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HomeMy WebLinkAboutOrdinance 12686'~ ORDINANCE NO. ~Ep y ~ 02 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, AND 11716 CODIFIED AS CHAPTER 2, ARTICLE VI, DIVISION 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 MULTIPLIER CHANGE IN THE AMOUNTS OF RETIREMENT, DISABILITY, AND VESTED RETIREMENT PENSIONS, CONTINUING COST OF LIVING ADJUSTMENTS, MAKING THIS ORDINANCE CUMULATIVE, PROVIDING FOR A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS That Ordinance No. 2999, passed and adopted by the City Council of the City of Fort Worth on the 24th day of September, A.D 1952, as amended by Ordinance Nos. 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, and 11716 be and the same is hereby amended as follows. SECTION 1 That Chapter 2, Article VI, Division I, Section 2-203 "Members' Contributions," of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by substituting the following language m lieu thereof, to wit: "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 Earnings and all other Members shall contribute six and nuiety-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 during the period covered by such payment, except as to the benefits provided by the Fund. B The contribution percentage of all Members may be raised at any time from the amount stated in this section to a higher amount, as regulated by article 6243k of the Texas Revised Civil Statutes, as amended, upon a vote in 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 City Council, provided that such raise shall not be effective unless the City Council shall, by ordinance or resolution, also agree that the City shall increase its contribution to the Fund by at least an equal percentage increase, although the City may phase-in its increased contribution over a period of up to five years." SECTION 2. That Chapter 2, Article VI, Division I, Section 2-204 "City's Contributions," of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by substituting the following language in lieu thereof, to wit: "Sec. 2-204 CITY'S CONTRIBUTIONS For Police Officer Members only, effective October 1, 1996, the City shall contribute to the Fund nine 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 nine and six one-hundredths percent (9 06%) of their Earmngs; effective October 1, 1997, the City's contribution shall increase to nine 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 right of the City Council, through its budget appropriation, to contribute an additional amount over and above the -2- Members' contributions, in accordance with article 6243k of the Texas Revised Civil Statutes, as amended." SECTION 3 That Chapter 2, Article VI, Division I, Section 2-208 "Retirement Pension," Paragraphs A and B, of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by substituting the following language ~n lieu thereof, to wit: "A. ('~mmencement of Retirement Pensions and Adustment to Prior Pensions. Pensions Commencing L7pon Normal Retirement Date. 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 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 approval of the member's pension by the Board. 2. Pensions Commencing Upon Special Retirement Date. A Vested Police Officer member who retires upon 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%) 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 approval of the member's pension by the Board. 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 pension benefits pnor to October 1, 1993, the new Base -3- 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-hwidredths percent (2.75%) of the member's Compensation Base multiplied by the member's total years of Credited Service to date of actual retirement. For all members, all pnor cost of living 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 ('ost of Living Adjustment. Annually, effective January 1, 1997, 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), or to their survivors, by adjusting the amount of the actual pension up or down by the amount of the percentage change in the Pnce 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 yeaz, either the member or any survivor must have been receiving benefits by September 30th of the prior year " SECTION 4 That Chapter 2, Article VI, Division I, Section 2-209.D 1 "Disability m Lme of Duty," of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by substituting the following language m lieu thereof, to wit: "D Disability in Line of Duty If a member becomes disabled as above defined while m the 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 Dollazs ($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, m which case the specified percentage shall be three percent (3 0%)." -4- SECTION 5 That Chapter 2, Article VI, Division I, Section 2-209.E "Disability Not in Line of Duty," of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by substituting the following language m lieu thereof, to wit: "E. Disability Not in Line of Duty If a Vested member becomes disabled as above defined while not in the 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, ~n which case the specified percentage shall be three percent (3 0%) " SECTION 6. That Chapter 2, Article VI, Division I, Section 2-211 "Termination Benefits and Veshng," of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by substituting the following language in lieu thereof, to wit. "A. Contribution Refund Prior to Vesting. Any member who is voluntarily 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 Regular 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. A Vested member who is voluntarily or involuntanly separated 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 (SO) -5- 2 A Vested Termination Pension shall be an annual 1-fe 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 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%). 3 The amount of reduction for early commencement of a Vested Termination Pension prior 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. ('ontribut~on Refund After Vest~n~ m Lzeu of Vested Termination Pension. Any Vested member who is voluntarily or involuntarily sepazated 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 in 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 prior to commencement of retirement income, but by so doing, the member shall forfeit all rights under the Fund and thereafter be entitled to no further benefits hereunder " SECTION 7 That provisions of this Ordinance shall be cumulative of and in addition to all other ordinances of the Cary 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. SECTION 8. If any provision, section, part, subsection, sentence, clause, phrase or paragraph of this Ordinance be declared invalid or unconstrtutionai, the same shall not affect any other portion or -6- 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 ~t had known at the time of the passage of this Ordinance that any portion of said Ordinance was ~nval~d, ~t would not have adopted such invalid part. SECTION 9 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 Ordnance have been done, have happened and have been performed in proper and lawful time. SECTION 10 This Ordinance shall be in full force and effect from and after October 1, 1996 and it is so ordained. APPROVED AS TO FORM AND LEGALITY ~E%2~ G~~ City Attorney Date 1~- 2 ~ ' I~,~ ADOPTED ~-t~ u ' ~I C~ EFFECTIVE. VEDALO 1;BOA485/58000/4869 1 -7- ~'aty of~ort ~ortD~ T"exsas 1~I1~¢y~~~° ~~¢~l ~~un~¢~a~ cC~~a¢~a¢~a~¢a~~n~a~~¢ LOG NAME 09/24/96 G-11612 13PENSON 1 of 2 SUBJECT AN ORDINANCE AMENDING THE PENSION MULTIPLIER AND CONTRIBUTION PERCENTAGES OF THE CITY RETIREMENT ORDINANCE RECOMMENDATION It is recommended that the City Council adopt the attached Ordinance amending the City Retirement Ordinance DISCUSSION The Board of Trustees of the Employees' Retirement Fund has recommended several changes to the Retirement Ordinance, primarily relating to increasing the pension multiplier and increasing both City and Member contributions The following principal changes are included in the proposed Ordinance 1 The normal retirement multiplier ("Rule of 80" and "65 and 5") is increased from 2 7% to 3 0% 2 The special retirement multiplier for Police Officers ("25 and Out") is increased from 2 63% to30% 3 The disability retirement multiplier is increased from 2 63% to 2 75% 4 Members currently receiving benefits have their multiplier increased to 3 0% if they were receiving pension benefits prior to Oct 1, 1993 or if they retired under the Rule of 80, 65 and 5, or 25 and Out, for all others, the multiplier is increased to 2 75% 5 Police Officer contributions are increased from 6 15% to 7 43% of Earnings 6 Contributions for all other Members are increased from 5 67% to 6 95% of Earnings n 7 City contributions (as a percentage of Members Earnings) are increased over time as „ follows DATE October 1, 1996 October 1, 1997 October 1, 1998 October 1, 1999 POLICE OFFICER MEMBERS 9 78% 10 34% 10 9% 1 1 46 OTHER MEMBERS 9 06 9 62% 10 18 % `~ 10 74% ~-" p 1~ Printed on RecyGed Paper ' City of Fort Wordy Texas Mayor and Council Communication DATE 09/24/96 REFERENCE NUMBER G-11612 LOG NAME 13PENSON PAGE 2 of 2 SUBJECT AN ORDINANCE AMENDING THE PENSION MULTIPLIER AND CONTRIBUTION PERCENTAGES OF THE CITY RETIREMENT ORDINANCE FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies that the funds required for the City's increased contributions to the Retirement Fund are available in the City's operating budgets for FY 1996- 97, as appropriated CB f Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) _ Charles Boswell 85.11 APPRVV Originating Department Head: CITY Co~~jt~ v Jim Keyes 8517 (from) CFP `~~ GGOI 513110 0909800 ' ~ For Additional Information ~ ` ~ ~:~t'~+"'`-~`-~ f ~e ~ Contact: C relarY o d Fort RroTth, ~~~ Cit George Nicolaides 536-6790 y Printed on Recycled Paper ~~~t~~ - Adopted Ordmanre No.