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HomeMy WebLinkAboutOrdinance 11608ORDINANCE NO. ~ 0 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, and 11412, CODIFIED AS r--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 1 RETIREMENT PLAN AND BENEFITS THEREUNDER FOR EMPLOYEES OF THEE -CITY OF FORT WORTH, AMENDING~-TI-iE DISABILITY PENSION REQUIREMENTS, INCLUDING NEW CONTINUED ELIGIBILITY RULES FOR MEMBERS ALREADY RECEIVING BENEFITS, AMENDING THE PROVISIONS APPLICABLE TO IN LINE OF DUTY AND NOT IN LINE OF DUTY DEATH BENEFITS, MAHING THIS ORDINANCE CUMULATIVE, PROVIDING A 5EVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS ~, M 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, and 11412, be and the same is hereby amended as follows: SECTION I. That Chapter 2, Article VI, Division I, Section 2-209, "Disability Pensions," 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, and after such amendment, said Section shall read as follows, to wit. t "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 performing 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. Such disability must exist for at least ninety (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 States (including the United States Merchant Marine), any of its allies or any other foreign country 3 Notwithstanding the provisions of Sec. 2-209.D and Sec. 2-209.E., no disability pension shall, at the time of commencement, exceed the member's rate of Earnings. 4 To assist the Board in making disability determinations, the City shall provide the Executive Director with City job descriptions and qualifications, related salary ranges, and other appropriate information as requested. S 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. 2-209, including review and determination of the member's eligibility for a disability pension. C. Qualification for Disabilit~Pension. A member shall not qualify for a disability pension as hereinafter provided unless one or more duly licensed and practicing physician(s) appointed by the Executive Director has determined that the member is not capable of performing the essential functions of the positions identified under Sec. 2-209.A.(i) and Sec. 2-209.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 first day of the month following the month in which such ninety (90) day period ends. -2- 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. 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 time. Any disability pension shall be terminated upon the Board's determination that the member is not disabled as defined in Sec. 2-209.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 injuries 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 denial 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 parties, and no appeal can be made therefrom. A member is entitled to a reasonable hearing (at which the member may appear in 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 City because of the member's inability to perform the essential functions of the member's position. Any such disability pension granted under this -3- Sec. 2-209 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 Disabilit~in Line of Duty 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 sixty-three one-hundredths percent (2.63%}, 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 two and seventy one-hundredths percent (2.70%). 2. As used in this Sec. 2-209.D and Sec 2-209.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 therev~iith, 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 sixty-three one-hundredths percent (2.63%), 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 two and seventy one-hundredths percent (2.70%). If a member becomes disabled while not in the line of duty before the member is Vested, then Sec. 2-211 shall apply -4- F Recovery from Disabilit If the Board determines 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 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 attainment of the Vested Retirement Date under the Ordinance equal to the amount which would have been payable under the provisions of Sec. 2-211 had the member terminated employment on the date the disability pension began. Any death benefits thereafter shall be determined in accordance with Sec. 2-210 G Report of Earned Income or Net Earnings from Self-Employment. 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 in the affidavit, including amounts paid to other affiliated entities for the benefit of the disabled member or to any relative of the disabled member If the Internal Revenue Service has approved an extension to -S- 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 bled. If the member's total receipt of Earned Income, Net Earnings from Self-employment, and City disability retirement benefits, not including any cost of living adjustment increase or increase in the formula, pension calculation shall exceed the member's annualized base hourly rate of pay at the time a disability pension was granted by the Board, then as soon as practicable, the Board shall reduce the amount of disability benefits to be paid to the member by the amount of such excess earnings. In reducing a member's disability pension due to such excess earnings, the Board shall consider the member's then current earnings, and attempt to recover and preclude any such excess earnings in the future. In the event that a member's disability pension is reduced in excess of the amount required, the Board shall pay such excess to the member For purposes of Sec. 2-209 G., base hourly rate of pay shall not include overtime, acting, assignment, holiday, longevity, educational incentive, safety award, incentive, shift differential or any other special or premium pay The Board shall withhold a member's disability pension 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 provides the required documentation, the Board shall cause the member's disability pension to be reinstated, subject to the other provisions of this Ordinance and including the payment of any previously withheld amounts, without interest. For purposes of Sec. 2-209 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." SECTION II. That Chapter 2, Article VI, Division I, Section 2-210, "Death Benefits," of the Code of the City of Fort Worth (1986), as amended, be and is hereby further amended by deleting Sub- sections A. and B., and substituting the following language in lieu there of, and after such amendment, said Subsections .shall read as follows, to wit "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 -6- which shall be seventy-five 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). Each dependent child of such member under age eighteen (18) shall be entitled to receive a monthly pension, the amount of which shall be Sixty-Five Dollars ($65.00), provided however, that if no surviving 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 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). The combined maximum monthly pension available to a surviving widow or widower and one or more children eligible to receive a benefit hereunder shall be either Three Hundred Seventy-Five Dollars ($375.00) or the member's accrued pension projected to the member's Normal Retirement Date, whichever is greater If there are dependent children who are entitled to receive Sixty-Five Dollars ($65.00) per month hereunder and the total payments to the dependent children and widow or widower would exceed the combined maximum monthly pension payable, the pension of the widow or widower shall be reduced so that the sum of the monthly payments shall not exceed the combined maximum monthly pension payable. When a dependent child receiving a benefit hereunder shall attain the age of eighteen (18) years, die or marry, the Sixty-Five Dollars ($65 00) monthly benefit thereafter shall be added to the pension of the widow or widower, but in no event shall the monthly pension of the widow or widower exceed either seventy-five percent (75%) of the member's accrued monthly pension projected to the member's Normal Retirement Date, or Two Hundred Fifty Dollars ($250 00), whichever is greater If a member who dies while in line of duty 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. 2-210.A., a member's pension on or after Normal Retirement Date shall be calculated using a multiplier of two and seventy one-hundredths percent (2.70%). B. While Not in Line of Duty -7- If a vested member dies before retirement, while not in 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 Sixty-Five Dollars ($65.00), provided, however, that if no surviving 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). The combined maximum monthly pension payable to a surviving widow or widower and one or more children eligible to receive a benefit hereunder shall not exceed the greater of One Hundred Fifty Dollars ($150:00) or the member's accrued pension. If the combined maximum monthly pension payable is the member's accrued pension and there are dependent children entitled to receive Sixty-Five Dollars ($65.00) each, and the total of payments to the dependent children and the widow or widower would exceed the member's accrued pension, the pension of the widow or widower shall be reduced so that the sum of the monthly payments shall not exceed the member's accrued pension, provided that the. pension of the widow or widower shall not be reduced to less than Ninety Dollars ($90:00) per month. If after the reduction of the pension of the widow or widower as hereinabove provided, the sum of said pension and the payments to eligible dependent children exceed the member's accrued pension, the pension of the widow or widower shall be Ninety Dollars ($90.00) and the balance up to the amount of the member's accrued pension shall be distributed in equal portions among the eligible dependent children, up to the maximum of Sixty-Five Dollars ($65.00) per dependent child as herein provided. When a dependent child receiving a benefit hereunder shall attain the age of eighteen (18) years, die or marry, the monthly benefit to that child shall be redistributed in equal portions among the remaining eligible dependent children up to the maximum monthly payment of Sixty-Five Dollars ($65.00) per dependent child. Any excess thereafter shall be added to the pension of the widow or widower, provided that in no event -8- shall the monthly pension of the widow or widower exceed seventy-five percent (75%) of the member's accrued pension. If the maximum monthly pension payable is One Hundred Fifty Dollars ($150.00), the pension of the widow or widower shall be Ninety Dollars ($90.00) and the. balance shall be divided equally among the eligible dependent children. When the last eligible child either attains the age of eighteen (18) years, dies or marries, said balance shall be added to the pension of the widow or widower If a vested member who dies before retirement but not in the line of duty leaves no widow, 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, but not less than One Hundred Fifty Dollars ($150 00). For purposes of Sec. 2-210.B., a member's accrued pension shall be calculated using a multiplier of two and sixty-three one-hundredths percent (2.63%), unless the member had reached the member's Normal Retirement Date prior to death, in which event the multiplier shall be two and seventy one-hundredths percent (2.70%)." SECTION III. 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. SECTION IV 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 -9- ~~ of this Ordinance that any portion of said Ordinance was invalid, it would not have adopted such invalid part. SECTION V PREREQUISITES 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. SECTION VI. EFFECTIVE DATE This Ordinance shall be in full force and effect from and after the date of its adoption, and it is so ordained. ROVED AS )O F AND LEGALITY City Attorney Date. ~ ~ 3 0 ( `~ ~-- ADOPTED ~~ ~- EFFECTIVE. ~ j -~ c:\ggs\boa485\58000\ordinanc.012 -10- ~i r City of Fort Worth, Texas Mayor and Council C'cn;~tmunication DATE ~ REFERENCE NUMBER LOG NAME PAGE 07/05/94 **G10713 13DISAB 1 of 2 SUBJECT AN ORDINANCE AMENDING THE DISABILITY PENSION PROVISIONS OF THE CITY RETIREMENT ORDINANCE RECOMMENDATION It is recommended that the City Council adopt the attached ordinance amending the City Retirement Ordinance The proposed ordinance revises the disability pension provisions, including amending the definition of disability, clarifying the disability benefits for a member who is disabled while not in the line of duty, and clarifying the limitations on outside earnings a disabled member may receive The proposed ordinance also revises the "in line of duty" and "not in line of duty" death benefits in light of the increased multiplier previously adopted DISCUSSION The Board of Trustees of the Employees' Fund has recommended several changes to the Retirement Ordinance, primarily relating to the disability provisions In addition to a number of minor changes to improve or clarify current ordinance provisions, the following principal changes are included in the proposed ordinance (1) The definition of disability is amended to provide that a member is disabled if the member cannot perform the essential. functions of any City position which the Board determines is reasonably comparable to the position .previously held by the member, utilizing information provided by the City Personnel Department (2) The continuation of a disability pension (whether granted before or after the enactment of the proposed ordinance) is subject to the new disability provisions including the submission of required medical and income reports (3) The proposed ordinance clarifies that a disability pension cannot be granted (or continued) while a member is working for the City (4) Anon-vested member who is disabled while "not in line of duty" will receive a return of the member's contributions plus interest iA~ Printed on recycled paper City of Fort i~orth, Texas Mayor and Council Communication DATE 07/05/94 REFERENCE NUMBER **G10713 LOG NAME 13DISAB PAGE 2 of 2 svasECT AN ORDINANCE AMENDING THE DISABILITY PENSION PROVISIONS OF THE CITY RETIREMENT ORDINANCE (5) A member who recovers from a disability and is reemployed by the City shall not receive Credited Service for the period of disability, but the period of disability shall be used to calculate when the member attains higher Normal Date and Special Date (6) The requirements relating to the tax return information that a disabled member must submit to the Executive Director by May 1 and the method through which a member's disability pension will be reduced due to outside earnings are modified (7) The proposed ordinance amends the "in line of duty" death benefit provisions. to provide that the 2 7% multiplier shall be used (8) The proposed. ordinance amends the "not in line of duty" death benefit provisions to provide that the 2 63% multiplier shall .be used unless the member had attained higher Normal Date prior to death, in which event the multiplier shall be 2 70% FISCAL INFORMATION/CERTIFICATION The Board of Trustees certifies that these changes are administrative in nature and will have no material actuarial impact on the funding of the plan CB q Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPRQVED Charles Boswell 8500 Originating Department Head: ~~ 1 CjO~~~j L Charles Boswel[ 8500 (from) J~~ 5 1994 For Additional Information l~t~/ ~~~ of the Secretar Cit Contact: y y City of Fort `North, Texas Charles Boswell 8500 #~~1 Printed on recycled paper