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HomeMy Public PortalAbout02206 O R D I N A N C E NO. 2206 AN ORDINANCE, amending Ordinance No. 1679, as amended on the subject of a retirement system for employees by repealing Section 6.2 Optional Basis and enacting in lieu thereof a new section relating to the same subject to be known as Section 6.2 Optional Basis and containing an emergency clause. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. Article I of Ordinance No. 1679 as amended is hereby amended by repealing Section 6.2 thereof and enacting in lieu thereof a new section relating to the same subject and to be known as Section 6.2 of said Ordinance, which shall read as follows: 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 monthly installments have been paid. If no Beneficiary survives to receive all such installments, the commuted vague 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 3 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 one year before his Option Date, 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 one year 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 4 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 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 Two. The passage of this Ordinance being deemed necessary for the immediate preservation of the public 5 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 August 11, 1971.