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.