HomeMy WebLinkAboutOrdinance 20471-10-2012 ORDINANCE NO. 20471-10-2012
AN ORDINANCE REPEALING CHAPTER 2, ARTICLE VI, ENTITLED
"RETIREMENT," OF THE CODE OF THE CITY OF FORT WORTH
(1986), AS AMENDED, AND CREATING CHAPTER 2.5 ENTITLED
"RETIREMENT"; MOVING THE CONTENTS OF ARTICLE VI INTO
THE NEWLY-CREATED CHAPTER 2.5 AND RENUMBERING
CHAPTER 2.5 TO INCLUDE ARTICLE I, ENTITLED "EMPLOYEES'
RETIREMENT FUND," ARTICLE II, ENTITLED "RETIRED
EMPLOYEES' GROUP DEATH BENEFIT FUND," AND ARTICLE III,
ENTITLED, "SUPPLEMENTAL RETIREMENT ORDINANCE";
AMENDING THE NEWLY NUMBERED ARTICLE I, ENTITLED
"EMPLOYEES' RETIREMENT FUND," TO DELETE UNUSED
DEFINITIONS AND ADD DEFINITIONS; INCORPORATING
BENEFIT CHANGES AND REDUCTIONS TO THE EMPLOYEES'
RETIREMENT FUND; PROVIDING THAT THIS ORDINANCE IS
CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING THAT ALL CONDITIONS PRECEDENT FOR THE
ADOPTION OF THIS ORDINANCE HAVE BEEN MET; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Fort Worth City Council ("City Council") adopted by
Ordinance Chapter 2, Article VI, of the Code of the City of Fort Worth, collectively called
"Retirement"; and
WHEREAS, Article 62431 of the Texas Revised Civil Statutes applies to the City of Fort
Worth and the Employees' Retirement Fund of the City of Fort Worth ("the Fund"); and
WHEREAS, the City Council has endorsed the goal of preservation of a defined benefit
plan for employees;
WHEREAS, the City's analysis projects the Fund to have an infinite Funding period for
the accrued unFunded liability (market value) if more conservative investment returns are
assumed even without booking future potential ad hoc cost-of-living-adjustments (COLAs);
WHEREAS, the City's analysis considered options to mitigate the risk of not meeting
the Fund's investment return assumptions;
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WHEREAS, the City and the tux payers of Fort Worth currently have the State
constitutional obligation to bouor cuonod booefib; for eoly|oYcon should the Fund bcooroc
insolvent and therefore have uoddoul interest iu the affordability of the bouefi[s that are offered
to employees;
WHEREAS, the City conbn|o` within Cooxd(udonu| oonahaJn|a and as limited by
collective bargaining orrnoct and confer agreements, the Retirement Boucfi{e that are offered to
employees;
WHEREAS, the Employee flcdrenJcot Fund Board has the legal authority over the
investment strategy and management oversight of the contributions once remitted to them;
WHEREAS, the City Council has demonstrated commitment 10 this goal by increasing
the City's contributions to the Fund by5% o[puyro\l in 2007, by 4% ofpuyrol\ in 20 10 and by
making uoue-bnue contribution of$7 million io20|O;
WHEREAS, these Funding oononuitrueotm have nearly doubled the City's unuuu|
fiomnoiu| 000noitouoo\ to the Fund over n period of four yourm` rcyccocodug u $39 million
increased annual expense iuF1'2O|2 compared toFY2007;
WHEREAS, the City reduced Kebrcroeui BeocGio for General employees hired on or
after July 1, 201 t, with a pledge to consider the same for Police Officers and Fire Fighters during
their subsequent contract negotiations;
WHEREAS, the City may not unilaterally reduce the Funding commitment to the Fund
per State law;
WHEREAS, the City is unwilling k> make additional fiounoiu| contributions to the Fund
due to risks to the City's long-term ouaiaiuubiUty in terms of operations, staffing, infrastructure
and tux rate competitiveness;
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WHEREAS, the City intends to resolve the current structural dilemma of the ad hoc
COLA for the benefit of all members' future security by assigning a 2% simple guaranteed
annual adjustment for future accrued years of service to active General Employees hired before
July 1, 2011 and to active Police Officers hired before January 1, 2013;
WHEREAS, the City intends to allow all active General employees hired before July 1,
2011 and to active Police Officers hired before January 1, 2013 who are subject to the ad hoc
COLA the opportunity to select a 2% simple guaranteed annual adjustment for past service
accrual;
WHEREAS, the City intends to allow all Retirees (General, Police and Fire) and
beneficiaries who are subject to the ad hoc COLA the opportunity to select the 2% simple
guaranteed annual adjustment based on their starting pension amount with the first payment
occurring in January 2014;
WHEREAS, in order to pay for 2% guaranteed annual adjustment and to improve the
health of the Fund for the security of employees and the citizens of Fort Worth, additional
benefit reductions are necessary for the future service accrual of existing employees;
WHEREAS, the City Council has provided ninety-day notice to the Board of the
Employees' Retirement Fund of its intention to make benefit changes and reductions in
Retirement Benefits for future Police Officers and future service accrual for existing Police
Officers and General Employees; and
WHEREAS, the benefits for Firefighters have not been changed in compliance with the
April 13, 2010 Collective Bargaining Agreement between the City and Fort Worth Professional
Firefighters Association IAFF Local 440.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION I.
Chapter 2, Article V1, entitled "Retirement," of the Code of the City of Fort Worth
(1986), as amended, is hereby repealed, and Chapter 2.5, entitled "Retirement," is adopted,
moving the contents of Article VI into the newly-created chapter 2.5 and renumbering the
contents of Chapter 2.5 to include Article 1, entitled "Employees' Retirement Fund," Article 11,
entitled "Retired Employees' Group Death Benefit Fund," and Article 111, entitled "Supplemental
Retirement Ordinance."
SECTION 2.
Chapter 2.5 is enacted to read as follows:
ARTICLE I—EMPLOYEES' RETIREMENT FUND
DIVISION 1.—GENERAL PROVISIONS
Sec. 2.5-1. Definitions
The following words, terms and phrases, when used in this Chapter, as amended, shall have the
meanings ascribed to them in this Division, except where the context clearly indicates a different
meaning. The masculine pronouns, wherever used herein, shall include both male and female
persons.
Actuarial Equivalent and Actuarially Equivalent shall mean equality in value of the aggregate
amounts expected to be received under different forms of payment based upon the actuarial
factors and assumptions used by the Actuary with the approval of the Board.
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.
Actuary shall mean the technical advisor regarding the operations, which are based on mortality,
service, and compensation experience, who makes periodic valuations of the assets and liabilities
of the Fund and other evaluations as requested by the Board and the Governing Body.
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Alternative Pension Benefit shall have the meaning as set forth in the following Sections:
• Section 2.5-25 for Group III. Members
• Section 2.5-35 for Group IV Members
• Section 2.5-45 for Group I Members
• Section 2.5-55 for Group II Members
• Section 2.5-65 for Firefighters;
Base Pension shall mean the annual life pension a Member receives as set forth in the following
sections:
• Section 2.5-25 for Group III Members
• Section 2.5-35 for Group IV Members
• Section 2.5-45 for Group I Members
• Section 2.5-55 for Group II Members
• Section 2.5-65 for Firefighters
If a Member elects an Alternative Pension Benefit, or participates in DROP, the Member's Base
Pension shall not include the lump slim amount or the DROP account.
Beneficiary shall mean any person in receipt of a Retirement Benefit or any other benefit
provided under this Chapter.
Board shall mean the Board of Trustees of the Employees' Retirement Fund of the City of Fort
Worth.
Cash Balance Account shall mean the individual nominal account established for General
Employees hired on or after July 1, 2011, to account for overtime contributions made to the
Fund.
City shall mean the City of Fort Worth, Texas.
Code shall mean the United States Internal Revenue Code, as amended, and any successor
thereof.
Group I Member shall mean a General Employee hired prior to July 1, 2011.
Group II Member shall mean a General Employee hired on or after July 1, 2011.
Group III Member shall mean a Police Officer hired prior to January 1, 2013.
Group IYMember shall mean a Police Officer hired on or after January 1, 2013,
Compensation Base shall have the meanings set forth in the following sections:
• Section 2.5-23 for Group III Members;
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• Section 2.5-33 for Group IV Members;
• Section 2.5-43 for Group I Members;
• Section 2.5-53 for Group 11 Members;
• Section 2.5-63 for Firefighters.
Credited Service shall mean the number of years (treating each complete month of service as
one-twelfth (1112) of a year) in which an employee has participated in the Employees'
Retirement Fund of the City of Fort Worth, Texas, including unused accumulated sick leave and
major medical leave pursuant to Section 2.5-4. Service for fifteen (15) or more calendar days in
any month shall constitute a complete month of service; service for less than fifteen (15)
calendar days in any month shall constitute a complete month of absence. Notwithstanding the
preceding provisions of this definition of Credited Service, the period of time following a
Member's effective DROP election shall not be included when determining a Member's Credited
Service. A Member may have his or her proof of Credited Service increased through the
purchase of Permissive Service credits as provided in Section 2.5-4(c).
DROP shall mean the Deferred Retirement Option Program as set forth in Section 2.5-9.
DROP Account shall mean the account created pursuant to Section 2.5-9(d) for a Member who
has made a DROP Election.
DROP Election shall mean the election made by a Member pursuant to Section 2.5-9 to
participate in the DROP.
Earned Income shall mean, for purposes of Section 2.5-7, those wages, salaries, tips,
commissions, monetary bonuses or professional fees, and other amounts received as
compensation for personal services actually rendered, including any compensation deferred
under a deferred compensation program.
Earnings shall have the meaning set forth in the following Sections:
• Section 2.5-21 for Group III Members;
• Section 2.5-31 for Group IV Members;
• Section 2.5-41 for Group I Members;
• Section 2.5-51 for Group 11 Members;
• Section 2.5-61 for Firefighters.
ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended, and any
successor thereof.
Executive Director shall mean the individual appointed by the Board to supervise the
administrative affairs of the Fund and carry out the business of the Fund.
,Firefighter shall mean any Member of the Fort Worth Fire Department who was hired in
substantial compliance with Chapter 143 of the Texas Local Government Code, or as modified
by the provisions of the City's collective bargaining agreement with the Fort Worth Professional
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Firefighters Association k\EF Local 440, and any Firefighter trainee who is employed by the
City for the sole Purpose of attending the City of Fort Worth Fire Training
Academy.
/risou/ Year shall mean the period from Oo0nhor | of one (|) year through September 30 of the
following year.
Fund shall mean The Employees' Retirement Fund of the City of Fort Worth, Texas.
General Employee shall ououu u Member ofthe Fund who is not uPn|ico Officer orFirefighter.
Governing Body shall mean the City Council for the City of Fort Worth.
Legitimate Ch//d/en sbuU mean those obi|drou legitimate to their respective parent(s), as
legitimacy iydefioo1byd6cTcxumFoozilyCodexuddhcToxuoPzobaicCodc, aoumcodcd.
Line of Duty mhu|| rnouo in the course of the operation usual to u Member's erop|o}nnont`
including all operations uoocmaury, incident or appurtenant thereto or connected ibcrcvvitb'
whether such operations are conducted oi the usual place of employment or o1ouvvbcrc.
Member shall rumao u "yunioiputiog &8emboc" as defined by Section 1.02(4) of Article 0243i of
the Revised Civil Statutes.
Net Earnings from So/f-E»»//»«/nowt obu|i constitute, for purposes of Section 2.5-7` the Net
Earnings from Self-Employment ua reflected upon the Internal Revenue Form Schedule SE and
its successors, which schedule in attached (o Internal Revenue Form l040 and its successors.
Normal Retirement Dole shall have the meaning set forth iu the following Sections:
• Section 2.5-22 for Group III Members;
• Section 2.5'32 for Group [VMembers;
• Section 2.5-42 for Group IMuouhecm;
• Section 2.5'52 for Group 1lMembers;
• Section 2.5'62 for Firefighters.
Permissive Service CrooY/r shall noeuo a Mcnuhnr'y voluntary purchase of additional periods of
Credited Service pursuant to Section 2.5-4(o}.
Police Officer shall nnoau u Member o[ the City of Fort Worth Police Department, who has
acquired civil service status pursuant to Chapter 143 of the Texas Local (]ovurou000t Code, no
amended, as well as a beginning employee of the City of Fort Worth Police Department currently
serving o one-year probationary period pursuant iu Chapter 143 of the Texas Local Gove000eot
Code, as amended.
Regular Interest mhu)| nocao interest compounded biweekly which should ognul but not exceed
the effective annual rate of five and one-quarter(5 V4) percent computed on a calendar year basis.
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Retirement Benefit shall mean a pension for life, as provided in this Chapter, payable each year
in twelve (12) equal monthly installments, beginning as of the date fixed by the Board in
accordance with the provisions of this Chapter.
Standard Pension Benefit shall have the meaning set forth in the following Sections:
• Section 2.5-25 for Group III Members;
• Section 2.5-35 for Group IV Members;
• Section 2.5-45 for Group I Members;
• Section 2.5-55 for Group II Members;
• Section 2.5-65 for Firefighters.
Termination of Employment shall mean complete severance of employment of any Member as an
employee of the City by any act or means except death, disability or retirement.
Trustee shall mean a person appointed or elected to administer the Fund.
Vested shall mean the rights accrued under this Article by a Member of the Fund who has been a
Member for five (5) years or more, or who has attained his or her retirement date, as described in
this Chapter. Such rights shall also accrue to all Members of the :Fund at the time of termination
of the Fund, at the time of any complete discontinuance of the City's contributions to the Fund,
and to Members affected at the time of any partial termination of the Fund, but only to the extent
that the benefits of such :Members have been Funded.
Vested Retirement Date shall have the meaning as set forth in the following Sections:
• Section 2.5-22(b) for Group III Members;
• Section 2.5-32(b) for Group IV Members;
• Section 2.5-42(b) for Group I Members;
• Section 2.5-52(b) for Group II Members;
• Section 2.5-62(b) for Firefighters.
Vested Termination Pension shall have the meaning as set forth in the following Sections:
• Section 2.5-24(b) for Group III Members;
• Section 2.5-34(b) for Group IV Members;
• Section 2.5-44(b) for Group I Members;
• Section 2.5-54(b) for Group II Members;
• Section 2.5-64(b) for Firefighters.
Sec. 2.5-2. Membership in the Fund
(a) Membership in the Fund shall be based on the requirements set forth in Section 2.01 of
Article 6243i of the Revised Civil Statutes, provided however, that membership in the Fund shall
be a condition of employment for all employees who are eligible to be Members.
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(b) If a Group I Member terminates employment with the City after vesting, takes a reFund
of contributions, and then returns to service with the City after July 1, 2011, then the Group I
Member will be treated as if he or she was hired after July 1, 2011, even if the Member
purchases Permissive Service Credits pursuant to Section 2.5-4.
(c) If a Group I Member terminates employment with the City after vesting, does not take a
reFund of contributions, and then returns to service with the City after July 1, 2011, then the
Group I Member will be treated as if he or she was hired prior to July 1, 2011.
(d) If a Group I Member terminates employment with the City prior to vesting, and then
returns to service with the City after July 1, 2011, then the Group I Member will be treated as if
he or she was hired after July 1, 2011, even if he or she purchases Permissive Service Credits
pursuant to Section 2.5-4, or failed to take a reFund of contributions.
(e) For pension purposes, if a Group III Member, terminates employment with the City after
vesting, takes a reFund of contributions, and then returns to service with the City after January 1,
2013, then the Group III Member will be treated as if the Group III Member was hired after
January 1, 2013, even if the Group III Member purchases Permissive Service Credits pursuant to
Section 2.5-4.
For pension purposes, if a Group III Member terminates employment with the City after
vesting, does not take a reFund of contributions, and then returns to service with the City after
January 1, 2013, then the Group 111 Member will be treated as if the Group III Member was hired
prior to January 1, 2013.
(g) For pension put-poses, if a Group III Member terminates employment with the City prior
to vesting, and then returns to service with the City after January 1, 2013, the Group III Member
will be treated as if the Group III Member was hired after January 1, 2013, even if the Group III
Member purchases Permissive Service Credits pursuant to Section 2.5-4, or failed to take a
reFund of contributions.
Sec. 25-3. Contributions
(a) Member Contributions
(1) Commencing on the effective date of membership and continuing until the date of
actual retirement or earlier Termination of Employment, Police Officer Members shall
contribute to the Fund eight and seventy-three one-hundredths (8.73) percent of their
Earnings and all other Members shall contribute eight and twenty-five one-hundredths
(8.25) percent of their Earnings.
(2) If, following a Member's involuntary Termination of Employment, the City is
required, as the direct result of an appeal or suit arising from the involuntary termination,
to reinstate the Member's employment, the Member shall make the contribution described
in this Section on any payment made by the City to the Member as back pay, less interim
Earnings, if any.
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(3) Contributions by Members reinstated following a military leave of absence are
governed by the Uniformed Services Employment and Reemployment Rights Act, 38
U.S.C. §§ 4301-33, as provided for in Section 2.54(a)(4) of this Division. These
contributions shall be made even if to do so would reduce a Member's net cash
compensation below the minimum wage prescribed by law.
(4) By accepting employment with the City, each Member shall be deemed to consent
and agree to deductions made from the Member's compensation, and payments to all such
Members of compensation, less the deduction, shall constitute a full and complete
discharge 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 by the
Fund.
(5) The contributions of all Members may be raised at any time from the amount
stated in this Section to a higher amount in accordance with the procedures provided by
Article 62431 of the Texas Revised Civil Statutes.
(b) City Contributions
(1) For Group III and Group IV Members only, effective October 1, 2010, the City
shall contribute to the Fund twenty and forty-six one hundredths (20.46) percent of their
Earnings. For all other Members, effective October 1, 2010, the City shall Contribute to
the Fund nineteen and seventy-four one hundredths (19.74) percent of their Earnings.
Notwithstanding the foregoing, City contribution to the Fund shall be reduced for each
Fiscal Year by the amount of benefits paid by the City, if any, under the Supplemental
Retirement Ordinance. Section 2.5-3(a) shall not limit the right of the Governing Body,
through its budget appropriation, to contribute an additional amount over and above the
Member's contribution in accordance with Article 62431 of the Texas Revised Civil
Statutes, as amended.
(2) If, following a Member's involuntary Termination of Employment, the City is
required, as the direct result of an appeal or suit arising from the involuntary termination,
to reinstate the Member's employment, the City shall make the contribution described in
this Section on any payment by the City to the Member as back pay, without reduction
for the Member's interim Earnings, if any. In addition, the City shall, on behalf of the
Member, make the Member's contribution described in Section 2.5-3 above on any
interim Earnings deducted from the back-pay award. Contributions made by the City on
behalf of Members whose employment is reinstated following a military leave of absence
are governed by the Uniformed Services Employment and Reemployment Rights Act, 38
U.S.C. §§4301-33, as provided for in Section 2.44(a)(4).
(3) Effective for pay periods ending after April 1, 1999, the required Member
contributions described in Section 2.5-3(a) shall be picked up by the City and shall be
treated as City contributions for federal income tax purposes. Such contributions,
although designated as Member contributions, shall be paid by the City on behalf of the
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Members and in lieu of contributions by the Members. The Members shall not have the
option of receiving such contributions directly instead of having such amounts paid by
the City to the Fund.
(4) Retirement contributions made on behalf of the Members, as well as the City's
contributions to the Fund, shall be paid by the City based on weekly workers
compensation benefits (currently referred to as a temporary income benefits) paid to
those Members, beginning for such amounts received by Members on or after January 1,
2006.
(5) Although effective October 1, 2013, overtime will not be included in the
definition of Earnings for Group I and Group III Members, the City will continue to
contribute its contribution on overtime for all Group I and Group III Members.
Sec. 2.5-4. Credited Service
(a) Service Breaks. Pension credits shall be granted for all Credited Service for which a
Member of the Fund receives employment compensation from the City, subject to the following
regulations pertaining to service breaks:
(1) Authorized service breaks of ninety (90) or less consecutive calendar days
without pay shall not be deducted from Credited Service.
(2) Except as provided below, periods of absence in excess of ninety (90) consecutive
calendar days without pay shall be deducted from Credited Service, and no contributions
shal l be made by Members or by the City during such periods.
(3) An absence of any period shall be permitted without loss of prior Credited
Service, unless the Member receives a distribution of his or her total contributions, plus
Regular Interest, and any period of absence shall cancel all prior Credited Service if the
Member receives a distribution of the Member's total contributions, plus Regular Interest;
however, if a Member is absent, the Member may regain prior Credited Service by
repaying the total amount of all contributions withdrawn, plus Regular Interest thereon
(at the Regular Interest rate in effect on the date of repayment), less the amount received
in from the Member's Cash Balance Account, from the date of withdrawal to the date of
repayment, pursuant to policies adopted by the Board under one (1) of the two (2)
following options:
a. Repay in a single lump sum payment within ninety (90) days of
reemployment, or
b. Repay through a payroll deduction pay-back plan which commences within
ninety (90) days of reemployment, and provides that Regular Interest will be
charged throughout the pay-back period and that the repayment period will not
exceed seven (7) years.
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A rehired Member who does not timely elect one (1) of these two (2) options and timely
repay the prior contributions (plus Regular Interest) will waive his or her right to prior
Credited Service. An existing rehired Member on the date this provision is added to the
retirement ordinance shall have until October 31, 1999 to elect one (1) of the above
repayment options or waive his or her right to prior Credited Service.
Members who received a reFund of the proceeds in their Cash Balance Account are not
required to repay that amount to regain Credited Service under this provision. A reFund
of the proceeds in the Cash Balance Account is irrevocable and the Member cannot pay
back the amount received to restore their original Cash Balance Account.
(4) Effective on or after December 12, 1994, any Member who is reemployed by the City
upon completion of service in the uniformed services (within the time frame provided
under the Uniformed Services Employment and Reemployment Rights Act of 1994, as
amended), shall be granted Credited Service for such unifonned service, provided the
Member makes the contributions (with no interest) to the Fund that the Member would
have been required to contribute if the Member had remained continuously employed by
the City throughout the period of uniformed service. Such payment must be made during
the period which commences with the date of reemployment by the City and which
duration is three (3) times the period of the Member's service in the uniformed services,
not to exceed five (5) years. If a reemployed Member makes such contributions, the City
shall also make its corresponding contributions to the Fund. This provision shall be
construed consistently with the requirements of the Uniformed Services Employment and
Reemployment Act of 1994, as amended.
(5) Any Member whose employment was terminated involuntarily and was thereafter
reinstated as the direct result of an appeal or suit arising from the involuntary termination
shall be granted all Credited Service for the period of absence.
(b) Accumulated Sick Leave and Major Medical Leave. At retirement and in calculating a
Vested Termination Pension, a Member shall have added to his or her Credited Service, subject
to the provisions of this Section, any hours of accumulated sick leave and/or unused major
medical leave, as recorded in the official personnel records of the City, for which that employee
has not received compensation. Notwithstanding the preceding sentence, accumulated sick leave
and/or unused major medical leave shall not be taken into account to increase the pension of a
Member receiving a Line of Duty disability pension. For Credited Service purposes, such
accumulated sick leave hours and/or unused major medical leave for which a Member shall not
receive compensation shall be converted into months using the following formula: total number
of hours accumulated uncompensated sick leave and/or unused major medical leave divided by
the Member's total scheduled hours of work for the year and multiplied by twelve (12). The
resulting product represents the number of months in whole numbers and/or a decimal fraction of
a month, and any whole number shall constitute that number of months to be added to Credited
Service. If the resulting product contains a decimal value that is less than five-tenths (0.50), then
no addition to Credited Service shall be made with respect to such decimal value, however, if the
resulting product contains a decimal value that is five-tenths (0.50) or greater, then an additional
month of Credited Service shall be provided for such decimal value. The addition of such
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accumulated sick leave and/or unused major medical leave to Credited Service shall not be
applied toward determination of retirement eligibility, but only toward calculation of Retirement
Benefits. Group I Members and Group III Members who have unused accumulated sick leave
and major medical that was earned prior to October 1, 2013 will have the leave added to credited
service earned or purchased prior to October 1, 2013. Unused accumulated sick leave and major
medical earned on or after October 1, 2013 will be added to credited service earned or purchased
after October 1, 2013. Group I Members and Group Ill Members who use their accumulated
sick leave and/or major medical leave prior to retirement will have the leave deducted from
accumulated sick leave and major medical hours carried prior to October 1, 2013 first.
(c) Permissive Service Credits.
(1) General. Effective on or after October 1, 2002, a Member who has Earnings from
the City for the then current year may elect to purchase Permissive Service Credits and
have his or her period of Credited Service increased for purposes of calculating the
Member's Retirement Benefit, pursuant to the provisions of this Division . The Actuary
shall prepare factors which shall be used to determine the voluntary additional
contributions that a Member must make to purchase Permissive Service Credits,
provided, however, that in no event shall a Member be required to contribute an amount
that exceeds the amount necessary to Fund the benefit attributable to the additional
Credited Service that is purchased.
(2) Limitations. A Member may purchase up to five (5) years of Permissive Service
Credits that are attributable to non-qualified service, and a Member cannot purchase any
Permissive Service Credits for non-qualified service prior to completion of five (5) years
of participation as a Member.
(3) Non-Qualified service. For purposes of Section 2.54(c), the term "non-qualified
service" means service other than (1) service (including parental, medical, sabbatical, and
similar leave) as an employee of the government of the United States, any state or
political subdivision thereof, or any agency instrumentality of any of the foregoing (other
than military service or service for credit which was obtained as a result of the repayment
described in Section 415(k)(3) of the Code), (ii) service (including parental, medical,
sabbatical, and similar leave) as an employee (other than as an employee described in
clause(i) above) of an education organization described in Section I 70(b)(1)(A)(ii) of the
Code which is a public, private, or sectarian school which provides elementary or
secondary education (through grade 1.2), as determined under state law, (111) service as all
employee of an association of employees who are described in clause (i) above, or (iv)
military service (other than qualified military service under Section 414(u) of the Code)
recognized by such goverru-nental plan. In the case of service described in clauses (i), (ii),
or (iii) above, such service will be non-qualified service if recognition of such service
would cause a Member to receive Retirement Benefits for the same service under more
than one (1) plan.
(4) Purchase of'Permissive Service Credits. A Member may purchase Permissive
Service Credits pursuant to the rules, procedures and forms as may be adopted and
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amended by the Board in its complete discretion, which shall be uniform and
nondiscriminatory and which shall be interpreted in a manner that is consistent with the
provision of the retirement ordinance and applicable law. Permissive Service Credits
may be purchased by a Member's direct payment to the trustee of the amount determined
by the factors provided by the Actuary, or through a trustee to trustee transfer of such
amount from the Member's account under an eligible deferred compensation plan (as
defined in Code Section 457) or a qualified plan within the meaning of Code Section
401(a), including a 401(k) plan, or the Member's annuity contract meeting the
requirements of Code Section 403(b).
See. 2.5-5. Administration
(a) The Board of Trustees. The Fund shall be administered by the Board. The Board shall
consist of thirteen (13) Trustees designated as Place 1, Place 2, Place 3, Place 4, Place 5, Place 6,
Place 7, Place 8, Place 9, Place 10, Place 11, Place 12, and Place 13, respectively. A Trustee's
term shall be for two (2) years, subject to this Section. Trustees shall be elected as follows:
(1) Trustees Elected by Employees. Four (4) Trustees who are Vested, participating
Members of the Fund, as defined by Article 62431 of the 'Texas Revised Civil Statutes, shall
be elected by the employees of the City, who are also Members of the Fund; said Trustees
shall serve in Places 1, 2, 3, and 4 respectively. Each of the Trustees shall be elected by one
(1) of the employee groups as follows:
Place 1. The Trustee for Place I shall be elected from Group A, which shall
consist of those Members of the Fund who are employed as Group III and Group
IV Members as defined by this Division. Only Group III and Group IV Members
who qualify for Employee Group A shall be eligible to vote for a nominee for
Place 1. Only Group III and Group IV Members who qualify for Employee
Group A shall be eligible to serve in Place I on the Board.
Place 2. The Trustee for Place 2 shall be elected from Group B, which shall
consist of those Members of the Fund who are employed as Firefighters. Only
Firefighters who qualify for Employee Group B shall be eligible to vote for a
nominee for Place 2. Only Firefighters who qualify for Employee Group B shall
be eligible to serve in Place 2 on the Board.
Place 3. The Trustee for Place 3 shall be elected from Group C, which shall
consist of those Group I and Group 11 Members who are assigned to work in the
following departments: Water, Planning and Development, Budget, Financial
Management Services, City Manager's Office, City Secretary, Human Resources,
Internal Audit, City Attorney's Office, and Municipal Court, including the
Marshal's Office. Group C shall also include Group I and Group 11 Members
assigned to work in the Police Department who are not eligible to vote for a
nominee for Place 1. Only Group I and Group 11 Members who qualify for
Employee Group C shall be eligible to vote for a nominee for Place 3. Group I
and Group 11 Members who qualify for Employee Group C shall be eligible to
Ordinance No. 20471-10-2012
Page 14 of 92
serve in Place 3 on the Board.
Place 4. The Trustee for Place 4 shall be elected from Group D, which shall
consist of those Group I and Group 11 Members who are assigned to work in the
following departments: IT Solutions, Housing and Economic Development,
Library, Parks and Community Service, Public Events, Aviation, Code
Compliance, Equipment Services, and Transportation and Public Works. Group D
shall also include Group I and Group I1 Member assigned to work in the Fire
Department who are not eligible to vote for a nominee for Place 2. Only Group I
and Group 11 Members who qualify for Employee Group D shall be eligible to
vote for a nominee for Place 4. Only Group I and Group lI Members who qualify
for Employee Group D shall be eligible to serve in Place 4 on the Board.
a. Term. In accordance with the nomination and election procedures
prescribed in this Section, Trustees shall be elected to Places 1, 2, 3, and 4,
and shall serve for a two (2) year term, subject to the following provisions.
Trustees for Places 1 and 3 shall be elected every odd numbered year
beginning in 2007, and shall serve from September 1 of such odd numbered
year through August 31 of the next odd numbered year. Trustees for Places 2
and 4 shall be elected in 2007 to serve a term from September 1, 2007 through
August 31, 2008. Thereafter, the Trustees for Place 2 and 4 shall be elected
every even numbered year and shall serve from September I of such even
numbered year through August 31 of the next even numbered year. Should the
employment status of any Member elected Trustee change so that said Trustee
is no longer a Member of the employee group from which the "Trustee was
elected, then said Trustee shall automatically forfeit the office of Trustee.
Should a vacancy occur, for whatever reason, in Place 1, 2, 3, or 4, during the
term thereof, then a majority of all Trustees remaining on the Board shall
appoint to the Board a qualified Member from the employee group whose
place has been vacated, which qualified Member shall serve the remainder of
the unexpired term; provided, however, that if, at the time the vacancy arises,
more than one (1) year remains in the unexpired term, then in lieu of the
Board appointing a replacement Trustee, there shall be an election pursuant to
the nomination and election provisions set forth below, with the Board making
reasonable modifications in the dates and time frames for the nomination and
election in light of the time of the vacancy.
b. Method of Nominating Members For Election. Nominations of Members
for election to the Board shall be by petition only. Before May 31 of each
election year, the Executive Director shall make available to Members of each
employee group eligible to vote in the scheduled election petition forms with
written instructions. Petitions containing the names of nominees shall be
returned to the Executive Director prior to July I of said election year.
Nominees may use copies of the petition form or may create their own
petition forms, provided each page of each returned petition shall identify the
name of the nominee, the department in which the nominee is employed, the
Ordinance No. 20471-10-2012
Page 15 of 92
employee group of which the nominee is a Member, and the place on the
Board for which the Member is being nominated. No person's name shall be
placed upon the official ballot as a nominee unless that person is nominated
by petition. Said nominating petition must contain the signature and employee
number of at least seventy-five (75) Members of the employee group who are
qualified to vote for said place on the date said petition is submitted to the
Executive Director. Only those employees who are Members of the Fund shall
be entitled to be listed upon the official ballot as a nominee. No person's name
shall be placed upon the official ballot as a nominee for Place I unless that
person is a Member of Employee Group A. No person's name shall be placed
upon the official ballot as a nominee for Place 2 unless that person is a
Member of Employee Group B. No person's name shall be placed upon the
official ballot as a nominee for Place 3 unless that person is a Member of
Employee Group C. No person's name shall be placed upon the official ballot
as a nominee for Place 4 unless that per-son is a Member of Employee Group
D.
c. Method of Electing Member Trustees. The Executive Director shall
provide for an election procedure as authorized by the Board, including but
not limited to voting by mail, telephone, and electronic means, and which may
be conducted by a third-party voting service, The Executive Director shall
prepare an official ballot for each place, listing in alphabetical order according
to surname the nominees for election to that place. If, however, there is only
one (1) nominee for any place, there shall be no election for that place, and
such nominee shall automatically be elected to the Board. Only the names of
those Members who are nominated by petition as prescribed herein shall be
placed upon the official ballot. No Member shall be elected as a Trustee
whose name does not appear upon the official ballot as a nominee. Ballots
shall be made available to the Members no later than July 20 of the election
year. Each Member qualified to vote in said election shall vote for one (1)
nominee only. Any ballot containing votes for two (2) or more persons, or for
persons who are not nominees as prescribed herein, shall be declared invalid,
and shall not be counted. All ballots must be cast no later than August 15.
Votes cast by written ballot must be returned no later than August 15 of the
election year. If the ballot is returned by mail, the envelope must be
postmarked by August 15 of the election year. The Executive Director or a
designated third party shall tabulate all votes for all nominees. The nominee
for each place who receives a majority of the votes cast for that place shall be
declared elected to the Board. Following the tabulation of votes, the Executive
Director shall submit the results to the Board at a meeting to be held before
September I of said election year, at which time the Board shall canvass the
results of said election and certify which nominee is elected for each place on
the Board. If, at the time of canvassing said results, the nominee receiving the
majority of votes for said place is no longer eligible to serve in the place to
which that nominee was elected, then the nominee finishing second in the
election shall be certified by the Board as elected to the Board.
Ordinance No. 20471-10-2012
Page 16 of 92
If there is more than one (1) nominee and no nominee receives a majority of
the votes cast for any one (I) place, or if there is a tie for any one (I) place,
then a run-off election shall be held, with ballots made available to the
Members qualified to vote for that place no later than September I of the
election year, and in the same manner as prescribed for the first election. Only
the names of candidates who tied for the highest number of votes cast for that
place in the first election, or the two (2) candidates who received the highest
number of votes with neither having a majority of votes cast for that place,
shall be printed on the ballot for the run-off election. All ballots for the second
election must be cast by September 20 of the election year. Votes cast by
written ballot must be returned by September 20. If a ballot is returned by
mail, the envelope must be postmarked by September 20. The Executive
Director or a designated third party shall tabulate the votes for the candidates
in the run-off election. The candidate receiving the highest number of votes
cast for that place in the run-off election shall be declared elected to the
Board.
In the event of a tie vote at the second election, the candidates who tie shall
cast lots in the presence of the Board to determine which one (1) shall be
declared elected. Following the tabulation of votes in the run-off election, and
the casting of lots in case of ties, the Executive Director shall submit the
results of same to the Board at a meeting to be held before November I of said
election year, at which time the Board shall canvass the results of the run-off
election and certify which nominee is elected to the Board. If, at the time of
canvassing the results of the run-off election, the nominee elected to serve on
said Board is no longer eligible to serve in the place to which he or she was
elected, then the nominee finishing second in the election shall be certified by
the Board as elected to the Board.
(2) Trustees Elected by Retired Members.
Place S. The Trustee for Place 5 shall be elected by Retiree Group B, which shall
consist of those retired Members of the Fund from Employee Group B. Only
Members of the Fund who qualify for Retiree Group B shall be eligible to vote for
a nominee for Place 5. Only Members of the Fund who qualify for Retiree Group
B shall be eligible to serve in Place 5 on the Board.
Place 6. The Trustee for Place 6 shall be elected by Retiree Group A, which shall
consist of those retired Members of the Fund from Employee Group A. Only
Members of the Fund who qualify for Retiree Group A shall be eligible to vote
for a nominee for Place 6. Only Members of the Fund who qualify for Retiree
Group A shall be eligible to serve in Place 6 on the Board.
Place 7. The Trustee for Place 7 shall be elected by Retiree Group C, which shall
consist of those retired Members of the Fund from Employee Groups C and D.
Ordinance No.20471-10-2012
Page 17 of 92
Only Members of the Fund who qualify for Retiree Group C shall be eligible to
vote for a nominee for Place 7. Only Members of the Fund who qualify for
Retiree Group C shall be eligible to serve in Place 7 on the Board.
a. Term. In accordance with the nomination and election procedures
prescribed in this Section, a Trustee shall be elected for Places 5, 6 and 7, and
shall serve for a two-year ten-n. The Trustee for Place 6 shall be elected to
serve a term from September 1, 2007 through August 31, 2008. Thereafter, the
Trustee for Place 6 shall be elected every even numbered year and shall serve
from September I of such even numbered year through August 31 of the next
even numbered year. Trustees for Places 5 and 7 shall be elected every odd
numbered year beginning in 2007, and shall serve from September 1 of such
odd numbered year through August 31 of the next odd numbered year. Should
a Trustee for Place 5, 6, or 7 return to City employment and again become an
employee Member of the Fund, the Trustee shall automatically forfeit the
office of Trustee for Place 5, 6, or 7. Should a vacancy occur in Place 5, 6 or
7, during the term thereof, then a majority of all Trustees remaining on the
Board shall appoint to the Board a retired Member of the applicable Retiree
Group, to serve the remainder of the unexpired term.
b. Nomination of Retired Members for Election. Nomination of retired
Members for election to the Board shall be by letter of nomination only.
Before May 31 of each election year, the Executive Director shall make
available to retired Members official letter of nomination forms with written
instructions. Copies of the letter of nomination may be used. Completed
letters of nomination shall be returned to the Executive Director prior to July I
of each election year. Each returned letter of nomination shall identify the
retired Member being nominated and the place for which the retired Member
is being nominated and must contain the signature and the last four (4) digits
of the Social Security Number of the retired Member making the nomination.
Any Member of Retiree Group A receiving at least twenty-five (25)
nominations from Retiree Group A shall be considered a nominee for election
to Place 6 on the Board. Any retired Member of Retiree Group B receiving at
least twenty-five(25) nominations from Retiree Group B shall be considered a
nominee for election to Place 5 on the Board. Any Member of Retiree Group
C receiving at least twenty-five (25) nominations from Retiree Group C shall
be considered a nominee for election to Place 7 on the Board. No person shall
be placed on the ballot as a nominee unless the person is a retired Member
who is nominated by the process detailed above.
c. Election of"Retired Board Members. The Executive Director shall provide
for an election procedure as authorized by the Board, including but not limited
to voting by mail, telephone, and electronic means, and which may be
conducted by a third-party voting service. The Executive Director shall
prepare official ballots for the election of the retired Board Members, listing
the nominees in alphabetical order by surname. Ballots for election of retired
Ordinance No.20471-10-2012
Page 18 of 92
Board Members shall be made available to all retired Members in Retiree
Group A, B and C no later than July 20. If there is only one (1) nominee for
Place 5, there shall be no election for Place 5 and the one (1) nominee shall
automatically be elected to the Board. If there is only one (1) nominee for
Place 6, there shall be no election for Place 6 and the one (1) nominee shall
automatically be elected to the Board. If there is only one (1) nominee for
Place 7, there shall be no election for Place 7 and the one (1) nominee shall
automatically be elected to the Board. No person shall be elected as Trustee
whose name does not appear on the official ballot as a nominee. To be
considered valid, a ballot must be cast no later than August 15 of the election
year. Votes cast by written ballot must be returned no later than August 15 of
the election year. If the ballot is returned by mail, the envelope must be
postmarked by August 15 of the election year. Each retired Member qualified
to vote in the election shall vote for one (1) nominee only. Any ballot
containing votes for two (2) or more persons, or for persons who are not
nominees as provided herein, shalt be declared invalid and shall not be
counted. The Executive Director or a designated third party shall tabulate all
votes for all nominees. The nominees for each place receiving a majority of
votes cast shall be declared elected to the Board of Trustees. Following the
tabulation of votes, the Executive Director shall submit the results of same to
the Board meeting to be held before September I of the election year, at
which time the Board shall canvass the results of the election and certify
which nominees are elected to the Board. If, at the time of canvassing the
results, a nominee receiving the majority of votes is no longer eligible to
serve, then the nominee receiving the second highest number of votes from
the appropriate retiree group will fill Place 5, 6 or 7 on the Board. That
Member shall serve from September I of the election year through August 31
of the next election year for that Place.
If there is more than one (1) nominee for a place and no nominee receives a
majority of the votes cast, or if there is a tie, then a run-off election shall be
held, with ballots made available to the retired Members for that place no later
than September I of the election year and in the same manner as prescribed
for the first election. Only the names of candidates who tied for the highest
number of votes cast for that place in the first election, or the two (2)
candidates who received the highest number of votes with neither having a
majority of votes cast, shall be printed on the ballot for the run-off election.
All ballots for the second election must be cast by September 20 of the
election year. Votes cast by written ballot must be returned by September 20
of the election year, If a ballot is returned by mail, the envelope must be
postmarked by September 20 of the election year. The Executive Director or a
designated third party shall tabulate the votes for the candidates in the run-off
election. The candidate receiving the highest number of votes cast in the run-
off election shall be declared elected to the Board of Trustees. In the event of
a tie vote at the second election, the candidates who tie shall cast lots in the
presence of the Board of Trustees to determine which one (1) shall be
Ordinance No. 20471-10-2012
Page 19 of 92
declared elected.
Following the tabulation of votes in the run-off election, and the casting of
lots in case of ties, the Executive Director shall submit the results of same to
the Board at a meeting to be held before November I of said election year, at
which time the Board shall canvass the results of the run-off election and
certify which nominee is elected to the Board. If, at the time of canvassing the
results of the run-off election, the nominee elected to serve on said Board is
no longer eligible to serve, then the nominee receiving the second highest
number of votes from the appropriate retiree term will fill Place 5, 6 or 7 on
the Board. That Member shall serve from September I of the election year to
August 31 of the next election year for that place.
(3) Trustees.Appointed by the Governing Body.
Place 8. The Trustee for Place 8 shall be a resident of the City. A person
appointed under this Section may not be a Member of the Governing Body. The
Trustee for Place 8 shall be appointed by a majority vote of the Governing Body
to serve a term initially commencing September 1, 2007 and ending August 31,
2008. Thereafter, the pet-son appointed by the Governing Body shall serve a term
of two (2) years (unless removed sooner by a majority vote of the Governing
Body) commencing on September I of every even numbered year and ending
August 31 of the next even numbered year. Should a vacancy occur in Place 8,
then Governing Body, by majority vote, shall appoint another eligible resident of
the City to serve the remainder of the unexpired term.
Place 9. The Trustee for Place 9 shall be a resident of the City. A person
appointed under this Section may not be a Member of the Governing Body. The
Trustee for Place 9 shall be appointed by a majority vote of the Governing Body
to serve a term of two (2) years (unless removed sooner by a majority vote of the
Governing Body) commencing on September I of every odd numbered year
through August 31 of the next odd numbered year. Should a vacancy Occur in
Place 9, then Governing Body, by a majority vote, shall appoint another eligible
resident of the City to serve the remainder of the unexpired term.
Place 10. The Trustee for Place 10 shall be a resident of the City. A person
appointed under this Section may not be a Member of the Governing Body. The
Trustee for Place 10 shall be appointed by a majority vote of the Governing Body
to serve a term initially commencing on September 1, 2007, and ending August
31, 2008. Thereafter, the person appointed by Governing Body shall serve a term
of two (2) years (unless removed sooner by a majority vote of the Governing
Body) commencing on September I of every even numbered year through August
31 of the next even numbered year. Should a vacancy occur in Place 10, then
Governing Body, by a majority vote, shall appoint another eligible resident of the
City to serve the remainder of the unexpired ten-n.
Ordinance No. 20471-10-2012
Page 20 ot'92
Place I]. The Trustee for Place I I shall be a resident of the City. A person
appointed under this Section may not be a Member of the Governing Body. The
Trustee for Place I I shall be appointed by a majority vote of the Governing Body
to serve a term of two (2) years (unless removed sooner by a majority vote of the
Governing Body) commencing on September I of every odd numbered year
through August 31 of the next odd numbered year. Should a vacancy occur in
Place 11, then Governing Body, by a majority vote, shall appoint another eligible
resident of the City to serve the remainder of the unexpired term.
Place 12. The Trustee for Place 12 shall be a resident of the City. A person
appointed under this Section may not be a Member of the Governing Body. The
Trustee for Place 12 shall be appointed by a majority vote of the Governing Body
to serve a term initially commencing September 1, 2007, and ending August 31,
2008. Thereafter, the person appointed by Governing Body shall serve a term of
two (2) years (unless removed sooner by a majority vote of the Governing Body)
commencing on September I of every even numbered year and ending on August
31 of the next even numbered year. Should a vacancy occur in Place 12, then the
Governing Body, by a majority vote, shall appoint another eligible resident of the
City to serve the remainder of the unexpired term.
Place 13. The Trustee for Place 13 shall be the chief financial officer of the City.
Should a vacancy occur in Place 13, then Governing Body, by a majority vote,
shall appoint a qualified person to serve until a new chief financial officer is
appointed.
(4) General provisions.
(a) The Members of the Board shall remain in office until their successors are
duly elected or appointed.
(b) At its September meeting, the Board shall elect from its membership a chair
and a vice chair to serve for one (1) year.
(c) 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 chair shall have the power to call a meeting at any time necessary to carry out
the business of the Fund.
(d) Seven (7) Members of the Board shall constitute a quorum to transact any
business unless there are vacancies, in which event the quorum shall be reduced
by the number of vacancies existing. Every matter before the Board for vote shall
require the affirmative vote of a majority of the Trustees on the Board (regardless
of the number of Trustees present at the Board meeting) for final passage.
(e) The Board shall have the power and duty to administer the Fund and to make
and establish any and all rules, regulations and procedures pertaining to the Fund
Ordinance No. 2047 1-1 0-20 1 2
Page 21 of 92
not inconsistent with this ordinance and applicable law.
(f) The Board shall have the power, as it deems necessary and appropriate to
carry out the purposes of the Fund, to retain, enter into contracts and pay from
Fund assets for professional services, including, but not limited, to the following:
actuaries, accountants, attorneys, administrators, consultants, directors and
investment managers or advisors.
(g) The Board shall have the power, as it deems necessary and appropriate to
carry out the business of the Fund, to enter into contracts, agreements and
arrangements to facilitate the administration of the Fund, and to pay for the costs
and expenses of such business and administration out of Fund assets.
(h) The Board has discretion to make all determinations regarding the eligibility
of Members or other persons for benefits from the Fund and the amount and
payee thereof, not inconsistent with this ordinance and applicable law. Therefore,
its decisions shall be final, binding and conclusive on all persons.
(i) In construing this ordinance, the provisions of the Texas Trust Code shall
apply to the extent that they do not differ from this Chapter .
Section 2.5-6. Annual Actuarial Valuations
(a) The Board shall appoint an Actuary for the purpose of providing annual valuations of the
retirement Fund. The Actuary shall also serve as a technical advisor to the Board and the
Executive Director regarding the operations authorized by this Chapter. The actuarial
assumptions and tables used by the Actuary shall assume such costs, liabilities, rates of interest,
mortality, turnover and other factors as are reasonable, taking into account the experience of the
Fund and reasonable expectations, and shall be subject to Board approval. At least thirty (30)
days before the date the Board adopts actuarial assumptions to be used by the Fund, the Board
shall submit to the City Council a detailed report regarding the proposed actuarial assumptions.
The report must include the fiscal impact of the proposed actuarial assumptions on the Fund.
(b) The City shall engage an independent Actuary every five years to perform an audit of the
actuarial valuations, studies, and reports of the Fund in accordance with the provisions of Section
802.1012 of the Texas Government Code, as amended.
Sec. 2.5-7. Disability Pension
(a) De
nition of Disabled Member. A Member is disabled (or continues to be disabled) if,
because of bodily injury, disease or mental illness, the Member is incapacitated for life, in spite
of reasonable accommodations by the City, from performing the essential functions of (i) the
trade, profession or occupation in which the Member was employed by the City when the
Member suffered the bodily injury, disease, or mental illness and (ii) any other position which
the Board determines to be reasonably comparable to the position held by the Member, taking
into account the Member's education, qualifications, experience, salary and other factors which
Ordinance No. 20471-10-2012
Page 22 of 92
the Board deems appropriate; provided, however, that no physical condition existing at the time
of entry into the Fund shall be a basis for a disability pension prior to vesting.
(b) General Provisions.
(1) Such disability must exist for at least ninety(90) consecutive days prior to application
for a disability pension.
(2) Such disability must not have been contracted, suffered or incurred while the Member
was engaged in, or did not result from the Member having engaged in, a criminal
enterprise, or from habitual drunkenness, addiction to narcotics, self-inflicted injury, or
from voluntary or involuntary service in the Armed Forces of the United States
(including the United States Merchant Marine), any of its allies or any other foreign
country.
(3) Notwithstanding the provisions of Sections 2.5-26, 2.5-36, 2.5-46, 2.5-56 and 2.5-66,
no disability pension shall, at the time of commencement, exceed the Member's rate of
Earnings.
(4) To assist the Board in making disability determinations, the City shall provide the
Executive Director with City job descriptions and qualifications, related salary ranges,
and other appropriate information as requested.
(5) Continuation of a disability pension, whether granted before or after the enactment of
this Article, shall be subject to all the provisions of this Section, including review and
determination of the Member's eligibility for a disability pension.
(c) Qualification for Disability Pension.
(1) A Member shall not qualify for a disability pension as hereinafter provided unless one
(1) or more duly licensed and practicing physician(s) appointed by the Executive Director
has determined that the Member is not capable of performing the essential functions of
the positions identified under this Section. Deten-nination of the existence of disability
shall not be made until ninety (90) days after the date such disability is alleged to have
commenced, and benefits shall not commence before the first day of the month following
the month in which such ninety-day period ends.
(2) The Executive Director shall have the appointed physician(s) conduct an annual
medical examination after a disability pension has been granted (unless deemed not
necessary by the Executive Director due to the Member's medical condition) and at any
other time deemed necessary by the Board in order to determine whether the disability is
continuing. The Fund will pay the expenses for medical examinations directed by the
Executive Director or Board. To continue to receive a disability pension, the Member
shall submit to any medical examination required by the Executive Director or Board.
(3) If at any time the Board is in reasonable doubt as to whether the Member is disabled
as above defined, it may suspend the disability pension until the doubt is resolved, which
Ordinance No. 20471-10-2012
Page 23 of 92
shall occur within a reasonable time. Any disability pension shall be tenninated upon the
Board's determination that the Member is not disabled as defined in this Section.
(4) No disability pension coverage shall be provided during a service break in excess of
ninety (90) consecutive days unless the service break was caused by sickness or accident
leading to total disability.
(5) The disability pension specified herein shall not be payable during any period for
which wages are received from the City, the State of Texas or any other branch of
government while performing the duties of a Firefighter or Peace Officer.
(6) Falsification or omission on any part of the employment application of prior
conditions or injuries for which a disability pension is or has been sought, falsification or
omission on any part of the disability pension application, or falsification or omission in
connection with the continuation of a disability pension shall constitute grounds for
denial of a disability pension or for revocation of any disability pension previously
granted.
(7) The Board's determination on all matters concerning the granting, refusing or
revoking of a disability pension shall be final and conclusive on all parties, and no appeal
can be made therefrom. A Member is entitled to a reasonable hearing (at which the
Member may appear in person, with or by a representative, or in writing) before the
Board makes its determination.
(8) No disability pension shall he granted (or continued) while the Member is working
for the City; provided however, a Member may be granted a disability pension if the
Executive Director or the Board has been informed by the City that the Member's
employment is about to be terminated by the City because of the Member's inability to
perform the essential functions of the Member's position. Any such disability pension
granted under Section 2.57(c)(8) shall not become effective until the month after the
Member has stopped working for the City.
(9) Except as otherwise provided by law, to be eligible to continue receiving a disability
pension, a Member must have complied with the medical recommendations (including
rehabilitation therapy and treatment) as prescribed by the Member's treating physician(s),
the physician(s) appointed by the Executive Director and/or the Texas Rehabilitation
Commission.
(d) Calculation of Disability Pension. The calculation for disability pension can be found in
the following Sections:
(1) Section 2.5-26 for a Group III Member;
(2) Section 2.5-36 for a Group IV Member;
(3) Section 2.5-46 for a Group I Member;
Ordinance No. 20471-10-2012
Page 24 of 92
(4) Section 2.5-56 for a Group 11 Member;
(5) Section 2.5-66 for a Firefighter.
(e) Recovery from Disability. If the Board determines that a disabled Member receiving a
disability pension hereunder is no longer disabled as above defined, the Member's disability
pension shall immediately cease. If such Member is re-employed by the City immediately
following such determination by the Board, the Member's Fund membership shall be reinstated
as of the date of such re-employment, with full Credited Service to the date of disability. The
Member shall receive no additional Credited Service for the period of disability, provided
however, that such period of disability shall be used to determine attainment of Normal
Retirement Date and special retirement date. If such Member is not re-employed by the City
immediately following certification of recovery, the Member shall be considered as a terminated
Fund Member and shall have no farther interest in the Fund other than a reFund of any excess of
the Member's total contributions, plus Regular Interest (at the Regular Interest rate in effect on
the date of any reFund), less the amount already received from the Member's Cash Balance
Account, if applicable, over the total of disability payments made to the Member; provided,
however, that if such Member had a Vested interest in pension Credits as of the date of which the
Member was certified disabled, the Member shall receive a Vested Termination Pension from the
later of the date of certification of recovery or attainment of the Vested Retirement Date under
Section 2.5-24, 2.5-34, 2.5-44, 2.5-54, or 2.5-64 whichever is applicable, equal to the amount
which would have been payable under the provisions of this Section had the Member terminated
employment on the date the disability pension began. Any death benefits thereafter shall be
determined in accordance with the applicable provisions of this Article.
(f) Report of Earned Income or Net Earnings from Self-Employment. Any disabled Member
who has not attained Normal Retirement Date or special retirement date and who is receiving a
disability pension shall submit to the Executive Director prior to May I of each year following
disability retirement a copy of the Member's signed income tax return filed for the preceding
year, with all attachments thereto, along with all tax returns and attachments for all of the
Member's affiliated entities, including, but not limited to, partnerships, corporations or other
entities in which the Member, or any relative, owns any interest, including community or
separate property, and for which the Member performs any services, whether compensated or
not, as proof of the Member's Earned Income and net Earnings from self-employment for that
year obtained from any occupation or employment. At the end of the first year of disability
retirement and by May I of each subsequent year, a disabled Member shall also submit to the
Executive Director an affidavit on the Executive Director's approved form swearing that the
Member's Earned Income and net Earnings from self-employment are fully disclosed on the tax
returns provided to the Executive Director and that the disabled Member has not received any
other compensation, directly or indirectly, for services rendered by the disabled Member, nor
performed any services for which the Member received no compensation except as disclosed in
the affidavit, including amounts paid to other affiliated entities for the benefit of the disabled
Member or to any relative of the disabled Member. If the Internal Revenue Service has approved
an extension to file a tax return and the tax return has not been filed by May 1, the Member shall
provide the Executive Director with a copy of the extension by May 1, and a copy of the tax
Ordinance No.20471-10-2012
Page 25 of 92
return with all attachments and the related affidavit, within two (2) weeks after the tax return has
been filed.
If the disabled Member's total receipt of Earned Income, net Earnings from self-employment,
and City disability pension exceed the annualized base hourly rate of pay the Member would
have made during that same tax year had he or she remained employed by the City in the same
position then, as soon as practicable, the Board shall reduce the amount of disability benefits to
be paid to the Member. In reducing a Member's disability pension due to such excess Earnings,
the Board shall consider the Member's then current Earnings, and attempt to recover the
cumulative excess Earnings and preclude excess Earnings in the future. In the event that a
Member's disability pension is reduced in excess of the amount required, the Board shall pay
such excess to the Member. For purposes of Section 2.5-7(t), base hourly rate of pay shall not
include overtime, acting, assignment, holiday, longevity, educational incentive, safety award,
incentive, shift differential or any other special or premium pay.
The Board shall with-hold a disabled Member's disability pension upon the Member's failure to
submit on a timely basis the required income tax returns with all attachments thereto and related
documents. If the disabled Member subsequently provides the required documentation by the
end of the calendar year in which the return was due, the Board shall cause the Member's
disability pension to be reinstated, subject to the other provisions of this Section, and including
the payment of any previously withheld amounts, without interest. If the disabled Member fails
to provide the required documentation by the end of the calendar year in which the return was
due, the disabled Member's disability pension shall be terminated and the Member shall not be
entitled to any payment for the period during which the documentation was not provided.
For purposes of this Section, any amounts paid to a disabled Member's affiliated entity in
connection with the performance of services by the disabled Member shall constitute "Earned
Income," and any attempt to circumvent the limitations under this Article on Earned Income and
Net Earnings from Self-Employment through the use of affiliated entities shall be grounds for the
Board to terminate the disabled Member's disability pension.
See.2.5-8. Cost of Living Adjustment
(a) History. In 1999, City Council adopted Ordinance 13842, which established a
guaranteed simple 2% cost of living adjustment for all Members. In 2007, City Council adopted
Ordinance 1,7839-10-2007, which established an ad-hoc cost of living adjustment for all City
employees hired on or after December 31, 2007, and all Members who were not vested as of
December 31, 2007. All Members who were vested as of December 31, 2007, all retired
Members, and all beneficiaries were allowed to make a selection to either stay with the two (2)
percent simple cost of living adjustment or to receive the ad-hoc cost of living adjustment. The
Members who did not make a selection were automatically defaulted into the two (2) percent
cost of living adjustment. In 2011, City Council adopted Ordinance 19599-03-2011, which
eliminated the cost of living adjustment for General Employees hired after July 1, 2011.
According to the terms of this ordinance amendment, the cost of living adjustment is also
eliminated for Group IV Members.
Ordinance No. 20471-10-2012
Page 26 of 92
(b) Two Percent Simple Cost of Living Adjustment.
(1) The two (2) percent cost of living adjustment is applicable to the following:
a. Members who were vested as of December 31, 2007, who selected the
guaranteed two (2) percent cost of living adjustment during the 2007 selection
process;
b. Members and Beneficiaries (including those receiving disability retirement
and survivors [including children]) receiving benefits on December 31, 2007, who
elected the guaranteed two (2) percent cost of living adjustment in the election
conducted pursuant to the 2007 selection process;
c. Vested Members and Beneficiaries who failed to make a selection during the
2007 selection process;
d. Credited Service earned or purchased on or after October 1, 2013, for Group
III Members, who were subject to the ad hoc cost of living adjustment;
e. Credited Service earned or purchased on or after October 1, 2013, for Group I
Members, who were subject to the ad hoc cost of living adjustment.
(2) 2012 Selection Process
a. Group I Members and Group III Members, who are under the ad hoc cost of
living adjustment and are not currently receiving a benefit from the Fund will be
allowed to make a one-time selection of the two (2) percent guaranteed simple
cost of living adjustment for all Credited Service earned prior to October 1, 2013.
The two (2)percent cost of living adjustment will be based on base pension on the
date of retirement.
b. Members and Beneficiaries currently receiving benefits who are tinder the ad-
hoc cost of living adjustment will be allowed to make a one-time selection of the
guaranteed two (2) percent cost of living adjustment for future years of benefits.
The two (2) percent guaranteed cost of living adjustment will be based on base
salary on the date of retirement. Members and beneficiaries currently receiving
benefits who select the two percent cost of living adjustment during the 2012
selection process will retain the ad-hoc cost of living adjustments previously
received, but will waive their rights to future ad-hoc cost of living adjustments.
Instead, effective January 1, 2014, and annually thereafter, those members and
beneficiaries will receive a two (2) percent cost of living adjustment by adding to
the actual pension for that year, an amount equal to two (2) percent of his or her
base pension. Active Firefighters, and those Firefighters who retired or separated
from employment during the term of the April 13, 2010, Collective Bargaining
Ordinance No. 20471-10-2012
Page 27 of 92
Agreement between the City and the Fort Worth Professional Firefighters
Association IAFF Local 440, are not eligible to participate in the 2012 selection,
however the City may permit a selection at the termination of the 2010 Collective
Bargaining Agreement or by agreement in a subsequent Collective Bargaining
Agreement.
(3) Calculation of the Two Percent Simple Cost of Living Adjustment: Upon
retirement, on the first day of each January a cost of living adjustment shall be made on
the Base Pension of a Member Subject to the two (2) percent cost of living adjustment by
increasing the amount of the actual pension by two (2) percent of the Base Pension,
unless otherwise provided herein, To be eligible for a cost of living adjustment for a
particular year, either the Member or any survivor must have been receiving benefits by
September 30 of the prior year.
(c) Ad Hoe Cost o 'Living Adjustment
li
(1) The ad hoc cost of living adjustment is applicable to the following:
a. Credited Service until September 30, 2013 for Group I Members who were not
vested as of December 31, 2007, and are not currently receiving a benefit
pursuant to this Article, and who did not select to receive the two (2) percent
simple cost of living adjustment during the 2012 Selection Process;
b. Credited Service until September 30, 2013 for Group I Members who were
vested as of December 31, 2007, who selected the ad hoc cost of living
adjustment in the 2007 selection process, and are not currently receiving a benefit
pursuant to this Article, and who did not select to receive the two (2) percent
simple cost of living adjustment during the 2012 Selection Process;
c. Credited Service until September 30, 2013 for Group III Members who were
not vested as of December 31, 2007, and are not currently receiving a benefit
pursuant to this Article, and who did not select to receive the two (2) percent
simple cost of living adjustment during the 2012 Selection Process;
d. Credited Service until September 30, 2013 for Group III Members who were
vested as of December 31, 2007, who selected the ad hoc cost of living
adjustment in the 2007 selection process, and are not currently receiving a benefit
pursuant to this Article, and who did not select to receive the two (2) percent
simple cost of living adjustment during the 2012 Selection Process;
e. Firefighters who began service after December 31, 2007;
f. Firefighters hired prior to December 31, 2007, who were not vested as of
December 31, 2007;
g. Firefighters who were vested as of December 31, 2007 who selected the ad
Ordinance No. 20471-10-2012
Page 28 of 92
hoc cost ofliving adjustment;
b Members and Beuefiobadcu [including those receiving disability retirement and
survivors (including children)] receiving benefits under this /\dkclo who are
tinder the ad hoc cost ofliving adjustment, and who did not elect to return to the
guaranteed two (2) percent simple cost of living oJjuohncot during the 2012
aoiccx/ou.
(2) Co/ru/o//ox of the /4d Hoc Cost »/L/v/ng Adjustment: Upon retirement, on the
first day of each January thereafter, an ad hoc cost of living adjustment may be made on
the pension of Members who are subject to the ad hoc cost of living adjustment pursuant
to Section 2.5-0(u) an [oUovva:
n. Prior to I)oosoubor 31 of each year, the Fund's Actuary shall nuukt u written
report to the Board certifying the amortization period required to pay off the
uoFnndcd aotuodu| accrued liability of the Fund. Based on the information
provided hy the Actuary, the Board shall:
l. Grant u compounded od hoc cost n[living adjustment of four (4) percent,
if the Actuary certifies that the unuodizadoo period required to pay off the
unFuudod ucUzoriu) accrued liability of the Fund, after granting the four (4)
percent cost nf living adjustment, ia eighteen (]8.0) years ocless;
2. Grant a compounded nd hoc cost of living adjustment of three (3) percent,
if the /\otuo,y oodifiou that the aroodizednu period required to pay off the
uuFunded uoiuoda| accrued liability of the Fund, after granting the (brmc (3)
percent coat of living ndiuotroeo(, in hetvvucn eighteen and one-tenth (\8.])
and twenty-four(24.0) years;
3. Grant a compounded ud hoc cost of living adjustment of two (2) percent, if
the Actuary scr6fiem that the amortization period required to pay off the
uoFuudnd no(uedo| accrued liability of the Fund, after Q7uuhug u two (2)
percent cost of living adjustment, is between tv/coty-fournud one-tenth (24.1)
and ivveoty-eiek\(28.0) years;
4. Grant no ad hoc cost of living adjustment if the Actuary certifies that the
uozodizudou period required to pay off the uoFuodod actuarial accrued
liability ofthe Food in twenty-eight and one-tenth (28.l) years ormore.
(d) DROP and Cost of Living djuwtmemt.
(l) If Momhxz elects the ad bno cost of living odium1cncut and by I}eoeonhcr 9l'
2007, the Member has completed at |euaL two (2) years of service after making u Z)[({)P
Election, the Member's initial pension bcuofitupon retirement will also receive a2% cost
of living adjustment for the l)}l(}P period before the Menuher made the ad hoc cost of
living election. The ad boo cost of living mbuotmmuLa will apply for the Member's
Ordinance No.2047l 10-2012
Page 29of02
remaining DROP period.
(2) If a Member elects the two (2) percent cost of living adjustment, and by
December 31, 2007, the Member has completed at least two (2) years of service after
making the DROP Election, the Member's initial pension benefit upon retirement will
also receive cost of living adjustments for the entire DROP period.
(3) A Member who makes a DROP Election but who does not complete at least two (2)
years of service after making the Drop Election will only be eligible to receive a cost of
living adjustment after the Member's retirement, based on whether the Member is entitled
to a cost of living adjustment.
See. 2.5-9. Deferred Retirement Option Program (DROP)
(a) General, In lieu of the Standard Pension Benefit or the Alternative Pension Benefit, a
Member who has attained his or her Normal Retirement Date may elect to remain in active
service with the City and to participate in the DROP. By making an election to participate in
DROP, the Member's commencement of retirement pension benefits will be deferred until the
Member's actual retirement and the Member will receive a lump sum payment [unless such
person elects installment payments pursuant to Section 2.5-9(j)] of his or her DROP Account at
the time the Member's actual retirement pension benefits commence. No interest on Earnings
shall be paid on the lump sum payment. Once a Member makes a DROP Election and the DROP
Election is approved by the Board, the DROP Election is irrevocable and is effective as long as
the Member remains in active service with the City. Distribution of a Member's DROP Account
will not be made, and commencement of the Member's retirement pension benefits will not
begin, until the Member retires from the City. DROP shall be administered in accordance with
the rules, procedures and forms as may be adopted and amended by the Board in its complete
discretion, which shall be uniform and nondiscriminatory and which shall be interpreted in a
manner that is consistent with the provisions of this Article and applicable law.
(b) Procedure for DROP Election, A DROP Election shall be made in accordance with the
rules, procedures and forms (including spousal consent, where applicable) as may be adopted by
the Board. The election form adopted by the Board may be amended by the Board, and, except as
otherwise provided by the Board, the election form in effect at the time of the Member's DROP
Election is effective shall control all DROP benefits the Member may become entitled to receive
upon retirement. A Member shall not be subject to any fees, charges, or any other similar
expenses in connection with a DROP Election.
(c) Timing and Irrevocability of a DROP Election. A Member may make a DROP Election
at any time on or after the date that is sixty(60) days prior to the date that the Member will attain
his or her Normal Retirement Date or special retirement date. Once effective, a Drop Election is
irrevocable, provided, however, that a Member's DROP election shall not be effective until the
Member attains his or her Normal Retirement Date.
(d) The DROP Account. A Member's DROP Account is an individual account established on
behalf of the Member into which a monthly amount will be credited once the Drop Election is
Ordinance No. 20471-10-2012
Page 30 of 92
effective. The monthly amount credited to the Member's DROP Account will hoequal to the
monthly pension benefit that the Member would have initially received if the Member had retired
from the City and commenced his or her pension. Credits no u Member's [)BL()Y Account will
continue k) hemade until the Member's actual retirement, provided, however, that amounts will
be credited to o Member's OE({}P Account for umaximum Vf five(5) years. No vvi(hdruvvolu may
bc made from the DROP Account. /\ Member will receive his or her DROP Account iuulump
muro distribution at the time the Member's pension benefits commences upon ze(irrrocoL or` if
elected by the Member, the [)BLOP /\oonuut will be distributed in ivatu})ooentm, as provided in
Section 2.5-90).
(e) Continued Contributions to the Fund. Once a DROP Election is t[fesdvc' both the
Member and the City shall continue to make the same contributions to the Fund that would have
been made if the Member had not made u DROP B|nc600. 74ciLbec the Member's nor the City's
contributions to the Fund will be credited to the Member's DROP Account and the additional
contributions will not affect the Member's monthly pension upon actual retirement.
(D Monthly Pension and Ad floe Cost ofLiving Adjustment. Upon retirement following an
effective DROP Election, the Member's Base Pension will bethe monthly pension heoufita that
the Member had earned at the time the DROP Election hocumo effective. The h1crober'u
Earnings and Credited Service following the DROP Election will not be included in calculating
the Member's Base Pension and monthly pension benefits. If(and only if) a Member completes
at least two (2) years of service with the City after his or her DROP Election is effective, then the
monthly pension benefits that the Member initially receives opno retirement will be adjusted for
intervening cost of living xdiuninueota, if applicable, as if the Member's nzootb1y pension had
commenced at the time the DF{()P Election beounoc otbodvc Further, such u Member abu|l
receive o cost of living udivairueot on the following January 1, regardless of whether the
Member's pension benefits had commenced by September 30. Notwithstanding the preceding
provisions of this Scodoo 2.5-9(f), when u Mcnuhur'u cuootbiy pension is initially scheduled to
corocoeooe a( retirement ordeath, the Member's base pension mhu|| be recalculated by adjusting
the Member's Credited Service for the Member's then accumulated sick leave and major rned(oai
leave(if any) pursuant to Section 2.5-4(b).
(u) DROP Election and 0cutb Psmaino. Ifu Member dies while his or her DROP Election is
in effect, the Member's DROP Account aba}| be paid to the Member's spouse, or if there is no
spouse, Lo the Member's estate. The spouse ocestate eligible tn receive the DROP Account shall
receive the [>K()Y Account in u lump munu distribution, uolcao an o|oodno is nuudo to receive
installment payments pursuant to this Section, The remaining portion o[the Member's pension
sbuU be paid pursuant to the death pension provisions of this Article, with the amount determined
umif the Member had died a1 the time of the DROP Election.
(b) DROP 61ucdoo and Disability Pension. if u Member nnakom a DROP Election, the
Member will not be eligible to receive a disability pension under this Article. If Member does
hcooroe disabled fh)\ovviug an effective DROP Eiuodou, the Mcmhcz may rciino from the City
and receive the arriount that has been credited to the Member's DROP Account in a lump sum or
in iuutn||mueut puyoo*utn pursuant to Section 2.5-96), and ounnnneuce receipt of u nuoutb|y
pension, with the amount of the pension calculated as if the Member had retired at the time the
Ordinance No. 204?| 10'2012
Page 31 of 92
Z)R()P Election became effective.
(i) Alternative ycuaiou Benefit. A Member who has made a DROP Election sbuU not be
eligible to cicot an Alternative Pension Benefit.
(j) lonte|boeot 9u}moeota. NohwdboLuodiog the preceding provisions of this Section, o
Member who is entitled to receive u lump sum payment of his urher DROP Account may elect
(on u600u adopted by the Board) to receive the DROP Account in five (5) substantially equal
annual iva\u}\0000\ payments, cutbor than a \onup sum. The first inpiu|icoeot payment ubul| be
made at the time the Member's monthly pension commences, and the other iumiullroouio nbu|l be
nnudc on or about the anniversary of the initial inuto))nnooL No ioieceni on Earnings obu)| be paid
on the installment payments.
Sec. 2'5-1Q' Payment ofBenefits
(a) When benefits are payable to u minor, an individual who has legally been determined to
|ook capacity, or an individual whom tire Board doisoniueu to be uooh)e to baod|o money, the
Board obu|\ make payments, without any duty to see to the application ibermmf, 1n the guardian of
such poruou`o estate or, if there is none, an the Board dcienminen to he in the best interest of such
person.
(b) If u retired City cnny|oyoe who is receiving pension hroefi\o from the Fund is re-
employed by the City as urogu|ar employee, that pucaou'a pension benefits ahu|| onuoo upon the
date otco-ozup)o}onout. Credited Service earned during the term of any Member's subsequent re-
employment in which the employee's pension benefits have been suspended shall be added to the
Credited Service ofthe prior periods ofemployment, and upon fiuo| separation from the City, u
new pension shall bocalculated taking into account the Member's total years ofCredited Service
and rcuu|cu|utcd Connpcouudoo Base. In no event mbu|| the Member's rountb}y pension be
reduced due to periods ofro-emp)o}nnroi.
(u) If the diu(rihuieo of an eligible rollover distribution (as defined in the Code, Section
402(f)(2)(8) (U elects to have such distribution paid directly to another eligible retirement plan
and (ii) specifies in writing (before the distribution is ouadc) the eligible retirement plan to vvb(uh
such distribution is to be made, the diabdhu\k)n will he cnudo in the tbon of direct truutee-in-
tnuoteu transfer to the eligible ro{iremont plan mn specified.
See. 2.5-l1' Exemption wf benefits from judicial process
(u) The City ubu|| never he held liable or responsible for any c|oicu or asserted oluino for
bonofitaunder the provisions of this urtio]m, but all c\uinun obu|| be paid from the Fund for which
provision has been specifically made in this division. Notwithstanding the preceding ucotoocc,
the City, pursuant to its policies, programs and upp|jcuh\c law, abul| indemnify and hold
baoo|euu the Board and its individual nnmoobo,o against any and all loss, damage and expense,
including court costs and attorney's fees, resulting from nr arising out of the actions and inactions
of the I}oau1 and its members in connection with the performance of their duties under the
retirement ordinance, provided, however, that such obligation of the City to indemnify and hold
burm|000 obu|| not apply to any Member nfthe Board to the extent that the loss, damage or
Ordinance No.2047l-lO-2V|2
Page 32ofA2
expense is attributable to such Member's gross negligence or willful misconduct.
(b) No portion of this Fund shall, at any time before or after its disbursement, be held, seized,
taken, subjected to or detained or levied upon by virtue of any execution, attachment,
garnislunent, assignment, injunction or other writ, order or decree, or any processor 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 person entitled to a benefit from this
Fund, nor shall the Fund, or any claim thereto, be directly or indirectly, assigned or transferred,
and any attempt to transfer or assign same shall be void; provided that (1) nothing in this Section
shall prevent the deduction of the spouse's insurance premiums from the Fund for the purpose of
paying same, on behalf of the spouse, to the health and life insurance carrier for the City only,
and (2) nothing shall prevent the Fund from dividing a Member's pension benefit between the
Member and a former spouse and/or children or other dependents of the Member according
to the terms of a valid court order from a court of competent jurisdiction as set forth in Section
2.5-11(c).
(c) The court order must be a "qualified domestic relations order" within the meaning of
Section 414(p) of the Code and must also satisfy the provisions of Section 2.5-11. The maximum
pension benefit that can be paid to a former spouse is fifty(50) percent of the Member's pension
benefit. The order must state a specific amount payable monthly or a percentage of the Member's
pension benefit to be divided between the Member and the former spouse. Except as otherwise
provided below with respect to the return of the Member's contributions, no single sum payment
shall be made to a former spouse.
Upon the Member's death, no further monthly pension benefit shall be paid to the former spouse.
If, however, at the time of the Member's death, the Member and the former spouse had not yet
received pension benefits from the Fund in excess of the Member's total contributions to the
Fund (plus Regular Interest), the Member's remaining contributions (plus Regular Interest) shall
be divided between the Member and the former spouse according to (i) the ratio of the pension
benefit payable to the former spouse divided by the pension benefit payable to the Member but
for the divorce, or (ii) the percentage used to calculate the pension benefit payable to the
Member and the former spouse. The former spouse shall receive his or her portion of the
remaining contributions (plus Regular Interest) in a single sum distribution.
If such deceased Member died with no dependent child, dependent parent, or surviving spouse to
whom the Member had been married for at least the one (I.) year immediately prior to the
Member's retirement, the Member's portion of the remaining contributions (plus Regular
Interest) shall be paid in a single sum to the Member's estate. If the deceased Member died with a
dependent child (or children), dependent parent (or parents), or a surviving spouse to whom the
Member had been married for at least the one (1) year immediately prior to the Member's
retirement, such person(s) shall be entitled to a monthly benefit under the terms of this division,
but adjusted as provided below. Upon a single sum payment to the former spouse, such monthly
pension benefit shall be reduced according to the following methodology:
(1) Create a fraction, the numerator of which is the single sum amount paid to the
former spouse and the denominator of which is the sum of the Member's contributions
Ordinance No. 20471-10-2012
Page 33 of 92
(plus Regular and the City's contributions on behalf ofthe
(2) Multiply that fraction by the monthly pension benefit vvbicb would otherwise be
payable to the dependent child, parent or surviving spouse; and
(3) The difference hetvvucn the rcunb of the acooud atop and the monthly pension
benefit vvbiob would otherwise be payable to the dependent child, dependent parent or
surviving spouse io the monthly pension benefit which should be paid tn the dependent
child, dependent parent or surviving spouse.
Since any pension benefit payable to afbnmorspouse is derived from the Member's pension, a
former opmums'm pension bouofii abui| not oo/nnneuuc until the Meonhe/m pension benefit
oonuroeuoen.
If Member with respect to vvhmno u former spouse has obtained u domestic ce|uiinoo order
purporting to be a'quu|ifitd doroemhu relations order ternuiuutcm employment with the City and
receives armturu of contributions (plus f{cgn|oo {utcrnad rattler than upenaion benefit, the
6000«x spouse shall not receive u pension benefit, but shall instead receive uperoeo1ugc (or fixed
dollar amount) nf the returned contributions (plus Regular Interest).
No court order shall bo honored i[it:
(l) Provides for any fhon of benefit or option not otherwise provided by this
division;
(2) Requires the Fund to provide increased benefits determined on the basis ofactuarial
value; or
(3) Kcqoiocw the pu}uneut of benefits to u fbooer spouse that are required to be paid to
another former spouse.
/dA lJo}emo odbcnvixo cxpnuoo)y provided for in this division, the Board obuJl not reduce an
individual pension.
(e) No part of the corpus or income of the Fund shall ever revert to the City or be used for, or
diverted to, any purpose other than for the exclusive purpose of providing benefits to noeonhcro
and their beneficiaries in accordance with the terms of this division.
Sec. %'5-1%' Amendment uKordinance
The Governing Body, consistent with the Constitution, the laws ofthe State ofTexas, and the
Charter of the City of Fort Wodb, mba|\ have the power and authority to urnuod any or all of the
temos and provisions of this article, except where an aoocmdooeot in the City's contribution rote
would require the issuance of tax-supported bonds approved atun election of the qualified voters
of the City of Fort Worth.
Ordinance No.2047l 10'I812
Page]4of92
See. 2.5-13. Controlling power nfordinance
The provisions of this division shall be cumulative of and in addition to all other ondinu000m of
the City of Fort YVodb relating to pensions, which ondioonooa are hereby preserved and
continued in force and effect; provided, however, that in the event of any conflict, the provisions
of this division shall control.
See. 2.5-l4' Prerequisites toordinance
The Governing Body finds that all 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 division have been done, have happened and have been perfon-ned in proper
and lawful time.
See. 2.5-l5, Limitation of legal rights
By reason of the benefits and coverage herein and the additional burdens placed upon the City of
Fort Worth and the Fund, it is expressly provided that no Member ofthe Fund mbu|| have the
hobt to sue the City with respect to this Fund for disability sustained in line of duty, as
heretofore defined; and by virtue ofmembership in the Fund, the Member accepts the benefits
provided bythe Fund in lieu of any alleged right at law to sue the City or thisFund for damages.
No heir or legal representative ofu Member who is injured in line ofduty, v/biok injury rVmuha in
death, xbu}l have the right to sue the City for dozoagesbyreason thereof, but such heir or legal
representative shall accept the heocfi1m provided under the employees' retirement Fund
oo]ioaucVo of the City of Fort Worth in lieu of such fight to noc for dunnngea in u court of
competent jurisdiction.
Sections 2.5-16-19: Reserved
Ordinance No.2047l 10-2012
Page 35of92
DIVISION 2 - PROVISIONS FOR GROUP III MEMBERS (POLICE OFFICERS HIRED
PRIOR TO JANUARY 1,2013)
Sec. 2.5-20. Applicability
This Division applies only to Group III Members as defined by Section 2.5-1.
Sec. 2.5-21. Earnings
(a) For Credited Service earned prior to October 1, 2013, Earnings shall mean the amount
actually paid to a Group III Member by the City for services rendered to the City during the
calendar year, plus overtime, acting, assignment, holiday, longevity, educational incentive, safety
award, incentive and shift differential pay, as reported on the Group III Member's W-2 form.
"Earnings" shall also include weekly workers' compensation benefits (currently referred to as
temporary income benefits), beginning for such amounts received by Group III Members on or
after January 1, 2006, so long as required by law. Regardless of the fact that the following
payments may be shown on a Group III Member's W-2 form, Earnings shall not include:
(1) Any non-salary allowance (such as uniform reimbursement, automobile
allowance or mileage, etc.),
(2) Lump sum 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 a Group III Member for which the City does not contribute to
the Fund under Section 2.5-3(b).
A Group III Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group III Member during the calendar
year added to Earnings reported on the Group III Member's W-2 form to arrive at total Earnings
for Fund matters. Mandatory Group III Member contributions that are picked-up by the City and
excluded from a Group I11 Member's W-2 form shall also be included as part of Earnings.
Notwithstanding the foregoing, Earnings in excess of two hundred thousand dollars
($200,000.00), 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 for
all purposes of this definition of Earnings. Notwithstanding the preceding provisions of this
definition of Earnings, Earnings shall not include any amounts paid following a Group III
Member's effective DROP Election.
(b) For Credited Service earned on or after October 'l, 2013, Earnings shall mean the amount
actually paid to a Group III Member by the City for services rendered to the City during the
calendar year, plus acting, assignment, holiday, longevity, educational incentive, safety award,
incentive and shift differential pay, as reported on the Group III Member's W-2 form. "Earnings"
Ordinance No.20471-10-2012
Page 36 of 92
shall also include weekly workers' compensation benefits (currently referred to as temporary
income benefits), beginning for such amounts received by Group III Members on or after
January 1, 2006, so long as required by law. Earnings shall not include any amount received
as a result of overtime. Regardless of the fact that the following payments may be shown on a
Group III Member's W-2 form, Earnings shall not include:
(1) Any non-salary allowance (such as uniform reimbursement, automobile
allowance or mileage, etc.),
(2) Lump sum 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 a Group III Member for which the City does not contribute to
the Fund under Section 2.5-3(b).
A Group III Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group III Member during the calendar
year added to Earnings reported on the Group III Member's W-2 form to arrive at total Earnings
for Fund matters. Mandatory Group III Member contributions that are picked-up by the City and
excluded from a Group III Member's W-2 form shall also be included as part of Earnings.
Notwithstanding the foregoing, Earnings in excess of two hundred thousand dollars
($200,000.00), 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 for
all purposes of this definition of Earnings. Notwithstanding the preceding provisions of this
definition of Earnings, Earnings shall not include any amounts paid following a Group III
Member's effective DROP Election.
Sec. 2.5-22. Retirement Dates
(a) Normal Retirement Date. A Group III Member shall be eligible for pension benefits on or
after the Group III Member's Normal Retirement Date which shall be the last day of the month in
which the earliest of the following occurs:
(1) The Group III Member's years of age and years of Credited Service total eighty
(80); or
(2) The later of (1) the date on which the Group III Member reaches age sixty-five
(65) or(ii) the fifth anniversary of the date the Group III Member joined the Fund; or
(3) The last day of the month in which such Group III Member's years of Credited
Service total twenty-five.
Ordinance No. 20471-10-2012
Page 37 of 92
(b) Vested Retirement Date. A Vested Group III Member who is voluntarily or involuntarily
separated from the service of the City shall be eligible for pension benefits on or after such
Group III Member's Vested termination date which shall be the last day of the month in which
the Group III Member reaches age fifty (50), or, if earlier, the last day of the month in which the
Group III Member would have attained his or her Normal Retirement Date had the Group III
Member remained employed by the City.
Sec. 2.5-23. Compensation Base for Determining Benefits
(a) Compensation Base For Determining Group III Member Benefits For Credited Service
Earned or Purchased Prior to October 1, 2013.
(1) For Group III Members hired and Vested prior to October 23, 2007 (not subject to
the 12% Earnings cap), pension, death benefits, disability pension and Vested
termination benefits for Credited Service earned or purchased prior to October 1, 2013,
shall be based upon the Group III Member's Compensation Base which shall mean the
average annual Earnings as defined by Section 2.5-21(a) which were paid to the Group
III Member by the City for employment with the City during any three (3) calendar years
in which the Group III Member had the highest annual Earnings. If a Group III
Member's last day of employment with the City is prior to January 1, 1999, "five (5)"
shall be substituted for"three(3)" in the preceding sentence,
(2) For Group III Members who were not vested by October 23, 2007, and for Group
III Members hired After October 23, 2007, but prior to January 1, 2013 (subject to the
12% Earnings cap), pension, death benefits, disability pension and Vested termination
benefits for Credited Service earned or purchased prior to October 1, 2013, shall be based
upon the Group III Member's Compensation Base which shall mean the average annual
Earnings, as defined by Section 2.5-21(a) which were paid to the Group III Member by
the City for employment with the City during any three (3) calendar years in which the
Group III Member had the highest annual Earnings, subject to the following limitations:
a. The Fund shall determine the four (4) calendar years in which the Group III
Member had the highest annual Earnings. Of such four (4) years, the year in
which the Group III Member had the lowest an-nual Earnings shall serve as the
base year. The base year shall not be included as one (1) of the three (3)
calendar years for purposes of the Compensation Base calculation.
b. The first annual Earnings to be used in the calculation of the Group III
Member's Compensation Base shall be the actual annual Earnings from the
calendar year with the third highest annual Earnings of the four (4) calendar
years identified in Section 2.5-23(a)(2)a., provided that if such annual Earnings
are from a calendar year beginning on or after January 1, 2008, the amount to be
used in the calculation of the Compensation Base for the first year shall not
exceed one hundred twelve (112) percent of the annual Earnings for the base
year.
Ordinance No. 20471-10-2012
Page 38 of 92
c. The second annual Earnings to be used in the calculation of the Group III
Member's Compensation Base shall be the actual annual Earnings from the
calendar year with the second highest annual Earnings of the four (4) calendar
years identified in Section 2.5-23(a)(2)a., provided that if such annual Earnings
are from a calendar year beginning on or after January 1, 2008, the amount to
be used in the calculation of the Compensation Base for the second year shall not
exceed one hundred twelve (112) percent of the annual Earnings used that are
attributable to the year described in Section 2.5-23(a)(2)b..
d. The third annual Earnings to be used in the calculation of the Group III
Member's Compensation Base shall be the actual annual Earnings from the
calendar year with the highest annual Earnings of the four (4) calendar years
identified in Section 2.5-23(a)(2)a., provided that if such annual Earnings are
from a calendar year beginning on or after January 1, 2008, the amount to be
used in the calculation of the Compensation Base for the third year shall not
exceed one hundred twelve (112) percent of the annual Earnings used that are
attributable to the year described in Section 2.5-23(a)(2)c.
e. The average of the three (3) amounts determined in accordance with Section
2.5-23(a)(2)a.- 2.5-23(a)(2)d. will be the average annual Earnings for purposes of
the Group III Member's Compensation Base.
(b) Compensation Base for Determining Benefits for Credited Service Earned or Purchased,
on or After October 1, 2013: pension, death benefits, disability pension, and Vested termination
benefits for Credited Service earned or purchased from October 1, 2013 to the date of
termination shall be based upon the Group III Member's average annual Earnings as defined by
Section 2.5-21(b), which were paid to the Group III Member by the City for employment with
the City during any five (5) calendar years in which the Group III Member had the highest
annual Earnings. The Compensation Base for Credited Service earned or purchased on or
after October 1, 2013, does not include overtime.
(c) If a Group III Member has less than three (3), or if applicable, five (5) calendar years of
employment, the Group III Member's Compensation Base shall be determined by the Executive
Director tinder uniform, non-discriminatory procedures that are consistently applied.
(d) For Compensation Base purposes, any lump sum payments of Earnings for any prior time
period, whether awarded to the Group III Member by a court, administrative body or settlement
agreement, shall be retroactively attributed to the calendar year in which it would otherwise have
been received by the employee from the City for services rendered.
(e) For purposes of computing the Compensation Base for a Group III Member who has
made an effective DROP Election, the Group III Member's Compensation Base shall be
calculated using the Group III Member's Earnings prior to the effective date of the DROP
election.
Ordinance No. 2047 1-1 0-20 1 2
Page 39 of 92
See. 2.5-24' Ter"nmtiomK&mmefibn and Vesting
(a) Contribution ReFund Prior to Vesting. Any Group D[ Member who is voluntarily or
involuntarily separated from the service of the City before the Group III Member is Vested obo1i
be entitled to receive the amount ofthe Group II{ Member's contributions plus }legu|uz Interest
(at the Regular Interest rate in effect on the date of such payment) less any amount previously
paid to the Group III Member from the Fund,
(h) >estcd7enn/no//onPenx/ox.
(l) /\ Vested Group III Member who in voluntarily or involuntarily separated from
the service of the City shall be entitled to receive u Vested Termination Pension payable:
(i) in full, pursuant to Section 2.5-22(h) or (ii) in orsduoed amount commencing 000r
after ago fifty (50). A Group {l[ Member must file ureqneoL for the onroozeucenoeu< of
the Vested Tenniout(uu Pension by cnnup|edog such [boum and fb)|uvviug such
procedures uyare established by the Board. A Vested Tuouinmdou Pension sbu|) he
payable monthly on the first day of each nnootb 000unoeooiog with the n0001b fhi|ovviug
approval nf the Group III Member's Vested T000ioudoo Pension by the Board.
(2) A Vested Termination Pension shall be an annual life pension, the amount of
which shall he the specified percentage u[the Group Ill Member's Compensation Dooe
multiplied hythe Group III Member's total years of Credited Service to date of such
voluntary or involuntary separation from the service of the City. For purposes of the
preceding sentence, the specified percentage of the Group O} Member's Compensation
Base abu|i be two and seventy-five one-hundredths (2.75) percent for all Credited
Service carried or purchased prior to October l` 2813, and two and Lvvcuty-fivc one-
hundredths (2.25)percent for Credited Service earned or purchased oonr after October |`
2013' uo|oxe the Group Ill Member has attained his or her Normal Retirement 0uie or
Vested }lchrcmcot Date prior to the date the Group ID Member's pension payments
begin, in which ouac the specified percentage shall be three (3) percent for all Credited
Service earned or purchased prior to October l` 2013 and shall be two and fifty one-
hundredths (2.5) percent for all Credited Service earned or purchased on or after October
l, 2013. A Vested Termination Pension xbu|| be ou|cu|uiod using the specified
percentage and Compensation Base iu effect at the time the Group III Member earned ur
purchased the Credited Service for all Credited Set-vice earned or purchased after October
l2Ol3.
(3) In addition to the reduced nnu|dp\icr describe in Section 2.5-24(b)(2), if Group
III Member has not uibaiood his or her Noonu| Be\iroozoo( OuK: or Vested Ru{ireocui
Du1c prior to the date the Group Ill Member's \/oatoj Termination Pension payments
begins, the amount of reduction for commencement ofu pension prior bn the Group Ill
Member's Normal [luhrcruen1 L)a|o or Vested Retirement Date shall be five-twelfths
(5112) percent for each ounotb by vvbicb nornnnououmoot of the pension antedates the
Group l{[ Member's I1ooma| B!nhn:cuoot Date had the Group Ill Member remained
employed hy the City.
Ordinance No. 2047)-l0-20L2
Page 4V^[92
ki Contribution ReFond after Vesting in l/ou of Vested Termination Pension. Any Vested
Group Dl Member who is voluntarily or involuntarily separated from the mucvioo of the City may
o|oot to receive o roFuod of the Group III Member's contributions, plus Regular {utocnat (at the
Regular Interest nUc in effect on the date of such po}oonuU |oxx any amount previously .aid to
the Group II} Member from the Fund, either at the date of such separation or at ' dnno
thereafter pdurt000roou0000nncntofIlednanneotBens�t' but hyon doing, the (3noupIII 'omuher
shall forfeit all rights under the Fund and thereafter be entitled to no further benefits hereunder.
Sec. 2.5-25. Retirement Pension (Pension Benefits)
(u) Pensions Commencing Prior to October l, 20\3
(l) A \/em{ud L]ruop |T| M000hor who ncdrem on or after the Group III Menohcr`a
Nonou\ Retirement Date and who n:guew(a oonnnouococnVot of the Group III Member's
pension prior to October l, 2013, or a Group ll1 Member who tunniuu1ox crny|o}mout
prior to October |, 2013, and prior to the Group III Member's Normal Retirement Date
and who vvai10 until such \/uatod Kctiracnoot Date to apply for a pension, nhu|) ncorivo an
unouui life pension, the amount of which shall be three (3.U) percent o[ the Group Ill
Meuohor`y applicable Compensation Bumc as defined by Section 2.5-23(u)(1) or (u)(2),
whichever is applicable, multiplied by the Group |I} Moozhuc'n total years of Credited
Service, payable rnnuib|y on the first day of each nuootb commencing with the r000ib
following the Board's approval of the Group Dl Menuhoc'm pouaino. This retirement
pension shall bc defined uo the"Group III Member's Standard Pension Benefit A."
(2) Alternative Pension Benmfi1
In lieu of the Group l(l Member Standard Pension Benefit A, u Group III Member under
this subsection may irrevocably elect with his or her spouse's consent (where applicable),
in udvuuoo of his or her rodrorntut and pursuant to regulations and ccquirun000to the
Board in its discretion may adopt, to receive an "Alterriative Pension Benefit" which shall
be Actuarially Equivalent to the Group III Member's Standard Pension Benefit A and
which uba\| he payable in two (2) parts: (1) one (l) part in a lump uuco amount not less
than five (5) percent nor greater than twenty-five (25) percent of the Actuarial Equivalent
uf the Group III Mocobc,'m Pre-October l, 2013 Standard Pension Benefit A, which lump
sum shall he payable oo the date benefits commence under (i1); and (11) the remainder in
an annual life pension, payable monthly on the first day of each month commencing with
the month following the Board's approval of the Group III Member's Alternative Pension
Benefit.
(3) Limitation nu Alternative Pension Denefi1
Notwithstanding any u{bcr provision in this Division to the contrary, the option to elect
an }\bornudve Pension Benefit shall not be uvudub|c for any disability pooaino under
Section 2.5'20, death benefit under 3cohoo 2.5-27, or normal \/cyicd Tonoioudoo
Pension under Section 2.5-24' nor shall dboavailable to any Group Dl Member who is
receiving pension boueO1a as of the effective date of the Alternative Pension Benefit
Ordinance No. 2O47l 10-2012
Page 41 o{92
provisions of this Section, nor shall it be available upon re-retirement to any retired
Group III Member who becomes re-ernployed by the City.
(b) Pensions Commencing On or After October 1, 2013
(1) Pensions Commencing Upon Normal Retirement Date or Vested Retirement Date for
Group 111 Members Hired and Vested Prior to October 23, 2007, Whose Pensions
Commences On or After October 1, 2013 (not subject to the 12% Earnings cap): A
Vested Group III Member hired and Vested prior to October 23, 2007, who retires on
or after the Group Ill Member's Normal Retirement Date and requests commencement of
the Group III Member's pension on or after October 1, 2013, or a Group III Member
who terminates employment on or after October 1, 2013,. and prior to the Group III
Member's Normal Retirement Date and who waits until such Vested Retirement Date to
apply for a pension, shall receive an annual life pension, the amount of which is
calculated by adding the following:
a. Three (3.0) percent of the Group III Member's Compensation Base as defined
by Section 2.5-23(a)(1) multiplied by the Group III Member's years of Credited
Service from date of hire until September 30, 2013; and
b. Two and fifty one-hundredths (2.5) percent of the Group III Member's
Compensation Base as defined by Section 2.5-23(b) multiplied by the Group III
Member's years of Credited Service from October 1, 2013, until date of
termination.
(2) Pensions Commencing upon Normal Retirement Date for Group X Members
Hired Prior January 1,2013 and Not Vested by October 23, 2007 (subject to the
Earnings cap): A Group III Member hired prior to January 1, 2013, who was not Vested
by October 23, 2007 who retires on or after the Group III Member's Normal Retirement
Date and requests commencement of the Group III Member's pension, and whose
pension commences on or after October 1, 2013, or who terminates employment on or
after October '1, 2013, but prior to the Group III Member's Normal Retirement Date and
who waits until such Vested Retirement Date to apply for a pension, shall receive an
annual life pension, the arnount of which is calculated by adding the following:
a. Three (3.0) percent of the Group III Member's Compensation Base as defined
by Section 2.5-23(a)(2) multiplied by the Group III Member's years of Credited
Service from date of hire until September 30, 2013; and
b. Two and fifty one-hundredths (2.5) percent of the Group III Member's
Compensation Base as defined by Section 2.5-23(b) multiplied by the Group III
Member's years of Credited Service from October 1, 2013 until date of
termination.
(3) The pension should be payable monthly on the first day of each month
commencing with the month following the Board's approval of the Group III Member's
Ordinance No. 20471-10-2012
Page 42 of 92
pension benefit. This retirement pension shall be defined as the "Group III Member
Standard Pension Benefit B"
(c) Alternative Pension Benefit. In lieu of the Group III Member Standard Pension Benefit A
or B, a Group III Member may irrevocably elect with his or her spouse's consent (where
applicable), in advance of his or her retirement and pursuant to regulations and requirements the
Board in its discretion may adopt, to receive an "Alternative Pension Benefit" which shall be
Actuarially Equivalent to the Group III Member's Standard Pension Benefit A or B and which
shall be payable in two (2) parts: (1) one (1) part in a lump sum amount not less than five (5)
percent nor greater than twenty-five (25) percent of the Actuarial Equivalent of the Group III
Member's Standard Pension Benefit A or B, which lump sum shall be payable on the date
benefits commence under (ii); and (ii) the remainder in an annual life pension, payable monthly
on the first day of each month commencing with the month following the Board's approval of the
Group III Member's pension.
(d) Limitation on Alternative Pension Benefit. Notwithstanding any other provision in this
Division to the contrary, the option to elect an Alternative Pension Benefit shall not be available
for any disability benefits under Section 2.5-26, death benefits under section 2,5-27, or Vested
Termination Pension under Section 2.5-24, nor shall it be available to any Group III Member
who is receiving pension benefits hereunder as of the effective date of the Alternative Pension
Benefit provisions of this Section, nor shall it be available upon re-retirement to any retired
Group III Member who becomes re-employed by the City.
See. 2.5-26. Disability Pension
(a) See Section 2.5-7, for General Provisions related to Disability Pension
(b) Disability in Line of Duty. If a Group III Member, whether or not Vested, becomes
disabled as defined in Section 2.5-7, while in Line of Duty, the Group III Member shall receive
an annual life pension, the amount of which shall be the specified percentage of the Group III
Member's Compensation Base multiplied by the Group III Member's total years of Credited
Service which would have accrued if the Group III Member had worked to the Group III
Member's Normal Retirement Date, but not less than two hundred fifty dollars ($250.00) per
month. For purposes of the preceding sentence, the specified percentage of the Group III
Member's Compensation Base shall be two and three quarters (2.75) percent, unless the Group
III Member is already eligible to retire on or after his or her Normal Retirement Date, in which
case the Group Ill Member shall receive the Standard Pension Benefit.
(c) Disability Not in Line of Duty for Vested Group III Members Whose Disability Pension
Commences Prior to October 1, 2013: If a Vested Group Ill Member becomes disabled as
defined in Section 2.5-7, while not in Line of Duty, and the Group Ill Member's pension
commences prior to October 1, 2013, the Group Ill Member shall receive an annual life pension,
the amount of which shall be the specified percentage of the Group Ill Member's Compensation
Base, multiplied by the Group Ill Member's total years of Credited Service to date of actual
retirement. For purposes of the preceding sentence, the specified percentage of the Group Ill
Member's Compensation Base shall be two and seventy-five one-hundredths (2.75) percent,
Ordinance No. 20471-10-2012
Page 43 of 92
unless the Group III Member is already eligible to retire on or after the Group III Member's
Normal Retirement Date, in which case the specified percentage shall be three(3.0) percent.
(d) Disability Not in Line o Duty for Vested Group III Members Whose Disability Pension
f Y Y
Commences On or After October 1, 2013. If a Vested Group III Member becomes disabled as
defined in Section 2.5-7, while not in Line of Duty, and the Group III Member's pension
commences on or after October 1, 2013, the Group III Member shall receive an annual life
pension, the amount of which shall be determined by adding the following:
(1) a specified percentage of the Group III Member's Compensation Base as defined
by Section 2.5-23(a)(1) for Group III Members hired and Vested prior to October 23,
2007, or a specified percentage of the Group III Member's Compensation Base as defined
by Section 2.5-23(a)(2) for Group III Members who were hired prior to January 1, 2013,
and were not Vested by October 23, 2007, multiplied by the Group III Member's years of
Credited Service from date of hire until September 30, 2013. For purposes of the
preceding sentence, the specified percentage of the Group III Member's Compensation
Base for Credited Service pursuant to this Section 2.5-26(d)(1) shall be two and seventy-
five one-hundredths (2.75) percent; and
(2) a specified percentage of the Group III Member's Compensation Base as defined
by Section 2.5-23(b), multiplied by the Group III Member's years of Credited Service
from October 1, 2013, until the date of disability. For purposes of the preceding
sentence, the specified percentage of the Group III Member's Compensation Base for
Credited Service pursuant to this Section 2.5-26(4)(2) shall be two and twenty-five one-
hundredths (2.25) percent.
(e) Disability Not in Line of Ditty' .for Non-Vested Group III Members. If a Group III
Member becomes disabled while not in Line of Duty before the Group III Member is Vested,
then such Group III Member shall be entitled to receive a contribution reFund in accordance with
Section 2.5-24(a).
See. 2.5-27. Death Benefit
(a) While In Line of Duty
(1) If a Group III Member dies before retirement while in Line of Duty and as a result
of the performance of that Group III Member's duties, the surviving widow or widower
shall be entitled to receive a monthly pension, the amount of which shall be seventy-five
(75) percent of the Group III Member's pension, based on the number of years of
Credited Service that would have accrued had the Group III Member lived to the Group
III Member's Normal Retirement Date, but not less than two hundred fifty dollars
($250.00).
(2) Each dependent child of such Group III Member under eighteen (18) years of age
shall be entitled to receive a monthly pension, the amount of which shall be one hundred
dollars ($100.00), provided however, that if no surviving widow or widower shall be
Ordinance No. 20471-10-2012
Page 44 of 92
entitled to receive u o)outb}y pension pursuant to the h:oox of this Section, all such
dependent children sbuU share equally u monthly pension, the amount of which shall be
seventy-five (75) percent of the Group lD Member's pension, huood on the number of
years ofCredited Service that would have uoonucd had the (]noop ll{ Member lived to the
(3nouplllMenuber'mNonnu\ Eiedcoroeut [}aic, butoo( lcoutbanbvnbuodrodfiftydo||uro
<$250.00\.
(3) If u Group {|| Member dies while in Line of Duty and |euvcu no v/idnvv or
widower or children eligible to receive u benefit hereunder, but is survived by a
dependent parent or parents, such dependent parent(s) ubuil be entitled to receive a
monthly pension, the amount of which shall be seventy-fivc (75) percent of the Group III
Member's accrued pension projected io the Group III Member's Normal Retirement Date,
but not less than two hundred fifty dollars ($250.0O).
(4) The survivor's monthly pension benefit for a Group III Member who dies in Line
of Duty under this subsection shall be calculated using a multiplier of three (3.0) percent.
(h) While Not in Line mrDitty.
(l) Peo/eJ Group /I/Member Who /}/oo /Vo/ in Line of Ditty and nmvo Survivor's
Monthly Pension Begins Prior to October /' 2013:
u. If u \/cmtod Group Dl Member dies before retirement, vvbilo not in Line of
Doty` and the survivor monthly pension benefit begins pdn, to October l` 2013,
tbcu the surviving widow or widower wbuD be eoddod to receive a romo(hly
pension, the amount of vvbicb shall be ocvcuLy-fivo (75) percent of the Group Ill
Member's accrued pension but not less than one hundred fifty dollars ($150.00).
6. Each dependent child under eighteen (l8) years uf age o[such Vested Group
III Member mho|| be entitled to receive a monthly pension, the amount of which
shall he one hundred dollars ($100.00), provided, however, that ifon surviving
widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this subsection, all such dependent children shall share equally a monthly
pension, the amount of which shall be seventy-five (75) percent of the Group III
Mcnubor'm accrued pension,but not less than one hundred fittydollars ($l5O.00).
o. If Vested Group III Member dies vvbiln not in Line of Duty and leaves no
widow or widower or children eligible to receive a benefit under this subsection,
but is survived by a dependent parent or parents, such dependent parent(s) shall be
entitled to receive a monthly pension, the amount of which shall beseventy-five
(75) percent ofthe Group III Member's accrued pension, projected to the Group
III Member's Normal Retirement Dote, but not less than one hundred fifty dollars
($l5O.00).
d. For purposes o[Section 2.5-27Od(\), u Group III Member's accrued pension
shall be ouiou1utod using o multiplier of two and seventy-five one-hundredths
Ordinance No. 2047l'l0-20l2
Page 45nf92
(2.75) percent, unless the Group III Member had reached the Group III Member
Normal Retirement Date prior to death, in which event the multiplier shall be
three (3.0) percent.
(2) Vested Group III Member Who Dies Not In Line of'Duty and Whose Survivors
Monthly Pension Begins, On or After October 1, 2013:
a. If a Vested Group III Member dies before retirement, while not in Line of
Duty, and the survivor pension begins on or after October 1, 2013, then the
surviving widow or widower shall be entitled to receive a monthly pension, the
amount of which shall be seventy-five (75) percent of the Group III Member's
accrued pension but not less than one hundred fifty dollars ($150.00). The
accrued pension shall be calculated by adding the following:
1. a specified percentage of the Group III Member's Compensation Base as
defined by Section 2.5-23(a)(1) for Group III Member's hired and Vested prior
to October 23, 2007, or a specified percentage of the Group III Member's
Compensation Base as defined by Section 2.5-23(a)(2) for Group III Members
who were hired prior to January 1, 2013, and were not Vested by October 23,
2007, multiplied by the Group III Member's years of Credited Service from
date of hire until September 30, 2013. For purposes of the preceding sentence,
the specified percentage of the Group III Member's Compensation Base for
Credited Service for this time period shall be two and seventy-five one-
hundredths (2.75) percent; and
2. a specified percentage of the Group III Member's Compensation Base as
defined by Section 2.5-23(b), multiplied by the Group III Member's years of
Credited Service from October 1, 2013, until the date of death. For purposes Of
the preceding sentence, the specified percentage of the Group III Member's
Compensation Base for Credited Service for this time period shall be two and
twenty-five one-hundredths (2.25) percent.
b. Each dependent child under eighteen (IS) years of age of such Vested Group
III Member shall be entitled to receive a monthly pension, the amount of which
shall be one hundred dollars ($100.00); provided, however, that if no surviving
widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this Section, all such dependent children shall share equally a monthly
pension, the amount of which shall be seventy-five (75) percent of the Group III
Member's accrued pension, but not less than one hundred fifty dollars ($150.00).
C. If a Group '111 Member dies while not in Line of Duty and leaves no
widow or widower or children eligible to receive a benefit hereunder, but is
survived by a dependent parent or parents, such dependent parent(s) shall be
entitled to receive a monthly pension, the amount of which shall be seventy-five
(75) percent of the Group 1.11 Member's accrued pension, but not less than one
hundred fifty dollars ($150.00).
Ordinance No. 20471-10-2012
Page 46 of 92
(3) Group III Member Not Vested x/ Time ofDeath. Ifu Group III Member was not
Vested on the date of death, the surviving widow or widower ubo|| be cnd(|oj to the
return ofall contributions which the Group |R Member paid into the Fund during the
Group Dl Member's |iD: plus Regular Interest thereon (u1 the 6lcgo|ar Interest rate in
effect on the date of any payment to the widow or vvidwv/m). If there is not u surviving
widow or widower, the contributions shall b«paid tothe estate of the Group III Member.
(c) Alter Retirement.
(|) Upon the death of retired Group III Member, the surviving widow or widower
shall be entitled to receive a monthly pension, the amount of which shall be seventy-five
(75) percent of the pension being paid to the Group III Member, provided that the Group
III Member and surviving widow or widower had been married for at least one (|) year
immediately prior to the Group lll Member's retirement. Notwithstanding the preceding
aco1eucc, u surviving widow or widower who was not nuunied to the doocuacd Group III
Mcnuboc for at least one (l) year immediately prior to the Group III Member's zehcccoeo\
mbu\| be eligible to receive u nnoudh|y pension if the Group lll Member has elected to
receive a reduced monthly pension, on a form and subject to procedures developed by the
Executive Director` p/iLbio six (6) months after the Croup III Member's conun|ciioo of
two (2) years of nuuoiugn to the Group Ill Meozhcc`x spouse. The reduced roon<b|y
pension shall be actuarially determined in a manner that is actuarially neutral to the Fund,
based on Actuarial Iuhioo in effect on the date ofthe GnnoP III Monohu/a c|codou 10
receive o reduced monthly pension. If such an election has been made, the surviving
vvidnvv or widower mbu\) receive o monthly pension for life equal to seventy-five (75)
percent of the Group III Member's reduced monthly pension.
(2) Group III Members Who Are Not Married mo Date o/Retirement. Upon the death ot
arodred Group lK Member who was not married at retirement, u Beneficiary designated
by the Group III Member at retirement may be eligible to receive u ouondb\y pension if
the Group III Member has elected to receive reduced monthly pension, on ufhoo and
subject to procedures developed by the Executive Director. The [}nuuy [II Member's
reduced monthly pension sbu\\ be actuarially determined in u couuoer that is actuarially
neutral to the Fund, based on }\ctnodu) Tables in effect on the date of the Group ([I
Munuhor'u u\cudou to receive u reduced n000rb\y pension. The Group |ll Member can
elect for his or her designated Beneficiary to receive either one hundred (100) percent,
seventy-five (75) percent fifty (50) percent, or twenty-five (25) percent of the Group |{{
Member's reduced cuoodb\y pension. If Group I[[ Member who was not married at
retirement and who selected u doa)guu1ed Beneficiary pucsnuoL to this Section |u<cr
marries only the designated Beneficiary would be eodUcd to receive o Ufcdnne nunudbiy
pension.
(3) Each dependent child under eighteen (18) years of age of such retired d000uaod
[)nnop III Member aba}i he entitled to receive u nountbiy pension, the amount of which
Ordinance No.20471-10-2012
Page 47o{VZ
shall be one hundred dollars ($l00.00), � n�| �� ��u � ��i� ofm� �|d�
eighteen 88> pursuant Wthe terms of this Article.
(d) Death qfVes/ed Terminated Group III Alem/er Prior mPension Commencing. If
terminated Group Dl Member entitled tnu pension dies before the Group 1I] Member's pension
commences, the Group III Member's designated Beneficiary, or if none, the Group III Member's
eoto(r abo\| receive an un0000i equal to the Group lD Member's total contributions to the Fund,
p}no Regular |oiocemL If the \/oe(ed Group O| Member's years of age and years of Credited
Service (o(u| at least sixty-five (05) as of the date of the Group lD Member's termination, the
Group III Member's eligible dependents shall receive the benefit specified under Section 2.5-
27(b), based on the pension to which the Group Ill Member would have been entitled usofthe
date of the Group lll Member's death, in lieu of the payment of contributions plus Regular
Interest. |f the Group III Member's years o{age and service did not total at least sixty-five (65) as
of the date ofthe Group lll Mccohcr'a 0onmiuudoo, the Group III Member's eligible dependents
may choose between the reFund of contributions, the payment of the survivor benefit at the date
the Group III Member would have been eligible to draw the benefit, or uu immediate benefit at
ao actuarially reduced rate.
(c) General Provisions
(l) If u deceased Group III Member leaves no widow, vvidwvvcr, designated
Beneficiary, obi}droo or dependent parents eligible to receive u beuobi hc»000dnr, the
Group III Member's total contributions plus Regular Interest (at the Regular Interest rate
in effect on the date of any such payment) less any amount previously paid to him or her
from the Fund, shall be paid tw the Group III Member's estate.
(2) Payments to a child ubu|L be ruodo p/hotbor or not u widow, widower, or
designated Beneficiary survives and abul\ continue after the death of widow, widower,
or designated Beneficiary but xbn|i cease upon the earliest of such child's death,
ouaoi age, oc attainment u[age eighteen (18). Payments ioa dependent parent shall cease
upon such parent's death. For purposes of this Division, a parent will be deemed to he
dependent if the Group Ill Member provides over one half of the purmot`o support.
Payments iou widow, widower, or designated Beneficiary mbu1l continue uMcc
ncnnurdugo, but abu\l cease upon the death of the widow, vvidnvvcr, or designated
Beneficiary. Payments to u widow or widower forfeited due to remarriage, under prior
provisions of this Section will be reinstated upon written request by the widow or
widower, but uo retroactive payment can hcmade. After payments cease, any excess of
the Group III Member's total cmu{dhuhoua over and above disability and/or death
b000fita paid, plus ]togu}uc Iuturxmi at dnLu of death o ubuU be paid to the Group III
Member's estate.
(3) Except as provided in Socbuo 2.5-27(d), death benefit coverage during service
breaks in mxucoo nf ninety (90) consecutive calendar days mbu\l be ]irni(od to Group III
Members who are absent due to service-connected injury incurred while in Line ofDuty.
Ordinance No. 20471-10-2012
Page 48ofy2
(4) Benefits hereunder shall be payable on the first day of each month commencing
with the month following the month in which the Group III Member's death occurs. Tile
Board shall determine all questions ofdependency, and its determination shall be final
and conclusive on all parties. All unzuanjcd' |ogidnoa1c and legally adopted children
under the age vf eighteen (lQ) years, iu the absence of determination to the contrary, nbuU
be considered dependent.
Sec. 2.5-28-29: Reserved
0ndLnuooe No, 20471'10'2012
Page 49of92
DIVISION 3 — PROVISIONS APPLICABLE TO GROUP IV MEMBERS (POLICE
OFFICERS HIRED ON OR AFTER JANUARY 1, 2013)
See. 2.5-30. Applicability
This Division shall apply to Group IV Members as defined by Section 2.5-1.
See. 2.5-31. Earnings
(a) Earnings shall mean the amount actually paid to a Group IV Member by the City for
services rendered to the City during the calendar year, plus acting, assignment, holiday,
longevity, educational incentive, safety award, incentive and shift differential pay, as reported on
the Group IV Member's W-2 form. "Earnings" shall also include weekly workers' compensation
benefits (currently referred to as temporary income benefits), beginning for such amounts
received by Group IV Members on or after January 1, 2006, so long as required by law,
Earnings does not include any amount received as a result of overtime. Regardless of the
fact that the following payments may be shown on a Group IV Member's W-2 form, Earnings
shall not include:
(1) any non-salary allowance (such as uniform reimbursement, automobile allowance
or mileage, etc.),
(2) lump sum 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,
(4) any payment received from the City's Wellness Program
(5) any amount received from the City's vacation sell-back program, and
(6) any amount paid to a Group IV Member for which the City does not contribute to
the Fund under Section 2.5-3(b).
A Group IV Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group IV Member during the calendar
year added to Earnings reported on the Group IV Member's W-2 form to arrive at total Earnings
for Fund matters. Mandatory Group IV Member contributions that are picked-up by the City
and excluded frorn a Group IV Member's W-2 form shall also be included as part of Earnings.
Notwithstanding the foregoing, Earnings in excess of two hundred thousand dollars
($200,000.00), 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
for all purposes of this definition. Notwithstanding the preceding provisions, Earnings shall not
include any amounts paid following a Group IV Member's effective DROP Election.
Ordinance No. 20471-10-2012
Page 50 of 92
See. 2.5-32. Retirement Dates
(a) Normal Retirement Date. A Group IV Member shall be eligible for pension benefits on or
after the Normal Retirement Date which shall be the last day of the month in which the earliest
of the following occurs:
(1) The Group IV Member's years of age and years of Credited Service total eighty
(80); or
(2) The later of(i) the date on which the Group IV Member reaches age sixty-five (65) or
(ii) the fifth anniversary of the date the Group IV Member joined the Fund; or
(3) The last day of the month in which such Group IV Member's years of Credited
Service total twenty-five.
(b) Vested Terminated Retirement Date. A Vested Group IV Member who is voluntarily or
involuntarily separated from the service of the City shall be eligible for pension benefits on or
after such Group IV Member's Vested Termination Date which shall be the last day of the
month in which the Group IV Member reaches age fifty (50), or, if earlier, the last day of the
month in which the Group IV Member's age when added to his or her Credited Service totals
eighty(80).
Sec. 2.5-33. Compensation Base for Determining Benefits
(a) Pension, death, disability and Vested termination benefits shall be based upon the Group
IV Member's Compensation Base which shall mean the average annual Earnings which were
paid to the Group IV Member by the City for employment with the City during any five years. If
a Group IV Member has less than five (5) calendar years of employment, the Group IV
Member's Compensation Base shall be determined by the Executive Director Linder uniform,
non-discriminatory procedures that are consistently applied.
(b) For Compensation Base purposes, any lump sum payments of Earnings for any prior time
period, whether awarded to the Group IV Member by a court, administrative body or settlement
agreement, shall be retroactively attributed to the calendar year in which it would other-wise have
been received by the Group IV Member from the City for services rendered.
(c) For purposes of computing the Compensation Base for a Group IV Member who has
made an effective DROP Election, the Group IV Member's Compensation Base shall be
calculated using the Group IV Member's Earnings prior to the effective date of the DROP
Election.
See. 2.5-34. Termination Benefits and Vesting
(a) Contribution ReFund Prior to Vesting. A Group IV Member who is voluntarily or
involuntarily separated from the service of the City before the Group IV Member is Vested shall
Ordinance No. 20471-10-2012
Page 51 of 92
be entitled to receive the amount of the Group IV Member's contributions plus Regular Interest
(at the Regular Interest rate in effect on the date of such payment) less any amount previously
paid to the Group IV Member from the Fund,
(b) Vested Termination Pension.
(1) A Vested Group IV Member who is voluntarily or involuntarily separated from
the service of the City shall be entitled to receive a Vested Termination Pension payable:
(1) in full, pursuant to Section 2.5-32(b) or (ii) in a reduced amount commencing on or
after age fifty(50). A Group IV Member must file a request for the commencement of the
Vested Termination Pension by completing such forms and following such procedures as
are established by the Board. A Vested Termination Pension shall be payable monthly on
the first day of each month commencing with the month following approval of the Vested
Termination Pension by the Board.
(2) A Vested Termination Pension shall be an annual life pension, the amount of
which shall be the specified percentage of the Group IV Member's Compensation Base
multiplied by his or her total years of Credited Service to date of such voluntary or
involuntary separation from the service of the City. For purposes of the preceding
sentence, the specified percentage of the Group IV Member's Compensation Base shall
be two and twenty-five one-hundredths (2.25) percent, unless the Group IV Member has
attained his or her Normal Retirement Date or Vested Retirement Date prior to the date
that pension payments begin, in which case the specified percentage shall be two and
fifty one-hundredths (2.5) percent. A Vested Termination Pension shall be calculated
using the specified percentage and Compensation Base in effect at the time the Group IV
Member's earned the Credited Service.
(3) If a Group IV Member has not attained his or her Normal Retirement Date or
Vested Retirement Date prior to the date the Vested Termination Pension payments
begins, the amount of reduction for commencement of a pension prior to the Group IV
Member's Normal Retirement Date or Vested Retirement Date [in addition to the
specified percentage of two and one quarter (2.25) percent], shall be five-twelfths (5/12)
percent for each month by which commencement of the pension antedates the Group IV
Member's Normal Retirement Date had he or she remained employed by the City.
(c) Contribution ReFund After Vesting in Lieu of'Nested Termination Pension. Any Vested
Group IV Member who is voluntarily or involuntarily separated from the service of the City may
elect to receive a reFund of the Group IV Member's contributions, plus Regular Interest (at the
Regular Interest rate in effect on the date of such payment) less any amount previously paid to
the Group IV Member from the Fund, either at the date of such separation or at any time
thereafter prior to commencement of Retirement Benefit, but by so doing, the Group IV Member
shall forfeit all rights under the Fund and thereafter be entitled to no further benefits hereunder.
Ordinance No.20471-10-2012
Page 52 of 92
Sec. 2.5-35. Retirement Pension (Benefit)
(a) Pensions Commencing upon Normal Retirement Date. A Vested Group IV Member
under this Division who retires on or after the Group IV Member's Normal Retirement Date and
requests corrunencement of the Group IV Member's pension, or a Group IV Member who
terminates employment prior to the Group IV Member's Normal Retirement Date and who waits
until such Vested Retirement Date to apply for a pension, shall receive an annual life pension,
the amount of which shall be two and fifty one-hundredths (2.5) percent of the Group IV
Member's Compensation Base multiplied by the Group IV Member's total years of Credited
Service, payable monthly on the first day of each month commencing with the month following
the Board's approval of the Group IV Member's pension. This pension benefit shall be called the
"Group IV Member's Standard Pension Benefit."
(b) Alternative Pension Benefit. In lieu of the Standard Pension Benefit, a Group IV Member
may irrevocably elect with his or her spouse's consent (where applicable), in advance of his or
her retirement and pursuant to regulations and requirements the Board in its discretion may
adopt, to receive an "Alternative Pension Benefit" which shall be Actuarially Equivalent to the
Group IV Member's Standard Pension Benefit and which shall be payable in two (2) parts: (i)
one (1)part in a lump sum amount not less than five (5) percent nor greater than twenty-five (25)
percent of the Actuarial Equivalent of the Group IV Member's Standard Pension Benefit, which
lump sum shall be payable on the date benefits commence under(ii); and (ii) the remainder in an
annual life pension, payable monthly on the first day of each month commencing with the month
following the Board's approval of the Group IV Member's pension.
(c) Limitation on Alternative Pension Benefit. Notwithstanding any other provision in this
Division to the contrary, the option to elect an Alternative Pension Benefit shall not be available
for any disability pension under Section 2.5-36, death benefit under Section 2.5-37, or normal
Vested Termination Pension under Section 2.5-34, nor shall it be available to any retired Group
IV Member who is receiving pension benefits hereunder as of the effective date of the
Alternative Pension Benefit provisions of this Section, nor shall it be available upon re-
retirement to any retired Group IV Member who becomes re-employed by the City.
Sec.2.5-36. Disability Pension
(a) See Section 2.5-7 for General Provisions related to Disability Pension
(b) Disability in Line of Duty. If a Group IV Member, whether or not Vested, becomes
disabled as defined in Section 2.5-7 while in Line of Duty, the Group IV Member shall receive
an annual life pension, the amount of which shall be the specified percentage of the Group IV
Member's Compensation Base multiplied by the total years of Credited Service which would
have accrued if the Group IV Member had worked to Normal Retirement Date, but not less than
two hundred fifty dollars ($250.00) per month. For purposes of the preceding sentence, the
specified percentage of the Group IV Member's Compensation Base shall be two and twenty-five
one-hundredths (2.25) percent, unless the Group IV Member is already eligible to retire on or
after his or her Normal Retirement Date, in which case the specified percentage shall be two and
fifty one-hundredths (2.5) percent.
Ordinance No. 20471-10-2012
Page 53 of 92
(c) Disability Not in Line of Ditty for Vested Group IV Members. If a Vested Group IV
Member becomes disabled, as defined in Section 2.5-7, while not in Line of Duty, the Group IV
Member shall receive an annual life pension, the amount of which shall be the specified
percentage of the Group IV Member's Compensation Base multiplied by the Group IV Member's
total years of Credited Service to date of actual retirement. For purposes of the preceding
sentence, the specified percentage of the Group IV Member's Compensation Base shall be two
and twenty-five one-hundredths (2.25) percent, unless the Group IV Member is already eligible
to retire on or after the Group IV Member's Normal Retirement Date, in which case the specified
percentage shall be two and fifty one-hundredths(2.5) percent.
(d) Disability Not in Line of Duty for Non-Vested Group IV Members. If a Group IV
Member becornes disabled while not in Line of Duty before the Group IV Member is Vested,
then such Group IV Member shall be entitled to receive a contribution reFund in accordance
with Section 2.5-34(a).
See. 2.5-37. Death Benefit
(a) While in Line of'Duty
(1) If a Group IV Member dies before retirement while in Line of Duty and as a result
of the performance of that Group IV Member's duties, the surviving widow or widower
shall be entitled to receive a monthly pension, the amount of which shall be seventy-five
(75) percent of the Group IV Member's pension, based on the number of years of
Credited Service that would have accrued had the Group IV Member lived to the Group
IV
Credited
Normal Retirement Date, but not less than two hundred fifty dollars
($250.00).
(2) Each dependent child of such Group IV Member under eighteen (18) years of age
shall be entitled to receive a monthly pension, the amount of which shall be one hundred
dollars ($100.00), provided however, that if no surviving widow or widower shall be
entitled to receive a monthly pension pursuant to the terms of this Division, all such
dependent children shall share equally a monthly pension, the amount of which shall be
seventy-five (75) percent of the Group IV Member's pension, based on the number of
years of Credited Service that would have accrued had the Group IV Member lived to the
Group IV Member's Normal Retirement Date, but not less than two hundred fifty dollars
($250.00).
(3) If a Group IV Member dies while in Line of Duty and 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
(75) percent of the Group IV Member's accrued pension projected to his or her Normal
Retirement Date, but not less than two hundred fifty dollars ($250.00).
Ordinance No. 20471-10-2012
Page 54 of 92
(4) The survivor's monthly pension benefit for a Group IV Member who dies in Line
of Duty shall be calculated using a multiplier of two and fifty one-hundredths (2.5)
percent.
(b) While Not in Line of Duty.
(1) Vested Group IV Member.
a. If a Vested Group IV Member dies before retirement, 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 (75) percent of the Group IV
Member's accrued pension but not less than one hundred fifty dollars ($150.00).
b. Each dependent child under eighteen (1$) years of age of such Vested Group
IV Member shall be entitled to receive a monthly pension, the amount of which
shall be one hundred dollars ($100.00); provided, however, that if no surviving
widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this Division, all such dependent children shall share equally a monthly
pension, the amount of which shall be seventy-five (75) percent of the Group IV
Member's accrued pension, but not less than one hundred fifty dollars ($150.00).
c. If a Group IV Member dies while in not in Line of Duty and 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 (75) percent of the Group IV Member's accrued pension, projected to
the Group IV Member's Normal Retirement Date, but not less than one hundred
fifty dollars ($150.00).
d. The survivor's monthly pension benefit for a Vested Group N Member who
dies not in Line of Duty shall be calculated using a multiplier of two and twenty-
five one-hundredths (2.25) percent.
(2) Group IV Member Not Vested at Time of Death. If a Group IV Member was not
Vested on the date of death, the surviving widow or widower shall be entitled to the
return of all contributions which the Group IV Member paid into the Fund during the
Group IV Member's life plus Regular Interest thereon (at the Regular Interest rate in
effect on the date of any payment to the widow or widower). If there is not a surviving
widow or widower, the contributions shall be paid to the estate of the Group IV Member.
(c) After Retirement.
(1) Group IV Members Who are Married at Retirement. The surviving spouse of a
Group IV Member who dies after retirement would be eligible to receive a monthly
pension if the Group IV Member elected to receive a reduced monthly pension prior to
Ordinance No. 20471-I0-2012
Page 55 of 92
retirement, on a form and subject to procedures developed by the Executive Director of
the Fund. The Group IV Member's reduced monthly pension shall be determined in a
manner that is actuarially neutral to the Fund, based on Actuarial Tables in effect on the
date of the Group IV Member's election to receive a reduced monthly pension.
Notwithstanding the preceding, a surviving spouse who was not married to the deceased
Group IV Member at the time of his or her retirement shall be eligible to receive a
monthly pension if the Group IV Member has elected to receive a reduced monthly
pension, on a form and subject to procedures developed by the Executive Director, within
six (6) months after the Group IV Member's completion of two (2) years of marriage to
his or her spouse. The reduced monthly pension shall be actuarially determined in a
manner that is actuarially neutral to the Fund, based on Actuarial Tables in effect on the
date of the Group IV Member's election to receive a reduced monthly pension. The
Group IV Member can elect for his or her surviving spouse to receive either one hundred
(100) percent, seventy-five (75) percent, fifty (50) percent, or twenty-five (25) percent of
the Group IV Member's reduced monthly pension.
(2) Group IV Members Who Are Not Married on Date of Retirement. Upon the death
of a retired Group IV Member, who was not married at retirement, a Beneficiary
designated by the Group IV Member at retirement may be eligible to receive a monthly
pension if the Group IV Member has elected to receive a reduced monthly pension, on a
form and subject to procedures developed by the Executive Director. The Group IV
Member's reduced monthly pension shall be actuarially determined in a manner that is
actuarially neutral to the Fund, based on Actuarial Tables in effect on the date of the
Group IV Member's election to receive a reduced monthly pension. The Group TV
Member can elect for his or her designated Beneficiary to receive either one hundred
(100) percent, seventy-five (75) percent, fifty (50) percent, or twenty-five (25) percent of
the Group IV Member's reduced monthly pension. If a Group IV Member who was not
married at retirement and who selected a designated Beneficiary pursuant to this
subsection later marries, only the designated Beneficiary would be entitled to receive a
lifetime monthly pension,
(3) Each dependent child under eighteen (18) years of age of such retired deceased
Group IV Member shall be entitled to receive a monthly pension, the amount of which
shall be one hundred dollars ($100.00), but shall cease upon the earliest of such child's
death, marriage or attaituncrit of age eighteen (18) pursuant to the terms of this Article.
(d) Death of Vested Terminated Group IV Member Prior to Pension Conuriencing. If a
terminated Group IV Member entitled to a pension dies before his or her pension commences,
the Group IV Member's designated Beneficiary, or if none, the Group IV Member's estate shall
receive an amount equal to the Group TV Member's total contributions to the Fund, plus Regular
Interest. If the Vested Group IV Member's years of age and years and Credited Service total at
least sixty-five (65) as of the date of the Group IV Member's termination, the Group IV
Member's eligible dependents shall receive the benefit specified under Section 2.5-37(b), based
on the pension to which the Group IV Member would have been entitled as of the date of the
Group IV Member's death, in lieu of the payment of contributions plus Regular Interest. If the
Group IV Member's years of age and service did not total at least sixty-five (65) as of the date of
Ordinance No.20471-10-2012
Page 56 of 92
the Group IV Member's termination, the Group IV Member's eligible dependents may choose
between the reFund of contributions, the payment of the survivor benefit at the date the Group
IV Member would have been eligible to draw the benefit, or an immediate benefit at an
actuarially reduced rate.
(e) General Provisions
(1) If a deceased Group IV Member leaves no widow, widower, designated
Beneficiary, children or dependent parents eligible to receive a benefit hereunder, the
Group IV Member's total contributions plus Regular Interest (at the Regular Interest rate
in effect on the date of any such payment) less any amount previously paid to him or her
from the Fund, shall be paid to the Group IV Member's estate.
(2) Payments to a child shall be made whether or not a widow, widower, or
designated Beneficiary survives and shall continue after the death of a widow, widower,
or designated Beneficiary but shall cease upon the earliest of such child's death,
marriage, or attainment of age eighteen (18). Payments to a dependent parent shall cease
upon such parent's death. For purposes of this division, a parent will be deemed to be
dependent if the Group IV Member provides over one half of the parent's support.
Payments to a widow, widower, or designated Beneficiary shall continue after
remarriage, but shall cease upon the death of the widow, widower, or designated
Beneficiary. Payments to a widow or widower forfeited due to remarriage, under prior
provisions of this Section will be reinstated upon written request by the widow or
widower, but no retroactive payment can be made. After payments cease, any excess of
the Group IV Member's total contributions over and above disability and/or death
benefits paid, plus Regular Interest at date of death shall be paid to the Member's estate.
(3) Except as provided in Section 2.5-37(d), death benefit coverage during service
breaks in excess of ninety (90) consecutive calendar days shall be limited to Group N
Members who are absent due to service-connected injury incurred while in Line of Duty.
(4) Benefits hereunder shall be payable on the first day of each month commencing
with the month following the month in which the Group IV Member's death occurs. The
Board shall determine all questions of dependency, and its 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 determination to the contrary, shall
be considered dependent.
Sec. 2.5-38-39: Reserved
Ordinance No. 20471-10-2012
Page 57 of 92
DIVISION 4 — PROVISIONS APPLICABLE TO GROUP I MEMBERS (GENERAL
EMPLOYEES HIRED PRIOR TO JULY 1, 2011)
Sec. 2.5-40. Applicability
This Division shall apply to Group I Members as defined by Section 2.5-1.
Sec. 2.5-41. Earnings
(a) For Credited Service earned prior to October 1, 2013, Earnings shall mean the amount
actually paid to a Group I Member by the City for services rendered to the City during the
calendar year, plus overtime, acting, assignment, holiday, longevity, educational incentive, safety
award, incentive and shift differential pay, as reported on the Group I Member's W-2 form.
"Earnings" shall also include weekly workers' compensation benefits (currently referred to as
temporary income benefits), beginning for such amounts received by Group I Members on or
after January 1, 2006, so long as required by law. Regardless of the fact that the following
payments may be shown upon a Group I Member's W-2 form, Earnings shall not include:
(1) Any non-salary allowance (such as uniform reimbursement, automobile
allowance or mileage, etc.),
(2) Lump sum 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 a Group I Member for which the City does not contribute to
the Fund under Section 2.5-4(b).
A Group I Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group I Member during the calendar year
added to Earnings reported on the Group I Member's W-2 form to arrive at total Earnings for
Fund matters. Mandatory Group I Member contributions that are picked-up by the City and
excluded from a Group I Member's W-2 form shall also be included as part of Earnings.
Notwithstanding the foregoing, Earnings in excess of two hundred thousand dollars
($200,000.00), 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
for all purposes of this definition. Notwithstanding the preceding provisions, Earnings shall not
include any amounts paid following a Group I Member's effective DROP Election.
(b) For Credited Service earned on or after October 1, 2013, Earnings shall mean the amount
actually paid to a Group I Member by the City for services rendered to the City during the
calendar year, plus acting, assignment, holiday, longevity, educational incentive, safety award,
incentive and shift differential pay, as reported on the Group I Member's W-2 form. "Earnings"
Ordinance No. 20471-10-2012
Page 58 of 92
shall also include weekly workers' compensation benefits (currently referred to as temporary
income benefits), beginning for such amounts received by Group I Members on or after January
1, 2006, so long as required by law. Earnings does not include overtime. Regardless of the
fact that the following payments may be shown upon a Group I Member's W-2 form, Earnings
shall not include:
(1) Any non-salary allowance (such as uniform reimbursement, automobile
allowance or mileage, etc.),
(2) Lump sum 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 a Group I Member for which the City does not contribute to
the Fund under Section 2.5-4(b).
A Group I Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group I Member during the calendar year
added to Earnings reported on the Group I Member's W-2 form to arrive at total Earnings for
Fund matters. Mandatory Group I Member contributions that are picked-up by the City and
excluded from a Group I Member's W-2 form shall also be included as part of Earnings.
Notwithstanding the foregoing, Earnings in excess of two hundred thousand dollars
($200,000.00), 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
for all purposes of this definition. Notwithstanding the preceding provisions, Earnings shall not
include any amounts paid following a Group I Member's effective DROP Election.
See. 2.5-42. Retirement Dates For Group I Members
(a) Normal Retirement Date. A Group I Member shall be eligible for pension benefits on or
after the Group I Member's Nonrial Retirement Date which shall be the last day of the month in
which the earliest of the following occurs:
(1) The Group I Member's years of age and years of Credited Service total eighty
(80); or
(2) The later of(1) the date on which the Group I Member reaches age sixty-five (65)
or(ii) the fifth anniversary of the date the Group I Member joined the Fund; or
(b) Vested Terminated Retirement Date. A Vested Group I Member who is voluntarily or
involuntarily separated from the service of the City shall be eligible for pension benefits on or
after such Group t Member's Vested termination retirement date which shall be the last day of
the month in which the Group I Member reaches age fifty (50), or, if earlier, the last day of the
month in which the Group I Member would have attained his or her Normal Retirement Date had
Ordinance No.20471-10-2012
Page 59 of 92
the Group I Member remained employed by the City.
Sec. 2.5-43. Compensation Base for Determining Benefits
(a) Compensation Base For Determining Group I Member Benefits For Credited Service
Earned or Purchased Prior to October 1, 2013:
(1) For Group I Members hired and Vested Prior to October 23, 2007 (not subject to
the 12%cap), pension, death benefits, disability pension and Vested termination benefits
shall be based upon the Group I Member's Compensation Base which shall mean the
average annual Earnings, as defined by Section 2.5-41(a) which were paid to the Group I
Member by the City for employment with the City during any three (3) calendar years
in which he or she had the highest annual Earnings. If a Group I Member's last day of
employment with the City is prior to January 1, 1999, "five (5)" shall be substituted for
"three (3)" in the preceding sentence.
(2) For Group I Members who were hired prior to July 1, 2011, but not Vested by
October 23, 2007 (subject to the 12% cap),pension, death benefits, disability pension and
Vested termination benefits shall be based upon the Group I Member's Compensation
Base which shall mean the average annual Earnings, as defined by Section 2.5-41(a)
which were paid to the Group I Member by the City for employment with the City during
any three (3) calendar years in which he or she had the highest annual Earnings, subject
to the following limitations:
a. The Fund shall determine the four (4) calendar years in which the Group I
Member had the highest annual Earnings. Of such four (4) years, the year in
which the Group I Member had the lowest annual Earnings shall serve as the base
year. The base year shall not be included as one (1) of the three (3) calendar years
for purposes of the Compensation Base calculation.
b. The first annual Earnings to be used in the calculation of the Group I
Member's compensation base shall be the actual annual Earnings from the
calendar year with the third highest annual Earnings of the four (4) calendar years
identified in Section 2.5-43(a)(2)a., provided that if such annual Earnings are
from a calendar year beginning on or after January 1, 2008, the amount to be used
in the calculation of the Compensation Base for the first year shall not exceed one
hundred twelve (112)percent of the annual Earnings for the base year.
C. The second annual Earnings to be used in the calculation of the Group I
Member's Compensation Base shall be the actual annual Earnings from the
calendar year with the second highest annual Earnings of the four (4) calendar
years identified in Section 2.5-43(a)(2)a., provided that if such annual Earnings
are from a calendar year beginning on or after January 1, 2008, the amount to be
used in the calculation of the Compensation Base for the second year shall not
exceed one hundred twelve (112) percent of the annual Earnings that are
attributable to the year described in Section 2.5-43(a)(2)b..
Ordinance No.20471-10-2012
Page 60 of 92
d. The ddn] annual Earnings to be used in the calculation of the Group (
Member's Compensation Base shall be the uokuu| annual Earnings from the
tu|eudur year with the highest auouu) Bucoiogs of the four (4) ouieodaz years
identified in Section 2.5'43(u)(2)u., provided that if such uouuul Earnings are
from a calendar year beginning on or after January 1, 2008, the arnount to be used
in the calculation of the Conopeuuubou Ouso for the third year obu\| not exceed
one hundred tv/c|vc (112) percent of the mnuuu1 Earnings that are attributable to
the year described in 3ccdoo 2.5'43(u)(2)c.
e. The average ofthe three (3) amounts determined io accordance with Sections
2.5'43(u)(3)u. through 2.5'43(a)(2)d. will be the average annual Earnings for
purposes of the Group l Member's Compensation Base.
(h) Compensation Base for I}ctcnoiniog Group [ Member Benefits For Credited Service
£uruod or Purchased On or After October l, 2013: For Group l Members, Credited Service
earned or purchased on or after October 1, 2013 shall be based upon average annual Earnings, as
defined by Section 2.5-4](b) v/binb were paid to the Group ( &4enubor by the City for
employment with the City during any five (5) calendar years in which the Group l Member had
the biubemi annual Earnings. The Compensation Base for Credited Service earned or
purchased onwrafter October 1, J0l3, does not include overtime.
(o) If Group l Mc,ob«c has |coo than five (5) [or if applicable, three (])] ou)ondoc youca of
omp|oyo)ovL the Group [ Member's Compensation Base obu\) be determined by the Executive
Director under uniform, non-discriminatory procedures that are consistently applied.
(d) For Compensation Base purposes, any lump sum payments of Earnings for any prior time
period, whether awarded to the Group l Member byn court, administrative body or settlement
u8Juu0000L shall hu retroactively attributed to the calendar year in vvbicb It would otherwise have
been received by the Group l Member from the City for services rendered.
(c) For purposes of computing the Compensation Base for a Group l Member who has made
ou effective DROP Election, the Group l Member's Compensation Base shall bucalculated using
the Group l Member's Earnings prior 10 the effective date of the DROP Election.
See. 2.5-44. Termination Benefits and Vesting
(u) Contribution 8eFuod /f/or to Vesting. Any Group T Member who is voluntarily or
involuntarily separated from the service nfthe City before the Group I Member is Vested xbu\l
be entitled to receive the amount of the Group lMcmbcr'm contributions plus Regular Interest (at
the Regular Interest rate in effect on the date of such payment) \caa any amount previously paid
to the Group | Mcnoberbr000 the Fund.
(h) Vested Termination Pension.
(|) f\ Vested Group [ Member who is voluntarily or involuntarily separated from the
Ordinance No.2847} 10'2012
Page 6lvf92
service of the City shall be entitled to receive a Vested Termination Pension payable: (i)
in full, pursuant to Section 2.5-42(b) or(11) in a reduced amount commencing on or after
age fifty (50). A Group I Member must file a request for the commencement of the
Vested Termination Pension by completing such forms and following such procedures as
are established by the Board. A Vested Termination Pension shall be payable monthly on
the first day of each month commencing with the month following approval of the Group
I Member's Vested Termination Pension by the Board.
(2) A Vested Termination Pension shall be an annual life pension, the amount of
which shall be the specified percentage of the Group I Member's Compensation Base
multiplied by the Group I Member's total years of Credited Service to date of such
voluntary or involuntary separation from the service of the City. For purposes of the
preceding sentence, the specified percentage of the Group I Member's Compensation
Base shall be two and seventy-Five one-hundredths (2.75) percent for all Credited
Service earned or purchased prior to October 1, 2013, and two and twenty-five one-
hundredths (2.25) percent for Credited Service earned or purchased on or after October 1,
2013, unless the Group I Member has attained his or her Normal Retirement Date or
Vested Retirement Date prior to the date the Group I Member's pension payments begin,
in which case the specified percentage shall be three (3) percent for all Credited Service
earned or purchased prior to October 1, 2013 and shall be two and fifty one-hundredth
(2.5) percent for all Credited Service earned or purchased on or after October 1, 2013. A
Vested Termination Pension shall be calculated using the specified percentage and
Compensation Base in effect at the time the Group I Member earned or purchased the
Credited Service for all I Credited Service earned or purchased after October 1 2013.
(3) In addition to the reduced multiplier describe in Section 2.5-44(b)(2), if a Group I
Member has not attained his or her Normal Retirement Date or Vested Retirement Date
prior to the date the Group I Member's Vested Termination Pension payments begins, the
amount of reduction for commencement of a pension prior to the Group I Member's
Normal Retirement or Vested Retirement Date shall be five-twelfths (5/12) percent for
each month by which commencement of the pension antedates the Group I Member's
Normal Retirement Date had the Group I Member remained employed by the City.
Sec. 2.5-45. Retirement Pension (Benefit)
(a) Pensions Commencing Prior to October 1, 2013
(1) A Vested Group I Member who retires on or after the Group I Member's Normal
Retirement Date and who requests commencement of the Group I Member's pension
prior to October 1, 2013, or a Group I Member who terminates employment prior to
October 1, 2013, and prior to the Group I Member's Normal Retirement Date and who
waits until such Vested Retirement Date, to apply for a pension, shall receive an annual
life pension, the amount of which shall be three(3.0) percent of the Group I Member's
applicable Compensation Base as defined by Section 2.5-43(a)(1) or (a)(2), whichever is
applicable, multiplied by the Group I Member's total years of Credited Service, payable
monthly on the first day of each month commencing with the month following the
Ordinance No. 20471-10-2012
Page 62 of 92
Board's approval of the Group 1 8Jco�`o,'s pension. This retirement pension mhuj\ be
dcfinudoa the "Group KMcmmbcr`mStandard Pension Benefit A."
(2) z4/Aeroodve Pension 8nxqflc In lieu of the Group l Member Standard Pension
Benefit A, a Group I Member under this subsection may irrevocably elect with his or her
spouse's consent (where applicable), in advance nf his nr her retirement and pursuant to
regulations and ccquirerucoia the Board in its discretion may adopt, to receive an
"Alternative Pension Benefit" *biok shall be /\obuudu))y Equivalent in the Group I
Member's Standard Pension Benefit /\ and which shall bm payable io two (2) parts: (i)
one (1) part in olunnp sum amount not \emm than five (5) percent nor greater than twenty-
five (25) ponocot of the &ctnudul 2guivu|cut of the Group [ Mocuhnr'o Pcc-()otohcr }.
3013 Standard Ycomioo Benefit A, which lump xunu shall bc payable on the date
benefits oornroe000 under (ii); and (ii) the remainder in an annual life pension,
payable nnunih|y on the first day of each nuouib cnnnnueuciog with the nuoutb {b|\ovving
the Board's approval of the Group I Member's Alternative Pension Benefit.
(3) Lhni&xt/onoxAberoudvcpeuo/on8enai1Notp/dhwtundioguuyotberproviaionin
this Division to the contrary, the option to elect aoAlternative Pension Benefit mbu|) not
he available for any disability pension under Section 2.5'46, death benefit under Section
2.5'47, or Vested T000iouiioo Pension under Section 2.5'44, nor sbu|1 it he available to
any Group l Member who is receiving pension benefits as of the eft&dve date of the
/\|teooudve Pension Benefit provisions ofthis Section, nor shall it be available upon re-
retirement to any retired Group l Member who becomes re-employed hy the City.
(b) Pensions Commencing Ooor After October |, 2O|3
(I) Pensions Commencing upon Normal Retirement l)u&e /or Group/Members Hired
and Vested prior to July /. 2011' Whose Pension Commences On or After October /.
2013 (vo/ sx6/e/Y to the Earnings cap): /\ \/uatnd Group 1 Member hired and Vested
prior tn October 23, 2007, who redn:m on or ohcr the Group ] Member's Non-nu)
Retirement Date and requests 000zrneuuenneui of the Group I Member's pension on or
after October l, 2013, or a Group I Member who (coniuo1em ennyloyineot on or after
October l, 2013 and prior to the Group I Member's Normal Retirement Date and who
waits until such Vested Retirement Date io apply for upension, mbu|l receive an unuuu\
life pension, the amount of which obo1l be calculated by adding the following:
u. Three (3.0) per000< of the Group I Member's Compensation E\am* as defined
by Section 2.5-43(u)(1) multiplied by the Group ( Member's years of Credited
Service from date of hire until September 30, 20)3; and
b. Two and fifty one-hundredths (2.5) percent of the Group I Menohe,`n
Compensation Base as defined by 3oodoo 2.5-43(h) nnu|kp|icd by the Group 1
Member's years of Credited Service from October |, 2013 nod| date of
termination.
Ordinance No. 2047\ 10'2012
Page 63 of 92
(2) Pensions Commencing Upon Normal Retirement I)atefor Group {Members Who
Were Hired Prior k,July /' Z01/ and Were Not Vested 6v October 2} Z007and Whose
Pension Commences On Or After October /' 2013 (subject to the Earnings con). A
Group l Member hired prior to July 1, 20l\, and not Vested hy October 23, 2O07, who
retires on or after the Group [ Member's Normal llehreozout Date and requests
uonzmoucocomnt of the Group I Mon)boc'o pension, and whose pension uocnrnouuus on or
after October l` 2013, or who tcnoiuutom employment ouoc after October |, 2013, but
prior to his nr her Normal Bedrenocui Du(c and who vvuiim uod| such \/eoiod Retirement
Date to apply for o pension shall receive an u0000l life pension, the amount of which
shall he calculated byadding the following:
u. Three (3.0) percent of the Group l Member's Compensation I}nxe as defined
by Section 2.5'43(u)(2) noohip\imd by the Group | Member's years of Credited
Service from date of hire until September 3O, 20]3; and
b. Two and fifty one-hundredths (2.5) percent of the Group I Msnnboc"u
Compensation Base um defined bySection 2.5-43(h) nuu\dp|icd by the Group l
Mmrohur`s years of Credited Service from October ), 2013 ond| date of
termination.
(3) The pension should he puvah|o nouutb\y on the first day of each nuwutb
oornozeuuiog with the n000tb following the Board's approval of the Group l Member's
pension. This retirement pension mbo)| be defined as the "Group D Member Standard
Pension Benefit B."
(c) Alternative Pension Benefit, In lieu of the Group I Member Standard Pension Benefit B, a
Group l Member may irrevocably elect with his or her spouse's consent (where applicable), in
advance of his or her n:ticmounut and pursuant to regV|uhoux and requirements the Board in its
discretion may adopt, to receive no "Alternative Pension Benefit" which uhuU be /\cruudu|\y
Equivalent to the Group lMeubcr'a S\uudund Pension BeoofitB and which shall he payable in
two (2) parts: (i) one (1) part in a lump sum amount not less than five (5) percent nor greater than
twenty-five (25) percent of the Actuarial Equivalent of the Group I Member's Standard Pension
Benefit, which lump sum shall be payable on the date benefits commence under (ii); and (ii) the
remainder iouo annual life pension, payable monthly oothe first day nf each month commencing
with the month following the Board's approval of the Group I Member's pension.
(d) L/m/uz//ux on Alternative Pension Benefit. Notwithstanding any other provision in this
Division to the contrary, the option to elect un Alternative Pension Benefit shall not be available
for any disability benefit under Souhoo 2.5-46` death benefit under Section 2.5-47, or000nui
Vested 7`sonioutiou Pension under Section 2.5'44, nor shall it be available to any retired
employee who is receiving pension heuofi{ohereunder asof the effective date ot the Alternative
Pension Benefit provisions of this Division, nor shall itbe available upon ce'retirerueotto any
retired Group I Member who becomes re-employed hythe City.
0,dbnauce No. 2047l-l0-2O|2
Page O4nf92
See. 2.5-46. Disability Pension
(a) See Section 2.5-7 for General Provisions related to disability pension.
(b) Disability in Line of'Duty. If a Group I Member, whether or not Vested, becomes
disabled as defined in Section 2.5-7, while in Line of Duty, the Group I Member shall receive an
annual life pension, the amount of which shall be the specified percentage of the Group I
Member's Compensation Base multiplied by the Group I Member's total years of Credited
Service which would have accrued if the Group I Member had worked to the Group I Member's
Normal Retirement Date, but not less than two hundred fifty dollars ($250.00) per month. For
purposes of the preceding sentence, the specified percentage of the Group I Member's
Compensation Base shall be two and three quarters (2.75) percent, unless the Group I Member is
already eligible to retire on or after the Group I Member's Normal Retirement Date, in which
case the specified percentage shall be three(3.0) percent.
(c) Disability Not in Line of Duty for Vested Group I Members nose Disability Pension
Commences Prior to October 1, 2013: If a Vested Group I Member becomes disabled as defined
in Section 2.5-7, while not in Line of Duty, and the Group f Member's pension commences prior
to October 1, 2013, the Group I Member shall receive an annual life pension, the amount of
which shall be the specified percentage of the Group I Member's Compensation Base, multiplied
by the Group I Member's total years of Credited Service to date of actual retirement. For
purposes of the proceeding sentence, the specified percentage of the Group I Member's
Compensation Base shall be two and seventy-five one-hundredths (2.75) percent, unless the
Group t Member is already eligible to retire on or after the Group I Member's Normal
Retirement Date, in which case the specified percentage shall be three (3.0) percent.
(d) Disability Not in Line of Duty for Vested Group I Members Whose Disability Pension
Commences On or After October 1, 2013: If a Vested Group I Member becomes disabled as
defined in Section 2.5-7, while not in Line of Duty, and the Group I Member's pension
commences on or after October 1, 2013, the Group I Member shall receive an annual life
pension, the amount of which shall be determined by adding the following:
(1) a specified percentage of the Group I Member 's Compensation Base as defined
by Section 2.5-43(a)(1) if hired and Vested prior to October 23, 2007, or a specified
percentage of the Group I Member's Compensation Base as defined by Section 2.5-
43(a)(2) if hired prior to July 1, 2011 and not Vested by October 23, 2007, multiplied
by the Group I Member's years ofCredited Service from date of hire until September 30,
2013. For purposes of the preceding sentence, the specified percentage of the Group I
Member's Compensation Base for Credited Service pursuant to this subsection shall
be two and three quarters (2.75) percent; and
(2) a specified percentage of the Group I Member's Compensation Base as defined by
Section 2.5-43(b) multiplied by the Group I Member's years of Credited Service from
January 1, 2013, until the date of disability. For purposes of the preceding sentence, the
specified percentage of the Group I Member's Compensation Base for Credited Service
pursuant to this subsection shall be two and one quarter(2.25) percent.
Ordinance No, 20471-10-2012
Page 65 of 92
(e). Disability Not in Line of0utyfor Non-Vested Group IMem6ers. l[u Group [ Member
becomes disabled vvbiln not in ljot of Duty hofbn: the Group I Member is \/nntnd, dbco such
Group I Member shall be entitled to receive acontribution reFundin accordance with Section
2.5'44(u).
See. 2.5-47. Death V8mwufIt
(u) NyIz//o in Line of Duty.
(l) IfaGroup l Member dies before retirement while in Line ofDuty and as urnuu|t
of the performance ufthat Group l Member's duties, the surviving widow or widower
obu|| be entitled to receive a monthly pension, the amount ofwhich abu|| be seventy-five
(75) pe-rcent of the Group I Member's standard pension, based on the number of years of
Credited Service that n/uu|d have accrued had the Group L Member lived to the Group l
Member's Normal Rcdrcoucnt Date, but not |eau than two hundred fifty dollars ($250.00).
(2) Each dependent child under eighteen (l8) years uf age of such Group I Member
shall be entitled to receive a monthly pension, the amount of which shall be one hundred
dollars /$100.00>' provided however, that if no surviving widow or widower xbu|| be
entitled to receive u monthly pension pursuant to the teoox of this Division, all such
dependent children abol| uburc equally o monthly pension, the amount ofwhich shall be
seventy-five (75) percent of the Group I Member's pension, based on the number of years
of Credited Service that would have accrued had the Group l Member lived to the Group
} B&ezuhor'm Nomou| Bc{ireruout Date, but not |cma than two hundred fifty dollars
/$250,00\.
(3) If a Group I Mernber dies while in Line of Duty and leaves no widow or widower
or children eligible to receive a benefit hereunder, but is survived by a dependent parent
or parents, such dependent parent(s) shall be sohded to receive u ruVutb)y pension, the
amount of which shall be seventy-five (75) pmr0001 of the Group T Member's accrued
pension projected to the Group [ Member's Normal Retirement I)u<e` but not less than
two hundred fifty dollars ($250.00).
(4) The survivor's monthly pension benefit for o Group I Member who dies in Line of
Duty shall be calculated using o multiplier of three(2.0) peroouL
(h) While Not/n Line o/Duty.
/l\ Vested Group yMembur no Dies Not/n Line o/I)utyand Wbnxo Survivor's
Monthly Pension Begins Prior to October /. JV/]:
u. If a Vested Group I Member dies before retirement, while not in Line of Duty,
and the survivor monthly pension benefits begins prior tm (}ntohnr l, 2013, then
the surviving widow or widower obu]| be eudt|cd to receive a r000tb|y pension,
the amount of which shall be seventy-five (75) percent of the Group I Member's
Ordinance No. 2847] 10-2012
Page 66of92
accrued pension but not less than one hundred fifty dollars ($150.00).
b. Each dependent child under eighteen (18) years of age of such Vested Group
I Member shall be entitled to receive a monthly pension, the amount of which
shall be one hundred dollars ($100.00); provided, however, that if no surviving
widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this subsection, all such dependent children shall share equally a monthly
pension, the amount of which shall be seventy-five (75) percent of the Group I
Member's accrued pension, but not less than one hundred fifty dollars ($150.00).
c. If a Vested Group I Member dies while not in Line of Duty and leaves no
widow or widower or children eligible to receive a benefit under this subsection,
but is survived by a dependent parent or parents, such dependent parents of the
surviving dependent parent shall be entitled to receive a monthly pension, the
amount of which shall be seventy-five (75) percent of the Group I Member's
accrued pension, projected to the Group I Member's Normal Retirement Date, but
not less than one hundred fifty dollars ($150.00).
d. For purposes of Section 2.5-47(b)(1), a Group I Member's accrued pension
shall be calculated using a multiplier of two and seventy-five one-hundredths
(2.75) percent, unless the Group I Member had reached the Group I Member's
Normal Retirement Date prior to death, in which event the multiplier shall be
three(3.0) percent.
(2) Vested Group I Member Who Dies Not In Line of Duty and Whose Survivor's
Monthly Pension Begins On or After October 1, 2013:
a. If a Vested Group I Member dies before retirement, while not in Line of Duty,
and the survivor pension begins on or after October 1, 2013, then the surviving
widow or widower shall be entitled to receive a monthly pension, the amount of
which shall be seventy-five (75) percent of the Group I Member's accrued pension
but not less than one hundred fifty dollars ($150.00). The accrued pension shall
be calculated by adding the following:
1. A specified percentage of the Group I Member's Compensation Base as
defined by Section 2.5-43(a)(1) if hired and Vested prior to October 23, 2007,
or a specified percentage of the Group I Member's Compensation Base as
defined by Section 2.5-43(a)(2) if hired prior to July 1, 2011 and not Vested
by October 23, 2007, multiplied by the Group I Member's years of Credited
Service from date of hire until September 30, 2013. For purposes of the
preceding sentence, the specified percentage of the Group I Member's
Compensation Base for Credited Service for this time period shall be two and
three quarters(2.75) percent; and
2. a specified percentage of the Group I Member's Compensation Base as
defined by Section 2.5-43(b), multiplied by the Group I Member's years of
Ordinance No. 20471-10-2012
Page 67 of 92
Credited Service from October 1, 2013, until the date of death. For purposes
of the preceding sentence, the specified percentage of the Group I Member's
Compensation Base for Credited Service for this time period shall be two and
one quarter(2.25) percent.
b. Each dependent child under eighteen (18) years of age of such Vested Group I
Member shall be entitled to receive a monthly pension, the amount of which shall
be one hundred dollars ($100.00), provided, however, that if no surviving widow
or widower shall be entitled to receive a monthly pension pursuant to the terms of
this Section, all such dependent children shall share equally a monthly pension,
the amount of which shall be seventy-five (75) percent of the Group I Member's
accrued pension, but not less than one hundred fifty dollars (S 150.00).
c. If a Group I Member dies while not in Line of Duty and leaves no widow or
widower or children eligible to receive a benefit hereunder, but is survived by a
dependent parent or parents, such dependent parent(s) shall be entitled to receive
a monthly pension, the amount of which shall be seventy-five (75) percent of the
Group I Member's accrued pension, but not less than one hundred fifty dollars
(8150.00).
(3) Group I Member Not Vested at Time of Death. If a Group I Member was not
Vested on the date of death, the surviving widow or widower shall be entitled to the
return of all contributions which the Group I Member paid into the Fund during the
Group I Member's life plus Regular Interest thereon (at the Regular Interest rate in effect
on the date of any payment to the widow or widower). If there is not a surviving widow
or widower, the contributions shall be paid to the estate of the Group I Member.
(c) After Retirement.
(1) Upon the death of a Group I Member, the surviving widow or widower shall be
entitled to receive a monthly pension, the amount of which shall be seventy-five (75)
percent of the pension being paid to the Group I Member, provided that the Group I
Member and surviving widow or widower had been married for at least one (1) year
immediately prior to the Group I Member's retirement. Notwithstanding the preceding
sentence, a surviving widow or widower who was not married to the deceased Group I
Member for at least one (1) year immediately prior to the Group I Member's retirement
shall be eligible to receive a monthly pension if the Group I Member has elected to
receive a reduced monthly pension, on a form and subject to procedures developed by the
Executive Director, within six (6) months after the Group I Member's completion of two
(2) years of marriage to the Group I Member's spouse. The reduced monthly pension
shall be actuarially determined in a manner that is actuarially neutral to the Fund, based
on Actuarial "fables in effect on the date of the Group I Member's election to receive a
reduced monthly pension. If such an election has been made, the surviving widow or
widower shall receive a monthly pension for life equal to seventy-five (75) percent of the
Group I Member's reduced monthly pension.
Ordinance No. 20471-10-2012
Page 68 of 92
(2) Upon the death of a Group I Member who was not married at retirement, a
Beneficiary designated by a Group I Member at retirement may be eligible to receive a
monthly pension if the Group I Member has elected to receive a reduced monthly
pension, on a form and subject to procedures developed by the Executive Director. The
Group I Member's reduced monthly pension shall be actuarially determined in a manner
that is actuarially neutral to the Fund, based on Actuarial Tables in effect on the date of
the Group I Member's election to receive a reduced monthly pension. If such an election
has been made, the Group I Member's designated Beneficiary shall receive a monthly
pension for life equal to one hundred (100) percent, seventy-five (75) percent, fifty (50)
percent, or twenty-five (25) percent of the Group I Member's reduced monthly pension.
If a Group I Member who was not married at retirement and who selected a designated
Beneficiary pursuant to this subsection later marries only the designated Beneficiary
would be entitled to receive a lifetime monthly pension.
(3) Each dependent child under eighteen (18) years of age of such deceased Group I
Member shall be entitled to receive a monthly pension, the amount of which shall be one
hundred dollars ($100.00) but shall cease upon the earliest of such child's death, marriage
or attainment of age eighteen (18); provided, however, that if no surviving widow,
widower, or designated Beneficiary shall be entitled to a monthly pension pursuant to the
terms of this Division, all such dependent children shall share equally a monthly pension,
the amount of which shall be seventy-five (75) percent of the pension being paid to the
Group I Member at the time of his or her-death.
(d) Death of Vested Terminated Group I k ember Prior to Pension Commencing. If a
terminated Group I Member entitled to a pension under the provisions of Section 2.5-44 dies
before the Group I Member's pension commcnees, the Group I Member's designated Beneficiary,
or if none, the Group I Member's estate shall receive an amount equal to the Group I Member's
total contributions to the Fund, plus Regular Interest (at the Regular Interest rate in effect on the
date of such payment). If the Vested Group I Member's years of age and years of Credited
Service total at least sixty-five (65) as of the date of the Group I Member's termination, the
Group I Member's eligible dependents shall receive the benefit specified under Section 2.5-
47(b), based on the pension to which the Group I Member would have been entitled as of the
date of the Group I Member's death, in lieu of the payment of contributions plus Regular
Interest. If the Group I Member's years of age and Credited Service did not total at least sixty-
five (65) as of the date of the Group I Member's termination, the Group I Member's eligible
dependents may choose between the reFund of contributions, the payment of the survivor benefit
at the date the Group I Member would have been eligible to draw the benefit, or an immediate
benefit at an actuarially reduced rate.
Sec. 2.5-48-49: Reserved
Ordinance No, 20471-10-2012
Page 69 of 92
DIVISION 5. PROVISIONS FOR GROUP XK MEMBERS (GENERAL EMPLOYEES
HIRED ON OR AFTER JULY l, 280)
See. Z.5-5O, Applicability
This Division applies to Group D Members ux defined by Section Z.5'l.
Sec, 2.5-51. Earnings
(u) For Credited Service earned prior to {)o(obcr \, 2013` 6uruiogu shall nzcuo the un)ouoi
actually paid to o Group 11 Member by the City for mun/iocu rendered to the City during the
calendar year, plus overtime, acting, assigni-nent, holiday, longevity, educational incentive, safety
uv/uud, incentive and shift differential pay, as reported on the Group II Member's VV-2 form.
^^Euroiogu" shall also include weekly workers' conupcoxadnn bcucOto (currently referred to as
temporary income benefits), beginning for such amounts received hy Group II Mernhecn on or
after January l, 2006, so long as required by 1uvv. l{ogund)com of the fact that the following
payments may be shown upon a Group 11 Member's W-2 form, Earnings shall not include:
(\) Any uuo-xa|ury a||ovvuooe (such as uniform reimbursement, automobile
uUovvuuce or mileage, c(c);
(2) Lump sum payments received ,d time nf termination for unused vacation leave, sick
leave and personal leave;
(3) Any award by u court, administrative body, or metdcnocot ugreccucut in excess of
Earnings;
(4) Any upayment received from the City's Wellness Program �
(5) Any amount received from the City's vacation sell-back program; and
(0) Any amount paid to u (3roup l| Member for which the City does not contribute to the
Fund under Section 2.5 3.
A Group 11 Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group 11 Member during the calendar year
added 10 Earnings reported on the Group I{ Member's W'2 tbzm to arrive at total Earnings [br
Fund matters. Mandatory Group 11 Member contributions that are picked-up by the City and
excluded from u Member's W'2 fbmo nbu|| also be included as part of Euonings.
Notwithstanding the foregoing, Eunoioga in excess of two hundred thousand dollars
($200,000.00), if any (or such other um0001m as may be determined by taking into account the
cost-of-living odiumtrocn1 provided under Section 401(u)(}7) of the Code) mbul| he disregarded
for all purposes of this definition. Notwithstanding the preceding provisions, 2ucniogm mbaK not
include any amounts paid following a Group 11 Member's effective DROP Election.
Ordinance No. 20471-i0-2U\2
Page 7Onfy2
(b) For Credited Service earned onmafter October l, 20l3, Earnings shall mean the amount
actually paid to n Group TI Member for services rendered to the City during the calendar yeor,
plus acting, assignment, holiday, longevity, educational incentive, safety award, incentive and
shift differential pay, as reported on the Group D Menohcr`a YV'Z tboo. "Euroingo" xbuU also
include weekly workers' compensation bcocfiLs (nuowody referred to as temporary income
benefits), beginning for such amounts received by Group D Members on or after January |,
2006, uo long um required hylaw. 0urmkogm dmmm not include overtime. Regardless o[the fact
that the following payments may ho ahon/o upon [}coup ll Member's VV-2 form, Buroiogm shall
not include:
(|) Any non-salary allowance (aoob as uniform reimbursement, automobile
allowance or mileage, etu];
(2) Lump sum payments received a1 time of tcrn)ioubou for unused vacation leave,
sick leave and personal leave;
(3) Any uvvuuj by unoud, administrative body, or settlement uQ7oonucut in excess of
Earnings;
(4) Any payment received from the City's Wellness Program;
(5) Any amount received from the City's Vacation sell-back program; and
(0) Any amount paid to u ()roup [I Member for which the City does not contribute to
the Fund under Section 2.5-3.
A Group 11 Member participating in a City-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that Group 11 Member during the calendar year
added to Earnings reported on the Group l{ Member's W-2 Dnoo to arrive at total Bacuiogo for
Fund matters. Mandatory Group II Member contributions that are picked-up hy the City and
excluded from a Member's \V-Z 6uon obul1 also be included as part of Earnings.
Notwithstanding the foregoing, Earnings in excess of two hundred (bouunod do\\uca
($200`000.00), if any (or such other amounts as may be determined by taking into account the
ooa(-of-|iviog adjustment provided Linder Section 4Ol(o)(l7) of the Code) ubx|\ be disregarded
for all puznnmou of this definition. Notwithstanding the preceding provisions, Earnings shall not
include any amounts paid following a Group 11 Member's effective DROP Election.
See. 2.5-52. Retirement Dates
(u) /Vo//mu/ Retirement /lu/e. A Group lI Member hired no or after July l, 2011' shall be
eligible for pension benefits on or after the Group ll Munubor'mN000a| Retirement Date vrbiob
shall be the last day of the month in which the Group 11 Member reaches age fifty-five (55), and
io which the earliest of the following occurs:
(i) The Group TT Member's years of age (rnioinourn age of fifty-five (55)) and years of
Credited Service total eighty (80); or
0/diuuooe No.2047l 10'2012
Page 71 of 92
(ii) The later of(1) the date on which the Group II Member reaches age sixty-five (65) or
(ii) the fifth anniversary of the date the Group II Member joined the Fund.
(b) Vested Retirement Date, A Vested Group 11 Member hired on or after July 1, 2011, who
is voluntarily or involuntarily separated from the service of the City prior to their Normal
Retirement Date shall be eligible for pension benefits on or after such Group 11 Member's Vested
termination date which shall be the last day of the month in which the Group II Member reaches
age fifty-five (55), and in which the Group I1 Member's years of age [minimum age of fifty-five
(55)] and years of service total eighty(80).
See. 2.5-53. Compensation Base for Determining Benefits for Group 11 Members
(a) For a Group 11 Member, pension, death, disability and Vested termination benefits shall
be based upon the Group II Member's Compensation Base which shall mean the average annual
Earnings, excluding overtime, which were paid to the Group 11 Member by the City for
employment with the City during any five (5) calendar years in which he or she had the highest
annual Earnings (excluding overtime).
(b) If a Group II Member has less than five (5) calendar years of employment, the Group 11
Member's Compensation Base shall be determined by the Executive Director under uniform,
non-discriminatory procedures that are consistently applied.
(c) For Compensation Base purposes, any lump sum payments of Earnings for any prior time
period, whether awarded to the Group II Member by a court, administrative body or settlement
agreement, shall be retroactively attributed to the calendar year in which it would otherwise have
been received by the Group It Member from the City for services rendered. For purposes of
computing the Compensation Base for a Group II Member who has made an effective DROP
Election, the Group II Member's Compensation Base shall be calculated using the Group 11
Member's Earnings (excluding overtime) prior to the effective date of the DROP Election.
(d) For the time period from July 1, 2011, through September 30, 2013, both City
contributions and Group II Member contributions "picked up" by the City on overtime will be
placed in a Cash Balance Account for each Group 11 Member to be administered by the Fund. A
Group 11 Member will be eligible to receive the proceeds in the Cash Balance Account plus
Regular Interest (at the Regular Interest rate in effect on the date of such payment) upon
Termination of Employment from the City. However, a Group 11 Member who retires from the
City under a normal retirement, special retirement, disability retirement, or early retirement is
entitled to receive a dollar-for-dollar match of the proceeds in the Cash Balance Account plus a
dollar-for-dollar match of the Regular Interest (at the Regular Interest rate in effect on the date of
such payment) on the proceeds in the Cash Balance Account upon retirement. A Group II
Member who retires from the City under a Vested termination retirement is entitled to receive a
dollar-for-dollar match of the proceeds in the Group II Member's Cash Balance Account, and a
dollar-for-dollar match of the Regular Interest on the cash balance up until the date of the Group
II Member's `Termination of Employment with the City. However, the Group II Member is not
entitled to any interest on the Cash Balance Account after the date of the Group 11 Member's
Ordinance No. 20471-10-2012
Page 72 of 92
Termination of Employment with the City. An eligible surviving widow or widower, dependent
child or children, or dependent parent or parents of a Group 11 Member who dies prior to
retirement would also be entitled to receive a dollar-for-dollar match of the proceeds in the Cash
Balance Account plus a dollar-for-dollar match of the Regular Interest (at the Regular Interest
rate in effect on the date of such payment) on the proceeds in the Cash Balance Account.
(e) Overtime is not included in the definition of Earnings for Credited Service earned or
purchased on or after October 1, 2013.
Sec. 2.5-54. Termination Benefits and Vesting
(a) Contribution Refund Prior to Vesting. Any Group II Member hired on or after July 1,
2011, who is voluntarily or involuntarily separated from the service of the City before the Group
11 Member is Vested shall be entitled to receive the amount of the Group II Member's
contributions, plus Regular Interest (at the Regular Interest rate in effect on the date of such
payment) including any proceeds in the Group 11 Member's Cash Balance Account, less any
amount previously paid to the Group 11 Member from the Fund.
(b) Vested Termination Pension.
(1) A Vested Group 11 Member, who is voluntarily or involuntarily separated from
the service of the City shall be entitled to receive a Vested Termination Pension payable:
(i) in full pursuant to Section 2.5-52(b) or(ii) in a reduced amount commencing on or
after age fifty-five (55). A Group II Member must file a request for the commencement of
the Vested Termination Pension by completing such forms and following such
procedures as are established by the Board. A Vested Termination Pension shall be
payable monthly on the first day of each month commencing with the month following
approval of the Group II Member's Vested Termination Pension by the Board.
(2) A Vested Termination Pension shall be an annual life pension, the amount of
which shall be the specified percentage of the Group 11 Member's Compensation Base
multiplied by the Group II Member's total years of Credited Service to date of such
voluntary or involuntary separation from the service of the City. For purposes of the
preceding sentence, the specified percentage of the Group 11 Member's Compensation
Base shall be two and twenty-five one hundredths (2.25) percent, unless the Group II
Member has attained his or her Normal Retirement Date prior to the date the Group 11
Member's pension payments begin, in which case the specified percentage shall be two
and fifty one-hundredths (2.50) percent. A Vested Termination Pension shall be
calculated using the "multiplier" ("specified percentage") in effect at the time the
Credited Service is earned or purchased.
(3) In addition to the reduced multiplier described in Section 2.5-54(b)(2), the amount
of reduction for early commencement of a Vested Termination Pension prior to the
Group II Member's Normal Retirement Date shall be five-twelfths (5/12)percent for
each month by which commencement of the pension antedates the Group 11 Member's
Normal Retirement Date had the Group II Member remained employed by the City.
Ordinance No.20471-10-2012
Page 73 of 92
(c) Contribution ReFund After Vesting in Lieu of Nested Termination Pension. Any Vested
Group II Member who is voluntarily or involuntarily separated from the service of the City may
elect to receive a reFund of the Group II Member's contributions, plus Regular Interest (at the
Regular Interest rate in effect on the date of such payment) including any proceeds in the Group
II Member's Cash Balance Account less any amount previously paid to the Group II Member
from the Fund, either at the date of such separation or at any time thereafter prior to
commencement of Retirement Benefit, but by so doing, the Group 11 Member shall forfeit all
rights under the Fund and thereafter be entitled to no further benefits hereunder.
Sec.2.5-55. Retirement Pension (Benefit)
(a) Pensions Commencing upon Normal Retirement Date. A Vested Group II Member who
retires on or after the Group II Member's Normal Retirement Date and requests commencement
of the Group II Member's pension, or a Group II Member who terminates employment prior to
the Group II Member's Normal Retirement Date and who waits until such Vested retirement date
to apply for a pension, shall receive an annual life pension, the amount of which shall be two and
fifty one-hundredths (2.50) percent of the Group II Member's Compensation Base multiplied by
the Group II Member's total years of Credited Service, payable monthly on the first day of each
month commencing with the month following the Board's approval of the Group II Member's
Retirement Benefit. This Retirement Benefit shall be called the "Group II Member Standard
Pension Benefit."
(b) Alternative Pension Benefit. In lieu of the Group II Member Standard Pension Benefit, a
Group II Member may irrevocably elect with his or her spouse's consent (where applicable), in
advance of his or her retirement and pursuant to regulations and requirements the Board in its
discretion may adopt, to receive an "Alternative Pension Benefit" which shall be Actuarially
Equivalent to the Group II Member's Standard Pension Benefit and which shall be payable in
two (2) parts: (i) one ('1) part in a lump sum amount not less than five (5) percent nor greater than
twenty-five (25) percent of the Actuarial Equivalent of the Group II Member's Standard Pension
Benefit, which lump sum shall be payable on the date benefits commence tinder (ii); and (ii) the
remainder in an annual life pension, payable monthly on the first day of each month commencing
with the month following the Board's approval of the Group II Member's pension.
(c) Limitation on Alternative Pension Benefit. Notwithstanding any other provision in this
Division to the contrary, the option to elect an Alternative Pension Benefit shall not be available
for any disability benefit under Section 2.5-56, death benefit under Section 2.5-57, or normal
Vested Termination Pension under Section 2.5-54, nor shall it be available to any retired
employee who is receiving pension benefits hereunder as of the effective date of the Alternative
Pension Benefit provisions of this Division, nor shall it be available upon re-retirement to any
retired employee who becomes re-employed by the City.
Ordinance No.20471-10-2012
Page 74 of 92
See. 2.5-56. Disability Pension
(a) See Section 2,5-7, for General Provisions related to disability pension
(b) Disability in Line of Duty. If a Group 11 Member hired on or after July 1, 2011, whether
or not Vested, becomes disabled as above defined while in Line of Duty, the Group 11 Member
shall receive an annual life pension, the amount of which shall be the specified percentage of the
Group 11 Member's Compensation Base multiplied by the Group II Member's total years of
Credited Service which would have accrued if the Group 11 Member had worked to the Group It
Member's Normal Retirement Date, but not less than two hundred fifty dollars ($250.00) per
month. For purposes of the preceding sentence, the specified percentage of the Group It
Member's Compensation Base shall be two and twenty-five one hundredths (2.25) percent,
unless the Group 11 Member is already eligible to retire on or after the Group 11 Member's
Normal Retirement Date, in which case the specified percentage shall be two and fifty one-
hundredths (2.50) percent.
(c) Disability Not in Line oj'Duty far Vested Group II Members. If a Vested Group 11
Member as defined by Section 2.5-7 becomes disabled as above defined while not in Line of
Duty, the Group 11 Member shall receive an annual life pension, the amount of which shall be the
if multiplied specified percentage of the Group it Member's Compensation Base mult plied by the Group 11
Member's total years of Credited Service to date of actual retirement. For purposes of the
preceding sentence, the specified percentage of the Group 11 Member's Compensation Base shall
be two and twenty-five one-hundredths (2.25) percent, unless the Group 11 Member is already
eligible to retire on or after the Group It Member's Normal Retirement Date, in which case the
specified percentage shall be two and fifty one-hundredths (2.50)percent.
(d) Disability Not in Line of Duty far Non-Vested Group 11 Members. If a Group 11 Member
becomes disabled while not in Line of Duty before the Group 11 Member is Vested, then such
Group 11 Member shall be entitled to receive a contribution reFund in accordance with Section
2.5-54(a).
See. 2.5-57. Death Benefits
(a) In Line of Duty
(1) If a Group 11 Member dies before retirement while in Line of Duty and as a result
of the performance of that Group 11 Member's duties, the surviving widow or widower
shall be entitled to receive a monthly pension, the amount of which shall be seventy-five
(75) percent of the Group 11 Member's pension, based on the number of years of Credited
Service that would have accrued had the Group 11 Member lived to the Group 11
Member's Normal Retirement Date, but not less than two hundred fifty dollars ($250.00).
The surviving widow or widower shall also be entitled to the proceeds in the Group 11
Member's Cash Balance Account and a dollar-for-dollar match of the proceeds in the
Group 11 Member's Cash Balance Account plus a dollar-for-dollar match of the Regular
Interest (at the Regular Interest rate in effect on the date of such payment) on the
proceeds in the Cash Balance Account, if applicable.
Ordinance No. 20471-10-2012
Page 75 of 92
CD Each dependent child of such Group D Member under age eighteen (|O) shall be
entitled to rccc ^c a monthly pension, the uoonun{ of which oboJ\ be one hundred dollars
lO0.00)` provided however, that ifuo surviving widow oc widower mbu)1 be eob(}ud
to receive u monthly pension pursuant to thut000a of this Division, all such dependent
children shall abaco equally a monthly pension, the amount ofwhich xbu)| be seventy-five
(75) percent ofthe Group II Member's pension, based on the number ofyears of Credited
Service that would have accrued had the Group II Member lived to the Group II
Member's Normal Retirement Date, but not less than two hundred fifty dollars ($250.00),
plus the proceeds in the Group II Member's Cuob Balance Account, and u dollar-for-
dollar nootoh of the proceeds in the Group ll 88urohor'a Cash Balance Account plus u
dollar-for-dollar match of the Regular Interest (at the Regular Interest rate in effect on the
date of such payment) on the proceeds in the Cash Balance Account, if applicable.
(3) If a Group 11 Mernber dies while in Line of Duty and leaves no widow or widower
oc children eligible 10 receive u benefit hereunder, but is survived byu dcpcodoo1 parent
or parents, such dependent pu,noto or the surviving dependent parent shall be entitled to
receive a monthly pension, the amount of which shall be seventy-five (75) percent of the
Group lI Member's accrued pension projected to the Group ll Member's Nonuu)
Retirement Date, but not less than two hundred fifty dollars ($25O.O0)` plus the proceeds
in the Group I] Mtnobcc'm Cash 8u1a000 Account, and u dollar-for-dollar ooutob of tile
proceeds in Group ll Member's Cash 8uluooc &00000t plus u dn]|upfbr-do||ur ooutob of
the Regular Interest (at the Regular Interest rate in effect oo the date of such payment) ou
the proceeds in the Cash Balance Account, ifapplicable.
(4) The survivor's rnoodzly pension benefit for Group ll Member who dies in Lion
of Duty shall be calculated using u nou|dp|iez of two and fifty one-hundredths (2.5)
percent.
(b) "//e Not/x Line»f/)o/y
(\) Vested Group/IMember.
u. If u Vested Group l| Member diem before rodncoocot, vvbilc not in Line of
Duty, the surviving widow or widower shall be oodUed to receive a nzoodb|y
pension, the amount ofwhich shall be seventy-five (75) percent oftile Group 11
Member's accrued pension but not |cmm than one hundred fifty dollars ($150.00),
p|ox the proceeds iu the Group I| Member's Cash Balance Account, and udollm`
fbr-do1|ozcuu1oboftbuprnoecdniutbcGroup ]] Mcnobcr'xCoubBu|oucoAc000ut
plus u dollar-for-dollar match of the Regular Interest (at the Regular Interest rote
in effect on the date of such payment) on the proceeds in the C4ob Balance
Account, ifapplicable,
b. Each dependent child under eighteen (18) years of age ofsuch \/oxtnd Group
[l Member ohu|| he oohdcd to receive u nuooih}y pooaioo` the uonouut of which
mhui| be one hundred dollars ($100.00); provided, however, that if no surviving
Ordinance No.Z047l 10-2012
Page 76o[92
widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this Division, all such dependent children shall share equally a monthly
pension, the amount of which shall be seventy-five (75) percent of the Group 11
Member's accrued pension, but not less than one hundred fifty dollars ($150.00),
plus the proceeds in the Group 11 Member's Cash Balance Account, and a dollar-
for-dollar match of the proceeds in Group 11 Member's Cash Balance Account
plus a dollar-for-dollar match of the Regular Interest (at the Regular Interest rate
in effect on the date of such payment) on the proceeds in the Cash Balance
Account, if applicable.
c. If a Group 11 Member dies while not in Line of Duty and 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 (75) percent of the Group 11 Member's accrued pension, but not less
than one hundred fifty dollars ($150.00), plus the proceeds in the Group 11
Member's Cash Balance Account, and a dollar-for-dollar match of the proceeds in
Group 11 Member's Cash Balance Account plus a dollar-for-dollar match of the
Regular Interest (at the Regular Interest rate in effect on the date of such payment)
on the proceeds in the Cash Balance Account, if applicable.
d. The survivor's monthly pension benefit for a Vested Group 11 Member who
dies not in Line of Duty shall be calculated using a multiplier of two and twenty-
five one-hundredths (2.25) percent.
(2) Group H Member Not Vested At Time of Death. If a Group 11 Member was not
Vested on the date of death, the surviving widow or widower shall be entitled to the
return of all contributions which the Group 11 Member paid into the Fund during the
Group 11 Member's life plus Regular Interest thereon (at the Regular Interest rate in
effect on the date of any payment to the widow or widower). If there is not surviving
widow or widower, the contributions shall be paid to the estate of the Group 11 Member.
(c) After Retirement.
(1) Group H Members Who are Married at Retirement. Upon the death of a retired
Group 11 Member, the surviving spouse of the Group 11 Member may be eligible to
receive a monthly pension if the Group 11 Member has elected to receive a reduced
monthly pension, on a form and subject to procedures developed by the Executive
Director. The Group 11 Member's reduced monthly pension shall be actuarially
determined in a manner that is actuarially neutral to the Fund, based on Actuarial Tables
in effect on the date of the Group 11 Member's election to receive a reduced monthly
pension. Notwithstanding the preceding, a surviving spouse who was not married to the
deceased Group 11 Member at the time of the Group 11 Member's retirement shall be
eligible to receive a monthly pension if the Group 11 Member has elected to receive a
reduced monthly pension, on a form and subject to procedures developed by the
Executive Director, within six (6) months after the Group 11 Member's completion of
Ordinance No.2047 1-1 0-2012
Page 77 of 92
two (2) years of marriage to the Group II Member's spouse. The reduced monthly pension
shall be actuarially determined in a manner that is actuarially neutral to the Fund, based
on Actuarial Tables in effect on the date of the Group II Member's election to receive a
reduced monthly pension. The Group II Member can elect for his or her surviving spouse
to receive either one hundred (100) percent, seventy-five (75) percent, fifty (50) percent,
or twenty-five (25) percent of the Group II Member's reduced monthly pension.
(2) Group II Members Who Are Not Married on Date of Retirement. Upon the death
of a retired Group II Member who was not married at retirement, a Beneficiary
designated by the Group II Member at retirement may be eligible to receive a monthly
pension if the Group II Member has elected to receive a reduced monthly pension, on a
form and subject to procedures developed by the Executive Director. The Group II
Member's reduced monthly pension shall be actuarially determined in a manner that is
actuarially neutral to the Fund, based on Actuarial Tables in effect on the date of the
Group II Member's election to receive a reduced monthly pension. The Group II Member
can elect for his or her designated Beneficiary to receive either one hundred (100)
percent, seventy-five (75) percent, fifty (50) percent, or twenty-five (25) percent of the
Group II Member's reduced monthly pension. If a Group II Member who was not married
at retirement and who selected a designated Beneficiary pursuant to this Section later
marries, only the designated Beneficiary would be entitled to receive a lifetime monthly
pension.
(3) Each dependent child under eighteen (18) years of age of such deceased Group II
Member shall be entitled to receive a monthly pension, the amount of which shall be one
hundred dollars ($100.00), but shall cease upon the earliest of such child's death,
marriage or attainment of age eighteen(18) pursuant to the terms of this Division.
(d) If a terminated Group II Member entitled to a pension under the provisions of this
Division dies before the Group II Member's pension commences, the Group II Member's
designated Beneficiary, or if none, the Group II Member's estate shall receive an amount equal to
the Group II Member's total contributions to the Fund, plus Regular Interest (at the Regular
Interest rate in effect on the date of such payment), including any proceeds in the Group II
Member's Cash Balance Account, if applicable. If the Vested Group II Member's years of age
and years of Credited Service total at least sixty-five (65) as of the date of the Group II Member's
termination, the Group II Member's eligible dependents shall receive the benefit specified under
Section 2.5-57(b), based on the pension to which the Group II Member would have been entitled
as of the date of the Group lI Member's death, in lieu of the payment of contributions plus
Regular Interest. If the Group II Member's years of age and Credited Service did not total at least
sixty-five(65) as of the date of the Group II Member's termination, the Group II Member's
eligible dependents may choose between the reFund of contributions, the payment of the
survivor benefit at the date the Group II Member would have been eligible to draw the benefit, or
an immediate benefit at an actuarially reduced rate.
Sec. 2.5-58-2.5-60: Reserved
Ordinance No. 20471-10-2012
Page 78 of 92
DIVISION 6. PROVISIONS APPLICABLE TO FIREFIGHTERS ONLY
See. 2.5-61. Earnings
(a) Earnings shall mean the amount actually paid to a Firefighter by the City for services
rendered to the City during the calendar year, plus overtime, acting, assignment, holiday,
longevity, educational incentive, safety award, incentive and shift differential pay, as reported on
a Firefighter's W-2 form. "Earnings" shall also include weekly workers' compensation benefits
(currently referred to as temporary income benefits), beginning for such amounts received by
Firefighters on or after January 1, 2006, so long as required by law. Regardless of the fact that
the following payments may be shown upon a Firefighter's W-2 form, Earnings shall not include:
(1) Any non-salary allowance (such as uniform reimbursement, automobile
allowance or mileage, etc.),
(2) Lump sum 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 a firefighter for which the City does not contribute to the Fund
under this Section.
A Firefighter participating in a City-sponsored deferred compensation plan shall have the amount
of any deferred compensation credited to that Firefighter during the calendar year added to
Earnings reported on the Firefighter's W-2 form to arrive at total Earnings for Fund matters.
Mandatory Firefighter contributions that are picked-up by the City and excluded from a
Firefighter's W-2 form shall also be included as part of Earnings. Notwithstanding the
foregoing, Earnings in excess of two hundred thousand dollars ($200,000.00), 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 for all purposes of this
definition. Notwithstanding the preceding provisions of this definition of Earnings, Earnings
shall not include any amounts paid following a Firefighter's effective DROP Election.
Sec. 2.5-62. Retirement Dates
(a) Normal Retirement Date, A Firefighter shall be eligible for a standard pension benefit or
an Alternative Pension Benefit on or after the Firefighter's Normal Retirement Date which shall
be the last day of the month in which the earliest of the following occurs:
(1) The Firefighter's years of age and years of Credited Service total eighty(80); or
(2) The later of(i) the date on which the Firefighter reaches age sixty-five (65) or (ii)
the fifth anniversary of the date the Firefighter joined the Fund.
Ordinance No.20471-10-2012
Page 79 of 92
(b) Vested Terminated Retirement Date. A Vested Firefighter who is voluntarily or
involuntarily separated from the service of the City shall be eligible for pension benefits on or
after such Firefighter's Vested termination date which shall be the last day of the month in which
the Firefighter reaches age fifty (50), or, if earlier, the last day of the month in which the
Firefighter would have attained his or her Normal Retirement Date had the Firefighter remained
employed by the City.
Sec. 2.5-63. Compensation Base for Determining Benefits
(a) For Firefighters Hired and Vested before October 23, 2007 (Not Subject to Earnings
Cap)
Normal retirement pension, death pension, disability pension and Vested termination pension
shall be based upon the Firefighter's Compensation Base which shall mean the average annual
Earnings which were paid to the Firefighter by the City for employment with the City during any
three (3) of five (5) calendar years in which the Firefighter had the highest annual Earnings. If a
Firefighter's last day of employment with the City is on or after January 1, 1999, "three (3)"
shall be substituted for"five (5)" in the preceding sentence. If a Firefighter has less than five (5)
[or if applicable, three (3)] calendar years of employment, the Firefighter's Compensation Base
shall be determined by the Executive Director under uniform, non-discri minatory procedures that
are consistently applied. For Compensation Base purposes, any lump sum payments of Earnings
for any prior time period, whether awarded to the Firefighter by a court, administrative body or
settlement agreement, shall be retroactively attributed to the calendar year in which it would
otherwise have been received by the Firefighter from the City for services rendered. For
purposes of computing the Compensation Base for a Firefighter who has made an effective
DROP Election, the Firefighter's Compensation Base shall be calculated using the Firefighter's
Earnings prior to the effective date of the DROP Election.
(b) For Firefighters Not Vested by October 23, 2007 or hired On or After October 23, 2007
(Subject to Earnings Cap)
For a Firefighter who was not Vested by October 23, 2007 or was hired on or after October 23,
2007 and whose last day of employment with the City is on or after January 1, 1999, and whose
benefits commence on or after December 31, 2008, the Firefighter's Compensation Base shall be
calculated as follows:
(1) The Fund shall determine the four(4) calendar years in which the Firefighter had
the highest annual Earnings. Of such four (4) years, the year in which the Firefighter had
the lowest annual Earnings shall serve as the base year. The base year shall not be
included as one (1) of the three (3) calendar years for purposes of the Compensation Base
calculation.
(2) The first annual Earnings to be used in the calculation of the Firefighter's
Compensation Base shall be the actual annual Earnings from the calendar year with the
third highest annual Earnings of the four (4) calendar years identified in Section 2.5-
63(b)(1)a. provided that if such annual Earnings are from a calendar year beginning on or
Ordinance No. 20471-10-2012
Page 80 of 92
after January 1, 2008, the amount to be used in the calculation of the Compensation Base
for the first year shall not exceed one hundred twelve (112) percent of the annual
Earnings for the base year.
(3) The second annual Earnings to be used in the calculation of the Firefighter's
Compensation Base shall be the actual annual Earnings from the calendar year with the
second highest annual Earnings of the four (4) calendar years identified in Section 2.5-
63(b)(I)a., provided that if Such annual Earnings are from a calendar year beginning on
or after January 1, 2008, the amount to be used in the calculation of the Compensation
Base for the second year shall not exceed one hundred twelve (112) percent of the annual
Earnings used that are attributable to the year described in Section 2.5-63(b)(I)b.
(4) The third annual Earnings to be used in the calculation of the Firefighter's
Compensation Base shall be the actual annual Earnings from the calendar year with the
highest annual Earnings of the four(4) calendar years identified in Section 2.5-63(b)(I)a.
provided that if such annual Earnings are from a calendar year beginning on or after
January 1, 2008, the amount to be used in the calculation of the Compensation Base
for the third year shall not exceed one hundred twelve (112) percent of the annual
Earnings used that are attributable to the year described in Section 2.5-63(b)(I)c.
(5) The average of the three (3) amounts determined in accordance with Section 2.5-
63(b)(I)a. through (b)(I)d. will be the average annual Earnings for purposes of the
Firefighter's Compensation Base.
See. 2.5-64 Termination Bencifits and Vesting
(a) Contribution ReFund Prior to Vesting. Any Firefighter who is voluntarily or
involuntarily separated from the service of the City before the Firefighter is Vested shall be
entitled to receive the amount of the Firefighter's contributions plus Regular Interest (at the
Regular Interest rate in effect on the date of such payment) less any amount previously paid to
the Firefighter from the Fund.
(b) Vested Termination Pension.
(1) A Vested Firefighter who is voluntarily or involuntarily separated from the
service of the City shall be entitled to receive a Vested Termination Pension payable: (i)
in full,pursuant to Section 2.5-65 or(1i) in a reduced amount commencing on or after age
fifty (50). A Firefighter must file a request for the commencement of the Vested
Termination Pension by completing such forms and following such procedures as are
established by the Board. A Vested Termination Pension shall be payable monthly on the
first day of each month commencing with the month following approval of the
Firefighter's Vested Termination Pension by the Board.
(2) A Vested Termination Pension shall be an annual life pension, the amount of
which shall be the specified percentage of the Firefighter's Compensation Base
multiplied by the Firefighter's total years of Credited Service to date of such voluntary or
Ordinance No.2047 1-1 0-20 1 2
Page 81 of 92
involuntary separation from the service of the City. For purposes of the preceding
sentence, the specified percentage of the Firefighter's Compensation Base shall be two
and seventy-five hundredths (2.75) percent unless the Firefighter has attained his or her
Normal Retirement Date or Vested terminated retirement date prior to the date the
Firefighter's pension payments begin, in which case the specified percentage shall be
three (3) percent. A Vested Termination Pension shall be calculated using the multiplier
("specified percentage") in effect at the time the Vested Termination Pension commences
(rather than at the time the Firefighter's employment with the City terminates).
(3) In addition to the reduced multiplier described in Section 2.5-64(b)(2), if a
Firefighter has not attained his or her Normal Retirement Date or Vested terminated
retirement date prior to the date the Firefighter's Vested Termination Pension payments
begins, the amount of reduction for commencement of a pension prior to the
Firefighter's Normal Retirement or Vested Retirement Date shall be five-twelfths (5/12)
percent for each month by which coirunencement of the pension antedates the Firefighter
Normal Retirement Date had the Firefighter remained employed by the City.
(c) Contribution ReFund after Vesting in Lieu of Vested Termination Pension. Any Vested
Firefighter who is voluntarily or involuntarily separated from the service of the City may elect to
receive a reFund of the Firefighter's contributions, plus Regular Interest (at the Regular Interest
rate in effect on the date of such payment) less any amount previously paid to the Firefighter
from the Fund, either at the date of such separation or at any time thereafter prior to
commencement of Retirement Benefit, but by so doing, the Firefighter shall forfeit all rights
under the Fund and thereafter be entitled to no further benefits.
See. 2.5-65. -Retirement Pension for Firefighters
(a) Pensions Commencing upon Normal Retirement Date.
(1) Standard Pension Benefit. A Vested Firefighter who retires on or after the
Firefighter's Normal Retirement Date and requests commencement of the Firefighter's
pension, or a Firefighter who terminates employment prior to the Firefighter's Normal
Retirement Date and who waits until such Vested Retirement Date to apply for a pension,
shall receive an annual life pension, the amount of which shall be three (3.0) percent of
the Firefighter's Compensation Base multiplied by the Firefighter's total years of
Credited Service, payable monthly on the first day of each month commencing with the
month following the Board's approval of the Firefighter 's pension. This Retirement
pension shall be defined as the "Firefighter Standard Pension Benefit."
(2) Alternative Pension Benefit. In lieu of the Standard Pension Benefit, a Firefighter
may irrevocably elect with his or her spouse's consent(where applicable), in advance of
his or her retirement and pursuant to regulations and requirements the Board in its
discretion may adopt, to receive an "Alternative Pension Benefit" which shall be
Actuarially Equivalent to the Firefighter's Standard Pension Benefit and which shall be
payable in two (2) parts: (i) one (1) part in a lump sum amount not less than five (5)
percent nor greater than twenty-five (25) percent of the Actuarial Equivalent of the
Ordinance No. 20471-10-2012
Page 92 of 92
Firefighter's Standard Pension Benefit, which b/nnp sum ubu1 be ouvahie on the date
benefits commence under(ii); and (iU the remainder iuuo annual life pension, payable
monthly on the first day of each month commencing with the month following the
Board's approval o[the Firefighter's Alternative Pension Benefit.
(3) Limitation on Alternative Pension 8enefiiNotwithstanding any other provision io
this Division h` the contrary, the option to elect unAlternative Pension Benefit shall not
be available for any disability pension under Section 2.5'66. death pension under Section
2.5-67, or uoouu| Ycmtcd Termination Pension under Section 2.5-04, nor sbuU it be
uvui|uh\c to any Firefighter who is receiving pension benefits as of the effective date of
the Alternative Pension Benefit provisions of this Division, nor shall it be available upon
re- retirement to any ,udrcd Firefighter who becomes re-employed by the City.
See. 2.5-66 Disability Pension
(u) See Scubou 2.5'7, for (]eoerui Provisions related to Disability Pension
(b) l}bo6/li/y br Line o/Duty, If Firefighter, whether ornot Vested, becomes disabled as
defined in Section 2.5-7(u) v,bi|o in Line of Duty, the Firefighter shall receive an uuouul life
pension, the amount of which shall be the specified percentage of the Firefighter's Compensation
Buse multiplied by the Firefighter's io(u1 years of Credited Service which would have accrued if
the Firefighter had worked to the Firefighter's Nvnnm| Drdrunneot [)utn, but not less than two
hundred fifty dollars ($250.00) per ouooib. For purposes of the preceding sentence, the specified
percentage ofthe Firefighter's Compensation Base shall he two and seventy-five one-hundredths
(2.75) percent, uu|cax the Firefighter is already eligible to retire on or after the Firefighter's
Normal Retirement Date, iu which case the specified percentage shall hedxee (3.0) percent.
(c) Disability not in Line of Duty for Vested Firefighters. {fa Vested Firefighter becomes
disabled defined in Section 2.5'7(u) while not in Line of Duty, the Firefighter ako}l receive an
uonuu| life pnomiou' the amount of which shall he the specified percentage of the Firefighter's
Compensation Base multiplied by the Firefighter's total years of Credited Service to date of
uotou| robcooueot. For purposes of the preceding sentence, the specified percentage of the
PizcOebtcr'o Compensation Base shall botwo and seventy-five one-hundredths (2.75) percent,
uo)eam the Firefighter is already eligible to retire onor after the Firefighter's Normal Retirement
[)uto, io which case the specified percentage shall bo three (3.0) percent.
(d) I)/sub////y Not in lhze (?f Ditty for Non-Vested Firefighters. If o Firefighter becomes
disabled while not io Line of Duty before the Firefighter in Vested, then such Firefighter shall hn
entitled to receive u contribution repund in accordance with Section 2.5-64(u).
See. 2.5-67 Death Benefits for Firefighters
(o) While In the Line n//}oty
(\) Ifu Firefighter dies before retirement wbdc in Line mfDuty and as u result of the
porbnnmanoeufthat Firefighter's duties, the surviving widow oc widower shall hnentitled
Ordinance No. 2047| 10-2012
Page 83o[92
to receive a monthly pension, the amount of which shall be seventy-five (75) percent of
the Firefighter's pension, based on the number of years of Credited Service that would
have accrued had the Firefighter lived to the Firefighter's Normal Retirement Date, but
not less than two hundred fifty dollars ($250.00).
(2) Each dependent child under eighteen (18) years of age of such Firefighter shall be
entitled to receive a monthly pension, the amount of which shall be one hundred dollars
($100.00), provided however, that if no surviving widow or widower shall be entitled to
receive a monthly pension pursuant to the terms of this Division, all such dependent
children shall share equally a monthly pension, the amount of which shall be seventy-
five (75) percent of the Firefighter's pension, based on the number of years of Credited
Service that would have accrued had the Firefighter lived to the Firefighter's Normal
Retirement Date, but not less than two hundred fifty dollars ($250.00).
(3) If a Firefighter dies while in Line of Duty and leaves no widow or widower or
children eligible to receive a benefit hereunder, but is survived by a dependent parent or
parents, such dependent parent(s) shall be entitled to receive a monthly pension, the
amount of which shall be seventy-five (75) percent of the Firefighter's accrued pension
projected to the Firefighter's Normal Retirement Date, but not less than two hundred fifty
dollars ($250.00).
(4) The survivor's monthly pension benefit for a Firefighter who dies in Line of Duty
shall be calculated using a multiplier of three (3.0) percent.
(b) While Not in Line of Duty.
(1) Vested Firefighter.
a. If a Vested Firefighter dies before retirement, while not in the Line of Duty,
the surviving widow or widower shall be entitled to receive a monthly pension,
the amount of which shall be seventy-five (75) percent of the Firefighter's accrued
pension but not less than one hundred fifty dollars ($150.00).
b. Each dependent child under eighteen (18) years of age of such Vested
Firefighter shall be entitled to receive a monthly pension, the amount of which
shall be one hundred dollars ($100.00); provided, however, that if no surviving
widow or widower shall be entitled to receive a monthly pension pursuant to the
terms of this Division, all such dependent children shall share equally a monthly
pension, the amount of which shall be seventy-five (75) percent of the
Firefighter's accrued pension, but not less than one hundred fifty dollars
($150.00).
Ordinance No.20471-10-2012
Page 84 of 92
c. If a Vested Firefighter dies while not in Line of Duty and leaves no widow or
widower or children eligible to receive a benefit hereunder, but is survived by a
dependent parent or parents, such dependent parent(s) shall be entitled to receive
a monthly pension, the amount of which shall be seventy-five (75) percent of the
Firefighter's accrued pension, but riot less than one hundred fifty dollars
($150.00).
(2) Firefighter Not Vested At Time of Death. If a Firefighter was not Vested on the
date of death, the surviving widow or widower shall be entitled to the return of all
contributions which the Firefighter paid into the Fund during the Firefighter's life plus
Regular Interest thereon (at the Regular Interest rate in effect on the date of any
payment to the widow or widower). If there is not surviving widow or widower, the
contributions shall be paid to the estate of the Firefighter.
(c) After Retirement.
(1) Upon the death of a retired Firefighter, the surviving widow or widower shall be
entitled to receive a monthly pension, the amount of which shall be seventy-five (75)
percent of the pension being paid to the Firefighter, provided that the Firefighter and the
surviving widow or widower had been married for at least one (1) year immediately prior
to the Firefighter's retirement. 'Notwithstanding the preceding sentence, a surviving
widow or widower who was not married to the deceased Firefighter for at least one (1)
year immediately prior to the Firefighter's retirement shall be eligible to receive a
monthly pension if the Firefighter has elected to receive a reduced monthly pension, on
a form and subject to procedures developed by the Executive Director, within six (6)
months after the Firefighter's completion of two (2) years of marriage to the
Firefighter's spouse. The reduced monthly pension shall be actuarially determined in a
manner that is actuarially neutral to the Fund, based on Actuarial Tables in effect on the
date of the Firefighter's election to receive a reduced monthly pension. If such an election
has been made, the surviving widow or widower shall receive a monthly pension for life
equal to seventy-five (75)percent of the Firefighter's reduced monthly pension.
(2) Firefighters Who Are Not Married on Date of Retirement. Upon the death of a retired
Firefighter who was not married at retirement, a Beneficiary designated by the Firefighter
at retirement may be eligible to receive a monthly pension if the Firefighter has elected to
receive a reduced monthly pension, on a form and subject to procedures developed by the
Executive Director. The Firefighter's reduced monthly pension shall be actuarially
determined in a manner that is actuarially neutral to the Fund, based on Actuarial Tables
in effect on the date of the Firefighter's election to receive a reduced monthly pension.
The Firefighter can elect for his or her designated Beneficiary to receive either one
hundred (100) percent, severity-five (75) percent fifty (50) percent, or twenty-five (25)
percent of the Firefighter's reduced monthly pension. If a Firefighter who was not
married at retirement and who selected a designated Beneficiary pursuant to this Section
later marries only the designated Beneficiary would be entitled to receive a lifetime
monthly pension.
Ordinance No. 20471-10-2012
Page 85 of 92
(3) Each dependent obUd under eighteen (18) years of age of such retired deceased
Flrofirbhr oboJi be oohUed to receive u monthly pension, the amount of which ubo | be
one hundred dollars (Sl00.00), but shall cease upon the earliest of such child's death,
marriage or attainment o[age eighteen (|8) purmuun{\o the terms o[the ordinance.
(d) lJ*odh »fTs&ed Dsnn/no/ed Firefighter Prior to Pension Commencing. If a |mnniouted
Firefighter entitled to u pension dies before the Firefighter's pension cozucuuuocx` the Firefighter's
designated Bcuufioiu,y, or if none, the Firefighter's estate aho|\ receive an amount m]uu| to the
Firefighter's total cmu1dbodooa to the Fund, plus Regular Interest. If the Vested Firefighter's
years of age and years and Credited Service total at least sixty-five (05) as of the date of the
Firefighter's \oouioa1ioo, the Firefighter's eligible dependents shall receive the benefit specified
under Section 2.5-60, based on the pension to which the Firefighter would have been euddnd as
of the date of the Firefighter's death, in lieu of the pu}mco1 of contributions plus Ilcguluu
Interest. If the Firefighter's years of age and service did not total at least sixty-five (65) as of the
date of the Firefighter's termination, the Firefighter's eligible dependents may choose he\vveoo
the reFuodmf contributions, the payment of the survivor benefit ut the date the Firefighter would
have been eligible to draw the benefit, oran immediate bnoefiiatun actuarially reduced rate.
Sections 2.5-68 through 2.5-225: Reserved
Ordinance No. 20471-10-2012
Page 86 of 92
ARTICLE 11—RETIRED EMPLOYEES GROUP DEATH BENEFIT FUND
Sec. 2.5-226- Continuation of death benefit Fund
Ordinance No. 6235, as adopted by the City council on January 26, 1970, created and established
a Fund designated as the "Retired Employees Group Death Benefit 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, Texas. That Fund is still in existence and shall continue operation as herein
set forth.
Sec. 2.5-227. - Appropriations to Fund
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 2.5-229 on all 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.
See. 2.5-228. - Definitions
With reference to the Retired Employees' Group Death Benefit Fund, the following words, terms
and ph-rases 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.
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.
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.
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 Fund 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.
See. 2.5-229. - Entitlement to death benefit
When a Member of the Fund dies subsequent to retirement from active employment with the
City, the Surviving Spouse shall be entitled to receive (in addition to 'benefits provided by the
0-dinance No.20471-10-2012
Page 87 of 92
Fund a lump-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, a lump-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 surviving Designated 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, a
lump-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) mumment 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.
Sec. 2.5-230. - Executive director of death benefit Fund
The Executive Director of the Fund shall be charged with the duty of making the lump-sum
payments herein provided for, and such payments shall be made solely from Funds appropriated
by the City Council for such purpose. The Executive Director shall maintain such records as may
be necessary in the administration of the Retired Employees' Group Death Benefit Fund. The
Executive Director shall maintain a special accounting of the Funds heretofore and hereby
appropriated, and the Executive Director shall not make any payments authorized hereunder
from Funds contributed by the employees or the City under the provisions of the Fund or from
Earnings on such contributions.
Sec. 2.5-231. - Board of Trustees
The Board of Trustees of the Fund shall act on behalf of the City Council of the City of Fort
Worth as trustees of the Retired Employees' Group Death Benefit Fund under the same
provisions, regulations and procedures for the investment of Funds of the Employees'
Retirement Fund of the City of Fort Worth.
All records and Earnings on the assets of the Retired Employees' Group Death Benefit Fund shall
be maintained separate and apart from assets and Earnings of the Fund.
Ordinance No. 20471-10-2012
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ARTICLE III—CITY OF FORT WORTH SUPPLEMENTAL RETIREMENT
ORDINANCE
See. 2.5-232. - General Provision
(a) Establishment of supplemental retirement ordinance. There is hereby created and
established an ordinance designated as the City of Fort Worth Supplemental Retirement
Ordinance which shall provide benefits to Members of the Fund whose benefits are limited by
the qualified plan limits under the Internal Revenue Code of 1986, as amended.
(b) Appropriations. The City shall annually appropriate such amounts as may be necessary to
provide for the payment of benefits under the supplemental retirement ordinance. Such
appropriations shall continue to 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.
(c) Purpose. The purpose of this Article is to provide Members with certain benefits which,
because of the qualified plan limits, are not provided to such Members under the Fund
(d) Governing law. The ordinance shall be construed in accordance with and governed by the
laws of the State of Texas.
(e) Amounts provided by the City. Benefits under the ordinance shall constitute general
obligations of the City in accordance with the terms of the ordinance. No amounts in respect of
such benefits are required to be set aside or held in trust, and no recipient of any benefit
hereunder shall have any right to have the benefit paid out of any particular asset of the City,
except to the extent the City may establish a grantor ("rabbi") trust, which trust will not be
protected from the City's creditors. Members have the status of general unsecured creditors of
the City and this ordinance constitutes promise to make benefit payments as described herein.
See. 2.5-233. - Definitions
The following words, terms and phrases when used in this Article, as may be amended, shall
have the respective meanings set forth below, unless their context clearly indicates to the
contrary. The masculine pronouns, wherever used herein, shall include both male and female
persons, and the singular may include the plural, and vice versa.
Effective date means April 1, 1999.
Ordinance means the City of Fort Worth Supplemental Retirement Ordinance, as amended from
time to time.
Plan year means the twelve-month period beginning on January 1 st and ending on December
31 st.
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Qualified plan limits means the limitation on qualified plan benefits under Code Sections
401(a)(I 7) and 415, as amended.
See. 2.5-234. - Eligibility and benefits
(a) Employees eligible to participate. Each employee of the City who is a Member of the
Fund shall be eligible to participate in the Ordinance. Each such employee whose benefits under
the Fund are reduced due to the qualified plan limits shall automatically participate in and be
eligible to receive benefits under this ordinance.
(b) Benefits.
(1) Amount of'benefits. If the benefits payable to a Member from the Fund are limited
by the Qualified Plan Limits, the amount by which such benefits are so limited shall be
paid to such Member under this Ordinance. For purposes of this Ordinance, death and
disability benefits under the Retirement Ordinance which are limited by the Qualified
Plan Limits shall be provided hereunder.
(2) Payment of'benefits. Payment of a Member's benefits calculated under Section
2.5-234(b)(1) hereof shall be made to such Member, after termination of employment
with the City. Payment shall be made at the same time and in the same form as the
Member's benefits under the Employees' Retirement Fund. If a Member's (or his or her
Beneficiary's) death or disability benefits under the Fund are reduced by the Qualified
Plan Limits, such reduced benefits shall be paid under this Ordinance at the same time, in
the same form, and to the same person(s) who receive the Fund benefits.
See.2-235. - Administration and miscellaneous
(a) General. The Ordinance shall be administered by the Board.
(b) Powers and ditties. The Board shall have such powers as may be necessary to discharge
its duties hereunder, including without limitations, the complete discretion to construe and
interpret the ordinance, determine eligibility to participate, compute any benefits payable, grant
or deny any benefit claims, review any claim denials and to give directions to the trustee under
any grantor trust referred to in Section 2.5-232(e) hereof. The Board may delegate its duties
hereunder as it deems appropriate, including to any committee it may appoint or to the Executive
Director,
(c) Amendment, termination, etc. The City may, in its absolute discretion, from time to time,
amend, suspend, or terminate in whole or in part, and if terminated reinstate, any or all of the
provisions of the Ordinance.
(d) Yonguarantee of employment. Nothing contained in this Ordinance shall be construed as
a contract of employment between the City and any employee, or as providing a right of any
employee to be continued in the employment of the City, or as a limitation of the right of the
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City to discharge any of its employees, with or without cause.
(e) Nonalienation of benefits. To the extent permitted by law, benefits payable under this
Ordinance shall not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnislunent, execution, or levy of any kind, either
voluntary or involuntary. Any unauthorized attempt to anticipate, alienate, sell, transfer, assign,
pledge, encumber, charge or otherwise dispose of any right to benefits payable hereunder shall
be void. No part of the assets of the City shall be subject to seizure by legal process resulting
from any attempt by creditors of or claimants against any Member (or Beneficiary), or any
person claiming under or through the foregoing, to attach his interest under the ordinance.
(f) Liability. No Member of the Board shall be liable for any act or action, whether of
omission or commission, taken by any other Member, or by any officer, agent, or employee of
the City or of any such body, nor, except in circumstances involving his bad faith, for anything
done or omitted to be done by himself.
SECTION 3
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 4
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.
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SECTION 5
The City Council finds that all 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 6
This ordinance shall be in full force and effect from and after its adoption_
AND IT IS SO ORDAINED:
APPROVED AS TO FORM AND LEGALITY:
B/ Laetitia Coleman Brown
Senior Assistant City Attomey
ADOPTED and EFFECTIVE: October 23, 2012
Ordinance No. 20471-10-2012
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10123/2012 - Ordinance No. 20471-10-2012
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DATE: Tuesday, October 23, 2012 REFERENCE NO.: G-17712
LOG NAME: 12PENSION CHANGES 2012
SUBJECT:
Adopt Ordinance Repealing Article VI, "Retirement” of Chapter 2, "Administration" of the Code of Fort
Worth and Creating a New Chapter 2.5 "Retirement" to Govern the City of Fort Worth Retirement System
and Modify the Pension Benefits for Police Officers and General Employees (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance repealing Article VI, "Retirement" of
Chapter 2, "Administration" of the Code of Fort Worth and creating a new Chapter 2.5 "Retirement" to
govern the City of Fort Worth Retirement System and modify the pension benefits for police officers and
general employees.
DISCUSSION:
In 1945 the City of Fort Worth established the Employee's Retirement Fund of the City of Fort Worth
(Fund)which is a tax-qualified government pension plan (Plan). The City picks-up and pays member
contributions on a pre-tax basis for the employee. Since 2007, the Plan has been governed by 62431 of
the Texas Revised Civil Statutes. The statute permits both the Retirement Fund Board and the City
Council to make rules governing the Plan. The Plan is also subject to Article 16, Section 66 of the Texas
Constitution. The City and the Fort Worth Police Officers Association entered into a Meet and Confer
Agreement in 2008. The current agreement allows the City to make changes to the Plan. The City and the
Fort Worth Professional Fire Fighters Association entered into a Collective Bargaining Agreement in 2010.
The Collective Bargaining Agreement prohibits the City from making any changes to the Plan.
The Cast-of-Living Adjustment(COLA)
In 1999, the City adopted Ordinance Number 13842, effective January 1, 2000, giving all members of the
Plan a guaranteed two percent simple COLA during their retirement. In 2007, the City adopted an
ordinance providing for a compounded ad hoc COLA for all non-vested members and all future employees
that would be given based on the amortization period of the Fund. (Ordinance Number 17839-10-2007).
Vested employees were given the option of choosing between the two percent COLA and the ad hoc
COLA. The ad hoc COLA would be given as follows:
• Four percent if the amortization period of the Fund is 18 years or less;
• Three percent if the amortization period of the Fund is between 18.1 years —24.0 years;
• Two percent if the amortization period of the Fund is between 24.1 years— 28 years;
• No COLA if the amortization period is greater than 28.1 years;
The purpose of the ad-hoc COLA was to allow members of the Fund to share in the risks and benefits of
the investment results of the Fund. However, history has shown that the ad hoc COLAs were triggered by
changes to the Plan and increases in contributions rather than investment returns. The Fund's actuary
projected in 2012 that another ad hoc COLA would not be awarded for twenty-one years if no changes are
Logname: 12PENSION CHANGES 2012 Page I of 4
made and all current assumptions are met. This would result ina significant challenge for current retirees
who have nO inflation protection enintended.
Benefit Reductions
In 2011, the City implemented benefit reductions for general employees hired on or after July 1, 2011
(Ordinance Number 10508'O3-2011). Those reductions included a reduction in the normal retirement
multiplier(2.5 percanU, a reduction in the benefit calculation from the highest three years of earnings to
highest five years of earnings and the elimination of all COLAs, among others.
Summa[y of City Manager's Recommendation
In an effort to resolve the structural dilemma of the ad hoc COLA, the City Manager recommended on May
15. 2012 that the City Council adopt ordinance amendments that would assign a two percent simple
guaranteed annual adjustment for future service for Pn|ima Officers hired prior to January 1. 2013 and for
General Employees hired prior to July 1, 2011. Police Officers and General Employees who were subject
to the ad hoc COLA would be given the opportunity to select the guaranteed two percent simple annual
adjustment for past years of service. Retirees and beneficiaries subject to the ad hoc COLA would be
given the opportunity to select the two percent simple guaranteed annual adjustment for the future, based
on their starting pension amounts with the first payment occurring in January 2014.
The City Manager is recommending to reduce benefits and eliminate a COLA for police officers hired on or
after January 1. 2013.
The City Manager's original recommendation also included a reduction in benefits for future service
accruals for existing police officers and general employees beginning July 1, 2013. The recommendation
by the City Manager Would also freeze the cash balance account for general employees hired on or after
July 1' 2011 and reduce the multiplier for death benefits for current police officers and general employees
under certain circumstances. The City Manager now recommends postponement of the effective date for
changes for current employees until October 1, 2013, in order to allow adequate time for financial system
modifications by both the City and the Fund.
On July 10. 2012' the City Council adopted Resolutions 4102-07-2012 and 4103-07-2012. notifying the
Board of Trustees of the Fund that the City Council intended to consider and vote on amendments to the
Retirement Ordinance for Police Officers and General Employees to reduce non-accrued benefits
provided by the retirement system.
Recommended Ordinance Amendments
After months of discussion with the Board and Staff ofthe Fund. the Police Officers Association,
employees and retirees, the City Manager is recommending the following amendments to the ordinance
governing the City's Retirement System:
1. Add definitions for Group I Members, Group 11 Members, Group III Members, Group IV Members,
Cash Balance Account, and General Employee.
3' For Police Officers Hired Prior tm January 1' 2013 (Referred tpmo Group III yMmnnbars):
a Pension Benefits will ba subject toa two percent simple cost of living adjustment for all credited
service earned or purchased on or after October 1, 2013, Group III Members who were subject to the ad-
hoc cost of living adjustment will be given the option of selecting the two percent simple cost of living
adjustment for credited service earned or purchased prior to October 1, 2013;
b. Compensation base for credited service earned or purchased on or after October 1, 2013 will be
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High 5 and will not include overtime; however, City contributions will continue to be made on overtime for
Group III Members;
c. Multiplier for normal retirement and vested termination benefit will be 2.5 percent for credited
service earned or purchased on or after October 1, 2013;
d. Multiplier for credited service earned or purchased on or after October 1, 2013 will be 2.25 percent
for vested termination pension drawn before normal retirement date (early retirement), benefits for death
not in the line of duty for vested employees, and disability not in the line of duty for vested employees; and
e. Multiplier and compensation base for vested termination pension will be the multiplier and
compensation base in effect on the date the credited service was earned or purchased.
3. For General Employees Hired Prior to July 1, 2011 (Referred to as Group I Members):
a. Pension Benefits will be subject to a two percent simple cost of living adjustment for all credited
service earned or purchased on or after October 1, 2013. Group I Members who were subject to the ad-
hoc cost of living adjustment will be given the option of selecting the two percent simple cost of living
adjustment for credited service earned or purchased prior to October 1, 2013;
b. Compensation base for credited service earned or purchased on or after October 1, 2013 will be
High 5 and does not include overtime; however, City contributions will continue to be made on overtime for
Group I Members;
c. Multiplier for normal retirement and vested termination retirement is 2.5 percent for credited service
earned or purchased on or after October 1, 2013;
d. Multiplier for credited service earned or purchased on or after October 1, 2013 is 2.25 percent for
vested termination benefits drawn before normal retirement date (early retirement), benefits for death not
in the line of duty for vested employees, and disability not in the line of duty for vested employees; and
e. Multiplier and compensation base for vested termination benefits will be the multiplier and
compensation base in effect on the date the credited service was earned or purchased.
4. For Police Officers Hired on or after January 1, 2013 (Referred to as Group IV Members):
a. No Cost of Living Adjustment;
b. Compensation base is High 5 and does not include overtime, vacation sell-back, or payments from
the City's Wellness Program;
c. Multiplier for normal retirement, death in the line of duty, and vested termination retirement is 2.5
percent;
d. Multiplier is 2.25 percent for vested termination benefits drawn before normal retirement date (early
retirement), benefits for death not in the line of duty for vested employees, disability in the line of duty, and
disability not in the line of duty for vested employees;
e. Multiplier and compensation base for vested termination benefits will be the multiplier and
compensation base in effect on the date the credited service was earned or purchased; and
f. Actuarially neutral survivor benefit.
5. For General Employees Hired on or After July 1, 2011 (Referred to as Group II Members):
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a. Compensation bmsedoe8notino|udeoverhme. vanabonsell-bGok. orpoymentsfnzroVleCKy3
Wellness Program;
b. 2.5 percent multiplier for death in the line of duty;
c 2.25 percent multiplier for death not in the line nfduh/�
d. Overtime cash balance account frozen as0f October 1` 2013; and
e. Multiplier and compensation base for vested termination pension will be the multiplier and
compensation base in effect on the date the credited service was earned or purchased.
6- For Members and Beneficiaries Receiving Benefits from the Fund:
All members and beneficiaries currently receiving benefits from the Fund who are under the ad-hoc
cost Of living adjustment will be allowed ho choose the two percent simple cost of living adjustment for
future years. A member or beneficiary who chooses the two percent simple cost of living adjustment will
receive an annual cost of living adjustment of two percent of their base salary at retirement, which will be
added tn their current retirement,
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that the proposed changes are designed hoimprove
the long term funded status of the Retirement Fund, which may have a positive impact on City funds in the
future.
CENTERS:FUND TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by:
SusanAlanio (8188)
Originating Department Head: SanahFuUenwider (7606)
Additional Information Contact: LaehdaBrown (5039)