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HomeMy WebLinkAbout~Master - Converting Utility Retirement System to defined contribution plan ORDINANCE NO. 3458 AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF THE CITY OF AMES,IOWA,BY REPEALING SECTIONS 28.402 THROUGH 28.437 AND ENACTING NEW SECTIONS 28.402 AND 28.403 FOR THE PURPOSE OF CONVERTING THE AMES MUNICIPAL UTILITY RETIREMENT SYSTEM FROM A"DEFINED BENEFIT"SYSTEM TO A"DEFINED CONTRIBUTION" PLAN; REPEALING ANY AND ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT TO THE EXTENT OF SUCH CONFLICT; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS,Section 412.1 Code of Iowa 1997 states express authorization for the city council to establish a pension and annuity retirement system for the employees of the municipal public utilities;and, WHEREAS,the City of Ames has provided such a retirement system for persons employed by the City in connection with its municipal utilities since 1945;and, WHEREAS,said retirement system is presently of a kind called"defined benefit";and, WHEREAS, it is now desired that the said retirement system be converted to that kind which is called "defined contribution"; NOW,THEREFORE,BE IT ENACTED,by the City Council of 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 Sections 28.402 through and including Section 28.437. Section Two. The Municipal Code of the City of Ames,Iowa,is further amended by enacting new Sections 28.402 and 28.403 as follows: "Sec.28.402. PLAN AND RULES,UTILITY RETIREMENT SYSTEM. (1) The Ames Municipal Utility Retirement System shall cease to be a defined benefit system as of 12:01 A.M. September 30, 1997 and shall become a defined contribution plan as of 12:01 A.M. September 30, 1997, the defined contribution plan to be as stated in such plan, rules, and trust agreement as the City Council shall approve,adopt,amend,or replace by resolution from time to time. (2) The assets of the discontinued defined benefit system shall be allocated and distributed in accordance with such resolution as shall be enacted for that purpose by the Ames City Council. Sec.28.403. PARTICIPANT REVIEW BOARD. (1) There is hereby established an eleven member board to monitor,review,and evaluate on a continuing basis,the performance of the Ames Municipal Utility Retirement Plan,which Board shall make a written report of its findings and recommendations to the City Council not less often than once each fiscal year. (2) The board members shall be selected as follows: (a) one elected from among participants employed for the city water utility; (b) one elected from among participants employed as water pollution control employees; (c) one elected from among participants employed as electric distribution work center employees; (d) one elected from among participants employed for the power plant; (e) one elected from among participants employed for electric administration(which shall include the City Clerk,City Manager,inspection personnel and other non-finance administrative personnel that are participants in the plan); (f) one elected from among participants employed for the City Finance department; (g) one elected from among participants who are retirees (h) the Director of Finance for the City; (i) City Treasurer; and 0) two members of the City Council as selected by the Council. (3) The term of office for the elected members of the board shall be three years. The term for the council members shall be four years. Members may be reappointed or re-elected. Terms of office begin and end on the first day of April. Special elections will be held as soon as practicable to fill vacancies in elected positions. (4) The board shall establish its own rules with respect to voting and other meeting procedures consistent with the Iowa Open Meetings Law." Section Three. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict, if any. Section Four. This ordinance shall be in full force and effect from and after the thirtieth day of September, 1997. Passed this 26th day of August , 1997. F --1 � 9 "�,— Sandra L. Ryan,City Cler Larry R.Curtis,f4ayor 0464