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Ames, Iowa
ORDINANCE ITO. 607
AN ORDINANCE PROVIDING FOR AN ANNUITIES FFTIREMENT SYSTEM FOR
EMPLOYEES OF THE AMES MUNICIPAL «TATER AND ELECTRIC UTILITIES.
Section 1: Creation
A Retirement System to be operated and maintained in
accordance with the provisions of this ordinance is hereby created.
Section 2: Name
This Retirement System shall be known as the Ames Utility
Employees Retirement System.
Section 3: Purpose
The purpose of this Retirement System is to provide economy
and efficiency by furnishing an orderly means whereby Employees who
have become aged or otherwise incapacitated may be retired without
hardship.
Section 4: Definitions
The following words and phrases, unless a different mean-
ing is clearly indicated by the context, shall have the following
respective meanings:
1. Ci tv
The City of Ames, Iowa.
2. Board:
The Board of Trustees at any time acting hereunder.
3. Employee:
A person in the employment of the Electric and/or Water
Utilities of the City of Ames, Iowa on or after the effective date
of this ordinance who received regular compensation from the said
Utility or Utilities for personal services rendered in connection
9,with the operation, maintenance or management of the said Electric
and/or Water Utilities of the City and which position ordinarily
requires 1200 hours per year or more.
,4. Earnings:
{ Amounts paid by the City to an Employee of the Electric
and/or Water Utilities for personal services. Earnings prior to
the effective date will be assumed to be at a rate equal to the
average of the earnings within the three years immediately preceding
the effective date of this ordinance.
5, Prior Service:
The period beginning on the first day upon which any
Employee first became an Employee of the Electric anal./or Water
Utilities of the City and ending on the effective date hereof exclud-
ing the intervening periods during which such Employee was separated
from the service following a resignation, dismissal, lay-off or
expiration of any term of appointment, not excluding active military
service of the state or nation.
5a. Current Service:
The period beginning on the first day upon which the
Employee first becomes a participating employee and ending on the
day of the latest separation from service of the Electric and/or
Water Utilities, excluding all intervening periods other than when
called into active military service of the state or nation but
including resignations, dismissal and lay-off in excess of thirty
(30) days.
6. Annuity:
fA series of uniform mont:'--ly payments payable to a retired
Employee, the first such payment to be made as of the beginning of
the month following the date such annuity begins and the last pay-
ment to be made as of the beginning of the month in which death of
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the retired Employee occurs.
7. Effective Date:
This ordinance shall be in full force and effect upon
passage and publication as provided by law. Notwithstanding any
, provisions to the contrary, no benefits other than Disability or
Death to be paid before January 1, 1947.
S. Regular Interest:
3% per year compounded annually.
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Section 5: Employees Included
All persons who are Employees, as defined herein, on the
effective date and all persons who become Employees, as defined
( herein, shall be included in this system.
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Section 5: Contributions by Employees
Each participating Employee shall make contributions to
the system as follows
A. Normal contributions of 5% of each payment of earnings
paid to any such Employee.
B. Additional contributions of such percentages of each
payment of earnings paid to any such Employee as shall be elected
by the Employee.
Each rate of additional contribution shall be a minimum of
30 of each payment of earnings paid to such Employee and may be
increased in multiples of l% of each said payment, but the total
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additional contributions shall not exceed 10% of the payment of
earnings paid to any such Employee.
The selected rate shall be applicable to all earnings be-
ginning on the first day of the month following receipt by the Cityfs
Chief Finance Officer of written notice of election to make such
contributions. Additional contributions at the selected rate shall
be made concurrently with normal contributions and shall continue
at such rate until the end of the calendar year in which written
notice of discontinuance or change is received by the City 's Chief
Finance Officer.
All normal contributions and all additional contributions
shall be deducted from each corresponding payment of earnings paid
to each participating Employee and shall immediately be credited to
this Fund. All normal and additional contributions shall not be
withdrawn from this Fund except as provided for in this ordinance.
Section 7: Credits to Employees
For the purpose of determining the amount of any Annuity
or benefit to which an Employee or beneficiary shall be entitled,
each participating Employee shall be credited with the following
amounts, as of the dates specified:
A. For prior service, each participating Employee who is
an Employee on the effective date, shall be credited, as of such
date, with a prior service credit of an amount equal to the accumu-
lated value, as of such date, of the contributions which would have
been made during the entire period of prior service of such Employee,
assuming.
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1. The earnings of such Employee to have been
uniform over such period and equal to the monthly
earnings obtained by dividing the total earnings
during the period of three calendar years immediate-
ly preceding the effective date, by the number of
months in such period during which any earnings were
received by such Employee. i
2. The rate of contribution to have been 10`,
3. The contributions for each calendar year to
have been made at the end of such year and
4. The contributions to have accumulated with
interest at the rate of 3% per annum compounded
annually.
B. For current service, each participating
Employee shall be credited with;
1. Additional credits of amounts equal to each
payment of additional contributions received from
such Employee, as of the date the corresponding pay-
ment of earnings is payable to the Employee.
2. tlti'litycredits of amounts equal to each pay-
ment of normal contributions received from such Employee,
as of the date the corresponding payment of earnings is
payable to the Employee .
C. For periods of disability, each Employee receiving dis-
ability benefits shall be credited as of the end of each month with
normal credits and the Utilities contributions the same as though
the Employee had been working regularly and receiving regular
earnings .
D. For re-entrance into service upon termination of an
Annuity, each Employee so re-entering shall be credited, as of the
date such Annuity is terminated, with additional, normal, Utilities
and prior service credits of amounts equal to the then present value
of the portion of the terminated Annuity which was originally pro-
vided by the correspond-ing type of credit.
The credits of each individual participating Employee shall
be accumulated in a separate account for each type of credit, and
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interest shall be credited thereon, at the regular rate.
Upon the granting of a retirement Annuity, a death benefit
or a separation benefit, for any Employee, all the individual
accumulated credits of such Employee shall thereupon be terminated.
Section. 8: City Contributions
The City shall make contributions to be determined on a
level premium basis of the amounts which, in addition to the contri-
butions of the Ernployees, are required to meet the costs of maintair_-
ing this Retirement System. The annual contributions of the City
are to be equal to the normal cost of the year required to provide
benefits or Annuities not provided for by Employee contributions,
plus the amount necessary to amortize the remaining unfunded past
service requirement over the remainder of the 40 year period follow-
ing the effective date.
Section 9: Retirement Annuities
The following described persons shall be entitled to
Retirement Annuities, beginning on the dates hereinafter specified:
A. Any participating Employee who, regardless of cause,
is separated from the service of the Electric and/or ,",pater Utilities
of the City of Ames at any time after the accumulation of all credit
of any such Employee are sufficient to provide an immediate Annuity
of at least �10.00 per month.
B. Any such Annuity shall begin on the date specified by
the Employee entitled thereto, in a written application therefor,
provided:
1. Such date is not prior to the date of separa-
tion front the Electric and/or Water Utilities b, which
such Employee was employed.
2, Such date is not more than sixty (60) days prior
to the date of receipt of such applicatl on by the Board.
3. The Employee has attained at least age fifty-five.
The amount of any retirement Annuity shall be the sum of
the following, all determined from credits applicable to the Employee
in accordance with the regular rate of interest and the approved
actuarial tables in effect at the time:
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A. The Annuity which can be provided from the total
accumulated normal and additional credits with interest thereon to
the date the Annuity begins,
B. The Annuity which can be provided from the total
accumulated Utilities credits with interest thereon to the date the
Annuity begins ; provided that such Annuity shall not exceed the
Annuitir which would have been provided on the date the Employee
attained age sixty-five (65) from Utilities credits on such date
with interest thereon to such date, and; provided that such Annuity
shall not exceed an amount which would make the total of the Annuity
provided from accumulated normal and Utilities credits with interest
thereon exceed. 60" of the final rate of earnings, and
C. The Annuity which can be provided from the total
accumulated prior service credits with interest thereon to the date
ithe Annuity begins; provided that such Annuity shall not exceed an
amount which would make the Annuity otherwise available for the
normal, Utilities and prior service credits equal to the Annuity
which would have been provided from the total accumulated normal,
Utilities and prior services credits with interest thereon to the
date the Employee attained age sixty-five (65) and that the prior
service credits had been accumulated at two times the rates, of
Utilities credits for current service, and; provided that such
Annuity shall not exceed an amount which would make the total of the
Annuities provided from the accumulated normal, Utilities and prior
service credits with interest thereon, exceed 50% of the final rate
of earnings .
Notwithstanding the fact that any Annuity is payable for
life, if any Annuitant receiving a retirement Annuity, again becomes
an Employee, the Annuity payable to the Employee at that time shall
be terminated as of the end of the calendar month prior to the date
upon which such person again becomes an Employee.
Section 10: Disability Benefits
The following described persons shall be entitled to dis-
ability benefits, beginning on the dates, and continuing for the
periods, hereinafter specified:
A. Any participating Employee who is less than age sixty-
five (65) and is unable to perform the duties of any assigned
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position for any period exceeding thirty days, because of mental or
physical disability.
B. Such benefits shall begin to accrue on the thirtyfirst
day following the date upon which such disability was incurred,
unless;
1. Written application for such benefits is not
received by the Board ,within sixty days of such
accrual date, in which case, benefits shall begin to
accrue on the day sixty days prior to the receipt of
such application, or
2. All earnings have not ceased to be payable to
such Employee on such accrual date, in which case,
benefits shah begin to accrue on the day following
the day for which the last payment of earnings is made
by the City.
C . Such benefits shall continue during the period of dis-
ability until the beginning of the day upon which the first of the
following occurs;
1. Disability ceases in accordance with the
certification of a physician approved or appointed
by the Board.
2. Earnings again becomes payable.
3. Refusal to submit to a reasonable physical
examination by any physician approved and appointed
by the Board.
4. Attainment of age sixty-five (65) .
5. The amount of Retirement Annuity, to which
such employee would immediately be entitled from
accumulat:i.on of normal, Utilities and prior service
credits, if separated from the service, equals the
amount of the disability benefit.
A participating Employee shall be considered disabled only
during periods for which the Board shall have received;
A. Written certification by at least two licensed and
practicing physicians approved or appointed by the Board, that the
Employee is disabled and unable to reasonably perform the duties of
any assigned position, and
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B. Written certification by the Administrative Officer by
whom said Employee is employed to the Board that such Employee;
1. Is not separated from the service of the City, and.
2. Is disabled and as a consequence is not entitled to
any earnings from the City.
3. A Physical examination shall be required for all
Employees of the Electric and/or Water Utilities within
thirty (30) days from the date of enactment of this
Ordinance, and a physical examination shall be required
before any new Employee shall become a participating
member of this System.
The amount of any disabi li t,.- benefit shall be 50� of the
earnings which would have been paid to such Employee, had the
Employee continued in service for the entire period during which
disability benefits are payable, on the assumption that the rate of
earnings during this entire period would have been equal to the rate
of earrings of the Employee on the date such disability occurred.
All disability benefits shall be payable once a month 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.
Notwithstanding any provision 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 said "Workmen ' s Compensation Act."
Section 11: Death Benefits
A. The following described persons shall be entitled to
death benefits, in the form and at the time hereinafter specified;
1. The beneficiary of any participating Employee
or of any Annuitant, on the date of death of such
I Employee or Annuitant .
2. Such death benefits shall be paid in the form
of a single cash sum except where an Annuity is payable
hereunder.
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3. 'Khenever any death benefit is payable in a
single cash sum, it shall be paid to the designated
beneficiary as soon as practicable after receipt by
the Board of a certified copy of the death certificate
of the .Employee or Annuitant ,
B. The Amount of death benefit shall be;
1, Upon the death of an Employee while an Employee,
an amount equal to the sum of the accumulated additional
credits and in addition normal, prior and Utilities
credits of such Employee or �v500.00, whichever is greater
at the date of death of such Employee.
2. Upon the death of an anployee after such person
ceases to be an Employee, but before becoming an
Annuitant, an amount equal to the sum of the accumulated
additional credits and normal, prior and Utilities
credits of such Employee on the date of death.
3, Upon the death of an Annuitant receiving a
beneficiary Annuity, the excess of the death benefit
which was used to provide the Annuity, over the sum
of all Annuity payments made to such beneficiary.
4. Notwithstanding any provision to the contrary,
if any beneficiary receives or is entitled to receive
any compensation on account of death and by virtue of
the "Wor kments Compensation Act", the death benefits
due under this System shall be reduced by the amount
due under the said "Workmen' s Compensation Act."
Section 12; Separation Benefits
The following described persons shall be entitled to
separation benefits, at the times hereinafter specified.
A, Any participating Employee who ceases to be an Employee,
' who, on the date of application for such benefits is not eligible
for Retirement Annuity benefits.
B. Such. separation_ benefits shall be paid in the form of
a single cash sum as soon as practicable after receipt by the City 's
Chief Finance Officer of;
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1. Written notice from the Administrative Officer
by whom employed that such inployee has been separated
from the Service.
The amount of any separation benefits shall be the sum of
the accumulated additional and normal credits of the Employee as of
the date of separation from the service. l
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Section 1.3; Limitation of Benefits
Nothing contained in this ordinance shall be construed as I
a limitation of the right of the City to discharge any Employee with
or without cause.
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Retirement shall be compulsory at the age of sixty-five
(65) to be effective at the end of the month in which such age is
attained, with the exception that the City Council may grant per-
mission for the extension of the employment of said Employee on a
year to year basis upon recommendation of the Administrative Officer
by whom said Employee is employed.
Section 14: Board of Trustees
This System shall be construed to be a Trust and shall be
administered by a Board of Trustees composed of; (1) the City 's
Chief Finance Officer, (2) two City Councilmen appointed by the
Mayor with the approval of the Council, (3) two elected —",mployees,
one elected by the Water Utility employees and one elected by the
Electric Utility employees at elections to be held by the Board of
Trustees, (4) the City Treasurer and the City Attorney to be ex-
officio members without voting power.
The terms of office for the first Board of Trustees shall
be as follows;
1. City 's Finance Officer - three years .
2. One Councilman for two years and one for one year.
3. One Employee from the Electric Utility for one
year and one Employee from the V+ater Utility for two years .
At the expiration of these respective terms all members shall serve
terms of three years each or until prior resignation, death or dis-
qualification.
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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. Each trustee
shall be entitled to one vote, except ex-officio members, and at
least the approval of the majority of the five voting Trustees shall
be necessary for every decision or action by the Board of Trustees .
Section 15: Powers and Duties of the Board of Trustees
The Board of Trustees may adopt such rules and actuarial
tables, and employ such agents, physicians, accountants, actuaries
or clerical assistants as it may deem necessary. Decisions made by
a majority of the five voting Trustees not inconsistent with the f
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provisions of this ordinance shall be binding and conclusive on all
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persons. The Board shall be entitled to rely upon the records of I
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the City as to the Service, age, or earnings of any Employee or as
to any other information pertinent to any calculation or determina-
tion under this Retirement System. The Board shall invest funds of
the Retirement System not currently needed for current costs in
investments proper for the funds of the City of Ames, Iowa ur_der the
laws of the State of Iowa and the Board may sell any security belong
ing to the Retirement System.
The Board shall have the accounts of the Retirement System
audited annually by a certified public accountant and shall submit
an annual statement to the City Council as soon after the end of
each calendar year as is possible. Such statement shall include a
balance sheet snowing the financial condition of the System as of p
the end of the calendar year, a statement of receipts and disburse-
ments during such year, a detailed statement of investments, and suc
additional statistics as are deemed necessary for a proper consider
tion of the condition of the Retirement System,
The Board shall in 1949 and at least once in each five year
period thereafter have an actuarial investigation made of the funds
jof this System and shall make a report to the City Council and
f offi ci als.
Section 16: Retirement Fund
All the contributions made under the provisions of this
° Retirement System together with the income thereon shall constitute
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the funds of this Retirement System and such funds shall be held to
pay the benefits, Annuities and expenses of administration of this
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Retirement System and shall not be used for any other purpose.,
The City Treasurer shall be 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 such Treasurer or of his agents. The
bond shall be in such amount as the Trustees may designate and all
reasonable charges for such bond shall ')e paid by the Board.
All the funds of the Retirement System and all 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 vouchers siSned by the
Chief Finance Officer of the City of Ames and only as authorized by
the Board of Trustees.
The Chief Finance Officer of the City of Ames, Iowa 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 finance officer or of his agents. The bond shall
be in such amount as the Trustees may designate and all reasonable
charges for such shall be paid by the Board.
Section 17
This ordinance shall be in full force and effect from and
after its passage and publi.cat-.on as provided by law.
Dated. this 5 th day of December , 1945
play or Z
i. B. n°anning
' Attest:
r
.y er
J. V-1 Prather
; Published in the Ames gaily Tribune December 5, 1945
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