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HomeMy WebLinkAboutOrdinance 2999 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCES NUMBER 2266 AND 2666, WHICH ESTABLISHED A RETIREMENT PLAN FOR CERTAIN OFFICERS AND EM- PLOYEES OF THE CITY OF FORT WORTH; PROVIDING FOR MEMBERSHIP IN THE FUND, CITY AND EMPLOYEE CONTRIBUTIONS, SERVICE CREDITS, RETIREMENT PAYMENTS, DISABILITY PAYMENTS, DISABILITY FROM SICKNESS, DISEASE OR ACCIDENT WHETHER OR NOT IN LINE OF DUTY, DEATH BENEFITS BEFORE AND AFTER RETIREMENT, BENEFITS FOR SERVICE-CONNECTED INJURY RESULTING IN DEATH, WITHDRAWAL OF CONTRIBUTIONS BY PERSONS LEAVING THE SERVICE OF THE CITY VOLUNTARILY OR INVOLUNTARILY, AND STATUS OF A MEMBER WHO IS REEMPLOYED BY THE CITY AFTER SEVERANCE OR DISABILITY; PROVID- ING FOR APPOINTMENT OF A PLAN ADMINISTRATOR; DEFINING TERMS; REPEALING ORDINANCES IN CONFLICT HEREWITH; PROVIDING AN EF- FECTIVE DATE; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That Ordinance Number 2266, passed and adopted by the City Council on Wednesday, September 12, 1945, and Ordinance Number 2666, passed and adopted by the City Council on Wednesday, March 30, 1949, be amended and, after being amended, shall read as follows: SECTION 1. ACKNOWLEDGMENT OF CREATION OF THE FUND Acknowledgment is hereby made of the creation and eetablishment by a prior ordinance -oft 'Efte-Employees' Retirement Fund of the City of Fort Worth." SECTION 2. DEFINITIONS 1. "Credited service" shall mean the number of years and completed months of service for which a participating employee receives compensation from the City of Fort Worth up to the date of his actual retirement. 2. "Employees eligible for participation" in the Retirement Fund shall include all regular employees of the City of Fort Worth except the following employees who shall not be eligible for participation in the Retirement Fund: a. Elective officers and non-salaried, appointive mem- bers of administrative boards and commissions, except employee members of such boards. b. Persons employed under contrAct for a definite period or for performance of a particular, special service. c. Employees serving on a part-time basis of less than one- half time. -1- d. Employees who are paid in part by the County, State or other governmental agency, and only in part by the City. e. Employees of the Board of Education. f. Employees who retain membership in any other local mu- nicipal or State Retirement Fund. g. Persons carried on the payroll as temporary employees. Whether or not any employee is a temporary or permanent employee shall be determined by the record of the ap- pointment. Any employee, the department head, or any other interested person may appeal to the Board of Trustees of the Retirement Fund for a determination as to any person's eligibility to become a member of the Fund. 3. "City" shall mean the City of Fort Worth, Texas. 4. "Fund" shall mean "The Employees' Retirement Fund of the City of Fort Worth, Texas." 5. "Board" shall mean the Board of Trustees of the Employees' Re- tirement Fund of the City of Fort Worth, Texas. 6. "Administrator" shall mean the individual appointed by the Board of Trustees to supervise the operation of the Fund. 7. "Members" shall mean the eligible employees of the City of Fort Worth who are members of the Retirement Fund. 8. "Beneficiary" shall mean any person in receipt of a retirement benefit or any other benefit provided in the ordinance. 9. "Regular interest" shall mean interest at the rate of 2% per annum compounded annually from the end of the Plan year in which each contributiod is made up to the end of the Plan year preceding the date upon which such interest becomes payable. 10. "Retirement benefit" shall mean a pension for life, as pro- vided in the ordinance, payable each year in twelve equal monthly installments, beginning as of the date fixed by the Board in accordance with the provisions of this ordinance. 11. "Actuary" shall mean the individual or organization retained by the City to provide annual actuarial valuations of the Retirement Fund. -2- 12. "Actuarial tables" shall mean such tables of mortality, inter- est rates, turnover discounts, salary scales, etc., as shall be used by the Actuary with approval of the Board. 13. "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, total disability or'retirement. 14. The masculine pronoun, wherever used herein, shall include the feminine pronoun. 15. "Effective date" shall mean October 1, 1952. 16. "Fiscal year" shall mean the period from October let of one year through September 30th of the following year. The first fiscal period shall be from the effective date through Septem- ber 30, 1953. SECTION 3. MEMBERSHIP IN THE FUND Each employee eligible for participation in the Retirement Fund at the effective date of this ordinance shall automatically become a member of the Fund unless he files a written election not to become a member within thirty (30) days from such effective date. An employee on military leave may file an elec- tion not to become a member within thirty (30) days after reemployment; other- wise, he shall automatically become a member upon reemployment. Membership in the Fund shall be a condition of employment for all ttzture, eligible employees except Fire and Fire Alarm workers, However, no w person shall become a member in the future until he has passed a satisfactory physical examination prescribed by the Board of Trustees, and, upon acceptance, such new member shall make contributions, in accordance with the then-current schedule of contributions, back to the date of his employment. Employees of the City actively at work on the effective date of this ordinance who were eligible for membership in the Fund on January 1, 1946, but who, at the date of such eligibility, rejected membership shall be eligible to join the Amended Fund as of Octal)op,1,_1,952, and receive credit for all prior service except for the period between date of refusal and S`ep ember 36j,,4§�2. SECTION 4. MEMBERS' CONTRIBUTIONS Beginning on the effective date of this ordinance, or the effective date -3- of membership if later, and continuing until the date of his actual retirement or earlier termination of employment, each member shall contribute to the Fund five per cent (5%) of his salary. This contribution shall be made in the form of a deduction from compensation and shall be made notwithstanding that the net compensation paid in cash to such member shall be reduced thereby below the mini- mum prescribed by law. Each member shall be deemed to consent and agree to de- ductions made from his compensation, and payment to said member of compensation, less said deduction, shall constitute a full and complete discharge and acquit- tance of all claims and demands whatsoever for services rendered by such member during the period covered by such payment except as to the benefits provided for by this ordinance. The members' contribution provided for herein may be raised at any time from five per cent (5%) to a higher amount upon a vote in favor of such raise by seventy-five per cent (75%) of the members voting at such an election called for that purpose by the Board of Trustees; provided that such raise shall not be ef- fective unless the Governing Body of the City of Fort Worth shall, by ordinance or resolution, agree to contribute at least an equal percentage. This paragraph, however, shall not limit the right of the Governing Body of t$e City of Fort Worth, through its budget appropriation, to contribute up to twice the amount of the members' contributions, plus the cost of administration of the Fund. SECTION 5. CITY'S CONTRIBUTIONS Beginning on the effective date of this ordinance, the City shall con- tribute to the Fund seven and one-half per cent (71%) of the salaries of members. The Governing Body of the City of Fort Worth shall also cause to be in- cluded in the budget sufficient funds to pay the cost of the administration of the Retirement Fund, and such appropriation shall be in addition to the City's contribution to the Fund. In no event shall the City contribute less than the amount contributed by the members of the Fund, nor more than twice such amount, plus a sufficient amount to pay the cost of administration. SECTION 6. CREDITED SERVICE Pension credits shall be granted for all years and completed months of service for which a member of the Fund receives compensation from the City up .4. H to the date of his actual retirement, subject to the following regulations per- taining to service breaks: a. Authorized service breaks up to ninety (90) days shall not be deducted from credited service, provided member contributions are continued during such periods, in which event City contributions shall also be continued. b. Periods of absence in excess of ninety (90) days shall be deducted from credited service, and no contributions shall be made by members or by the City during such periods. c. An absence of twelve (12) or less consecutive months due to layoff or authorized leave shall be permitted without loss of prior service credits; a period of ab- sence exceeding twelve (12) months (except for bona fide illness or military service) shall cancel all prior service. d. A member who is absent because of bona fide illness shall not lose his eligibility for retirement, disability or death benefits, nor suffer loss of prior credited service while so absent, even though such absence exceeds twelve (12) months. Such absences beyond ninety (90) days shall, however, be deducted from years and months of service in computing percentage pension credits and in determin- ing total years of service to be credited in computing a minimum pension. e. Members absent for service in the Armed Forces of the United States or its allies shall be treated in all respects as employees on nonmilitary leave, except that the period of allowable absence shall be extended to cover the duration of such military service, plus one hundred twenty (120) days following discharge. f. For purposes of this section, service for fifteen (15) or more days in any month shall constitute a completed month of service; absence for fifteen (15) or more days in any month shall constitute a completed month of ab- sence. -5- SECTION 7. RETIREMENT DATES 1. Normal Retirement Normal retirement age shall be sixty (60) for females and sixty- five (65) for males, and a member shall. retire on the last day of the month in which such age is attained. 2. Early Retirement A meuoer who has reached age fifty-five (55) and completed twenty-five (25) years of credited service may retire at the end of a1y month thereafter and receive his accrued pension credits payatle in full commencing at normal retirement date or in reduced amount commaacing at an earlier date (as pro- vided in Section 91. 3. Date Retirement It is contemplated that a member shall retire on his normal retirement date. Upon his request, hoxever, and with written approval of the Beard, a member may continue his employment beyond normal retirement date, continue his contributions to the Fund, and accrue pension credits up to the date of his actual retirem-ent. Determir_ation of the right of a member to continue in service beyond his normal retirement date shall be made by the City Manager if the work being performed by the member is under his supervision, or by the Administrative Board if the work being performed by the member is under the supervision of an Administrative Board of the City. Such determination, if in the affirmative, shall be certified to the Board for approval or disapproval. If the Board ap- proves, the member may continue his employment so long as he is able to fulfill his duties, subject to annual review by the Board. If the City Manager or the Administrative Board determines that a member should be retired on his normal retirement date, the member may appeal to the Board, which shall have final authority to uphold or reverse the prior determination. SECTION 8. COMPENSATION BASE FOR DETER14INING BENEFITS Pension, death, and vested termination benefits shall be based upon the average gross monthly earnings received by a member during the last fifteen (15) or less calendar years of service with the City. -6- SSECTION 9. RETIREMENT PENSIONS 1. Pension Commencing on or after Normal Retirement Date A member who retires on or after his normal retirement date, or who re- tires early and requests commencement of his pension at normal retirement date, shall receive a monthly life pension, the amount of which shall be 1/60th of his compensation base multiplied by his total credited service to date of actual retirement, payable on the first day of each month commencing with the month following the effective date of retirement. 2. Pension Commencing at Early Retirement Date A member who retires early in accordance with the provisions of Section 7 and who elects to receive retirement income commencing prior to his normal re- tirement date shall receive a monthly life pension, the amount of which shall be 1/60th of his compensation base multiplied by his total credited service to date of early retirement, reduced by five-twelfths of one per cent for each month by which commencement of the pension antedates the member's normal retirement date. Such pension shall be payable on the first day of each month commencing with the month following the date of such early retirement. 3. Minimum Pensions The minimum pension payable at normal or late retirement date shall not be less than three dollars ($3.00) per month for each year of service between one (1) and ten (10), three dollars and fifty cents ($3.50) per month for each year between eleven (11) and twenty (20), and four dollars ($4.00) per month for each year between twenty-one (21) and thirty (30). For purposes of computing minimum pensions under this provision, if the fractional part of a member's total service equals six (6) months or more, he shall be credited with an addi- tional full year of service; otherwise, the months shall be disregarded. These minimum amounts shall be reduced for early retirement as provided under paragraph 2 of this section. 4. Pension Adjustments for Retired Members Beginning on the effective date of this ordinance, there shall be an adjustment upwards in the pensions payable to members who have retired since January 1, 1946, so that their retirement income shall be in accord with the -7- pension formula set forth in this section. This adjustment shall also be made in cases under which the minimum schedule prescribed in paragraph 3 hereof applies. Such adjustment, however, shall apply only to pensions payable through- out the lifetime of retired members and shall not include survivor benefits of any type to beneficiaries of such former employees. SECTION 10. TOTAL AND PERMANR7T DISiTILITY PENSIONS 1. Definition of Totel and Permanent Zisability A member shall be considered totally and permanently disabled if: a. He shall become disabled by bodily injury or disease so as presumably to be thereby continuously prevented for life from engagin in any occupation or perform- ing any work for remuneration or prcfit. b. Such disability has existed for at least ninety (90) consecutive days. c. Such disability was not contracted, suffered or in- curred while the member was engaged in, or did not result from his having engaged in, a criminal enter- prise, or from his habitual drunkenness or addiction to narcotics, or from self-inflicted injury, or from voluntary or involuntary service in the Armed Forces of the United States (including the United States Merchant Marine), any of its allies, or any other foreign country. 2. Qualification for Disability Pension A member shall qualify for a disability pension as hereinafter provided only after he has been certified to be totally and permanently disabled, in ac- cordance with the definition in paragraph 1 of this section, by a duly licensed and practicing physician appointed by the Board. Determination of the existence of total and permanent disability shall be made at the end of a ninety (90) day period from the date such disability is alleged to have commenced, and benefits shall not commence until the first day of the month in which such ninety (90) day period ends. -8- The Board shall have the right to have medical examinations made from time to time by a duly licensed and practicing physician to determine whether the disability is continuing. Any disability payment may be discontinued at any time by the Board on proof that the member is not totally or permanently disabled as above defined. The Board's determination on all matters concerning the granting, refusing or revoking of a disability payment shall be final and conclusive on all parties, and no appeal can be made therefrom except upon a showing of bad faith on the part of the Board. No disability benefit coverage shall be provided during a service break in excess of three (3) consecutive months unless the service break was caused by sickness or accident leading to total disability. The disability benefit specified herein shall not be payable during any period in which regular pay is continued by the City, the State of Texas, or any other division of government in accordance with the then-existing Civil Service Statutes. 3. Disability from Bodily Injury in Line of Duty If a member becomes totally and permanently disabled by bodily injury incurred while in line of duty, he shall receive a monthly life pension, the amount of which shall be 1/60th of his compensation base multiplied by his total credited service to date of disability, but not less than fifty dollars ($50.00) per month. "Total disability" as used in this paragraph shall mean total and perma- nent disablement caused by injury sustained in the course of the operations usual to his employment, and shall include all operations necessary, incident or appurtenant thereto or connected therewith, whether such operations are con- ducted at the usual place of employment, or elsewhere in connection with or in relation to his usual and customary employment. Employment shall be considered as starting at the time an employee reports for work in the morning, ceasing at the time he leaves for lunch and beginning again at the time he returns from lunch, and terminating for the day at the time he leaves in the evening. 4. Disability from Bod11v Injury Not in Line of Duty If a member becomes totally and permanently disabled by bodily injury incurred while not in line of duty after he has completed five (5) years of credited service with the City, he shall receive a monthly life pension computed as set forth in paragraph 3 of this section but with no minimum payment provided. -9- 5. Disability from Sickness or Disease If a member becomes totally and permanently disabled from sickness or disease (excluding social or venereal diseases, alcoholism or any disease or sickness resulting from or occasioned by the misconduct of such member) after he has completed five (5) years of credited service with the City, whether or not such disability is incurred while in line of duty, he shall receive a monthly life pension computed as set forth in paragraph 3 of this section but with no minimum payment provided. 6. Recovery from Disability If a disabled member receiving disability benefits hereunder is found to be no longer totally disabled upon examination as provided in paragraph 2 of this Section 10, his disability payments shall immediately cease. If such member is reemployed by the City immediately following certifica- tion of recovery, his Fund membership shall be reinstated as of the date of such reemployment, with full credited service to date of disability. He shall receive no pension service credits for the period of disability, but such period shall be counted in determining all requirements for length of credited service. If such member is not reemployed by the City immediately following certi- fication of recovery, he shall be considered as a terminated Fund member and shall have no further interest in the Fund other than a refund of any excess of his total contributions, plus regular interest over the total of disability pay- ments made to him; provided, however, that if such member had a vested interest in his pension credits as of the date on which he was certified totally disabled, he shall receive a pension from the date of certification of recovery (or from early retirement age, if later) equal to the amount which would have been payable under the provisions of Section 12 had he terminated his employment on the date his disability pension began. His death benefit thereafter shall be determined in accordance with Section 11, but the ten (10) year period following retirement date shall be deemed to have commenced on the date his disability pension began. SECTION 11. DEATH BENEFITS 1. Death befors Retirement Income Commences If a male member dies before retirement income begins, his widow and/or dependent children under age seventeen (17) shall be entitled, for a period not to exceed ten (10) years, to receive a monthly pension, the amount of which shall -10- be 1/60th of his compensation base multiplied by his total credited service to date of death. One-half of the pension so determined shall be paid to the widow and one-half to the children. When each child reaches age seventeen (17), his payment shall cease and thereafter be made to the remaining children or, if none, to the widow. If the deceased member leaves no widow, or if his widow dies or remarries, the full pension shall be paid to his children for the balance of the ten (10) year period, or until they reach age seventeen (17), if sooner. Pay- ments to a widow shall cease upon her remarriage. If a female member dies before retirement income begins, her dependent children under age seventeen (17), if any, shall be entitled to receive a month- ly pension, computed in accordance with the preceding paragraph, for a period of ten (10) years, or until they reach age seventeen (17), if sooner. Such pensions shall be payable on the first day of each month commencing with the month follow- ing the one in which death occurs. If a male member of the Fund leaves no widow or dependent children under seventeen (17) years of age, the total amount of his contributions plus regular interest, less any amount that may have been previously paid to him because of disability, shall be paid to his estate. If a female member dies without de- pendent children under age seventeen (17) before retirement income begins, her estate shall receive a similar benefit. The minimum death benefit to eligible dependents of employees killed in line of duty shall be fifty dollars ($50.00) per month. If all eligible dependents die or reach age seventeen (17) before expira- tion of the ten year period, the excess of the member's contributions, plus regu- lar interest at date of death over disability and/or death benefits paid, shall be paid to the member's estate. Death benefits to terminated vested members prior to commencement of pen- Sion payments shall be limited to a refund of their contributions plus regular interest payable to their estates, unless termination occurs after attainment of early retirement age. In the latter event, the death benefit prescribed above shall be payable. Death benefit coverage during service breaks in excess of ninety (90) days shall be limited to members who are absent due to service-connected injury incurred while in line of duty, the death benefit in such cases to be a pension for widows and dependent children under age seventeen (17) as determined above, but not less than a total of fifV dollars ($50.00) per month. -11- 2. Death after Retirement Income Commences If a male member dies after disability or retirement income has com- menced, his widow and/or dependent children under age seventeen (17) shall be entitled to receive a'continuance of his pension for any remaining part of a ten (10) year period following his retirement date. one-half of said benefit shall be paid to the widow and one-half to the children, as provided under paragraph 1 of this section. If he leaves no widow or if his widow dies or remarries, all benefits shall be paid to his children for the balance of the ten (10) year period, or until they reach age seventeen (17), if sooner. Payments to a widow shall cease upon her remarriage. If a female member dies after retirement income begins, her retirement payments shall continue to her children, if any, until they reach age seventeen (17) or until the expiration of the ten (10) year period, whichever first occurs. If a male member dies after retirement income begins and leaves no widow or dependent children under age seventeen (17), any excess of his contributions, plus regular interest at retirement date over the total retirement payments made to him, shall be paid to his estate. If a female member dies after retirement income begins and leaves no dependent children under age seventeen (17), her es- tate shall receive a similar benefit. If all eligible dependents die or reach age seventeen (17) before expira- tion of the ten (10) year period, the member's estate shall receive any excess of his contributions, plus regular interest as of retirement date over total retirement and/or death benefits paid. 3. Board to Determine Dependency of Children The Board shall-determine the dependency of children less than seventeen (17) years of age, and their determination in this connection shall be final and conclusive on all parties. All unmarried legitimate and legally adopted children under the age of seventeen (17) years, in the absence of a determination to the contrary, shall be considered dependents insofar as the payments under this ordinance are con- cerned. SECTION 12. TERMINATION BENEFITS AND VESTING Any member who is voluntarily or involuntarily separated from the service of the City during the first three (3) years of employment shall be entitled -12- r to receive the amount of his contributions without interest, less twenty-five dollars ($25.00). After three (3) but less than fifteen (15) years of service, the termination benefit shall be the amount of the memberts contributions plus regular interest, less twenty-five dollars ($25.00). No additional assessment shall be made against employees whose contribution refund does not equal twenty- five dollars ($25.00). A member who terminates after serving fifteen (15) years or more shall be entitled to receive a vested right of fifty per cent (50%) of the amount of pension earned to date of termination, which vested right shall increase in the amount of five per cent (5%) for each year served after fifteen (15) years, so that full vesting shall occur after twenty-five (25) years, regardless of age. The vested benefit shall be payable in full commencing at normal retirement date or in reduced amount (as prescribed under Section 9) commencing at early retire- ment age. A terminating member with a vested right may elect to receive a refund of his contributions, plus regular interest, in lieu of retirement benefits either at date of termination or at any time thereafter prior to commencement of retirement income, but by so doing he shall forfeit all rights under the Fund and thereafter be entitled to no further benefits thereunder. SECTION 13. PAYMENT OF BENEFITS The Treasurer of the City of Fort Worth shall be, ex-officio, the Treasurer of the Fund and shall: a. Act as official custodian of the cash and securities belonging to the Fund and provide adequate safe deposit facilities for the pres- ervation of such securities subject to the order of the Board; b. Receive all items of cash belonging to the Fund, including con- tributions of members, collect the interest on and the principal of all securities belonging to the Fund as such interest and prin- cipal become due and payable, deposit all such amounts in a special , x trust fund for the account of the Fund, and submit a monthly report to the Fund of all such transactions; and e. Yake payments for purposes specified in this ordinance in accordance with vouchers submitted pursuant to authorization of the Adminis- trator. The Treasurer shall have the same responsibility for as- -13- sets of the Fund in his possession as for funds of the City under his control, and all assets of the Fund shall be completely segre- gated and earmarked as belonging to the Fund. Benefits granted hereunder shall become payable only on or after the date of each individual employee's acceptance as a Fund member. Except for the adjusted retirement benefits granted members who have retired since January 1, 1946, as provided in Section 9, nothing herein contained shall be construed to authorize any benefit payments or adjustments of any kind to members of the Fund, employees of the City, or beneficiaries thereof on account of any death, retire- ment, disability, or termination which occurred prior to the date of this ordi- nance. In any case under the terms of this ordinance, where benefits are pay- able to a child and the Board determines that such child is unable or lacks the proper discretion to handle the benefits, the Board may direct such benefits to be paid to the child's natural guardian, who shall expend such benefits for the best interest of the child. SECTION 14. ACCOUNTS TO BE MAINTAINED The assets of the Retirement Fund shall consist of two separate unallo- cated accounts as follows: a. Actives Reserve Account to include City and employees' contributions plus earned income thereon. Contribution refunds to terminated members shall be paid from this account upon receipt by the City Treasurer of the Administrator's authorization as provided in Section 16. b. Retirements Reserve Account to consist of annual transfers from the Actives Reserve Fund to provide retirement, death, disability and vested termination benefits, such benefits being paid from this ac- count as authorized by the Administrator in accordance with Section M. SECTION 15. ANNUAL ACTUARIAL VALUATIONS The Board shall retain an Actuary for the purpose of providing annual valuations of the Retirement Fund, properly certified to the Board. The Actuary shall be appointed by the City Council upon recommendation by the Board. The actuarial tables used by the Actuary shall assume such interest, mortality, -14. s turnover, and other rates as the Actuary, with Board approval, shall from time to time determine. SECTION A. ADMINISTRATION 1. Board of Trustees The Fund created by this ordinance is a trust. This fund shall be ad- ministered by a Board to be known as the Board of Trustees of the Employees' Retirement Fund of the City of Fort Worth. The terms Of office of the members of the Board shall commence on October 1, 1952. The Board shall consist of five (5) members, who shall be selected as follows: a. Two members who are members of the Fund shall be elected by the employees of the City who are also members of the Fund. In the selection of the first two employee members of the Board, after the effective date of this ordinance, two places, designated as Place 1 and Place 2, shall be filled by the calling of an election by the Board. Place 1 shall be for a term of one (1) year, expiring on Septem- ber 30, 1953; Place 2 shall be for a term of two (2) years, expiring on September 30, 1954. Thereafter, one employee member shall be elected each succeeding year, prior to Octo- ber lst of that year, for a term of two (2) years, commencing October 1st of the election year. b. Two members shall be appointed by the Governing Body of the City of Fort Worth to two places designated as Places 3 and 4. The member appointed to Place 3 shall serve for a term of one (1) year, said term expiring on September 30, 1953; the member appointed to Place 4 shall serve for a term of two (2) years, said term expiring on September 30, 1954. Thereafter, the Governing Body of the City of Fort Worth shall appoint members to Places 3 and 4 to serve for a term of two (2) years. c. One member shall be selected and appointed by the Board it- self for a term of two (2) years. The first term of the mem- ber selected and appointed by the Board shall expire on Sep- tember 30, 1954, -15- Except for the terms of office of the first Board members elected and appointed after the effective date of this ordinance, all members of the Board shall hold office for a term of two (2) years, unless they are removed. It is the purpose of this ordinance that the terms of the members of the Board of Trustees be so regulated that the Board shall not consist of en- tirely newly elected or appointed members at any one time. The members of the present Board of Trustees shall remain in office un- til their successors are duly elected or appointed. The Board shall serve without remuneration and shall meet not less than once a month, and may meet at any time that the business of the Fund shall re- quire it. The Board shall elect its own chairman, and he shall have the power to call a meeting at any time that is necessary in order to carry out the busi- ness of the Board. Three members of the Board shall constitute a quorum to transact any busi- ness, but it shall require not less than three affirmative votes to carry any matters before the Board. The Beard shall hove fuJ.l power to make any and all rules and regulations pertaining to the Retirement Furd not inconsistent with this ordinance, the Con- stitution and the laws of the State of Texas, and consistent with the local civil service regulations. The Board shall be the trustee of the Fund and shall have full power, at its sole discretion, to invest and reinvest the assets of the Fund, including undistributed income. In acquiring, investing, reinvesting, exchanging, retain- ing, selling, supervising and managing the funds held hereunder, the Board shall exercise the Judgment and care under the circumstances then prevailing which men of ordinary prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income therefrom as well as the probable safety of their capital. Within the limitations of the foregoing standard, the Board is authorized to acquire and retain every kind of property, real, personal or mixed, and every kind of investment, specifically including but not by way of limitation, bonds, debentures and other corporate obligations, and stocks, preferred or common, which men of ordinary prudence, discretion and intel- ligence acquire or retain for their own account; provided that no securities of any one corporation shall ever be purchased if such purchase would result in the _16- total securities of such corporation held by the Fund having a value in excess of 5% of the total value of the Fund, nor shall more than 5% of the outstanding securities of any one corporation ever be purchased for or retained as an asset of the Fund. In administering the Fund and as to all other matters in connection with its administration, the decision of the Board shall be final and conclusive. 2. Administrator The Board shall name an Administrator to supervise the affairs of the Retirement Fund upon approval of the City Manager. The Board may also authorize the Administrator to select any required number of persons to assist him in carry- ing out his work. The duties of the Administrator shall include, but not necessarily be limited to, the following: a. Maintaining all records necessary in the administration of the Fund and the disbursement of benefits therefrom. b. Determining eligibility for benefit payments. c. Computing benefits payable. d. Authorizing the City Treasurer to disburse benefits. e. Advising members annually of their standing in the Fund with respect to benefits thereunder. 3. Investment Review Committee The City Council shall appoint an Investment Review Committee consisting of three (3) qualified persons to be selected from the Trust Departments of the banks of the City of Fort Worth. Such persons shall be experienced in securi- ties and investment matters. The Investment Review Committee shall be appointed for a two (2) year term. Such committee shall (a) review the investments of the Fund to determine their suitability and desirability for the Fund; (b) re- view the investment procedures and policies being pursued by the Board in the administration of the Fund; and (c) submit an annual report of its findings and recommendations to the Governing Body of the City of Fort Worth. Such annual re- port shall be made available to the Board and each of the members of the Fund. 4. Administrative Expenses All expenses of the Board or the Administrator necessary for the operation of the Fund must be recommended by the City Manager and approved by the City Council. -17- SECTION 17. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS The City of Fort Worth shall never be held liable or responsible for any claim or asserted claim for benefits under the provisions of this ordinance, but all claims shall be paid from the funds for which provision has been specif- ically made herein. No portion of this Fund shall, at any time before or after its disburse- ment, be held, seized, taken, subjected to or detained or levied upon by virtue of any execution, attachment, garnishment, injunction or other writ, order or decree, or any process or proceedings whatsoever issued out of or by any court for the payment or satisfaction, in whole or in part, of any debt, damage, claim, demand or ,judgment against any persons entitled to the benefits of this Fund, nor shall said Fund or any claim thereto be, directly or indirectly, assigned or transferred, and any attempt to transfer or assign same shall be void. SECTION 18. AMENDMENT OF ORDINANCE With the exception of the sections relating to contributions to the Fund by members and by the City, the City Council, consistent with the Constitution and laws of the State and the Charter of the City of Fort Worth, shall have the power and authority to amend any or all of the terms and provisions of this ordinance without submitting such amendment or amendments at an election of the qualified voters of said City or the qualified voters thereof entitled to vote on the question of the issuance of tax-supported bonds. SECTION 19. CONTROLLING POWER OF ORDINANCE The provisions of this ordinance shall be cumulative of and in addition to all other ordinances of the City of Fort Worth relating to pensions, which ordinances are hereby preserved and continued in force and effect, provided, however, that in the event of any conflict, the provisions of this ordinance shall control. SECTION 20. VALIDITY OF ORDINANCE If any provision, section, part, subsection, sentence, clause, phrase or paragraph of this ordinance be declared invalid or unconstitutional, the same shall not affect any other portion or provision hereof, and all other pro- -18- s visions 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 part. SECTION 21. PREREQUISITES TO ORDINANCE The City Council finds that all acts, conditions and things required by provisions of the Constitution of Texas and the Charter and Ordinances of the City of Fort Worth precedent to and in the adoption of this ordinance have been done, have happened and have been performed in proper and lawful time. SECTION 22. EMERGENCY CLAUSE The fact that the City of Fort Worth does not now have in operation an adequate retirement pension system for its officers and employees who have ren- dered long and faithful service to the City, many of whom are rapidly reaching that age where they are unable to render the kind and character of service that is required in a city of its size, creates an urgency and an emergency, in the interest of the preservation of the public peace, health, safety and general welfare, which requires that this ordinance take effect the 1st day of October, A. D. 1952, and it is so ordained. Adopted this day of September, A. D. 1952• �. r or the City or Fortor , Texas ATTEST: y Secretary of the City of ForV Worth, Texas APPROVED AS TO FORM: V`�_ L City Attorney of the City of Fort Worth, Texas -19-