HomeMy WebLinkAbout~Master - Clarifying Intent and Provisions of Utility Retirement Systerm ORDINANCE NO. 3102
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY
OF AMES, IOWA, BY REPEALING SUBSECTIONS 28.44(4) AND
(5), 28.52(3), AND SECTIONS 28.45, 28.51, 28.67, 28.69, 28.72,
28.73, 28.74 AND 28.78; RE-ENACTING SAID SUBSECTIONS AND
SECTIONS FOR THE PURPOSE OF CLARIFYING THE INTENT AND
PROVISIONS OF THE UTILITY RETIREMENT SYSTEM;
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCE IN
CONFLICT HEREWITH TO THE EXTENT OF SUCH CONFLICT IF
ANY; AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ORDAINED, by the City Council for the City of Ames, Iowa:
Section One. The Municipal Code of the City of Ames, Iowa shall be
and the same is hereby amended by repealing subsections 28.44(4) and
(5), 28.52(3), 28.78(1) and (2) and sections 28.73, 28.51, 28.69, 28.45,
28.67 and 28.72 and reenacting the same to read as follows:
"Sec. 28.44. DEFINITIONS.
(4) Disability. The inability of an employee to perform, due to
mental or physical injury or disease which is not
self-inflicted, or incurred in the commission of a felonious
act, for any period exceeding sixty (60) days, the duties
of any assigned position within any utility. 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.
(5) Earnings. Salary or wages paid by the City of Ames to an
employee for personal service.
Sec. 28.45.
Any employee eligible for participation in the utility
retirement system who wishes to change from the IPERS system
can do so only within the first thirty days after becoming
eligible.
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Sec. 28.51. OPTIONAL PAYMENT PLAN.
(1) 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:
(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 their 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 spouse, if the spouse should
predecease the retired employee.
(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.
These options shall take the form of either a 100%, 75 0
or 50% joint and survivor annuity, or a ten (10) year
certain and life annuity, if said optional form of payment
is determined by an actuary to be the actuarial and value
equivalent of the retirement income provided for by Section
28.68.
(2) The City finance director shall give notice to employees and
persons on disability, when they are within six months of
normal retirement, that they should consider selecting or
reaffirming an option under this section. All option
selections shall be in writing signed by both the employee
and the employee's spouse.
Sec. 28.52. VESTING.
(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 plus credited, regular
interest.
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Sec. 28.67. RETIREMENT DATE: NORMAL, 55/30.
(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).
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).
(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.
Sec. 28.69. (RESERVED)
Sec. 28.72. EFFECT OF REEMPLOYMENT ON RETIREMENT.
If an employee receiving 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 reemployment.
Sec. 28.73. DISABILITY BENEFITS, WHEN PAYABLE.
Disability benefits, when approved by the Board upon
written application, become payable on the day following the day
when all accrued sick leave and vacation has been used and
earnings cease to be paid. However, on a voluntary basis a
member applying for disability may save up to sixty (60) days'
vacation or sick leave during the time disability benefits are
received for a period not to exceed two (2) years. At any time
the member may elect to use that banked vacation or sick leave in
lieu of disability benefits.
Sec. 28.74. AMOUNT, DURATION OF DISABILITY BENEFITS.
(1) 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. Except as otherwise provided, 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.
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(d) The person dies; or, any of the following pertains:
(i) for disability which occurred before age 61,
disability benefits end at age 65 or the normal
retirement date
(ii) for disability which occurs after age 61,
disability benefits shall end after four years or
at age 70, whichever occurs first.
(2) When disability results from alcoholism, drug abuse, mental
disorder or nervous disorder, disability benefits shall be
paid for not longer than two years unless, at the end of
that two years the member is:
(a) enrolled in an alcoholism, drug abuse treatment program
approved by the utility; or
(b) confined in a hospital or other facility qualified to
provide necessary care and treatment for alcoholism,
drug abuse, mental disorder or nervous disorder,
then the disability payment period may be extended, in the
absence of fraud or abuse, to include the time during
which the member actively participates in the treatment
program or remains confined.
Sec. 28.78. AMOUNT OF DEATH BENEFIT.
The amount of the death benefit shall be:
(1) Upon the death of an employee in service who has neither a
surviving spouse or unmarried children under the age of
18, an amount equal to the sum of the deceased employee's
accumulated contributions and regular interest accumulated
thereon.
(2) Upon the death of an employee in service who is survived
by a spouse or by unmarried children under the age of 18,
an amount as follows:
(a) To the surviving spouse, an annuity payable in
monthly installments, equal to: 60% x years of service
x 1.8% x highest average earnings; but, not less than
the smaller of 60% x 40% x highest average earnings or
60s x years of service to age 60 x 1.8% x highest
average earnings.
(b) For each unmarried child under age 18, an annual
amount equal to:
(i) If the deceased employee is survived by a
spouse, the least of:
a. 60% x highest average earnings divided by
the number of eligible children;
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b. $2,700 divided by the number of eligible
children; or,
C. $900.
(h) If the deceased employee is not survived by a
spouse, the least of:
a. 75 0 of highest average earnings divided by
the number of eligible children;
b. $3,230 divided by the number of eligible
children; or,
C. $1,080.
(3) Upon the death of a terminated vested employee, accumu-
lated contributions of the employee plus credited, regular
interest.
(4) Upon the death of an employee receiving disability benefits,
the same death benefit as for one who dies while still in
service. The spousal benefit with respect to such person
shall be based on the salary earned and the length of
service prior to disability."
(5) On the death of a 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.
Section Two. Any and all ordinances or parts of ordinances in conflict
herewith are hereby repealed to the extent of such conflict, if any.
Section Three. This ordinance shall be in full force and effect from
and after its passage and publication as required by law.
Passed this 23rd day of October , 1990.
Nancy Dionigi, ity erk Larry R. Furtis, Mayor
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