HomeMy Public PortalAbout123953491200
O R D I N A N C E NO. 12395
AN ORDINANCE, repealing Ordinance No. 11781, as adopted July 8, 2004, and enacting a new
ordinance in lieu thereof establishing a retirement system to provide for the pensioning and other welfare
benefits for employees of The Metropolitan St. Louis Sewer District, and the spouses and minor children
of deceased employees, and providing for the payment of public funds for such purpose in pursuance of
the Missouri Constitution 1945 as amended, and the Missouri Statute enacted authorizing said Pension
Plan, and the Plan of The Metropolitan St. Louis Sewer District.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS
SEWER DISTRICT:
Section One. Ordinance No. 11781, as adopted July 8, 2004, is hereby repealed, effective June 1,
2007, without, however altering or extinguishing the legal relationships established by such Ordinance.
Section Two. The post retirement increase in pension benefits as provided in Section 7.9 of the
Pension Plan, which is contained in Section Three of this Ordinance, shall be annually reviewed by the
Board of Trustees in the fourth quarter of each calendar year beginning in 1990. The purpose of such
annual review shall be to determine if an adjustment in such post retirement benefit increases is
appropriate taking into consideration all of the relevant facts and circumstances applicable to both the
Pension Plan and the District.
Section Three. There is hereby established a Pension Plan to provide for the pensioning and other
retirement benefits of employees of The Metropolitan St. Louis Sewer District and the spouses and minor
children of deceased employees, and providing for the payment of public funds for such purpose, in
pursuance of the Missouri Constitution 1945, as amended, and the Missouri Statute enacted authorizing
said Pension Plan, and the Plan of The Metropolitan St. Louis Sewer District. Unless otherwise provided
thereinafter, the provisions of said Pension Plan shall apply to employees who terminate their
employment at the District on or after June 1, 2007. The entitlements and benefits payable to Members
who terminate their employment at the District prior to June 1, 2007, shall be determined according to the
provisions of the Pension Plan as it existed on the date such a Member separated from service with the
Metropolitan St. Louis Sewer District. The Pension Plan shall read as follows:
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TABLE OF CONTENTS
ARTICLE I DEFINITIONS ......................................................................................................................... 1
1.1 “Accrued Retirement Benefit” ............................................................................................ 1
1.2 “Alternate Retirement Date” ............................................................................................... 1
1.3 “Beneficiary” ...................................................................................................................... 1
1.4 “Board” ............................................................................................................................... 1
1.5 “Carrier”.............................................................................................................................. 1
1.6 “Claims Appeal Reviewer” ................................................................................................. 1
1.7 “Claims Processor” ............................................................................................................. 1
1.8 “Code” 1
1.9 “Covered Earnings” ............................................................................................................ 1
1.10 “Continuous Service” ......................................................................................................... 1
1.11 “Credited Service” .............................................................................................................. 2
1.12 “Determination Date” ......................................................................................................... 2
1.13 “Disability Retirement Date” .............................................................................................. 2
1.14 “District” ............................................................................................................................. 2
1.15 “Early Retirement Date” ..................................................................................................... 2
1.16 “Earnings” ........................................................................................................................... 2
1.17 “Employee” ......................................................................................................................... 2
1.18 “Employer” ......................................................................................................................... 2
1.19 “Final Average Earnings” ................................................................................................... 2
1.20 “Investment Manager” ........................................................................................................ 3
1.21 “Member” ........................................................................................................................... 3
1.22 “Normal Retirement Date” ................................................................................................. 3
1.23 “Option Date” ..................................................................................................................... 3
1.24 “Pay Period” ....................................................................................................................... 3
1.25 “Pension Committee” ......................................................................................................... 3
1.26 “Pension Fund” ................................................................................................................... 3
1.27 “Pension Plan” .................................................................................................................... 3
1.28 “Plan Administrator” .......................................................................................................... 3
1.29 “Plan Year” ......................................................................................................................... 4
1.30 “Points” ............................................................................................................................... 4
1.31 “Postponed Retirement Date” ............................................................................................. 4
1.32 “Required Beginning Date” ................................................................................................ 4
1.33 “Retirement Date” ............................................................................................................... 4
1.34 “Separation From Service” ................................................................................................. 4
1.35 “Social Security Wage Base” .............................................................................................. 4
1.36 “Trust Agreement” .............................................................................................................. 4
1.37 “Trustee” ............................................................................................................................. 4
1.38 “Vested Member” ............................................................................................................... 4
ARTICLE II ELIGIBILITY AND PARTICIPATION ................................................................................. 4
2.1 Eligibility. ........................................................................................................................... 4
2.2 Termination of Participation. .............................................................................................. 4
ARTICLE III CONTRIBUTIONS................................................................................................................ 4
3.1 District Contributions. ........................................................................................................ 4
3.2 Funding of Liabilities. ......................................................................................................... 5
3.3 Return of Employer Contributions. ..................................................................................... 5
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3.4 Forfeitures. .......................................................................................................................... 5
ARTICLE IV RETIREMENT BENEFITS ................................................................................................... 5
4.1 At Normal Retirement Date. ............................................................................................... 5
4.2 Early Retirement Benefit. ................................................................................................... 6
4.3 At Postponed Retirement Date............................................................................................ 6
4.4 At Disability Retirement Date. ........................................................................................... 6
4.5 Conditions on Payment of Disability Benefits. ................................................................... 7
4.6 Maximum Retirement Income. ........................................................................................... 8
4.7 Accrued Retirement Benefit Under Prior Restatement of Plan. ......................................... 8
ARTICLE V BENEFITS ON TERMINATION OF EMPLOYMENT ........................................................ 8
ARTICLE VI DEATH BENEFIT................................................................................................................. 8
6.1 Death of a Vested Terminated Member. ............................................................................. 8
6.3 Death of a Member After Retirement. .............................................................................. 10
ARTICLE VII PAYMENT OF RETIREMENT BENEFITS ..................................................................... 10
7.1 Normal Form of Payment. ................................................................................................ 10
7.2 Optional Forms of Payment. ............................................................................................. 10
7.3 Small Benefits. .................................................................................................................. 11
7.4 Election of Optional Form of Payment. ............................................................................ 11
7.5 Special Distribution Option. ............................................................................................. 12
7.6 Limitations on Special Distribution Option. ..................................................................... 12
7.7 Written Explanation of Rollover Treatment. .................................................................... 13
7.8 Required Distribution. ...................................................................................................... 13
7.9 Increase in Benefits Under the Plan. ................................................................................. 13
7.10 Vested Member. ................................................................................................................ 15
ARTICLE VIII ADMINISTRATION OF THE PENSION PLAN ............................................................ 15
8.1 Duties and Membership of Pension Committee. .............................................................. 15
8.2 Plan Administration. ......................................................................................................... 16
8.3 Claim Decision. ................................................................................................................ 17
8.4 Request For Review. ......................................................................................................... 17
8.5 Review of Decision. .......................................................................................................... 17
ARTICLE IX MANAGEMENT, INVESTMENT AND USE OF FUNDS ............................................... 18
9.1 Investment of Pension Fund.............................................................................................. 18
9.2 Investment Manager. ........................................................................................................ 18
9.3 Authority of Board. ........................................................................................................... 18
ARTICLE X AMENDMENT OR TERMINATION OF THE PENSION PLAN ...................................... 18
ARTICLE XI MISCELLANEOUS PROVISIONS .................................................................................... 19
11.1 Members’ Rights. .............................................................................................................. 19
11.2 Spendthrift Provisions. ...................................................................................................... 19
11.3 Incapacity. ......................................................................................................................... 19
11.4 Administration of the Plan. ............................................................................................... 19
11.5 Suspension of Benefits Upon Reemployment. ................................................................. 19
11.6 Trust Sole Source of Benefits. .......................................................................................... 19
11.7 Actuarial Assumptions. ..................................................................................................... 20
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11.8 Notice of Address. ............................................................................................................ 20
11.9 Furnishing Data. ................................................................................................................ 20
11.10 Retiree Medical Coverage................................................................................................. 20
Exhibit A Special Effective Dates for Union Members
903852.13
ARTICLE I
DEFINITIONS
The following words and phrases, when used hereafter in this document, shall have the meanings
set forth below:
1.1 “Accrued Retirement Benefit” means the sum of a Member’s retirement benefits based on
his Credited Service and Final Average Earnings, to the Determination Date as set forth in Article IV and
payable to him commencing on his Normal Retirement Date.
1.2 “Alternate Retirement Date” means the first day of any month selected by a Member
following his Separation From Service on which benefits commence, provided the Member is a Vested
Member and has Eighty (80) Points on the day on which he has a Separation from Service.
1.3 “Beneficiary” means the person or legal entity named by a Member in accordance with
procedures established by the Plan Administrator to receive any payment payable under the Plan in the
event of the death of a Member. In the manner and within the limits prescribed by the Plan
Administrator, a Member may designate more than one Beneficiary to share a death benefit; provided,
however, if a Member names his/her spouse to receive a death benefit, the Member may not name any
other non-spousal co-Beneficiary to receive a benefit with such spouse. If the Member does not name
his/her spouse as a Beneficiary, the Member may name multiple non-spousal co-Beneficiaries who will
receive the death benefit in the respective percentage interests designated by the Member. If no
Beneficiary is designated by the Member, or if no named Beneficiary (or contingent Beneficiary) is living
or in existence at the time a death benefit is payable, the estate of the deceased Member shall be the
Beneficiary. A Member may change or revoke a Beneficiary designation at any time without the consent
of the Beneficiary by filing a new Beneficiary designation form with the Plan Administrator. Any change
of Beneficiary designation shall revoke all prior Beneficiary designations made by a Member.
1.4 “Board” means the Board of Trustees of the District.
1.5 “Carrier” means any insurance company which issues insurance or annuity contracts to fund
retirement benefits under the Pension Plan.
1.6 “Claims Appeal Reviewer” means a subcommittee of the Board of Trustees as designated by
the Board of Trustees to review benefit entitlement claims under the Pension Plan.
1.7 “Claims Processor” means the Plan Administrator.
1.8 “Code” means the Internal Revenue Code of 1986, as amended.
1.9 “Covered Earnings” means the average of the Social Security Wage Bases for each calendar
year during the thirty-five (35) year period ending with the last day of the calendar year in which the
Member attains Social Security retirement age (as defined in Code Section 415(b)(8)). The Social
Security Wage Base for the current calendar year and any subsequent year shall be assumed to be the
same as the Social Security Wage Base in effect as of the beginning of the year for which the
determination is being made.
1.10 “Continuous Service” means service with the Employer commencing on the date on
which the Employee first performs service for the Employer and ending on the date on which the
Employee has a Separation From Service; provided, however, Continuous Service shall include (i)
authorized leaves of absence, (including those periods during which the Employee receives workers
compensation benefits), (ii) the imputed employment period solely for the purpose of determining the
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reduction in the Member’s benefit under Sections 4.2(A) and (C), provided the Member has 60 months of
actual employment at the District; (iii) military service (provided the Employee retains his/her re-
employment rights pursuant to the provisions of the Uniform Services Employment and Reemployment
Rights Act of 1994) or (iv) any other absence which does not constitute a termination of employment
under the District’s Civil Service Rules and Regulations.
1.11 “Credited Service” means service with the Employer commencing on the date on which
the Employee first performs service for the Employer and ending on the date on which the Employee has
a Separation From Service. Credited Service shall include those periods during which (i) the Employee
receives worker’s compensation benefits or (ii) the Employee is on leave on account of military service,
provided the Employee retains his/her reemployment rights pursuant to the provisions of the Uniform
Services Employment and Reemployment Rights Act of 1994. Credited Service, however, shall not
include any other periods during which the Employee is on an authorized leave of absence.
1.12 “Determination Date” means the date as of which a Member’s Accrued Retirement
Benefit is computed.
1.13 “Disability Retirement Date” means the date on which a Member incurs a disability as
defined in Section 4.5.
1.14 “District” means The Metropolitan St. Louis Sewer District.
1.15 “Early Retirement Date” means the first day of any month selected by the Member
following his termination of employment on which benefits commence, provided the Member has
attained his fifty-fifth (55th) birthday and has completed sixty (60) months of Continuous Service.
1.16 “Earnings” means the total base remuneration scheduled to be paid to the Member from
the Employer for services rendered, excluding unpaid leaves of absence (other than on account of military
service), bonuses, overtime and any other form of additional compensation, determined without regard to
salary reduction amounts contributed by the Member to plans or arrangements described in Code Section
125, 132 or 457. The term “Earnings” does not include accrued and unused sick leave. Earnings in
excess of the amount specified in Code Section 401(a)(17) shall be disregarded. For purposes of this
Section, “an unpaid leave of absence” shall not include absences less than twenty-nine (29) consecutive
days.
1.17 “Employee” means an individual in the employment of the Employer on a regular, full-
time permanent basis who has been appointed to a position in the classified service in accordance with
Civil Service Rules. An Employee shall also include those individuals in the unclassified service, but
shall not include technical personnel employed on special occasions. An individual customarily
employed by the Employer for at least one thousand (1,000) hours per year shall be deemed to be
employed on a full-time permanent basis.
1.18 “Employer” means the District.
1.19 “Final Average Earnings” means, prior to August 1, 2004 or, with respect to union
members, the later of August 1, 2004 or the date their union ratifies a Memorandum of Understanding
with respect to this Plan modification, the sum of (a) and (b) divided by three (3)where:
(a) means the Member’s Earnings as determined during the highest seventy-eight (78)
consecutive Pay Periods within the last two hundred sixty Pay Periods of the Member’s compensation
history ending on the Determination Date which produce the highest average annual Earnings; and
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(b) means one and one-fourth percent (1.25%) of the cash amount paid to a Member with
respect to the value of the Member’s accrued and unused sick leave, multiplied by the Member’s years of
Credited Service as of the Determination Date. The value of a Member’s accrued and unused sick leave
shall be determined by using his hourly rate of Earnings as of the Determination Date. For purposes of
this computation, if a Member has less than seventy-eight (78) Pay Periods of Credited Service, part (a) of
that Member’s Final Average Earnings shall equal his total Earnings during such period divided by his
number of Pay Periods in his period of Credited Service as of the Determination Date and multiplied by
twenty-six (26).
Effective August 1, 2004 or, with respect to union members, the later of August 1, 2004 or the date their
union ratifies a Memorandum of Understanding with respect to this Plan modification, “Final Average
Earnings” means the Member’s Earnings as determined during the highest seventy-eight (78) consecutive
Pay Periods within the last two hundred sixty Pay Periods of the Member’s compensation history ending
on the Determination Date which produce the highest average annual Earnings, divided by three (3). For
purposes of this computation, if a Member has less than seventy-eight (78) Pay Periods of Credited
Service, such Member’s Final Average Earnings shall equal his total Earnings during such period divided
by his number of Pay Periods in his period of Credited Service as of the Determination Date and
multiplied by twenty-six (26).
1.20 “Investment Manager” means any fiduciary (other than a trustee or named fiduciary) (A)
who has the power to manage, acquire or dispose of any asset of the Plan; (B) who is (i) registered as an
investment adviser under the Investment Advisors Act of 1940; (ii) a bank or (iii) an insurance company
qualified to perform services described in (A) under the laws of more than one state; and (C) has
acknowledged in writing that he is a fiduciary with respect to the Plan.
1.21 “Member” means any Employee or former Employee of the District who has satisfied
the participation provisions of Article II hereof and is eligible for a benefit under this plan.
1.22 “Normal Retirement Date” means the first day of the month coinciding with or next
following a Member’s sixty-fifth (65th) birthday and completion of sixty (60) months of Continuous
Service.
1.23 “Option Date” means the day selected by the Member on which retirement benefits are
to commence.
1.24 “Pay Period” means the bi-weekly period for which a Member is paid for services
rendered to the District.
1.25 “Pension Committee” means the committee consisting of the following eight (8) persons:
two members appointed by the Chairman of the Board, one of whom is a member of the Board of
Trustees from the City of St. Louis and one of whom is a member of the Board of Trustees from St. Louis
County. In addition, the Executive Director, Secretary-Treasurer, General Counsel, the Director of
Finance and two elected members as provided in Section 8 shall be members of the Pension Committee.
1.26 “Pension Fund” means the trust established under this Plan to which contributions are
made by the Employer to pay retirement benefits to Members.
1.27 “Pension Plan” means The Metropolitan St. Louis Sewer District Employees’ Plan,
initially effective as of November 1, 1967, as set forth herein and as it may be amended from time to time.
1.28 “Plan Administrator” means the Pension Committee.
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1.29 “Plan Year” means the period beginning on January 1 and ending on the following
December 31.
1.30 “Points” means the sum of the Member’s chronological age and his years of Continuous
Service, both expressed in years and months.
1.31 “Postponed Retirement Date” means the first day of the month coincident with or next
following a Member’s termination of employment after his Normal Retirement Date.
1.32 “Required Beginning Date” means the date described in Section 7.8(A).
1.33 “Retirement Date” means the first day as of which a retirement benefit is payable to a
Member in accordance with this Pension Plan, and may be either a Normal Retirement Date, an Alternate
Retirement Date, an Early Retirement Date, or a Postponed Retirement Date, as set forth in Article IV.
1.34 “Separation From Service” means a severance of the Employer-Employee relationship
with the Employer because of resignation, discharge or death.
1.35 “Social Security Wage Base” means, with respect to any Plan year, the maximum
amount of Earnings which may be considered wages for such year under Code Section 3121(a)(1).
1.36 “Trust Agreement” means any trust agreement made and entered into by and between the
District and a Trustee with respect to the Pension Fund.
1.37 “Trustee” means any corporation, person or persons who may be designated by the
Board from time to time to hold, invest, reinvest and disburse, in accordance with the terms of a trust
agreement, contributions made by the District to fund retirement benefits for Members of this Plan.
1.38 “Vested Member” means a Member with sixty (60) months of Continuous Service.
ARTICLE II
ELIGIBILITY AND PARTICIPATION
2.1 Eligibility. On and after January 1, 1990, an Employee shall become a Member of the Plan
on the first day on which he performs an hour of service for the Employer.
2.2 Termination of Participation. Each Member shall remain a Member until the earlier of his
death or termination of employment with the District. He shall receive Continuous Service credit only for
such periods during which he is employed by the District except as provided in section 4.2 (A) and (C).
A Member on military leave shall not for purposes of this Pension Plan be terminated from the employ of
the District so long as he retains reemployment rights under Federal or other laws but shall be so
terminated for purposes of this Pension Plan if he fails to return to the employ of the District within the
required period established by such laws and the Civil Service Rules and Regulations of the District.
ARTICLE III
CONTRIBUTIONS
3.1 District Contributions. From time to time, the District shall contribute to the Pension Plan
such sums as are considered necessary by the District, on the basis of actuarial calculations, to carry out
the purpose of the Pension Plan. A Member shall not be permitted or required to make contributions to
the Plan.
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3.2 Funding of Liabilities. The Employer may fund its liabilities under this Plan by making
contributions to the Trustee of the Trust established in connection with the Pension Plan or by paying the
premiums on any insurance or annuity contract in an amount sufficient to satisfy reasonable funding
standards.
3.3 Return of Employer Contributions. Amounts contributed by the Employer shall be returned
to the Employer if a contribution was made by the Employer by mistake of fact. The excess of the amount
of such contribution over the amount which would have been contributed had there been no mistake of
fact shall be returned to the Employer within one year after the payment of the contribution. Earnings
attributable to such contribution shall not be returned to the Employer, but losses attributable to such
contribution shall reduce the amount to be returned to the Employer.
3.4 Forfeitures. Forfeitures which arise on account of the Separation From Service of a non-
vested Member shall be used to reduce future District contributions under the Plan.
ARTICLE IV
RETIREMENT BENEFITS
4.1 At Normal Retirement Date.
(a) The annual retirement benefit payable to a Member who retires on his Normal Retirement
Date on or after January 1, 2000 and prior to August 1, 2004, or, with respect to union members, the later
of August 1, 2004 or the date their union ratifies a Memorandum of Understanding with respect to this
Plan modification, shall be equal to the sum of (1) and (2) where:
(1) means one and forty-five hundredths percent (1.45%) of Final Average Earnings
times the period in years and completed twelfths of his Credited Service, and
(2) means forty hundredths of one percent (.40%) of his Final Average Earnings which
are in excess of the Covered Earnings times the period in years and completed twelfths of his Credited
Service, not to exceed thirty-five (35) years.
(b) The annual retirement benefit payable to a Member who retires on his Normal Retirement
Date on or after August 1, 2004, or, with respect to union members, the later of August 1, 2004 or the date
their union ratifies a Memorandum of Understanding with respect to this Plan modification, shall be equal
to the sum of (1) and (2) where:
(1) means one and seventy hundredths percent (1.70%) of Final Average Earnings
times the period in years and completed twelfths of his Credited Service, and
(2) means forty hundredths of one percent (.40%) of his Final Average Earnings which
are in excess of the Covered Earnings times the period in years and completed twelfths of his Credited
Service, not to exceed thirty-five (35) years.
Notwithstanding the above, the following interim rule will apply to the group of Members whose annual
retirement benefit, as of July 1, 2007, is determined to be higher under the formula set forth in paragraph
(a) using the definition of “Final Average Earnings” in effect prior to August 1, 2004, than his benefit
under the formula set forth in paragraph (b). Under the interim rule, if such Member retires on his
Normal Retirement Date, on or after July 1, 2007 and on or before June 1, 2009 (the “window period”),
he may elect to have his benefit determined under (i) the formula set forth in paragraph (b), or (ii) the
formula set forth in paragraph (a) using the definition of “Final Average Earnings” in effect prior to
August 1, 2004. The interim rule will not apply if at any time during the window period, a Member’s
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benefit is determined to be higher under the formula set forth in paragraph (b) than it is under the formula
set forth in paragraph (a) using the definition of “Final Average Earnings” in effect prior to August 1,
2004.
4.2 Early Retirement Benefit. These provisions apply to a Member who has a Separation From
Service on or after January 1, 2000.
(a) In the case of a Member who as of the date on which he has a Separation From Service has
neither attained his Early Retirement Date, his Alternate Retirement Date, nor has seventy-five (75)
Points as defined in Section 1.30, the annual retirement benefit payable to such Member, which cannot
commence prior to his Early Retirement Date, shall be equal to his Accrued Retirement Benefit reduced
by two-twelfths (2/12) of one percent (1%) for each month by which such Member’s commencement of
benefit payments precedes the earlier of his Normal Retirement Date and his Alternate Retirement Date, if
such month is prior to age sixty (60) and reduced by one-twelfth (1/12) of one percent (1%) for each
month between the commencement of benefit payments and the earlier of his Normal Retirement Date
and his Alternate Retirement Date, if such month is after the attainment of age sixty (60). If a Member
has not attained his Alternate Retirement Date as of his Separation from Service, the reduction in the
Member’s benefit shall be determined as if the Member continued in the employment of the District until
the requirements for the Alternate Retirement Date were satisfied. If such Alternate Retirement Date is
prior to attainment of age fifty-five (55), there shall be no reduction in the Accrued Retirement Benefit
commencing on or after the Early Retirement Date. This benefit shall be paid according to the provisions
of Section 5.2 hereafter.
(b) In the case of a Member who, as of the date on which he has a Separation From Service has
seventy-five (75) Points, the annual retirement benefit payable to such Member shall be equal to his
Accrued Retirement Benefit as of his Retirement Date.
(c) In the case of a Member who as of the date on which he has a Separation From Service does
not have seventy-five (75) Points or has not attained his Alternate Retirement Date but has attained his
Early Retirement Date, the annual retirement benefit payable to such Member shall be equal to his
Accrued Retirement Benefit reduced by two-twelfths (2/12) of one percent (1%) for each month by which
such Member’s Early Retirement Date precedes the earlier of his Normal Retirement Date and his
Alternate Retirement Date, if such month is prior to age sixty (60) and reduced by one-twelfth (1/12) of
one percent (1%) for each month between such Member’s Early Retirement Date and the earlier of his
Normal Retirement Date and his Alternate Retirement Date, if such month is after the attainment of age
sixty (60). If a Member has not attained his Alternate Retirement Date as of his Separation from Service,
the reduction in the Member’s benefit shall be determined as if the Member continued in the employment
of the District until the requirements for the Alternate Retirement Date were satisfied.
4.3 At Postponed Retirement Date. The annual retirement benefit payable to a Member who
retires on a Postponed Retirement Date shall be equal to the greater of (i) the amount determined under
Section 4.1 as of his Postponed Retirement Date and (ii) an amount equal to the sum of the amount
payable on his Normal Retirement Date plus the actuarial equivalent of the lump sum value of the
monthly benefit payments which he would have received prior to the Postponed Retirement Date (using
the benefit formula in effect on the Postponed Retirement Date), accumulated at an annual rate of interest
equal to four percent (4%) from the date such payments would have been made (had he retired at his
Normal Retirement Date) up to his Postponed Retirement Date.
4.4 At Disability Retirement Date. The annual disability benefit to a Member who has at least
thirty-six (36) months of Continuous Service and, becomes disabled as defined in Section 4.5, shall be
equal to the greater of (i) his Accrued Retirement Benefit as of the first day of the month coinciding with
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or next following his Disability Retirement Date, or (ii) twenty-five percent (25%) of his Earnings;
provided, however, a Member’s disability benefit shall not exceed the benefit which would have been
payable had the Member continued in the employment of the District until the Member attained his
Normal Retirement Date and his Final Average Earnings had remained the same. Payment of the
disability benefit shall commence on the first day of the month coinciding with or next following the date
on which the Member satisfies all of the requirements contained in Section 4.5(A) through (E). Payments
shall continue until the Member attains his Normal Retirement Date, the date of death, or until the
Committee determines that the Member is no longer disabled, whichever is earliest. In the event a
Member’s disability continues to the Member’s Normal Retirement Date, the Member shall continue to
receive the same benefit as determined hereinabove as a normal retirement benefit; provided, however,
such normal retirement benefit shall then become subject to the optional forms of payment as provided in
Section 7.2.
4.5 Conditions on Payment of Disability Benefits. A Member shall be deemed to be disabled and
eligible to receive a disability benefit if the following conditions are satisfied:
(a) He has been disabled, through unavoidable cause, by illness or injury and for that reason is
incapable of carrying on the duties of any occupation;
(b) Such disability shall have continued for a period of at least six (6) consecutive months;
(c) The Member has qualified for disability benefits under the Federal Social Security Act and
has furnished written evidence from the Social Security Administration, satisfactory to the District, which
certifies that the Member’s disability is permanent and total, based on the Federal Social Security Act
criteria for same. The District, however, reserves the right to determine that the Member is not otherwise
disqualified pursuant to other provisions of this Article.
(d) The Member has used up and exhausted all of his accrued sick leave with the District.
The disability shall be deemed to have resulted from an unavoidable cause unless:
(1) It was contracted, suffered or incurred while the Member was engaged in, or it
resulted from his having engaged in, a felony; or
(2) It resulted from his habitual use of drugs, intoxicants, or narcotics; or
(3) It resulted from a deliberately self-inflicted injury or self-induced sickness; or
(4) It resulted from injury received or disease contracted in service in the Armed
Forces.
The Pension Committee shall interpret and administer this Section in a uniform manner
so as to preclude any individual selection or discrimination. The Pension Committee may require
that a disabled Member undergo a medical examination by a physician or clinic selected by the
Pension Committee at anytime prior to his Normal Retirement Date, but not more often than
semi-annually, to determine whether such Member is eligible for continuation of his disability
benefits. If on the basis of any medical examination or other fact from any and all sources, it is
found that such Member is no longer disabled as defined herein, his disability benefit shall
thereupon cease. If the disabled Member refuses to submit to a medical examination, the Pension
Committee shall suspend disability benefits until such Member submits to a medical examination.
In the event of the reemployment of a disabled Member, he shall resume active membership in
the Plan as of the date of reemployment; provided, however, he shall not accrue any retirement
8
benefits during such period while he is receiving disability benefits. If the Member’s disability
benefits are terminated prior to his Normal Retirement Date and he is not reemployed by the
District, the Member’s right to benefits, if any, shall be determined in accordance with the
provisions of the Plan as if he had terminated employment on the date benefits cease, but with no
accrual of benefits following the Disability Retirement Date.
(e) Effective August 1, 2004, or, with respect to union members, the later of August 1, 2004 or
the date their union ratifies a Memorandum of Understanding with respect to this Plan modification, in
the event a Member qualifies for benefits under both Section 4.2 and Section 4.5, his benefit will be
determined under the provisions of Section 4.5.
4.6 Maximum Retirement Income. Without regard to any contrary provision of the Plan, the
maximum retirement income computed under this Article IV shall not exceed the benefit limitation
provided in Code Section 415 and the Income Tax Regulations issued thereunder as amended from time
to time.
4.7 Accrued Retirement Benefit Under Prior Restatement of Plan. Without regard to any
contrary provision of this Plan, the Accrued Retirement Benefit of each Member who was a participant on
the day prior to January 1, 2001, the effective date of the restatement of the Plan contained in Ordinance
No. 10872, shall not be less than the Accrued Retirement Benefit on December 31, 2000, the day before
Ordinance No. 10872 became effective.
ARTICLE V
BENEFITS ON TERMINATION OF EMPLOYMENT
5.1 If a Member terminates employment with the Employer prior to (i) completing sixty (60)
months of Continuous Service or (ii) attaining his Disability Retirement Date, he shall not be entitled to a
benefit under the Plan. If such Member is later reemployed, he shall recommence participation in the
Plan on the first day on which he performs an hour of service for the Employer. In addition, the Credited
Service and Continuous Service of such reemployed Employee shall include all years of Credited Service
and Continuous Services, respectively, which were earned prior to his termination of employment, and
credit for each, respectively, shall be aggregated for purposes of determining a Member’s Accrued
Retirement Benefit.
5.2 If a Member terminates employment with the District for reasons other than death, disability
or retirement after completing sixty (60) months of Continuous Service he shall be entitled to a retirement
benefit commencing on his Early Retirement Date or his Normal Retirement Date, such benefit to be
determined according to the provisions of Sections 4.1 and 4.2, and payable according to the optional
forms of distribution and in the manner described in Article VII.
5.3 Except for adjustments in monthly benefits by way of post-retirement increases in such
monthly benefits which may be implemented by the District from time-to-time, the benefits payable to a
Member shall be determined according to the provisions of the Plan which is in effect on the date a
Member terminates his employment with the District.
ARTICLE VI
DEATH BENEFIT
6.1 Death of a Vested Terminated Member. In the event of the death of a Vested Member who
had a Separation From Service prior to (i) receiving a retirement benefit under this Plan or (ii) becoming
disabled, a monthly benefit equal to the greater of fifty percent (50%) of one-twelfth (1/12) of the
Member’s Accrued Retirement Benefit determined as of the date on which he had a Separation From
9
Service or fifty dollars ($50.00) shall be paid to his Beneficiary commencing on the first day of the month
next following the date of such former Member’s death. If the Beneficiary is the Member’s surviving
spouse, the survivor’s benefit shall be payable monthly to a Member’s spouse for life, with the final
monthly payment to be made on the first day of the month immediately preceding or coinciding with the
date of such spouse’s death. If the Beneficiary is not the Member’s surviving spouse, the survivor’s
benefit shall be paid monthly to the Member’s Beneficiary for sixty (60) monthly payments.
6.2 Death of a Vested Active Member After January 1, 2000
(a) The Beneficiary of any qualified Member shall be eligible for a survivor’s benefit
commencing on the first day of the month next following the date of the Member’s death after January 1,
2000. The Member’s Beneficiary shall be eligible for this benefit if the Member satisfied all of the
following requirements on the date of his death:
(1) Member has completed at least sixty (60) months of Continuous Service;
(2) Member has not attained his Normal Retirement Date; and
(3) Member was an active Employee or a Member receiving or eligible to receive a
disability benefit under Section 4.4; and
(4) Member has not attained 75 Points.
(b) The monthly amount of the survivor’s benefit payable to the Member’s surviving spouse
shall be equal to the greatest of:
(1) Fifty percent (50%) of one twelfth (1/12) of the Member’s Accrued Retirement
Benefit determined as of the date of his death, or
(2) Fifteen percent (15%) of his monthly Earnings as of the determination date, or
(3) If the date of death is after January 1, 2000, the monthly survivor benefit payable
shall be equal to the Accrued Retirement Benefit reduced for election of the one hundred
percent (100%) option described in Section 7.2(C).
If the Beneficiary is the Member’s surviving spouse, the survivor’s benefit shall be payable for
such spouse’s lifetime, with the final monthly payment made on the first day of the month
immediately preceding or coinciding with the date of such spouse’s death. If the Beneficiary is
not the Member’s surviving spouse, the survivor’s benefit shall be paid monthly to the Member’s
Beneficiary for sixty (60) monthly payments, and there shall be no actuarial reduction in the
survivor death benefit for the Joint and Survivor Annuity described in Section 7.2(C).
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6.3 Death of a Member after Retirement.
(a) In the event of the death of a Member, who has not elected to receive an optional form of
payment in accordance with Article VII, and who dies on or after his Retirement Date but before having
received sixty (60) monthly pension payments, the balance of such (60) monthly pension payments shall
be paid to his Beneficiary in monthly installments. If an optional form of payment was elected under
Section 7.2, no death benefit will be payable under this Section 6.3 (A), but benefits will be payable in
accordance with the optional form of payment which is in effect.
(b) Prior to August 1, 2004, or, with respect to union members, the later of August 1, 2004 or
the date their union ratifies a Memorandum of Understanding with respect to this Plan modification, in
the case of a Member who is receiving a benefit under this Plan which commenced on or after August 1,
1974, a lump sum payment in the amount of five thousand dollars ($5,000) shall be paid to his
Beneficiary; provided, however, no death benefit shall be paid under this Section 6.3(b) if any Beneficiary
of the deceased Member is receiving a life insurance benefit from the District under another arrangement
or program apart from this Plan.
Effective August 1, 2004, or, with respect to union members, the later of August 1, 2004 or the date their
union ratifies a Memorandum of Understanding with respect to this Plan modification, the Beneficiary of
a Member who has a Separation From Service and who either attained 75 Points or attained his Normal
Retirement Date, Early Retirement Date, Postponed Retirement Date, or Disability Retirement Date as of
the date of his Separation From Service, shall receive a lump sum payment in the amount of five thousand
dollars ($5,000); provided, however, no death benefit shall be paid under this Section 6.3(b) if any
Beneficiary of the deceased Member is receiving a life insurance benefit from the District under another
arrangement or program apart from this Plan.
ARTICLE VII
PAYMENT OF RETIREMENT BENEFITS
7.1 Normal Form of Payment. A Member’s Accrued Retirement Benefit, whether payable
commencing at his Normal, Alternate, Early or Postponed Retirement Date, shall be payable in equal
monthly installments for the period beginning on the Member’s Option Date and ending with the
Member’s date of death or the sixtieth (60th) monthly payment, whichever is later. Any remaining
payments on the Member’s date of death shall be paid to the Member’s Beneficiary. If no Beneficiary
survives to receive all of such monthly payments, the commuted value of the unpaid installments shall be
paid to the estate of the last to die of the Member and his Beneficiary.
7.2 Optional Forms of Payment. In lieu of the normal form of payment as provided in Section
7.1, a Member may elect one of the following optional forms of payment, subject to the limitations as
provided hereafter:
(a) Life Annuity Option - A Member may elect an increased monthly benefit of equal actuarial
value payable in monthly installments for the period beginning on his Option Date and ending on the date
of his death.
(b) Ten Year Certain Option - A Member may elect a reduced retirement benefit of equal
actuarial value payable in monthly installments for the period beginning on his Option Date and ending
with the Member’s date of death or the one hundred and twentieth (120th) monthly payment, whichever is
later. If the Member’s death occurs within such ten year period, monthly payments will continue to be
paid to the Member’s Beneficiary. If no Beneficiary survives to receive all of such monthly payments,
the commuted value of the unpaid installments shall be paid to the estate of the last to die of the Member
and his Beneficiary.
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(c) Joint and Survivor Annuity - A Member may elect a reduced retirement benefit of equal
actuarial value payable in monthly installments commencing on his Option Date for the life of the
Member with a survivor annuity for the life of the Member’s Beneficiary which is not less than fifty
percent (50%) of (and is not greater than one hundred percent (100%) of) the amount of the annuity which
is payable during the joint lives of the Member and his Beneficiary.
(d) Social Security Option - A Member whose retirement benefit commences prior to attaining
age sixty-two (62), may elect to receive such retirement benefit on an actuarially adjusted basis so that the
monthly benefit payable from this plan and his monthly primary social security benefit are approximately
level during his lifetime. The retirement benefit payments under this optional form of payment shall be
payable for the Member’s lifetime commencing on the Member’s Option Date and terminating on the first
day of the month in which the Member’s death occurs.
(e) Contingent Annuity Pop-Up Option - A Member whose Retirement Date is after December
31, 1999 may elect a reduced retirement benefit of equal actuarial value payable as described in Section
7.2(C), with the provision that, if the Member’s Beneficiary predeceases the Member, the monthly
retirement benefit shall increase to the amount payable had this option not been elected.
(f) Partial Lump Sum Option - Effective August 1, 2004, or, with respect to union members, the
later of August 1, 2004 or the date their union ratifies a Memorandum of Understanding with respect to
this Plan modification, a Member may elect to receive a payment in an amount equal to 10% of the lump
sum actuarial equivalent of his Accrued Retirement Benefit, with the balance to be paid in one of the
other optional forms of payment listed in this Section 7.2, as elected by the Member.
7.3 Small Benefits. Without regard to any other provision of this Plan, if the monthly benefit
payable to a Member or to his Beneficiary is less than fifty dollars ($50.00), the actuarial equivalent of a
Member’s Accrued Retirement Benefit shall be paid to such Member in a single sum or in such other
manner as the Pension Committee determines in its sole discretion. Notwithstanding the preceding
sentence, in no event will any payment be made pursuant to this Section 7.3 without the Member’s
consent if the actuarial equivalent of a Member’s Accrued Retirement Benefit exceeds one thousand
dollars ($1000.00).
7.4 Election of Optional Form of Payment.
(a) A Member’s election to receive his retirement benefit in a form other than the normal form
of payment described in Section 7.1 above shall be made in writing on forms designated by the Pension
Committee and shall be delivered to the Plan Administrator not less than thirty (30) or more than ninety
(90) days prior to the Member’s Option Date.
(b) A Member may revoke an election to receive an optional form of payment and select a
different option or the normal form of payment at any time more than thirty (30) days prior to the
Member’s Option Date. The selection of a new optional form of payment must be made in writing and
delivered to the Plan Administrator at least thirty (30) days prior to the Member’s Option Date.
(c) If the Beneficiary of a Member who has selected the joint and survivor annuity option dies
before the Member’s Option Date, the Member’s election to receive such optional form of payment shall
be deemed automatically revoked and the Member shall be eligible to select another optional form of
payment or to receive his benefit in the normal form.
(d) If the Member dies after January 1, 2000 and (i) after attaining his Normal Retirement Date
but before his Option Date or (ii) after having earned seventy-five (75) Points, any election made by the
Member under Section 7.2 shall apply. If such Member has not made an election under Section 7.2 prior
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to his death, such Member shall be deemed to have elected a one hundred percent (100%) Joint and
Survivor Annuity with his spouse as the Beneficiary as described in Section 7.2(C), and if he does not
have a surviving spouse his benefit shall be paid in the normal form as described in Section 7.1.
Notwithstanding the foregoing, if the benefit payable hereunder is less than the benefit which would have
been payable under Section 6.2(B), then in that event, the benefit payable under Section 6.2(B) shall
apply.
7.5 Special Distribution Option. This Section applies to distributions made on or after January 1,
1993. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a
Distributor’s (as hereinafter defined) election under this Section, a Distributee may elect, at the time and
in the manner prescribed by the Employer, to have any portion of an Eligible Rollover Distribution (as
hereinafter defined) paid directly to an Eligible Retirement Plan (as hereinafter defined) specified by the
Distributee in a Direct Rollover.
(a) An Eligible Rollover Distribution is any distribution of all or any portion of the balance to
the credit of the Distributee, except that an Eligible Rollover Distribution does not include: (a) any
distribution that is one of a series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the Distributee or the joint lives (or joint life
expectancies) of the Distributee and the Distributee’s designated beneficiary, or for a specified period of
ten (10) years or more; (b) any distribution to the extent such distribution is required under Section
401(a)(9) of the Code; and (c) any distribution which is made upon hardship of the employee.
(b) An Eligible Retirement Plan is (a) an individual retirement account described in Section
408(a) of the Code, (b) an individual retirement annuity described in Section 408(b) of the Code, (c) an
annuity plan described in Section 403(a) of the Code, or (d) a qualified trust described in Section 401(a)
of the Code that accepts the Distributee’s Eligible Rollover Distribution. Effective January 1, 2002, an
Eligible Retirement Plan shall also include (a) an eligible deferred compensation plan described in Code
Section 457(b) which is maintained by a governmental entity, and (b) an annuity contract described in
Code Section 403(b). In the case of an Eligible Rollover Distribution to a surviving spouse, an Eligible
Retirement Plan is only an individual retirement account or individual retirement annuity; provided,
however, that effective January 1, 2002, an Eligible Rollover Distribution to a surviving spouse can be
made to any Eligible Retirement Plan as defined herein.
(c) A Distributee includes an Employee or former Employee. In addition, the Employee’s or
former Employee’s surviving spouse and the Employee’s or former Employee’s spouse or former spouse
who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the
Code, are Distributees with regard to the interest of the spouse or former spouse.
(d) A Direct Rollover payment is a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.
7.6 Limitations on Special Distribution Option.
(a) Notwithstanding the provisions of the immediately preceding Section entitled Special
Distribution Option, the amount which may be paid directly to the trustee of another eligible retirement
plan under such Section shall be no less than the smaller of five hundred dollars ($500) or the total
amount of the Eligible Rollover Distribution which would otherwise be includible in the Participant’s
taxable income; and no amount shall be so paid unless the amount of such distributions in any calendar
year which are otherwise eligible for such payment are reasonably expected to total two hundred dollars
($200) or more.
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(b) The Employer shall provide notice of the special distribution option described in the
preceding Section to the Participant in accordance with rules prescribed by the Internal Revenue Service.
7.7 Written Explanation of Rollover Treatment. The Employer shall, when making an Eligible
Rollover Distribution, provide a written explanation to the recipient of such distribution of his right to roll
over such distribution to an Eligible Retirement Plan within sixty(60) days after the date on which the
recipient receives a distribution and, if applicable, his right to the special ten (10) year averaging and
capital gains tax treatment in the Code. Such written explanation will be provided to the recipient in
accordance with rules prescribed by the Internal Revenue Service.
7.8 Required Distribution. For Plan Years beginning after December 31, 1986 without regard to
any other provision hereof, the requirements of this Section shall apply to the distribution of a Member’s
benefit.
(a) No Member’s election to receive benefits under this Plan shall be effective unless pursuant
to such election:
(1) benefits shall commence no later than the first day of April following the calendar
year in which the Member:
(i) attains age seventy and one-half (70-1/2), or
(ii) terminated employment with the District, whichever is later; and
(2) the Member’s entire benefit shall be distributed by the later of:
(i) the end of his life expectancy or
(ii) the end of the joint and last survivor life expectancy of the Member and
his designated Beneficiary.
Life expectancies shall be determined initially as of the date the Member terminates his
employment with the District and shall be redetermined no more often than annually thereafter. If the
Member’s spouse is not his designated Beneficiary, the method of distribution selected must assure that at
least fifty percent (50%) of the present value of the Member’s retirement benefit is paid within the life
expectancy of the Member.
(b) If a Member dies after distribution of his benefit has commenced, the remaining portion of
his benefit shall continue to be distributed at least as rapidly as under the method of distribution
applicable prior to the Member’s death.
(c) If a Member dies before distribution of his benefit commences, the Member’s entire benefit,
if any, shall be distributed within sixty (60) months after the Member’s death; provided, however, if any
portion of the Member’s benefit is payable to a designated Beneficiary, distributions may be made over
the life expectancy of such Beneficiary and shall commence no later than one (1) year after the Member’s
death. If the Beneficiary is the Member’s surviving spouse, however, distribution shall begin no later
than the date on which the Member would have attained age seventy and one-half (70-1/2).
7.9 Increase in Benefits Under the Plan. Benefits payable under this Plan shall be subject to the
following adjustments:
14
(a) Any Member (or his Beneficiary) whose benefit commenced prior to January 1, 1988 shall
receive a one-time increase in his monthly benefit equal to ten percent (10%), effective January 1, 1990.
The minimum monthly benefit increase under this subsection (A) shall be ten dollars ($10.00).
(b) For each of the Plan Years during the period January 1, 1988 through December 31, 1995,
any Member (or his Beneficiary) whose benefit commenced or will commence on or after January 1,
1988 shall receive an increase in his monthly benefit equal to that percentage increase in the National
Consumer Price Index for all urban consumers (CPI-U) during the preceding twelve (12) month
measuring period, subject to the following:
(1) Such increase in monthly benefit shall not exceed three percent (3%) of the monthly
amount payable hereunder when benefits first commence and such increases in the
aggregate shall not exceed fifteen percent (15%) of the original monthly amount;
(2) Each such increase shall not exceed fifty dollars ($50) per month and such monthly
increases in the aggregate shall not exceed two hundred fifty dollars ($250) per month;
and
(3) Such increase shall begin to apply to benefits payable on the third January 1
following the month in which a Member’s benefits initially commenced under this Plan.
The twelve (12) month measuring period for the National Consumer Price Index shall
end on the October 31 preceding the January increase.
(c) For each of the Plan Years during the period January 1, 1996 through December 31, 2000,
any Member (or, his Beneficiary) receiving a benefit under the Plan shall receive an increase in his
monthly benefit equal to that percentage increase in the National Consumer Price Index for all urban
consumers (CPI-U) during the preceding twelve (12) month measuring period, subject to the following
limitations:
(1) Such increase in monthly benefit shall not exceed three percent (3%) of the monthly
amount payable hereunder immediately prior to such increase and the overall aggregate
of such increases shall not exceed thirty percent (30%) of the Member’s original monthly
benefit which was paid when his benefit first commenced under the Plan;
(2) Each such increase shall not exceed fifty dollars ($50) per month or six hundred
dollars ($600) per Plan Year;
(3) The overall aggregate amount of such annual increases shall not exceed six
thousand dollars ($6,000); and
(4) All increases in benefits paid under this Section 7.9 shall be considered
cumulatively.
(5) Such increase shall begin to apply to benefits payable on the third January 1
following the month in which a Member’s benefits initially commenced under this Plan.
The twelve (12) month measuring period for the National Consumer Price Index shall
end on the October 31 preceding the January increase.
(d) For the Plan Years beginning on or after January 1, 2001, any Member (or, his Beneficiary)
receiving a benefit under the Plan shall receive an increase in his monthly benefit equal to that percentage
increase in the National Consumer Price Index for all urban consumers (CPI-U) during the preceding
twelve (12) month measuring period, subject to the following limitations:
15
(1) Such increase in monthly benefit shall not exceed three percent (3%) of the monthly
amount payable hereunder immediately prior to such increase and the overall aggregate
of such increases shall not exceed forty-five percent (45%) of the Member’s original
monthly benefit which was paid when his benefit first commenced under the Plan;
(2) Each such increase shall not exceed fifty dollars ($50) per month or six hundred
dollars ($600) per Plan Year;
(3) The overall aggregate amount of such annual increases shallot exceed nine thousand
dollars ($9,000); and
(4) All increases in benefits paid under this Section 7.9 shall be considered
cumulatively in applying the overall aggregate limits.
(5) Such increase shall begin to apply to benefits payable on the third January 1
following the month in which a Member’s benefits initially commenced under this Plan.
The twelve (12) month measuring period for the National Consumer Price Index shall
end on the October 31 preceding the January increase.
7.10 Vested Member. Without regard to any contrary provision of this Plan, only a Vested
Member shall be eligible to receive a retirement benefit under this Plan. The foregoing provisions,
however, shall not apply to a Member’s eligibility to receive a disability benefit under this Plan which
shall be governed by Sections 4.4 and 4.5.
ARTICLE VIII
ADMINISTRATION OF THE PENSION PLAN
8.1 Duties and Membership of Pension Committee.
(a) The Pension Plan shall be administered by the Pension Committee. The Pension Committee
shall have the responsibility to interpret this Ordinance and its provisions with respect to any benefit or
claim for benefit hereunder, including but not limited to the determination of Credited Service,
Continuous Service, Earnings, eligibility and termination of membership with respect to any Member of
the Pension Plan, or his Beneficiary. The decision of the Pension Committee shall be nondiscriminatory,
and any decision by a majority of the members of the Pension Committee shall govern.
(b) In addition to those listed in Section 1.25, the Members of the Pension Plan shall elect two
Members from among their ranks to serve on the Pension Committee. Members of the Pension Plan
eligible to serve on the Pension Committee are those Employees who are Civil Service Employees and are
Members of the Plan during their tenure on the Pension Committee. If, for any reason, the Members of
the Plan fail to elect by majority vote two of its Members to serve on the Pension Committee, the
Executive Director or his successor shall appoint one or more Employees as he shall determine in his sole
discretion to serve on the Pension Committee. Each elected Member’s term shall be for two years
commencing on November 1 of the year. The Personnel Director of the District shall serve as the
Secretary of the Pension Committee and as an ex-officio member without authority to vote. The Pension
Committee shall elect its own Chairman and Vice-Chairman and shall delegate duties to the members of
the Pension Committee as the Pension Committee in its sole discretion determines. Upon the death,
resignation, removal or inability of a Member of the Pension Committee to continue to act, the Executive
Director of the District or his successor shall appoint a successor to serve on the Pension Committee.
16
8.2 Plan Administration.
(a) Claims. The decision of the Pension Committee upon matters within its jurisdiction shall be
conclusive and binding upon all parties concerned. Decisions by the Pension Committee shall be
consistently applied in a nondiscriminatory fashion. Any Employee or Beneficiary or other person who
believes that he is being denied a benefit to which he is entitled (hereafter referred to as “Claimant”) may
file a written request for such benefit with the Claims Processor setting forth his claim. The request must
be addressed to: Claims Processor, local address.
(b) Decisions and Delegation. A decision of the Pension Committee maybe made by a written
document signed by a majority of the members of the Pension Committee. The Secretary of the Pension
Committee shall keep and maintain any and all other records desired by the Pension Committee. The
Pension Committee may appoint such agents, who need not be members of the Pension Committee as it
may deem necessary for the effective exercise of its duties, and may to the extent not inconsistent
herewith delegate to such agents any powers or duties both ministerial and discretionary as the Pension
Committee may deem expedient or appropriate. No member of the Pension Committee shall make any
decision or take any action covering exclusively his own benefits under the Plan. All such matters shall
be decided by a majority of the remaining members of the Pension Committee, or in the event of inability
to obtain a majority, by the Board of Trustees of the District.
(c) Meetings. The Pension Committee shall hold meetings upon such notice at such place or
places and at such times as the Pension Committee may determine. Meetings may be called by the
Chairman or any two members of the Pension Committee. A majority of the Pension Committee shall
constitute a quorum for the transaction of business.
(d) Duties of the Pension Committee. The Pension Committee shall have such duties and powers
as may be necessary to discharge its duties hereunder, including by way of example, but not by way of
limitation:
(1) to construe and interpret the provisions of the Plan;
(2) to decide all questions of eligibility and participation under the Plan;
(3) to prescribe such rules and procedures as are consistent with the provisions of the
Plan and as are deemed necessary and proper by the Plan Administrator;
(4) To prepare and distribute, in such manner as the Plan Administrator determines to
be appropriate, information explaining the Plan;
(5) To receive from the Employer and from Members such information as shall be
necessary for the proper administration of the Plan;
(6) To maintain and furnish to the Employer, upon request, such reports with respect to
the administration of the Plan as are reasonable and appropriate;
(7) to cause to be filed with any state or federal authority or agency such reports or
records as may be required by law to be filed;
(8) maintain and be custodian of all records, including financial records relating to the
Plan or to Plan Members; and
17
(9) except for the power to amend the Pension Plan which is specifically reserved to the
Board of Trustees of the District, to do all such acts, take all such action and exercise all
such rights, although no specifically mentioned herein as the Plan Administrator may
deem necessary or convenient to administer this Plan and to carry out the purposes of the
Plan.
(e) Records of the Pension Committee. All acts and determinations of the Pension Committee
shall be duly recorded by the Secretary of the Pension Committee and all such records, together with such
other documents as may be necessary for the proper administration of the Plan, shall be preserved in the
custody of such Secretary. The records and documents which constitute the business records of the
Pension Committee shall at all times be open for inspection and copying by any person designated by the
Board of Trustees of the District.
8.3 Claim Decision. Upon receipt of a claim, the Claims Processor shall advise the Claimant that
a reply will be forthcoming within ninety (90) days and shall, in fact, deliver such reply within such
period. However, the Claims Processor may extend the reply period for an additional ninety (90) days for
reasonable cause. If the claim is denied in whole or in part, the Claims Processor will adopt a written
opinion using language intended to be understood by the Claimant setting forth:
(a) the specific reason or reasons for denial;
(b) the specific references to pertinent Plan provisions on which the denial is based;
(c) a description of any additional material or information necessary for the Claimant to perfect
the claim and an explanation why such material or such information is necessary;
(d) appropriate information regarding steps to be taken if the Claimant wishes to submit the
claim for review;
(e) the time limits for requesting a review under this Section.
8.4 Request For Review. Within sixty (60) days after the receipt by the Claimant of a written
opinion described above, the Claimant may request in writing that the Claims Appeal Reviewer review
the determination of the Claims Processor. Such request must be addressed to: Claims Processor, Local
address. The Claimant or his duly authorized representative may, but need not, review the pertinent
documents and submit issues and comments in writing for consideration by the Claims Appeal Reviewer.
If the Claimant does not request are view of the Claims Processor’s determination by the Claims Appeal
Reviewer within such sixty (60) day period, he shall be barred and estopped from challenging the Claims
Processor’s determination.
8.5 Review of Decision. Within sixty (60) days after the Claims Appeal Reviewer’s receipt of a
request for review, it will review the Claims Processor’s determination. After considering all materials
presented by the Claimant, the Claims Appeal Reviewer will render a written opinion, written in a manner
designed to be understood by the Claimant setting forth the specific reasons for the decision and
containing specific references to the pertinent Plan provisions on which the decision is based. If special
circumstances require that the sixty (60) day period be extended, the Claims Appeal Reviewer will so
notify the Claimant and will render the decision as soon as possible but not later than one hundred twenty
(120) days after receipt of the request for review. Any decision of a majority of the members of the
Claims Appeal Reviewer shall govern. The decision of the Claims Appeal Reviewer shall be final and
non-reviewable unless found to be arbitrary and capricious by a court of competent review. Such
decision will be binding upon the Employer and the Claimant.
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ARTICLE IX
MANAGEMENT, INVESTMENT AND USE OF FUNDS
9.1 Investment of Pension Fund. The Board shall select the manner of funding the Pension Plan,
whether by insurance or annuity contracts, trust agreement, or any other means, and shall have authority
to select or change any Carrier, Trustee or depository with which said contracts or trust agreement shall
be entered into and with which monies of the Pension Fund shall be held, managed and invested.
9.2 Investment Manager. The Board may, from time to time, appoint one or more Investment
Managers to direct any Trustee or Trustees with respect to all or a specified portion of the assets of the
Pension Fund held by the Trustee. Such appointment shall made by a resolution duly adopted by the
Board and shall be effective as of the date specified therein, but not before it has been accepted in writing
by the Investment Manager and notice of such appointment and acceptance given to the Trustee. The
Board may remove, or change the assets subject to the control of, any Investment Manager previously
appointed hereunder, but the Trustee may follow the instructions of a properly appointed Investment
Manager until informed by the Board that such Investment Manager has been removed or its authority
over particular assets changed. No person or firm maybe appointed as an Investment Manager unless he
meets the requirements of section 3(38) of the Employee Retirement Income Security Act of 1974, P.L.
93-406, as amended.
9.3 Authority of Board. The Board may, from time to time, direct the Trustee to invest a
specified portion of the Pension Fund in a particular asset or assets and, if so requested by the Trustee,
shall also specify the particular assets then held by the Trustee to be disposed of in order to make the
specified investment. Upon receipt of such instruction or instructions from the Board, the Trustee shall
take steps promptly to comply therewith, and shall hold all assets acquired pursuant to such instructions
until specifically instructed by the Board to dispose of the same, or, if the Board advises the Trustee that
the Board no longer instructs the Trustee to hold such assets, until such time as the Trustee in its own
discretion decides to dispose of the same.
ARTICLE X
AMENDMENT OR TERMINATION OF THE PENSION PLAN
10.1 The District reserves the right at any time and from time to time through action of its
Board of Trustees to amend in whole or in part any and all provisions of the Plan and to terminate the
Plan. The right is subject to the condition that no part of the assets of the Plan, shall, by reason of any
amendment or termination be used for or diverted to purposes other than the exclusive benefit of the
Members and their Beneficiaries under the Plan, unless and until all liabilities of the Plan have been
satisfied, in which case any remaining assets shall revert to the District.
10.2 The Pension Plan shall be considered terminated as of the first of the following dates:
(a) The date as of which the District loses its present legal identity by means of dissolution,
merger, consolidation, or otherwise, unless within ninety (90) days of such date a successor has agreed to
accept the responsibilities of the District hereunder;
(b) Any other date specified in a notice executed and delivered at least sixty (60) days in
advance of such date by the District to the Trustee or Trustees and/or Carrier or Carriers.
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ARTICLE XI
MISCELLANEOUS PROVISIONS
11.1 Members’ Rights. Neither the establishment of this Plan, nor the modification thereof,
nor the creation of any fund or account, nor the payment of any benefits, shall be construed as giving any
Participant or any other person any legal or equitable right against the Employer any officer or Employee
thereof, the Trustee or the Board except as herein provided. Under no circumstances shall the terms of
employment of any Participant be modified or in anyway affected hereby.
11.2 Spendthrift Provisions. Except as provided in Income Tax Regulation 1.401(a)-13(e) or
Code Section 401(a)(13)(c)(relating to certain judgments and settlements for misconduct in connection
with the Plan), no benefit or beneficial interest provided under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, either voluntary or
involuntary, and any attempt to so alienate, anticipate, sell, transfer, assign, pledge, encumber or charge
the same shall be null and void. No such benefit or beneficial interest shall be liable for or subject to the
debts, contracts, liabilities, engagements, or torts of any person to whom such benefits or funds are or
may be payable.
11.3 Incapacity. If, in the opinion of the Employer, a person to whom a benefit is payable is
unable to care for his affairs because of illness, accident or any other reason, any payment due the person,
unless prior claim therefore shall have been made by a duly qualified guardian or other duly appointed
and qualified representative of such person, may be paid to some Member of the person’s family, or to
some party who in the opinion of the Employer has incurred expense for such person. Any such payment
shall be payment for the account of such person and shall be a complete discharge of any liability of the
Plan to or for the benefit of such Member.
11.4 Administration of the Plan. The Pension Committee appointed by the Board of Trustees
shall be the Plan Administrator. The General Counsel of the Employer shall be the agent of the Plan for
service of process.
11.5 Suspension of Benefits Upon Reemployment. In the event a Member who is receiving
benefits under the Plan returns to the full-time employment of the Employer as defined in the Employer’s
employment practices prior to his Required Beginning Date, payment of his benefits shall cease. Upon
the cessation of the Employee’s benefits, the Employer shall notify the Employee by personal delivery or
first class mail during the first calendar month of the payroll period in which the Plan withholds payments
that his benefits are suspended. Such notification shall contain a description of the specific reasons why
benefit payments are being suspended, a general description of the Plan provisions relating to the
suspension of payments, a copy of such Plan provisions, and information regarding the Plan’s procedure
for affording are view of the suspension of benefits. Upon his subsequent termination of employment
with the Employer prior to his Required Beginning Date, his benefits shall recommence as of the first day
of the month coincident with or next following the date of such subsequent termination of employment.
The benefits payable to him upon such subsequent termination shall be the benefits to which he is entitled
under the Plan as in effect on the date of such subsequent termination and his Final Average Earnings, his
years of Credited Service, attained age, and Covered Earnings as of his subsequent termination, reduced
by the actuarial value of the benefits, other than disability benefits, he received prior to the earlier of his
Normal Retirement Date or his reemployment date; provided, however, that in no event shall the Member
receive a benefit upon his subsequent termination that is smaller than the benefit he was receiving as of
his date of reemployment. In no event shall a reemployed Member’s benefit be suspended hereunder if he
earns forty (40) hours of service or fewer during a calendar month.
11.6 Trust Sole Source of Benefits. The assets of the Trust shall be the sole source of benefits
under the Plan and the Employer does not assume any liability or responsibility for such benefits. Each
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Member, his surviving spouse, Beneficiary or other person who shall claim the right to any payment
under the Plan shall be entitled to look only to the Trust for such payment and shall not have any right,
claim or demand therefore against the Employer, the Trustee or any Employee of any of them.
11.7 Actuarial Assumptions. All actuarial assumptions under the Plan other than for funding
purposes and as otherwise specifically provided shall use an interest rate of seven percent (7%) per annum
and the 1971 Group Annuity Mortality Table for Males, set back one (1) year for males and six (6) years
for females, the resulting factor therefrom blended on a 50-50 basis for males and females.
11.8 Notice of Address. Each Member or his Beneficiary entitled to benefits under the
Pension Plan shall notify the Plan Administrator, in writing of his address and each change of address.
Any communication, statement, or notice from the Plan Administrator or the District addressed to such
person at his last known address filed with the Plan Administrator shall be binding upon such person for
all purposes of the Pension Plan, and neither the Trustee, the Carrier nor the District shall be obligated to
search for or to ascertain the whereabouts of such person.
11.9 Furnishing Data. Each person entitled to benefits under the Pension Plan shall furnish the
Plan Administrator such documents, evidence or other information as the Plan Administrator considers
necessary or desirable for the purposes of administering the Pension Plan or to protect the Pension Plan,
the Trustees, or the Carriers. No benefit shall be payable hereunder until the Plan Administrator has
received all information necessary to determine the Member’s entitlement to a benefit hereunder. If the
age or any other relevant fact upon which entitlements under the plan are based is misstated, an
adjustment shall be made in future benefits to correct same.
11.10 Retiree Medical Coverage. Effective August 1, 2004 or, with respect to union members,
the later of August 1, 2004 or the date their union ratifies a Memorandum of Understanding with respect
to this Plan modification, and subject to the limitations described herein, each Employee who is a
Member under the Pension Plan and who has a Separation From Service after attaining 75 points on or
after August 1, 2004, or, with respect to union members, the later of August 1, 2004 or the date their
union ratifies a Memorandum of Understanding with respect to this Plan modification, or a Member who
retires after attaining age 62 on or after August 1, 2004, or, with respect to union members, the later of
August 1, 2004, or the date their union ratifies a Memorandum of Understanding with respect to this Plan
modification, shall receive Employer provided individual medical coverage on the same terms as active
Employees which may be modified by the District from time to time. If the Employee is receiving any
kind of dependent coverage, the Employee shall pay the additional cost of such dependent coverage and
the District shall not. Such coverage shall continue until (i) the Employee becomes eligible for Medicare
under Title XVIII of the United States Code, (ii) the Employee dies, or (iii) the Employee becomes
eligible under another group medical plan, whichever first occurs. With respect to individuals retiring
prior to August 1, 2004, or, with respect to union members, the later of August 1, 2004 or the date their
union ratifies a Memorandum of Understanding with respect to this Plan modification, the Employer
retains the right to amend this policy to require Employee contributions, or to otherwise amend or
terminate this policy at any time in any respect subject to the following limitation: no such amendment or
termination shall reduce, eliminate or modify the benefits to which any Employee is entitled, provided
such employee (a) has retired under the terms of the Plan and (b) is receiving retiree medical benefits
under this policy prior to adoption of the amendment or termination. The preceding sentence shall not
apply to a reduction, elimination or modification of an Employee’s benefit attributable to a change in the
medical insurance coverage terms which the District may adopt for active Employees from time to time.
Effective for individuals retiring on or after August 1, 2004, or, with respect to union members, the later
of August 1, 2004 or the date their union ratifies a Memorandum of Understanding with respect to this
Plan modification, the Employer retains the right to amend this policy to require Employee contributions,
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or to otherwise amend or terminate this policy at any time in any manner with respect to some or all
retirees.
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EXHIBIT A
SPECIAL EFFECTIVE DATES FOR UNION MEMBERS
Whenever the phrase “or, the later of August 1, 2004, or, with respect to union members, the date
their union ratifies a Memorandum of Understanding with respect to this Plan modification” is used in the
Pension Plan, it shall mean the effective date set forth below with respect to each union listed:
Union Effective Date
AFSCME Local 410
SEIU Local 50
IBEW Local 1
The foregoing Ordinance was adopted February 8, 2007.