HomeMy Public PortalAbout06303 O R D I N A N C E NO. 6303
AN ORDINANCE, amending Section Two of Ordinance No.
4641, as adopted February 10, 1982, by adding Section 7.6 and
Section 7.7 to the Pension Plan of the Metropolitan St. Louis
Sewer District, with an emergency clause.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. Section Two of Ordinance No. 4641, as
adopted February 10, 1982, is hereby amended by adding Section
7.6 and Section 7.7 to the Pension Plan of The Metropolitan St.
Louis Sewer District.
Section Two. Section Two of Ordinance No. 4641, as
hereby amended, shall read as follows:
"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
spouses 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:
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CONTENTS
Article Page
I Definitions 3
II Eligibility and Participation 8
III Contributions 10
IV Retirement Benefits 11
V Benefits on Termination of Employment 15
VI Death Benefits 16
VII Payment of Retirement Benefits 18 VIII Administration of the Pension Plan - Pension Committee 21
IX Management, Investment and Use of Funds 24
X Amendment or Termination of the Pension Plan 26
XI Special Termination Provisions 28
XII Limitations on Rights of Employees and Creditors 30
XIII Miscellaneous Provisions 31
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ARTICLE I
DEFINITIONS
The following words and phrases, when used hereafter in this
document, shall have the meanings set forth below:
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.
1.2 District means The Metropolitan St. Louis Sewer
District.
1.3 Board means the Board of Trustees of the District.
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
of a trust agreement, contributions
toward the cost of the Pension Plan and
the income therefrom.
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.
1.6 Carrier means any insurance company selected by the
Board at any time to hold certain
contributions towards the cost of the
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Pension Plan, or to provide certain
benefits specified by the Pension Plan,
under one (1) or more group annuity
contracts.
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.
Employees shall also include those
employees in the unclassified service,
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 one thousand (1,000) hours per
year shall be deemed to be employed on a
regular full-time permanent basis.
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.
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1.9 Continuous Servicemeans 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.
1.10 Credited Servicemeans that portion of an Employee's
Continuous service during which he is
both an Employee and a Member.
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.
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1.12 Earnings means the total base compensation paid to a
Member by the District during the Plan
Year (after the first Plan year, this is
the calendar year) excluding bonuses,
overtime, and any other additional forms
of compensation.
1.13 Beneficiary means any person designated in accordance
with Section 6.2 to receive certain
benefits payable hereunder on or after a
Member's death.
1.14 Retirement Datemeans 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. 1.15 Accrued
Retirement Benefitwhen used with respect to an individual
Member, as of any specified date, means
the sum of the Retirement Benefits, as
set forth in Article IV, payable to him
commencing at his Normal Retirement Date
based on his Credited Service and Final
Average Earnings, to the specified date.
1.16 Committee means the Pension Committee described in
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Article VIII.
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1.17 Gender Masculine pronouns used in this Pension Plan
shall be understood to refer to persons
of either sex.
1.18 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. 1.19 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. 1.20 Final
Average Earningsmeans the average of a Member's Earnings
over the five (5) Plan years preceding
the date as of which the average is
being determined. If the Member has
less than five (5) years of Credited
Service, then the average shall be
determined over the entire period of
Credited Service.
1.21 Covered Earningsmeans the amount of Earnings with respect to
which old age and survivors insurance
benefits would be provided for a Member
under the Social Security Act if for
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each year until he reaches age
sixty-five (65), his annual Earnings are
at least equal to the Social Security
Wage Base. 1.22 Normal
Retirement Datemeans the first day of the month coinciding
with ord next following his sixty-fifth
(65th) birthday, or May 1, 1968 if
later. 1.23 Early
Retirement Datemeans the first day of any month elected by
the Member following his termination of
employment, and which is after his
fifty-fifth (55th) birthday and
completion of ten (10) years of
Continuous Service, but not prior to May
1, 1968. 1.24 Postponed
Retirement Datemeans the first day of the month coincident
with or next following a Member's
termination of employment after his
Normal Retirement Date. A Member may
remain in service until the first day of
the month coinciding with or following
his seventieth (70th) birthday. 1.25 Disability
Retirement Datemeans the date that a Member incurs a
disability as defined in Section 4.5.
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ARTICLE II
ELIGIBILITY AND PARTICIPATION
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, following six (6) months of
service.
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.
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 for authorized
leaves shall be excluded from the Member's Credited Service
as determined under Section 1.10 but not from his Continuous
Service as determined under Section 1.9.
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
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Employee so long as he continues in the employ of the
District. He will receive Credited Service 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 reemployment rights under Federal or
other laws but shall be so terminated for purposed 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
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. There shall be no
contributions required or allowed from Members.
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 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
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contracts.
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3.3 Disposition of Forfeitures
Forfeitures of Accrued Benefits arising from terminating
non-vested Members shall not be used to increase the benefit
of any Member, but shall be used to reduce future District
contributions under the Plan.
ARTICLE IV
RETIREMENT BENEFITS
4.1 At Normal Retirement Date
The annual retirement benefit payable to a Member who retires on
his Normal Retirement Date on or after August 1, 1979 shall
be equal to the sum of (A) and (B), as follows:
(A)One and one-quarter percent (1-1/4%) of his Final Average
Earnings times the period in years and completed
twelfths of his Credited Service, plus
(B)One-half of one percent (1/2%) of his Final Average
Earnings which are in excess of the Covered Earnings
times the period in years and completed twelfths of his
Credited Service.
A member who reached his Normal Retirement Date prior to August
1, 1979 shall be entitled to the retirement benefits
provided by the Plan in effect on his Normal Retirement
Date. A Member reaching his Normal Retirement Date on or
after August 1, 1979 shall receive retirement benefits that
are not less than those he would have received if the Plan
provisions in effect on July 31, 1979 has continued without
change, and his rate of Earnings on July 31, 1979 had
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continued at the same level. A Member shall be fully vested
upon attainment of age 65.
4.2 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 prior to age sixty
(60), and reduced by 5/24 of 1% for each month by which such
Member's Early Retirement Date precedes his Normal
Retirement Date following age sixty (60).
4.3 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 Normal
Retirement Date, accumulated at an annual rate of interest
equal to four percent (4%) from the dates such payments
would have been made up to his Postponed Retirement Date.
4.4 At Disability Retirement Date
The annual disability benefit to a Member who has attained age
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forty (40), has at least ten (10) years of Continuous
Service, becomes disabled as defined in Section 4.5, and
qualifies for disability benefits under the Federal Social
Security Act, shall be his Accrued Retirement Benefit as of
his Disability Retirement Date. Payment of the disability
benefit shall commence on the first day of the month
coinciding with or next following a date six (6) months
after the Member's Disability Retirement Date. Payments
shall continue until the Member attains his Normal
Retirement Date, the date of death, or until the Committee
determines that the Member is no longer disabled, whichever
is earliest. In the event that the disability benefit
continues to the Member's Normal Retirement Date, it shall
thereupon cease, and the Member shall be retired on his
Normal Retirement Date and receive regular retirement
benefits based on his Accrued Retirement Benefit at his
Disability Retirement Date.
4.5 Conditions on Payment of Disability Benefits
A Member shall be deemed to be disabled for purposes of the Plan
only if the following conditions are satisfied:
(a)He has been disabled, through unavoidable cause, 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 is determined by a qualified physician
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selected by the District as being, in his opinion,
permanent.
The disability shall be deemed to have resulted from an
unavoidable cause unless:
(d)It was contracted, suffered or incurred while the Member
was engaged in, or it resulted from his having engaged
in, a felony, or
(e)It resulted from his habitual use of drugs, intoxicants,
or narcotics, or
(f)It resulted from a deliberately self-inflicted injury or
self-induced sickness, or
(g)It resulted from injury received or disease contracted in
service in the Armed Forces.
The Committee shall interpret and administer the disability
benefit conditions in a uniform manner so as to preclude any
individual selection or discrimination. The Committee may
require that a disabled Member undergo a medical examination
by a physician or clinic selected by the Committee at any
time prior to his Normal Retirement Date, but not more often
than semi-annually, to determine whether such Member is
eligible for continuation of his disability benefits. If on
the basis of any medical examination or other fact from any
and all sources, it is found that such Member is no longer
disabled as defined herein, his disability benefit shall
thereupon cease. If the disabled Member refuses to submit
to a medical examination, the Committee shall suspend
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disability benefits until such Member submits to a medical
examination. In the event of the reemployment as an
Employee of a disabled Member, he shall resume active
membership in the Plan as of the date of reemployment, with
Continuous Service credit for the period of disability but
with no Credited Service or accrual of retirement benefits
during such period. If the Member's disability benefits are
terminated prior to his Normal Retirement Date and he is not
re-employed by the District, the Member's rights to
benefits, if any shall be determined in accordance with the
provisions of the Plan as if he had terminated employment on
the date benefits ceased, but with no accrual of benefits
following the Disability Retirement Date.
ARTICLE V
BENEFITS ON TERMINATION OF EMPLOYMENT
5.1 Termination Prior to Ten Years
If a Member terminates employment with the District prior to his
Normal Retirement Date and prior to completing ten (10)
years of Continuous Service, there shall be no benefits
payable from the Plan to the Member. If such Member is later
reemployed, he must again satisfy the requirements of
Article II concerning participation, with no Credited
Service for his previous period of employment.
5.2 Vested Termination
If a Member terminates employment with the District other than by
death, retirement, or disability, after completing at least
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ten (10) years of Continuous Service, he shall be entitled
to a retirement benefit commencing on his Normal Retirement
Date in the amount of his Accrued Retirement Benefit at his
termination date. Such a Member may elect to have his
benefit commence after he attains age fifty-five (55), in
which case the benefit will be actuarially reduced. The
first monthly payment to such a terminated Member shall be
payable, if he is then living, beginning as of the later of:
(a) The Member's elected Retirement Date, or
(b)The first day of the month next following the date on
which the Committee receives the application.
ARTICLE VI
DEATH BENEFITS
6.1 Death After Retirement
(A)At the death of a Member, who has not made an election in
accordance with Article VII, on or after his Retirement
Date but before having received sixty (60) monthly
pension payments, the balance of such sixty (60)
monthly pension payments shall thereafter become
payable to his Beneficiary, under the normal form of
benefit payment specified in Section 7.1. If an option
elected under Section 7.2 has become effective on his
Retirement Date, no death benefits will be payable
under this Section 6.1 (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
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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 one thousand dollars
($1,000.00) shall be payable to his Beneficiary. If
the Member had completed less than ten years of
Continuous Service upon retirement, the one thousand
dollars ($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
(65) bears to ten. This lump sum benefit shall be in
addition to any other benefits which might by payable
under this Plan and shall only be payable to persons
who retire from the service of the District under the
provisions of Section 4.1, 4.2, or 4.3 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 (55) and are eligible for
vested benefits under Article V. This benefit shall
not be payable to persons receiving benefits in
accordance with the provisions of Sections 4.4 or 6.3.
6.2 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,
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whether original or subsequent, may be revoked and changed
from time to time, upon such forms and in such manner as may
be provided by the Committee without the consent of any
Beneficiary. Only one person may 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.
6.3 Spouse's Benefit
(A)The surviving spouse of any qualified Member shall be
eligible for a Spouse's Benefit commencing on the first
day of the month next following the date of the
Member's death. The Member shall be qualified if he
met all of the following requirements on the date of
his death.
(1)Member has completed at least ten years of
continuous service;
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(2) Member had attained his fortieth (40th) birthday;
(3)Member had been married to his spouse for at least
one year;
(4)Member had not attained his Normal Retirement Date;
(5)Member was an active Employee or a Member receiving
or eligible to receive Disability Benefits in
accordance with Section 4.4 on that date.
(B)The monthly amount of the spouse's benefit shall be equal
to fifty percent (50%) of one-twelfth of the Member's
Accrued Retirement Benefit determined as of the date of
his death, or fifty dollars ($50.00), if greater. Such
spouse's benefit shall be payable monthly to such
eligible spouse 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 spouse's death or (b) the first day of the month
immediately preceding the date of the spouse's
remarriage.
ARTICLE VII
PAYMENT OF RETIREMENT BENEFITS
7.1 Regular Basis
The retirement benefits provided for in Section 4.1, 4.2 and 4.3
hereof, whether payable commencing at Normal, Early or
Postponed Retirement Date, shall be payable in monthly
installments each equal to one-twelfth (1/12th) of the
annual amount to which a Member is entitled and shall
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terminate either: (1) with the monthly payment coinciding
with or next preceding the date of death of the Member, or
if later, (2) with the sixtieth (60th) monthly payment.
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7.2 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 Sections 4.1, 4.2 or
4.3 and the Death Benefit specified in Section 6.1,
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 Retirement Date.
(B)Beneficiary Forms - A Member may, in lieu of the normal
form of retirement 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
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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 fifty percent (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 (1) year before his Option Date, the Member
must furnish evidence of his good health satisfactory
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to the Committee for the election to be valid. A
Member may not elect the Contingent Annuitant Option of
the monthly payments to his Contingent Annuitant would
be less than ten dollars ($10) a month.
(E)Change of Election - 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 (1) 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 made under this Section 7.2 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
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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 sixty-two (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 sixty-two (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
sixty-two (62) shall be approximately 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.
7.3 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 ten dollars ($10.00), the actuarial equivalent of
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all future benefits with respect to 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.
7.4 Source of Benefit Payments
All benefit payments specified by this Plan will be made from a
Trust or by a Carrier.
7.5 Re-employment of Retirees
All benefit payments shall be suspended upon reemployment of a
retiree, on a regular full time basis.
7.6 Required Distribution
For Plan Years beginning after December 31, 1986, without regard
to any other provision hereof, the requirements of this
Section shall apply to the distribution of a Member's
benefit.
(A)No Member's election to receive benefits under this Plan
shall be effective unless pursuant to such election:
(1)Benefits will commence no later than the first day
of April following the calendar year.
(i)in which the Member attains age seventy and
one-half (70-1/2), or
(ii)terminates employment with the District,
whichever is later; and
(2)The Member's entire benefit shall be distributed by
the later of;
(i) the end of his life expectancy, or
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(ii)the end of the joint and last survivor life
expectancy of the Member and his designated
Beneficiary.
Life expectancies shall be determined initially as of the
date the Member terminates his employment with the
District or, if earlier, the date on which the benefit
begins to be paid and redetermined no more often than
annually thereafter. If the Member's spouse is not his
designated Beneficiary, the method of distribution
selected must assure that at least fifty percent (50%)
of the present value of the benefit is paid within the
life expectancy of the Member.
(B)If a Member dies after distribution of his benefit has
commenced, the remaining portion of his benefit shall
continue to be distributed at least as rapidly as under
the method of distribution applicable prior to the
Member's death.
(C)If a Member dies before distribution of his benefit
commences, the Member's entire benefit, if any, shall
be distributed within sixty (60) months after the
Member's death, provided, however, if any portion of
the Member's benefit is payable to a designated
Beneficiary, distributions may be made over the life
expectancy of such Beneficiary and shall commence no
later than one (1) year after the Member's death. If
the Beneficiary is the Member's surviving spouse,
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however, distribution shall begin no later than the
date on which the Member would have attained age
seventy and one-half (70-1/2).
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7.7 Actuarial Assumptions
For the Plan Year beginning January 1, 1985, and for each Plan
Year thereafter, any benefit paid under this Plan shall be
the actuarial equivalent of the normal form. For purposed
of determining actuarial equivalence, the following interest
and mortality assumptions shall be used:
(A) Seven percent (7%);
(B)1971 Group Annuity Mortality Table for Males, set back
one (1) year for males and six (6) years for
females,the resulting factor therefrom blended on a
50-50 basis for males and females.
ARTICLE VIII
ADMINISTRATION OF THE PENSION PLAN - THE PENSION COMMITTEE
8.1The 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, Earnings, Eligibility and Termination of
Membership with respect to any Member of the Pension Plan,
or his Beneficiary.
8.2The Pension Committee shall consist of eight (8) members; One
(1) member, appointed by the Chairman of the Board, shall be
a City of St. Louis member of the Board of Trustees of the
District. One (1) member, appointed by the Chairman of the
Board, shall be a St. Louis County member of the Board of
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Trustees of the District, and four (4) 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 (2) 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 (60)
days following November 1, 1967. The one (1) member elected
for a term expiring October 31, 1968, and one (1) member
elected for a term expiring October 31, 1969. The terms
thereafter shall be for two (2) years each commencing
November 1 of the respective year. Within ten (10) 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 members
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.
8.3The Pension Committee may adopt such rules governing its
32
action, and recommend the employment of 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.
8.4The 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.
8.5The 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.
8.6The 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 to 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
33
conclusive upon each of them and upon all Members and their
Beneficiaries and Contingent Annuitants, if any.
34
ARTICLE IX
MANAGEMENT, INVESTMENT AND USE OF FUNDS
9.1There 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.
9.2The 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.
9.3The Board may, from time to time, appoint one or more
investment managers to direct any Trustee or Trustees with
respect to all or a specified portion of the assets of the
Pension Fund held by the Trustee. Such appointment shall be
made by a resolution duly adopted by the Board and shall be
effective as of the date specified therein, but not before
it has been accepted in writing by the investment manager
and notice of such appointment and acceptance given to the
Trustee. The Board may remove, or change the assets subject
to the control of, any investment manager previously
appointed hereunder, by the Trustee may follow the
35
instructions of a properly appointed investment manager
until informed by the Board that such investment manager has
been removed or its authority over particular assets
changed. No person or firm may be appointed as an
investment manager unless he meets the requirements of
section 3(38) of the Employee Retirement Income Security Act
of 1974, P.L. 93-406, as amended.
9.4The Board may, from time to time, direct the Trustee to invest
a specified portion of the Pension Fund in a particular
asset or assets and, if so requested by the Trustee, shall
also specify the particular assets then held by the Trustee
to be disposed of in order to make the specified investment.
Upon receipt of such instruction or instructions from the
Board, the Trustee shall take Steps promptly to comply
therewith, and shall hold all assets acquired pursuant to
such instructions until specifically instructed by the
Board to dispose of the same, or, if the Board advises the
Trustee that the Board no longer instructs the Trustee to
hold such assets, until. such time as the Trustee in its own
discretion decides to dispose of the same.
9.5No 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.
9.6The Board shall select custodian of all books, records,
36
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 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.
9.7The 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 insufficient 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 X
AMENDMENT OR TERMINATION OF THE PENSION PLAN
10.1The 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
37
cause or permit any funds held by the Trustee or the Carrier
hereunder to be used for, or diverted to, purposed 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
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.
10.2If 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 5.2. 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
38
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 5.2 prior to the Pension Plan
termination date, giving preference to those Members with
the earliest birth dates.
Class IV - Finally, on a pro rata basis toward the satisfaction
of the remaining liabilities with respect to other Members.
10.3In the satisfaction of liabilities at termination date in
accordance with Section 10.2, 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 10.2.
10.4The 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 ninety (90)
39
days of such date a successor has agreed to accept the
responsibilities of the District hereunder;
40
(b)Any other date specified in a notice executed and
delivered at least sixty (60) days in advance of such
date by the District to the Trustee or Trustees and/or
Carrier or Carriers.
10.5The 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.
ARTICLE XI
SPECIAL TERMINATION PROVISIONS
11.1 (A)If the Pension Plan is terminated or the full current
costs thereof are not met at any time prior to August
1, 1989, (or, if the full current costs are not met on
August 1, 1989, 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 who was one of the twenty-five (25)
highest-paid Employees as of August 1, 1989, and whose
normal annual retirement benefit from the Plan will
exceed $1,500, shall not exceed the larger of the
following amounts:
(1)The portion of the Plan's assets which would have
been applied to provide benefits for such Member
if the Plan in effect prior to August 1, 1979 had
41
been continued without change, or
(2) $20,000, or
(3) The sum of (a) and (b) below:
(a)The portion of the Plan's assets which would
have been applied to provide benefits for
such Member if the Plan had been terminated
on July 31, 1979, and
(b)An amount Computed by multiplying the number of
years for which full current Costs of the
Plan are met after August 1, 1979 by (1) 20%
of such Member's average annual Compensation
for the five (5) preceding years, or (2)
$10,000, whichever is smaller.
(B)If a Member described in this Section 11.1 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
August 1, 1989, 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
42
full effect and its full current costs have been met.
43
(E)In the event of termination of the Pension Plan prior to
August 1, 1989, distribution to the unretired Member
other than the Members described in this Section 11.1
shall include and equitable apportionment among such
other Members of all excess benefits provided by the
District contributions for the Members described in
this Section 11.1 in the following manner: To each
such other Member in the ratio that the reserve
liability then attributable to him bears to the total
reserve liability for all such other Members under the
Pension Plan.
11.2The restrictions imposed by the provisions of this Article XI
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 XI are no
longer necessary to qualify the Pension Plan under the
Internal Revenue Code, this Article XI shall become
inoperative without the necessity of further amendment.
ARTICLE XII
LIMITATIONS ON RIGHTS OF EMPLOYEES AND CREDITORS
12.1Participation 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
44
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.
12.2No benefit, which shall be payable under the Pension Plan to
any person, shall be subject in any manner to 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.
12.3If 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
45
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 XIII
MISCELLANEOUS PROVISIONS
13.1 Facility of Payment
If the District in good faith believes that (a) a person entitled
to receive any payment under the Pension Plan is physically
or mentally incompetent to receive such payment and to given
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 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.
13.2 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 and Trustee, the Carrier, nor the
46
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 (2)
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.
13.3 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 Carriers; and
it shall be an 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. The passage of this Ordinance being
deemed necessary for the immediate preservation of the public
47
health, safety and welfare creates an emergency within the
meaning of the Plan. Accordingly, this Ordinance shall take
effect immediately upon its enactment.
48
The foregoing Ordinance was adopted December 18, 1985.