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HomeMy Public PortalAbout03559REPEALED BY #3827 - 7/25/79 O R D I N A N C E NO. 3559 AN ORDINANCE, repealing Ordinance No. 1679, as adopted October 30, 1967, and amended by Ordinance No. 1936, as adopted August 15, 1969, Ordinance No. 1984, as adopted January 2, 1970, Ordinance No. 2206, as adopted August 11, 1971, Ordinance No. 2621, as adopted July 31, 1974, and Ordinance No. 3111, as adopted July 28, 1976, and enacting a new ordinance in lieu thereof on the same subject, 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 the Plan of The Metropolitan St. Louis Sewer District, without, however, altering or extinguishing the legal relationships established by such ordinances; with an emergency clause. BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. Ordinance No. 1679, as adopted October 30, 1967, and amended by Ordinance No. 1936, as adopted August 15, 1969, Ordinance No. 1984, as adopted January 2, 1970, Ordinance No. 2206, as adopted August 11, 1971, Ordinance No. 2621, as adopted July 31, 1974, and Ordinance No. 3111, as adopted July 28, 1976, is hereby repealed, without, however, altering or extinguishing the legal relationships established by such 2 ordinances. Section Two. 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 3 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 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, Assistant Executive Director and General Counsel, Secretary- Treasurer, Director of Finance, Director of Wastewater-Treatment, Personnel Director, Director of Engineering, Director of Maintenance, Assistant Executive Director, Director of Legal Services, and Technical Adviser 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 4 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 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- discriminatory rules. 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. 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 5 (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 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. "Accrued Retirement Benefit", when used with respect to an individual Member, as of any specified date, means the sum of the Retirement Benefits, 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 1.17. "Committee" means the Pension Committee described in Article XI. Section 1.18. Masculine pronouns used in this Pension Plan shall be understood to refer to persons of either sex. 6 Section 1.19. "Pension Fund" means the total fund derived from the District appropriations, from any property given or donated from any source, and the income derived therefrom. Section 1.20. "Social Security Wage Base" means, with respect to any Plan year, the maximum amount of earnings which may be considered wages for such year under Section 3121 (a) (1) of the Internal Revenue Code. 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 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. 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 7 Continuous Service as determined under Section 1.9. 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 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. 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 3.2. Disposition of Contributions - 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 8 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 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, 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 9 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 (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 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 accrued during each Plan Year shall be equal to the sum of (i), (ii), and (iii) below: 10 (i)1% of the Member's Earnings for the Plan Year, plus (ii)1% of the Member's Earnings for the Plan Year which are in excess of the Social Security Wage Base in effect on January 1 of such year, plus (iii)1/2% of the Member's Earnings for the Plan Year if during the Plan Year, or during a previous year, he attained his 50th birthday (or if his 50th birthday is on or before December 31, 1967, for the year in which the Effective Date occurs and for each year thereafter). 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 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 before age 60, and reduced by 5/24 of 1% for each month by which such Member's Early Retirement Date precedes his Normal Retirement Date after age 60. 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 11 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. 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 7.1, elect an increased amount of monthly benefit of equal actuarial value payable monthly for his lifetime with the provisions 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 12 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 7.1, 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 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 13 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 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 of 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 14 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. (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 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 15 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 such Member may be paid at any time in a single lump sum or in such other manner as 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 After Retirement (A)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 16 his Retirement Date or Normal Retirement Date, no death benefits will be payable under this Section 7.1 (A) but benefits will be payable in accordance with the option which is in effect. (B)At the death of a Member who has retired from the service of the District after having completed at least ten years of Continuous Service at his Normal Retirement Date, or Early Retirement Date if applicable, a lump sum payment in the amount of $1,000.00 shall be payable to his Beneficiary. If the Member had completed less than ten years of Continuous Service upon retirement, the $1,000.00 payment shall be reduced in the ratio that his actual years of Continuous Service completed prior to attainment of age sixty-five years to 10. This lump sum benefit shall be in addition to any other benefits which might be payable under this Plan and shall only be payable to persons who retire from the service of the District under the provisions of Article V on or after August 1, 1974, and whose Normal Retirement Date occurs on or after August 1, 1974, or to persons who are terminated from the service of the District after attainment of age fifty-five and are eligible for vested benefits under Article X. This benefit shall not be payable to persons receiving benefits in accordance with the provisions of Article VIII or Article IX. 17 Section 7.2. 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, 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 my 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 18 of the Member's death. The Member shall be qualified if he met all of the following requirements on the date of his death. (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 widows 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 19 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 con- tracted, 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 coinciding with or next following a date six months after 20 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 9.1. 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 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 21 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. ARTICLE X BENEFITS ON TERMINATION OF EMPLOYMENT PRIOR TO RETIREMENT Section 10.1. Vested Termination - A Member terminated 22 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. 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. 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 23 the District. One member, appointed by the Chairman of the Board, shall be a St. Louis County member of the Board of Trustees of the District, and four members shall be the Executive Director, the Secretary-Treasurer, Assistant Executive Director and 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. 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 member 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 24 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 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. 25 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 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 12.1. The Board shall select 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 26 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. 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 insuf- ficient 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 27 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. 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, if not previously refunded. 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 28 earliest birth dates. Class IV - Finally, on a pro rata basis toward the satisfaction of the remaining liabilities with respect to other 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 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 29 provisions of Section 101 (a) of the Internal Revenue Code, as now or hereafter amended. In the event that the District is unable to 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, if not previously returned. 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 30 $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 described in this Section 14.1 in the following manner: To each such other Member in the ratio that the reserve liability 31 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 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 32 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 Section 16.1. Facility of Payment - If the District in good faith believes that (a) a person entitled to receive any pay- ment 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 33 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 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 34 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 Three. All Members of the Pension Plan who are Employees of the District On July 31, 1978 shall receive a refund of One Hundred Percent (100%) of their accumulated contributions to the Pension Fund. Section Four. 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 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 Five. The passage of this ordinance being deemed necessary for the immediate preservation of the public 35 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 July 26, 1978.