HomeMy WebLinkAbout~Master - Relating to Annuities Retirement, Repealing Ordinance 607, 632, 718, 735 4
TEMPORARY ORD. NO. 14 Permanent Ord. No. 769
AN ORDINANCE PROVIDING FOR AN ANNUITIES RETIREMENT SYSTEM FOR
EMPLOYEES OF THE AMES MUNICIPAL UTILITIES AND REPEALING ORD-
INANCE NUMBERS 607, 632, 718 and 735 AND ALL ORDINANCES OR PARTS
OF ORDINANCES IN CONFLICT HEREWITH.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF AMES, IOWA:
Section 1. Creation. A retirement system to be operated and
i maintained in accordance with the provisions of tlis ordinance is hereby created.
Section Z. Name. This retirement system shall be known as the Ames
municipal utility employees retirement system.
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Section 3. Purpose. The purpose of this retirement system is to I
provide economy and efficiency by furnishing an orderly means whereby employees
who have become aged or otherwise incapacitated may be retired without
hardship, and to provide certain benefits in connection therewith.
DEFINITIONS.
Section 4. Definitions. The following words and phrases, unless a
II different meaning is clearly indicated by the context, shall have the following
lj r e spe gtive meanings.
Section 4. 1. City. The City of Ames, Iowa..
Section 4. 2. Utilities. Utilities shall be limited to any waterworks, I
''. gas, electric light and power and sewage treatment plants, managed, operated
and owned by the City of Ames, Iowa.
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Section 4. 3. Board. The board of trustees at any time acting here-
under.
,I Section 4. 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 I
11 rendered in connection with the operation, maintenance or management of the
said utilities of the city in a position ordinarily requiring 1, 200 hours per year ox�
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more.
Section 4. 5. Physical Examination. Each applicant for employment
shall be required to pass a physical examination, by a physician designated by
the city, before such applicant becomes an employee as defined in this ordinance.
Section 4. 6. Earnings. Amounts paid by the utility to an employee of
the utility for personal services.
Section 4. 7. Prior Earnings. Earnings prior to the effective date
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shall be assumed to be at a rate equal to the average of the earnings during the
ithin the three years immediately preceding the effective
period of service w
date as defined herein.
Section 4. S. Effective Date. The effective date as referred to in
this ordinance shall be December 5, 1945, and no benefits other than disability
or death shall be paid prior to January 1, 1947.
Section 4. 9. Prior Service. The period beginning on the first day upo�
'\ which any employee was first employed by the utilities and ending on the effective
g \� date hereof excluding the intervening periods during which such employee was
11 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.
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II Section 4. 10. Current Service. The period beginning on the first day
upon whiff the employee first becomes a participating employee and ending on th
day of the latest separation from service of the utilities, excluding all intervenin
periods other than those during emergencies in which the employee was in active
military service of the state or nation but including resignations, dismissal and
lay-.off in excess of thirty (30) days.
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Section 4. 11. Military Duty. Military duty shall be service in the �
armed forces of the United States of America or state of Iowa during a period of
i declared war or national or state emergency, provided the employee was employed
mediately prior to entry into such armed forces,
in the utility services of the city im
! and further provided that the employee was released from such service and returns
for employment by the city within sixty (60) days of the date on which he shall have
the right of release from such armed service.
Section 4. 12. Annuity. A series of uniform monthly payments payable
to a retired employee, the first such payment to be made as of the beginning of
I, the month following the date such annuity begins and the last payment to be made
jl as of the beginning of the month in which death of the retired employee occurs.
Section 4. 13. Annuitant. Any person who receives an annuity.
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Section 4. 14. Beneficiary. Any person who shall have been designated
I in writing by any participating employee to receive all or part of the death
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j! benefits to wlich such employee had or might become entitled.
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Section 4. 15. Regular Interest. 3'fo per year compounded annually. i
II of five per cent (5%)
Section 4. 16. Normal Credits. A contribution
of each payment of earnings paid by the utility to such employee.
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I! Section 4. 17. Additional Credits. Additional contributions elected
' to be made by the employee in excess of the five per cent (5%) normal credits.
Ij Section 4. 18. Utility Credits. Amounts contributed by the utility
and credited to the employee.
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�l Section 5. Employees Included. All persons who are employees as I
defined herein, on the effective date and all persons who thereafter become
shall be included in this system.
employees, as defined herein,
CONTRIBUTION BY EMPLOYEES
Section 6. Contributions by Employees. Each participating employee
(� shall make contributions to the system as follows:
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a. Normal contributions of 5% of each payment of earnings
paid to any such employee.
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b. Additional contributions of such percentages of each payment
of earnings paid to any such employee as shall be elected by the
employee.
Section 7. Rate of Additional Contributions. Each rate of additional
contribution shall be a minimum of 376 of each payment of earnings paid to
such employee and may be increased in multiples of 1% of each said payment, but
the total additional contributions shall not exceed 10 per cent of the payment of
j earnings paid to any such employee. The selected rate shall be applicable to
all earnings beginning on the first day of the month following receipt by the
city' s chief finance officer of written notice of election to make such 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.
i Section 8. Crediting and Withdrawal of Contributions. All normal
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contributions and all additional contributions shall be deducted from each
corresponding payment of earnings paid to aach participating employee and shall
immediately be credited to this fund. Normal and additional contributions shall
not be withdrawn from this fund ex'dept as provided for in this ordinance.
CREDITS TO EMPLOYEES
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Section 9. 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 amounts and as
of the dates herein specified.
Section 10. Credits for Prior Service. 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
lmade during the entire period of prior service as such employee, assuming:
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a. The earnings of such employee to have been uniform over
suchperiod and equal to the monthly earnings obtained 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 during which any earnings were received
by such employee.
b. The rate of contribution to have been 10%.
c. The contributions for each calendar year to have been made
at the end of such year, and
d. The contributions to have accumulated with interest at the rate
of 3% per annum compounded annually.
Section 11. Credits for Current Service. For current service, each
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participating employee shall be credited with:
a. Additional credits of amounts equal to each payment of additional
contributions received from sueh employee, as of the date the
corresponding payment of earnings is payable to the employee.
b. Normal credits 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 employee.
Ii c. Utilities credits of amounts equal to each normal credit of each
employee, as of the date of ea0h corresponding normal credit.
Section 12. Credits for Disability. 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, which
credits shall be based on his earnings at the time of his disability.
Section 13. Credits for Military Service. For military service, as
defined in this ordinance, each employee shall be credited as of the end of eash
month with the utilities credits the same as though the employee had been
working regularly and receiving regular earnings, which credits shall be based
on the earnings at the time of his entering military service.
Section 14. Credits Upon Re--entering Utility Service. For re-entran e
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 tothe then present value
of the portion of the terminated annuity which was originally provided by the
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corresponding type of credit.
Section 15. Individual Account of Credits - Interest. 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 interest rate.
Section 16. Termination of Accumulated Credits. Upon the granting
of a retirement annuity, a death benefit, or a separate benefits for any employe
all the individual accumulated credits of such employee, shall thereupon be
terminated.
UTILITY CONTRIBUTIONS
Section 17. Utility Contributions. The utility shall make contributions
to be determined on a level premium basis of the amounts which, in addition
to the contributions of the employees, are required to meet the costs of
maintaining this retirement system. The annual contributions of the utility
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
i of the 40»year period following the effective date.
RETIREMENT ANNUITIES
Section 18. Persons Entitled to Retirement Annuities. Any partici
pating 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 $10. 00
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per/month, based on the assumption that the employee was then exactly age 55
year s,
Section 19. Date When Retirement Annuity Begins. Any such
retirement annuity shall begin on the date specified by the employee entitled
thereto, in a written application therefor, provided:
a. Such date is not prior to the date of separation from the utilities
by which such employee was employed.
b. Such date is not more than sixty (60) days prior to the date of
receipt of such application by the board of trustees.
c. The employee has attained at least age fifty-five (55).
Section 20. Amount of Retirement Annuity. The amount of any
retirement annuity shall be the sum of the following, all determined from
credits applicable to the employee in accordance with the regular rate of
interest and the actuarial tables as approved by the board of trustees in effect
at the time:
a. The annuity which can be provided from the total accumulated
normal and additional credits with interest thereon t• the date
the annuity begins.
b. The annuity whi5ch can be provided from the total accumulated
utilities credits with interest thereon to the date the annuity
jbegins; provided that such annuity shall not exceed the annuity
j w1a3,ic$would have been provided on the date the employee attained
age sixty-five (65) from the utilities credits on such date with
interest thereon to such date, and; provided that such annuity
shall not exceed an amount which would make tht total of the
( annuity provided from accumulatedmr mal and utilities credits
with interest thereon exceed 60% of the earnings of said employee
I� to be based on his three consecutive high years of earnings.
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c. 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
i the normal, utilities and prior service credits equal to the
annuity whi-�, would have beenprovided from the total accumulated
normal, utiAes and prior service credits with interest thereon
to the date the employee attained age sixty-five (65) or to the
effective date of participation, which ever is later, assuming
that the employees were then exactly age sixty-five (65), and;
provided that such annuity shall not exceed an amount which
would mace the total of the annuities provided from the accumu-
lated normal, utilities and prior service credits with interest
thereon, exceed fifty per cent (50%) of the earnings of said
employee to be based on his three consecutive high years of
earnings.
Section 21. Payments Terminated Upon Re-entry to Service. Not-
withstanding the fact that any annuity is payable for life, if :Way 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 beeomes an employee.
DISABILITY BENEFITS
Section 22. Disability Benefits. Any part}cipating employee who is
less than age sixty-five (65) and is unable to perform the duties of any assigned
position for any period exceeding thirty (30) days, because of mental or
physical disability shall be entitled to disability benefits, beginning on the
dates and continuing for the periods hereinafter specified.
Section 23. Date Disability Benefits Begin. Disability benefits shall
begin to accrue- on the thirty--first day following the date upon which such
disability was incurred, unless:
a. 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
b. All earnings have not ceased to be payable to such employee on
such accrual date, in which case, benefits shall begin to accrue
on the day following the day for which the last payment of
earnings is made by the city.
Section 24. Termination of Disability Benefits. Disability benefits
shall continue during the period of disability until the beginning of the day upon
which the first of the following occurs:
a. Disability ceases in accordance with the certification of a
physician approved or appointed by the board.
b. Earnings again become payable.
c. Refusal to submit to a reasonable physical examination by any
physician approved and appointed by the board.
d. Attainment of age sixty-five (65).
e. The amount of retirement 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.
II Section 25. Conditions for Disability. A participating employee shall
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be considered disabled only during periods for whichthe 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
b. Written certification by the administrative officer by whom said
employee is employed to the board that such employee:
1. Is not separated fromthe service of the cgity, and
Z. Is disabled and as a consequence is not entitled to any
earnings from the city.
Section 26. Amount of Disability Benefit. The amount of any
monthly disability 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
earnings of the employee based on his three consecutive high years of earnings.
Section 27. Monthly Disability Benefits. A11, 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.
Section 28. Credit for Workman's Compensation. 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 reduoed by the amount du
under the said "Workmen' s Compensation Act. '
j DEATH BENEFITS
Section 29. Death Benefits. The beneficiary of any participating
employee er of any annuitant, on the date of death of such employee or annuitant
shall be entitled to death benefits as hereinafter specified.
Section 30. Payment of Death Benefits. Death benefits 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 paid in monthly installments of not less than $20. 00 per
month, in which event a sum equal to the death benefit which would otherwise
have been payable as a single cash slam shall be paid as so designated. When-
ever 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.
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Section 31. Amount of Death Benefits. The amount of death benefit
shall be:
a. 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.
b. Upon the death of an employee after such person ceases to be
an employee, but before becoming an annuitant, an amount
equal to the sum of the accumulated normal and additional
credits of such employee on the date of death,
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c. 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 date of retirement:, over
the sum of all annuity made to such beneficiary.
SEPARATION BENEFITS
Section 32. Separation Benefits. Any participating employee who
ceases to bean employee, who, on the date of application for such benefits is
not eligible for retirement annuity benefits shall be entitled to a separation
benefit.
Section 33. Payment of Separation Benefits. 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 a written notice from the adminis-
trative officer by whom employed, that such employee has been separated from
the service.
Section 34. Amount of Separation Benefits. The amount of any
separation benefit shall be the sum of the accumulated additional andnormal
credits of the employee as of the date of separation from the service.
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LIMITATION OF BENEFITS -- RETIREMENT AGE
Section 35. Limitation of Benefits. Nothing contained in this
ordinance shall be construed as a limitation of the right of the utility to discharg
i any employee with or witliout cause.
36. Retirement Compulsory - Age 65. Retirement shall be
II 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 employee for one year
only, upon recommendation of the administrative officer by whom said employee
is employed.
f BOARD OF TRUSTEES
Section 37. 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) three elected employees, one
elected by the water utility employees, one elected by the electric utility
employees and one elected by the sewage treatment employees at elections to
I� be held by the board of trustees, (4) the city treasurer and the city attorney
to be ex-officio members without voting power.
Se'Ction 38. Te s of Office of Trustees. The terms of office for
the first board of trustees hall be as follows:
a. City's financ officer.
b. One c ouncilman for two years and one for one year.
c. One employee from the electric utility for one year and one employee
from the water 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
1 three years each or until prior resignation, death, or disqualificatinn.
Section 39. Compensation of Trustees. All trustees shall serve
without compensation but shall be reimbursed for any reasonable expenses or
ifor any amount of earnings withheld because of attendance at a board meeting.
Section 40. Voting by Trustees. Each trustee shall be entitled
to ,gne vote, except 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 41. 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 nec-
essary. Decisip-ns made by a majority of the six voting trustees not inconsistent
with the provisions of this ordinance shall be binding and conclusive on all
persons. The board shall be entitled to rely upon the records 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 qyr r ently
needed for current costs in investments propa;r for the funds of the City of
Ames, Iowa, under the laws of the state of Iowa and the board may sell any
security belonging 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 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 necessary for a proper consideration o
the condition of the retirement system, and shall annually prepare 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
thereafter, have an actuarial investigation made of the funds of this system and
shall make a report to the city,�-ouncil and officials.
RETIREMENT FUND
Section 42. Retirement Fund . All the contributions made under the
provisions of this retirement system together with the income thereon shall
constitute the funds of this retirement system and such .funds shall be held to
pay the benefits, annuities and expenses of administration of this retirement
system and shall not be used for any other purpose.
Section 43. Treasurer of Retirement Fund. 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 agctLta. The bond
shall be in such amount as the trustees may designate and all reasonable
charges for such bond shall be paid from the retirement fund.
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 signed by the chief finance officer of the City of Ames and only as
authorized by the board of trustees.
Section 44. Bond of Finance Officer. The chief finance officer 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 a4d all reasonable charges for such shall be paid by the board.
Section 45. Ordinance Numbers 607, 632, 718 and 735 and all other
ordinances or parts of ordinances in conflict herewith are hereby repealed.
Section 46. This ordinance shall be in full fp-rce and effect from and
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after its passage and publication as provided by law.
Passed this 14th day of December, 1954.
J. Prather, CityClerk J. P. Lawlor, Mayor
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Moved by Griffith and seconded by Bolton that Temporary Ordinance No. 14 be
passed on its first reading.
I Voting Aye: Griffith, Judge, Smith, De Hart, Bolton and Bliss
Voting Nay: None
Absent: None
Moved by De Hart and seconded by Bliss that the rules governing the passage of
ordinances be suspended, the second and third readings omitted and Temporary !
Ordinance No. 14 be placed on its final passage.
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Voting Aye: Griffith, Judge, Smith, De Hart, Bolton and Bliss
! Voting Nay: None
Absent: None
Moved by Bolton and seconded by Smith that Temporary Ordinance No. 14 be
passed on its final reading.
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Voting Aye: Griffith, Judge, Smith, De Hart, Bolton and Bliss
Voting Nay: None
Absent: None
iMayor Lawlor declared Temporary Ordinance No. 14 duly passed.
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I I, J. W. Prather, City Clerk of the City of Ames, ,Iowa, do hereby certify that
Ordinance No. 769 was duly and properly adopted by the City Council at a
meeting on December 14, 1954, and published by codifying on the c6c day of
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J. W. Prather, CityClerk
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