HomeMy Public PortalAbout07489 O R D I N A N C E NO. 7489
AN ORDINANCE, amending Section Two of Ordinance No. 4641,
as adopted February 10, 1982, amended by Ordinance No. 6303,
adopted December 18, 1985, and Ordinance No. 7342, adopted December
9, 1987, by amending Sections 1.20, 4.4 and 6.1 of 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, amended by Ordinance No. 6303, adopted
December 18, 1985, and Ordinance No. 7342, adopted December 9,
1987, is hereby amended by amending Sections 1.20, 4.4 and 6.1 of
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 16
VI Death Benefits 17
VII Payment of Retirement Benefits 20
VIII Administration of the Pension Plan -
Pension Committee 28
IX Management, Investment and Use of Funds 31
X Amendment or Termination of the Pension Plan 34
XI Special Termination Provisions 37
XII Limitations on Rights of Employees and Creditors 40
XIII Miscellaneous Provisions 42
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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
contributionstowards the cost of
the Pension Plan, or to provide
certain benefits specified by the
Pension Plan, under one (1) or
4
more groupannuity contracts.
5
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.
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.
1.10 Credited Service means that portion of an
Employee's Continuous Service
during which he is both an
Employee and a Member, and which
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is used to determine a Member's
retirement benefit under Article
IV.
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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.
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 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.
1.15 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 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 Article VIII.
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
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the District appropriations, from
any property given or donated from
any source, and the income derived
therefrom.
1.19 Social Security Means, with respect to any Plan
Wage Base 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 Effective January 1, 1989, Final
Earnings Average Earnings
means the sum of "X" and "Y"
divided by five (5) where:
"X" equals the Member's Earnings
during the highest five
consecutive years within the last
ten (10) years prior to the det-
ermination date; and
"Y" equals one percent (1%) of the
Member's accrued and unused sick
leave multiplied by the Member's
years of Credited Service as of
the determination date.
For the purposes of this
computation, "Y" shall equal zero
if the Member has not attained age
fifty-five (55) and completed five
(5) years of Continuous Service.
1.21 Covered Earnings means 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 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 Date means the first day of the month
coinciding with or next following
his sixty-fifth (65th) birthday,
or May 1, 1968 if later.
1.23 Early Retirement Date means the first day of any month
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elected by the Member following
his termination of employment, and
which is after his fifty-fifth
(55th) birthday and completion of
five (5) years of Continuous
Service, but not prior to May 1,
1968.
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1.24 Postponed Retirement
Date means the first day of the month
coincident with or next following
a Member's termination of em-
ployment after his Normal
Retirement Date.
1.25 Disability Retirement
Date means 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.
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2.4 Termination of Participation
Each Member shall remain a Member until the earlier of
his death on 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 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 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.
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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 contracts.
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.
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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 per cent (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 per cent (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 had continued without change, and
his rate of Earnings on July 31, 1979 had continued at .he
same level. A Member shall be fully vested upon attainment of
age 65.
4.2 At Early Retirement Date
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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 if earlier, after completion of five (5)
years of Continuous Service, 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 per
cent (4%) from the date such payments would have been made up
to his Postponed Retirement Date.
4.4 At Disability Retirement Date
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The annual disability benefit to a Member who has at least
five (5) 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 equal to the
greater of (i) his Accrued Retirement Benefit as of his
Disability Retirement Date, and (ii) twenty percent (20%) of
his Earnings. 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 continues to the Member's Normal Retirement Date,
that portion of the Member's disability benefit that does not
exceed the Member's accrued retirement benefit shall thereupon
cease, and the Member shall be retired on his Normal
Retirement Date and receive regular retirement benefits based
on the greater of (i) his Accrued Retirement Benefit at his
Disability Retirement Date, and (ii) his disability benefit as
determined hereunder.
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:
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(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
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
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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 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
reemployed 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.
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ARTICLE V
BENEFITS ON TERMINATION OF EMPLOYMENT
5.1 Termination Prior to Five Years
If a Member terminates employment with the District prior
to his Normal Retirement Date and prior to completing
five (5) years of Continuous Service, there shall be no
benefits payable from the Plan to the Member. If such
Member is later re-employed, 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 five (5) 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 as of his termination date.
Such a Member may elect to have his Accrued Benefit
commence after he attains age fifty-five (55) in which
case his benefit shall be reduced as provided in Section
4.2. 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
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(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
of the District after attaining his Normal Retirement
Date, or Early Retirement Date if applicable, a lump sum
payment in the amount of five thousand dollars
($5,000.00) shall be payable to his Beneficiary. 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 Section 4.1, 4.2, or
4.3 on or after August 1, 1974, and whose Normal
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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, 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
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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;
(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
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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.
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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 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.
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.
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(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 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
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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 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 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
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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 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
28
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 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 all
future benefits with respect to such Member may be paid at any
29
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
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distributed by the later of:
(i) the end of his life expectancy, or
(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
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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, however, distribution shall begin
no later than the date on which the Member would
have attained age seventy and one-half (70-1/2).
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 purposes 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.
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ARTICLE VIII
ADMINISTRATION OF THE PENSION PLAN - THE PENSION COMMITTEE
8.1 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, Earnings, Eligibility and Termination of
Membership with respect to any Member of the Pension Plan, or
his Beneficiary.
8.2 The 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
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)
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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 for 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.
8.3 The Pension Committee may adopt such rules governing its 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.
8.4 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
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consistent in order to avoid any prohibited discrimination
during the operation for the Pension Plan. Any Employee or
Beneficiary aggrieved by any decision of the Pension Committee
may appeal its decision to the Board.
8.5 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.
8.6 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 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 conclusive upon each of them and upon all
Members and their Beneficiaries and Contingent Annuitants, if
any.
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ARTICLE IX
MANAGEMENT, INVESTMENT AND USE OF FUNDS
9.1 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.
9.2 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.
9.3 The 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 no 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, but the Trustee may follow the
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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.
9.4 The 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.
9.5 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.
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9.6 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 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.
9.7 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 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.
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ARTICLE X
AMENDMENT OR TERMINATION OF THE PENSION PLAN
10.1 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 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.
10.2 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,
39
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 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, in a pro rata basis toward the
satisfaction of the remaining liabilities with respect to
other Members.
10.3 In 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
40
in any other manner which will be a consistent and non-
discriminatory manner carry out the intent of Section 10.2.
10.4 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 ninety (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 sixty (60) days in advance of such date
by the District to the Trustee or Trustees and/or Carrier
or Carriers.
10.5 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 provisions of Section
401 (a) of the Internal Revenue code, as now or hereafter
amended.
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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
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
42
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 full effect and
its full current costs have been met.
(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
an 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
43
reserve liability for all such other Members under the
Pension Plan.
11.2 The 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.
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ARTICLE XII
LIMITATIONS ON RIGHTS OF EMPLOYEES AND CREDITORS
12.1 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.
12.2 No 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.
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12.3 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.
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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 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 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
the Trustee, the Carrier, nor the District shall be obliged to
search for or 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
47
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 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. The Pension Plan as hereby prescribed is
essential for the operation of the District, and requires enactment
without delay, thus creating an emergency within the meaning of the
48
Plan. Accordingly, this Ordinance shall take effect immediately upon
its enactment.
The foregoing Ordinance was adopted June 22, 1988.