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HomeMy WebLinkAboutOrdinance 7056 ORDINANCE NO. a56 AN ORDINANCE AMENDING ORDINANCES NOS. 2999, 4060, 4250, 4304, 4854, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393 .AM 6556, WHICH ORDINANCES ES- TABLISH AND PROVIDE FOR A RETIREMENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THE CITY OF FORT WORTH; PROVIDING FOR ACKNOWLEDGMENT OF CREA- TION OF THE FUND; DEFINING CREDITED SERVICE, ELI- GIBLE EMPLOYEES, TERMS AND PROVISIONS; PROVIDING FOR MEMBERSHIP; PROVIDING FOR INCREASED CONTRIBU- TIONS BY MEMBERS AND THE CITY; PROVIDING FOR SERVICE BREAKS, RETIREMENT DATES, COMPENSATION BASE FOR DETERMINING BENEFITS, RETIREMENT PENSIONS, TOTAL AND PERMANENT DTSABILITY BENEFITS, DEATH BENEFITS, AND TERMINATION BENEFITS AND VESTING; PROVIDING FOR THE MAINTENANCE OF ACCOUNTS, ANNUAL ACTUARIAL VALUATIONS, ADMINISTRATION AND EXPENSES THEREOF; PROVIDING AN EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS; PROVIDING FOR AMENDMENT HEREOF; MAKING THIS ORDINANCE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A LIMITATION OF LEGAL RIGHTS; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That Ordinance No. 2999, passed and adopted by the City Council on Wednesday, the 24th day of September, A. D. 1952, as amended by Ordinances Nos. 4060, 4250, 4304, 4354, 4430, 4860, 4861, 4873, 4875, 5226, 5259, 6393 and 6556, be and the same is hereby amended and, after being so amended, the same shall be and read as follows: SECTION 1. ACKNOWLEDGMENT OF CREATION OF THE FUND Acknowledgment is hereby made of the creation and es- tablishment by prior ordinance .in 1946 of the "Employees ' Retirement Fund of the City of Fort Worth, a Trust, " which fund is the same pension trust considered by the Supreme Court in City of Fort Worth V. Howerton, 149 Tex. 614, 236 S.W.2d 615 (1951) , and further, which Trust was amended in 1963 pursuant to the adoption of Article 6243e-2, Vernon' s Civil Statutes, which amending Article abolished the statutory Firemen' s Relief and Retirement Fund in the City of Fort Worth. The abolition of the Firemen' s Relief and Retirement Fund in the City of Fort Worth by the adoption of Article 6243e-2 by the Legislature was of great bene- fit to employees of the City of Fort Worth for the rea- son that the minimum pension under the State statute was a minimum of Fifty Dollars ($50.00) a month and the maximum was Two Hundred Six Dollars ($206.00) a month. The abolition of the statutory Firemen' s Relief and Re- tirement Fund, which was actuarially unsound, was also of benefit to the firemen, the City and its employees, in that the Legislature of the State of Texas refrained from adopting proposed legislation which would have required a contribution of nine per cent (9/) from the fire em- ployees and twelve per cent (12/) from the City to make such Fund sound. After the adoption of Article 6243e-2, abolishing the Firemen' s Relief and Retirement Fund in the City of Fort Worth and authorizing the assets thereof to be trans- ferred to the Employees ' Retirement Fund of the City of Fort Worth, a Trust, the other employees of the City of Fort Worth voted to permit firemen to join the Trust Fund of the Employees' Retirement Fund of the City of Fort Worth. In 1963 all active firemen in the employ of the City became -la- members of and "subject to all provisions of" the Em- ployees` Retirement Fund of the City of Fort Worth. Since the assets transferred from the Firemen' s Re- lief and Retirement Fund were insufficient to provide im- proved benefits, it was necessary that contributions to the Fund by both the City and the employees be substan- tially increased to insure sufficient funding and improved benefits. At an election held on June 28 and 29, 1974, by the members of the Employees ' Retirement Fund of the City of Fort worth, in excess of eighty-three per cent (83%) of such membership approved the following proposition: "Shall the employees' contributions to the Retirement Fund be increased by an amount not less than 1-1/2% of salary, nor more than 2-3/4% of salary, provided that the employees ' total contribution shall not exceed 2/3 of the total amount contributed by the City of Fort Worth; such increases in contribution being necessary to provide adequate funding for normal retirement at age 55 after 30 years of service and an increase in the amount of pension payments?" At the time of the adoption of such proposition, the em- ployee contributions were six per cent (6%) and the City' s contributions nine per cent (9%) of salary. SECTION 2. DEFINITIONS 1. "Credited service" shall mean the number of years and completed months of service for which a participating employee receives compensation from the City of Fort Worth up to the date of his actual retirement. -2- 2. "Employees eligible for participation" in the Retirement Fund shall include all regular employees of the City of Fort Worth except the following employees who shall not be eligible for participation in the Re- tirement Funds a. Elective officers and non-salaried, appointive members of administrative boards and commissions, except em- ployee members of such boards; b. Persons employed under contract for a definite period or for performance of a particular, special service; C. Employees serving on a part-time basis of less than one-half time; d. Employees who are paid in part by the County, State or other governmental agency, and only in part by the City; e. Employees of the Board of Education; f. Employees who retain membership in any other local municipal. or State Re- tirement Fund; and g. Persons carried on the payroll as tem- porary employees. Whether or not any employee is a temporary or permanent employee shall be determined by the record of the appointment. Any em- ployee, department head or any other interested person may appeal to the Board of Trustees of the Retirement Fund for a determination as to any per- son' s eligibility to become a member of the Fund. 3. "City" shall mean the City of Fort Worth, Texas. 4. "Fund" shall. mean "The Employees ' Retirement Fund of the City of Fort Worth, Texas. " 5. "Board" shall mean the Board of Trustees of the Employees' Retirement Fund of the City of Fort Worth, Texas. -3- 6. "Administrator" shall mean the individual ap- pointed by the City Manager, subject to the approval of the Board of Trustees, to supervise the operation of the Fund. 7. "Members" shah, mean the eligible employees of the City of Fort Worth who are members of the Retirement Fund. 8. "Beneficiary" shall mean any person in receipt of a retirement benefit or any other benefit provided in the ordinance. 9. "Regular interest" shall mean interest at the rate of two per.cerit (2/) per annum, compounded annually, from the end of the Plan year in which each contribution is made up to the end of the Plan year preceding the date upon which such interest becomes payable. I.O. "Retirement benefit" shall mean a pension for life, as provided in the ordinance, payable each year in twelve (12) equal monthly installments beginning as of the date fixed by the Board in accordance with the provisions of this ordinance. 11. "Actuary" shall mean the individual or organiza- tion retained by the City to provide actuarial "evaluations` of the Retirement Fund. 12. "Actuarial tables" shall mean such tables of mor- tality, interest rates, turnover discounts, salary scales, etc. , as shall be used by the Actuary with approval of the Board. -4- 13. "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, total disability or retirement. 14. The masculine pronoun, wherever used herein, shall include the feminine pronoun. 15. "Fiscal year" shall mean the period from October lst of one year through September 30th of the following year. 16. "Prise index" shall mean the annual average for each year ending September 30th of the Consumer Price Index (all items - United States City Average) published monthly by the Bureau of Labor Statistics, U. S. Department of Labor or its successor in function. 17. "Workmen ' s Compensation benefits" shall mean all proceeds received by a member from that insurance extended employees of the City of Fort Worth under the provisions of Article 8309h, R.C.S. of Texas, as amended. SECTION 3. MEMBERSHIP IN THE FUND Membership in the Fund shall be a condition of employ- ment for all eligible employees. No person employed in the future shall become a member of the Fund until he has passed a satisfactory physical examination prescribed by the Board of Trustees. Upon acceptance into the Fund, such new member shall make contributions back to the date of his employment in accordance with the then current schedule of contributions. -5- Firemen who were in the active employ of the City and were members of the Firemen' s Relief and Retirement Fund on the effective date of legislation authorizing the in- clusion of active firemen in this Fund shall be granted pension credits for all years and completed months of service rendered as an employee of the City of Fort Worth prior to said effective date. Employees of the City who were actively at work on October 1, 1952, and who were eligible for membership in the Fund on January 1, 1946, but who at the date of such eligibility rejected membership and who joined the amended Fund as of October 1, 1952, shall receive credit for all prior service except for the period between the date of re- fusal and September 30, 1952. SECTION 4. MEMBERS ' CONTRIBUTIONS Commencing on October 1, 1974, or the effective data of membership, if later, and continuing until the date of his actual retirement or earlier termination of employment, each member shall contribute to the Fund seven and two- thirds per cent (7-2/3/) of his salary. This contribution shall be made notwithstanding that the net compensation paid in cash to such member shall be reduced thereby below the minimum prescribed by law. Each member shall be deemed to consent and agree to deductions made from his compensa- tion; and payment to said member of compensation, less said deduction, shall constitute a full and complete discharge -6- and acquittance of all claims and demands whatsoever for services rendered by such member during the period covered by such payment except as to the benefits provided for by this ordinance. The members ' contribution percentage provided for herein may be raised at any time from seven and two-thirds per-cent (7-2/3/) to a higher amount upon a vote in favor of such raise by seventy-five percent (75%) of the members voting at an election called for that purpose by the Board of Trustees, provided that such raise shall not be effec- tive unless the governing body of the City shall, by ordi- nance or resolution, agree to contribute at least an equal percentage. This paragraph, however, shall not limit the right of the governing body of the City, through its budget appropriation, to contribute an additional amount over and above the members' contributions, plus the cost of adminis- tration of the Fund. SECTION 5. CITY' S CONTRIBUTIONS Commencing on October 1, 1974, the City shall contribute to the Fund an amount equal to eleven and one-half per.-cent (11-1/2%) of the salaries of members. The governing body of the City shall also cause to be included in the budget sufficient funds to pay the cost of the administration of the Retirement Fund, and such appropria- tion shall be in addition to the City' s contribution to the Fund. -7- SECTION 6. CREDITED SERVICE Pension credits shall be granted for all years and completed months of service for which a member of the Fund receives compensation from the City up to the date of his actual retirement, subject to the following regulations pertaining to service breaks: a. Authorized service breaks up to ninety (90) days shall not be deducted from credited service, provided, member contributions are continued during such periods, in which event City contributions shall also be continued. b. Periods of absence in excess of ninety (90) days shall be deducted from credited service, and no contributions shall be made by mem- bers or by the City during such periods. c. An absence of twelve (12) or less consecu- tive months due to layoff or authorized leave shall be permitted without loss of prior service credits a period of absence exceed- ing twelve (12) months [except for bona fide illness or military service as hereinafter provided for] shall cancel all prior service, except, however, if a member is absent for a period exceeding twelve (12) months, he may regain his prior service credits by remaining -8- in active City employment for a period equal to or greater than two (2) times the period of absence or ten (10) years, whichever is less, and repaying the total amount of all contributions withdrawn., plus two per,:ceiit (2/) compound interest from the date of with- drawal to the date of repayment. d. A member who is absent because of bona fide illness shall not lose his eligibility for retirement, disability or death benefits nor suffer loss of prior credited service while so absent, even though such absence exceeds twelve (12) months. Such absences beyond ninety (90) days shall, however, be deducted from years and months of service in computing percentage pension credits and in determining total years of service to be credited in computing a minimum pension. e. A member absent for service in the Armed Forces of the United States, with the excep- tion of those employees involuntarily re- called to active duty in time of a National Emergency, shall be granted service credit for such absence for a period not to exceed two (2) years, provided that any such member shall not have withdrawn his contributions to the Fund. Members involuntarily recalled -9- to active duty in the Armed Forces during a National Emergency shall be granted service credit for such absence provided that such member resumes his employment with the City within one hundred twenty (120) days after date of his first becom- ing eligible for release to inactive duty or discharge, and provided further that such member has not withdrawn his contribu- tions to the Fund. f. For purposes of this section, service for fifteen (15) or more days in any month shall constitute a completed month of service; absence for fifteen (15) or more days in any month shall constitute a completed month of absence. SECTION 7. 1. Normal Retirement A member's normal retirement date shall be the last day of the month in which the earliest of the fol- lowing occurs: a. Member completes thirty--five (35) years of credited service; b. Member reaches age 55 and has com- pleted thirty (30) years of credited service; c. Member reaches age 60 and has com- pleted twenty-five (25) years of credited service, except that female whose latest employment date was -10- prior to October 1, 1971, may retire at age 57 provided she has completed twenty-five (25) years of credited service; or d. Member reaches age 65, except that female member whose latest employment date was prior to October 1, 2971, may retire at age 60.. `', 2. Early Retirement A member who has reached age fifty-five (55) and completed twenty--five (25) years of credited service may retire at the end of any month there- after and receive his accrued pension credits payable in full commencing at normal retirement date or in reduced amount commencing at an earlier date (as provided in Section 9) . 3. Late Retirement It is contemplated that a member shall retire on his normal retirement data. However, prior to retirement date, upon request of the member and with the written approval of proper authority, as hereinafter set forth, said member may con- tinue his employment to a date not to exceed age sixty-eight (68) . A member who thus con- tinues his employment shall continue to make con- tributions to the Fund, and pension credits shall accrue up to the date of actual retirement. Determination of the right of a Member to con- tinue in service beyond his normal retirement shall be made by the City Manager, if the work -11-- being performed by the member is under his supervision, or by the Administrative Board if the work being performed by the member is under the supervision of an Administrative Board of the City. - Such determination, if in the affirmative, shall be certified to the Board of Trustees of the Employees ' Retirement Fund for approval or disapproval. If the Board of Trustees approves, the member may continue his employment so long as he is able to fulfill his duties, subject to annual review by the Board. SECTION 8. COMPENSRTION BASE FOR DETERMINING BENEFITS Pension, death and vested termination benefits shall be based upon the average of a member' s highest five (5) calendar year earnings during employment with the City. SECTION 9. RETIREMENT PENSIONS 1. Pension Commencing On or After Normal Retirement Date A member who retires on or after his normal re- tirement date, or who retires early and re- quests commencement of his pension at normal retirement date, shall receive an annual life pension, the amount of which shall be one and five- sixths perraerit (1-5/6%) of his compensation base multiplied by his total credited service to date -12- of actual retirement, payable on the first day of each month commencing with the month following the last month for which such member receives compensation from the City. 2. pension Commencing at Early Retirement Date A member who retires early in accordance with the provisions of Section 7 and who elects to receive retirement income commencing prior to his normal retirement date shall receive a monthly life pension, the amount of which shall be one and five--sixths per,.oerit (1-5/6%) of his compen- sation base multiplied by his total credited service to date of early retirement, reduced by five--twelfths per,,ceht (5/12/) for each month by which commencement of the pension antedates the member's normal retirement date. Such pension shall be payable on the first day of each month commencing with any month following the last month for which such member receives compensation from the City. 3. Cost of Living Adjustments a. Effective January 1, 1971, all retired mem- bers of the Fund and those entitled to bene- fits as survivors of members thereof will receive a cost-of-living increase in their base pension in accordance with the following table: -13- Members Who Were Retired or Survivors Percentage Increase Who Became Entitled to Benefits of Base Pension On or before Sept. 30, 1966 100% During the year ended Sept. 30, 1967 8% During the year ended Sept. 30, 1968 6% During the year ended Sept. 30, 1969 4% During the year ended Sept. 30, 1970 2% b. Annually, effective January 1, 1972, and on the first day of each January thereafter, a cost-of--living adjustment shall be made on all base pensions of all members of the Fund who have retired, or their survivors who have become entitled to benefits on or before September 30th of any preceding year, by adjusting the base pension up or down by the amount of the change in the price index over the previous year, or by two per.-cent (2%) , whichever is the smaller, provided that in no event shall any member' s pension or any survivor' s benefits be reduced below the base pension. SECTION 10. TOTAL AND PERMANENT DISABILITY PENSION'S 1. Definition of Total and Permanent Disabilit A member shall be considered totally and permanently disabled if: a. He shall become disabled by bodily injury or disease so as presumably to be thereby continuously prevented for life from engag- ing in any occupation or performing any -14- work for remuneration or profit; b. Such disability has existed for at least ninety (90) consecutive days! C. Such disability was not contracted, suf- fered or incurred while the member was en- gaged it, or did not result from his having engaged in, a criminal enterprise, or from his habitual drunkenness or addiction to narcotics, or from self-inflicted injury, or from voluntary or involuntary service in the Armed Forces of the United States (in- cluding the United States Merchant Marine) , any of its allies or any other foreign country; or d. Under the provisions of Article 8306, R.C.S. , as amended, the Industrial Accident Board has rendered a determination that the member is totally and permanently incapacitated and such determination has not been re- versed or set aside on appeal by the courts. 2. Qualification for Disability Pension A member shall qualify for a disability pension as hereinafter provided only after he has been certified to be totally and permanently disabled, in accordance with the definition in Paragraph 1 of this Section, by a duly licensed and prac- ticing physician appointed by the Board. De- termination of the existence of total and perma- -15- nent disability shall be made at the end of a ninety (90) day period from the date such dis- ability is alleged to have commenced, and bene- fits shall not commence until the first day of the month following the month in which such ninety (90) day period ends. The Board shall have the right to have medical examinations made from time to time by a duly licensed and practicing physician to determine whether the disability is continuing. Any disability payment may be discontinued at any time by the Board on proof that the member is not totally or permanently disabled as above defined. The Board determination on all matters concerning the granting, refusing or revoking of a disability payment shall be final and con- clusive on all parties, and no appeal can be made therefrom. No disability benefit coverage shall be provided during a service break in excess of three (3) consecutive months unless the service break was caused by sickness or accident leading to total disability. The disability benefit specified herein shall not be payable during any period for which regular pay or a portion thereof is continued by the City, the State of Texas or any other division of gov- -16- ernment in accordance with the then existing Civil Service Statutes. 3. Total and Permanent Disability from Bodily Injury in Line of Duty If a member becomes totally and permanently dis- abled while in line of duty, he shall receive an annual life pension, the amount of which shall be one and five-sixths per,cent (l-5/6/) of his compensation base multiplied by his total credited service which would have accrued if the member had worked to his normal retirement date, but not less than One Hundred Fifty Dollars ($150.00) per month, provided, however, that such monthly pension shall be offset by any and all Workmen' s Compensation benefits payable, calculated on a monthly basis; and provided further that if any Workmen's compensation bene- fits have been paid in a lump sum as dis- tinguished from weekly, no such monthly pension shall be received by the member until that cer- tain period of months has expired, such period having been determined by dividing the amount of such lump sum payment by the amount of the monthly pension to which the member is entitled. "Total disability, " as that term is used in this paragraph, shall mean total and permanent dis- ablement caused by injury sustained in the course -17- of the operations usual to a member' s employ- ment, and shall include all operations neces- sary, incident or appurtenant thereto or con- nected therewith, whether such operations are conducted at the usual place of employment, or elsewhere, in connection with or in relation to his usual and customary employment. Employ- ment shall be considered as starting at the time an employee reports for work in the morn- ing, ceasing at the time he leaves for lunch, beginning again at the time he returns from lunch, and terminating for the day at the time he leaves in the evening. 4. Disability Not in Line of Duty If a member becomes totally and permanently dis- abled while not in line of duty, he shall re- ceive a monthly life pension, the amount of which shall be one and five-sixths per---cent (1-5/5/) of his compensation base multiplied by his total credited service to date of disability, but not less than Pifty Dollars ($50.00) per month. 5. Recovery from Disability If a disabled member receiving disability bene- fits hereunder is found to be no longer totally disabled upon examination as provided in Para- graph 2 of this Section, his disability payments shall immediately cease. -18- If such member is reemployed by the City im- mediately following certification of re- covery, his Fund membership shall be rein- stated as of the date of such reemployment, with full credited service to date of dis- ability. He shall receive no pension service credits for the period of disability, but such period shall be counted in determining all requirements for length of credited service. If such member is not reemployed by the City immediately following certification of re- covery, he shall be considered as a terminated Fund member and shall have no further interest in the Fund other than a refund 'of any excess of his total contributions, plus regular in- terest, over the total of disability payments made to him; provided, however, that if such member had a vested interest in his pension credits as of the date on which he was certi- fied totally disabled, he shall receive a pen- sion from the later of the date of certifica- tion of recovery or attainment of age fifty- five (55) equal to the amount which would have been payable under the provisions of Section 12 had he terminated his employment on the date his disability pension began. His death benefit thereafter shall be determined in accordance with Section 11. _1g- SECTION 11. DEATH BENEFITS A. Death Benefit for Members Retiring Before April 1, 1963 1. Joint and Survivor Option A member retiring or becoming totally and perma- nently disabled before April 1, 1963, may elect to have his pension reduced in accordance with the following table in order to secure for his eligible dependent, as herein defined, a con- tinuing income after his death: Relative Age of Percentage of Basic Monthly Pen- Dependent to Member sion Payable to Both Parties 15 years younger 68.0 14 years younger 69.4 13 years younger 70.6 12 years younger 72.2 11 years younger 73.6 10 years younger 75.0 9 years younger 76.4 8 years younger 77.8 7 years younger 79.2 6 years younger 80.6 5 years younger 82.0 4 years younger 83.4 3 years younger 84.8 2 years younger 86.2 1 year younger 87.6 Same age 89.0 1 year older 90.4 2 years older 91.8 3 years older 93.2 4 years older 94.6 5 or more years older 96.0 2. Definition of Eligible Dependent An "eligible dependent, " for purposes of the op- tional pension elections herein provided for, is defined as follows -20- a. A married male member may elect only his wife as his dependent under this option. A wife qualifies as a dependent if (1) she is not more than fifteen (15) years younger than her husband, and (2) she has been legally married to him for at least one (1) year. A widow will cease to be an eligible de- pendent if she remarries after the death of the deceased male member. b. A married female member may elect only her husband as her dependent. A husband quali- fies as a dependent if (1) he is not more than fifteen (15) years younger than his wife, (2) he has been legally married to her at least one (1) year, and (3) he is either totally and permanently disabled or has reached age sixty-five (65) . A widower will cease to be an eligible dependent if he remarries after his wife' s death. c. An unmarried member with a legitimate or le- gally adopted child or children may elect only such child or children as his dependent. A child qualifies as a dependent if he either is under age seventeen (17) or became totally and permanently disabled before age seventeen (17) . if a child is more than fifteen (15) years younger than the member, the percentage of monthly pension payable to both parties -21- will be computed by reducing sixty-eight per, cent (680/.) by one and four-tenths per cent (1.4/) for each year by which the age dif- ference exceeds fifteen (15) . Unless dis- abled, a child will cease to be an eligible dependent upon attainment of age seventeen (17) , and in any event will cease to be an eligible dependent upon marriage. d. An unmarried member without a legitimate or legally adopted child or children may elect only his parent or parents as his dependent. A parent qualifies as a dependent if he is either totally and permanently disabled or has reached age sixty-five (65) . 3. Death Benefit Option An eligible dependent of (a) a deceased member whose eligible dependent was receiving benefits when ordinance No. 4430 was adopted, (b) a re- tired member who subsequently dies, or (c) an active member who subsequently dies prior to ex- ercising a Joint and Survivor Option shall have the option of receiving the death benefit provided for prior to the adoption of said ordinance [pay- ment or continuance of the member' s pension for the remaining part of a ten (10) year period fol- lowing the death or retirement of said member, whichever is applicable) or a life annuity [sub- ject to automatic cancellation upon remarriage] computed in accordance with the following tables -22- Relative Age of Percentage of Basic Monthly Dependent to Member Pension Payable to Dependant 15 years younger 43.5 14 years younger 44.0 13 years younger 44.5 12 years younger 45.0 11 years younger 45.5 10 years younger 46.0 9 years younger 46.5 8 years younger 47.0 7 years younger 47.5 6 years younger 48.0 5 years younger 48.5 4 years younger 49.0 3 years younger 49.5 2 years younger 50.0 1 year younger 53.0 Same age 56.0 1 year older 59.0 2 years older 62.0 3 years older 65.0 4 years older 68.0 5 or more years older 71.0 If an eligible dependent child is more than fif- teen (15) years younger than a member, the per- centage of monthly pension payable to such child shall be computed by reducing forty-three and one- half per*ewrit (43.5/) by one-half per-rdwt '(0.5%) for each year by which the age difference exceeds fifteen (15) . 4. General Provisions Election of a Joint and Survivor Option under Paragraph 1 hereof may be made, rescinded or changed by a member at any time prior to the date on which his pension is to commence. Election of a Death Benefit Option under Para- graph 3 must be made by an eligible dependent within three (3) months following a member' s death. -23- Until such election is made, no death benefits shall be payable, and if the dependent fails to make an election before the expiration of the three (3) month period, his right to elect a life annuity shall be irrevocably waived and the death benefit provided for prior to the adoption of ordinance No. 4430 shall be paid. optional pension and death benefit elections shall be made in writing on the form or forms specified by the Board. Proof of age and such other information as may be required for determin- ing the amount of the optional benefit shall be furnished to the Board upon its request. If an eligible dependent dies before the date on which a member' s pension under a Joint and Survivor Option is to commence, the election shall be of no effect, and the member shall be treated the same as though he had not elected an option. If an eligible dependent dies on or after the date on which a member' s pension under a Joint and Survivor Option is to commence, the election shall continue in force, and the amount of the member' s pension shall not be increased thereby. If a widow or widower receiving a pension under one of the foregoing options predeceases a legiti- mate or legally adopted child or children under -24- age seventeen (17) , such child or children will receive the pension until age seventeen (17) . The Board of Trustees of the Employees ' Retire- ment Fund of the City of Fort Worth shall de- termine the dependency of children, and its de- termination in this connection shall be final and conclusive. B. Death Benefit for Active Members and Members Retiring After May 31, 1963 1. While in Line of Duty if a member dies before retirement while in line of duty, the surviving widow or widower shall be entitled to receive a monthly pension, the amount of which shall be seventy--five per_c:ent (75%) of the member's pension, based on the number of years of credited service that would have ac- accrued had the member lived to normal retire- ment date, but not less than one Hundred Dollars ($100.00) ; provided, however, that such monthly pension shall be reduced by any Workmen' s Com- pensation benefits payable to such widow or widower. Each dependent child of such member under age eighteen (18) shall be entitled to receive a Monthly pension, the amount of which shall be Twenty Dollars ($20.00) ; provided, however, that such monthly pension shall be reduced by any Work- men' s Compensation benefits payable to such de- pendent child. -25- The combined maximum monthly pension payable to a surviving widow or widower and one or more children eligible to receive a benefit hereunder shall be either One Hundred Fifty Dollars ($150.00) or the member' s accrued pension projected to normal retirement date, whichever is greater; provided, however, that such monthly pension shall be reduced by the amount of any Workmen' s Compensation benefits payable to such surviving widow or widower and one or more children eligible to receive a benefit. in the event there are de- pendent children who are entitled to receive Twenty Dollars ($20.00) per month hereunder, and in the event the total payments to the dependent children and widow or widower would exceed the combined maximum monthly pension payable, then and in that event the pension of the widow or widower shall be reduced so that the sum of the monthly payment to each dependent child of Twenty Dollars ($20.00) shall not exceed the combined maximum monthly pension payable. When a de- pendent child receiving a benefit hereunder shall attain the age of eighteen (18) years, die or marry, the Twenty Dollar ($20.00) monthly benefit there- after shall be added to the pension of the widow or widower, but in no event shall the monthly pen- sion of the widow or widower exceed either seventy- five per merit (75%) of the member' s accrued monthly -26- pension projected to normal retirement date or One Hundred Dollars ($100.00) , whichever is greater; provided, however, that such monthly pension shall be reduced by the amount of any Workmen's Compensation benefits payable to such widow or widower. if a member who dies while in line of duty leaves no widow or widower or children eligible to re- ceive a benefit hereunder but is survived by a dependent parent or parents, such dependent parents or the surviving dependent parent shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per:::e;eht (75%) of the member's accrued pension projected to normal retirement date, but not less than, One Hundred Dollars ($100.00) ; provided, however, that such monthly pension shall be reduced by the amount of any Workmen' s Compensation benefits payable to such dependent parent or parents, or the surviving dependent parent or parents. 2. While Not in Line of Duty if a 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 per�,eeht (75%) of the member' s accrued pension, but not less than Fifty Dollars ($50.00) . -27- Each dependent child of such member shall be entitled to receive a monthly pension, the amount of which shall be Twenty Dollars ($20.00) . The combined maximum monthly pension payable to a surviving widow or widower and one or more children eligible to receive a benefit hereunder shall be either Fifty Dollars ($50.00) or the member' s accrued pension, whichever is greater. In the event the combined maximum monthly pen- sion payable is the member' s accrued pension and there are dependent children entitled to receive Twenty Dollars ($20.00) each, and in the event the total of payments to the dependent children and the widow or widower would exceed the member' s accrued pension, then and in that event the pen- sion of the widow or widower shall be reduced so that the sum of the monthly payment under said pension and the monthly payment of Twenty Dollars ($20.00) to each dependent child shall not exceed the member' s accrued pension; provided that in no event shall the pension of the widow or widower be reduced to less than Thirty Dollars ($30.00) per month. In the event that, after the reduction of the pension of the widow or widower as herein- above provided, the sum of said pension and the payments to eligible dependent children exceeds the member's accrued pension, the pension of the widow -28- or widower shall be Thirty Dollars ($34.00) and the balance up to the amount of the member' s accrued pension shall be distributed in equal portions among the eligible dependent children, up to the maximum of Twenty Dollars ($20.00) per dependent child as herein provided. when a dependent child receiving a benefit hereunder shall attain the age of eighteen years, die or marry, the monthly benefit to that child shall be redistributed in equal portions among the remaining eligible dependent children up to the maximum monthly payment of Twenty Dollars ($20.00) per dependent child. Any excess thereafter shall be added to the pension of the widow or widower, provided that in no event shall the monthly pension of the widow or widower exceed seventy-five perYevat (75/) of the member' s accrued pension. In the event the combined maximum monthly pension payable is Fifty Dollars ($50.00) , the pension of the widow or widower shall be Thirty Dollars ($30.00) and the balance shall be divided equally among the eligible dependent children. When the last eligible dependent child either attains the age of eighteen (18) years, dies or marries, said balance shall be added to the pension of the widow or widower. If a member who dies before retirement but not in line of duty leaves no widow or widower or children -29- eligible to receive a benefit hereunder, but is survived by a dependent parent or parents, such dependent parents (or the surviving dependent parent) shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per-ceFt (75%) of the member' s accrued pension, but not less than Fifty, Dollars ($50.00Y . 3. After Retirement Upon the death of a retired male member (or a re- tired female member with a dependent husband) , the surviving widow or widower shall be entitled to receive a monthly pension, the amount of which shall be seventy-five per,?eent (75%) of the pension being paid to the member, provided that the member and surviving widow or widower were married for at least one (1) year prior to the member' s retirement. Each dependent child of such deceased, retired male member (and each dependent child of such deceased retired female member) shall be entitled to re- ceive a monthly pension, the amount of which shall be Twenty Dollars ($20.00) . The combined maximum monthly pension payable to a surviving widow or widower and one or more children eligible to receive a benefit hereunder shall be an amount not to exceed the pension being paid to the member at his death. If a deceased member leaves no widow or widower or children eligible to receive a benefit hereunder but -30- is survived by a dependent parent or parents, such dependent parents (or the surviving dependent parent) shall be entitled to receive a monthly pension, the amount of which shall be seventy-- five per=cait (75/) of the pension being paid to the member at his death. 4. After Vested Termination If a terminated member entitled to a pension under the provisions of Section 12 dies before his pension commences, his estate shall receive an amount equal to his total contributions to the Fund, plus regular interest; provided, however, that if he was eligible for early retirement on the date as of which his employment terminated, his eligible dependents shall receive the benefit specified under Paragraph 3 of this section, based on the pension to which he would have been entitled as of the date of his death. if such terminated member dies after his pension commences, his eligible dependents shall receive the benefit specified under Paragraph 3 of this sec- tion. S. General Provisions If a deceased member leaves no widow or widower, children or dependent parents eligible to receive a benefit hereunder, his total contributions, plus regular interest, less any amount previously paid to him because of disability, shall be paid to his estate. -31- Payments to a child shall be made whether or not a didow survives and shall continue after the death of a widow, but shall cease upon the earliest of such child' s death, marriage or attainment of age eighteen (18) . Payment to a widow, widower or parent shall cease upon the earlier of such person' s death or marriage. After all payments cease, any excess of the member' s total contribu- tions, plus regular interest, at date of death ' over disability and/or death benefits paid shall be paid to his estate. Death benefit coverage during service breaks in excess of ninety (90) days shall be limited to members who are absent due to service-connected injury incurred while in line of duty. Benefits hereunder shall be payable on the first day of each month commencing with the month fol- lowing the one in which the member' s death occurs. The Board shall determine all questions of de- pendency, and their determination shall be final and conclusive on all parties. All unmarried, legitimate and legally adopted children under the age of eighteen (18) years, in the absence of a determination to the contrary, shall be considered dependent. -32- SECTION 12. TERMINATION BENEFITS AND VESTING Any member who is voluntarily or involuntarily separated from the service of the City before he com- pletes three (3) years of credited service shall be en- titled to receive the amount of his contributions without interest, less Twenty--five Dollars ($25.00) . After three (3) but before completion of ten (10) years of credited service, the termination benefit shall be the amount of the member' s contributions, plus regular interest, less Twenty-five Dollars ($25.00) . In cases where the position held by the member has been abolished, the Twenty--five Dollar ($25.00) charge shall not be deducted. No addi- tional assessment shall be made against employees whose contribution refund does not equal Twenty-five Dollars ($25.00) . A member who resigns or is terminated after complet- ing ten (10) years or more of credited service shall be entitled to receive a vested right of one hundred per,-c-ett (100%) of the amount of pension earned to date of termina- tion, payable in full at age sixty-five (65) , or age sixty (60) if a female whose latest employment date was prior to October 1, 1971, or in reduced amount commencing at age fifty-five (55) , said reduction to be five-twelfths per cent (5/120. for each month by which commencement of the pension antedates age sixty-five (65) , or age sixty (60) if female whose latest employment date was prior to October 1, 1971. -33- Any terminating member with a vested right may elect to receive a refund of his contributions, plus regular interest, in lieu of retirement benefits either at date of termination or at any time thereafter prior to commence- ment of retirement income, but by so doing, he shall for- feit all rights under the Fund and thereafter be entitled to no further benefits hereunder. SECTION 13. PAYMENT OF BENEFI'T'S The Treasurer of the City of Fort Worth shall be ex- officio the Treasurer of the Fund and shall: a. Act as official custodian of the cash and securities belonging to the Fund and pro- vide adequate safe deposit facilities for the preservation of such securities subject to the order of the Board; b. Receive all items of cash belonging to the Fund, including contributions of members, collect the interest on and the principal of all securities belonging to the Fund as such interest and principal become due and payable, deposit all such amounts in a special trust fund for the account of the Fund and submit a monthly report to the Fund of all such transactions; and c. Make payments for purposes specified in this ordinance in accordance with vouchers submitted pursuant to authorization of the Administrator. The Treasurer shall have the same responsibility for assets of the Fund in his possession as for funds of the City under his control, and all assets of the Fund shall be completely segregated and earmarked as belonging to the Fund. Benefits granted hereunder shall become payable only on or after the date of each individual employee' s acceptance -34- as a Fund member. Except for the adjusted retirement bene- fits granted under Ordinance No. 2999 to members who re- tired between January 1, 1946, and October 1, 1952, nothing herein contained shall be construed to authorize any benefit payments or adjustments of any kind to members of the Fund, employees of the City, or beneficiaries thereof on account of any death, retirement, disability or termination which occurred prior to the date of this ordinance. In any case under the terms of this ordinance, where benefits are payable to a child and the Board determines that such child is unable or lacks the proper discretion to handle the benefits, the Board may direct such benefits to be paid -to the child' s natural or legal guardian, who shall expend such benefits for the best interest of the child. SECTION 14. ACCOUNTS TO BE MAINTAINED The assets of the Retirement Fund shall consist of two (2) separate unallocated accounts as follows: a. An Active Reserve Account to include City and employees' contributions, plus earned income thereon. Contribution refunds to terminated members shall be paid from this account upon receipt by the City Treasurer of the Administrator' s authorization as pro- vided in Section 16. b. A Retirement Reserve Account to consist of annual transfers from the Active Reserve -35- Fund to provide retirement, death, disability and vested termination benefits, such bene- fits being paid from this account as authorized by the Administrator in accordance with Section 16. SECTION 15. ANNUAL ACTUARIAL VALUATIONS The Board shall retain an Actuary for the purpose of providing annual valuations of the Retirement Fund, properly certified "to the Board. The Actuary shall be appointed by the City Council upon recommendation by the Board. The actuarial tables used by the Actuary shall assume such in- terest, mortality, turnover and other rates as the Actuary, with Board approval, shall from time to time approve. SECTION 16. ADMINISTRATION 1. Board of Trustees The Fund created by this ordinance is a trust. This Fund shall be administered by a Board to be known as the "Board of Trustees of the Em- ployees ' Retirement Fund of the City of Fort Worth. " The Board shall consist of seven (7) trustees designated as Place 1, Place 2, Place 3, Place 4, Place 5, Place 6 and Place 7, respec- tively, Each trustee shall serve for a term of two (2) years. Trustees shall be selected as follows: -36- a. Employee Members. Four (4) trustees who are members of the Fund shall be elected by the employees: of the City of Fort Worth who are also members of the Fund, and said four (4) trustees shall serve in Places 1, 2, 6 and 7, respectively. The trustees presently serving in Places 2 and 7 shall complete their cur- rent terms which end on September 30, 1964. The trustees presently serving in Places 1 and 6 shall complete their current terms which end on September 30, 1965. At the ex- piration of each such term and thereafter, two (2) trustees who are members of the Fund shall be elected, as aforesaid, before Octo- ber 1 of each year to serve for a term of two (2) years, commencing the first day of October of the election year. No department of the City shall have more than one (1) em- ployee as a member of the Board of Trustees at any one time. b. Method of Electing Employee Members. Before July 1 of each year the City Manager shall appoint a nominating committee consisting of one member each from eight of the departments of the City. The said nominating committee shall then select four nominees, respectively, for each place on the Board which shall be- come vacant on September 30 of the said year. No two of the nominees for any place shall be selected from the same department of the City. In addition to the nominees selected by the nominating committee, other nominees may be selected by petition containing the signatures =P:E at least fifty members of the Fund, except -that no petition will be accepted which would result in more than one employee from any de- partment of the City being on the Board of Trustees should the nominee be elected. The names of the nominees shall be furnished the Administrator prior to August lst of each year. The Administrator shall prepare a ballot list- ing the nominees for each of the two places._in alphabetical order according to their surname. These ballots shall be made available to the Fund members on the 1st pay-day in September in such manner as to allow each member an oppor- tunity to vote by secret ballot. The nominee for each place who receives the highest number of votes shall be declared elected to the Board of Trustees provided, however, that should such procedure result in more than one member of any department being elected to the Board, then and in that event the election shall be decided as follows: (1) of the two nominees -37- who were apparently elected and who are mem- bers of the same department of the City, the nominee who received the higher total number of votes shall be declared elected to the Board; and (2) the other such nominee shall be held to be disqualified from serv- ing on the Board and the nominee for the same place on the Board who received the second largest number of votes shall be declared to be elected to the Board of Trustees. Va- cancies which occur during the term in the places of employees ' members shall be filled by the Board for the unexpired term or until the next employee election, whichever shall first occur. c. Members Appointed,..b y_ . Council. Two (2) trustees „_,,,__. shall be appointed by the governing body of the City of Fort Worth to serve in Places 3 and 4, respectively. The trustee presently serving in Place 4 shall complete his current term which ends on September 30, 1964. The trustee presefttly serving in Place 3 shall -complete his current term which ends on Sep- tember 30, 1965. At the expiration of each such term and thereafter, the governing body of the City of Fort Worth shall appoint trustees to Places 3 and 4 to serve for a term of two (2) years, commencing on the lst day of Octo- ber of the year of appointment. d. City Secretary to Serve in Place 5. The City Secretary of the City of Fort Worth shall serve in Place 5. It is the purpose of this ordinance that the terms of the members of the Board of Trustees be so regulated that the Board shall not consist entirely of newly elected or ap- pointed members at any one time. The members of the Board of Trustees shall remain in office until their successors are duly elected or appointed. The Board shall serve without remuneration and shall meet not less than once a month, and may meet at any time that the business of the Fund shall require it. The Board shall elect its own chairman, and he shall have the power -38- to call a meeting at any time that is necessary in order to carry out the business of the Board. Four (4) members of the Board shall constitute a quorum to transact any business, but it shall require not less than four (4) affirmative votes to carry any matters before the Board. The Board shall have full power to make any and all rules and regulations pertaining to the Retirement Fund not inconsistent with this ordinance, the Constitution and laws of the State of Texas or local civil service regulations. The Board shall be the trustee of the Fund and shall have full power, at its sole discretion, to invest and re- invest the assets of the Fund, including undistributed in- come. In acquiring, investing, reinvesting, exchanging► retaining, selling, supervising and managing the funds held hereunder, the Board shall exercise the judgment and care under the circumstances then prevailing which men of ordi- nary prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to specula- tion but in regard to the permanent disposition of their funds, considering the probable income therefrom as well as the probable safety of their capital. Within the limitations of the foregoing standard, the Board is authorized to acquire and retain every kind of property, real, personal or mixed, and every kind of investment, specifically including but not by way of limitation, bonds, debentures and other corporate obligations, and stocks, preferred or common, which men of ordinary prudence, discretion and intelligence acquire or re- -39- tain for their own account; provided that no securities of any one corporation shall ever be purchased if such pur- chase would result in the total securities of such corpora- tion held by the Fund having a value in excess of five per cent (5/) of the total value of the Fund, nor shall more than five per cent (5/) of the outstanding securities of any one corporation ever be purchased for or retained as an asset of the Fund. The Board of Trustees of the Fund are specifically prohibited from purchasing for the Fund bonds, warrants, obligations or securities of the City of Fort Worth. The provisions of the Texas Trust Act are expressly incorporated in this ordinance by reference the same as if set out herein verbatim. in administering the Fund, the decisions of the Board shall be final and conclusive. The Administrator shall make available to the Board of Trustees all information and records pertaining to the Fund requested by the Board in the form specified by the Board. 2. Administrator The Administrator, who shall supervise the ad- ministrative affairs of the Retirement Fund, shall be appointed by the City Manager subject to the approval of the Board of Trustees. The City Manager shall include in his annual budget recommendations for the number of personnel re- quired to assist the Administrator in carrying out his work. The duties of the Administrator -40- shall include, but not necessarily be limited to, the following: a. Maintaining all records necessary in the administration of the Fund- and the disbursement of benefits therefrom; b. Determining eligibility for benefit payments; C. Computing benefits payable; d. Authorizing the City Treasurer to dis- burse benefits; and e. Advising members annually of their stand- ing in the Fund with respect to benefits thereunder. 3. Investment Review Committee The City Council shall appoint an Investment Review Committee consisting of three (3) qualified persons to be selected from the Trust Departments of the banks of the City of Fort Worth. Such persons shall be experienced in securities and investment matters. The Invest- ment Review Committee shall be appointed for a two (2) year term. Such committee shall: (a) review the investments of the Fund to determine their suitability and desirability for the Fund; (b) review the investment procedures and policies being pursued by the Board in the administration of the Fund; and (c) submit an annual report of its findings and recommendations to the governing body of the City of Fort Worth. Such annual re- port shall be made available to the Board and each of the members of the Fund. -41- 4. Administrative Expenses Expenses of the Board or the Administrator neces- sary for the operation of the Fund shall be paid from the Retirement Administration budget appro- priation and must be recommended by the City Man- ager and approved by the City Council. SECTION 17. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS The City of Fort Worth shall never be held liable or responsible for any claim or asserted claim for benefits under the provisions of this ordinance, but all claims shall be paid from the funds for which provision has been specifically made herein. No portion of this Fund shall, at any time before or after its disbursement, be held, seized, taken, subjected to or detained or levied upon by virtue of any execution, attachment, garnishment, injunction or other writ, order or decree, or any process or proceedings whatsoever issued out of or by any court for the payment or satisfaction, in whole or in part, of any debt, damage, claim, demand or judgment against any persons entitled to the benefits of this Fund, nor shall said Fund or any claim thereto be, directly or indirectly, assigned or transferred, and any attempt to transfer or assign same shall be void. SECTION 18. AMENDMENT OF ORDINANCE With the exception of the sections relating to contri- butions to the Fund by members and by the City, the City -42- Council, consistent with the Constitution and laws of the State and the Charter of the City of Fort Worth, shall have the power and authority to amend any or all of the teras and provisions of this ordinance without submitting such amendment or amendments at an election of the quali- fied voters thereof entitled to vote on the question of the issuance of tax-supported bonds. SECTION 19. CONTROLLING POWER OF ORDINANCE The provisions of this ordinance shall be cumulative of and in addition to all other ordinances of the City of Fort Worth relating to pensions, which ordinances are here- by preserved and continued in force and effect; provided, however, that in the event of any conflict, the provisions of this ordinance shall control. SECTION 20. VALIDITY OF ORDINANCE if any provision, section, part, subsection, sentence, clause, phrase or paragraph of this ordinance be declared invalid or unconstitutional, the same shall not affect any other portion or provision hereof, and all other provisions shall remain valid and unaffected by any invalid portion, if any, and the City Council now says that if it had known at the time of the passage of this ordinance that any por- tion of said ordinance was invalid, it would not have adopted such invalid part. -43- SECTION 21. PREREQUISITES TO ORDINANCE The City Council finds that all acts, conditions and things required by provisions of the Constitution of Texas and the Charter and Ordinances of the City of Fort Worth precedent to and in the adoption of this ordinance have been done, have happened and have been performed in proper and lawful time. SECTION 22. LIMITATION OF LEGAL RIGHTS By reason of the expansion of the benefits and cover- age herein and the additional burdens placed upon the City of Fort Worth and the Fund, it is expressly provided that no member of the Employees ' Retirement Fund of the City of Fort Worth shall have the right to sue said City with respect to this Fund for total disability sustained in line of duty, as heretofore: defined; and by virtue of becoming a member he or she accepts the benefits provided by the Employees ' Re- tirement Fund of the City of Fort Worth in lieu of any al- leged right at law to sue the City or this Fund for damages. No heir or legal representative of a member who is injured in line of duty, which injury results in death, shall have the right to sue the City of Fort Worth for damages by rea- son thereof, but such heir or legal representative shall ac- cept the benefits provided under the Employees ' Retirement Fund Ordinances of the City of Fort Worth in lieu of such right to sue for damages in a court of competent jurisdic- tion. -44- SECTION 23. BENEFITS NOT RETROACTIVE It is the intention of the City Council of the City of Fort Worth that the increased retirement benefits here- in provided for shall apply solely to members retiring on or after the effective date of this ordinance and that increased death and total disability benefits shall only apply to persons dying or becoming totally disabled from and after the effective date of this ordinance. It is hereby declared to be the intention of the City Council that no retroactive effect be given to the increased re- tirement, death or total disability provisions hereof. SECTION 24. EFFECTIVE DATE This ordinance shall be in full force and effect from and after the date of its adoption and it is so ordained. Adopted this 2;/ day of A0—akLfMbe r . A. D. 1974. _Mayor-of the City of Fort Worth', '� Texas ATTES Ci yecretary of the City o Fort Worth, Texas APPROVED AS TO FORM AND LEGALITY: City Attorney of the City of Fort Worth, Texas -45-