HomeMy WebLinkAboutOrdinance 13543ORDINANCE NO.
AN ORDINANCE AMENDING ORDINANCE NOS. 2999, 4060, 4250, 4304, 4354, 4430,
4860, 4861, 4873, 4875, 5226, 5259, 6393, 6556, 7056, 7317, 7875, 8674, 8843, 9247, 9532,
10081, 10291, 10369, 10385, 10564, 10607, 10679, 11126, 11238, 11401, 11412, 11558, 11608,
11716, AND 12686 CODIFIED AS CHAPTER 2, ARTICLE VI, DNISION 1, ENTITLED
"EMPLOYEES' RETIREMENT FUND," OF THE CODE OF THE CITY OF FORT WORTH
(1986), AS AMENDED, WHICH ORDINANCES ESTABLISH AND PROVIDE FOR A
RETIREMENT SYSTEM, RETIREMENT PLAN AND BENEFITS THEREUNDER FOR
EMPLOYEES OF THE CITY OF FORT WORTH, PROVIDING FOR A RESTATEMENT OF
THE RETIREMENT ORDINANCE, INCLUDING REORGANIZATION OF THE
RETIREMENT ORDINANCE DOCUMENT, UPDATING FOR NEW LEGAL DOLLAR
LIMITS ON COMPENSATION AND BENEFITS, CLARIFYING THE USE OF
ACCUMULATED SICK LEAVE IN CALCULATING PENSION BENEFITS, MODIFYING
THE DEFINITION OF VESTED RETIREMENT DATE, CLARIFYING THE CALCULATION
OF COMPENSATION BASE WHEN A MEMBER HAS LESS THAN FIVE YEARS OF
EMPLOYMENT, PROVIDING FOR AN ALTERNATIVE PENSION BENEFIT FORM
THROUGH WHICH NEW RETIREES MAY ELECT TO RECEIVE BETWEEN 5 % AND 25
OF THE ACTUARIAL VALUE OF THEIR PENSION IN A LUMP SUM, PROVIDING THAT
REHIRED MEMBERS MAY BUY-BACK PRIOR SERVICE BY REPAYING PRIOR
DISTRIBUTIONS PURSUANT TO BOARD POLICIES, PROVIDING THAT DISABLED
RETIREES WILL HAVE THEIR DISABILITY PENSIONS TERMINATED UPON THEIR
FAILURE TO PROVIDE REQUIRED DOCUMENTATION, INCREASING THE PENSION
DEATH BENEFITS PAID TO CHILDREN OF DECEASED MEMBERS, ALLOWING
RETIRED MEMBERS TO ELECT TO ACTUARIALLY REDUCE THEIR PENSION TO
PROVIDE DEATH BENEFITS FOR THEIR WIDOW OR WIDOWER IF THEY WERE NOT
MARRIED AT LEAST ONE YEAR PRIOR TO THEIR RETIREMENT, MODIFYING THE
ELECTION PROCEDURES FOR EMPLOYEE AND RETIREE BOARD POSITIONS,
PROVIDING THAT THE CITY SHALL INDEMNIFY BOARD MEMBERS AGAINST
LOSSES, DAMAGES AND EXPENSES SUBJECT TO CITY POLICIES AND PROGRAMS,
PROVIDED THE BOARD MEMBER WAS NOT GROSSLY NEGLIGENT AND DID NOT
ENGAGE IN WILLFUL MISCONDUCT, MAKING THIS ORDINANCE CUMMULATNE,
PROVIDING A SEVERABILITY CLAUSE, PROVIDING FOR ENGROSSMENT AND
ENROLLMENT, AND PROVIDING AN EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY~OF FORT WORTH,
TEXAS
THAT THE ORDINANCE ESTABLISHING A RETIREMENT SYSTEM,
RETIREMENT PLAN AND THE BENEFITS THEREUNDER FOR EMPLOYEES OF THE
CITY OF FORT WORTH IS HEREBY AMENDED AND REENACTED IN ITS ENTIRETY
TO READ AS FOLLOWS
-tv-
~.
SECTION I
PURPOSE AND HISTORY
The Employees' Retirement Fund of the City of Fort Worth, Texas, was originally established by
prior ordinance in 1945 The Fund is a defined benefit plan for the exclusive purpose of providing
benefits for the employees of the City of Fort Worth, Texas
Acknowledgment is hereby made of the creation and establishment by prior Ordinance in 1945 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.
owerton, 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, Revised Civil Statutes of Texas, which amending
Article abolished the statutory Firemen's Relief and Retirement Fund in the City of Fort Worth.
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 transferred 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 firefighters to join the Trust Fund of the Employees' Retirement Fund of the City
of Fort Worth. In 1963, all active firefighters m the employ of the City became Members of and
"subject to all provisions of" the Employees' Retirement Fund of the City of Fort Worth.
Sec.2-201 DEFINITIONS
The following words, terms and phrases, when used in this Ordinance, as
amended, shall have the meanings ascribed to them m this section, except where
the context clearly indicates a different meaning. The masculine pronouns,
wherever used herein, shall include both male and female persons
A "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
B. "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
C. "Actuary" shall mean the individual or organization retained by the Board
to provide actuarial evaluations of the Fund
D "Alternative Pension Benefit" shall have the meaning set forth in Sec. 2-
210 A 1 or 2-210 A 2, whichever applies
-1-
E "Base Pension" shall mean the annual life pension a Member receives
pursuant to Sec. 2-210 A 1 or 2-210 A 2, whichever applies, prior to any
cost of living adjustments pursuant to Sec. 2-210 B. If a Member elects an
Alternative Pension Benefit pursuant to Sec. 2-210 A 1 b or 2-210.A 2 b,
the Member's Base Pension shall not include the lump sum amount.
F "Beneficiary" shall mean any person m receipt of a Retirement Benefit or
any other benefit provided under this Ordinance.
G. "Board" shall mean the Board of Trustees of the Employees' Retirement
Fund of the City of Fort Worth, Texas
H "City" shall mean the City of Fort Worth, Texas.
I "Code" shall mean the United States Internal Revenue Code of 1986, as
amended, and any successor thereof
J "Compensation Base" shall have the meaning set forth in Sec. 2-207
K. "Credited Service" shall mean the number of years (treating each complete
month of service as one-twelfth of a year) m 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 Sec. 2-205 B. 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.
L "Earned Income" shall mean, for purposes of Sec. 2-211, 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.
M "Earnings" shall mean the amount actually paid to an employee by the City
for services rendered to the City during the calendar year, plus overtime,
acting, assignment, holiday, longevity, educational incentive, safety award,
incentive and shift differential pay, as reported on the employee's W 2
form. Regardless of the fact that the following payments may be shown
upon an employee's W-2 form, Earnings shall not include (1) any non-
salary allowance (such as umform 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 an employee for which the City does not
-2-
contribute to the Fund under Sec. 2-204 However, an employee
participating in aCity-sponsored deferred compensation plan shall have the
amount of any deferred compensation credited to that employee during the
calendar year added to earnings reported on the employee's W 2 form to
arrive at total earnings for Retirement Fund matters. Notwithstanding the
foregoing, earnings in excess of $160,000, if any (or such other amounts
as may be determined by taking into account the cost-of-living adjustment
provided under section 401(a) (17) of the Code), shall be disregarded for
all purposes of this Ordinance.
N "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended, and any successor thereof
O "Executive Director" shall mean the individual appointed by the Board,
subject to the approval of the City Council, to supervise the administrative
affairs of the Fund and carry out the business of the Fund
P "Fiscal Year" shall mean the period from October 1st of one year through
September 30th of the following year
Q "Fund" shall mean The Employees' Retirement Fund of the City of Fort
Worth, Texas
R. "Legitimate Children" shall mean those children legitunate to their
respective parent(s), as legitimacy is defined by the Texas Family Code and
the Texas Probate Code, R. C. S of Texas, as amended
S. "Member" shall mean all regular employees of the City of Fort Worth
starting on their first day of work and ending when they are no longer
entitled to any benefit from the Fund, provided that the following
employees shall not be eligible for participation in the Retirement Fund
1 Elective officers and non-salaried, appointive members of
administrative boards and commissions, except employee members
of boards or commissions,
2 Persons employed under contract for a definite period or for
performance of a particular, special service,
3 Employees serving on a part-time basis of less than one-half time,
4 Employees who are paid m part by the County, State or other
governmental agency, and only in part by the City, and
-3-
5 Persons carried on the payroll as temporary employees. Whether or
not any employee is a temporary or permanent employee shall be
determined by the records of the City
Any employee, department head or any other interested person may appeal
to the Board for a determination as to any person's eligibility to become a
Member of the Fund The Board's decision will be final
T "Net Earnings from Self-employment" shall constitute, for purposes of
Sec. 2-211, the net earnings from self-employment as reflected upon the
Internal Revenue Form Schedule SE and rts successors, which schedule is
attached to Internal Revenue Form 1040 and its successors.
U "Normal Retirement Date" shall have the meaning set forth in
Sec 2-206.A.
V "Police Officer" shall mean a member in the City of Fort Worth Police
Department who has acquired civil service status as well as a beginning
employee currently serving a one (1) year probationary penod pursuant to
Chapter 143, Local Government Code, Revised Civil Statutes of Texas, as
amended.
W "Price Index" shall mean the annual average for each year, ending
September 30th, of the Consumer Pnce Index (all items -United States City
Average) published monthly by the Bureau of Labor Statistics, U S
Department of Labor, or its successor m function.
X. "Regular Interest" shall mean interest compounded biweekly which should
equal but not exceed the effective annual rate of five and one-quarter percent
(5-1/4%) computed on a calendar year basis on and after the effective date of
this Ordinance
Y "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 m accordance with the provisions
of this Ordinance
Z. "Special Retirement Date" shall have the meaning set forth m Sec. 2-206.B
AA. "Standard Pension Benefit" shall have the meaning set forth in Sec.
2-210 A l a or 2-210 A 2 a, whichever applies
-4-
AB. "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.
AC. "Vested" shall mean the rights accrued under this Ordinance by a Member
of the Fund who has been a Member for five (5) years or more, or who has
attained hies or her retirement date as described in Sec. 2-206 Such rights
shall also accrue to all Members of the Fund at the time of termination of the
Fund, at the tune of any complete discontinuance of the City's contributions
to the Fund, and to Members affected at the tune of any partial termination
of the Fund, but only to the extent that the benefits of-such Members have
been funded
AD "Vested Termination Date" shall have the meaning set forth in Sec. 2-
206 C.
AE "Vested Termination Pension" shall have the meaning set forth in Sec. 2-
208 B.
Sec. 2-202 MEMBERSHIP IN THE FUND
Membership in the Fund shall be a condition of employment for all employees who
are eligible to be Members. Any existing physical condition at the time of entry into
the Fund shall not be a basis for disability retirement prior to Vesting.
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
percent (7 43%) of their Earrings and all other Members shall contribute six
and ninety-five one-hundredths percent (6 95%) of their Earnings. 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 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 dunng the penod covered
by such payment, except as to the benefits provided by the Fund.
B. The contribution percentage of all Members maybe 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 percent (75%) of only the affected
Members voting at an election called for that purpose by the Board or the
-5-
Crty 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.
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 percent (9 78%) of their Earnings;
effective October 1, 1997, the City's contribution shall increase to ten and thirty-four
one-hundredths percent (10.34%), effective October 1, 1998, the City's contribution
shall increase to ten and mne-tenths percent (10.9%), and effective October 1, 1999,
the City's contribution shall increase to eleven and forty-six one-hundredths percent
(11 46%) For all other Members, effective October 1,1996, the City shall contribute
to the Fund mne and six one-hundredths percent (9 06%) of their Earnings; effective
October 1, 1997, the City's contribution shall increase to mne and sixty-two one-
hundredths percent (9 62%), effective October 1, 1998, the City's contribution shall
increase to ten and eighteen one-hundredths percent (10 18%), and effective October
1, 1999, the City's contribution shall increase to ten and seventy-four one-hundredths
percent (10 74%) Sec 2-203 shall not limit the nght of the Crty Council, through
rts 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.
Sec. 2-205 CREDITED SERVICE.
A. Service Breaks.
Pension credits shall be granted for all Credited Service for whtch a Member
of the Fund receives employment compensation from the City, subject to the
following regulations pertaining to service breaks
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, penods of absence in excess of ninety (90)
consecutive calendar days without pay shall be deducted from
Credited Service, and no contributions shall be made by Members or
by the City during such penods
An absence of any period 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 period of absence shall
cancel all pnor 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
-6-
.~. }
Regular Interest thereon (at the Regular Interest rate in 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
(1) Repay in a single lump sum payment within 90 days
of reemployment, or
(2) Repay through a payroll deduction payback plan
which commences within 90 days of reemployment, and provides that
Regular Interest will be charged throughout the payback penod and
that the repayment penod will not exceed seven 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 related
Member on the date this provision is added to the Retirement
Ordinance shall have until July 28, 1998 to elect one of the above
repayment options or waive his or her nght to pnor service credits.
4 Effective on or after December 12, 1994, any Member who is
reemployed by the City upon completion of service m the uniformed
services (within the time frame provided under the Uniformed
Services Employment and Reemployment Rights Act of 1994, as
amended), shall be granted service credit for such uniformed 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 penod which commences with the date of
reemployment by the City and whose duration is three trines the
penod of the Member's service m the uniformed services, not to
exceed five 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.
B Accumulated Sick Leave and Ma,or Medical Leave.
At retirement and in calculating a Vested Termination Pension, a Member
shall have added to his or her Credited Service, as defined herein and subject
to the provisions of Sec 2-205.A, above, any hours or accumulated sick leave
and/or unused mayor medical leave, as recorded in the official personnel
records of the City, for which that employee has not received compensation.
-7-
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 in-line-of--duty disability pension under
Sec 2-211.D For Credited Service purposes, such accumulated sick leave
hours and/or unused mayor medical leave for which a Member has not
received 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 12. The resulting product
represents the number of months in whole numbers and/or a decunal 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.
Sec. 2-206 RETIREMENT DATE.
A. Normal Retirement Date
A Member shall be eligible for pension benefits on or after the Member's
Normal Retirement Date which shall be the last day of the month m which
the earliest of the following occurs
1 the Member's years of age and years of Credited Service total eighty
(SO), or
2 the later of (i) the date on which the Member reaches age sixty-five
(65) or (ii) the fifth (5th) anniversary of the date the Member~oined
the Fund.
B Special Retirement Date
A Police Officer Member shall be eligible for pension benefits on or after
such Member's Special Retirement Date which shall be the last day of the
month m which such Member's years of Credited Service total twenty-five
(25)
-8-
C Vested Retirement Date.
A Vested Member who is voluntanly or involuntarily sepazated from the
service of the City shall be eligible for pension benefits on or after such
Member's Vested Termination Date which shall be the last day of the month
in which the Member reaches age fifty (50), or, if earlier, the last day of the
month m which the Member would have attained lus or her Normal
Retirement Date had the Member remained employed by the City
Sec. 2-207 COMPENSATION BASE FOR DETERMINING BENEFITS
Pension, death, disability and Vested termination benefits shall be based upon the
Member's Compensation Base which shall mean the average Earnings which were
paid to the Member by the Crty for employment with the City dunng any five (5)
calendar years in which he or she had the highest Earnings. If a Member has less
than five (5) calendar years of employment, the Member's Compensation Base shall
be detennmed by the Executive Director under uniform, non-discnmmatory
procedures that are consistently applied. For Compensation Base purposes, any lump
sum payments of Earnings for any pnor time penod, whether awarded to the Member
by a court, administrative body or settlement agreement, shall be retroactively
attributed to the calendar year m which rt would otherwise have been received by the
employee from the City for services rendered.
Sec. 2-208 TERMINATION BENEFITS AND VESTING
A. Contribution Refund Pnor to Vesting.
Any Member who is voluntanly or mvoluntanly separated from the service
of the City before the Member is Vested shall be entitled to receive the
amount of the Member's contributions plus Regular Interest (at the Regulaz
Interest rate in effect on the date of such payment) less any amount
previously paid to the Member from the Fund.
B Vested Termination Pension.
1 A Vested Member who is voluntanly or involuntarily sepazated from
the service of the City shall be entitled to receive a Vested
Termination Pension payable (i) in full on the date when the Member
would have otherwise attained Normal Retirement Date had the
Member remained employed by the City, or (ii) in a reduced amount
commencing on or after age fifty (50) A 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
-9-
month following approval of the 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 Member's
Compensation Base multiplied by the 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 Member's Compensation Base shall be
two and seventy-five one-hundredths percent (2.75%), unless the
Member has attained his or her Normal Retirement Date pnor to the
date the Member's pension payments begin, m which case the
specified percentage shall be three percent (3 0%) A Vested
Tennmation 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 Member's
employment with the City terminates)
3 The amount of reduction for early commencement of a Vested
Termination Pension pnor to the Member's Normal Retirement Date
shall be five-twelfths percent (5/12%) for each month by which
commencement of the pension antedates the Member's Normal
Retirement Date had the Member remained employed by the City
C Contribution Refund After Vest~n~ m Lieu of Vested Tennmation Pension.
Any Vested Member who is voluntanly or involuntarily separated from the
service of the City may elect to receive a refund of the Member's
contributions, plus Regular Interest (at the Regular Interest rate m effect on
the date of such payment) less any amount previously paid to the Member
from the Fund, either at the date of such separation or at any time thereafter
pnor to commencement of retirement income, but by so doing, the Member
shall forfeit all nghts under the Fund and thereafter be entitled to no further
benefits hereunder
Sec. 2-209 PAYMENT OF BENEFITS
Where benefits are payable to a minor, an individual who has legally been
determined to lack capacity, or an individual whom the Board determines to be
unable to handle money, the Board shall make payments, without any duty to see to
the application thereof, to the guardian of such person's estate or, if there is none, as
the Board determines to be m the best interest of such person.
If a retired employee who is receiving pension benefits from the Fund is re-employed
by the City as a regular employee, that person's pension benefits shall cease upon the
-10-
date of reemployment. Credited Service earned during the term of any person's
subsequent re-employment in which the employee's pension benefits have been
suspended shall be added to the Credited Sernce of the pnor periods of employment,
and upon final separation from the City, a new pension benefit shall be calculated
taking into account the Member's total years of Credited Service and recalculated
Compensation Base. In no event shall the Member's monthly pension benefit be
reduced due to periods of reemployment.
If the distributee of an eligible rollover distribution (as defined in Code section
402(f)(2)(A)) (i) elects to have such distribution paid directly to an eligible retirement
plan and (ii) specifies in writing (before the distribution is made) the eligible
retirement plan to which such distribution is to be made, the distribution will be
made in the form of a direct trustee-to-trustee transfer to the eligible retirement plan
so specified.
Sec. 2-210 RETIREMENT PENSION
A. Commencement of Retirement Pensions and Ad,ustment to Prior Pensions.
Pensions Commencing Upon Normal Retirement Date.
a. Standard Pension Benefit.
A Vested Member who retires on or after the Member's
Normal Retirement Date and requests commencement of the
Member's pension, or a Member who terminates employment
prior to the Member's Normal Retirement Date and who waits
until such Normal Retirement Date to apply for a pension,
shall receive an annual life pension, the amount of which shall
be three percent (3 0%) of the Member's Compensation Base
multiplied by the Member's total years of Credited Service to
date of actual retirement, payable monthly on the first day of
each month commencing with the month following the
Board's approval of the Member's pension. This pension
benefit shall be called the "Standard Pension Benefit."
b Alternative Pension Benefit.
In lieu of the Standard Pension Benefit, a Member may
irrevocably elect with his or her spouse's consent (where
applicable), m advance of his or her retirement and pursuant
to regulations and requirements the Board in rts discretion
may adopt, to receive an "Alternative Pension Benefit" which
shall be Actuarially Equivalent to the Member's Standard
Pension Benefit and which shall be payable m two parts (i)
-11-
one part m a lump sum amount not less than five percent (5%)
nor greater than twenty-five percent (25%) of the Actuarial
Equivalent of the 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 hfe pension,
payable monthly on the first day of each month commencing
with the month following the Board's approval of the
Member's pension.
c. Limitation on Alternative Pension Benefit.
Notwithstanding any other provision in this Ordinance to the
contrary, the option to elect an Alternative Pension Benefit
shall not be available for any disability benefits under Sec. 2-
211, death benefits under Sec. 2-212, or termination benefits
under Sec. 2-208, 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 the Ordinance, nor shall it be available upon re-
retuement to any retired employee who becomes re-employed
by the City
2. Pensions Commencm~LJpon Special Retirement Date
a. Standard Pension Benefit.
A Vested Police Officer Member who retires on or after the
Member's Special Retirement Date and requests
commencement of the Member's pension shall receive an
annual life pension, the amount of which shall be three
percent (3 0°l0) of the Member's Compensation Base
multiplied by the Member's total years of Credited Service to
date of actual retirement, payable monthly on the first day of
each month commencing with the month following the
Board's approval of the Member's pension. This pension
benefit shall be called the "Standard Pension Benefit."
b Alternative Pension Benefit.
In lzeu of the Standard Pension Benefit, a 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 m its discretion
may adopt, to receive an "Alternative Pension Benefit" which
shall be Actuanally Equivalent to lus or her Standard Pension
-12-
T
Benefit and which shall be payable in two parts. (i) one part
m a lump sum amount not less than five percent (5%) nor
greater than twenty-five percent (25%) of the Actuanal
Equivalent of the Member's Standard Pension Benefit, which
lump sum shall be payable on the date benefits commence
under (ii), and (ii) the remainder m an annual life pension,
payable monthly on the first day of each month commencing
with the month following the Board's approval of the
Member's pension.
c Limitation on Alternative Pension Benefit.
Notwithstanding any other provision in this Ordinance to the
contrary, the option to elect an Alternative Pension Benefit
shall not be available for any disability benefits under Sec. 2-
211, death benefits under Sec. 2-212, or termination benefits
under Sec. 2-208, 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 the Ordinance, nor shall it be available upon re-
retuement to any retired employee who becomes reemployed
by the City
3 Pension Commencing Prior to October 1 1996
Effective October 1, 1996, each member previously receiving pension
benefits hereunder shall have the member's calculation for Base
Pension benefits adjusted. For members whose pension was
calculated on or after the member attained Normal Retirement Date
or Special Retirement Date, or who were receiving penston benefits
pnor to October 1, 1993, the new Base Pension shall be three percent
(3 0%) of the member's Compensation Base multiplied by the
member's total years of Credited Service to date of actual retirement.
For all other members, the new Base Pension shall be two and
seventy-five one-hundredths percent (2 75%) of the member's
Compensation Base multiplied by the member's total yeazs of
Credited Service to date of actual retirement. For all members, all
pnor cost of hvuig increases from the date the member's pension
benefits commenced shall be added to the new Base Pension to
determine •total benefits to be paid.
B. Cost of Living Ad,ustment.
Annually, effective January 1, 1998, 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 (including disability retirement),
-13-
or to their survivors (including children), by adjusting the amount of the
actual pension up or down by the amount of the percentage change in the
Price Index over the previous year, or by two percent (2 %), whichever is
smaller; provided, that in no event shall any retired Member's pension or
survivor's benefits be reduced below the Base Pension. 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 30th of the prior
year.
C. Commencement of Benefits
Notwithstanding any other provision in this Ordinance, monthly benefit
payments to a Member shall commence no later than April 1 of the year after
the year in which the Member attains age 70-1/2, or, if later, April 1 of the
year after the year in which the Member retires. Monthly benefit payments
to any eligible dependent of a deceased Member or deceased retired Member
shall commence no later than one (1) year after the death of such Member or
retired Member
Sec. 2-211 DISABILITY PENSIONS
A Definition of Disability
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 perforrrung 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 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 mnery (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
-14-
States (including the United States Merchant Marine), any of its allies
or any other foreign country
3 Notwithstanding the provisions of Sec. 2-211 D. and Sec. 2-211 E ,
no disability pension shall, at the time of commencement, exceed the
Member's rate of Earmngs
4 To assist the Board in making disability determinations, the City shall
provide the Executive Director with City job descnptions 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 Ordinance, shall be subject to all the provisions
of this Sec. 2-211, 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 or more duly licensed and practicing physicians}
appointed by the Executive Director has determined that the Member
is not capable of performing the essential functions of the positions
identified under Sec. 2-211 A (i) and Sec. 2-211 A (ii)
Determination 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 fast day of
the month following the month in which such mnety (90) 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 shall occur within a
reasonable tune. Any disability pension shall be terminated upon the
-15-
Board's determination that the Member is not disabled as defined in
Sec. 2-211 A
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 division 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 m~unes 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
demal 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 parries, and no appeal can be made therefrom. A
Member is entitled to a reasonable hearing (at which the Member
may appear m person, with or by a representative, or in writing)
before the Board makes its determination.
8 No disability pension shall be 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 Ciry .because of the Member's inability
to perform the essential functions of the Member's position. Any
such disability pension granted under this Sec. 2-211 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 Disability in Line of Duty
-16-
1 If a Member, whether or not Vested, becomes disabled as above
defined while in line of duty, the Member shall receive an annual life
pension, the amount of which shall be the specified percentage of the
Member's Compensation Base multiplied by the Member's total years
of Credited Service which would have accrued if the Member had
worked to the 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 Member's
Compensation Base shall be two and seventy-five one-hundredths
percent (2 75 %), unless the Member is already eligible to retire on
or after the Member's Normal Retirement Date, in which case the
specified percentage shall be three percent (3 0 %)
2 As used in this Sec. 2-211 D. and Sec 2-211 E below, "line of duty"
means in the course of the operations usual to a Member's
employment, including all operations necessary, incident, or
appurtenant thereto or connected therewith, whether such operations
are conducted at the usual place of employment or elsewhere.
E Disability Not in Line of Duty
If a Vested Member becomes disabled as above defined while not in line of
duty, the Member shall receive an annual life pension, the amount of which
shall be the specified percentage of the Member's Compensation Base
multiplied by the Member's total years of Credited Service to date of actual
retirement. For purposes of the preceding sentence, the specified percentage
of the Member's Compensation Base shall be two and seventy-five one-
hundredths percent (2 75%), unless the Member is already eligible to retire
on or after the Member's Normal Retirement Date, in which case the
specified percentage shall be three percent (3 0%) If a Member becomes
disabled while not in the line of duty before the Member is Vested, then Sec.
2-208 shall apply
F Recovery from Disability
If the Board deterinines 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
-17-
further 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), 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 attanrunent of the Vested
Retirement Date under the Ordinance equal to the amount which would have
been payable under the provisions of Sec. 2-208 had the Member terminated
employment on the date the disability pension began. Any death benefits
thereafter shall be determined in accordance with Sec. 2-212
G. Report of Earned Income or Net Earnings from Self-Emplo,Yment.
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 1 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 1 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
m the affidavit, including amounts paid to other affiliated entities for fhe
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 return with all attachments and the related affidavit, within two (2) weeks
after the tax return has been filed
If the Member's total receipt of Earned Income, Net Earnings from Self-
employment, and City disability retirement benefits, not including any cost
of laving adjustment increase or increase in the formula under which the
pension is calculated, shall exceed the Member's annualized base hourly rate
of pay at the time a disability pension was granted by the Board, then, as
-18-
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
eannings, 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 m excess of the amount required, the Board shall pay such excess
to the Member. For purposes of Sec. 2-211 G. , base hourly rate of pay shall
not include overtime, acting, assignment, holiday, longevity, educational
incentnve, safety award, incentive, shnft dnfferential or any other special or
premnum pay
The Board shall withhold a Member's disability pensnon 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 Member subsequently
provndes 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 rennstated, subject to the other provisions of this Ordnnance and including
the payment of any previously withheld amounts, wnthout interest. If the
Member fails to provide the requnred documentation by the end of the
calendar year nn which the return was due, the Member's dnsability pension
shall be terminated and the Member shall not be entntled to any payment for
the pernod during which the documentation was not provided
For purposes of Sec. 2-211 G., any amounts paid to a Member's affiliated
entity in connection with the performance of services by the Member shall
constitute "Earned Income," and any attempt to circumvent the limitations
under this Ordinance on Earned Income and Net Earnings from Self-
Employment through the use of affiliated entities shall be grounds for the
Board to terminate the Member's disability pension.
Sec. 2-212 DEATH BENEFITS
A While in Line of Dutv
If a Member dies before retirement while in line of duty and as a result of the
performance of that Member's duties, the surviving widow or widower shall
be entitled to receive a monthly pension, the amount of which shall be
seventy-five percent (75%) of the Member's pensnon, based on the number
of years of Credited Servnce that would have accrued had the Member lived
to the Member's Normal Retnrement Date, but not less than Two Hundred
Fifty Dollars ($250 00) Each dependent child of such Member under age
eighteen (18) shall be entitled to receive a monthly pension, the amount of
which shall be One Hundred Dollars ($100 00), provided however, that if no
survnvmg wndow or widower shall be entitled to receive a monthly pension
pursuant to the terms of this Ordinance, all such dependent children shall
share equally a monthly pension, the amount of which shall be seventy-five
-19-
percent (75 %) of the Member's pension, based on the number of years of
Credited Service that would have accrued had the Member lived to the
Member's Normal Retirement Date, but not less than Two Hundred Fifty
Dollars ($250 00)
If a Member dies while m 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 percent (75 %) of the Member's accrued
pension projected to the Member's Normal Retirement Date, but not less than
Two Hundred Fifty Dollars ($250 00)
For purposes of Sec. 2-212 A , a Member's pension on or after Normal
Retirement Date shall be calculated using a multiplier of three percent
(3 0%)
B. While Not in Line of Dutv
If a Vested Member dies before retirement, while not m 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 percent (75 %) of the Member's
accrued pension but not less than One Hundred Fifty Dollars ($150 00) If
a 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 Member
paid into the Fund during the 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)
Each dependent child under eighteen (18) years of age of such Vested
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
survrvmg widow or widower shall be entitled to receive a monthly pension
pursuant to the terms of this Ordinance, all such dependent children shall
share equally a monthly pension, the amount of which shall be seventy-five
percent (75 %) of the Member's accrued pension, but not less than One
Hundred Fifty Dollars ($150 00)
If a 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 percent (75 %) of the Member's accrued
pension projected to the Member's Normal Retirement Date, but not less than
Two Hundred Fifty Dollars ($250 00)
-20-
For purposes of Sec. 2-212 B., a Member's accrued pension shall be
calculated using a multiplier of two and seventy-five one-hundredths percent
(2.75 %), unless the Member had reached the Member's Normal Retirement
Date prior to death, in which event the multiplier shall be three percent
(3 0%)
C. After Retirement.
Upon the death of a retired Member, the surviving widow or widower shall
be entitled to receive a monthly pension, the amount of which shall be
seventy-five percent (75 %) of the pension being paid to the Member,
provided that the Member and surviving widow or widower had been married
for at least one year immediately prior to the Member's retirement.
Notwithstanding the preceding sentence, a surviving widow or widower who
was not married to the deceased Member for at least one year immediately
prior to the Member's retirement shall be eligible to receive a monthly
pension if the Member has elected to receive a reduced monthly pension, on
a form and subject to procedures developed by the Executive Director, within
six months after the Member's completion of two years of marriage to the
Member's spouse The Member's reduced monthly pension shall be
actuarially determined, based on actuarial tables m effect on the date of the
Member's election to receive a reduced monthly pension. If such an election
has been made, the Member's surviving widow or widower shall receive a
monthly pension for life equal to 75% of the Member's reduced monthly
pension. Any Member who has retired prior to April 21, 1998 shall be
eligible to complete such an election by October 28, 1998
Each dependent child under eighteen (18) years of age of such deceased
Member shall be entitled to receive 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 a monthly pension pursuant
to the terms of the Ordinance, all such dependent children shall share equally
a monthly pension, the amount of which shall be seventy-five percent (75 %)
of the pension being paid to the Member at the time of his or her death.
D After Vested Termination
If a terminated Member entitled to a pension under the provisions of
Sec. 2-208 dies before the Member's pension commences, the Member's
estate shall receive an amount equal to the Member's total contributions to
the Fund, plus Regular Interest (at the Regular Interest rate in effect on the
date of such payment), provided, however, that if the Tested Member's years
of age and years of Credited Service total at least sixty-five (65) as of the date
of the Member's termination, the. Member's eligible dependents shall receive
the benefit specified under Sec 2-212 B., based on the pension to which the
-21-
Member would have been entitled as of the date of the Member's death, in
lieu of the payment of contributions plus Regular Interest to the Member's
estate.
If such terminated Member dies after the Member's pension commences, the
Member's eligible dependents shall receive the benefit specifed under
Sec. 2-212 B.
E General Provisions
If a deceased Member leaves no widow, widower, children or dependent
parents eligible to receive a benefit hereunder, the 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 Member's estate.
Payments to a child shall be made whether or not a widow or widower
survives and shall continue after the death of a widow or widower, 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 Ordinance, a parent will be deemed to be
dependent if the Member provides over half of the parent's support.
Payments to a widow or widower shall continue after remarriage, but shall
cease upon the death of the widow or widower 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 payments can be made After payments cease, any excess of the
Member's total contributions, plus Regular Interest at date of death over
disability and/or death benefits paid shall be paid to the Member's estate.
Except as provided m Sec. 2-212 D ,death benefit coverage during service
breaks in excess of ninety (90) consecutive calendar days shall be limited to
Members who are absent due to service-connected m~ury incurred while in
the line of duty
Benefits hereunder shall be payable on the first day of each month
commencing with the month following the one in which the Member's death
occurs The Board shall determine all questions of dependency, 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 determination to the contrary, shall be considered
dependent.
-22-
Sec. 2-213 ANNUAL ACTUARIAL VALUATIONS
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
Ordinance. 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
Sec.2-214 ADMINISTRATION
A 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
Employees' Retirement Fund of the City of Fort Worth" The Board shall
consist of ten (10) trustees designated as Place 1, Place 2, Place 3, Place 4,
Place 5, Place 6, Place 7, Place 8, Place 9, and Place 10, respectively Each
trustee shall serve for a term of two (2) years Trustees shall be selected as
follows
1 Trustees Elected by Emplo,
Five (5) trustees who are Members of the Fund shall be elected by the
employees of the City who are also Members of the Fund, said five
(5) trustees shall serve in Places 1, 3, 5, 7, and 9, respectively Each
of the trustees shall be elected by one of the five (5) employee groups
of the City as follows
Place 1 The trustee for Place 1 shall be elected by
Employee Group A, which shall consist of
those Members of the Fund who are assigned
to work in the Police Department of the City
Only Members of the Fund who qualify for
Employee Group A shall be eligible to vote
for a nominee for Place 1 Only Members of
the Fund who qualify for Employee Group A
shall be eligible to serve on Place 1 of the
Board
Place 3 The trustee for Place 3 shall be elected by
Employee Group B, which shall consist of
those Members of the Fund who are assigned
to work in the Water and Sewer, Library, and
Aviation Departments of the City Only
-23-
Members of the Fund who qualify for
Employee Group B shall be eligible to vote
for a nominee for Place 3 Only Members of
the Fund who qualify for Employee Group B
shall be eligible to serve on Place 3 of the
Board
Place 5 The trustee for Place 5 shall be elected by
Employee Group C, which shall consist of
those Members of the Fund who are assigned
to work in the Municipal Court, Fire,
Information System and Services, and
Housing Departments of the City Only
Members of the Fund who qualify for
Employee Group C shall be eligible to vote
for a nominee for Place 5 Only Members of
the Fund who qualify for Employee Group C
shall be eligible to serve on Place 5 of the
Board
Place 7 The trustee for Place 7 shall be elected by
Employee Group D, which shall consist of
those Members of the Fund who are assigned
to work in the City Services and the
Transportation and Public Works Departments
of the City Only Members of the Fund who
qualify for Employee Group D shall be
eligible to vote for a nominee for Place 7
Only Members of the Fund who qualify for
Employee Group D shall be eligible to serve
on Place 7 of the Board
Place 9 The trustee for Place 9 shall be elected by
Employee Group E, which shall consist of
those Members of the Fund who are assigned
to work in all other departments of the City
not specified m Employee Groups A, B, C,
and D Only Members of the Fund who
qualify for Employee Group E shall be
eligible to vote for a nominee for Place 9
Only Members of the Fund who qualify for
Employee Group E shall be eligible to serve
on Place 9 of the Board
-24-
a Term.
In accordance with the nonnation and election procedures
prescribed in this Section, trustees shall be elected to Places
1, 3, 5, 7, and 9, and shall serve for a two (2) year term.
Trustees shall be elected every odd numbered year and shall
serve from October 1 of such odd numbered year through
September 30 of the next odd numbered year Should the
employment status of any employee 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, 3, 5, 7, or 9 during
the term thereof, then a majority of all trustees remaining on
the Board shall appoint to the Board a qualified employee
from the employee group whose place has been vacated,
which qualified employee shall serve the remainder of the
unexpired term, provided, however, that if, at the time the
vacancy arises, more than one 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 m the dates and timeframes
for the nomination and election in light of the time of the
vacancy
b Method of Nominatin Active Members for Election.
Nominations of active Members for election to the Board of
Trustees shall be by petition only Before July 1 of each odd
numbered year, the Executive Director shall make available
to employees 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 15 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 employee
group of which the nominee is a member, and place on the
Board of. Trustees for which the employee 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 one hundred (100) members
of the employee group who are qualified to vote for said place
-25-
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 1 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 3 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 5 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 7 unless that person is a member of
Employee Group D No person's name shall be placed upon
the official ballot as a nominee for Place 9 unless that person
is a member of Employee Group E
c. Method of Electing Employee Trustees
The Executive Director shall prepare an official ballot for
each place, listing m alphabetical order according to surname
the nominees for election to that place. If, however, there is
only one nominee for any Place, there shall be no election for
that Place, and such nominee shall automatically be elected to
the Board of Trustees. Only the names of those persons who
are nominated by petition as prescribed herein shall be placed
upon the official ballot. No person 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 the first payday in August in such manner as to
allow each Member an opportumry to vote by secret ballot.
Each employee qualified to vote in said election shall vote for
one nominee only Any ballot containing votes of two 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 returned to the Executive
Director no later than ten (10) days after the first payday in
August, at which time the Executive Director 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 of Trustees Following the
tabulation of votes, the Executive Director shall submit the
result of same to the Board of Trustees at a meeting to be held
before September 1 of said election year, at which time the
Board shall canvass the results of said election and certify
which nominees are elected to the Board of Trustees. If at the
time of canvassing said results, the nominee receiving the
-26-
majority of votes for said place is no longer eligible to serve
on the place to which that nominee was elected, then the
nominee fuushing second in the election shall be certified by
the Board as elected to the Board of Trustees
If there is more than one nominee and no nominee receives a
majority of the votes cast for any one place, or if there is a tie
for any one place, then arun-off election shall be held on the
first payday in September, at which time ballots shall be made
available to the Members qualified to vote for that place 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 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 returned to the Executive Director no later
than ten (10) days after the first payday in September, at
which time the Executive Director 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 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 shall be declared elected Following
the tabulation of votes in the run-off election, and the casting
of lots m case of ties, the Executive Director shall submit the
results of same to the Board of Trustees at a meeting to be
held before October 1 of said election year, at which time the
Board shall canvass the results of the run-off election and
certify which nominees are elected to the Board of Trustees.
If at the tune of canvassing the results of the run-off election,
the nominee elected to serve on said Board is no longer
eligible to serve on the Place to which he or she was elected,
then the nominee fimshing second in the election shall be
certified by the Board as elected to the Board of Trustees
2 Trustee Elected by Retired Members
Only retired Members of the Fund shall be eligible to vote for a
nominee for Place 8 Only retired Members of the Fund shall be
eligible to serve on Place 8 of the Board
a. Term.
-27-
In accordance with the nomination and election procedures
prescribed in this section, a trustee shall be elected to Place
8 and serve for atwo-year term A trustee shall be elected
every even numbered year and shall serve from October 1 of
such even numbered year through September 30 of the next
even numbered year. Should a trustee return to City
employment and again become a Member of the Fund, the
trustee shall automatically forfeit the office of trustee. Should
a vacancy occur in Place 8, during the term thereof, then a
majority of all trustees remauung on the Board shall appoint
to the Board a retired Member to serve the remainder of the
unexpired term
b Nomination of Retiree Member for Election.
Nomination of the retired Member for election to the Board
shall be by Letter of Nomination only Before July 1 of each
even numbered 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 Duector prior to July 15 of
the election year Each returned Letter of Nomination shall
identify the retired Member being nominated and must
contain the signature and retired Employee's Social Security
Number of the retired Member making the nomination. Any
retired Member receiving at least twenty-five (25) Letters of
Nomination shall be considered a nominee for election to
Place 8 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 Letter of Nomination. Only retired Members
may complete Letters of Nomination.
c. Election of Retiree Board Member
The Executive Director shall prepare an official ballot for the
election of the retiree Board member, listing the nominees in
alphabetical order by surname Ballots for election of the
retiree Board member shall be mailed to all retired Members
no later than August 1 of each even numbered year If,
however, there is only one nominee for Place 8, there shall be
no election for Place 8, and the one nominee shall
automatically be elected to the Board of Trustees Only the
names of those persons who are nominated by Letters of
Nomination shall be placed on the official ballot. No person
shall be elected as trustee whose name does not appear on the
-28-
official ballot as a nominee. To be considered valid, a cast
ballot must be returned to the Executive Director by mail and
postmarked no later than August 15 of the election year.
Each retired Member qualified to vote in the election shall
vote for one nominee only Any ballot containing votes for
two or more persons, or for persons who are not norrunees as
provided herein, shall be declared invalid and shall not be
counted The Executive Director shall tabulate all votes for
all nominees. The nominee 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 of Trustees meeting to be
held before September 1 of the election year, at which time
the Board shall canvass the results of the election and certify
which nominee is elected to the Board of Trustees. If at the
time of canvassing the results, the nominee receiving the
majority of votes is no longer eligible to serve, then a
majority of the trustees remaining on the Board shall appoint
to the Board a retired Member who shall serve from
October 1 of such even-numbered year through September 30
of the next even-numbered year
If there is more than one nominee and no nominee receives a
majority of the votes cast, or if there is a tie, then arun-off
election shall be held and ballots shall be mailed to all retired
Members no later than September 7 Only the names of
candidates who tied for the highest number of votes cast for
that place in the first election, or the two 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
returned to the Executive Director no later than
September 21, at which tune the Executive Director 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 shall be declared elected Following
the tabulation of votes in the run-off election, and the casting
of lots m case of ties, the Executive Director shall submit the
results of same to the Board of Trustees at a meeting to be
held before October 1 of said election year, at which time the
Board shall canvass the results of the run-off election and
-29-
certify which nominees are elected to the Board of Trustees.
If at the tune of canvassing the results of the run-off election,
the nominee elected to serve on said Board is no longer
eligible to serve, then a majority of the trustees remaining on
said Board shall appoint to the Board a retired Member who
shall serve from October 1 of such even-numbered year
through September 30 of the next even-numbered year.
3 Board Members appointed by the Citv Council
Four •(4) Board members who are residents of the City of Fort Worth
and may be members of the City Council shall be appointed by the
City Council to serve in Places 2, 4, 6, and 10 The term of
appointees for Places 2, 4, 6, and 10 shall be for two (2) years
(unless sooner removed by a majority of the Ciry Council)
commencing on October 1 of every even numbered year Should any
appointed member cease to be a resident of the Ciry of Fort Worth or
should a vacancy occur in .Place 2, 4, 6, or 10 during the term thereof
for any other reason, then a majority of the City Council shall appoint
a qualified person to serve the remainder of the unexprred term.
B. General Provisions
1 The members of the Board shall remain in office until their
successors are duly elected or appointed
2 At its October meeting, the Board shall elect from its membership a
Chair and a Vice Chair to serve for one (1) year
3 The Board shall serve without remuneration and shall meet not less
than once a month and may meet at any tune 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.
4 Six (6) 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 for final passage the
affirmative vote of a majority of the trustees on the Board (regardless
of the number of trustees present at the Board meeting)
5 The Board shall have the power and duty to administer the Fund and
to make and establish any and all rules, regulations and procedures
pertaimng to the Fund not inconsistent with this Ordinance and
applicable law
-30-
6 The Board shall be the trustee of the Fund and shall have the power
to acquire, invest, reinvest, exchange, retain, sell, supervise and
manage the assets of the Fund. The Board shall discharge its duties
solely in the interest of the Members and beneficiaries (a) for the
exclusive purpose of (i) providing benefits to Members and their
beneficiaries, and (ii) defraying any reasonable expenses of
administering the system, (b) with the care, skill, prudence, and
diligence under the prevailing circumstances that a prudent person
acting m a like capacity and familiar with matters of the type would
use in the conduct of an enterprise with a like character and like aims,
(c) by diversifying the investments of the Fund to minunize the risk
of large losses, unless under the circumstances it is clearly prudent
not to do so, and (d) in accordance with the documents and
instruments governing the Fund to the extent that the documents and
instruments are consistent with this Ordinance and applicable law
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 trustees of
ordinary prudence, discretion and intelligence acquire or retain for
trust accounts, provided, however, that each investment manager
employed by the Board shall not purchase or hold within the Fund's
investment portfolio under its management at any time more than five
percent (5 %) of the outstanding securities of any one corporation, and
provided further, that the Board is specifically prohibited from
purchasing bonds, warrants, obligations or securities of the City of
Fort Worth for the Fund
7 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, master trustees and investment
managers or advisors
8 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
9 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
-31-
Ordinance and applicable law Therefore, its decisions shall be final,
binding and conclusive on all persons.
10 In construing this Ordinance, the provisions of the Texas Trust Code
shall apply to the extent that they do not differ from this Ordinance.
11 The City Attorney or his or her representative shall advise the Board
on any matter for which the Board requests a legal opinion or seeks
legal advice from the City Attorney The Board shall have the
power, as it deems necessary and appropriate to carry out the
purposes of the Fund, to retain other attorney(s) to represent the
Board, to enter into contracts with such attorneys and to pay them
from Fund assets
C. Executive Director and Other Employees
The Board shall appoint an Executive Director of the Fund, subject to the
approval of the City Council, who shall supervise and be responsible to the
Board for the admiustrative affairs of the Fund and carry out the business of
the Fund as directed by the Board. The Executive Director shall appoint
such other employees as are necessary for the operation of the Fund The
Executive Director and such other employees shall be City employees (and
governed by the City personnel rules and regulations, except that the Board
shall propose a salary range for the Executive Director, subject to the
approval of City Council), Fund Members, and eligible for employee benefits
available to City employees
D Bud eg t. Expenses, and Repayment b,
1 Annually, the Executive Director shall propose a budget for the
Fund The Fund's proposed budget shall be reviewed and revised,
if appropriate, by the Board and presented to the City's budget office
for review and comment The City's budget office may request the
Board to reconsider any item in the budget, but the Board shall make
the final determination on the budget for the Fund
2 All administrative, business or other costs relating to the Fund shall
be paid or reimbursed by the Board from Fund income or assets upon
approval by the Board If any such costs are paid initially by the
City, then the City shall be reimbursed by the Fund for all
appropriate expenses incurred, unless it is actuarially determined that
such reimbursement would have an adverse effect on the payment of
benefits to Members and beneficiaries.
-32-
Sec. 2-215 EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS
A The City shall never be held liable or responsible for any claim or asserted
claim for benefits under the provisions of this article, but all claims shall be
paid from the Fund for which provision has been specifically made in this
Ordinance. Notwithstanding the preceding sentence, the City, pursuant to its
policies, programs and applicable law, shall indemnify and hold harmless the
Board of Trustees and its individual members against any and all loss,
damage and expense, including court costs and attorney's fees, resulting from
or arising out of the actions and inactions of the Board of Trustees 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 harmless shall not apply to any member of the Board
of Trustees to the extent that the loss, damage or 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, garnishment, assignment, 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, claun, 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 Sec. 2-215 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 Sec. 2-215 The maximum pension benefit that can be paid to a former
spouse is fifty percent (50%) 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 tune of the Member's death, the Member and the
former spouse had not yet received pension benefits from the Fund in excess of the
-33-
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 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 year unmediately prior to the Member's retirement, such
person(s) shall be entitled to a monthly benefit under the terms of the Ordinance, 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 (plus Regular
Interest) and the City's contributions on behalf of the
Member,
(2) Multiply that fraction by the monthly pension benefit which
would otherwise be payable to the dependent child, parent or
surviving spouse, and
(3) The difference between the result of the second step and the
monthly pension benefit which would otherwise be payable to
the dependent child, dependent parent or surviving spouse is
the monthly pension benefit which should be paid to the
dependent child, dependent parent or surviving spouse.
Since any pension benefit payable to a former spouse is derived from the Member's
pension, a former spouse's pension benefit shall not commence until the Member's
pension benefit commences
If a Member with respect to whom a former spouse has obtained a domestic relations
order purporting to be a qualified domestic relations order terminates employment
with the City and receives a return of contributions (plus Regular Interest) rather than
a pension benefit, the former spouse shall not receive a pension benefit, but shall
instead receive a percentage (or fixed dollar amount) of the returned contributions
(plus Regular Interest)
-34-
No court order shall be honored if it:
(1) Provides for any form of benefit or option not otherwise provided by
the Ordinance,
(2) Requires the Fund to provide increased benefits determined on the
basis of actuarial value, or
(3) Requires the payment of benefits to a former spouse that are required
to be paid to another former spouse.
D Unless otherwise expressly provided for in this Ordinance, the Board shall
not reduce an individual pension.
E No part of the corpus or income of the Fund shall ever revert to the Ciry or
be used for, or diverted to, any purpose other than for the exclusive purpose
of providing benefits to Members and their beneficianes in accordance with
the terms of this Ordinance.
Sec. 2-216 AMENDMENT OF ORDINANCE
The Ciry Council, consistent with the Constitution, the laws of the State of Texas,
and the Charter of the City of Fort Worth, shall have the power and authority to
amend any or all of the terms and provisions of this article, except where an
amendment in the City's contribution rate would require the issuance of tax-
supported bonds approved at an election of the qualified voters of the City of Fort
Worth.
Sec. 2-217 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
hereby preserved and continued in force and effect; provided, however, that in the
event of any conflict, the provisions of this Ordinance shall control
Sec. 2-218 PRERE UISITES TO ORDINANCE
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.
Sec. 2-219 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 of the
-35-
Fund shall have the right to sue the City with respect to this Fund for disability
sustained in line of duty, as heretofore defined, and by virtue of membership in the
Fund, the Member accepts the benefits provided by the Fund in lieu of any alleged
right at law to sue the Ciry or this Fund for damages. No heir or legal representative
of a Member who is inured m line of duty, which injury results in death, shall have
the right to sue the City for damages by reason thereof, but such heir or legal
representative shall accept 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 jurisdiction.
SECTION II
II 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
portion of said Ordinance was invalid, it would not have adopted such invalid part.
SECTION III
III ENGROSSMENT AND ENROLLMENT
The City Secretary of the City of Fort Worth is hereby directed to engross and enroll this Ordinance
by copying the caption and effective date of same in the minutes of the City Council of the City of
Fort Worth and by filing this Ordinance in the Ordinance records of said City
SECTION IV
IV EFFECTIVE DATE
This Ordinance shall be m full force and effect from and after the date of its adoption and it is so
ordained
ADOPTED this / l ,_ day of (~.u~-6f- , A D. 19 ~~
c~.~.
MAYOR OF THE
CITY OF FORT WORTH, TEXAS
-36-
A ST
CITY SECRETARY OF THE
CITY OF FORT WORTH, TEXAS
APPROVED AS TO
FORM AND LEGALITY
U "CITY ATTO OF THE
0 _ '~ CITY OF FORT WORTH, TEXAS
Date ~`~- 9,ff
-37-
APPENDIX I
MAXIMUM BENEFITS
Irimrtation of Annual Benefits.
Notwithstanding any other provisions of this Ordinance, the maximum annual benefit
payable in any calendar year to a Member of the Fund shall not exceed $125,000
2 Reduction to be made first from benefit paid b, other Mans.
Benefits provided to a Member under the Fund and under any other defined benefit plan or
plans maintained by the City shall be aggregated for purposes of determining whether the
hrnitahons in Sec. 1 of Appendix I are met. If the aggregate benefits payable from the Fund
and any other defined benefit plan or plans maintained by the City would otherwise exceed
those limitations, the reductions in benefits shall be made to the extent possible from the
other plan or plans.
3 Adjustments Upon Retirement.
a. If the annual benefit begins before a Member attains age sixty-two (62), the $125,000
limitation, as adjusted, shall be reduced m a manner prescribed by the Secretary of
the Treasury However, such adjustment shall not reduce the Member's annual
benefit below $75,000, if such Member's benefit begins after fifty-five (55), or the
actuarial equivalent of such $75,000 if benefits commence before age fifty-five (55)
Furthermore, no such adjustment shall reduce the annual benefit of a qualified police
or firefighter below $70,000, regardless of the age at which the benefit commences.
For purposes of this subparagraph, a "qualified police or firefighter" shall mean a
Member who retired with at least fifteen (15) years of credited service as a full-time
employee of the police or fire department (or both) including any credit for full time
service in the Armed Forces of the United States.
b If the annual benefit begins after a Member attains age sixty-five (65), the $125,000
lumtation, as adjusted, shall be increased so that rt is the actuarial equivalent of the
$125,000 limitation at age sixty-five (65)
c. The portion of a Member's benefit that is attributable to such Member's own
contributions is not part of the annual benefit subject to the limitations of Sec. 1
above Instead, the amount of such contributions is treated as an Annual Addition
to a qualified Defined Contribution Plan maintained by the City
-38-
4 A_nmual Adjustment to Limitations.
a. The $125,000 dollar limitation on annual benefits provided in Sec. 1 of Appendix I
and the $70,000 limitation provided m Sec. 3 of Appendix I (but not the $75,000
lunrtation provided m Sec 3 of Appendix I), shall be adjusted annually as provided
in section 415(d) of the Code pursuant to the regulations prescribed by the Secretary
of the Treasury The adjusted limitation is effective as of January 1 of each calendar
year
5 Interest Rate Assumptions.
a. For the purpose of ad~ustmg the annual benefit to a straight life annuity, the interest
rate assumption shall be five percent (5%) unless a different rate is required by the
Secretary of the Treasury
b For the purpose of ad~ustmg the $125,000 limitation after a Member attains age
sixty-five (65), the interest rate assumption shall be five percent (5%) unless a
different rate is required by the Secretary of the Treasury, and no adjustment for
mortality shall be made to the extent that a forfeiture does not occur at death.
6 No Adjustment m Certain Cases.
a. For purposes of Sec 4 of Appendix I, no adjustment under section 415(d) of the
Code shall be taken into account before the calendar year for which such adjustment
first takes effect.
b For purposes of Secs. 1 and 4 of Appendix I., no adjustment is required for the value
of qualified~omt and survivor annuity benefits, pre-retirement disability benefits,
pre-retirement death benefits, post-retirement medical benefits or post-retirement
cost-of-living increases made in accordance with section 415(d) of the Code and
Sec. 1 415-3(c) of the Income Tax Regulations.
7 Total Annual Benefits not in excess of $10.000
a. The Fund shall pay an annual benefit to any Member in excess of the Member's
maximum annual benefit otherwise allowed under Secs. 1 and 4 of Appendix I if:
(i) the annual benefit derived from the City's contributions to the Fund and all
other defined benefit plans maintained by the City does not in the aggregate
exceed $10,000 for the calendar year or for any pnor calendar year; and
(ii) the City has not at any time mamtamed a defined contribution plan m which
the Member participated.
-39-
r
b For purposes of this paragraph only, Member contributions to the Fund will not be
considered a separate def ned contribution plan maintained by the City
8 Less than ten (10.~,vears of membership or Service.
a. If a Member has less than ten (10) years of total pension service in the Fund at the
time the Member begins to receive benefits under the Fund, the $125,000 limitation,
as adjusted, shall be reduced by multiplying the limitation by a fraction in which the
numerator is the number of years of total pension service and the denominator is 10;
provided, however, that the fraction shall in no event be less than one-tenth (1/10th)
b If a Member has less than ten (10) years of employment with the City, the $10,000
lunrtation of Sec. 7 of Appendix I shall be reduced in the same manner as provided
in subparagraph a., above, except the numerator shall be the number of years of
employment wzth the Czty rather than years of total pension service.
c. To the extent provided m regulations prescribed by the Secretary of the Treasury, the
reductions described m tlus paragraph shall be applied separately with respect to each
change in the benefit structure of the Fund.
9 Participation m Both Defined Benefit and Defined Contribution Plans.
If a Member is or has been a participant m one or more Defined Benefit Plans and one or
more Defined Contribution Plans maintained by the City, the following provisions shall
apply
a. the sum of the Defined Benefit Plan fraction and the Defined Contribution Plan
fraction for any calendar year may not exceed 1 0
b the Defined Benefit Plan fractron for any calendar year is a fraction m which.
the numerator is the projected annual benefit of a Member, determined as of
the close of the calendar year pursuant to Sec 1 415-7(b)(3) of the Income
Tax Regulations, and
2 The denominator is the lesser of:
(i) the product of 1.25 multiplied by the maximum dollar limitation in
effect under section 415(b)(1)(A) of the Code, as adjusted, for the
calendar year; or
(ii) the product of 1 4 multiplied by the amount that may be taken into
account under section 415(b)(1)(B) of the Code for the calendar year
-40-
a.
c. The Defined Contribution Plan fraction for any calendar yeaz is a fraction in which.
1 the numerator is the suin of the Annual Additions to the Member's account
as of the close of the calendar year; and
2 the denominator is the sum of the lesser of the following amounts determined
for the calendar year and each pnor calendar year in which the Member had
service with the City
(i) the product of 1.25 multiplied by the dollar linutation m effect under
section 415(c)(1)(A) of the Code for the calendar year, determined
without regard to section 415(c)(6) of the Code; or
(ii) the product of 1 4 multiplied by the amount that may be taken into
account under section 415(c)(1)(B) of the Code for the calendaz year
For any calendar year beginning before January 1, 1987, the Annual
Additions shall not be recomputed to treat all Member contributions
as an Annual Addition.
d. If the sum of the Defined Benefit Plan fraction and the Defined Contribution Plan
fraction exceeds 1 0 in any calendar year for any Member of the Fund, the
administrator shall limit, to the extent necessary, the Annual Additions to the
Member's account for that calendar year If after limiting to the extent possible the
Annual Additions to the Member's account for the calendar year, the sum of the
Defined Benefit Plan fraction and the Defined Contribution Plan fraction still
exceeds 1 0, the administrator shall adjust the benefits under the Defined Benefit Plan
fraction so that the sum of both fractions shall not exceed 1 0 in any calendar yeaz for
the Member
10 Combining of Plans.
For purposes of determining the limits provided m Appendix I, all qualified Defined Benefit
Plans ever maintained by the City, whether terminated or not, shall be treated as one Defined
Benefit Plan, and all qualified Defined Contribution Plans ever maintained by the City,
whether terminated or not, shall be treated as one Defined Contribution Plan.
11 Internal Revenue Code Application.
Notwithstanding anything contained in Appendix I to the contrary, the limitations,
adjustments, and other requirements prescribed m Appendix I shall at all times comply with
the requirements of section 415 of the Code, as amended, and all regulations promulgated
under the Code, the terms of which are specifically incorporated into Appendix I by
reference.
-41-
''
12. No Increase in Benefits.
Appendix I shall not be construed to provide a greater benefit to any Member than the benefit
computed under Sec. 2-210.A. Furthermore, Appendix I shall remain in effect only to the
extent necessary to satisfy the requirements of section 415 of the Code or its successor
Thus, if section 415 of the Code is repealed or made inapplicable to governmental plans,
Appendix I shall be void.
13 Definitions.
The following words, terms, and phrases, when used in this Appendix, as may be amended,
shall have the meanings ascribed to them m this section, except where the context clearly
indicates a different meaning. The masculine pronouns, wherever used herein, shall include
both male and female persons.
A. "Annual Additions" shall mean the sum of the following amounts credited to a
Member's account or accounts under any Defined Contribution Plan or plans
maintained by the Crty for the calendar year
City contributions, and
2 Member contributions, other than rollover contributions from a plan
maintained by an employer other than the City; and
3 forfeitures, and
4 amounts allocated after March 31, 1984, to an individual medical account (if
any were to be established), as defined in section 415(1)(2) of the Code, that
is part of a pension or annuity plan maintained by the City
The amounts described in Paragraph (4) are not annual additions for the purpose of
computing the percentage lirrutation described in Sec. 1 of Appendix I. Furthermore,
nothing in Paragraph (4) shall be construed as requiring the payment of any medical
benefits from the Fund unless and until an amendment to the Fund to provide such
benefits has been duly made and approved by the Internal Revenue Service. For any
calendar year beginning prior to January 1, 1987, only that portion of Member
contributions equal to the lesser of Member contributions in excess of six percent
(6%) of 415 compensation or one-half (1/2) of Member contributions shall be
considered an annual addition. All Member contributions to the Fund or any other
qualified Defined Benefit Plan maintained by the City after December 31, 1986, are
treated as annual additions.
B "Annual BeneFt" shall mean the aggregate benefit attributable to Crty contributions
payable annually under the terms of the Fund exclusive of any benefit not required
to be considered for purposes of applying the limitations of section 415 of the Code
-42-
~ =e
<.. _S
r ~-
to the Fund, payable m the form of a straight life annuity commencing at age sixty-
two (62) with no ancillary benefits. In computing the limitations under the Fund, the
annual benefit is adjusted to the equivalent of such straight life annuity pursuant to
Sec. 1 of Appendix I.
C. "Defined Benefit Plan" shall mean a pension plan other than a defined contribution
plan.
D "Defined Contribution Plan" shall mean a pension plan which provides for an
individual account for each participant and for benefits based solely upon the amount
contributed to the participant's account, and any income, expenses, gams and losses,
and any forfeitures of accounts of other participants which maybe allocated to such
participant's account.
E. "415 Compensation" shall mean a Member's wages, salanes, and other accounts
received m connection with personal services actually rendered m the course of
employment with the City dunng a calendar year, but shall not include•
1 contributions made by the City to a plan of deferred compensation, or
simplified employee pension plan, to the extent such contributions are
excludable from the Member's gross income;
2. any distributions from a plan of deferred compensation regardless of whether
such amounts are includable in the gross income of the Member when
distributed, except any amounts received by a Member pursuant to an
unfunded, non-qualified plan to the extent such amounts are includable in the
gross income of the Member;
3 other amounts that received special tax benefits, such as premiums for group
term life insurance, to the extent that the premiums are not includable in the
gross income of the Member, or contributions made by the City, including
contributions toward the purchase of an annuity described in section 403(b)
of the Code (whether or not contributed pursuant to a salary reduction
agreement and whether or not the amounts are actually excludable from the
gross income of the Member), and
4 compensation m excess of $160,000, adjusted in the manner perrtutted under
section 401(x)(17) of the Code
F "Member's Account" shall mean any account or accounts established and
maintained for a Member with respect to the Member's total interest in a Defined
Contribution Plan or plans maintained by the City resulting from Annual Additions.
VEDALOI :BOA485/58000/44703. I
=a ~=
'City of Fort Worth, Texas
M'Ayor and Council CammunicAtian
Date Reference Number Log Name Page
8/11/98 **G-12297 02RETIRE 1 of 1
Subject RETIREMENT ORDINANCE AMENDMENT AND RESTATEMENT
RECOMMENDATION
It is recommended that the City Counci@ repeal Retirement Ordinance No 13428 and, in its place, adopt
the attached ordinance amending and restating the City Retirement Ordinance.
DISCUSSION
On April 28, 1998, the City Council approved M&C G-12195 and adopted Ordinance No 13428, an
amended and restated Retirement Ordinance, which made a number of changes to the previous
retirement ordinance. However, Ordinance No 13428 contained several clerical errors and provisions
that were materially different from the representations set forth in M&C G-12195 The attached
restatement corrects the following errors.
• Deletes the phrase that temporary employees will become members after 1000 hours of
service in a year; and
• Terminates a member's disability pension if the member fails to provide the required
documentation by the end of the calendar year
Also, this Retirement Ordinance Amendment and Restatement changes the effective date of the
provision, allowing a retired member who has remarried to elect to cover his or her surviving spouse to
April 21, 1998
MGj
Submitted for City Manager's F[JND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
a~P~ov~~
Charles Boswell 8511 ' 1 ~ CDUNCI~.
Originating Department Head:
A~1G 1 x '~96
Jim Keyes 6192 (from)
~P
~~~,
Additional Information Contact: ~~~
/`^'°~`
cf tine
City Secsetazy
,ity of Fart Wouth, Texas
George Nicolaides 536-6790
Bdopfet~ ard~nal~c~ No.~( 3