HomeMy Public PortalAbout01679AMENDED: August 15, 1969
January 2, 1970
August 11, 1971 REPEALED BY ORDINANCE NO. 3559
O R D I N A N C E NO. 1679
AN ORDINANCE establishing a retirement system to provide
for the pensioning and other retirement benefits of employees of
The Metropolitan St. Louis Sewer District, and the widows 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 pursuant to the authority of
Senate Bills Numbers 14 and 30, adopted by the 74th General
Assembly of the State of Missouri, and pursuant to the Plan of The
Metropolitan St. Louis Sewer District, and containing an Emergency
Clause.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. 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
widows 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. Said Pension Plan shall read
as follows:
ARTICLE I
DEFINITIONS
The following words and phrases, when used hereafter in
this document, shall have the meanings set forth below:
Section 1.1. "Pension Plan" means The Metropolitan St.
Louis Sewer District Employees' Pension Plan, effective as of
November 1, 1967, as set forth herein and as it may be amended from
time to time.
Section 1.2. "District" means The Metropolitan St. Louis
Sewer District.
Section 1.3. "Board" means the Board of Trustees of the
District.
Section 1.4. "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 toward the cost of the Pension
Plan and the income therefrom.
Section 1.5. "Trust" means any trust agreement made and
entered into by the District with a Trustee or Trustees or any
corresponding document with any successor Trustee or Trustees.
Section 1.6. "Carrier" means any insurance company
selected by the Board at any time to hold certain contributions
towards the cost of the Pension Plan, or to provide certain
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benefits specified by the Pension Plan, under one or more group
annuity contracts.
Section 1.7. "Employee" means any employee who is
employed by the District on a regular, full-time permanent basis
and who has been appointed to a position in the classified service
in accordance with Civil Service Rules and has successfully
completed his probationary period, and the Executive Director,
Director of Finance, Secretary-Treasurer, heads of Departments, and
Secretary to the Executive Director, but shall not include
technical personnel employed on special occasions, or those who may
be employed in an advisory capacity. Any person customarily
employed by the District for at least 20 hours a week and 5 months
a year shall be deemed to be employed on a regular full-time
permanent basis, provided however, that no individual shall be
considered on a full-time, permanent basis until he has worked with
the District for six months.
Section 1.8. "Member" means any Employee or former
Employee of the District who is covered under the Pension Plan in
accordance with Article II hereof.
Section 1.9. "Continuous Service" means the period of
time between an Employee's date of most recent employment as shown
on the records of the District and the date to which such
Continuous Service is being determined. Continuous Service shall
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not be interrupted by an authorized leave of absence, military
service (provided the Employee retains re-employment rights under
Federal or other laws), or any other absence which does not
constitute a termination of employment under the District's Civil
Service rules and regulations.
Section 1.10. "Credited Service" means that portion of
an Employee's Continuous Service which is actually credited under
the Pension Plan with respect to the determination of benefits
thereunder. Service after the Effective Date shall not be Credited
Service except when the Employee is making contributions to the
Pension Plan.
Section 1.11. "Plan Year" means the period beginning on
November 1, 1967 and ending on December 31, 1967. Thereafter, Plan
Year means any twelve-month period beginning on any January 1 and
terminating on the following December 31.
Section 1.12. "Earnings" means the total base
compensation paid to a Member by the District during the Plan Year
(after the first Plan Year, this is the calendar year) excluding
bonuses, overtime, and any other additional forms of compensation,
and all compensation after his Normal Retirement Date.
Section 1.13. "Past Service Earnings" means the Member's
annualized base rate of pay on November 6, 1967. In the case of a
Member who is paid biweekly this will be 26 times his biweekly rate
on that date. In the case of a Member who is paid semimonthly this
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will be 24 times his semimonthly rate on that date.
Section 1.14. "Beneficiary" means any person designated
to receive certain benefits payable hereunder on or after a
Member's death.
Section 1.15. "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 Early Retirement Date, or a Postponed Retirement Date, as set
forth in Article IV.
Section 1.16. "Accumulated Contributions", when used
with respect to an individual Member as of any specified date,
means the sum of all unrefunded contributions made by such Member
under this Pension Plan, plus interest on such contributions from
the end of the Plan Year in which made to the last day of the
calendar month next preceding or coinciding with the specified
date, such interest to be compounded at a rate of 3-1/2% per year.
Section 1.17. "Accrued Retirement Benefit", when used
with respect to an individual Member, as of any specified date,
means the sum of the Retirement Benefit as set forth in Article V,
payable to him commencing at his Normal Retirement Date based on
his Credited Service and Earnings to the specified date.
Section 1.18. "Committee" means the Pension Committee
described in Article XI.
Section 1.19. Masculine pronouns used in this Pension
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Plan shall be understood to refer to persons of either sex.
Section 1.20. "Pension Fund" means the total fund
derived from the District appropriations, from contributions made
by respective Members of the Pension Plan, from any property given
or donated from any source, and the income derived therefrom.
ARTICLE II
ELIGIBILITY AND PARTICIPATION
Section 2.1. Eligibility - Any individual employed by
the District who becomes an Employee as defined in Section 1.7 of
this Plan shall be eligible to participate hereunder and shall so
participate as a condition of his employment.
Section 2.2. Participation - Each Employee shall become
a Member under this Pension Plan and shall participate in and
contribute to the Pension Plan commencing with the first day of the
pay period coincident with or next following the date he became an
Employee. In the month before such Employee becomes a Member he
shall where possible complete a beneficiary designation form.
Section 2.3. Loss of Credited Service - Credited Service
shall not be granted for months during which a Member is on
authorized leave of absence without pay and does not contribute to
the Pension Plan. Periods for which service is not credited shall
be deducted from the Member's Credited Service as determined under
Section 1.10 but not from his Continuous Service as determined
under Section 1.9.
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Section 2.4. Termination of Participation - Each Member
shall remain a Member until the earlier of his death or termination
of employment from the District. He shall continue to be a Member
even though he ceases to be an Employee so long as he continues in
the employ of the District. He will contribute to the Pension Plan
and receive service credit only during such periods of his
membership as he qualifies as an Employee. 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 re-employment
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. A former Member who is re-employed by the District must again
fulfill the conditions of this Article II before again becoming a
Member of the Pension Plan.
ARTICLE III
CONTRIBUTIONS
Section 3.1. Employee Contributions - During each Plan Year
after an Employee becomes a Member and prior to the time that he
attains his Normal Retirement Date there shall be deducted from his
pay 2-1/2% of that portion of the Member's Earnings for that Plan
Year which are not in excess of $6,600 and 5% of that portion of
such Earnings as are in excess of $6,600; provided however, that
there shall be no deduction for any pay period prior to the first
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pay period commencing on or after the Effective Date, and
Section 3.2. Absences - If a Member is on an authorized
leave of absence, no deduction shall be made for such period,
unless such Member is receiving pay from the District during such
leave of absence.
Section 3.3. District Contributions - The District will
from time to time contribute to the Pension Plan such sums as are
considered necessary by the District, on the basis of actuarial
calculations, to carry out the purposes of the Pension Plan.
Section 3.4. Disposition of Contributions - Members' and
District contributions to the Pension Plan shall be placed in a
Trust Fund or Funds held by a Trustee or Trustees, or shall be held
by a Carrier or Carriers under a group annuity contract or
contracts, or shall be placed in part in a Trust Fund or Funds and
in part in a group annuity contract or contracts.
ARTICLE IV
RETIREMENT DATES
Section 4.1. Normal Retirement Date - A Member shall be
normally retired from the service of the District and begin to
receive a monthly retirement benefit as of his Normal Retirement
Date, which is the first day of the month coinciding with or next
following his 65th birthday, or May 1, 1968 if later.
Section 4.2. Early Retirement Date. - A Member
terminating employment with the District both after attaining his
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55th birthday and after completing ten years of Continuous Service
may elect to receive monthly retirement benefits commencing at an
Early Retirement Date which may be the first day of any month
coincident with or subsequent to the Member's date of termination
of employment, but not prior to May 1, 1968.
Section 4.3. Postponed Retirement Date - A Member may at
the request of the District, and with the consent of the Board,
granted on a year-to-year basis only, remain in service after his
Normal Retirement Date. In such event, he will have a Postponed
Retirement Date which will be the first day of the month coincident
with or next following his last day of active service.
ARTICLE V
RETIREMENT BENEFITS
Section 5.1. At Normal Retirement Date - The annual
retirement benefit payable to a Member who retires on his Normal
Retirement Date shall be equal to the sum of his past service
benefit, if any, and his future service benefit, each determined as
follows:
(A) Past Service Benefit
The annual past service benefit of a Member who becomes a
Member on the Effective Date shall be the sum of (1) and
(2), where (1) and (2) are as follows:
(1) The sum of 3/4% of the Member's Past Service
Earnings which are not in excess of $6,600 plus 1-
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1/2% of such Past Service Earnings which are in
excess of $6,600 multiplied by his years of
Credited Service (in this case only, Credited
Service is defined as Continuous Service with the
District since date of hire) on November 1, 1967,
determined to completed twelfths, plus
(2) If the Member attained or will attain his 50th
birthday, on or prior to December 31, 1967, 1/2% of
his Past Service Earnings multiplied by the years
and completed twelfths of a year from the January 1
of the calendar year in which he attained his 50th
birthday, or his date of hire if later, up to
October 31, 1967.
(B) Future Service Benefit
The annual future service benefit of a Member shall
be his actual total contributions to the Pension
Plan multiplied by .40, plus 1/2% of his Earnings
for each Pension Plan Year commencing with the
Pension Plan Year in which he attains his 50th
birthday or with the Effective Date if his 50th
birthday is on or before December 31, 1967.
Section 5.2. At Early Retirement Date - The annual
retirement benefit payable to a Member who retires on an Early
Retirement Date shall be equal to his Accrued Retirement Benefit on
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his Early Retirement Date, or the date of his termination of
service, if earlier, reduced by 5/12 of 1% for each month by which
such Member's Early Retirement Date precedes his Normal Retirement
Date.
Section 5.3. At Postponed Retirement Date - The annual
retirement benefit payable to a Member who retires on a Postponed
Retirement Date, shall be equal in amount to that payable on his
Normal Retirement Date. In addition he shall receive a special
annual retirement benefit commencing on his Postponed Retirement
Date which shall be the actuarial equivalent of the lump sum value
of those monthly benefit payments, which he would have received
prior to his Postponed Retirement Date had he retired on his Normal
Retirement Date, accumulated at an annual rate of interest equal to
4% from the dates such payments would have been made up to his
Postponed Retirement Date.
ARTICLE VI
PAYMENTS OF RETIREMENT BENEFITS -
OPTIONS
Section 6.1. Regular Basis - The retirement benefits
provided for in Article V hereof, whether payable commencing at
Normal, Early or Postponed Retirement Date, shall be payable in
monthly installments each equal to one-twelfth of the annual amount
to which a Member is entitled and shall terminate with the
monthly payment coinciding with or next preceding the date of death
of the Member except as provided in Article VII hereof.
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Section 6.2. Optional Basis - In lieu of the regular
retirement benefit payable as hereinabove set forth, a Member may
elect one of the following options, subject to the limitations set
forth herein:
(A) Life Annuity Option - A Member may, in lieu of the
retirement benefit specified in Article V and the Death
Benefit specified in Section 7.2, elect an increased amount of
monthly benefit of equal actuarial value payable monthly for
his lifetime with the provision that no benefits will be
payable after the Member's death. This election may be made
at any time prior to the Member's Retirement Date and such
election may be revoked by the Member at any time prior to his
Retirement Date.
(B) Beneficiary Forms - A Member may, in lieu of the
retirement benefit specified in Article V and the Death
Benefit specified in Section 7.2, elect, under the
circumstances set forth in (C) and (D) below, a reduced amount
of retirement benefit of equal actuarial value under one of
the following forms:
(1) Ten-Year-Certain Option - Under this option the reduced
retirement benefit will be payable until the
Member's death and, if such death occurs within ten years
of his Retirement Date, will be continued to his
Beneficiary until a total of one hundred and twenty
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monthly installments have been paid. If no Beneficiary
survives to receive all such installments, the commuted
value of the unpaid installments will be paid to the
estate of the last to die of the Member or the
Beneficiary.
(2) Contingent Annuitant Option - Under this option the
reduced retirement benefit will be payable until the
Member's death and, if his Contingent Annuitant, who
shall be designated by the Member on a form furnished by
the Committee, survives him, will be continued in its
full or lesser amount, as elected by the Member, to the
Contingent Annuitant until his death.
(C) Option Date - An option elected under the circumstances
set forth below becomes effective at the earlier of the
Member's Retirement Date or his Normal Retirement Date
which date is referred to as the Option Date.
(D) Timely Election - The options stated in (B) must be
elected on a form satisfactory to the Committee prior to
the Member's Option Date, and if not elected at least two
years before his Option Date, or on or before May 1,
1968, if later the Member must furnish evidence of his
good health satisfactory to the Committee for the
election to be valid. A Member may not elect the
Contingent Annuitant Option if the monthly payments to
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his Contingent Annuitant would be less than $10 a month.
(E) Change or Revocation - An election made under (B) may not
be validly changed or revoked except as follows:
(1) Any change may be made by the Member if he files
with the Committee a written request therefor at
least two years before his Option Date.
(2) Any change may be made at any time before his
Option Date by mutual agreement in writing between
the Member and the Committee.
(3) A Beneficiary under the Ten-Year-Certain Option may
be changed by written request of the Member at any
time before or after retirement.
(4) If the Contingent Annuitant designated under the
contingent Annuitant Option dies before the
Member's Option Date, his election shall be
considered as automatically void.
(5) If the Member dies before his Option Date, any
election made under this Section 6.2 shall be void.
(6) If the Member dies after his Option Date but before
his Retirement Date, any election made under (B)
will be in effect and payments will commence to the
designated Beneficiary or Contingent Annuitant, if
any, as though the Member had retired the day
before his death.
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(F) Social Security Option - A member who retires and whose
retirement benefits hereunder are to commence prior to
age 62 may elect to have the retirement benefit to which
he is entitled paid on an actuarially adjusted basis so
as to be larger for the months prior to and smaller for
the months after age 62, the age at which he may begin to
receive primary benefits under the Federal Social
Security Act. In the event of such election by a Member
the amount of his monthly retirement benefit payments
hereunder until age 62 shall be as nearly as practicable
equal to the amount of his monthly retirement benefits
hereunder plus the monthly amount of such primary
benefits estimated to become payable to him after such
age. The retirement benefit payments under this option
shall be payable during the Member's lifetime and
continuing to the first day of the month in which the
Member's death occurs. The election of this option shall
be made by written notice to the Committee prior to the
Member's Early Retirement Date.
Section 6.3. Small Benefits - Regardless of the other
provisions of this Pension Plan, if the monthly benefit payable to
a Member or to his Beneficiary is less than $10.00, the actuarial
equivalent of all future benefits with respect to such Member may
be paid any time in a single lump sum or in such other manner as
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may be agreed upon by the Committee.
Section 6.4. Source of Benefit Payments - All benefit
payments specified by this Plan will be made from a Trust or by a
Carrier.
ARTICLE VII
DEATH BENEFITS
Section 7.1. Death Before Retirement - In the event of
the death of a Member prior to both his Retirement Date and his
Normal Retirement Date, his accumulated Contributions shall
thereupon become payable to his Beneficiary.
Section 7.2. Death After Retirement - At the death of a
Member, who has not made an election in accordance with Article VI,
on or after the earlier of his Retirement Date or Normal Retirement
Date but before having received 60 monthly pension payments, the
balance of such 60 monthly pension payments shall thereafter become
payable to his Beneficiary. If an option elected under Article VI
has become effective on his Retirement Date or Normal Retirement
Date, no death benefits will be payable under this Section but
benefits will be payable in accordance with the option which is in
effect.
Section 7.3. Designation of a Beneficiary - Each Member
shall, at the time he becomes a Member, designate his Beneficiary
specifically by name on a form provided by the District through the
Committee. Any such designation, whether original or subsequent,
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may be revoked and changed from time to time, upon such form and in
such manner as may be provided by the Committee without the consent
of any Beneficiary. Only one person may be designated to be
Beneficiary of such Member at any one time, and each such
designation shall be contingent upon the named Beneficiary
surviving the Member, except that by and with the consent of the
Committee more than one Beneficiary may be designated by any
Member, and such shares, terms and conditions as may be acceptable
to the Committee shall be specified. If no Beneficiary has been
designated or if the designated Beneficiary does not survive the
Member, then any benefits otherwise payable to the Beneficiary
shall at the option of the Committee be paid to the estate of the
Member or to one or more of the following: (1) widow or widower,
(2) children, (3) parents, (4) brothers and sisters, (5) executors
or administrators.
ARTICLE VIII
WIDOWS' BENEFIT
Section 8.1. Eligibility for Benefit - The surviving
widow or dependent widower, such dependency being recognized only
if recognized for purposes of Social Security benefits, of any
qualified Member shall be eligible for a Widow's Benefit,
commencing on the first day of the month next following the date of
the Member's death. The Member shall be qualified if he met all of
the following requirements on the date of his death.
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(A) Member had completed at least 10 years of Continuous
Service;
(B) Member had attained his 40th birthday;
(C) Member had been married to his spouse for at least one
year;
(D) Member had not attained his Normal Retirement Date;
(E) Member was an active Employee or a Member receiving or
eligible to receive Disability Benefits in accordance
with Article IX on that date.
Section 8.2. Amount and Duration of Benefits - The
monthly amount of the widow's or dependent widower's benefit
payable to an eligible widow or dependent widower shall be equal to
50% of one-twelfth of the Member's Accrued Retirement Benefit
determined as of the date of his death, or $50, if greater. Such
widow's or dependent widower's benefit shall be payable monthly to
such eligible widow or dependent widower with the final monthly
payment made on the earlier of (a) the first day of the month
immediately preceding or coinciding with the date of the widow's or
dependent widower' s death or (b) the first of the month
immediately preceding the date of the widow's or dependent
widower's remarriage.
ARTICLE IX
DISABILITY BENEFITS
Section 9.1. Eligibility for and Amount of Benefit - A
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member who has attained age 40, has at least 10 years of Continuous
Service on becoming disabled, (as defined in Section 9.2.) and
qualifies for disability benefits under the Federal Social Security
Act shall become entitled to a monthly Disability Benefit in the
amount of one-twelfth of his Accrued Retirement Benefit as of the
date of his termination of employment on account of such
disability, hereinafter referred to as the Disability Date.
Section 9.2. Disability Defined - A Member shall be
deemed to be disabled for purposes of the Pension Plan only if
through unavoidable cause (a) he has been disabled by illness or
injury so as to be incapable of carrying on the duties of any
occupation, (b) such disability shall have continued for a period
of at least six consecutive months, and (c) such disability shall
be determined by a qualified physician selected by the District as
being, in his opinion, permanent. Such disability shall be deemed
to have resulted from an unavoidable cause unless (a) it was
contracted, suffered or incurred while the Member was engaged in,
or it resulted from his having engaged in, a felony; or (b) it
resulted from his habitual use of drugs, intoxicants, or narcotics;
or (c) it resulted from a deliberately self inflicted injury or
self-induced sickness; or (d) it resulted from injury received or
disease contracted in service in the Armed Forces.
Section 9.3. Payment of Disability Benefit - Payment of
the Disability Benefit shall begin on the first day of the month
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coinciding with or next following a date six months after the
Member's Disability Date and shall continue until the Member
attains his Normal Retirement Date or until the Committee
determines that the Member is no longer disabled.
Section 9.4. Administration of Disability Benefits - The
Committee shall interpret and administer the provisions of this
Article IX in a uniform manner so as to preclude any individual
selection or discrimination. Any Member who is determined by the
Committee to be disabled may be required by the Committee to submit
to a medical examination by a physician or clinic selected by the
Committee at any time during the Member's period of disability
prior to age 65, but not more often than semi-annually to determine
whether such disabled Member is eligible for the continuation of
his Disability Benefit payments. If, on the basis of any medical
examination or other fact from any and all sources, it is found
that such disabled Member is no longer disabled in accordance with
Section 9.2, his Disability Benefit payments shall thereupon cease.
In the event a disabled Member refuses to submit to a medical
examination, the Committee shall suspend Disability Benefit
payments until such Member submits to a medical examination.
Section 9.5. Re-employment of a Member - In the event of
re-employment of a Member who has been disabled and has been
receiving Disability Benefit payments under this Article IX, such
Member's period of absence while disabled shall be considered as
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service with the District for all purposes of the Pension Plan, his
Continuous Service shall be unbroken, and he shall resume active
participation in the Pension Plan as of his date of re-employment.
The provisions of the Pension Plan shall thereafter relate to such
Member as though he had not been absent on disability, except that
retirement benefits shall not be earned or credited for such period
of absence.
Section 9.6. Retirement on Normal Retirement Date - The
Disability Benefit payments to a disabled Member shall, in all
cases in which such benefits have not been terminated prior to age
65, cease at such age. A disabled Member reaching age 65 will then
be retired on his Normal Retirement Date and commence receiving
regular retirement benefits on such date in accordance with Article
V based on his earnings and service to his Disability Date.
Section 9.7. Termination of Disability Prior to Age 65 -
If the Disability Benefit payments of a Member are terminated prior
to age 65 and the Member does not return to the employ of the
District as in Section 9.5, the Member's rights to further benefits
under the Pension Plan will be determined in accordance with
Article IV, Article VI, and Article X, as may be appropriate, as
though he had severed his employment with the District as of the
date he ceased to be eligible to receive Disability Benefit
payments.
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ARTICLE X
BENEFITS ON TERMINATION OF EMPLOYMENT PRIOR TO
RETIREMENT
Section 10.1. Vested Termination - A Member terminated
from the service of the District other than by death, retirement,
or disability, on or after the completion of 10 or more years of
Continuous Service shall be entitled to a vested retirement benefit
beginning on his regular Normal Retirement Date, in the amount of
his Accrued Retirement Benefit at his termination date, or on an
Early Retirement Date, in a reduced amount. Such a Member may, at
any time between his termination date and his Normal Retirement
Date, elect to receive an immediate lump-sum refund of his
Accumulated Contributions in lieu of all vested benefits to which
he would otherwise be entitled. The first monthly payment of any
retirement benefits to which a Member is entitled under this
Section 10.1, shall be payable as of the later of (a) the Member's
elected Retirement Date (providing application is made therefor not
earlier than 90 days prior to such date) or (b) the first day of
the month next following the date in which the application is
received by the Committee.
Section 10.2. Early Termination - A Member terminated
from the service of the District, other than by death, retirement,
or disability before meeting the requirements of Section 10.1 shall
receive as full and final settlement of the liabilities of the
Pension Plan with respect to him a lump-sum refund of his
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Accumulated Contributions, if any, and will thereupon cease to be a
Member.
ARTICLE XI
ADMINISTRATION OF THE PENSION PLAN - THE PENSION
COMMITTEE
Section 11.1. The Pension Plan shall be administered by
a Committee herein called 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, Past Service Earnings, Earnings, Eligibility and
Termination of Membership with respect to any Member of the Pension
Plan, or his Beneficiary.
Section 11.2. The Pension Committee shall consist of
eight members: One member, appointed by the Chairman of the Board,
shall be a City of St. Louis member of the Board of Trustees of the
District. One member, appointed by the Chairman of the Board,
shall be a St. Louis County member of the Board of the District,
and four members shall be the Executive Director, the Secretary-
Treasurer, the General Counsel, the Director of Finance, all of the
District, and the other two members shall be members of the Pension
Plan, and also employees of the classified service of the District,
and shall be elected by and from the membership of the Pension
Plan, and shall hold office only while members of the Pension Plan.
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The first elected members shall be elected within sixty days
following November 1, 1967. The one member elected for a term
expiring October 31, 1968, and one member elected for a term
expiring October 31, 1969. The terms thereafter shall be for two
years each commencing November 1 of the respective year. Within ten
days after the approval of this Ordinance the Board shall proceed
with such actions as are necessary to provide for the election of
the members from the classified service of the District. If a
vacancy occurs among the elected members of the Pension Committee,
the vacancy shall be filled for the unexpired term in the same
manner as the office was previously filled. The Personnel Director
of the District shall serve as Secretary of the Committee and shall
be an ex-officio member thereof, without the power to vote. The
Committee shall elect its own Chairman and Vice-Chairman and shall
delegate to them their respective duties.
Section 11.3. The Pension Committee may adopt such rules
governing its action, and recommend the employment of agents,
attorneys, actuaries and clerical assistants as it may deem
necessary, with approval of the Board. The Board shall have the
power to change from time to time all rules, regulations and
actuarial procedures and tables required in the administration of
the Pension Plan as recommended by the Pension Committee.
Section 11.4. The decision of the Pension Committee upon
matters within its jurisdiction shall be conclusive and binding
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upon all parties concerned. Decisions by the Pension Committee
shall be consistent in order to avoid any prohibited discrimination
during the operation of the Pension Plan. Any Employee or
Beneficiary aggrieved by any decision of the Pension Committee may
appeal its decision to the Board.
Section 11.5. The Pension Committee shall authorize the
Trustee or the Carrier to make all payments necessary in order to
carry out the provisions of the Pension Plan.
Section 11.6. The Board and the Pension Committee shall
be entitled to rely upon all tables, valuations, certificates and
reports furnished by an actuary selected by the Board, upon all
certificates and reports made by an accountant so selected, and
upon all opinions given by any legal counsel so selected, and the
Board and the Pension Committee shall be fully protected in respect
of any action taken or suffered in good faith in reliance upon any
actuary, accountant or counsel, and all action so taken or suffered
shall be conclusive upon each of them and upon all Members and
their Beneficiaries and Contingent Annuitants, if any.
ARTICLE XII
MANAGEMENT, INVESTMENT AND USE OF FUNDS
Section 12.1. There is hereby created The Metropolitan
St. Louis Sewer District Employees Pension Fund, hereinafter
referred to as the "Pension Fund".
The Pension Fund shall be derived from District
appropriations and from contributions made by the respective
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Members of the Pension Plan, and from income derived therefrom, and
from any property given or donated to it from any source.
Section 12.2. 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.
Section 12.3. No part of the corpus or income of the
Pension Fund or of any trust maintained pursuant to this Pension
Plan or any funds contributed thereto shall be used or diverted, by
any means, to any purpose other than to benefit Members, retired
Members, or their Beneficiaries.
Section 12.4. The Board shall select a custodian of all
books, records, accounts and other property of the Pension Fund
established pursuant to this Pension Plan, subject to the control
and direction of the Board. He shall keep separate books and
complete accounts of the Pension Fund, and his books and records
shall be subject to the inspection of the Board or any of its
members at all times, and be it further provided that the custodian
of all books, records, accounts and other property of the Pension
Fund established pursuant to this Pension Plan shall be bonded in
an amount to be determined by the Board.
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Section 12.5. The District may rely upon the estimates
made by an actuary selected by it of the amount of contributions
needed to carry out the Pension Plan. Neither the District, the
Actuary, the Trustee, or Trustees, nor the Carrier or Carriers
shall be liable in any manner if the Trust Fund or Trust Funds,
and/or the amounts paid to Carrier or Carriers, shall prove
insufficient to provide for the payment of such Pension benefits.
Such benefits are to be payable only to the extent that such Funds,
or amounts, or both shall suffice therefor.
ARTICLE XIII
AMENDMENT OR TERMINATION OF THE PENSION PLAN
Section 13.1. The District reserves the right at any
time to modify or amend or terminate the Pension Plan in whole or
in part, provided, however, that the District shall have no power
to modify or amend the Pension Plan in such manner as would cause
or permit any funds held by the Trustee or the Carrier hereunder to
be used for, or diverted to, purposes other than for the exclusive
benefit of Members or their Beneficiaries, or as would cause or
permit any portion of such funds or assets to become the property
of the District until all liabilities pursuant to the Pension Plan
are satisfied; and provided further, that the duties or liabilities
of the Trustee and/or the Carrier shall not be increased without
their written consent. No such modification or amendment shall
have the effect of retroactively changing or depriving Members or
Beneficiaries of rights already accrued under the Pension Plan.
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Section 13.2. If the Pension Plan is terminated, or if
the District discontinues making contributions hereunder, the funds
held by the Trustee and the Carrier hereunder shall be used,
subject to the payment of administrative expenses, for the benefit
of Members and Beneficiaries, and for no other purpose, until all
remaining liabilities to them for benefits accrued under the
Pension Plan to the date of termination have been satisfied, such
liabilities being determined as though all Members on the
termination date had fully completed the vesting requirements of
Section 10.1. In the event that such funds and assets are
insufficient to satisfy such liabilities in full, they shall then
be used in the following order:
Class I - First, for the satisfaction of all remaining
liabilities with respect to retired Members.
Class II - Then, for the satisfaction of such liabilities
with respect to each unretired Member as may be met by application
of his Accumulated Contributions.
Class III - Then, towards the satisfaction of any
remaining liabilities with respect to Members who had fulfilled the
requirements of Section 10.1 prior to the Pension Plan termination
date, giving preference to those Members with the earliest birth
dates.
Class IV - Finally, on a pro rata basis toward the
satisfaction of the remaining liabilities with respect to other
29
Members.
Section 13.3. In the satisfaction of liabilities at
termination date in accordance with Section 13.2, funds in the
hands of the Trustee or Trustees and/or Carrier or Carriers
hereunder shall be applied, subject to the payment of
administrative expenses, at the discretion of the District through
the purchase of guaranteed annuities, lump-sum payments,
installment payments or in any other manner which will in a
consistent and non-discriminatory manner carry out the intent of
Section 13.2.
Section 13.4. 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 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 60 days in advance of such date by the District
to the Trustee or Trustees and/or the Carrier or Carriers.
Section 13.5. The Trust and/or the insurance contract
executed pursuant to this Pension Plan are intended to qualify the
Pension Plan as a tax-exempt pension trust pursuant to the
provisions of Section 401 (a) of the Internal Revenue Code, as now
or hereafter amended. In the event that the District is unable to
30
secure a determination letter from the Internal Revenue Service
qualifying the Pension Plan as a tax-exempt pension trust then,
anything in Sections 13.1 - 13.4 and other portions of this Pension
Plan to the contrary notwithstanding, the District may terminate
the Pension Plan and Trust, and all contributions previously made
thereto by the District shall be returned to the District; all
contributions made by any Member under the Pension Plan shall be
returned to such Member.
ARTICLE XIV
PROVISIONS TO PREVENT DISCRIMINATION
Section 14.1. (a) If the Pension Plan is terminated or
the full current costs thereof are not met at any time prior to
November 1, 1977 (or, if the full current costs are not met on
November 1, 1977 if the Pension Plan is terminated thereafter but
prior to the date the full current costs are met) the amount of the
District contributions (or funds attributable thereto) to be used
for the benefit of any Member entered on the list of the twenty-
five highest-paid Employees as of November 1, 1967, filed with the
Internal Revenue Service in accordance with the requirements of
Regulation Section 1.404 (a) - 2 (a) (3), whose annual benefit
provided by such contribution will exceed $1,500 shall not exceed
the larger of the following amounts:
(1) $20,000;
(2) An amount computed by multiplying 20% of the first
31
$50,000 of the Member's average annual compensation
during the five years preceding the date of
calculation by the number of years after November
1, 1967;
(3) Such larger amount as may be permitted under the
relevant laws and regulations at the time.
(B) If a Member described in this Section 14.1 leaves the
employ of the District when the full current costs have not been
met, the benefits he may receive from such District contributions
shall not, at any time, prior to November 1, 1977 exceed the
benefits set forth in (a) herein.
(C) These conditions shall not restrict the full payment of
any death or survivor's benefit on behalf of a Member who dies
while the Plan is in full effect and its full current costs have
been met.
(D) The foregoing shall not restrict the current payment of
full retirement benefits called for by the Pension Plan for any
retired Member while the Pension Plan is in full effect and its
full current costs have been met.
(E) In the event of termination of the Pension Plan prior to
November 1, 1977 distribution to the unretired Member other than
the Members described in this Section 14.1 shall include an
equitable apportionment among such other Members of all excess
benefits provided by the District contributions for the Members
32
described in this Section 14.1 in the following manner: To each
such other Member in the ratio that the reserve liability then
attributable to him bears to the total reserve liability for all
such other Members under the Pension Plan.
Section 14.2. The restrictions imposed by the provisions
of this Article XIV are included solely to meet the requirements of
the Internal Revenue Service as stated in current regulations. In
the event that it should be determined by statute, a court
decision, ruling by the Commissioner of Internal Revenue, or
otherwise, that the provisions of this Article XIV are no longer
necessary to qualify the Pension Plan under the Internal Revenue
Code, this Article XIV shall become inoperative without the
necessity of further amendment.
ARTICLE XV
LIMITATIONS ON RIGHTS OF EMPLOYEES AND CREDITORS
Section 15.1. Participation in the Pension Plan shall
not give any Employee any right or claim to a retirement benefit,
except upon reaching his Retirement Date hereunder, and no
Employee, Member, or Beneficiary shall be entitled to any right or
claim to a retirement benefit, except to the extent that such right
is specifically fixed under the terms of the Pension Plan and the
assets of the Pension Plan are sufficient therefor. The
establishment of the Pension Plan shall not be construed as giving
any Employee or Member a right to be continued in the employ of the
33
District, or as interfering with the right of the District to
terminate the employment of any Employee or Member at any time.
Section 15.2. No benefit which shall be payable under
the Pension Plan to any person shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber, or charge the same shall
be void; and no such benefit shall in any manner be liable for, or
subject to, the debts, contracts, liabilities, engagements, or
torts of any such person nor shall it be subject to attachment or
legal process for, or against, such person, and the same shall not
be recognized under the Pension Plan, except to such an extent as
may be required by law.
Section 15.3. If any person who shall be entitled to any
benefit under the Pension Plan shall become bankrupt or attempt to
anticipate, alienate, sell, transfer, assign, pledge, encumber, or
charge such benefit under the Pension Plan then such benefit shall,
in the discretion of the District, cease and terminate, and in that
event the Trustee or Carrier shall hold or apply the same for the
benefit of such person, his spouse, children, other dependents or
any of them in such manner and in such proportion as the District
shall determine.
ARTICLE XVI
MISCELLANEOUS PROVISIONS
34
Section 16.1. Facility of Payment - If the District in
good faith believes that (a) a person entitled to receive any
payment under the Pension Plan is physically or mentally
incompetent to receive such payment and to give a valid release
therefor and (b) another person or an institution is then
maintaining or has custody of such person, and no guardian,
committee, or other representative of the estate of such person has
been duly appointed by a court of competent jurisdiction, the
payment may be made, to such other person or institution referred
to in (b) above, and the release of such other person or
institution shall be a valid and complete discharge for the
payment.
Section 16.2. Notice of Address - Each person entitled
to benefits under the Pension Plan must file with the District, in
writing his post office address and each change of post office
address. Any communication, statement, or notice addressed to such
person at his latest post office address as filed with the District
will be binding upon such person for all purposes of the Pension
Plan, and neither the Trustee, the Carrier, nor the District shall
be obliged to search for or to ascertain the whereabouts of any
such person. If the District notifies any such person that he is
entitled to benefits under the Pension Plan and also notifies him
of the provisions of this subsection, and if such person fails to
collect his benefits or make his whereabouts known to the District
35
within two years after any benefits hereunder shall become payable,
such person shall lose all benefits under the Pension Plan,
provided however, that the Board may reinstate all benefits under
the Pension Plan.
Section 16.3. Data - Each person entitled to benefits
under the Pension Plan must furnish to the District such documents,
evidence or other information as the District considers necessary
or desirable for the purpose of administering the Pension Plan or
to protect the Pension Plan, the Trustees, or the Carriers; and it
shall be a condition of the Pension Plan that each such person must
furnish such information promptly and sign such documents as the
District may require before any benefits become payable under the
Pension Plan. If the age or any other relevant fact with respect to
any Member, or any other person entitled to receive benefits under
the Pension Plan has been misstated, appropriate offsetting
adjustments shall be made in future benefits.
Section Two. It is hereby declared to be the intention
of the Board of Trustees that the sections, paragraphs, sentences,
clauses and phrases of this ordinance are severable, and if any
phrase, clause, sentence, paragraph or section of this ordinance
shall be declared invalid or unconstitutional by the valid judgment
or decree of any court of competent jurisdiction, such invalidity
or unconstitutionality shall not affect any of the remaining
phrases, clauses, sentences, paragraphs and sections of this
36
ordinance, since the same would have been enacted by the Board of
Trustees without the incorporation in this ordinance of any such
invalid or unconstitutional phrase, clause, sentence, paragraph or
section.
Section Three. The passage of this ordinance being deemed
necessary for the immediate preservation of the public health,
safety and welfare creates an emergency within the meaning of the
Plan. Accordingly, this ordinance shall take effect immediately
upon its enactment.
The foregoing Ordinance was adopted October 30, 1967.