HomeMy WebLinkAboutResolution 3930-11-2010 A Resolution
NO. 3930-11-2010
TO NOTIFY THE BOARD OF TRUSTEES OF THE EMPLOYEES'
RETIREMENT FUND OF THE CITY OF FORT WORTH THAT THE
FORT WORTH CITY COUNCIL INTENDS TO CONSIDER AND VOTE ON AN
AMENDMENT TO THE RETIREMENT ORDINANCE THAT WOULD REQUIRE
AN ACTUARIALLY NEUTRAL SURVIVOR BENEFIT
WHEREAS, Article 62431 of the Texas Revised Civil Statutes applies to the
Employees' Retirement Fund of the City of Fort Worth, and
WHEREAS, Section 4.03 of Article 62431 of the Texas Revised Civil Statutes
requires the City Council to notify the Board of Trustees of the Employees' Retirement
Fund of the City of Fort Worth of City Council's intent to consider and vote on any
amendment to the administrative rules governing the Retirement Fund of the City of Fort
Worth that would reduce a benefit provided by the retirement system, and
WHEREAS, The City Council intends to consider and vote on an amendment to
the Retirement Ordinance that would provide for an actuarially neutral survivor benefit
for Non-Civil Service Employees who are hired on or after October 1, 2010.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
1. That this Resolution serve as Notification to the Board of Trustees of the
Employees' Retirement Fund of the City of Fort Worth that the Fort Worth City Council
intends to consider and vote on an amendment to the Retirement Ordinance that would
reduce a non-accrued benefit provided by the retirement system by requiring all Non-
Civil Service employees who are hired after October 1, 2010. to be entitled to an
actuarially neutral survivor benefit only.
Adopted this 9th day of November 2010.
ATTEST: APPROVED
CITY COUNCIL
B
y -------- -- ---------- -- NOV 0 9 2010
Marty Hendrix, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL a � N o: z ' }
DATE: Tuesday, November 09, 2010 REFERENCE NO.: G-17106
LOG NAME: 12RETSURVBENEFIT
SUBJECT:
Adopt a Resolution Notifying the Board of Trustees of the Employees' Retirement Fund of the City of Fort
Worth that the City Council Intends to Consider and Vote on An Amendment to the Retirement Ordinance
that Would Provide for an Actuarially Neutral Survivor Benefit for All Non-Civil Service Employees Who Are
Hired on or After October 1, 2010
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution notifying the Board of Trustees of
the Employees' Retirement Fund of the City of Fort Worth that the City Council intends to consider and
vote on an amendment to the Retirement Ordinance that would provide for an actuarially neutral survivor
benefit for all non-civil service employees who are hired on or after October 1, 2010.
DISCUSSION:
Currently, if a retiree who was married for at least one-year prior to retirement dies, their widow/widower is
entitled to receive 75 percent of the retiree's monthly pension for life. There is no provision of the
Retirement Ordinance that requires a retiree to accept a reduction in their monthly pension to receive the
benefit. During the City Council Budget discussions in 2010, the City Manager recommended that the
current survivor benefit be amended to provide for an actuarially neutral survivor benefit for all Non-Civil
Service employees (General Employees) hired on or after October 1, 2010. This ordinance amendment
will permit an employee who wants to select a beneficiary for the survivor benefit to do so provided that
the employee selects the beneficiary at retirement and the retiree must accept a reduced monthly
pension. Employees who are married at retirement can only select their spouse. Employees who are not
married at retirement, will be able to designate a beneficiary to receive the actuarially neutral survivor
benefit. This ordinance amendment would apply only to General Employees hired on or after October 1,
2010. This ordinance amendment would not apply to Civil Service Police and Fire employees, but it would
be part of the negotiations with the Police during Meet & Confer contract negotiations, and with Fire during
Collective Bargaining contract negotiations.
Since the recommended ordinance amendment is a benefit reduction for employees hired on or after
October 1, 2010, Section 6243i of the Texas Revised Civil Statutes, which applies to the Retirement Fund,
requires the City Council to provide 90 days notice to the Board of Trustees of the Employees' Retirement
Fund of the City of Fort Worth (ERF) of City Council's intent to consider and vote on the benefit reduction.
If adopted, this resolution would serve as notice to the Board of Trustees of the ERF of City Council's
intent to consider and vote the amendment to change the survivor benefit for General Employees hired on
or after October 1, 2010 at a meeting of the City Council to be held on or after February 15, 2011.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that that this action will have no material effect on
City funds.
Logname: 12RETSURVBENEFIT Pagel of 2
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: ALL ACMs (6222)
Originating Department Head: David Yett (7623)
Additional Information Contact: David Yett (7623)
Logname: 12RETSURVBENEFIT Page 2 of 2