HomeMy Public PortalAbout07716 O R D I N A N C E NO. 7716
AN ORDINANCE, amending Section Two of Ordinance No.
4641, as adopted February 10, 1982, and amended by Ordinance No.
6303. adopted December 18, 1985, Ordinance 7342, adopted December
9, 1987, and Ordinance No. 7489, adopted June 22, 1988, by
amending Section Four 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, and amended by Ordinance No. 6303,
adopted December 18, 1985, Ordinance 7342, adopted December 9,
1987, and Ordinance No. 7489, adopted June 22, 1988 is hereby
amended by adding new Section 4.6 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 1 Definitions 3 II Eligibility and Participation 9 III Contributions 11 IV Retirement Benefits 12 V Benefits on Termination of Employment 17 VI Death Benefits 18 VII Payment of Retirement Benefits 21 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 39 XIII Miscellaneous Provisions 41
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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 Trustees. 1.6 Carriermeans any insurance company selected by the Board at any time to hold certain contributions towards the cost of the Pension P|an. or to provide certain benefits specified by the Pension Plan, under one (1) or more group annuity contracts. 1.7 Employeemeans any employee who is employed by the District on
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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 Membermeans any Employee or former Employee of the District who is covered under the Pension Plan in accordance with Article II hereof.
1.9 Continuous Servicemeans the period of time between an
employee 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
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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. and which is used to determine a Member's retirement benefit under Article IV. 1.11 Plan Yearmeans 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 Earningsmeans 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 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 Article VIII. 1.17 GenderMasculine 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 Means, with respect to any Plan Wage Base year, the maximum amount of Earnings which may be
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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 determination 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 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
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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. 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 no: 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 qualified 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
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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 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 the same level.
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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 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
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to his Postponed Retirement Date.
4.4 At Disability Retirement Date
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 on
longer disable, 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.
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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 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.
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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 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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4.6Notwithstanding any other contrary provision of the plan, in
calculating the accrued benefit (including the right to any
optional benefit provided under the plan) of any participant,
such participant shall accrue no additional benefit under the
plan on or after March 26, 1989, to the extent that such
additional benefit accrual exceeds the benefit which would
otherwise accrue in accordance with the terms of the plan as
subsequently amended to comply with those qualification
requirements described in Income Tax Regulations section
1.410(b)-1(b)(2)(ii)(TRA '86).
This provision shall be effective until the last day of the first
plan year commencing in 1989 and shall be effective for such
period if and only if the subsequent TRA '86 amendment is
made on or before the last day of the first plan year
commencing in 1989.
In addition the benefit accrued by any participant during the 1989
plan year shall in no event exceed the benefit accrual
provided during the 1989 plan year with respect to such
participant under the terms of the plan as subsequently
amended to comply with TRA '86.
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However, such participant's accrued benefit shall not be less than
what the participant had accrued as of the last day of the
last plan year beginning before January 1, 1989.
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.
5.2Vested 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
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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
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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 Retirement Date occurs on or after
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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 Member or to one
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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
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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.
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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
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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
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
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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
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:
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(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
Annuitant, if any, as though the Member had
retired the day before his death.
(F)Social Security Option - A Member who retires and whose
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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
all future benefits with respect to such Member may be paid
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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 shall be suspended upon reemployment of a
retiree, on a regular full time basis.
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,
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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
(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
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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,
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
8.1The 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
34
(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) 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
35
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
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 with 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.
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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 conclusive upon
each of them and upon all Members and their Beneficiaries and
Contingent Annuitants, if any.
37
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
38
to the control of, any investment manager previously
appointed hereunder, but the Trustee may follow the
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
39
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,
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
40
that such Funds, or amounts, or both shall suffice therefor.
41
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 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.
10.2If 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
42
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 1 - 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 birthdates.
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
43
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 nondiscriminatory 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)
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.
10.5The 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.
44
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:
45
(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 full effect and its full current costs have been
46
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
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.
47
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
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
48
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 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.
49
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 to ascertain the
whereabouts of any such person. If the District notifies any
50
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 fur-
nish 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
51
is essential for the operation of the District, and requires
enactment without delay, thus creating an emergency within the
meaning of the Plan. Accordingly, this Ordinance shall take
effect immediately upon its enactment. The foregoing Ordinance was adopted March 21, 1989.