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HomeMy WebLinkAbout~Master - Relating to Utility Retirement System ORDINANCE NO. 2604 AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES , IOWA BY ADDING TO SECTION 36-10011 THEREOF, AS SAID SECTION WAS ENACTED BY ORDINANCE NO . 2379 , AN ADDITIONAL SUBSECTION (d) FOR THE PURPOSE OF SETTING FORTH YET' ANOTHER OPTIONAL PAYMENT PLAN FOR UTILITY RETIREES ; ENACTING A NEW SECTION TO BE NUMBERED 36-10012 FOR THE PURPOSE OF DEFINING AND PROVIDING FOR "VESTING" OF BENEFITS UNDER THE UTILITY RETIREMENT SYSTEM; REPEALING SECTION 36-10056 AS SAID SEC- TION WAS ENACTED BY ORDINANCE NO. 2494 AND ENACTING A NEW SECTION 36-10056 FOR THE PURPOSE OF INCREASING THE NORMAL UTILITY RETIREMENT INCOME FROM 1 . 6% TO 1. 8% OF HIGHEST AVERAGE EARNINGS ; RE- PEALING SECTION 36-10082 AS SAID SECTION WAS ENACTED BY ORDINANCE 2321 AND ENACTING A NEW SECTION 36-10082 FOR THE PURPOSE OF INCREASING DISABILITY BENEFITS FROM 50% TO 75% OF HIGHEST AVERAGE EARNINGS ; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH TO THE EXTENT OF SUCH CONFLICT; AND, ESTABLISHING AN EFFECTIVE DATE . BE IT ENACTED, by the City Council for the City of Ames , Iowa: Section One. The Municipal Code of the City of Ames , Iowa shall be and is hereby amended by adding to Section 36-10011 thereof as said section has heretofore existed, a new subsection (d) , said new subsection to read as follows : " (d) A joint and survivor option whereby monthly benefit payments are reduced in return for an assured monthly benefit payment to a designated surviving spouse or for a specified number of payments with automatic conversion to normal retirement income payments if the spouse should predecease the retired employee. " Section Two. The Municipal Code of the City of Ames , Iowa shall be and is hereby amended by enacting a new section as follows : "Sec. 36-10012 Vesting. (a) Vesting Defined. Any employee with five full and consecutive years of creditable service is a "vested employee" . If the employment of a vested employee is terminated prior to his retirement, other than by death or disability, said vested employee shall upon attaining age 65 receive the normal retirement income as provided for by this chapter or, if the employee so elects and has attained the age of 55 , the early retirement in- come established by this chapter, provided the employee does not receive , prior to the date his retirement income is to commence, a refund of accumulated contributions under any of the pro- visions of this chapter. (b) Interest on Accumulated Contributions . The accumulated contributions of a terminated vested employee shall be credited with interest annually until withdrawn from the fund. r r. (c) Right to Withdraw Contributions . A terminated vested employee shall have the right, prior to the commencement of his retirement income , to receive a refund of his accumulated contributions . (d) Death Benefits . In the event of a death of a terminated vested employee prior to the commence- ment of any retirement income and prior to with- drawal of accumulated contributions , the death benefit provided for by this chapter will be paid with respect to said terminated vested employee . (e) Cessation of Rights . Any terminated vested employee who directs the return of his accumulated contributions will have no further right to any benefits of the funds and will not be permitted to repay the amount withdrawn to regain entitlements . " Section Three . The Municipal Code of the City of Ames shall be and is hereby further amended by repealing section 36-10056 thereof as said section has existed hereto- fore and enacting a new section 36-10056 to read as follows : "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 eight-tenths percent (1. 80 ) of his highest average earnings for each year of creditable service . In addition to the aforesaid normal retirement income , a retired employee may receive such additional retirement income as is , from time to time , authorized by the Board of Trustees pursuant to section 36-10004 (11) hereof. The 1. 8 formula shall be used to figure all retirements that have been made since January 1 , 1974 . " Section Four. The Municipal Code of the City of Ames , Iowa shall be and is hereby amended by repealing section 36-10082 and enacting a new section 36-10082 as follows : "Sec. 36-10082 . Amount, Duration of Disability Benefits . Each employee incurring a. disability as defined in this chapter is entitled to a monthly disability benefit of seventy-five percent (750) of his highest average earnings . The benefit continues 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) The employee refuses to submit to a reasonable physical examination by any physician approved by the Board. (d) The employee dies or attains age sixty-five. (65) 11 -3- Section Five. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section Six. This ordinances shall be in full force and effect from and after its passage and publication as re- quired by law. Passed this 24 day of May 1977 . Mary E . Yaul, City Clerk Lee F llinger, Mayo Signed by the Mayor this 24th day of May, 1977 .J Published in the Ames Daily Tribune this day of , 1977 .