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HomeMy WebLinkAboutOrdinance 5226 OtFl dk[ RECORD ORDINANCE NO. S�zz�, CITY SECRETARY FT. WORTH, TEX. AN ORDINANCE AMENDING ORDINANCES NOS. 2999, 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, and 4875, WHICH ORDINANCES ESTABLISH AND PRO- VIDE FOR A RETIREMENT PLAN AND BENEFIT'S THEREUNDER FOR CERTAIN OFFICIALS AND EMPLOYEES OF THE CITY OF FORT WORTH; PROVIDING FOR SERVICE BREAKS, RETIREMENT DATES, COMPENSATION BASE FOR DETERMINING BENEFITS, RETIRE- MENT PENSIONS, TOTAL AND PERMANENT DISABILITY PENSIONS, DEATH BENEFITS, AND TERMINATION BENEFITS AND VESTING; PROVIDING A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That Ordinance Number 2999, passed and adopted by the City Council on Wednesday, the 24th day of September, A. D. 1952, as amended by Ordinance Numbers 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, and 4875, be and the same is here- by amended, and, after being so amended, shall read as follows: SECTION 1. ACKNOWLEDGMENT OF CREATION OF THE FUND Acknowledgment is hereby made of the creation and establishment by a prior rdinance of "The 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 in- clude all regular employees of the City of Fort Worth except the follow- ing employees who shall not be eligible for participation in the Retirement Fund: a. Elective officers and non-salaried, appointive members of adminis- trative boards and commissions, except employee members of such boards. b. Persons employed under contract for a definite period or for per- formance of a particular, special service. c. Employees serving on a part-time basis of less than one-half time. d. Employees who are paid in part by the County, State or other govern- mental agency, and only in part by the City. -I- e. Employees of the Board of Education. f. Employees who retain membership in any other local municipal 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 appointment. 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' Retirement Fund of the City of Fort Worth, Texas. 6 "Administrator" shall mean the individual appointed by the City Manager subject to the approval of the Board of Trustees to supervise the opera- tion 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 two per cent (2%) per annum compounded annually from the end of the Plan year in which each contribution 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 provided in the ordinance, payable each year in twelve (12) equal monthly installments, beginning as of the date fixed by the Board in accordance with the pro- visions of this ordinance. 11. "Actuary" shall mean the individual or organization retained by the City to provide annual actuarial valuations of the Retirement Fund. 12. "Actuarial tables" shall mean such tables of mortality, interest rates, turnover discounts, salary scales, etc., as shall be used by the Actuary with approval of the Board. -2- F 13. "Termination of employment" shall mean complete se ance 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. "Fiscal year" shall mean the period from October 1st of one year through September 30th of the following year. SECTION 3. MEMBERSHIP IN THE FUND Membership in the Fund shall be a condition of employment for all eligible employees. No person employed in the future shall become a member of the Fund until he has passed a satisfactory physical examination prescribed by the Board of Trustees. Upon acceptance into the Fund, such new member shall make contri- butions back to the date of his employment in accordance with the then-current schedule of contributions. Firemen who were in the active employ of the City and were members of the Firemen's Relief and Retirement Fund on the effective date of legislation auth- orizing the inclusion of active Firemen in this Fund shall be granted pension credits for all years and completed months of service rendered as an employee of the City of Fort Worth prior to said effective date. Employees of the City who were actively at work on October 1, 1952,and who were eligible for membership in the Fund on January 1, 1946, but who at the date of such eligibility rejected membership and who joined the amended Fund as of October 1, 1952, shall receive credit for all prior service except for the period between the date of refusal and September 30, 1952. SECTION 4. MEMBERS' CONTRIBUTIONS Beginning on October 1, 1963, or the effective date 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 six per cent (6%) 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 -3- minimum prescribed by lawn Each member shall be deemed to consent and agree to deductions made from his compensation, and payment to said member of com- pensation, less said deduction, shall constitute a full and complete discharge .and acquittance 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 percentage provided for herein may be raised at any time from six per cent (6%) to a higher amount upon a vote in favor of such raise by seventy-five per cent (75%) of the members voting at an election called for that purpose by the Board of Trustees; provided that such raise shall not be effective unless the Governing Body of the City 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 the City, 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 October 1, 1963, the City shall contribute to the Fund an amount equal to nine per cent (9%) of the salaries of members. The Governing Body of the City shall also cause to be included in the budget sufficient funds to pay the cost of the administration of the Retirement Fundy 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. -4- 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 to the date of his actual retirement, subject to the following regulations pertaining 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 contri- butions shall also be continued. b. Periods of absence in excess of ninety (90) days shall be de- ducted 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 absence exceeding twelve (12) months (except for bona fide illness or military service as here- inafter provided for) shall cancel all prior service, except, how- ever, if a member is absent for a period exceeding twelve (12) months but not exceeding five (5) years, he may regain his prior service credits by remaining in active City employment for a period equal to or greater than five (5) times the period of absence and repaying the total amount of all contributions with- drawn, plus two per cent (2%) compound interest from the date of withdrawal to the date of repayment. 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 -5- in determining 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 shall be treated in all respects as employees on nonmilitary leave except those employees involuntarily recalled to active duty in time of a National Emergency. Members involuntarily recalled to active duty in the Armed Forces during a National Emergency shall be granted service credit for such absence, provided that such member resumes employment with the City within one hundred twenty (120) days after date of release to inactive duty or discharge and pro- vided further that such member has not withdrawn his contributions to the Fund. 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 absence. SECTION 3. RETIREMENT DATES 1. Normal Retirement A member°s normal retirement date shall be the last day of the month in which the earliest of the following occurs. a. Member completes thirty-five (35) years of credited service; b. Member reaches age sixty (60), if female, or age sixty-five (65), if male; or c. Member reaches age fifty-seven (.57), if female, or age sixty (60), if male, and has completed twenty-five (25) years of credited service. 2. Early Retirement A member who has reached age fifty-five (55) and completed twenty-five (25) years of credited service may retire at the end of any month there- after and receive his accrued pension credits payable in full commencing at normal retirement date or in reduced amount commencing at an earlier date (as provided in Section 9). ®6- • ' i 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, if a female under the age of sixty-three (63) or if a male under the age of sixty-eight (68), may continue his employment to a date not to exceed age sixty-three (63), if a female, or age sixty-eight (68), if a male. 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 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 of Trustees of the Employees' Retirement Fund for approval or disapproval. If the Board approves, the member may continue his employment so long as he is able to fulfill his duties, subject to annual review by the Board. SECTION 8. COMPENSATION BASE FOR DETERMINING BENEFITS Pension, death, and vested termination benefits shall be based upon the average of a member's highest five (5) calendar-year earnings during employment with the City. SR('.' JOK 9_ RETIREMENT PENSIONS 1. Pension Commencing on or after Normal Retirement Date A_ memberVgho retires on or after his normal retirement date, or who retires -7- shall receive on annual life pension, the amount of which shall be one and two-thirds per cent (1-2/3%) 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 last month for which such member receives compensation from the City. 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 retirement date shall receive a monthly life pension, the amount of which shall be one and two-thirds per cent (1-2/3%) of his compensation base multiplied by his total credited service to date of early retirement, re- duced by five-twelfths per cent (5/12%) for each month by which commence- ment of the pension antedates the earlier of member's reaching age sixty (60) if male or fifty-seven (57) if female, or completing thirty-five (35) years of credited service. Such pension shall be payable on the first day of each month commencing with any month following the last month for which such member receives compensation from the City. SECTION 10. TOTAL AND PERMANENT DISABILITY PENSIONS 1. Definition of Total and Permanent Disability 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 engaging in any occupation or performing any work for remuneration or profit; b. Such disability has existed for at least ninety (90) consecutive days; and, c. Such disability was not contracted, suffered or incurred while the member was engaged in, or did not result from his having engaged in, a criminal enterprise, 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 (includ- ing the United States Merchant Marine), any of its allies or any other foreign country. . g- 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 accordance with the definition in Paragraph 1 of this Section, by a duly licensed and practicing physician appointed by the Board. Determina- tion 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 following the month in which such ninety (90) day period ends. 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 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. 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 for 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 while in line of duty, he shall receive an annual life pension, the amount of which shall be one and two-thirds per cent (1-2J3%) of his compensation base multi- plied by his total credited service to date of disability, but not less than One Hundred Fifty Dollars ($150.00) per month. -9- "Total disability," as that term is used in this paragraph, shall mean total and permanent disablement caused by injury sustained in the course of the operations usual to a member's employment, and shall in- clude all operations necessary, incident or appurtenant thereto or connected therewith, whether such operations are conducted 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, ceas- ing at the time he leaves for lunch, beginning again at the time he returns from lunch, and terminating for the day at the time he leaves in the evening. 4. disability Not in Line of Duty If a member becomes totally and permanently disabled while not in line of duty, he shall receive a monthly life pension computed as set forth in Paragraph 3 of this Section, except that a minimum of Fifty Dollars ($50.00) shall apply. 5. Recovery from Disability If a disabled member receiving disability benefits hereunder is found to be no longer totally disabled upon examination as provided in Para- graph 2 of this Section, his disability payments shall immediately cease. If such member is reemployed by the City immediately following certification 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 require- ments for length of credited service. If such member is not reemployed by the City immediately following certification 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 payments made to him; provided, however, that if such -10- 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 later of the date of certification of recovery or attainment of age fifty-five (55) 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. SECTION 11. DEATH BENEFITS A. Death Benefit for Members Retiring before April 1, 1963 1. Joint and Survivor Option A member retiring or becoming totally and permanently disabled before April 1, 1963 may elect to have his pension reduced in accordance with the following table in order to secure for his eligible dependent, as herein defined, a continuing income after his death: Relative Age of Percentage of Basic Monthly Dependent to Member Pension Payable to Both Parties 15 years younger 68.0 14 years younger 69.4 13 years younger 70.8 12 years younger 72.2 11 years younger 73.6 10 years younger 75.0 9 years younger 76.4 8 years younger 77.8 7 years younger 79.2 6 years younger 80.6 5 years younger 82.0 4 years younger 83.4 3 years younger 84.8 2 years younger 86.2 1 year younger 87.6 Same Age 89.0 1 year older 90.4 2 years older 91.8 3 years older 93.2 4 years older 94.6 5 or more years older 96.0 -11- 2. Definition of B1iRible Dependent An "eligible dependent," for purposes of the optional pension elections herein provided for, is defined as follows, a. A married male member may elect only his wife as his dependent under this option. A wife qualifies as a dependent if (a) she is not more than fifteen (15) years younger than her husband, and (b) she has been legally married to him for at least one (1) year. A widow will cease to be an eligible dependent if she remarries after the death of the deceased male member. b. A married female member may elect only her husband as her dependent. _--A husband qualifies as a dependent if (a) he is not more than fifteen (15) years younger than his wife, (b) he has been legally married to her at least one (1) year, and (c) he is either totally and permanent- ly disabled or has reached age sixty-five (65). A widower will cease to be an eligible dependent if he remarries after his wife's death. c. An unmarried member with a legitimate or legally adopted child or children may elect only such child or children as his -0ependent. A rh{:a qualifies as a dependent it he either is under age seventeen (17) or became totally and permanently disabled before age seventeen (17). If a child is more than fifteen (15) years younger than the member, the percentage of monthly pension payable to both parties will be computed by reducing sixty-eight per cent (68%) by one and four-tenths per cent (1.4%) for each year by which the age differ- ence exceeds fifteen (15). Unless disabled, a child will cease to be an eligible dependent upon attainment of age seventeen (17), and in any event will cease to be an eligible dependent upon marriage. d. An unmarried member without a legitimate or legally adopted child or children may elect only his parent or parents as his dependent. A parent qualifies as a dependent if he is either totally and per- manently disabled or has reached age sixty-five (65). 3. Death Benefit Option An eligible dependent of (a) a deceased member whose eligible dependent was receiving benefits when Ordinance No. 4430 was adopted, (b) a retired -12- member who subsequently dies, or (c) an active member who subsequently dies prior to exercising a Joint and Survivor Option shall have the option of receiving the death benefit provided for prior to the adoption of said Ordinance (payment or continuance of the member's pension for the remaining part of a ten (10) year period following the death or retire- ment of said member, whichever is applicable) or a life annuity (subject to automatic cancellation upon remarriage) computed in accordance with the following table: Relative Age of Percentage of Basic Monthly Dependent to Member Pension Payable to Dependent 15 years younger 43.5 14 years younger 44.0 13 years younger 44.5 12 years younger 45.0 11 years younger 45.5 10 years younger 46.0 9 years younger 46.5 8 years younger 47.0 7 years younger 47.5 6 years younger 48.0 5 years younger 48.5 4 years younger 49.0 3 years younger 49.5 2 years younger 50.0 1 year younger 53.0 Same Age 56.0 1 year older 59.0 2 years older 62.0 3 years older 65.0 4 years older 68.0 5 or more years older 71.0 If an eligible dependent child is more than fifteen (15) years younger than a member, the percentage of monthly pension payable to such child shall be computed by reducing forty-three and one-half per cent (43.5%) by one-half per cent (0.5%) for each year by which the age difference exceeds fifteen (15). 4. General Provisions Election of a Joint and Survivor Option under Paragraph 1 hereof may be made, rescinded, or changed by a member at any time prior to the date on which his pension is to commence. Election of a Death Benefit Option under Paragraph 3 must be made by an eligible dependent within three (3) months following a member's death. -13- Until such election is, made, no death benefits shall be payable, and if the dependent faills.ta make an election before the expiration of the three (3) month parioa, his right to elect a life annuity shall be irre- vocably waived and the Meath benefit provided for prior to the adoption of Ordinance No. 4430 shall be paid. Optionnall pension and death benefit elections shall be made in writing on the form or forms specified by the Board. Proof of age and such other information as may be required for determining the amount of the optional benefit shall be furnished to the Board upon its request. If an eJigiblt dies before the date on which a member's pension under a Joint and Survivor Option is to commence, the election shall be of no affect, and the member shall be treated the same as though he had not elected an option. If an eligible depeh6eut dies on or after the date on which a member's pension under a Joint aLd Survivor Option is to commence, the election shall continue in force, and the mount of the member's pension shall not be increased thereby. If a widow or widower receiving a pension under one of the foregoing options predeceases a legitimate or legally adopted child or children under age seventeen (17)), such child or children will receive the pension until age seventeen (13). The Board of Trustees of the Employees' Retirement Fund of the City of Fort Worth shall determine the de?endency of children, and its determina- tion in this cosmnectian shall be final and conclusive. B. Death Benefit for Active MembeLa and Members Retiring after May 31,.,1963 1. while in Itnne of Duty If a male member (or a female member with a dependent husband) dies before retirement while in ;line of duty, the surviving widow (or widower) shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per cent (75%) of the member's accrued pension, but not 'Iris than One Hundred Dollars($100.00). -14- Each dependent child of such male member (and each dependent child of such female member) under age eighteen (18) shall be entitled to receive a monthly pension, the amount of which shall be Twenty Dollars ($20.00). The combined maximum monthly pension payable to a surviving widow (or widower) and one or more children eligible to receive a benefit hereunder shall be the larger of One Hundred and Fifty Dollars($150.00) or seventy-five per cent (75%) of the member°s accrued pension. If a member who dies while in line of duty leaves no widow (or widower) or children eligible to receive a benefit hereunder but is survived by a dependent parent or parents, such dependent parents (or the surviving depend- ent parent) shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per cent (75%) of the members accrued pension, but not less than One Hundred Dollars ($100.00). 2. While Not in Line of Duty If a male member (or a female member with a dependent husband) dies before re- tirement while not in line of duty, the surviving widow (or widower) shall be entitled to receive a monthly pension, the amount of which shall be seventy- five per cent (75%) of the member°s accrued pension, but not less than Fifty Dollars ($50.00). Each dependent child of such male member (and each dependent child of such female member) shall be entitled to receive a monthly pension, the amount of which shall be Twenty Dollars ($20.00). The combined maximum monthly pension payable to a surviving widow (or widower) and one or more children eligible to receive a benefit hereunder shall be the larger of Fifty Dollars ($50.00) or seventy-five per cent (75%) of the member°s accrued pension. If a member who dies before retirement but not in line of duty leaves no widow (or widower) or children eligible to receive a benefit hereunder but is survived by a dependent parent or parents, such dependent parents (or the sur- viving dependent parent) shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per cent (75%) of the member's accrued pension, but not less than Fifty Dollars ($50.00). -15- 3. After Retirement Upon the death of a retired male member (or of a retired female member with a dependent husband), the surviving widow (or widower) shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per cent (75%) of the pension being paid to the member. Each child of such deceased retired male member (and each dependent child of. such deceased retired female member) shall be entitled to receive a monthly pension, the amount of which shall be Twenty Dollars ($20.00). The combined maximum monthly pension payable to a surviving widow (or widower) and one or more children eligible to receive a benefit hereunder shall be an amount not to exceed the pension being paid to the member at his death. If a deceased member leaves no widow (or widower) or children eligible to receive a benefit hereunder but is survived by a dependent parent or parents, such dependent parents (or the surviving dependent parent) shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per cent (75%) of the pension being paid to the member at his death. 4. After Vested Termination If a terminated member entitled to a pension under the provisions of Section 12 dies before his pension commences, his estate shall receive an amount equal to his total contributions to the Fund, plus regular interest; pro- vided, however, that if he was eligible for early retirement on the date as of which his employment terminated, his eligible dependents shall receive the benefit specified under Paragraph 3 of this section, based on the pension to which he would have been entitled as of the date of his death. If such terminated member dies after his pension commences, his eligi- ble dependents shall receive the benefit specified under Paragraph 3 of this section. 5. General Provisions If a deceased member leaves no widow (or widower), children, or dependent parents eligible to receive a benefit hereunder, his total contributions, plus regular interest, less any amount previously paid to him because of disability, shall be paid to his estate. -16- Payments to a child shall be made whether or not idow survives and shall continue after the death of a widow but shall cease upon the earliest of such child's death, marriage or attainment of age eighteen (18). Payment to a widow, widower, or parent shall cease upon the earlier of such person's death or marriage After all payments cease, any excess of the member's total contributions, plus regular interest, at date of death over disability and/or death benefits paid shall be paid to his estate. 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. Benefits hereunder shall be payable on the first day of each month com- mencing with the month following the one in which the member's death occurs. The Board shall determine all questions of dependency, and their determination shall be final and conclusive on all parties. All unmarried, legitimate, and legally adopted children under the age of eighteen (18) years, in the absence of a determination to the contrary, shall be considered dependent. SECTION 12. TERMINATION I3NATION BENEFITS AND VESTING Any member who is voluntarily or involuntarily separated from the service of the City before be completes three (3) years of credited service shall be entitled to re- ceive the amount of his contributions without interest, less Twenty-Five Dollars ($25.00). After three (3) but before completion of fifteen (15) years of credited service, the termination benefit shall be the amount of the member's contributions, plus regular interest, less Twenty-Five Dollars ($25.00). In cases where the position held by the member has been abolished, the Twenty-Five Dollar ($25.00) charge shall not be deducted. 'No additional assessment shall be made against employees whose con- tribution refund does not equal Twenty-Five Dollars ($25.00). -17- A member who resigns or is terminated after completing U. teen (15) years or more of credited service shall be entitled to receive a vested right of one hundred per cent (100%) of the amount of pension earned to date of termination, payable in full at age sixty-five (65) if male or at age sixty (60) if female, or in reduced amount commencing at age 55, said reduction to be five-twelfths per cent (5/12%) for each month by which commencement of the pension antedates age 65 if male or age 60 if female. Any 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 hereunder. 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 preservation of such securities subject to the order of the Board; b. Receive all items of cash belonging to the Fund, including contributions of members, collect the interest on and the principal of all securities belonging to the Fund as such interest and principal become due and pay- able, deposit all such amounts in a special trust fund for the account of the Fund, and submit a monthly report to the Fund of all such transactions; and C. Make payments for purposes specified in this ordinance in accordance with vouchers submitted pursuant to authorization of the Administrator. The Treasurer shall have the same responsibility for assets of the Fund in his possession as for funds of the City under his control, and all assets of the Fund shall be completely segregated and earmarked as belonging to the Fund. -18- 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 under Ordinance No. 2999 to members who retired between January 1, 1946 and October 1, 1952, 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 an account of any death, retirement, disability, or termination which occurred prior to the date of this ordinance. In any case under the terms of this ordinance, where benefits are payable to a child and the Board determines that such child is unable or lacks the proper discre- tion 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 (2) separate unallocated accounts as follows: a. An Active 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. A Retirement Reserve Account to consist of annual transfers from the Active Reserve Fund to provide retirement, death, disability and vested termination benefits, such benefits being paid from this account as authorized by the Administrator in accord&rece with Secrtfion 16. 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 appoint- ed by the City Council upon reccmmsndati:,u�n by the Board. The actuarial tables used by the Actuary shall assume such interest, mortality, turnover, and other rates as the Actuary, with Board approval, shall from time to time approve. =19 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 designated gas 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 trustees presently serving in Places 2 and 7 shall com- plete their current terms which end on September 30, 1964. The trustees presently serving in Places 1 and 6 shall complete their current terms which end on September 30, 1965. At the expiration of each such term and thereafter, 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 first day of October of the election year. No de- partment of the City shall have more than one (1) employee as a member of the Board of Trustees at any one time,. b. Method of Electinit Employee Members: Before July 1 of each year the City Manager shall appoint a nominating committee consisting of one mem- ber each from eight of the departments of the City. The said nominating committee shall then select four nominees respectively for each place on the Board which shall become vacant on September 30 of the said year. No two of the nominees for any place shall be selected from the same depart- ment of the City. In addition to the nominees selected by the nominating committee, other nominees may be selected by petition containing the sig- natures of at least fifty members of the Fund, except that no petition will be accepted which would result in more than one employee from any department of the City being on the Board of Trustees should the nominee be elected. The names of the nominees shall be furnished the administrator prior to August let of each year. The administrator shall prepare a ballot listing the nominees for each of the two places in alphabetical order ac- cording to their surname. These ballots shall be made available to the fund members on the let payday in September in such manner as to allow each member an opportunity to vote by secret ballot. The nominee for each place who receives the highest number of votes shall be declared elected to the Board of Trustees; provided, however, that, should such procedure result in more than one member of any department being elected to the Board, then, and in that event, the election shall be decided as follows: (1) Of the two nominees who were apparently elected and who are members of the same depart- ment of the City, the nominee who received the higher total number of votes shall be declared elected to the Board; and (2) the other such nominee shall be held to be disqualified from serving on the Board and the nominee for the same place on the Board who received the second largest number of votes shall be declared to be elected to the Board of Trustees. Vacancies which occur during the term in the places of employees' members shall be filled by the Board for the unexpired term or until the next employee election whichever shall first occur. -20- ti fe C. Members Appointed by Council. Two (2) trustees shall be appointed by the governing body of the City of Fort Worth to serve in Places 3 and 4, respectively. The trustee presently serving in Place 4 shall complete his current term which ends on September 30, 1964. The trustee presently serv- ing in Place 3 shall complete his current term which ends on September 30, 1965. 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 first day of October of the year of appointment. d. City Secretary to Serve in Place 5. The City Secretary of the City of Fort Worth shall serve in Place 5. 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 entirely of newly elected or appointed members at any one time, The members of the Board of Trustees shall remain 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 (4) members of the Board shall constitute a quorum to transact any busi- ness, but it shall require not less than four (4) 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 ordinance, 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, including undistri- buted income. In acquiring, investing, reinvesting, exchanging, retaining, 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 auth- orized 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 orcoQmon, which -21- men of ordinary prudence, discretion and intelligence acquir= or retain for their own account; provided that no securities of any one corporation shall ever be pur- chased if such purchase would result in the total securities of such corporation held by the Fund having a value in excess of five per cent (5%) of the total value of the Fund, nor shall more than five per cent (5%) of the outstanding securities of any one corporation ever be purchased for or retained as an asset of the Fund. The Board of Trustees of the Fund are specifically prohibited from purchasing for the Fund bonds, warrants, obligations or securities of the City of Fort Worth. The provisions of the Texas Trust Act are expressly incorporated in this Ordinance by reference the same as if set out herein verbatim. In administering the Fund, the decisions of the Board shall be final and con- clusive. The Administrator shall make available to the Board of Trustees all in- formation and records pertaining to the Fund requested by the Board, in the form specified by the Board. 2. Administrator The administrator who shall supervise the administrative affairs of the Retirement Fund shall be appointed by the City Manager subject to the approval of the Board of Trustees. The City Manager shall include in his annual budget recommendations for the number of personnel required to assist the administrator in carrying out his work. The duties of the Administrator shall include, but not necessarily be limited to, the followings 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 securities and invest- -22- ment matters. The Investment Review Committee she. 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 administration of the Fund; and (c) submit an annual report of its findings and rec, endations to the governing body of the City of Fort Worth. Such annual report shall be made available to the Board and each of the members of the Fund. 4. Administrative Expenses Expenses of the Board or the Administrator necessary for the operation of the Fund shall be paid from the Retirement Administration budget appropria- tion, must be recommended by the City Manager and as approved by the City Council. SECTION 17. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS The City of Fort Worth shall never be held liable or responsible for any claim or as=erted claim for benefits under the provisions of this ordinance, but all claims shall be paid from the funds for which provision has been specifically made herein. No portion of this Fund shall, at any time before or after its disbursements, 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 shal' 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, cousistapt 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 quali- fied voters thereof entitled to vote on the question of the issuance of tax-supported bonds. -23- 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, ssntence, clause, phrase or para- graph of this ordinance be d.Fciar(A invradtl cr 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 the passage of this ordinance that any portion of said ordinance was invalid, it would not have adopted such invalid part. SECTION 21. 1?REREggIMES T'O ORDZNANCE The City Council finds that all acts, conditions and things required by pro- visions 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. LZMZTATION OF LECA& RIGHTS By reason of the expansion of the benefits and coverage herein and the addi- tional burdens placed upon the City of Fort Worth and the Fund, it is expressly pro- vided that no member of the Employees' Retirement Fund of the City of Fort Worth shall have the right to sue said City for total disability sustained in line of duty, as heretofore defined, and by virtue of becoming a member he or she accepts the benefits provided by the Employees' Retirement Fund of the City of Fort Worth in lieu of his or her right at law to sue the City for damages in a court of competent jurisdiction. No heir or legal representative of a member who is injured in line of duty, which injury results in death, shall have the night to sue the City of Fort Worth for damages by reason thereof, but such heir or legal representative shall accept the benefits pro- vided under the Employees' Retirement Fund Ordinances of the 'tty of Fort Worth in lieu of such right to sue for damages in a court of competent jurisdiction. SECTION 23. EFFECTIVE DATE This ordinance shall be in full force and effect from and after the date of its adoption and it is so ordained. Adopted this /Z day of A. D., 1964. 1 Mayor of the City of Fort Worth, Texas ATTEST: xy C y retary of the City/of Fort Worth, Texas APPROVED AS TO FtxtM�1iLts�ti! �L City Attorney of the City of Fort Worth, Texas