HomeMy WebLinkAbout~Master - Amending Certain Sections of Ordinance 607 (Retirement) f
ORDINANCE NO. 735
AN ORDINANCE AMENDING ORDINANCE NO. 607, AS AMENDED BY ORDINAN4
NO. 632, PARTICULARLY SECTIONS 4, 7, 9, 10, 11, 13, 14 and 15 OF OR.DINAN E
NO. 607, AS AMENDED --- AN ORDINANCE PROVIDING FOR AN ANNUITIES
RETIREMENT SYSTEM FOR EMPLOYEES OF TH_ AMES MUNICIPAL WATER,
;;;L; CTRIC AND SEWAGE TREATMLNT PLANT UTILITIES.
BE IT ORDAINS D BY THE CITY COUNCIL OF THE CITY OF AML.;S, IOWA
than Sections 4, 7, 9, 10, 11, 13, 14 and 15 of Ordinance No. 607 as amended by
Ordinance No. 632 of the City Ordinances of the City of Ames, Iowa are each and
all hereb- specifically repealed and that the following shall hereinaft r be known
respectively as ;sections 4, 7, ` , 10, 11, 13, 14 and 15 of said Ordinance No. 607
as amended.
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. Utilitie s
Utilities shall be limited to any waterworks, gas, or electric light
a; d Power Plants or Sewage Treatment Plants, managed, operated, or owned
by the City of Ames, Iowa.
3. Board
The Board of Trustees at any time acting hereunder.
4. Employee
A person in the employment of the Utilities of the City of Ames, 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
operation, maintenance or management of the said Utiliti s of the City in a
position ordinarily requiring 1,200 hours per year or more.
A physical examination shall be required for all Employees of the
Utilities within thirty(30) days from the date of enactment of this ordinance,
and a physical examination shall be required before any new Employ...e shall
become a participating members of this System.
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 which any Employee was firs
employed 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 resignat on, dismissal, lay-off or expiration of any term of
appointment/, but not excluding active military service of the state or nation.
7. Current jervice
The period beginning on the first day upon which the Employee first
b comes a participating employee and ending on the day of the lat;:st separation
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from service of the Utilities, excluding all intervening periods other than those
during emergencies in which the Employee was in active military service of
the state or _ration but including resignations, dismissal and lay-off in excess of
thirty (30) days.
8. Annuity
A series of uniform monthly payments payable to a retired Employee, the
f-rst such payment to be made as of the beginning of the month following the date
such annuity begins and th.: 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
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.
10 . Regular Interest
3% per year compounded annually.
11. Benefic .ary
Any person who shall have been designated in writing by any partici-
pating employ e to receive all or part of the death benefits to which such employe
had or might become entitled.
12. Military Duty
Military duty shall be defined as service in the armed forces of the
United States of America or State of Iowa during a period of declared war or
National or State emergency, provided the employee was employed by the
employer immediately prior to entry into such armed forces, and further provided
that the employee was released from such service and returns to employment
with the employer within sixty (60) days of the date on which he shall have the
right of release from such armed service.
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 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 bean uniform over such
per od and equal to the monthly earnings cbtained by dividing the
total earnings during the period of three calendar years immediately
preced;ng the effective date, by the number of months in such
period during 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 accumulted 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 payment of earnings is payable to the
Employee.
2. N_ rmal cred_is of amounts equal to each payment of normal
contributions received from such Employee, as of the date the
corresponding payment of earnings is payable to the Emplo ee.
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 receiving regular earnings.
D. For periods of military service, as defined in this ordinance, each
Employee shall be credited as of the end of each month with the utilities
credits the same as though the empkuyee had been working regularly and
receiving regular earnings.
E. 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 provided by the corresponding type 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 thereon, at the regular rate.
Upon the granting of a retirement t''nnuity, 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 separated
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
Annuity of at least $ 10.00 per month, based on the assumption that the employee
was then exactly age 55 years.
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 from the
Utilities by which such Employee was employed.
2. Such date is not more than sixty (60) days prior to the date of
rece ,pt of such application by the Board.
3. The Employee has attained at least age fifty-five (55).
C. The amount of any f-etirement 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:
1. The Annuity which can be provided from she total accumulated
normal and additional credits with interest thereon to the date the Annuity
Ibegins.
i 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 annuity which would
have been provided on th 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 earnings of said employee
to be based on his three consecutive high years of earnings.
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 prior service credits equal to the Annuity which would have
been provided from the total accumulated normal, Utilities and prior service
cred is with interest thereonto 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`Jo of the earnirgs of said employee to be based on his
three consecutive high years of earnings.
D. 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
�j The following described persons shall be entitled to disability benefits,
II beginning on the dates., and continuing for the perio-ds, hereinafter specified:
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I9 A. Any participating Employee who is less than age sixty-five (65)
{j and is unable to perform the duties of any assigned position for any period
i exceeding thirty days, because of mental or physical disability.
B. Such benefits shall begin to accrue on the thirty-first day following
the date upon which such disability was incurred, unless:
1. -written application for such benefits is not rece_ved 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 shall beg.'_n to accrue.
on the day following the day for which th, last payment of earnings
is made 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 certification of a
physician approved or appointed by the Board.
2. Earnings again become payable.
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�f 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 Retiremen., Annuity, to which such Employee
would immediately be entitled from accumulation of normal,
Utilities and prior service credits, if separated from the service,
equals the amount of the disability benefits.
A participating Employee shall be considered disabled only during
erlods for which the Board shall have received:
A. Wr itten 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 th8 duties of any assigned position, and
j 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
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2. Is disabled and as a consequence is not entitled to any earnings
from the City.
The amount of any disability benefits 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 earnings of the Employee based on his three consecutive
high yz=ars of earnings.
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 bntitled to receive any compensation under and by virtue of the
'"Workmen's Compensation .pct," the disability payments due under this System
shall b. reduced by the amount due under the said "W rkments 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 ben fits shall be paid in the form of a single 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 paidinimonthly
installments of not less than $20.00 per month, in which event a sum equal to the eat]
benefit which would otherwise have been payable as a single cash sum shall be
paid as so designated.
3. Whenvor 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 normal credits of such Employee
or $ 1,000.00, 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 ,:,mployee, but before becoming an Annuitant, an amount equal
I to the 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 Retirement Annuity,
the excess of the death benefit which would have been paid had the
Employee died in service on the dat of Retirement, over the sum
of all Annuity payments made to such beneficiary.
SECTION 13: LIMITATION OF BENEFITS
Nothing contained in this ordinance shall be construed as a limitation
of the right of the City to discharge any Employee with or without cause.
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 permission for the extension of the employment
of said Emplo, ee for one year only 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 Cityts Chief Finance Officer,
(2) two City Councilmen appointed by the Mayor with the approval of the
Council, (3) three elected Employees, one elected by the Water Utility employees
and one elected by the Electric Utility employees and one elected by the Sewage
Treatment Plant employ es at elections to be held by the Board of Trustees,
(4) the City Treasurer and th 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. Cityts 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 Wate- Utility for two years and one Employee from
the Sewage Treatment Plant Utility for three years.
At the expiration of these respective terms all members shall serve
terms of three years each or until prior resignation, death, or disqualification.
All trustees shall serve without compensation but shall b� reimbursed
for any reasonable expenses or for any amount of earnings withheld because
of attendance ia.t a Board meeting. Each trustee shall be en .itled to one vote,
xcept ex-officio members, and at least the approval of the majority of the six
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 agonts, physicians, accountants, actuaries or clerical assistants
as it may deem necessary. Decisions made by a majority of the six voting
Trustees not inconsistent with the provisions of this ordinance shall be binding
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and conclusive on all persons. The Board shall be entitled to rely upon the
r�:cords of the City as to the service, age, or earnings of any Employee or
as to any other information pertinent to any calculation or determination under
this Retirement System. The Board shall invest funds of the Retirement System
not currently needed for current costs in investments propier for the funds of the
City of Ames, Iowa, under the laws of the State of Io-,va and the Board may sell
any security belonging to the Retirement System.
The Board shall have the accoun✓s 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 showing the financial condition
of the System as of the end of the calendar year, a statement of receipts and
disbursements during such year, a detailed statement of investments, and such
additional statistics as are deemed nec ssary for a proper consideration of the
condition of the Retirement System and shall annually pr. pare a report for each
participating employee of his accumulated normal, utility and additional credits.
The Board shall in 1949, and at least once in each five-year period there-
after, have an actuarial investigation made of the funds of this System and shall
make a report to the City Council and officials.
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
publications as provided by law.
Passed this 1st day of September, 1953.
J. VtT. rather, City Clerk W. L. Allan, Mayor
Moved by Griffith and seconded by Iverson that Ordinance No. 735 be passed on
its first ireading.
Voting Aye: Griffith, Smith, De Flzrt, Iverson and Moore
Voting NaY: None
Absent: Bauge
Moved by Smith and seconded by Moore that the rules governing the passage of
ordinances be suspended, the sec:=nd and third readings omitted and Ordinance
No. 735 b placed on its final passage
Voting Aye: Griffith, Smith, De Hart, Iverson and Moore
Voting Nay: None
Absent: Bauge
Moved by De Hart and seconded by Iversonthat Ord nance No. 735 do now pass.
Voting Aye: Griffith, Smith, De Hart, Iverson and Moore
Voting Nay: None
Absent: Bauge
Mayor Allan declared Ordinance No. 735 adopted.
I, J. W. Prather, City Clerk of the City of Ames, Iowa, do hereby certify that the
above and foregoing Ordinance No. 735 was duly and properly passed at a
meeting of the City Council on the 1 st day of September, 1953 and published in
the Ames Daily Tribune on the 4th day of September, 1953.
I VIT. L- nry Clerk