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HomeMy WebLinkAboutOrdinance 4861 FOFFICIALCORD ORDINANCE NO. TARY TEX. AN ORDINANCE AMENDING SECTION 16 OF ORDINANCE N 2999, BEING AN ORDINANCE ESTABLISHING A RETIREMENT PLAN FOR CERTAIN OFFICERS AND EMPLOYEES OF THE CITY OF FORT WORTH, TEXAS, BY PROVIDING FOR THE ADMINISTRATION OF THE FUND BY A BOARD OF TRUSTEES CONSISTING OF SEVEN (7) MEMBERS, DESIGNATING THE MANNER OF THEIR ELECTION OR APPOINTMENT, AND PRO- VIDING FOR THEIR RESPECTIVE TERMS OF OFFICE; PRO- VIDING A SAVINGS CLAUSE; MAKING THIS ORDINANCE CUMULATIVE; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Section 16 of Ordinance No. 2999 is hereby amended and, after being so amended, shall hereafter read as follows: Section 16. ADMINISTRATION 1. Board of Trustees The Fund created by this ordinance is a trust. This 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 seven (7) trustees desig- nated as Place 1, Place 2, Place 3, Place 4, Place 5, Place 6 and Place 7, respectively. Each trustee shall serve for a term of two (2) years_ Trustees shall be selected as follows: (a) Employee Members. Four (4) trustees who are members of the Fund shall be elected by the employees of the City of Fort Worth who are also members of the Fund, and said four (4) trustees shall serve in Places 1, 2, 6 and 7, respectively. The trustee presently serving in Place 1 shall complete his current term which ends on September 30, 1963; the trustee presently serving in Place 2 shall com- plete his current term which ends on September 30, 1964. The present Board shall promptly appoint an employee of the City of Fort Worth who is also a member of the Fund to serve in Place 6 until September 30, 1963; the present Board shall promptly appoint an employee of the City of Fort Worth who is also a member of the Fund to serve in Place 7 until September 30, 1964. Henceforth, two (2) trustees who are members of the Fund shall be elected, as aforesaid, before October 1 of each year to serve for a term of two (2) years, commencing the lst day of Octo- ber of the election year. No department of the City shall have more than one employee as a member of the Board of Trustees at any one time. (b) Members Appointed by Council. Two (2) trustees shall be appointed by the govern- ing body of the City of Fort Worth to serve in Places 3 and 4, respectively. The trustee presently serving in Place 3 shall complete his current term which ends on September 30, 1963; the trustee present- ly serving in Place 4 shall complete his current term which ends on September 30, 1964. At the expiration of each such term and thereafter, the governing body of the City of Fort Worth shall appoint trustees to Places 3 and 4 to serve for a term of two (2) years, commencing on the 1st day of October of the year of appointment. (c) City Secretary to Serve in Place 5. The trustee presently serving in Place 5 shall complete his current term, which ends on September 30, 1964. Thereafter, the person holding the position of City Secretary of the City of Fort Worth shall serve in Place 5 for as long as he continues to hold the position of City Secretary. 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 entirely newly elected or appointed members at any one time. The members of the Board of Trustees shall re- main in office until 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 require 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 business of the Board. Four members of the Board shall constitute a quorum to transact any business, but it shall re- quire not less than four affirmative votes to carry any matters before the Board. The Board shall have full power to make any and all rules and regulations pertaining to the Retirement Fund not inconsistent with this ordi- nance, the Constitution and the laws of the State of Texas or 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, includ- ing undistributed income. In acquiring, investing, reinvesting, exchanging, retaining, selling, super- vising and managing the funds held hereunder, the Board shall exercise the judgment and care under the circumstances then prevailing which men of ordi- nary prudence, discretion and intelligence exercise in the management of their own affairs, not in re- gard 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 fore- going 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, deben- tures and other corporate obligations, and stocks, preferred or common, which men of ordinary prudence, discretion and intelligence 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 total securities of such corporation held by the Fund having a value in ex- cess of five percent (5%) of the total value of the Fund, nor shall more than five percent (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 super- vise 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 carrying 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 dis- burse benefits. (e) Advising members annually of their stand- ing 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 per- sons shall be experienced in securities and invest- ment 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) review the investment procedures and policies being pursued by the Board in the ad- ministration 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 an- nual report 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 neces- sary for the operation of the Fund must be recommended by the City Manager and approved by the City Council. SECTION 2. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional, such holding shall not affect the validity of the remaining portions of this ordinance, and all of the remainder of this ordinance not so held to be unconstitutional shall continue to be in full force and effect. SECTION 3. This ordinance is hereby declared to be cumulative of all other ordinances of the City of Fort Worth relating to pen- sions, and this ordinance shall not operate to repeal or af- fect any of such other ordinances except insofar as the provi- sions thereof might be inconsistent or in conflict with the provisions of this ordinance, in which event such conflicting provisions, if any, in such other ordinance or ordinances are hereby repealed. SECTION 4. This ordinance shall take effect and be in full force and effect from and after the date of its passage and adoption, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: City Attorney