HomeMy Public PortalAbout10872 O R D I N A N C E NO. 10872
AN ORDINANCE, repealing Ordinance No. 10664, as adopted
December 9, 1999, 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. 10664, as adopted December 9, 1999,
and is hereby repealed, without, however altering or extinguishing the legal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 during the Plan year beginning January 1,
2001 or during subsequent Plan Years. The entitlements and benefits payable
to Members who terminate their employment at the District prior to January 1,
2001, 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:
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
EMPLOYEES' PENSION PLAN
TABLE OF CONTENTS
Page
ARTICLE I - DEFINITIONS .............................................................................. 1
1.1 Accrued Retirement Benefit .......................................................... 1
1.2 Alternate Retirement Date ............................................................ 1
1.3 Beneficiary ................................................................................... 1
1.4 Board ........................................................................................... 2
1.5 Carrier ......................................................................................... 2
1.6 Claims Appeal Reviewer ................................................................ 2
1.7 Claims Processor .......................................................................... 2
1.8 Code ............................................................................................ 2
1.9 Covered Earnings ......................................................................... 2
1.10 Continuous Service ...................................................................... 2
1.11 Credited Service ........................................................................... 3
1.12 Determination Date ...................................................................... 3
1.13 Disability Retirement Date ............................................................ 3
1.14 District ......................................................................................... 3
1.15 Early Retirement Date .................................................................. 3
1.16 Earnings ...................................................................................... 3
1.17 Employee ..................................................................................... 4
1.18 Employer...................................................................................... 4
1.19 Final Average Earnings ................................................................. 4
1.20 Investment Manager ..................................................................... 5
1.21 Member ........................................................................................ 5
1.22 Normal Retirement Date ............................................................... 5
1.23 Option Date.................................................................................. 5
1.24 Pay Period .................................................................................... 5
1.25 Pension Committee....................................................................... 5
1.26 Pension Fund ............................................................................... 6
1.27 Pension Plan ................................................................................ 6
1.28 Plan Administrator ....................................................................... 6
1.29 Plan Year ..................................................................................... 6
1.30 Points........................................................................................... 6
1.31 Postponed Retirement Date .......................................................... 6
1.32 Required Beginning Date .............................................................. 6
1.33 Retirement Date ........................................................................... 6
1.34 Separation From Service............................................................... 6
1.35 Social Security Wage Base ............................................................ 6
1.36 Trust Agreement ........................................................................... 7
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1.37 Trustee ......................................................................................... 7
1.38 Vested Member ............................................................................ 7
ARTICLE II - ELIGIBILITY AND PARTICIPATION .............................................. 7
2.1 Eligibility ...................................................................................... 7
2.2 Termination of Participation ......................................................... 7
ARTICLE III - CONTRIBUTIONS ...................................................................... 8
3.1 District Contributions .................................................................. 8
3.2 Funding of Liabilities .................................................................... 8
3.3 Return of Employer Contributions ................................................ 8
3.4 Forfeitures ................................................................................... 8
ARTICLE IV - RETIREMENT BENEFITS ........................................................... 9
4.1 At Normal Retirement Date ........................................................... 9
4.2 Early Retirement Benefit .............................................................. 9
4.3 At Postponed Retirement Date .................................................... 11
4.4 At Disability Retirement Date ..................................................... 11
4.5 Conditions on Payment of Disability Benefits .............................. 12
4.6 Maximum Retirement Income ..................................................... 13
4.7 Accrued Retirement Benefit Under Prior Plan ............................. 14
ARTICLE V - BENEFITS ON TERMINATION OF EMPLOYMENT ...................... 14
ARTICLE VI - DEATH BENEFIT ..................................................................... 16
6.1 Death of a Vested Terminated Member ....................................... 16
6.2 Death of a Vested Active Member After January 1, 2000 ............. 16
6.3 Death of a Member After Retirement ........................................... 17
ARTICLE VII - PAYMENT OF RETIREMENT BENEFITS .................................. 18
7.1 Normal Form of Payment ............................................................ 18
7.2 Optional Forms of Payment ........................................................ 18
7.3 Small Benefits ............................................................................ 20
7.4 Election of Optional Form of Payment ......................................... 20
7.5 Special Distribution Option ........................................................ 21
7.6 Limitations on Special Distribution Option ................................. 22
7.7 Written Explanation of Rollover Treatment ................................. 23
7.8 Required Distribution ................................................................. 23
7.9 Increase in Benefits Under the Plan ............................................ 25
7.10 Vested Member .......................................................................... 28
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ARTICLE VIII - ADMINISTRATION OF THE PENSION PLAN ........................... 28
8.1 Duties and Membership of Pension Committee ........................... 28
8.2 Plan Administration ................................................................... 29
8.3 Claim Decision ........................................................................... 31
8.4 Request For Review .................................................................... 32
8.5 Review of Decision ...................................................................... 32
ARTICLE IX - MANAGEMENT, INVESTMENT AND USE OF FUNDS ............... 33
9.1 Investment of Pension Fund ....................................................... 33
9.2 Investment Manager ................................................................... 33
9.3 Authority of Board ...................................................................... 34
ARTICLE X - AMENDMENT OR TERMINATION OF THE PENSION PLAN ........ 34
ARTICLE XI - MISCELLANEOUS PROVISIONS .............................................. 36
11.1 Members Rights ....................................................................... 36
11.2 Spendthrift Provisions ................................................................ 36
11.3 Incapacity .................................................................................. 36
11.4 Administration of the Plan .......................................................... 37
11.5 Suspension of Benefits Upon Reemployment .............................. 37
11.6 Trust Sole Source of Benefits ...................................................... 38
11.7 Actuarial Assumptions ............................................................... 38
11.8 Notice of Address ........................................................................ 38
11.9 Furnishing Data ......................................................................... 38
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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
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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
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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 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.
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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 or 457. Earnings in excess of the amount specified
in Code Section 401(a)(17) shall be disregarded and the aggregation rules of Code
Section 414(q)(6) shall apply. 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 the sum of (a) and (b) divided by
three (3) where:
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(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
(b) means one and one-fourth percent (1.25%) of the value
of a 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).
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
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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.
1.29 Plan Year means the period beginning on January 1 and ending
on the following December 31.
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1.30 Points mean 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.
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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. The annual retirement benefit
payable to a Member who retires on his Normal Retirement Date on or after
January 1, 2000, shall be equal to the sum of (A) and (B) where:
(A) 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
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(B) 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.
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
17
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
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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 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
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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
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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 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
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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.
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 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 the effective date of the
restatement of this Plan, shall not be less than the Accrued Retirement Benefit on
such day before the restatement.
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,
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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 Service or fifty dollars ($50.00) shall be paid
23
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
24
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).
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
25
payment which is in effect.
(B) 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.
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
26
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.
(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
27
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.
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.
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
28
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 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 Distributee'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.
29
(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) the portion of any distribution that is not
includible
in gross income (determined without regard to the exclusion for net
unrealized appreciation with respect to Employer securities).
(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. However, 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.
(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
30
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.
(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 five (5)
or 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.
31
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
32
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:
(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
33
following:
(i) 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;
(ii) Each such increase shall not exceed fifty dollars
($50) month and such monthly increases in the aggregate shall
not exceed two hundred fifty dollars ($250) per month; and
(iii) Such increase shall begin to apply to benefits
payable 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:
(i) 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;
34
(ii) Each such increase shall not exceed fifty dollars
($50) month or six hundred dollars ($600) per Plan Year;
(iii) The overall aggregate amount of such annual
increases shall not exceed six thousand dollars ($6,000); and
(iv) All increases in benefits paid under this Section 7.9
shall be considered cumulatively.
(v) 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:
(i) 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;
(ii) Each such increase shall not exceed fifty dollars
($50) month or six hundred dollars ($600) per Plan Year;
35
(iii) The overall aggregate amount of such annual
increases shall not exceed nine thousand dollars ($9,000); and
(iv) All increases in benefits paid under this Section 7.9
shall be considered cumulatively in applying the overall
aggregate limits.
(v) Such increase shall begin to apply to benefits
payable 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
36
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 1.23, 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.
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
37
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 may be 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
38
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 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
(9) except for the power to amend the Pension Plan
which is specifically reserved to the Board of Trustees of the District,
39
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,
Claims Processor will adopt a written opinion using language intended to be
understood by the Claimant setting forth:
(1) the specific reason or reasons for denial;
(2) the specific references to pertinent Plan provisions on
which the denial is based;
(3) a description of any additional material or information
40
necessary for the Claimant to perfect the claim and an explanation why
such material or such information is necessary;
(4) appropriate information regarding steps to be taken if the
Claimant wishes to submit the claim for review;
(5) 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 a
review of the Claims Processor's determination by the Claims Appeal Reviewer
within such sixty (60) day period, he shall be barred and stopped 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
41
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.
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
42
firm may be 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
43
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.
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 any way affected
hereby.
11.2 Spendthrift Provisions. Except as provided in Income Tax
Regulation 1.401(a)-13(e), 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
44
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 a review of the
45
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 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
46
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.
Section Four. Effective January 1, 2000 and subject to the
limitations described herein, each Employee who is a Member under the Pension
47
Plan and who Separates From Service after attaining 75 points after January 1,
2000, or a Member who retires after attaining age 62, 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 total cost of
such additional 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 covered under
another group medical plan, whichever first occurs. 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 limitation 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.
The foregoing Ordinance was adopted December 14, 2000 by the following vote –
Ayes – T.W. Purcell, M.G. Reichert, M.C. Williams, C.D. Seward, and P.P. Finn.
Nays – None.
Secretary-Treasurer