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Home My WebLink AboutOrdinance 7317 ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NOS. 2999, 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556 AND 7056, WHICH ORDINANCES ESTABLISH AND PROVIDE FOR A RETIREMENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THE CITY OF FORT WORTH; PROVIDING FOR AN INCREASE IN INTEREST TO BE PAID ON CONTRIBUTIONS WITHDRAWN DURING A SERVICE BREAK; PROVIDING FOR RESTRICTING AWARDING DISABILITY PENSION AFTER NORMAL RETIREMENT DATE IS SURPASSED; MAKING THIS ORDINANCE CUMULATIVE; PRO- VIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That Ordinance No. 2999, passed and adopted by the City Council on Wednesday, the 24th day of September, A. D. 1952, as amended by Ordinance Nos. 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556 and 7056, be and the same is hereby amended and, after being so amended, the same shall be and read as follows: SECTION 1. That Subparagraph "c" of Section 6 of Ordinance Number 7056 of the City of Fort Worth (1974) , as amended, be and the same is hereby amended so that hereafter same shall read and be as follows: "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 absence ex- ceeding twelve (12) months [except for bona fide illness or military service as hereinafter provided for] shall cancel all prior service, except, however, if a member is absent for a period exceeding twelve (12) months, he may regain his prior service credits by remaining in active City employ- ment for a period equal to or greater than two (2) times the period of absence or ten (10) years, whichever is less, and repaying the total amount of all contributions with- drawn, plus five and one-half percent (5.5%) compound interest from the date of with- drawal to the date of repayment. SECTION 2, That Subsection 3 of Section 7 of Ordinance Number 7056 of the City of Fort Worth (1974) , as amended, be and the same is hereby amended so that hereafter same shall read and be as follows: "3. Late Retirement It is contemplated that a member shall retire on his normal retirement date. However, prior to retirement date, upon request of the member and with the written approval of proper authority, as hereinafter set forth, said member may continue his employment to a date not to exceed age sixty-eight (68) . A member who thus continues his employment shall continue to make contributions to the Fund, and pension credits shall accrue up to the date of actual retirement. Determination of the right of a member to continue in service beyond his normal retirement shall be made by the City Manager, if the work being performed by the member is under his supervision. Such determination, if in the affirma- tive, shall be certified to the Board of Trustees of the Employees' Retirement Fund for approval or disapproval. If the Board of Trustees approves, the member may continue his employment so long as he is able to fulfill his duties, subject to annual review by the board. Once a member surpasses his normal retirement date and the Board approves his continued employment so long as he is able to fulfill his duties, subject to annual review by the Board, the member shall be ineligible and shall not be entitled to receive a disability pension. SECTION 3. That this ordinance shall repeal every prior ordinance and provision of the Code of the City of Fort Worth (1964) , as -2- amended, in conflict herewith but only insofar as the portion of such prior ordinance or provision shall be in conflict, and as to all other ordinances or provisions of such Code not in direct conflict herewith, this ordinance shall be and is hereby made cumulative. SECTION 4. That if any section, part of a section or provision of any section of this ordinance shall be held to be void, ineffective or unconstitutional by a court of competent jurisidiction, the holding of such section, part of a section or provision of any section to be void, ineffective or un- constitutional for any cause whatsoever shall in no way affect the validity of the remaining sections and provisions of this ordinance, which shall remain in full force and effect. The City Council would not have passed any sections, parts of sections or provisions of any section of this ordinance that were unconstitutional, void or ineffective at the time of adopting this ordinance. SECTION 5. This ordinance shall be in full force and effect ninety (90) days from and after the date of its adoption and it is so ordained. APPROVED AS TO FORMAND LEGALITY: S. G. Johndroe, Jr. City Attorney of the City of Fort Worth, Texas ADOPTED: March 22 1976 EFFECTIVE: June 20, 1976 -3- TM.E UNE City of Dort Worth, Texas BAILIFF Mayor and Council Communication O u/C/icatiod 8i ORAMAN PRIORE DATE REFERENCE SUBJECT: PAGE NUMBER JOHMOROE 3/17/76 G- Amendment to Retirement Ordinance Iof 2 The Board of Trustees of the Employees' Retirement Fund voted to recommend approv- `�� "" al by the City Council of two amendments to the Retirement Ordinance No 7056 as discussed below. A copy of the proposed ordinance is attached. 1. Section 6, Paragraph c, "Credited Service", provides a means whereby a member who is absent for a period exceeding twelve months may regain his prior service credits "by remaining in active City employment for a period equal to or greater than two times the period of absence or ten years, whichever is less, and repaying the total amount of all contri- butions withdrawn, plus two percent compound interest from the date of withdrawal to the date of repayment." The consulting firm of actuaries assumes an income rate for the Fund of 51�*6. It could reasonably be presumed that the withdrawn contributions would have earned 5111y during the period involved had they remained available to the Fund for investment. 2. It is contemplated that every employee member shall retire on his normal retirement date. However, in Section 7, Paragraph 3, "Late Retirement", provision is made so that a member may continue his employ- ment to a date not to exceed age 68. The right of a member to continue his employment beyond normal retirement shall be determined by the City Manager, predicated upon his continued ability to fulfill the duties of his position of employment and so certified to the Board of Trustees. Because the present Retirement Ordinance does not address itself directly to the question as to whether a member employee on deferment (continuing employment) may be granted a disability pension, an opinion was sought from the Department of Law so that the Administrator and the Board of Trustees may be guided in their judge- ments relative to member employees who have already attained eligibility for normal retirement. The Department of Law responded, in part, as follows: "It is the opinion of the Department of Law that a member employee is not entitled to receive a disability pension from the Employees' Retirement Fund of the City of Fort Worth once he passes his "normal retirement date". As you know, the policy underlying a retirement pension is the rewarding of some kind of old age financial security to employees of the City of Fort Worth that have served the City for longer than twenty-five (25) years. The policy underlying a disability pension, on the other hand, is the granting of some W= kind of financial security for those unfortunate employees of the City of Fort Worth stricken in early or middle age with a disease or bodily injury that prevents them from ever again engaging in any occupation or performing any work for remuneration or profit. The policy consideration underlying the disability pension vanishes when an employee is healthy and fortunate enough to reach retirement age. DATE REFERENCE SUBJECT: PAGE NUMBER 3/17/76 G-2 Amendment to Retirement Ordinance 2 or 2 "Plainly and simply stated, a member employee under the provisions of City o Fort Worth Ordinance Number 7056 is not given the luxury of choosing whether he will receive a retirement pension or a disability pension." Recommendations It is recommended that the proposed changes to the Retirement Ordinance be adopted so that it will reflect: 1. An interest rate of Vie is to be applied to withdrawn contributions being repaid in order to regain prior service credit; and 2. The ineligibility of a deferred member from being granted a disability pension. RNL:ioa Attachment SUBMITTED BY: DISPOSITIO�I�..BY COUNCIL: PROC ED BY APPROVED OTHER (DESCRIBE) J �� ITY SECRETARY DATE CITY MANAGER �D %�