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HomeMy WebLinkAboutOrdinance 6235ORDINANCE NO. AN ORDINANCE ESTABLISHING A FUND FROM WHICH LUMP SUM PAY- MENTS SHALL BE MADE UPON THE DEATH OF CERTAIN RETIRED McERS OF THE alPLOYEES RETIMIENT FUND OF THE CITY OF FORT WORTH; PROVIDING FOR APPROPRIATIONS; PROVIDING FOR THE CONDITIONS UNDER WHIQI PArMENTS SHALL BE DIADE; PRO- VIDING FOR THE ADIvaNISTRATION OF SUCH HIND; PROVIDING A SEVERABILITY CLAUSE; AND NAMING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, SECTION 1. That there is hereby created and established a fund designated as Retired Employees Group Death Benefit Fund from which lump sum pay- ments shall be made upon the death of certain retired members of the Employees Retirement Fund of the City of Fort Worth, Texas. SECTION 2. That on October 1, 1969, an appropriation of $75,000.00 to Fund No. 001, Activity No. 90005, Group Death Benefit, became effective all of which is recorded on Page 318 in the detailed 1969 -70 annual budget of the City of Fort Worth, as adopted by the City Council. That the City shall annually appropriate to the Retired Employees Death Benefit Fund established herein, such amount or amounts as may be µ necessary to provide the lump sum payments hereinafter set forth in Section 3 of this ordinance, and to maintain the Retired Employees Death Benefit Fund in an actuarially sound condition. Such appropriations shall be made from current revenues and in the event such current revenues are insufficient, the City shall compute, ascertain and levy an ad valorem tax sufficient to raise and produce the money required to appropriate and pay any additional sums which may become due during any such year. The City shall levy a sufficient tax from year to year to provide the revenue from which such appropriations may be made. SECTION 3. When a member of the Employees Retirement Fund of the City of Fort Worth dies subsequent to retirement from active employment with the City of Fort Worth, the surviving widow or widower shall be entitled to receive a lump sum payment (in addition to benefits provided under the retirement ordinances) of $1,000.00 if such member was covered immediately preceding retirement for $1,000.00 life insurance for a period of not less than five consecutive years under the City's Group Life Insurance Plan; $2,000.00 if such member was covered immediately preceding retirement for $3,000.00 life insurance for a period of not less than five consecu- tive years under the City's Group Life Insurance Plan; and $3,000.00 if such member was covered immediately preceding retirement for $5,000.00 life insurance for a period of not less than five consecutive years under the City's Group Life Insurance Plan. If the deceased member leaves no surviving widow or widower entitled to survivor's benefits under provisions of the retirement ordi- nances of the City of Fort Worth and was covered immediately preceding retirement for a period of not less than five consecutive years under the City's Group Life Insurance Plan, then, and in that event, a lump sum payment of $1,000.00 shall be made to the estate of the deceased member. The lump sum payment herein provided shall be made in lieu of any payments to which the survivors or estate of the deceased member would have been entitled under the City's Group Life Insurance Plan during the member's period of active employment with the City. SECTION 4. The Administrator of the Employees Retirement Fund of the City of Fort Worth shall be charged with the duty of making the lump sum pay- ments herein provided for and such payments shall be made solely from funds appropriated by the City Council for such purpose. The Administrator shall maintain such records as may be necessary in the administration of this ordinance. The Administrator shall maintain a special accounting of the funds heretofore and hereby appropriated and the Administrator shall not make any payments authorized hereunder from funds contributed by the employees or the City under the provisions of the retirement ordinances or from the earnings on such contributions. SECfICN S. The Board of Trustees of the Employees Retirement Fund shall act on behalf of the City Council of the City of Fort Worth as trustees -2- of the Fund under the same provisions, regulations and procedures as provided in retirement ordinances of the City for the investment of funds of the Employees Retirement Fund of the City of Fort Worth, and records of the Fund hereby created and all earnings on the assets of such Fund shall be maintained separate and apart from assets and earnings of the Employees Retirement Fund. SECTION 6. If any provision, section, part, subsection, sentence, clause, phrase or paragraph 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 passage that any portion of said ordinance was invalid, it would not have adopted such invalid part. SECTION 7. This ordinance shall be in full force and effect from and after January 1, 1970, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: Johndroe, Jr., City Attorney l�i , U MCNIANAN uNt 1R0RFH19 fL a s, Cifti.ri �Y� +� WOOD City of Fort Worth, Texas Mayor and council Communication DATE REFERENCE SUBJECT: Retired Employees Death Benefits PAGE NUMBER 1/26/70 G -1498 1 of 1 Since the establishment of the Employees Retirement Fund by the City of Fort Worth, the City has paid the full premiums for hospitalization and life insurance for retired City employees. In 1968 the City Council authorized a study by the actuaries of the Employees Retirement Fund of the cost to the City to provide a death benefit payment upon the death of a retired City employee similar and in lieu of the benefits provided by the group life insurance. The actuaries concluded that the cost to the City for such death benefit payment would be greater than the life insurance premiums at the present time but that in the future the cost would be much less than the life insurance premiums, and recommended that a death benefit payment be adopted. The City would continue to pay the group hospitalization premiums of the retired City employees. Attached hereto is an ordinance providing for appropriations and es- tablishing a fund from which such payments are to be made. Under the proposed ordinance present insurance coverage will be continued on presently retired employees. The provisions of the ordinance will apply to all employees retiring after January 1, 1970. It is recommended the ordinance be adopted. HDM:ms Attach. SUBMITTED BY: yi X161 CITY MANAGER DISPOSITION COUNCIL: PROCESSED BY C;-APPROVED ❑ OTHER (DESC)RIBE)/ 04 SECRET7CRY ✓ DATE _ -24�. ,,�1 i