HomeMy WebLinkAboutOrdinance 17847-10-2007ORDINANCE NO. 17847-10-2007
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE VI, DIVISION 2,
ENTITLED "RETIRED EMPLOYEES' GROUP DEATH BENEFIT
FUND," OF THE CODE OF THE CITY OF FORT WORTH (1986), AS
AMENDED, AMENDING SECTION 2-227 TO MAKE PAYMENTS TO
THE RETIRED EMPLOYEEES' GROUP DEATH BENEFIT FUND ON
AN AS NEEDED BASIS; AMENDING SECTION 2-228 TO ALLOW A
MEMBER TO DESIGNATE A SURVIVING BENEFICIARY TO
RECEIVE THE LUMP-SUM PAYIVI]ENT IN THE EVENT THE RETIRED
MEMBER HAS NO SURVIVING SPOUSE; AMENDING SECTION 2-229
TO INCREASE THE LUMP-SUM PAYMENT TO THE BENEFICIARY
UPON THE DEATH OF A RETIRED MEMBER TO FIVE THOUSAND
($5000.00) DOLLARS; PROVIDING THAT THE INCREASE IN THE
LUMP-SUM PAYMENT SHALL BE APPLIED RETROACTIVELY TO
OCTOBER 1, 2007; PROVIDING THAT THIS ORDINANCE IS
CUlVIULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING
THAT ALL CONDITIONS PRECEDENT FOR THE ADOPTION OF THIS
ORDINANCE CLAUSE AND PROVHDING AN EFFECTIVE DATE.
WHEREAS, the City of Fort Worth City Council ("City Council") adopted
Ordinance No. 9054, as amended, and as codified as Chapter 2, Article VI, Division 2 of
the Code of the City of Fort Worth, collectively called the "Retired Employees' Group
Death Benefits Fund"; and
WHEEREAS, the City Council desires to continue to make payments to the
Retired Employees' Group Death Benefit Fund on an as needed basis; and
WHEREAS, the City Council desires to increase the lump-sum payment made to
the beneficiary of a retired member upon the death of the retired member.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
SECTION 1.
That Chapter 2, Article VI, Division 2, Section 2-227 ("Appropriation to Fund"),
is amended by deleting it in its entirety and substituting the following language in lieu
thereof:
The city shall continue to appropriate to the retired
employees' death benefit fund such amount or amounts
as may be necessary to provide the lump-sum payments
hereinafter set forth in section 2-229 on an as needed
basis 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, when
needed, to provide the revenue from which such
appropriations may be made.
SECTION 2
That Chapter 2, Article VI, Division 2, Section 2-228 ("Definitions"), is amended
by deleting it in its entirety and substituting the following language in lieu thereof:
Sec.2-228. Definitions.
With reference to the retired employees' group death benefit fund, the
following words, terms and phrases shall have the meanings ascribed to them
herein, except where the context clearly indicates a different meaning. The
masculine pronouns wherever used herein shall include both the male and
female persons.
Board shall mean the board of trustees of the employees' retirement fund of
the City of Fort Worth.
Designated beneficiaries eligible to receive the death benefit hereunder shall
include any individual designated by the member as a designated beneficiary
on a Board approved beneficiary designated card.
Executive director shall mean the individual appointed by the board of
trustees, subject to the approval of the city council, to supervise the operation
of the fund.
Filing shall mean, for purposes of determining the surviving designated
beneficiary, the date when the beneficiary designation card is actually
received by the retirement office.
Members shall mean the eligible employees of the City of Fort Worth who are
participants in the employees' retirement fund of the City of Fort Worth.
Retired employees' group death benefit fund shall mean the fund from which
lump-sum payments are made upon the death of retired members of the
employees' retirement fund of the City of Fort Worth if said member retired
after January 1,1970.
Surviving spouse shall mean the widow or widower legally married to the
member at least one (1) year immediately prior to the member's retirement
from the City of Fort Worth and at the time of the member's death.
SECTION 3
That Chapter 2, Article VI, Division 2, Section 2-229 ("Entitlement to death
benefit") is amended by deleting it in its entirety and substituting the following language
in lieu thereof:
When a member of the employees' retirement fund of the City of Fort Worth
daes subsequent to retirement from active employment with the city, the
surviving spouse shall be entitled to receive (in addition to benefits provided
by the employees' retirement fund of the city) slump-sum payment of five
thousand dollars ($5,000.00). If the deceased member leaves no surviving
spouse and has filed a valid beneficiary designation card with the Retirement
Office naming a surviving designated beneficiary, slump-sum payment of
five thousand dollars ($5,000.00) shall be made in full to said surviving
designated beneficiary. Upon written request by the surviving spouse or
designated surviving beneficiary after the death of the member, the executive
director may directly pay the death benefit, or the portion thereof to the
funeral home necessary to satisfy the member's funeral expenses.
If the deceased member leaves no surviving spouse or surviving designated
beneficiary, slump-sum payment of five thousand dollars ($5,000.00) shall
be made to the estate of the deceased member upon presentation to the
executive director of one (1) of the following legal instruments: (1) letters
testamentary; (2) letters of administration; (3) muniment of title; (4) affidavit
of small estate; or (5) judgment declaring heirship. The lump-sum payment
herein provided shall be made in lieu of any payments to which the
survivor(s) 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.
This lump-sum payment of five thousand dollars ($5,000.00) shall not be
payable to those members (1) who retired before January 1, 1970, or (2)
whose coverage at the time of death was otherwise extended under the
permanent and total disability feature of the city's group life insurance plan.
SECTION 4
The increase in the death benefit provided in Section 3 shall be applied
retroactively to October 1, 2007.
SECTION 5
This ordinance shall be cumulative of all provisions of ordinances and of the Code
of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this
ordinance are in direct conflict with the provisions of such ordinances and such Code, in
which event conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 6
It is hereby declared to be the intention of the City Council that the sections,
paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any
phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such
unconstitutionality shall not affect any of the remaining phrases, clauses, sentences,
paragraphs and sections of this ordinance, since the same would have been enacted by the
City Council without the incorporation in this ordinance of any such unconstitutional phrase,
clause, sentence, paragraph or section.
SECTION 7.
The City Council fords that ali acts, conditions and things required by provisions
of the Constitution of Texas and 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 8.
This ordinance shall be in full force and effect from and after its adoption.
ADOPTED this 23rd day of October, 2007.
Marty Hendrix
City Secretary
APPROVED AS TO FORM ANL> LEGALITY:
etiti Colem Brown
Assistant City Attorney
C® of F®rt ~/®~th, 1"exas
Mayor and Council Communication
COUNCIL- ACTION: Approved on 10/23/2007 -Ordinance No. 17847-10-2007
DATE: Tuesday, October 23, 2007
LOG NAME: 12DEATH BENEFIT REFERENCE NO.: G-15938
SUBJECT:
Adopt an Ordinance to Amend Chapter 2, Article VI, Division 2, "Retired Employees' Group Death
Benefit Fund" to Increase the Payment from the Group Death Benefit Fund Upon a Retired
Member's Death to $5,000.00, Making the Increase in the Benefit Retroactive to October 1, 2007,
Allowing the Member to Designate a Beneficiary to Receive the Benefit if the Member has no
Surviving Spouse, Allowing the City to Make Payments to the Group Death Benefit Fund on an as
Needed Basis and Authorizing the City Manager to Make a Payment to the Group Death Benefit
Fund as Approved by the City Council in the City Budget
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached Ordinance amending Chapter 2, Article VI, Division 2, "Retired Employees' Group
Death Benefit Fund" by amending Section 2-227 "Appropriations to fund" to fund the Group Death Benefit
Fund on an as needed basis, by amending Section 2-228 "Definitions" to allow the member to designate a
beneficiary to receive the benefit if the member has no surviving spouse, by amending Section 2-229
"Entitlement to death benefit" to increase the lump-sum payment upon the death of a retired member to
$5000.00, and making the increase in the benefit retroactive to October 1, 2007; and
2. Authorize the City Manager to make a payment to the Retired Employees' Group Death Benefit Fund in
the amount of $250,000.00, as appropriated by the City Council in the Fiscal Year 2007/2008 Budget.
DISCUSSION:
From the inception of the Retired Employees' Group Death Benefit Fund, the City Council has made
payments to the fund on an as needed basis. The proposed amendment to the ordinance will reflect City
Council's intent to continue to provide payments to the fund on an as needed basis. This M&C will also
authorize the City Manager to make a payment to the Retired Employees' Group Death Benefit Fund in the
amount of $250,000.00 to insure that there are sufficient funds to make the lump-sum payments as needed
during the next fiscal year.
Due to increases in the cost of funerals, the Board of Trustees of the Employees' Retirement Fund
recommended to City Staff that the City Council consider increasing the lump-sum payment to the
beneficiary upon the death of a retired member from $3000.00 to $5000.00. The attached ordinance will
increase the lump-sum payment to $5000.00, and make the increase retroactive to October 1, 2007.
The ordinance amendment also allows a retired member to designate a beneficiary to receive the lump-sum
payment if the retired member has no surviving spouse at death.
Logname: 12DEATH BENEFIT Page 1 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the funds are available in the current operating budgets, as appropriated,
of the IT Solutions, Equipment Services, Engineering, Water and Wastewater, Aviation and General Funds.
TO Fund/Account/Centers
FROM Fund/Account/Centers
0001 534710 0909800 $188,734.76
P168 534710 0041000 5 044.14
P161 534710 0212010 $15,973.10
P 119 534710 0301000 6 410.26
PE45 534710 0701000 $16,025.64
PE45 534710 0601000 $16,025.64
PE40 534710 0551000 1 786.46
Submitted for City Manager's Office by_
Originating Department Head:
Additional Information Contact:
Karen L. Montgomery (6222)
David Yett (7623)
Laetitia Brown (6639)
Logname: 12DEATH BENEFIT Page 2 of 2