HomeMy Public PortalAbout01936 O R D I N A N C E NO. 1936
AN ORDINANCE, amending Ordinance No. 1679, on the
subject of a retirement system for employees by adding to Sections
1.9, 6.2 and 13.5 and by changing a dollar amount in Section 5.1
and adding thereto.
WHEREAS, amendments are required to meet certain
requirements of the Internal Revenue Service for qualification,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES
OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. Section 1.9 of Ordinance No. 1679, as
adopted October 30, 1967, is hereby amended by addition of a
sentence reading as follows: "The provisions of this Section 1.9
shall be administered by the District on the basis of uniform non-
discriminatory rules."
Section 1.9 as hereby amended shall read as follows:
"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 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. The provisions of this Section 1.9 shall be
administered by the District on the basis of uniform non-
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discriminatory rules.
Section Two. Subparagraph (A)(1) of Section 5.1 of
Ordinance No. 1679 is hereby amended by substituting the figure
"$4,800.00" for "$6,600.00" in lines 2 and 3 thereof and by
inserting the words "after attaining age 22" after the words
"Credited Service" in line 4 thereof.
Section 5.1 as hereby amended shall read as follows:
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 $4,800.00 plus 1-1/2% of such
Past Service Earnings which are in excess of
$4,800.00 multiplied by his years of Credited
Service after attaining age 22 (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
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(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 Three. Subparagraph (B)(2) of Section 6.2 of
Ordinance No. 1679 is hereby ended by addition of a sentence
reading as follows: "In no event may this option become effective
if the Contingent Annuitant is other than the spouse of the Member
and if the election of such option would result in the benefits
payable to the Member having an actuarial value less than 50% of
the Member's normal benefit."
Section 6.2 of Ordinance No. 1679 as hereby amended
shall read as follows:
Optional Basis - In lieu of the regular retirement benefit payable
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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 thee 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
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hundred and twenty 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. In no event
may this option become effective if the Contingent
Annuitant is other than the spouse of the Member
and if the election of such option would result in
the benefits payable to the Member having an
actuarial value less than 50% of the Member's
normal benefit.
(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
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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 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
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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.
(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
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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 Four. Section 13.5 of Ordinance No 1679 is
hereby amended by insertion of the word "initial" in line thereof
immediately preceding the word "determination."
Section 13.5 as hereby amended shall read as follows: 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 secure an initial
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.
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The foregoing Ordinance was adopted August 15, 1969