HomeMy WebLinkAbout~Master - Amending Certain Sections of Ordinance 607 (Retirement System) i
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ORDINANCE NO. 632
AN ORDINANCE X1IENDING ORDINANCE NO. 607, PARTICULARLY SECTIONS 3, 4,
51 7, 91 10, and 11 OF ORDINANCE No. 607.
Be It Ordained by the City Council of the City of A,__es, Iowa:
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That Sections 3, 4, 51 7, 9, 10, and 11 of Ordinance No. 607
of the City Ordinances of the City of Ames , Iowa, are each and all
hereby specifically repealed, and that the following shall here-
after be xnown respectively as -Sections 3, 4, 5, 7, 9, 10, and 11 of
Ordinance No. 607 :
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"Section 3: Purpose
The -.Dtrpose of this retirement System is to provide
economy and efficiency by furnishing an orderly ideans where- i
by Employees who have become aged or otherwise incapacitated
may be retired without hardship, and to provide certain
benefits in connection therewith.
Section 4: Definitions
The following words and phrases , unless a different
meaning is clearly indicated by the context, shall have the
following respective meanings :
1. City
The City of Ames , Iowa.
2. Utilities
Utilities shall be limited to any waterworks, _as, or
electric lizht plants, managed, operated and owned by the
City of Ames, Iowa.
3, Board
The Board of Trustees at any time acting hereunder.
4. Employee I
A person in the employment of the Utilities of the City
of Xmes, Iowa on or after the effective date of this ordinance
who received regular compensation from the said Utilities
for personal services rendered in connection with the opera-
tion, maintenance or manar,ement of the said Uti-iities of the
City in a position ordinarily requiring; 1200 hours per year
or more.
5. Earnings
Amounts paid by the City to an Employee of the 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 during the period of service within the three years
immediately preceding the effective date of this ordinance.
6. Prior Service
The period beginning on the first day upon 4iich any
Employee was first erriNloyed by the Utilities and ending on
the effective date hereof excluding 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, but not excluding active
military service of the state or nation.
7. 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
Utilities, excluding all intervening periods other than those
during emergencies in which the Employee was in active militar
service of the state or nation but including resignations,
dismissal and lay-off in excess of thirty (30) days.
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8. Annuity
A series of uniform monthly payments parable to a re-
tired Employee, the first such payment to be made as of the
beginning of the month following the date such annuity be-
gins and the last payment to be made as of the beginning of
the month in which death of the retired Employee occurs.
9. Effective Date
This ordinance shall be in full force and effect upon
passage and -,)ublication as provided by law. Notwithstand-
ing any provisions to the contrary, no benefits other than
Disability or Death to be paid before January 1, 1947.
10. Regular Interest
310 per year compounded annually.
ll. Beneficiary
Any person who shall have been designated in writing by
any participating employee to receive all or part of the
death benefits to which such employee had or might become
entitled.
Section 5: 1;mployees Included
All persons who are Employees, as defined herein, on
the effective date and all persons wh:, thereafter become Em-
ployees , as defined 'herein, shall be included in this system. -
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 en-
titled, 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 accumulated value, as of such date, of the contributions
which would have been made during; the entire period of prior
service as such. ;employee, assuming:
1. The earnings of such Employee to have been
uniform over such period and equal to the monthly earn-
ings outained by dividing the total earnings during the
period of three calendar years immediately preceding the
effective date, by the number of months in such period
Burin= which any earnings were received by such Employee.
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.
$. For current service , each participating Employee
shall be credited with:
1. Additional credits of amounts equal to each pay-
ment of additional contributions received from such i
Employee, as of the date the corresponding payment of
earnings is payable to the Employee.
2. Normal credits of amounts equal to each pay-
ment of normal contributions received from such Employee,
as of the date the corresponding y.)ayment of earnings is
payable to the Employee.
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3. Utilities credits of amounts equal to each
normal credit of each Employee , as of the date of each
corresponding normal credit.
C. For periods of disability, each Employee receiving
disability benefits shall be credited as of the end of each
month with normal credits and the Utilities credits the same
as though the Employee had been working regularly and re- �
ceiving 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, i
normal, Utilities and prior service credits of amounts equal
to the then present value of the portion of the terminated �
Annuity which was originally yrovided by the corresponding
t -pe of credit.
The credits of each individual participating Employee
shall be accumulated in a separate account for each type of
credit, and interest shall be credited thereorI, at the
regular rate.
,Upon the Crm ting 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 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 se:jarated from the service of the Utilities of the
City of Ames at any time after the accumulation of all
credits of any such Employee are sufficient to provide an
immediate Annuity of at least <A0.00 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 separation
frora the Utilities b:.vr which such Employee was employed,
2. Such date is not more than sixty (60) days
Vrior to the date of receipt of such application by
e Board.
3. The Employee has attained at least age fifty-
five.
C. The amount of any retirement AI-,nuity shall be the
sum of the following, all determined from credits appiicable
to the Eaployee in accordance with the re€ular rate . of
nterest and the approved actuarial tables in effect at the
time :
1. The Annuity which can be provided from the
total accimmulated normal and additional credits with
Interest thereon to the date the Annuity begins.
2. 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 Hnnuity which would
have been -,provided ,m the date the Employee attained
ge sixty-five (65) from Utilities credits on such
ate with interest thereon to such date, and; provided
that such Annuity small not exceed an amount which
would make the total of the annuity provided from
accumulated normal and Utilities credits with interest
_,.,thereon exceed 60 0 of the average of the earnings dur-
ing the period of service within the three completed
calendar years preceding retirement, and
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3. The Annuity which can be provided from the
total accumulated prior service credits with interest
thereon to the date the Annuity begins; provided that
such Annuity shall not exceed an amount which would
make the Annuity otherwise available from the normal,
Utilities and Ljrior service credits equal to the Annuity
which would have been provided from the total accumulated
normal, Utilities and prior service credits with interest
thereon to the date the Employee attained age sixty-
five (65) or to the effective date of participation,
whichever is later, assuming that the Employee were then
exactly age sixty-five (65) , 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 average of the earn-
ings during the period of service within the three
completed calendar years preceding retirement.
D. Notwithstanding the fact that any Annuity is payable
for life, if any Annuitant receiving a retirement Annuity
again beco lies an 'Employee, the Annuity -payable to the Em-
ployee at that time shall be terminated as of the end of the
calendar month prior to the date u-;,)on which such person again
becomes an Employee.
Section 10: Disability .benefits
The following described persons shall be entitled to
disability benefits, beginning on the dates, and continuing
for the periods, hereinafter specified:
A. Any participating Employee who is less than age
sixty-five (63) and is unable to perform the duties of any
assigned position for any period exceeding__;. thirty days, be-
causel of mental or physical disability.
B. Such benefits shall begin tc accrue on the thirty-
first day followin,-- the date upon which such disability was
incurred, unless :
1. Written application for such benefits is not
eceived 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 appli-
cation, or
2. All earnings have not ceased to be 1Dayabie to
such }�tiployee on such accrual gate, in which case,
benefits shall begin to accrue on the day following the
day for which the last payment of earnings is iiade by
the City.
C. Such benefits shall continue during, the period of
disability until the beginning of' the day upon which the
first of the following occurs :
1. Disability ceases in accordance with the certi-
fication of a physician approved or appointed by the
Board.
2. Earnings again becomes payable.
3. ,efusal to submit to a reasonable physical
examination by any physician approved and appointed by
the3oard.
4. Attainment of age sixty-five (65) .
5. The amount of Retirement Hnnuity, to Which such
�Mployee would immediately be entitled from accumulation
of normal, Utilities and prior service credits , if
separated from the service, equals the amount of the
disability benefit.
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A participatinr- employee shall be considered disabled
only during periods for which the Board shall have received:
A. ',,"fritten 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 assi-ned position,
and
B. 'dritten certification by the Administrative
Officer by whom said vuployee 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.
A physical examination shall be required for all Em-
ployees of the Utilities within thirty (�0) 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 disability shall be 506�) of the earnings
which would have been paid to such Employee, had the Employee
continued in service for the entire period during which dis-
ability benefits are payable, on the assumption that the rate
of earnings during this entire period would have been equal to
the rate of earnings of the Employee on the date such dis-
ability occurred.
All disability benefits shall be payable once a month
as of the end of each calendar month during which any dis-
ability 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
Employee or Annuitant.
2. Such death benefits shall be paid in the form
of a sine-le cash sum unless the Employee prior to his
death shall have designated a beneficiary or beneficiaries
and shall have designated that his death benefit be paid
in monthly instalments of not less than `M .00 per month,
in which event a sum equal to the death benefit which
would otherwise have been payable as a single cash sum '
shall be paid as so designated.
0 3. Whenever 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 :
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1. Upon the death of an Employee w:c.ile an Employee,
an amount equal to the sum of the accumulated normal
and additional credits of such employee or �11000.00,
whichever is greater,, at the date of death of such
Employee.
2. Upon the death of an Employee after such person
ceases to be an Employee, but before becoming an
Annuitant, an amount equal to t4--e sum of the accumulated
normal and additional credits of such Employee on the
date of death.
3. Upon the death of an Annuitant receiving a Retire-
ment Annuity, the excess of the death benefit which would
have been paid had the Employee died in service on the date
of Retirement, over the sum of all Annuity payments made
to such beneficiary. "
All ordinances or parts of ordinances in conflict with the
provisions of this ordinance are hereby repealed.
This amendment to ordinance No. 607 of the City Ordinances of
the City of Ames, Iowa, shall be in force and effect from and after
its passage and publication as provided by law.
Dated this 5th day of MpL'y , 1947.
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Mayor '
Attest :
City Clerk
Moved by Palmer, seconded by McCormick, that Ordinance No. 632 be
passed on its first reading.
Voting Aye: Gray, Knight, McCormick, Acheson, MacDonald, Palmer
Voti-ng Nay: None
Moved by MacDonald, seconded by Palmer, that the rules be suspended.,
the second and third readings omitted and Ordinance No. 632 placed
on final passage.
Voting Aye: Gray, Knight, McCormick, Acheson, MacDonald, Palmer
Voting Nay: None
Moved by Knight, seconded by McCormick, that Ordinance No. 632 do
now pass.
Voting Aye: Gray, Knight, McCormick, Acheson, MacDonald, Palmer
Voting Nay: None
Mayor declared Ordinance No. 632 passed.
I, J. Wo Prather, City Clerk of the City of
Ames, Iowa, do hereby certify that the above
and foregoing Ordinance No. 632 was duly and
properly passed at a meeting of the City Council
on the 5th day of May, 1947, and published in
the Ames Daily Tribune on the 7th day of May,
1947".
. ra er, styClerk
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