HomeMy WebLinkAbout2020/12/01-Attachments-M&C 20-0870City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/01/20 M&C FILE NUMBER: M&C 20-0870
LOG NAME: 14RETIRED EMPLOYEES"" GROUP DEATH BENEFIT 2021
SUBJECT
(ALL) Authorize Payment to the Retired Employees' Group Death Benefit Fund in the Amount of $551,745.00 for Payments of Retiree Death
Benefits, in Accordance with Chapter 2.5, Article II of the City Code
RECOMMENDATION:
It is recommended that the City Council authorize a payment to the Retired Employees' Group Death Benefit Fund in the amount of $551,745.00 to
pay for retiree death benefits, in accordance with Chapter 2.5, Article 11 of the City Code.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize a payment to the Retired Employees' Group Death Benefit Fund to
provide for payment of lump -sum death benefits that are anticipated to arise during fiscal year 2021.
Since 1970, City ordinances have authorized payment of a lump -sum death benefit to the beneficiary of a City of Fort Worth retiree upon the death
of the retiree. The benefit currently provides a lump -sum payment in the amount of $5,000.00. The Employees' Retirement Fund (ERF) Board of
Trustees serves as trustee of the Retired Employees' Group Death Benefit Fund.
Chapter 2.5, Article II of the City Code requires the City to appropriate to the Retired Employees' Death Benefit Fund such amounts as may be
necessary to provide the lump -sum benefit payments. Under the Code, appropriations are to be made on an as -needed basis from current
revenues. Because the payment of death benefits cannot be made from pension funds, it is necessary for the City to make a payment to the
Retired Employees' Group Death Benefit Fund.
The recommended amount of $551,745.00 should cover management fees and the cost of projected death benefits to the end of fiscal year 2021.
If additional funding is needed due to a higher -than -anticipated number of retiree deaths, ERF will notify staff and the Human Resources
Department will prepare an M&C to request an appropriation of additional funds.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously
appropriated, in the General Fund. Prior to an expenditure being incurred, the participating department has the responsibility to validate the
availability of funds.
Submitted for City Manager's Office W. Jay Chapa 5804
Originating Business Unit Head: Nathan Gregory 7783
Additional Information Contact: Nathan Gregory 7783