HomeMy WebLinkAboutA001 - Council Action Form dated June 10, 1997 ITEM
DATE June 10, 1997
COUNCIL ACTION FORM
SUBJECT: REVISION TO THE ORDINANCE GOVERNING THE UTILITY
RETIREMENT SYSTEM TO ESTABLISH A DEADLINE FOR REQUESTING
RETIREMENT UNDER THE EXISTING PLAN
BACKGROUND:
In anticipation of the termination of the Utility Retirement defined benefit plan, the Utility
Retirement Board is requesting an ordinance change to establish a deadline for
requesting retirement under the terms of the existing plan. Members are now required
to give notice 60 days before they wish to retire.
After meeting with the planned administrative services provider and discussing a timeline,
the Board anticipates completion of the plan conversion by September 30, 1997. Since
the defined benefit plan will then be terminated September 29, 1997, the Board voted to
set the final date for notification of intent to retire under the defined benefit plan as August
1 , 1997.
At this time, the Board is requesting an ordinance change that removes the 60-day
notification requirement and establishes August 1 , 1997, as the final notification date.
Retirement under the defined contribution plan will not be possible until the conversion
is complete.
ALTERNATIVES:
1 . Approve the request for an ordinance change that establishes a deadline of August
1 , 1997, for requesting retirement benefits under the existing defined benefit Utility
Retirement System and states that retirement under the defined contribution system will
not be possible until conversion is complete. Adopt the ordinance prepared by John
Klaus and suspend the rules to pass on the second and third readings.
2. Request additional information from the Utility Retirement Board.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt Alternative # 1 ,
approving the request for an ordinance change that establishes a deadline of August 1,
1997, for requesting retirement benefits under the existing defined benefit Utility
Retirement System and states that retirement under the defined contribution system will
not be possible until conversion is complete; and adopting the ordinance prepared by
John Klaus and suspending the rules to pass on the second and third readings.
COUNCIL ACTION:
15�-
ORDINANCE NO.
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF
AMES,IOWA,BY REPEALING SUBSECTION 28.409(1)AND ENACTING A
NEW SUBSECTION 28.409(1) FOR THE PURPOSE OF PROVIDING A
TERMINATION DATE FOR THE CURRENT UTILITY RETIREMENT
SYSTEM; REPEALING ANY AND ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT AND
ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED,by the City Council for the City of Ames,Iowa,that:
Section One. The Municipal Code of the City of Ames,Iowa shall be and the same is hereby amended by
Subsection 28.409(1)and enacting a new Subsection 28.409(1)as follows:
,,(1) An employee,by written application made not later than August 1, 1997,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 em-
ployee.
(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%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 28.426."
Section Two. 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 day of 11997.
Sandra L.Ryan,City Clerk Larry R.Curtis,Mayor
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