Loading...
HomeMy WebLinkAboutOrdinance 15862 .a ORDINANCE NO I ~ ~~ AN ORDINANCE AMENDING ORDINANCE NO 13543, AS AMENDED BY ORDINANCE NOS. 13672, 13673, 13674, AND 13842 CODIFIED AS CHAPTER 2, ARTICLE VI, DIVISION 1 ENTITLED `EMPLOYEES RETIREMENT FUND" OF THE CODE OF THE CITY OF FORT WORTH (1986), A5 AMENDED, WHICH ORDINANCES ESTABLISH A RETIREMENT SYSTEM, RETIREMENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THE CITY OF FORT WORTH, TO PROVIDE FOR THE CONTRIBUTIONS MADE ON BEHALF OF A REINSTATED EMPLOYEE BY THE EMPLOYEE AND THE CITY TO THE FUND BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS That Ordinance No 13543 as previously amended by Ordinance Nos. 13672, 13673 13674 and 13842, codified as Chapter 2, Article VI, Division 1 of the Code of the City of Fort Worth (collectively the `Retirement Ordinance '), is hereby amended as follows SECTION 1 That Chapter 2, Article VI, Division 1 Section 2 203 ("Members contributions") of the Retirement Ordinance is amended by adding the language m bold and deleting the language stricken through as follows Sec 2 203 Members contributions (a) 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 seven and forty three one hundredths (7 43) percent of their earnings and all other members shall contribute six and ninety-five one-hundredths (6 95) percent of their earnings. Effective for pay periods ending after April 1 1999 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. 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 m this section on any payment made by the city to the employee as back pay less interim earnings, if any 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 m section 2 205(a)(4) of this Article These contributions 1 shall be made even if to do so would reduce a member's net cash compensation below the minimum wage prescribed by law 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. (b) The contribution percentage of all members may be raised at any time from the amount stated in this section to a higher amount, as regulated by Article 6243k of the Texas Revised Civil Statutes as amended, upon a vote m the favor of such raise by seventy five (75) percent of only the affected members voting at an election called for that purpose by the board or the city council, provided that such raise shall not be effective unless the city council shall, by ordinance or resolution, also agree that the city shall increase its contribution to the fund by at least an equal percentage increase. Notwithstanding the preceding sentence, the city shall not have to increase its contributions to the fund if an increase m member contributions occurs m connection with the conversion of the retirement ordinance to a `pick up plan within the meamng of Code Section 414(h) and the increase m member contributions is, m the aggregate, substantially offset by a decrease in the federal income taxes payable by members due to the conversion to a pick-up plan. SECTION 2. That Chapter 2, Article VI, Division 1 Section 2 204 ("City's contributions") of the Retirement Ordinance is amended by adding the language m bold and deleting the language stricken through as follows Sec 2 204 City's Contributions. For police officer members only effective October 1 1996 the city shall contribute to the fund mne and seventy-eight one hundredths (9 78) percent of their earnings, effective October 1 1997 the City's contribution shall increase to ten and thirty four one hundredths (10.34) percent; effective October 1 1998 the city's contribution shall increase to ten and mne-tenths (10 9) percent; and effective October 1 1999 the city's contribution shall increase to eleven and forty six one-hundredths (11 46) percent. For all other members, effective October 1 1996 the city shall contribute to the fund mne and six-one hundredths (9 06) percent of their earnings, effective October 1 1997 the city s contribution shall increase to rime and sixty-two one hundredths (9 62) percent; effective October 1 1998 the city's contribution shall increase to ten and eighteen one- hundredths (10 18) percent; and effective October 1 1999 the city's contribution shall increase to ten and seventy four one hundredths (10 74) percent. 2 Notwithstanding the foregoing, city contributions 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 2 203 shall not limit the right of the city council, through its budget appropriation, to contribute an additional amount over and above the members contributions, m accordance with article 6243k of the Texas Revised Civil Statutes, as amended. 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 m 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 m section 2 203 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 m section 2 205(a)(4) of this Article. Effective for pay periods ending after April 1 1999 the required member contributions described m section 2 203(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 members and m 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. SECTION 3 That Chapter 2, Article VI, Division 1 Section 2 205 ("Credited service') of the Retirement Ordinance is amended by adding the language m bold and deleting the language stricken through as follows Sec 2 205 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 m excess of ninety (90) consecutive calendar days without pay shall be 3 deducted from credited service, and no contributions shall be made by members or by the city dunng such penods. (3) An absence of any penod shall be permitted without loss of pnor service credits, unless the member receives a distribution of his or her total contributions, plus regular interest; any penod of absence shall cancel all prior 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 pnor service credits by repaying the total amount of all contributions withdrawn, plus regular interest thereon (at the regular interest rate m effect on the date of repayment) from the date of withdrawal to the date of repayment, pursuant to policies adopted by the board under one of the two following options (a) Repay m a single lump sum payment within ninety (90) days of reemployment, or (b) Repay through a payroll deduction payback plan which commences wrthm ninety (90) days of reemployment, and provides that regular interest will be charged throughout the payback penod and that the repayment period will not exceed seven (7) years. A rehired member who does not timely elect one of these two options and timely repay the pnor contributions (plus regular interest) will waive his or her nght to pnor service credits. An existing rehired member on the date this provision is added to the retirement ordinance shall have until October 31 1999 to elect one of the above repayment options or waive his or her nght to prior service credits. (4) Effecrive on or after December 12, 1994 any member who is reemployed by the city upon completion of service m the uniformed services (wrthm the hme frame provided under the Uniformed Services Employment and Reemployment Rights Act of 1994 as amended), shall be granted service credit for such umfonned 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 penod of uniformed service. Such payment must be made dunng the period which commences with the date of reemployment by the city and whose duration is three (3) times 4 .~ the penod of the member's service m 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 ansing from the involuntary termination shall be granted all service credits 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 lus or her credited service, as defined herein and subject to the provisions of section 2 205(a), above any hours of accumulated sick leave and/or unused mayor medical leave, as recorded m 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 mayor medical leave shall not be taken into account to increase the pension of a member receiving an m-Ime-of--duty disability pension under section 2 211(d) For credited service purposes, such accumulated sick leave hours and/or unused mayor 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 mayor 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 iri whole numbers and/or a decimal fraction of a month, 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 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 0 50 or greater then an additional month of credited service shall be provided for such decimal value. The addition of such accumulated sick leave and/or unused mayor medical leave to credited service shall not be applied toward determination of retirement eligibility but only toward calculation of retirement benefits. 5 SECTION 4. The Mayor and Council Communication ("M & C") which is presented contemporaneously with this ordinance is hereby expressly incorporated herein by reference for further clarification and explanation of the purposes and intent of the Council m their adoption of this ordinance SECTION 5. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, which shall remain in full force and effect, except where the provisions of this ordinance are in 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 6. 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 unconst~tuhonal phrase, clause, sentence, paragraph or section. 6 SECTION 7 The Crty Secretary of the City of Fort Worth is hereby directed to engross .and enroll this ordinance by copying the caption and Sections 1 and 2 above into the minutes of the City Council and by filing the ordinance m the ordinance records of the Crty SECTION 8. This ordinance shall take effect and be m full force and effect following its adoption by the Crty Council. AND IT IS SO ORDAINED ADOPTED -~ ~~ EFFECTIVE APPROVED AS TO FORM AND LEGALITY G~~ ~ O~ By C lyn McFatndge Assistant City Attorney 7 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 2/10/2004 Ordinance No 15862 DATE Tuesday February 10 2004 LOG NAME 12REINSTATECONT REFERENCE NO *G-14251 SUBJECT Amendment of Ordinance No 13543 as Amended by Ordinance Nos 13672 13673 13674 13842 14641 and 15334 Codified as Chapter 2 Article VI Division 1 Entitled Employees Retirement Fund of the Code of the City of Fort Worth to Modify Employee and City Contributions to the Retirement Fund Upon Reinstatement of Employee Following Disciplinary Termination RECOMMENDATION It is recommended that the City Council adopt the attached ordinance amending Ordinance No 13543 as amended by Ordinance Nos 13672 13673 13674 13842 14641 and 15334 codified as Chapter 2 Article VI Division 1 entitled 'Employees Retirement Fund" of the Code of the City of Fort Worth to modify the employee and City contributions to the retirement fund upon reinstatement of an employee following his/her disciplinary termination DISCUSSION The Retirement Board seeks to modify the employee and City contributions to the retirement fund when an employee is reinstated as a result of an appeal of his/her disciplinary termination When a terminated employee is reinstated with back pay pursuant to an order of a court, the Civil Service Commission the Disciplinary Appeals Board or otherwise the City may be entitled to an offset for wages earned by the employee while he/she was not employed by the City This amendment provides that in the event a back pay award is offset by the employee s interim earnings, normal withholdings will occur for both the City and the employee on any actual payment to the employee (the net payment) and the City will make the contribution on the gap (the value of the interim earnings) for both the City and the employee FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon adoption of the attached ordinance this action will require no immediate expenditure of City funds The Plan actuary has found that there will be no additional cost to the fund associated with this amendment. TO Fund/AccountlCenters FROM Fund/AccountlCenters Submitted for City Manager's Office by Charles Boswell (6183) Originating Department Head David Yett (7623) Additional Information Contact: Carolyn McFatridge (7612) Logname 12REINSTATECONT Page 1 of 1