HomeMy WebLinkAbout~Master - Amending Chapter 36 of Municipal Code; Relating to Retirement System r
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AN OR.DINAINCE AtvIENDIT_TG CHAPTER 36 ; RF.PE.ALING 7.RTICLE X; ESTT-�B-
LISHING A NEW ARTICLE X: TO BE DES.IG:'dATED"RETIREMENT SYSTEM
OF THE MUNICIPAL CODE OF THE CITY OF Kr4ES IOKA; INCLUDING
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DEFINITION OF TERMS : ORGANIZATION AND RESPONSIBILITY OF A �
BOARD OF TRUSTEES; AND AD!143.NIS'1'RhTZQN OF THE RETIREMETJ`1° FUND;
• REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT
HEREWITH AND ESTABLISHING AN EFFECTIVE DATE.
IT IS ORDAINED BY THE CITY COUNCIL OF THE CITY OF AMRS, IOWA:
Section 1. Article X of Chapter 36 of the Municipal Code of
the City of Ames, Iowa, as hitherto existing is hereby repealed.
Section 2. A new article to be designated Article Y of
Chapter 36 is hereby added to. the Municipal Code of the City of
Ames, Iowa, as follows:
DIVISION 1. GENERALLY
Sec. 36-10001. Reestablished. A retirement system to be
operated and maintained in accordance with the provisions
of this article is hereby reestablished.
Sec. 36-10002. Title. This retirement system shall be
known as the Ames Municipal Utility Retirement System.
i Sec. 36-10003 . Purpose. The purpose of this retirement
system is to provide economy and efficiency by furnishing
an orderly means whereby- employees, who have become agea or
otherwise incapacitated may be retired without hardship,
and to provide certain benefits in connection therewith.
Sec. 36-10CCi4 Definitions. The following words and phrases,
unless a different meaning is clearly indicated by the con-
text, have -the following respective meanings:
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(1) Beneficiary. Any person who has been des-
ignated in writing by any employee to receive all or
part of his death benefits.
(2) Board: _ The.board of trustees at any time
acting hereunder.
(3) Creditable service. The period beginning on ;
the date upon which an employee is first employed by the
' utility and ending on the date of the latest separation
from employment, excluding any prior periods of employment
for which separation benefits were withdrawn, any inter- ##
vening periods during which the employee was separated i
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19{ from employment following a resignation, a dismissal or a 1
lay-off in excess of thirty (30) days, and any period after
the employee attains normal retirement age, but not e_xclud-
i ing military duty and, periods of disability as herein de- f
fined.
(4) pisab ility. 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-in-
flicted., or due to drugs or alcoholism or incurred in the
commission of a felonious act. An employee is considered
to be disabled only during periods for which the board shall
receive both of the following:
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(a) Written certification by at least two (2)
licensed and practicing physicians approved by the
board that the employee is disabled and unable to
reasonably perform the duties of any assigned pos-
ition within any utility.
(b) Written certification by the administrative
officer of 'le employee that such employee
(1) is not separated from the employment
of the utility and
(2) is disabled and is consequently not
entitled to any earnings.
(5) Liar nincts. Compensation paid by the utility to
an employee for personal service.
(6) Emplo-yee. A person in the non-temporary employment
of the City who regularly receives, or is expected to
regularly receive in excess of ten percent (10/) of his
compensation from the utility of the City for personal
services rendered in connection with the operation,
maintenance or management of the utility; however, a
person appointed by the City Council must apply in writ-
ing to the utility retirement board in order to qualify
as an employee of the utility.
(7) Temporary EmplovrLient. Temporary employment is that
t employment which, at the time of entry thereon, is not
expected to continue for a period of excess of one-
hundred calendar days.
(8) Highest average earnings. The monthly average earn-
ings 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.
T9) Military duty. Military duty is 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 the armed forces,,
and further provided that the employee received an Hon-
orable or General Discharge from the 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
the armed service.
(10) Regular interest . the board of trustees, at a
meeting to be held early in each calendar year, will
determine the interest rate for employee contributions
to be computed for the preceding calendar year and credit d
to the employee accounts as of December 31 of that pre-
ceding year. However, for any year in which the utility
contribution exceeds five percent (5/0) , the interest .
credited to -the employee accounts shall be three percent
(3%)
t (11) Retirement income. A series of equal monthly pay-
ments payable to a retired employee; the first payment
to be made on the last day of the month following the
retirement date a_nd the last payment to be made on the
1 last day of the month in which death of the retired
employee occurs . Except for those retired for disability
retirement income shall lZe increased by twelve and- one-
half perceiit effective January 1 , 1970, for any
{{� employee retired on o.r before December 31, 1969.
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()_2) Uti)_:i.ty. Utility includes and is limited to
any water aorks, gas, electric light and power and
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water pollution control plant rnanged, operated and
owned by the City of Ames.
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Sec. 36-10005. - S_co c of system. As to compensation
they receive from a utility of the City, all persons who
were employees as defined herein, on February 1, 1964, �
and have continued to be employees of the utility; and
all persons who thereafter become or will become employee
before attaining the age of fifty-five (55) years shall
be included in this retirement system.
Sec. 3c>-10006. Emplovee contributions. Each employee
shall- contribute five percent (5%) of each payment of
his earnings during period of current service until he
attains age sixty--five (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 shal). be accumulated in a separate account
and the interest credited thereon annually.
Sec. 36-10007 . 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.
e Sec. 36-10005. Rights __of utility to discharge, dis-
!) ci2line employees . 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.
Sec. 36-10009. Benefits nonalienable . Benefits payable
at any time under the retirement system shall not be
subject in any manner to alienation, sale, transfer,
assignment, pledge, attachment, garnishment, or encum-
brance of any kind. Any attempt to alienate, sell,
transfer, assign, pledge or otherwise encumber any
such benefit, whether presently or thereafter payable
shall be void. Neither retirement income nor the
retirement fund, shall in any manner, be liable for
or subject to the debts or liabilites of any employee
or retired employee. If an employee or retired employee
attempts 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, whereby his benefits would devolve
upon or be transferred from him, the board may terminate
his interest in any such benefits and direct that his
interest be held for or applied to or for the benefit
of the . employee or retired employee, his spouse, his
children, or other dependents, or any of them in such a
manner as the board may deem proper.
Sec. 36-10010 . Payment in evert of legal incompetence. ;
If a retired or disabled employee or beneficiary re-
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ceiving benefit payments is under legal i.ncompctence,
payment may be made, at the discretion and direction.
of the board, to him directly, to his spouse, his
relative by blood or marriage, his legal representatives
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agrees to use the benefit for the maintenance and
support of the retired or disabled employee. The board
is not required to see to the application of any pay-
ment and the payee's receipt shall be the complete
discharge of the liability for the payments.
Sec. 36-10011. Ontional_ayment plans. An employee,
by written application made one year. prior to
retire-ment , maT7 request approval of the board of trustees
for payment of benefits, in accordance with a sound
actuarial_ basis, under one of the following options:
(a) A straight life annuity option whereby
monthly payments are increased on the basis of a
waiver. of death benefits.
( (b) A joint and survivor option whereby death
benefits are waived and monthly benefit payments
are reduced in return for an assured monthly benefit
payment, to a designated surviving spouse, during his
or her life or for a specified number of payments.
(c) A variation of option (b) to provide for
automatic conversion of option (b) to option (a) as
of the date of the death of the spouses if the spouse
should predecease the retired employee.
DIVISION 2 . BOARD OF TRUSTEES
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� Sec. 36-10023. composition. The retirement stem m y
is a trust and shall be administered by a board of
trustees composed of: The city's Director of Finances
--two (2) city councilmen appointed by the mayor with i
the approval of the councils and three (3) elected
employees, one elected by the water utility employees,
one elected by the electric utility employees and
one elected by the water polution control employees
at elections to be held by the board of trustees.
The city treasurer and the city attorney to be ex
officio members without voting power.
Sec. 36--10024. Election of trustees. Trustees shall
be nominated and elected by the employees of the utility
they are to represent. Each employee shall have a
single vote. An employee receiving compensation from
two or more utilities shall, for voting purposes, be
#` considered an employee of that utility from which lie
receives the greater part of his utility compensation.
Sec. 36-•10025 . Terms of office. Terms of office for
appointed members shall be for four years and for
elected members the terms shall be three years.
Members may be reappointed or reelected. Terms of
office shall termina�e and begin in accordance with
the present schedule of incumbents as of the date of
this ordinance. Appointments or elections will be
made to fill, vacancies for partial terms.
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Sec. 36-10026. Cowpensation. All trustees shall serve
without compensation but shall be reimbursed for any
9 reasonable exper:ses or for any amount of earnings with-
held because of attendance at a board meeting.
Sec. 36-10027. Voting _p -T.. . Each trustee is entitled
to one vote, except ex officio members] and at least
the approval_ of the majority of the six (6) voting
trustees shall be necessary for every decision or
action by the board of trustees.
Sec. 36-10028. Powers and duties.
(a) The boars; of trustees may. adopt such . rules
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and actuarial. tables, and employ such agents, physicians,
accountants, actuaries or clerical assistance as it may
deem necessary. Decisions made by a majority of the
six (6) voting trustees not inconsistent with the
provisions of this article shall be binding and con-
clusive on all persons. The board is entitled to rely
upon the records of the city as to the service, age 1
or earnings of any employee or as to any other information
pertinent to any calculation or determination under
this retirement system.
(b) The board shall invest funds of the retire-
ment system not currently needed for current costs in'
investments proper for the funds of the city under the
laws of the state, and the board may sell. any security,
belonging to the retirement system.
Sec. 36--10029. Errors in co_m-outation of benefit; board_
to correct_. Should any change or errors in records, or
error in computation of any benefit, result in any
member or beneficiary receiving from this retirement
system more or less than he would have been cntitled to
receive had the records or computation been correct, the
borard of trustees may correct the error, and as far as
practicable, adjust the payments in such a manner that
the benefit to which the member or beneficiary was
correctly entitled, shall be paid.
Sec. 36-10030. Audit, actuarial_; valuation of system
to be made. The board shall cause the accounts of the
retirement system to be audited annually by a certified 1
public accountant and shall. submit an annual statement
to the city council as soon after the end of each cal-
endar year as is possible. Such statement shall in-
clude a balance sheet showing the financial condition
of the system as of the end of the calendar year, a t
statement of receipts and disbursements during each
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 i
employee of his accumulated contributions and regular
interest accumulated thereon.
The board did in 1969 and shall at least once in
each five (5) year period hereafter, cause to be made
.an actuarial evaluation of the retirement system showing
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the actuarial. sta-Cu oL tho system, including the
contributions r_cquir.ed, and shall mare a report to
3j the city council a-nd officials.
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DIVISION 3,. RETIREMENT FUND
Sec. 36-10040. Sour::,.e of revenues ; use. All the
contributions made under the provisions of the retire-
ment system, together with the income thereon, shall
constitute the funds of this system and the 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.
Sec. 36-10041. Treasurer; surev bond required. The
city treasurer isMthf'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 the treasurer
or his agents . The bond shall be in such amount as the
board may designate and all reasonable charges for the
bond shall be paid from the retirement fund.
Sec. 36-10042. Deposits ; expenditures. Al)_ the funds
from the retirement system and 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 orders signed
by the director of finance and only as authorized by
the board of trustees.
Sec. 36-10043. Director of finance to furnish surety
bond. The director of finance 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 director of finance or his agents.
The bond shall be in such amount as the trustees may
designate and all reasonable charges for such bond shall
be/paid from the retirement fund.
Sec. 36-10044. Contributions deducted from employee ' s 7
pay; withdrawal of contributions. Any additional con-
tributions which may have been made under prior ordin-
ances, with regular interest thereon may be withdrawn
by the employee at any time, but normal contributions
shall not be withdrawn from this fund except as provided
for in this article.
Sec. 36-10045 . Debit of accounts for benefits paid.
In the absence of a waiver of death benefits by the
exercise of an option under the provisions of Section
36-10014, benefits paid to or on behalf of an employee �
shall be debited equally against the employee's account
and the account of the utility until the employee' s
account is exhausted. Thenceforth, any benefits payable
will be charged to the utility account.
DIVISION 4. NORMAL RETIREMENT
Sec. 36-10055. Retirement_date; exception. The normal
retirement date shall_ be the f irs.t day of the month
following the month i.n which an employee in service
or a disabled employee attains the age of sixty-fi,ve
(65) . Each employee shall be retired upon attaining
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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_. .
Sec. 36-10056. Amount of payment. Each employee retired
on his normal retirement date is entitled to a _monthly
( normal retirement income equal to one and one-half per- I
cent (13D'. of his highest average earnings for each year
of creditable service.
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Sec. 36-10057. Effect of reemployment. If an employee }
receiving a normal retirement income is reemployed by �
the utility, the income payment shall cease. Upon his
subsequent retirement, the original normal retirement 1
income payments shall be resumed and no additional ben-
efits shall be provided.
DIVISION 5. EARLY RETIREMENT
Sec. 36-10068. Retirement date. The early retirement
date shall be the first day of any month after an employee
attains age fifty-five (55) and completes at least ten
(10) 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.
Sec. 36-10069. Amount of income. Each employee who
i retires or is retired on his early retirement date
shall be entitled to a monthly retirement income
i determined in the same manner as the normal retirement
income, based upon his service credits to his early
retirement date, but reduced at the rate of one-half I
percent (1/2%) for each month his early retirement
precedes his normal retirement date.
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Sec. 36-10070. Effect of reemployment. If an employee
receiving an early retirement income is reemployed by
the utility, the retirement 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.
DIVISION 6. DISABILITY BENEFITS
Sec. 36-10081. Accrual date. Disability benefits, when
approved by the board upon written application therefor,
begin to accrue the day following the day on which
earnings cease to be paid.
Sec. 36-10082. Amount, duration. Each employee i_ncurr-i
ing a disability as herein defined is entitled to a
monthly disability benefit of fifty percent (50%) of f
his highest average earnings. The benefit continues
during the period of disability until the day upon which
the first of the following occurs.
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(a) Disability ceases in accordance with the
certification of a physician approved by the board.
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(b) Earnings again. -, cconie payable.
(c) Employee refuses to submit to a reasonable
physical examination by any physician approved by the
board.
(d) Employee attains age sixty-five (65) or dies .
Sec. 36-10033. Manner of. payment. All disability ;
benefits are payable monthly as of the end of' each
calendar month during vihich any disability benefits i
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 f
benefits are prayable.
Sec. 36-10084. Reduced if receiving other compensation.
Not withstanding any provisions to the contrary, if any
employee receives, or is entitled to receiver any compensati
under and by virtue of the Workmen's Compensation Actr
the disability payments due under this system shall be
reduced by the amount due under the Workmen' s Compensation
Act.
DIVISION 7. DEATH BENEFITS
Sec. 36-10095 . Date to begin. As of the date of death
of any employee in service or. of any disabled or retired -
employee, the beneficiary is entitled to the death
benefit as herein provided.
Sec. 36-10096. Amount. The amount of 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.
(b) On the death of a disabled or retired employecr
other than one who waived death benefits by the exercise
of an option under provisions of Section 36-10014, any
amount remaining in his account of accumulated contrib-
utions.
Sec. 36-10097. Manner of payment_ Death benefits shall
be paid in a single cash sum unless the employee prior
to his death shall have designated that his death benefi.
shall be paid to his beneficiary in monthly installments
of not -less than twenty dollars ($20. 00) per month, in
which event a sum equal to the death benefit which would ,
otherwise have been payable as a single payment in a
single cash sura, shall be paid to the beneficiary as
soon as practicable after receipt and approval by the
board of a. certified copy of the death certificate.
DIVISION 8. SEPARATION BENEFITS
Sec. 36-10108. When able. Upon termination of
employment by resignation or dismissal the employee
shall be paid the amount of his accumulated contribution,
except that any such employee may elect not to withdraw
such accumulated conc.ri.butions as were made prior to
February 1, 1.964.
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Sec. 36-10109. Mariner_ of- payxnent. Separation benefits
shall be paid in a single cash sum as. soon as practicable
after receipt by the- director of finance of a written
notice from the employee' s administrative officer that
the employee has been separated from employment.
Section 3. All ordinances and parts of ordinances in
conflict herewith are hereby repealed.
Section 4. After its passage and publication as provided
by law, this ordinance will be in full force and effect January
1, 1970.
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Passed this?nd _ day of December __,• 1969
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Lo ise Whitcome, City Clerk Stuart N. Smith, Mayor
11/18/69 Moved by Fellinger-LeBaron the ordinance pass on lst reading.
Aye: Judge, Fellinger, Newell, LeBaron, Fisher
Nay: None Absent: Thurston
Ordinance declared passed on 1st reading.
11/25/69 Moved by Judge-LeBaron the ordinance pass on 2nd reading.
Aye: Thurston, Judge, Newell, LeBaron, Fisher
Nay: None Absent: Fellinger
Ordinance declared passed on 2nd reading.
12/2/69 Moved by Fellinger-Judge the ordinance pass on final reading.
Aye: Thurston, Judge, Fellinger, Newell, LeBaron, Fisher
Nay: None
ordinance declared adopted.
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