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HomeMy WebLinkAbout~Master - Amending Chapter 32 of Municipal Code; Providing a Retirement System 1 , ` ORDINANCE NO. 2021 AN ORDINANCE AMENDING CHAPTER 32 OF THE MUNICIPAL CODE OF THE CITY OF AMES, IOWA, BY REPEALING ALL OF CHAPTER 32 THEREOF; AND PROVIDING A RETIREMENT SYSTEM FOR EMPLOYEES OF THE MUNICIPAL UTILITIES OF THE CITY OF AMES, IOWA. Be It Ordained By The City Council of the City of Ames, Iowa, as follows : Section 1. That Chapter 32 of the Municipal Code of the City of Ames , Iowa, be and the same is hereby repealed and the following be and the same is hereby enacted in lieu thereof to be known as Chapter 32 of the Municipal Code of the City of Ames, Iowa, with sections and sub- sections thereof as hereinafter designated : CHAPTER 32 UTILITY RETIREMENT SYSTEM 32-1 Creation. A retirement system to be operated and maintained in accordance with the provisions of this chapter is hereby created. 32-2 Name. This retirement system shall be known as the Ames Municipal Utility Retirement System. 32-3 Purpose. The purpose of this retirement system is to provide economy and efficiency by furnishing an orderly means whereby employees who have become aged or otherwise incapacitated may be retired without hardship, and to provide certain benefits in connection therewith. DEFINITIONS 32-4 Definitions. The following words and phrases, unless a different meaning is clearly indicated by the context, shall have the following respective meanings . 32-4. 1 City. The City of Ames, Iowa. 32-4. 2 Utility. Utility shall include and be limited to any waterworks, gas, electric light and power and sewage treatment or water pollution control plants managed, operated and owned by the City of Ames, Iowa. 32-4. 3 Board. The board of trustees at any time acting hereunder. 32-4.4 Employee. A person in the employment of the City of Ames, Iowa, on or after the effective date of this chapter, who regularly receives or is expected to regularly receive in excess of ten per cent (10%) of his compensation from the Utility of the City of Ames, Iowa for personal services rendered in connection with the operation, main- tenance or management of said Utility. 32-4. 5 Physical Examination. Each applicant for employment shall be required to pass a physical examination, by a physician approved by the Board, before such applicant becomes an employee as defined in this chapter. 32-4.6 Disability. The inability of an employee to perform the duties of any assigned position within any utility for any period exceeding sixty (60) days because of mental or physical injury or disease which is not self-inflicted, or due to drugs or alcoholism or incurred in the commission of a felonious act. An employee shall be . 1 2 - considered disabled only during periods for which the Board shall re- ceive both of the following: (a) Written certification by at least two licensed and prac- ticing physicians approved by the Board that such employee is disabled and unable to reasonably perform the duties of any assigned position within any utility. (b) Written certification by the administrative officer of the employee that such employee (i) is not separated from the employment of the Utility and (ii) is disabled and is consequently not entitled to any earnings. 32-4. 7 Earnings. Compensation paid by the Utility to an employee for personal service. 32-4. 8 Highest Average Earnings. The monthly average earnings during the sixty (60) highest paid consecutive months out of the one hundred and twenty (120) months immediately preceding the date of retirement or date disability was incurred. 32-4. 9 Effective Date. The effective date as referred to in this chapter shall be December 5, 1945, and no benefits other than disabil- ity or death shall be paid prior to January 1, 1947. 32-4. 10 Date of Revision. This chapter was revised in its entirety as of February 1, 1964. 32-4. 11 Prior Service. The period beginning on the date upon which any employee was first employed by the Utility and ending on the effective date hereof excluding any intervening periods during which such employee was separated from employment following a resignation, dismissal, lay-off or expiration of any term of appointment, but not excluding military duty as herein defined. 32-4. 12 Current Service. The period beginning on the later of the dates upon which any employee is first employed by the utility and the effective date December 5, 1945, and ending on the date of the latest separation from employment, excluding any prior periods of employment for which separation benefits were withdrawn, and any inter- vening periods during which such employee was separatedKfrom employment following a resignation, a dismissal or lay-off in excess of 30 days, but not excluding military duty and periods of disability as herein defined. 32-4. 13 Military Duty. Military duty shall be service in the armed forces of the United States of America or State of Iowa during a period of declared war or national or state emergency, provided the employee was employed by the Utility immediately prior to entry into such armed forces, and further provided that the employee was released from such service and returned to employment by the Utility within sixty (60) days of the date on which he shall have the right to release from such armed service. 32-4. 14 Retirement Income. A series of equal monthly payment pay- able to a retired employee, the first such payment to be made on the last day of the month following the retirement date and the last payment to be made on the last day of the month in which death of the retired employee occurs. 32-4. 15 Beneficiary. Any person who shall have been designated in writing by any employee to receive all or part of his death benefits. 32-4. 16 Regular Interest. 3/ per year compounded annually as of December 31 each year. 32-4. 17 Gender and Number. Except when otherwise indicated to the contrary, any masculine terminology used herein shall also include feminine and in the definition of any term herein the singular shall also include the plural. EMPLOYEES COVERED 32-5 Employees Included. All persons who are employees as defined herein on the Date of Revision and all persons who thereafter become employees before attaining age 55 shall be included in this retirement system. Any applicant for employment who shall be found to have previously incurred a disability or who has a physical handicap which may lead in any way to the incurrence of a future disability cannot become an employee as defined in this chapter unless he signs a waiver, in the form designated by the Board, of the disability benefit and rights herein provided, such waiver to be delivered to the Board within thirty (30) days following the date of employment. Acceptance of such waiver by the Board shall permit the employment of the applicant and his inclusion in all the pro- visions of this chapter except with regard to the disability benefit and rights. In case of the incurrence of disability after employment and prior to completion of ten (10) years of service credits, an employee who has signed such a waiver shall be treated as a separation. CONTRIBUTIONS 32-6 Contributions by Employees. Each employee shall contribute five per cent (5/) of each payment of his earnings during periods of current service until he attains age 65 or earlier retires and excluding periods of military duty and disability. Employee contributions shall be deducted from earnings paid to each employee and shall immediately be credited to the retirement fund. The contributions of each employee shall be accumulated in a separate account and regular interest credited thereon. 32-7 Utility Contributions. The Utility shall make contributions which, in addition to the contributions of employees, are required to provide the benefits under this retirement system. The annual contributions of the Utility are to be equal to the normal cost for the year required to provide benefits not provided for by employee contributions, plus the amount necessary to amortize the remaining unfunded past service requirement in accordance with actuarial principles. SERVICE CREDITS 32-8 Credits for Prior Service. For prior service each eligible employee shall be credited with the number of completed years of such service. 32-9 Credits for Current Service. For current service each employee shall be credited with the number of years, with decimal fraction to the nearest completed month, during which he contributed to the retirement system, was on military duty and was disabled as herein defined, but not to exceed in any case a period ending upon the attainment of age 65. 4 RETIREMEIlT BENEFITS 32-10 Normal Retirement Date. The normal retirement date shall be the first day of the month following the month in which an employee in ser- vice or a disabled employee attains age 65. Each such employee shall be retired upon attaining his own retirement date, except that the City Council may grant permission for extension of his employment for a period of up to one year only, upon recommendation of his administrative officer. 32-11 Normal Retirement Income. Each employee retired on his normal retirement date shall be entitled to a monthly normal retirement income equal to one and one-third per cent of his highest average earnings for each year of credited prior service and current service; provided, how- ever, that in no event shall the normal retirement income exceed, with prior service credits, fifty per cent (50/O) of highest average earnings and, without prior service credits, sixty per cent (60%) of highest average earnings. 32-12 Re-employment After Normal Retirement. If an employee receiving a normal retirement income is re-employed by the Utility, such income payment shall cease. Upon his subsequent retirement, the original normal retirement income payments shall be resumed and no additional benefits shall be provided. 32-13 Early Retirement Date. The early retirement date shall be the first day of any month after an employee attains age 55 and completes at least ten years of service credits and before his normal retirement date. An employee is entitled to retire or may be retired on his early retirement date. 32-14 Early Retirement Income. Each employee who retires or is retired on his early retirement date shall be entitled to a montly retirement income determined in the same manner as the normal retirement income based upon his service credits to his early retirement date, and actu- arially reduced according to the number of months his early retirement date precedes his normal retirement date. 32-15 Re-employment After Early Retirement. If an employee receiving an early retirement income is re-employed by the Utility, such retire- ment income payments shall cease. Upon his subsequent retirement, his retirement income shall be determined as if he were then first retired based upon his credited service at the time of his prior retirement, plus the credited service following the date of subsequent retirement. -- DISABILITY BENEFITS - 32-16 Disability Accrual Date. Disability benefits shall begin to accrue on the disability accrual date which is the sixty-first (61st) day after the date the disability was incurred, unless one of the following condi- tions exist: (a) Written application for such benefits was not received by the Board within thirty (30) days after such accrual date, in which case benefits shall begin to accrue on the day thirty (30) days prior to the receipt of such application, or (b) All earnings have not ceased to be payable to such employee on such accrual date in which case benefits shall begin to accrue on the day following the day for which the last payment of earnings is made by the City. 32-17 Disability Benefit, Each employee incurring a disability as herein defined shall be entitled -to a monthly disability benefit of fifty per cent (501) of his highest average earnings. The benefit shall continue during the period of disability until the day upon which the first of the following occurs : (a) Disability ceases in accordance with the certification of a physician approved by the Board. (b) Earnings again become payable. (c) Employee refuses to submit to a reasonable physical exam- ination by any physician approved by the Board. (d) Employee attains age 65 or dies. 32-18 Payment of Disability Benefits. All disability benefits shall be payable once a month as of the end of each calendar month during which any disability benefits accrued, and payments for fractional parts of a month shall be determined by prorating the monthly benefit for the total number of days in the month during which benefits are payable. 32-19 Workmen' s Compensation and ,social Security. Notwithstanding any provision to the contrary, if any employee receives or is entitled to receive any compensation under and by virtue of the "Workmen ' s Compen- sation Act ", and any primary disability benefits under and by virtue of "Title II of the Social Security Act", the disability payments due under this system shall be reduced by the amounts due under said acts . DEATH BENEFITS 32-20 Date of Death. As of the date of death of any employee in service or of any disabled or retired employee, the beneficiary shall be entitled to the death benefit as herein provided. 32-21 Death Benefits. The amount of a death benefit shall be as follows : (a) Upon the death of an employee in service an amount equal to the sum of his accumulated contribution and regular interest accumulated thereon, or $1, 000. 00, whichever is greater at the date of death of such employee. (b) On the death of a disabled or retired employee, the excess of the death benefit which would have been paid had the employee died i:n service on the date of retire- ment, over the sum of all payments made to such disabled or retired employee. 32-22 Payment of Death Benefits. Death benefits shall be paid in a sin- gle cash sum unless the employee prior to his death shall have designated that his death benefit shall be paid to his beneficiary in monthly in- stallments of not less than $20.03 per month, in which event a sum equal to the death benefit which would otherwise have been payable as a sirr5le cash sum shall be paid as so designated. Whenever any death benefit is payable in a single cash sum, it shall be paid to the beneficiary as soon as practicable after receipt and approval by the Board of a certi- fied copy of the death certificate. SEPARATION BENEFITS 32-33 Separation Benefits. Any employee who ceases to be an employee and who, on the date of application for such benefits is not retired, 6 7 or eligible for early retirement, shall be entitled to a separation benefit equal in amount to the accumulated contributions and regular interest accumulation, of the employee as of the date of separation from employment, less any disability benefit payments; provided, how- ever, that each employee covered by the system prior to the Date of Revision shall have the right to elect, to receive his accumulated con- tribution made since the date of Revision and to retain a vested right to a retirement income deferred at least to age 55 equal to the amount computed as if he terminated on the Date of Revision in accordance with section 32-20 of the system in effect prior to the Date of Revision in lieu of the above separation benefit. 32-24 Payment of Separation Benefits. Separation benefits shall be paid in a single cash sum as soon as practicable after receipt by the City 's finance officer of a written notice from the employee 's administrative officer that such employee has been separated from employment. MISCELLANEOUS RIGHTS 32-25 Employment Rights. Nothing contained in this chapter shall be construed as a limitation of the right of the Utility to discipline or discharge any employee with or without cause. 32-26. Non-Alienation of Benefits. No benefit payable at any time under the retirement system shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment, garnishment, or encumbrance of any kind . Any attempt to alienate, sell, transfer, assign, pledge or otherwise encumber any such benefit, whether presently or thereafter pay- able, shall be void. No retirement income nor the retirement fund, shall in any manner, be liable for or subject to the debts or liabilities of any employee or retired employee entitled to any retirement income. if the employee or retired employee shall attempt to alienate, sell transfer, assign, pledge, or otherwise encumber his benefits under the plan, or any part thereof, or if by reason of his bankruptcy or other event hap- pening at any time, such benefits would devolve upon anyone else or would not be enjoyed by him, then the Board, in its discretion, may terminate his interest in any such benefit and direct it to be held or applied to or for the benefit of such person, his spouse, children or other dependents, or any of them in such manner as the Board may deem proper, 32-27, Legal Incompetence. If a retired or disabled employee or bene- ficiary receiving payments is under legal incompetence, payments may be made at the discretion and direction of the Board to him directly or to his spouse, his relative by blood or marriage, his legal repre- sentative, or to any other person who is deemed to be reliable and agrees to use the payment for the maintenance and support of the person under legal incompetence. The Board shall not be required to see to the application of any such payment and the payee ' s receipt shall be the complete discharge of the liability for the payments, BOARD OF TRUSTEES 32-28 Board of Trustees. The retirement system shall be construed to be a trust and shall be administered by a 'board of trustees composed of: (1) the city' s chief finance officer, (2) two city councilmen appointed by the mayor with the approval of the council, (3) three elected employees, one elected by the water utility employees, one elected by the electric utility employees and one elected by the sewage treatment employees at elections to be held by the board of trustees, (4) the city treasurer and the city attorney to be ex officio members without voting power. 7 32-29 Terms of Office of Trustees. The terms of office for the first board of trustees shall be as follows: (a) City ' s finance officer (b) One councilman for two years and one for one year. (c) One employee from the electric utility for one year and one employee from the water utility for two years and one employee from the sewage treatment plant for three years. At the expiration of these respective terms all members shall serve terms of three years each or until prior resignation, death or disqualifica- tion. 32-30 Compensation of Trustees. All trustees shall serve without compen- sation but shall be reimbursed for any reasonable expenses or for any amount of earnings withheld because of attendance at a board meeting. 32-31 Voting by Trustees. Each trustee shall be entitled to one vote, except ex officio members, and at least the approval of the majority of the six voting trustees shall be necessary for every decision or action by the board of trustees. 32-32 Powers and Duties of the Board of Trustees. The board of trustees may adopt such rules and actuarial tables, and employ such agents, phy- sicians, accountants, actuaries or clerical assistance as it may deem necessary. Decisions made by a majority of the six voting trustees not inconsistent with the provisions of this chapter shall be binding and conclusive on all persons. The board shall be entied to rely upon the records of the city as to the service, age, or earnings of any employee or as to any other information pertinent to any calculation or deter- mination under this retirement system. The board shall invest funds of the retirement system not currently needed for current costs in investments proper for the funds of the City of Ames, Iowa, under the laws of the State of Iowa, and the board may sell any security belonging to the retirement system. 32-33 Audits and Actuarial Valuations. The Board shall cause the accounts of the retirement system to be audited annually by a certified public accountant and shall submit an annual statement to the City Council as soon after the end of each calendar year as is possible. Such statement shall include a balance sheet showing the financial con- dition of the system as of the end of the calendar year, a statement of receipts and disbursements during such year, a detailed statement of investments, and such additional statistics as are deemed necessary for a proper consideration of the financial condition of the system and shall annually prepare a report for each employee of his accumulated contributions, and regular interest accumulated thereon. The Board shall, in 1949 and at least once in each five year period thereafter, cause to be made an actuarial valuation of the retirement system showing the actuarial status of the system, including the contri- butions required, and shall make a report to the City Council and officials. RETIREMENT FUND 32-34 Retirement Fund. All the contributions made under the provisions of the retirement system, together with the income thereon, shall con- stitute the funds of this system and such funds shall be held to pay the benefits, retirement incomes and expenses of administration of this system and shall not be used for any other purpose. 32-35 Treasurer of Retirement Fund. The city treasurer shall be the treasurer of the retirement system and shall furnish a corporate surety bond to indemnify the board of trustees for any loss which may result from any action or failure to act on the part of such treasurer or of his agents. The bond shall be in such amount as the Board may designate and all reasonable charges for such bond shall be paid from the retire- ment fund. All the funds of the retirement system and all securities belonging thereto shall be deposited with the city treasurer. All payments of the funds of the retirement system shall be made through the city treasurer only upon vouchers signed by the city clerk and only as authorized by the board of trustees. 32-36 Bond of City Clerk. The city clerk shall furnish a corporate surety bond to indemnify the board of trustees for any loss which may result from any action or failure to act on the part of such city clerk or of his agents. The bond shall be in such amount as the trustees may designate and all reasonable charges for such shall be paid from the retirement fund. Section 2. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 3. This ordinance shall be in full force and effect from and after February 1, 1964 and its passage and publication as provided by law. Passed this 18th day of February 1964. M. W. Jo an, City Clerk Pearle P. DeHart, Mayor February 4, 1964: Moved by Judge and seconded by Pasley Ordinance No. 2021 be passed on its first reading. Voting Aye: Judge, Pasley, Eschbach, Bledsoe, Fisher Voting Nay: None Absent: Armstrong Moved by Judge and seconded by Pasley the rules governing the passage of ordinances be suspended, the second and third readings be omitted and Ordinance No. 2021 be placed for final passage. Voting Aye: Judge, Pasley, Bledsoe Voting Nay: Eschbach, Fisher Absent: Armstrong February 18, 1964: Moved by Eschbach and seconded by Pasley Ordinance No. 2021 be passed on its second reading. Voting Aye: Armstrong, Judge, Pasley, Eschbach, Bledsoe, Fisher Voting Nay: None Absent: None • i• ti - Moved by Eschbach and seconded by Fisher the rules governing the pass- age of ordinances be suspended, the third reading be omitted and Ordi- nance No. 2021 be placed for its final passage. Voting Aye: Armstrong, Judge, Pasley, Eschbach, Bledsoe, Fisher Voting Nay: None Absent: None Moved by Judge and seconded by Bledsoe Ordinance No. 2021 do now pass. Voting Aye: Armstrong, Judge, Pasley, Eschbach, Bledsoe, Fisher Voting Nay: None Absent: None Mayor DeHart declared Ordinance No. 2021 duly passed.