on the ballot for the run-off
election. All ballots for the second election must be cast by September 20 of the
election year. Votes cast by written ballot must be returned by September 20 of the
election year. If a ballot is returned by mail, the envelope must be postmarked by
September 20 of the election year. The executive director or a designated third party
shall tabulate the votes for the candidates in the run-off election. The candidate
receiving the highest number of votes cast in the run-off election shall be declared
elected to the board of trustees. In the event of a tie vote at the second election, the
candidates who tie shall cast lots in the presence of the board of trustees to determine
which one (1) shall be declared elected.
Following the tabulation of votes in the run-off election, and the casting of lots in case
of ties, the executive director shall submit the results of same to the board of trustees
at a meeting to be held before November 1 of said election year, at which time the
board shall canvass the results of the run-off election 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, then
the retiree receiving the second highest number of votes from the appropriate Retiree
Group will f Place 5, 6 or 7 on the board. That member shall serve from September 1
of the election year to August 31 of the next election year for that place.
Board members appointed by the City Council.
Place 8. The trustee for Place 8 shall be a resident of the City of Fort Worth. A person
appointed under this subsection may not be a member of the City Council. The trustee
for Place 8 shall be appointed by a majority vote of the City Council to serve a term
initially commencing September 1, 2007 and ending August 31, 2008. Thereafter, the
person appointed by City Council shall serve a term of two (2) years (unless removed
sooner by a majority vote of the City Council) commencing on September 1 of every
even numbered year and ending August 31 of the next even numbered year. Should a
vacancy occur in Place 8, then City Council, by majority vote, shall appoint another
eligible resident of the City of Fort Worth to serve the remainder of the unexpired
term.
Ordinance No. 20008-12-2011
Page 37 of 39
Place 9. The trustee for Place 9 shall be a resident of the City of Fort Worth. A person
appointed under this subsection may not be a member of the City Council. The trustee
for Place 9 shall be appointed by a majority vote of the City Council to serve a term of
two (2) years (unless removed sooner by a majority vote of the City Council)
commencing on September 1 of every odd numbered year through August 31 of the
next odd numbered year. Should a vacancy occur in Place 9, then City Council, by a
majority vote, shall appoint another eligible resident of the City of Fort Worth to serve
the remainder of the unexpired term.
Place 10. The trustee for Place 10 shall be a resident of the City of Fort Worth. A
person appointed under this subsection may not be a member of the City Council. The
trustee for Place 10 shall be appointed by a majority vote of the City Council to serve
a term initially commencing on September 1, 2007, and ending August 31, 2008.
Thereafter, the person appointed by City Council shall serve a term of two (2) years
(unless removed sooner by a majority vote of the City Council) commencing on
September 1 of every even numbered year through August 31 of the next even
numbered year. Should a vacancy occur in Place 10, then City Council, by a majority
vote, shall appoint another eligible resident of the City of Fort Worth to serve the
remainder of the unexpired term.
Place 11. The trustee for Place 11 shall be a resident of the City of Fort Worth. A
person appointed under this subsection may not be a member of the City Council. The
trustee for Place 11 shall be appointed by a majority vote of the City Council to serve
a term of two (2) years (unless removed sooner by a majority vote of the City Council)
commencing on September 1 of every odd numbered year through August 31 of the
next odd numbered year. Should a vacancy occur in Place 11, then City Council, by a
majority vote, shall appoint another eligible resident of the City of Fort Worth to serve
the remainder of the unexpired term.
Place 12. The trustee for Place 12 shall be a resident of the City of Fort Worth. A
person appointed under this subsection may not be a member of the City Council. The
trustee for Place 12 shall be appointed by a majority vote of the City Council to serve
a term initially commencing September 1, 2007, and ending August 31, 2008.
Thereafter, the person appointed by City Council shall serve a term of two (2) years
(unless removed sooner by a majority vote of the City Council) commencing on
September 1 of every even numbered year and ending on August 31 of the next even
numbered year. Should a vacancy occur in Place 12, then City Council, by a majority
vote, shall appoint another eligible resident of the City of Fort Worth to serve the
remainder of the unexpired term.
Place 13. The trustee for Place 13 shall be the Chief Financial Officer of the City of
Fort Worth. Should a vacancy occur in Place 13, then City Council, by a majority
vote, shall appoint a qualified person to serve until a new chief financial officer is
appointed.
Ordinance No. 20008-12-201 1
Page 38 of 39
SECTION 11.
This ordinance shall be cumulative of all ordinances of the City of Fort Worth, which
shall remain in full force and effect except to the extent that provisions of this Ordinance are in
direct conflict with the provisions of such other ordinances, in which case the conflicting
provisions of such other ordinances are hereby repealed.
SECTION 12.
If any provision, section, paragraph, sentence, clause or phrase of this ordinance 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 the passage of this ordinance
that any portion of said ordinance was invalid, it would not have adopted such invalid ordinance.
SECTION 13.
The City Council finds that all acts, conditions and things required by provisions of the
Constitution of Texas and 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 14.
This ordinance shall be in full force and effect from and after its adoption.
AND IT IS SO ORDAINED:
ADOPTED: December 13, 2011
EFFECTIVE: December 13, 2011
APPROVED AS TO FORM AND LEGALITY:
G /
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Laetitia Coleman Brown
Assistant City Attorney
Ordinance No. 20008-12-2011
Page 39 of 39
City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 12/13/2011 - Ordinance No. 20008-12-2011
W • Wak.'�, •. w.M.....M ...>•* t.a. •_ � .. � � . .�..,...., ��, . �_:: �...�:..
DATE: Tuesday, December 13, 2011
LOG NAME: 12PENSION 2011
SUBJECT:
Adopt Ordinance Amending the Following Sections of Chapter 2, Article VI, Division 1, of the City Code,
Entitled Employees Retirement Fund, Sections 2-201, 2-202, 2-205, 2-207, 2-208, 2-209, 2-210, 2-211, 2-
212 and 2-214 (ALL COUNCIL DISTRICTS)
REFERENCE NO.: **G-17469
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance that amends Chapter 2, Article VI,
Division 1 of the City Code, entitled "Employees Retirement Fund" as follows:
1. Amend Section 2-201 to add the terms and definitions for line of duty and vested retirement date, to
delete the terms and definitions for trust agreement, trustee, and vested termination date, and to substitute
new definitions for alternative pension benefit, base pension, credited service, drop account, earnings,
normal retirement date, and vested termination pension.
2. Amend Section 2-202 to delete reference to disability retirement and to add the benefit eligibility
procedures for vested employees who terminate and then return to service with the City of Fort Worth;
3. Amend Section 2-205 to add procedures for the cash balance account;
4. Amend Section 2-207 to correct section references and to add eligibility procedure for the cash balance
account match upon retirement;
5. Amend Section 2-208 to add procedures for the cash balance account, to clarify the provisions of the
section, and to correct the age for vested termination pension;
6. Amend Section 2-209 to add procedures for the cash balance account;
7. Amend Section 2-210 to clarify the provisions of the section, to codify the Retirement Fund's
requirement for eligibility for a cost of living adjustment, and to delete section (c) which has been moved to
another section of the ordinance;
8. Amend Section 2-211 to correct section references, to clarify provisions of the section, and to add
procedures related to the cash balance account;
9. Amend Section 2-212 to add provisions related to the cash balance account, to reinstate the
dependent child benefit, to clarify provisions related to the survivor benefit, and to correct an error related
to dependent parent benefits for a member who dies while not in the line of duty; and
10. Amend Section 2-214 to provide for changes in departments for employee trustee elections, and to
delete sections related to the Board of Trustees that are preempted by state law requirements.
Logname: 12PENSION 2011 Page 1 of 2
DISCUSSION:
On December 6, 2011, the City Council received Informal Report No. 9453 in anticipation of these
proposed amendments to the Retirement Ordinance. The changes are administrative in nature and do not
change existing benefits.
On March 22, 2011, the City Council passed an amendment to the Retirement Ordinance which
established an overtime cash balance account for general employees hired after July 1, 2011. The new
amendments related to the cash balance account will provide the procedures for the administration of the
cash balance account.
Additional amendments will clarify sections of the Retirement Ordinance, and correct other sections to
provide clarity for the administration of the Plan.
Finally, the amendments delete provisions of the Retirement Ordinance which provide requirements for
the Retirement Office Staff and for the Retirement Fund Board of Trustees since Article 6243i of the Texas
Revised Civil Statutes grants that power exclusively to the Retirement Fund Board of Trustees.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for Citv Manager's Office bv:
Oriainatina Department Head:
Additional Information Contact:
Susan Alanis (8180)
Sarah Fullenwider (7606)
Laetitia Brown (6639)
Logname: 12PENSION 2011 Page 2 of 2