HomeMy WebLinkAboutOrdinance 16967-05-2006ORDINANCE NO. IG9G7-OS-200G
AN ORDINANCE AMENDING ORDINANCE NO. 13543, AS AMENDED BY
ORDINANCE NOS. 13672, 13673, 13674, ].3$42 AND 15$62„ CODIFTED AS
CHAPTER 2, ARTICLE VT, DIVISTON 1 ENTITLED "EMPLOYEES'
RETIREMENT FUND," OF THE CODE OF THE CITY OF FORT WORTH
(1986), AS AMENDED, WHICH ORDINANCES ESTABLTSH A RETIREMENT
SYSTEM, RETIREMENT PLAN AND BENEFTTS THEREUNDER FOR
EMPLOYEES OF THE CTTY OF FORT WORTH? AMENDING THE
DE~INITTON OF EARNINGS TO INCLUDE WEEKLY WORKERS
COMPENSATION EARNINGS; PROVIDING FOR THE CITY'S PAYMENT ON
BEHALF OF THE MEMBERS CONTRIBUTTON WHERE WEEKLY WORKERS
COMPENSATION BENEFITS ARE PAID.
BE IT ORDAINED BY THE CTTY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
That Ordinance No. 1.3543, as amended by Ordinance Nos. 13672, 13673, 13674, 13842 and
15862, codified as Chapter 2, Article Vl, Division 1 of the Code of the City of Fart Worth (collectively
the "Retirement Ordinance"), is hereby amended as follows:
SECTION 1.
That Chapter 2, Article Vl, Division 1, Sectiarz 2-20 J ("Definitions") of the Retirement Ordinance
is amended by deleting the definition of Earnings and substituting the following language in lieu thereof
"Earnings" shall mean the amount actually paid to an employee by the City
for services rendered to the City during the calendar year, plus overtime,
acting, assignment, holiday, longevity, educatiaual incentive, safety award,
incentive and shift differential pay, as reported on the employee's W-2 form.
"Earnings" shall also include weekly workers' compensation benefits
(currently referred to as Temporary Tncome Benefits}, beginning far such
amounts received by City employees on or after .Ianuary 1, 2006, sa long as
required by law. Regardless of the fact that the following payments may be
shown upon an employee's W-2 form, Earnings shall not include: {i) any
non-salary allowance (such as uniform reimburseacxaent, automobile
allowance or mileage, etc.), (2) lump snm payments received at time of
termination for unused vacation leave, sick leave and personal leave, (3} any
award by a court, administrative body, or settlement agreement in excess of
Earnings, and (4) any amount paid to an employee far which the City does
not contribute to the Fund under Sec. 2-204. However, an employee
participating in aCity-sponsored deferred compensation plan shall have the
a~€nount of any deferred compensation credited to that employee during the
calendar year added to earnings reported on the employee's W-2 form to
arrive at total earnings for Retirement Fund matters. Mandatory member
cantributioaas that are picked-up by the City and excluded from a member's
W-2 form shall also be included as part of earnings. Notwithstanding the
foregoing, earnings in excess of $200,000, if any (or such other amounts as
may be determined by taking into account the cost-of living adjustment
provided under section 401{a) {17) of the Code) shall be disregarded far all
purposes of this Ordinance. Notwithstanding the preceding provisions of
this definition of earnings, earnings shall no# include any amounts paid
following a member's effective DROP election, provided the member
completes at least one year of service with the City from the date of the
effective DROP election to his or her actual retirement.
SECTION 2.
That Chapter 2, Article VI, Division 1, Section 2-204 ("City's Contributions)") of the Retirement
Ordinance is amended by adding the fallowing at the end of the paragraph:
Retirement contributions made on behalf of the Plan Members, as well as
the City's contributions to the I+und, shall be paid by the City based an
weekly workers compensatian€ benefits (currently referred to as Temporary
Income Benefits) paid to those Plan Members, beginning for such amounts
received by Plan Members on or after January 1, 2006.
SECTION 3.
This Ordinance shall be cumulative of all ordinances of the City of Dort Wirth, vcrhich shall remain
in full farce and effect except to the extent that provisions of this Ordinance are in direct conflict with the
previsions of such other ordinances, in which case the conflicting provisions of such other ordinances are
hereby repealed.
SECTION 4.
The sections, paragraphs, sentences, clauses and phrases of this Ordinance are severable. If any
portion of this Ordinance is declared illegal ar unconstitutional by the valid final judgment ar decree of
any court of competent jurisdiction, such illegality or unconstitutionality shall not affect the legality and
enforceability any of the remaining portions of this Ordinance.
SECTIOlO' S.
This Ordinance shall be in full farce and effect following its adoption by the City Council of the
City of )~ort Wirth.
AND IT IS SO ORDAINED:
ADOPTED: Ma 30 2006
EFFI~,CTNE:_„_
APl'ROV O h AND LEGALITY:
A~ City Attorney
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COUNCIL ACTION. Approved ors 5!3012006 -Ordinance No, 16967-05-2006
CONTINUED FROM A PREVIOUS VIIEE~C
DATE: Tuesday, May 23, 2006
LOG NAME: 12AMENDORDINANC REFERENCE NO.: G-15209
SUI~JECT;
Adopt Amendment of Ordinance 13543, as Amended by Ordinance Nas. 13672, 13673, 13674,
13842 and '[5862, Codified as Chapter 2, Article Vi, Division 1, Entitled "Employees' Retirement
Fund" of the Cade of the City of Fort Worth (1986), as Amended, Providing far a Higher Earnings
Ceiling Before Earnings are Disregarded; and Amending the Definition of Earnings to Include
Worker`s Compensation Earnings and Providing for the City's Payment of Retirement Contributions
When Temporary Income Benefits Have Been Paid
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance amending Ordinance No. 13543, as amended by Ordinance Nas. 13672,
13673, 13674, 13842 and 15862, Codified in Chapter 2, Article Vi, Division 1, entitled "Employees'
Retirement Fund" of the Code of the Gity of Fort Worth (1986), as amended.
DISCUSSION:
The Employees' Retirement Fund of the City of Fart Worth (Fund) and the City have reached a settlement
regarding a dispute over the meaning and intent of Section 504.651 of the Texas Labor Code. As part of
the agreement, the City has agreed to amend the Retirement Ordinance to provide for certain retirement
contributions as set out in the attached proposed ordinance.
A change in the ordinance is also being made in line with Section 401 (a}(17} of the Internal Revenue Code
to provide far a higher earnings ceiling before earnings are disregarded.
FISCAL INFORMATIONICERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated, to
implement this Ordinance.
TO FundlAccauntlCenters FROM I=undlAccountlCenters
Snbrnitted for Gitv Manager's OfFica by: Richard Za~tala {Acting} (6183}
Oriuinating Department Head: David Yett (7623)
Additional Information Contact: Gerald Pruitt (7616)
Lognazx~e: 12AMENDORDINANC Page 1 of 1