HomeMy WebLinkAboutA001 - Utility Retirement Handbook dated July 1, 1986 ry OWA'.
by the Ames City Counc �ro
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Effective july ] , 1983
TO: Members of the Ames Utility Retirement System
We have printed and bound for you a copy of the
City Ordinance providing for your Utility Retirement
System. We encourage you to keep this copy as a
ready reference regarding your future retirement
benefits.
You are encouraged to read this ordinance; and
if you have any questions, you can contact your
representative on the Board of Trustees or the Board
Secretary, whose office is in the City Finance
Department.
We call your attention to the Optional Payment
plans. You will notice that written application for
optional payment of benefits must be made at least
sixty (60) days prior to your retirement. If you
are approaching this age, and if you wish to know
what benefits each of the various options would
provide, you may request this information from the
Finance Department and the selected options will be
computed for you.
Betty Jo Harker,
Secretary
Utility Retirement Board
CITY OF A MS. IOWA
PfMCIPAL RETUMMT SYSZM
BOARD OF
4/1/86
llOTIM 1491MiS:
Chairman - John Ringelestein, Water Pollution
Control, 4/1/85 - 4/1/88
Vice-Chairman- Martin Bogue, Electric Production,
4/l/84 - 4/1/87
Secretary - Betty Jo Harker,
Director of Finance
Pat Brown, Council Person
John Thurston, Council Person
Harley Cheville, Jr., Electric
Distribution, 4/1/85 - 4/1/88
Richard Magnuson, Water Distribution
(Water Plant/Public Works)
4/1/84 - 4/1/87
Alice Martin, Finance/Data
Processing, 4/1/86 - 4/1/89
Jerry Tillman, Electric Admin.
(Inspection/City Manager/City Clerk/
Equipment Operations)
4/1/86 - 4/1/89
EX-0FFICI0 MEMMM:
John Klaus, City Attorney
Leonard Lapehn, City Treasurer
DIVISION IY
UTILITY RETIREMENT SYSTEM
Sec. 28.43. UTILITY RETIREMENT SYSTEM ESTABLISHED.
There shall be and is hereby established a
retirement system which shall be know as the Ames
Municipal Utility Retirement System.
Sec. 28.44. DEFINITIONS.
The following words and phrases, unless a
different meaning is clearly indicated by the
context, have the following respective meanings:
(1) Beneficiary. Any person who has been
designated in writing by any employee to
receive all or part of their 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 intervening periods
during which the employee was separated
from employment following a resignation, a
dismissal or a lay-off in excess of thirty
(30) days, and any period after the
employee attains mandatory retirement age,
but not including military duty and periods
of disability as herein defined.
Additionally, a person who terminated
employment with the utility prior to the
enactment of provisions allowing for
vesting, and then became employed by the
utility again, may have credit for years of
service for the period the employee was not
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employed by the ,utility for purposes of
computing the retirement benefit, by making
a payment to the utility in such amount as
the city treasurer shall compute to be the
amount of the contributions the employee
would have made had employment with the
utility not been interrupted, plus the
interest that would have been earned by the
systems on said contributions based on the
actual investments made of employee
contribution funds during the relevant
period.
(Ord. No. 2953, Sec. 1, 5-27-86)
(4) 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 is considered
to be disabled only during periods for
which the board shall receive both of the
following:
(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 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.
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(5) Earnings. Compensation paid by the utility
to an employee for personal service.
(6) Employee. A person in the non-temporary
employment of the city who regularly
receives, or is expected to regularly
receive in excess of ten per cent (10%) of
their 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 writing to the utility retirement
board in order to qualify as an employee of
the utility.
(7) Temporary employment. Temporary employment
is that employment which, at the time of
entry thereon, is not expected to continue
for a period in excess of six (6) months.
(8) Highest average earnings. The monthly
average earnings during the sixty (60)
highest paid consecutive months out of the
one hundred twenty (120) months immediately
preceding the date of retirement or date
disability was incurred.
(9) 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
honorable or general discharge from the
service and returned to employment by the
utility within sixty (60) days of the date
on which the employee 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
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calendar year, will determine the interest
rate for employee contributions to be
computed for the preceding fiscal year and
credited to the employee accounts as of
June 30 of that preceding year.
(11) Retirement income. A series of equal
monthly payments payable to a retired
employee; the first 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.
Retirement income for persons already
retired may be increased by the Board of
Trustees in recognition of inflationary
increases in the cost of living in such
amounts and proportions as the Board of
Trustees, in the exercise of their
discretion, shall deem appropriate and
after two (2) readings before the board.
However, if such increase in retirement
income will have the effect of increasing
the amount of contribution required from
the funds of the utility, such increase in
retirement may be vetoed by resolution of
the city council or by refusal or failure
of the city council to appropriate the
required contribution at the time the
annual budget for utility operations is
prepared and approved.
(12) Utility. Utility includes and is limited
to any waterworks, water pollution control
plant or electric light and power system.
Employees of the solid waste recycling and
disposal plant shall be excluded and their
accumulated contributions refunded
effective December 17, 1980.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No.
2446, Sec. 1, 6-26-73; Ord. No. 2487,
Sections 1, 2, 9-17-74; Ord. No. 2494, Sec.
2, 12-17-74; Ord. No. 2546, Sec. 2,
5-18-76; Ord. No. 2765, Sec. 1, 12-16-80)
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Sec. 28.45. SCOPE 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, other than individuals who are students and
who devote their time and efforts chiefly to their
studies rather than to incidental employment, who
thereafter become or will become employees before
attaining the age of seventy (70) years shall be
included in this retirement system.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2446,
Sec. 2, 6-26-73; Ord. No. 2494, Sec. 2, 12-17-74)
Sec. 28.46. EMPLOYEE CONTRIBUTIONS.
Each and every employee shall contribute such
same percentage amount from each payment of earnings
during the period of current service (until the
employee attains age seventy (70) or earlier retires,
and excluding periods of military duty and
disability) as shall cause the annual accumulated
employee contributions to equal forty-three percent
of the estimated annual cost of the system. Employee
contributions shall be deducted from earnings paid to
each employee and shall be credited immediately to
the retirement fund. The contributions of each
employee shall be accumulated in a separate account
and the interest credited thereon annually.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2823,
Sec. 1, 5-25-82; Ord. No. 2846, Sec. 1, 3-22-83; Ord.
No. 2951, Sec. 1, 5-27-86)
Sec. 28.47. UTILITY CONTRIBUTIONS.
The utility shall contribute fifty-seven percent
of the annually estimated cost of the system. Any
shortfall in the amounts contributed pursuant to this
section and Section 28.46, and the actual annual cost
shall be carried forward as an item of cost to be
considered in estimating the next year's cost of the
system. (Ord. No. 2321, Sec. 2, 12-2-69; Ord. No.
2951, Sec. 1, 5-27-86)
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Sec. 28.48. RIGHTS OF UTILITY TO DISCHARGE,
DISCIPLINE 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.49. 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 encumbrance 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 liabilities of any employee or
retired employee. If an employee or retired employee
attempts to alienate, sell, transfer, assign, pledge,
or otherwise encumber their benefits under the plan,
or any part thereof, or if by reason of bankruptcy or
other event, whereby the employee benefits would
devolve upon or be transferred from the employee, the
board may terminate the employee's interest in any
such benefits and direct that that interest be held
for or applied to or for the benefit of the employee
or retired employee, spouse, children, or other
dependents, or any of them in such a manner as the
board may deem proper.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.50. PAYMENT IN EVENT OF LEGAL INCOMPETENCE.
If a retired or disabled employee or beneficiary
receiving benefit payments is under legal
incompetence, payment may be made, at the discretion
of the board, to the employee directly or to the
employee's spouse, relative by blood or marriage,
legal representative, or to any other person who is
deemed to be reliable and agrees to use the benefit
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for the maintenance and support of the retired or
disabled employee. The board is not required to see
to the application of any payment and the payee's
receipt shall be the complete discharge of the
liability for the payments.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.51. OPTIONAL PAYMENT PLANS.
An employee, by written application made not
less than sixty (60) days prior to retirement, may
request approval of the board of trustees for
payment of benefits, in accordance with a sound
actuarial basis, under one of the following options:
(1) A straight life annuity option whereby
monthly payments are increased on the
basis of a waiver of death benefits.
(2) 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 their
life or for a specified number of
payments.
(3) A variation of option (2) to provide for
automatic conversion of option (2) to
option (1) as of the date of the death of
the spouse, if the spouse should
predecease the retired employee.
(4) 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.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2379,
Sections 1, 2, 11-16-71; Ord. No. 2604, Sec. 1,
5-24-77)
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Sec. 28.52. VESTING.
(1) Vesting defined. Any employee with five
(5) full and consecutive years of
creditable service is a "vested employee".
If the employment of a vested employee is
terminated prior to retirement, other than
by death or disability, said vested
employee shall, upon attaining age
sixty-five (65), receive the normal
retirement income as provided for by this
chapter or, if the employee so elects and
has attained the age of fifty-five (55),
the early retirement income established by
this chapter, provided the employee does
not receive, prior to the date retirement
income is to commence, a refund of
accumulated contributions under any of the
provisions of this chapter.
(2) Interest on accumulated contributions. The
accumulated contributions of a terminated
vested employee shall be credited with
interest annually until withdrawn from the
fund.
(3) Right to withdraw contributions. A
terminated vested employee shall have the
right, prior to the commencement of the
employee's retirement income, to receive a
refund of the employee's accumulated
contributions.
(4) Death benefits. In the event of a death
of a terminated vested employee prior to
the commencement of any retirement income
and prior to withdrawal of accumulated
contributions, the death benefit provided
for by this chapter will be paid with
respect to said terminated vested employee
(5) Cessation of rights. Any terminated
vested employee who directs the return of
accumulated contributions will have no
further right to any benefits of the funds
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and will not be permitted to repay the
amount withdrawn to regain entitlements,
except for those employees who terminated
before vesting was provided for under the
ordinance enacted May 24, 1977, who wish
to purchase credit for service as
described in subsection 28.44(3) hereof.
(Ord. No. 2604, Sec. 2, 5-24-77; Ord. No.
2953, Sec. 1, 5-27-86)
Sec. 28.53. BOARD OF TRUSTEES.
The retirement system is a trust and shall be
administered by a board of trustees composed of: The
city's director of finance, two (2) city council
members, one elected by the water utility employees,
one elected by the water pollution control employees
and three (3) elected by the employees of the
electric utility as follows: one from the electric
distribution work center; one from the power plant;
one from electric administration (which includes the
City Clerk, City Manager, inspection personnel and
other non-finance administrative personnel covered
by the system) ; and one from the Finance Department.
The City Treasurer and the City Attorney shall be
ex-officio members without voting power.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2529,
Sections 1, 2, 9-24-75; Ord. No. 2823, Sec. 1,
5-25-82)
Sec. 28.54. 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 (2) or more
utilities shall, for voting purposes, be considered
an employee of that utility from which the greater
part of utility compensation is received by the
employee. (Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.55. TERMS OF OFFICE FOR TRUSTEES.
Terms of office for appointed members shall be
for four (4) years. The term of office for elected
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members shall be three (3) years. Members may be
reappointed or reelected. Terms of office shall
begin and end on the first day of April.
Appointments or elections will be made to fill
vacancies for partial terms. When the composition
of the board is altered or increased, the persons
first elected to fill the new position may serve
such shorter terms as shall be determined by the
board of trustees for the purpose of producing
staggering of the terms of office of the elected
members of the board.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2529,
Sections 3, 4, 9-24-75)
Sec. 28.56. COMPENSATION OF TRUSTEES.
All trustees shall serve without compensation
but shall be reimbursed for any reasonable expenses
or for any amount of earnings withheld because of
attendance at a board meeting.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.57. VOTING POWER OF TRUSTEES.
Each trustee is entitled to one vote, except ex
officio members, and at least the approval of the
majority of the nine (9) voting trustees shall be
necessary for every decision or action by the board
of trustees.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2546,
Sec. 2, 5-18-76; Ord. No. 2823, Sec. 1, 5-25-82)
Sec. 28.58. POWERS AND DUTIES OF TRUSTEES.
(1) The board of trustees may adopt such rules
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 nine (9) voting trustees not
inconsistent with the provisions of this
chapter shall be binding and conclusive on
all persons. The board is entitled to
rely upon the records of the city as to
the service, age or earnings of any
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employee or as to any other information
pertinent to any calculation or
determination under this retirement
system.
(Ord. No. 2952, Sec. 1, 5-27-86)
(2) The board shall invest funds of the
retirement 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.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No.
2546, Sec. 2, 5-18-76)
Sec. 28.59. ERRORS IN COMPUTATION 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 les than that person would have been
entitled to receive had the records or computation
been correct, the board 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.60. 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 public accountant and shall submit an
annual statement to the city council as soon after
the end of each fiscal year as possible. Such
statement shall include a balance sheet showing the
financial condition of the system as of the end of
the fiscal year, a statement of receipts and
disbursements during each year, a detailed statement
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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 the employee's
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 the actuarial status of the system,
including the contributions required, and shall make
a report to the city council and officials.
NOTE: Board has taken action to have an actuarial
valuation prepared every two (2) years, effective
July 1, 1985.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2546,
Sec. 2, 5-28-76)
Sec. 28.61. SOURCE OF REVENUES; USE.
All the contributions made under the provisions
of the utility retirement 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.62. TREASURER; SURETY BOND REQUIRED.
The city treasurer is 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 the treasurer or 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.63. DEPOSITS; EXPENDITURES.
All the funds from the retirement system and
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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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.64. 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. 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.65. CONTRIBUTIONS DEDUCTED FROM EMPLOYEE'S
PAY; WITHDRAWAL OF CONTRIBUTIONS.
Any additional contributions which may have
been made under prior ordinances, with regular
interest thereon may be withdrawn by the employees
at any time, but normal contributions shall not be
withdrawn from this fund except as provided for in
this chapter.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.66. 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 28.44, 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
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Sec. 28.67. RETIREMENT DATE: EARLY, NORMAL, 55/30,
MANDATORY.
(1) The normal retirement date shall be the
first day of the month following the month
in which an employee in service or a
disabled employee attains the age of
sixty-five (65) . However, age sixty-five
(65) is not the mandatory retirement age.
The mandatory retirement age is seventy
(70) years. Each employee shall be
retired upon the first day of the month
following the month in which the employee
attains age 70 if the employee has not
previously elected to take normal
retirement at age 65 or early retirement
at age fifty-five(55) as provided for in
section 28.70 of this chapter. There
shall be no penalty or loss of benefits
whatsoever for the employee who elects to
work past the normal retirement age of
sixty-five (65) to the mandatory
retirement age of seventy (70).
(2) Subsection 1 hereof notwithstanding, any
employee with thirty (30) years of
creditable service may elect to retire at
any time after attaining age fifty-five
(55) and receive the full normal
retirement benefit. Such retiree shall,
for all purposes of the utility retirement
system be deemed to be on normal
retirement.
(Ord. No.2321, Sec. 2, 12-2-69; Ord. No.
2846, Sec. 1, 3-22-83)
Sec. 28.68. AMOUNT OF PAYMENT.
Each employee retired on their normal
retirement date is entitled to a monthly normal
retirement income equal to one and eight-tenths
percent (1.8%) of the employee's highest average
earnings for each year of creditable service. After
five years of such retirement the amount of said
payment shall be increased to two percent (2.0%) of
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the said highest average earnings. 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 28.44(11)
hereof. The 1.8 formula shall be used to figure all
retirements that were made after January 1, 1974.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2494,
Sec. 2, 12-17-74; Ord. No. 2604, Sec. 3, 5-24-77;
Ord. No. 2950, Sec. 1, 5-27-86)
Sec. 28.69. EFFECT OF REEMPLOYMENT ON NORMAL
RETIREMENT.
If an employee receiving a normal retirement
income is reemployed by the utility, the income
payment shall cease. Upon subsequent retirement,
the original normal retirement income payments shall
be resumed and no additional benefits shall be
provided.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.70. EARLY RETIREMENT DATE.
An employee is entitled to early retirement
effective the first day of any month after the
employee has attained age fifty-five (55) and
completed ten (10) years of service credits.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.71. AMOUNT OF INCOME ON EARLY RETIREMENT.
Each employee who retires or is retired on
their early retirement date shall be entitled to a
monthly retirement income determined in the same
manner as the normal retirement income, based upon
service credits to the employee's early retirement
date, but reduced at the rate of one-quarter percent
(1/4%) for each month the early retirement precedes
the normal retirement date.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2823,
Sec. 1, 5-25-82)
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Sec. 28.72. EFFECT OF REEMPLOYMENT ON EARLY
RETIREMENT.
If an employee receiving an early retirement
income is reemployed by the utility, the retirement
income payments shall cease. Upon subsequent
retirement, the employee's retirement income shall
be determined as if the employee were then first
retired based upon credited service at the time of
prior retirement, plus the credited service
following the date of subsequent retirement.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.73. DISABILITY BENEFITS, 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. (Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.74. 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 (75) percent of the
employee's highest average earnings. The benefit
continues during the period of disability until the
day upon which the first of the following occurs:
(1) Disability ceases in accordance with the
certification of a physician approved by
the board.
(2) Earnings again become payable.
(3) The employee refuses to submit to a
reasonable physical examination by any
physician approved by the board.
(4) The person dies; or, any of the following
pertains:
(a) for disability which occurred before
age 61, disability benefits end at age 65
or the normal retirement date
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(b) for disability which occurs after age
61, disability benefits shall end after
four years or at age 70, whichever occurs
first.
(Ord. No. 2321, Sec. 2, 12-2-69; Ord. No. 2604,
Sec. 4, 5-24-77; Ord. No. 2823, Sec. 1, 5-25-82)
Sec. 28.75. MANNER OF PAYMENT.
All disability benefits are payable monthly 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. (Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.76. REDUCED IF RECEIVING OTHER COMPENSATION.
Notwithstanding any provisions to the contrary,
if any employee receives, or is entitled to receive,
any compensation under and by virtue of the
Workmen's Compensation Act, the disability payments
due under this system shall be reduced by the amount
due under the Workmen's Compensation Act.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.77. DEATH BENEFITS, 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.78. AMOUNT OF DEATH BENEFIT.
The amount of death benefit shall be as
follows:
(1) Upon the death of an employee in service
an amount equal to the sum of accumulated
contribution and regular interest
accumulated thereon.
17
(2) On the death of a disabled or retired
employee, other than one who waived death
benefits by the exercise of an option
under provisions of section 28.51, any
amount remaining in the employee's account
of accumulated contributions.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.79. MANNER OF PAYMENT OF DEATH BENEFIT.
Death benefits shall be paid in a single cash
sum unless the employee prior to death shall have
designated that the death benefit shall be paid to
the employee's 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 sum, shall be paid to the
beneficiary a soon as practicable after receipt and
approval by the board of a certified copy of the
death certificate.
(Ord. No. 2321, Sec. 2, 12-2-69)
Sec. 28.80. ACCUMULATED CONTRIBUTIONS, WHEN PAYABLE.
Upon termination of employment by resignation
or dismissal the employee shall be paid the amount
of accumulated contributions, except that any such
employee may elect not to withdraw such accumulated
contributions as were made prior to February 1,
1964.
Payment shall be made 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.
(Ord. No. 2321, Sec. 2, 12-2-69)
18
PROCEDURES
1. News media must be notified of all meetings. This
will require a sufficient interval, five (5) working
days, between the time the meeting is requested and
date of meeting. The secretary will be responsible
for notifying the news media.
2. Regular schedule for meetings.
Effective April 1976, meetings to be held at least
quarterly, with two (2) in the evening and two (2)
during the day.
3. Terms of office:
Three (3) years - April 1 to April 1
Electric - 1988, 1991, 1994, 1997, 2000
Electric - 1989, 1992, 1995, 1998, 2001
Electric - 1987, 1990, 1993, 1996, 1999
Finance - 1989, 1992, 1995, 1998, 2001
Sewer - 1988, 1991, 1994, 1997, 2000
Water - 1987, 1990, 1993, 1996, 1999
4. Notices of all meetings will be sent to and posted
in: Finance, Data Processing, Line Department, Power
Plant, Water Plant, Water Pollution Control, Water
Distribution (Public Works) , Water Meter Lab, Electric
Meter Lab, and Electric Administration (including City
Clerk, City Manager, Inspection, Equip. Operations).
Notices will be sent by the secretary to each board
member.
5. All medical reports will be considered confidential
and will not be distributed to board members. The
secretary will read such reports at meetings and they
will be available for perusal by board members.
6. If a member wishes to be represented by an attorney
or someone other than him/herself, he/she shall notify
I
the secretary in writing so that the designee can be
notified of meetings which are relevant to the client.
7. A 'Notice of Hearing' form letter, as follows,
will be used to notify a member when a hearing will be
held regarding the member's application for retirement
other than normal retirement.
NAME
ADDRESS
Re: Application of (Name)
for (Type Retirement.
NOTICE OF HEARING
Dear ,
You are notified hereby that the application of
for Retirement
will be heard and considered by the Board of Trustees
of the Ames Utility Retirement system on the day
of 19 at o'clock in the
at , Ames, Iowa.
At the above time and place you may appear in
person or by a representative and be then heard as to
any reasons or evidence as is material and relevant to
the matter of the pending application.
Signed
8. The Director of Finance will be responsible for
calculation of benefits for ordinary retirees. Any
unusual calculations may be handled by the actuaries.
All calculations will be confidential and will be
reported to the board at the earliest meeting. Board
members may request to see such calculations which
will be on file in the Finance office.
11
9. Officers to be elected every two (2) years at the
April meeting. (Effective April 1, 1976)
10. Procedure for conducting elections:
On or about March 1st each year a notice will be
prepared of the term of office which will expire the
following April 1. Such notice to be posted as
designated in rule #4.
The secretary shall be notified by March 20th of
names to be placed on the ballot(s) .
A ballot will be provided to each eligible member
at least five (5) working days prior to March 31.
Ballots will be counted April 1 by the secretary
and such other persons the secretary has designated.
The results will be posted at designated places
as stated in rule #4.
The secretary will provide the results at the
annual meeting.
11. Copies of the board minutes are to be sent to
each member of the board and to each Councilperson.
12. As of 7/l/86:
Present employee contribution rate - 43% (6.71%)
Present utility contribution rate - 57% (8.89%)
(see 28.47)
Present interest credited to employee account is
5%.
III
-- SAMPLE CALCULATION FORM —
ORDINARY RETIREMENT: (Age 65)
Retirement Date: 7/01/87
Name: John Doe
Birth Date: 7/01/22
Employment Date: 1/01/57
EARNINGS: (Prior 60 months) $60,000
HIGHEST AVERAGE EARNINGS: $1,000 ($60,000
divided by 60)
STEP 1: Calculate the years of service -
Retirement Date 1987 - 07 - 01
Employment Date 1957 - 01 - 01
Years of service: 30 yrs 6 mo = 30.5 years
STEP 2: Calculate the retirement percentage -
Years of service 30.5
Formula x 1.8%
Retirement percent 54.90%
STEP 3: Calculate the amount of retirement -
Highest average earnings $1,000
Retirement percent 54.90%
Gross amount of monthly retirement: $549.00
1v
STEP 4: Optional forms of Retirement Income
(Section 28.51) -
EXAMPLE: (22.90 years service - Age 65)
Date of birth: September 16, 1920
Spouse's Date of Birth: December 26, 1927
Date of Appointment: November 4, 1962
Date of Retirement: September 16, 1985
Years of Creditable Service: 22.90 years
Normal Retirement Income: $1,060.47
Factors to reduce Normal Retirement Income to
actuarially equivalent amount for:
(a) 100% Joint and Survivor Annuity .679
(b) 75% Joint and Survivor Annuity .741
(c) 50% Joint and Survivor Annuity .815
(d) Ten Year Certain and Life Annuity .930
Optional Forms of Retirement Income: If Spouse
Dies First
(a) Joint/Survivor Annuity with
100% payable to spouse $720.06 1,081.57
Amount payable to surviv-
ing spouse for life 720.06 N/A
(b) Joint/Survivor Annuity with
75% payable to spouse 785.81 1,081.57
Amount payable to surviv-
ing spouse for life 589.36 N/A
(c) Joint/Survivor Annuity with
50% payable to spouse 864.28 1,081.57
Amount payable to surviv-
ing spouse for life 432.14 N/A
(d) Ten Year Certain and Life
Annuity payable for life
with 120 guaranteed payments $986.24
v
EXAMPLE: (30 years service - Age 62)
Date of Birth: October 12, 1921
Spouse's Date of Birth: February 9, 1930
Date of Appointment: April 12, 1947
Effective Date: October 15, 1983
Years of Creditable Service: 36.51 years
Normal Retirement Income $1,284.77
Factors to reduce Normal Retirement Income to
actuarially equivalent amount for:
(a) 100% Joint/Survivor Annuity .704
(b) 75% Joint/Survivor Annuity .763
(c) 50% Joint/Survivor Annuity .833
(d) Ten Year Certain and Life Annuity .957
Optional Forms of Retirement Income If Spouse
Dies First
(a) Joint/Survivor Annuity with
100% payable to spouse $904.48 1,310.34
Amount payable to surviving
spouse for life 904.48 N/A
(b) Joint/Survivor Annuity with
75% payable to spouse 980.28 1,310.34
Amount payable to surviving
spouse for life 735.21 N/A
(c) Joint/Survivor Annuity with
50% payable to spouse 1,070.21 1,310.34
Amount payable to surviving
spouse for life 535.11 N/A
(d) Ten Year Certain and Life
Annuity payable for life
with 120 guaranteed payments $1,229.52
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— SAMPLE CALCULATIO14 FORM —
EARLY RETIREMEW:
Retirement Date: 7/01/87 (Age 62)
Same employment date and average earnings as
ordinary.
STEP 1: Calculate the years of service -
Early retirement date 1987 - 07 - Ol
Employment date 1960 - O1 - O1
Years of service: 27 yrs 6 mo = 27.5 years
STEP 2: Calculate the retirement percentage -
Years of service 27.5
Formula x 1.8%
Retirement percent 49.5%
STEP 3: Calculate the early retirement penalty -
36 months x a of 1% = 9% Penalty
STEP 4: Calculate the early retirement gross amount
Highest average earnings $1,000
Retirement percent x 49.5%
Gross amount of early retirement $495.00
STEP 5: Calculate amount of penalty for early
retirement -
Gross amount $495.00
Penalty percent 9%
Penalty amount $ 15.93
vii
STEP 6: Calculate the early retirement amount after
penalty -
Early retirement amount $495.00
Penalty amount -44.55
Gross monthly early retirement $450.45
Please note that you must recalculate each month of
early retirement since this changes the years of
service and in turn changes the retirement percentage.
STEP 7: Optional Form of Early Retirement Income
F.XAMpLE: (29 years service - Age 62)
Date of Birth: November 16, 1920
Spouse's Date of Birth: January 4, 1925
Date of Appointment: December 16, 1953
Effective Date: December 16, 1982
Years of Creditable Service;: 29 years
Early Retirement Income: $806.14
Factors to reduce Early Retirement Income to
actuarially equivalent amount for:
(a) 100% Joint and Survivor Annuity .733
(b) 75% Joint and Survivor Annuity .789
(c) 50% Joint and Survivor Annuity .853
(d) Ten Year Certain and Life Annuity .957
Optional Forms of Retirement Income If spouse
Dies First
(a) Joint/Survivor Annuity with
100% payable to spouse $590.90 822.18
Amount payable to surviving
spouse for life 590.90 N/A
(b) Joint/Survivor Annuity with
75% payable to spouse 636.04 822.18
vill
Amount payable to surviving
spouse for life 477.03 N/A
(c) Joint/Survivor Annuity with
50% payable to spouse 687.64 822.18
Amount payable to surviving
spouse for life 343.82
(d) Ten Year Certain and Life N/A
Annuity payable for life
with 120 guaranteed payments $771.48
-Any member who has a question regarding either
ordinary or early retirement calculation should
contact the Director of Finance who is also secretary
to the Board.
— SAMPLE CALCULATION FORM —
INTEREST: As of 6/30 - Depending on rate set by
Board
STEP 1: Calculate current fiscal year employee
contribution.
6/30 this year
LESS 6/30 last year (including interest paid
through 6/30 last year)
STEP 2: Divide answer from Step 1 by Step 2 or
take 50%.
STEP 3: Add answer from Step 2 to 6/30 LAST YEAR
amount.
STEP 4: Multiply answer from Step 3 x rate of
interest as set by Board, this amount is
interest earned.
ix