HomeMy WebLinkAboutOrdinance 18409-12-2008ORDINANCE NO 18409-12-2008
AN ORDINANCE AMENDING CHAPTER 2, ARTICLE VI, DIVISION 1,
ENTITLED `EMPLOYEES RETIREMENT FUND OF THE CODE OF
THE CITY OF FORT WORTH (1986), AS AMENDED, AMENDING
SECTION 2-207 TO PROVIDE THAT THE EARNINGS CAP ON THE
COMPENSATION BASE FOR DETERMINING BENEFITS ONLY
APPLIES TO FUTURE HIRES AND EMPLOYEES WHO WERE NOT
VESTED ON OCTOBER 23, 2007 PROVIDING THAT THIS
ORDINANCE IS CUMULATIVE PROVIDING A SEVERABILITY
CLAUSE PROVIDING THAT ALL CONDITIONS PRECEDENT FOR
THE ADOPTION OF THIS ORDINANCE CLAUSE AND PROVIDING AN
EFFECTIVE DATE
WHEREAS the City of Fort Worth Crty Council ("City Council ') adopted
Ordinance No 13543 as amended by Ordinance Nos. 13672, 13673 13674 13842,
14641 15334 15528 15862, 16967-OS-2006 and 169969-OS-2006 and as codified as
Chapter 2, Article VI, Division 1 of the Code of the Crty of Fort Worth, collectively
called the `Employees Retirement Fund Ordinance" and
WHEREAS, on October 23 2007 the Crty Council amended the Section 2 207
of the Employees Retirement Fund Ordinance to provide an earnings cap on the
compensation base for determining retirement benefits, and
WHEREAS on Apnl 8 2008, the Texas Attorney General issued an opinion that
the earnings cap was unconstitutionally applied to employees who were vested on
October 23 2007 and
WHEREAS, the Crty Council is not in agreement with the opinion of the
Attorney General, but believes it would be in the best interest of the City to accept the
Attorney General s ruling on this issue.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS
SECTION 1.
That Chapter 2, Article VI, Division 1 Section 2 207 ("Compensation base for
determining benefits") is amended by adding subsection (c) as follows
(c) Subsection (b) only applies to employees hired after October 23
2007 and employees who had less than five years of service as
of October 23 2007
SECTION 2
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 m direct conflict with the provisions of such ordinances and such Code, m
which event conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 3
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 ~unsdiction, 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 m this ordinance of any such unconstitutional phrase,
clause, sentence, paragraph or section.
SECTION 4
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 m proper and lawful time.
SECTION 5
This ordinance shall be in full force and effect from and after its adoption.
ADOPTED this 16th day of December 2008
~lI`'~
Marty Hendnx
City Secretary
APPROVED AS TO FORM AND LEGALITY
Assistant city Attorney
City of Fort Worth, Texas
Mayor and Council Communication
~.. __ :~~
COUNCIL ACTION Approved on 12/16/2008 Ord. No. 18409-12 2008
DATE Tuesday December 16 2008 __.,_ \
LOG NAME 120VERTIME REFERENCE NO G-16399
SUBJECT
Adopt Ordinance to Amend Chapter 2 Article VI Division 1 Employees Retirement Fund Section
2 207 of the City Code to Make the Cap on the Amount of Pensionable Earnings Considered in the
Compensation Base for Determining Benefits Applicable to Employees Hired after October 23
2007 and Employees Who had Less than Five Years of Service as of October 23 2007
RECOMMENDATION
It is recommended that Council adopt the attached ordinance amending Section 2 207 'Compensation base
for determining benefits of the City Code to make the cap on the amount of pensionable earnings
considered in the compensation base for determining benefits applicable to employees hired after October
23 2007 and employees who had less than five years of service as of October 23 2007
DISCUSSION
On October 23 2007 the City Council adopted an ordinance placing a 12 percent cap on the pensionable
earnings used in the compensation base for determining pension benefits Shortly thereafter State
Representative Phil King requested that the State Attorney General issue an opinion on the constitutionality
of the City's ordinance In 2008 the Attorney General issued a legal opinion that the 12 percent cap was
constitutional as it applied to future hires and non-vested employees but was unconstitutional as it applied
to vested employees
Although staff disagrees with the opinion of the Attorney General staff believes it is in the best interest of
the City to accept the opinion of the Attorney General on this issue and to amend the ordinance to make it
applicable only to employees hired after October 23 2007 and employees who had less than five years of
service as of October 23 2007
FISCAL INFORMATION/CERTIFICATION
The Financial Management Services Director certifies that this ordinance will have no material effect on City
funds
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office
Originating Department Head
Additional Information Contact:
Karen Montgomery (6222)
David Yett (7606)
Laetitia Coleman Brown (6639)
Logname 120VERTIME
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