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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- 2 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 3 (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 4 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 5 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 6 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 7 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 8 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. 9 The foregoing Ordinance was adopted August 15, 1969