HomeMy Public PortalAbout08538REPEALED BY #8858 - 1/19/93 O R D I N A N C E NO. 8538
AN ORDINANCE, repealing Ordinance No. 4641, as adopted
February 10, 1982, and amended by Ordinance No. 6303 adopted
December 18, 1985, Ordinance No. 7342 adopted December 9, 1987,
Ordinance No. 7489 adopted June 22, 1988, Ordinance No. 7716
adopted March 21, 1989, and Ordinance No. 7942 adopted November 8,
1989, and enacting a new ordinance in lieu thereof establishing a
retirement system 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.
BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. Ordinance No. 4641, as adopted
February 10, 1982, and amended by Ordinance No. 6303 adopted
December 18, 1985, Ordinance No. 7342 adopted December 9, 1987,
Ordinance No. 7489 adopted June 22, 1988, Ordinance No. 7716
adopted March 21, 1989, and Ordinance No. 7942 adopted November 8,
1989 is hereby repealed, without, however altering or
extinguishing the legal relationships established by such
Ordinance.
Section Two. The post retirement increase in pension
benefits as provided in Section 7.6 of the Pension Plan, which is
contained in Section Three of this Ordinance, shall be annually
reviewed by the Board of Trustees in the fourth quarter of each
calendar year beginning in 1990. The purpose of such annual
review shall be to determine if an adjustment in such post
retirement benefit increases is appropriate taking into
consideration all of the relevant facts and circumstances
applicable to both the Pension Plan and the District.
Section Three. 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. Unless otherwise provided
thereinafter, the provisions of said Pension Plan shall apply to
employees who terminate their employment at the District during
the Plan year beginning January 1, 1992 or subsequent Plan Years.
Said Pension Plan shall read as follows:
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
EMPLOYEES' PENSION PLAN
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CONTENTS ARTICLE I DEFINITIONS ......................................... 1 1.1 "Accrued Retirement Benefit" ........................ 1 1.2 "Alternative Retirement Date" ....................... 1 1.3 "Beneficiary" ....................................... 1 1.4 "Board" ............................................. 2 1.5 "Carrier" ........................................... 2 1.6 "Claims Appeal Reviewer" ............................ 2 1.7 "Claims Processor" .................................. 2 1.8 "Code" .............................................. 2 1.9 "Covered Earnings" .................................. 2 1.10 "Continuous Service" ................................ 3 1.11 "Credited Service" .................................. 3 1.12 "Disability Retirement Date" ........................ 3 1.13 "District" .......................................... 3 1.14 "Early Retirement Date" ............................. 3 1.15 "Earnings" .......................................... 4 1.16 "Employee" .......................................... 4 1.17 "Employer" .......................................... 4 1.18 "Final Average Earnings" ............................ 4 1.19 "Investment Manager" ................................ 5 1.20 "Member" ............................................ 5 1.21 "Normal Retirement Date" ............................ 5 1.22 "Option Date" ....................................... 5 1.23 "Pension Committee" ................................. 5 1.24 "Pension Fund" ...................................... 6 1.25 "Pension Plan" ...................................... 6 1.26 "Plan Administrator" ................................ 6 1.27 "Plan Year" ......................................... 6 1.28 "Postponed Retirement Date" ......................... 6 1.29 "Required Beginning Date" ........................... 6 1.30 "Retirement Date" ................................... 6 1.31 "Separation From Service" ........................... 6 1.32 "Social Security Wage Base" ......................... 7 1.33 "Trust Agreement" ................................... 7 1.34 "Trustee" ........................................... 7 1.35 "Vested Member" ..................................... 7 ARTICLE II ELIGIBILITY AND PARTICIPATION ...................... 7 2.1 Eligibility ......................................... 7 2.2 Termination of Participation ........................ 7 ARTICLE III CONTRIBUTIONS ..................................... 8 3.1 District Contributions .............................. 8 3.2 Funding of Liabilities .............................. 8
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3.3 Return of Employer Contributions .................... 8 3.4 Forfeitures ......................................... 9 ARTICLE IV RETIREMENT BENEFITS ................................ 9 4.1 At Normal Retirement Date ........................... 9 4.2 Early Retirement Benefit ............................ 9 4.3 At Postponed Retirement Date ........................ 10 4.4 At Disability Retirement Date ....................... 10 4.5 Conditions on Payment of Disability Benefits ........ 11 4.6 Maximum Retirement Income ........................... 13 4.7 Accrued Retirement Benefit Under Prior Plan ......... 13 ARTICLE V BENEFITS ON TERMINATION OF EMPLOYMENT ............... 13 ARTICLE VI DEATH BENEFIT ...................................... 14 6.1 Death of a Vested Terminated Member ................. 14 6.2 Death of a Vested Active Member ..................... 15 6.3 Death of a Member After Retirement .................. 16 6.4 Payment Provisions .................................. 16 ARTICLE VII PAYMENT OF RETIREMENT BENEFITS .................... 17 7.1 Normal Form of Payment .............................. 17 7.2 Optional Forms of Payment ........................... 17 7.3 Small Benefits ...................................... 18 7.4 Election of Optional Form of Payment ................ 19 7.5 Required Distribution ............................... 20 7.6 Post Retirement Increase in Benefits ................ 22 ARTICLE VIII ADMINISTRATION OF THE PENSION PLAN ............... 23 8.1 Duties and Membership of Pension Committee .......... 23 8.2 Plan Administration ................................. 24 8.3 Claim Decision ...................................... 27 8.4 Request For Review .................................. 28 8.5 Review of Decision .................................. 28 ARTICLE IX MANAGEMENT, INVESTMENT AND USE OF FUNDS ............ 29 9.1 Investment of Pension Fund .......................... 29 9.2 Investment Manager .................................. 29 9.3 Authority of Board .................................. 30 ARTICLE X AMENDMENT OR TERMINATION OF THE PENSION PLAN ........ 30 ARTICLE XI MISCELLANEOUS PROVISIONS ........................... 31 11.1 Members' Rights ..................................... 31 11.2 Spendthrift Provisions .............................. 32
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11.3 Incapacity .......................................... 32 11.4 Administration of the Plan .......................... 32 11.5 Suspension of Benefits Upon Reemployment ............ 33 11.6 Trust Sole Source of Benefits ....................... 34 11.7 Actuarial Assumptions ............................... 34 11.8 Notice of Address ................................... 34 11.9 Furnishing Data ..................................... 35
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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 "Accrued Retirement Benefit" means the sum of a
Member's retirement benefits based on his Credited Service and
Final Average Earnings, to the determination date as set forth in
Article IV and payable to him commencing on his Normal Retirement
Date.
1.2 "Alternative Retirement Date" means the first day
of the month following the date on which a Member both attains age
sixty (60) and completes thirty (30) years of Continuous Service.
1.3 "Beneficiary" means the Member's spouse or if
(a) there is no spouse who survives the Member or (b) such spouse
has consented in a writing which is properly witnessed and is in a
form which acknowledges the effect of such consent for the Member
to name another Beneficiary (or such spouse is not required to
consent), the person or legal entity named by a Member in
accordance with procedures established by the Plan Administrator
to receive any payments payable under the Plan in the event of the
death of the Member. In the manner and within the limits
prescribed by the Plan Administrator, and subject to the rights of
a spouse as described above, a Member may designate more than one
Beneficiary to share a benefit or to receive a benefit if one or
more other Beneficiaries should die before such benefit becomes
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payable. Except as otherwise provided herein, if no Beneficiary
is named, or if no named Beneficiary is living or in existence at
the time a benefit is payable, the estate of the deceased Member
shall be the Beneficiary. Subject to the rights of a spouse
described above, a Member may change or revoke a Beneficiary
designation at any time without the consent of the Beneficiary, by
filing with Plan Administrator a new Beneficiary designation. Any
change of Beneficiary designation shall revoke all prior
Beneficiary designations made by the Member.
1.4 "Board" means the Board of Trustees of the
District.
1.5 "Carrier" means any insurance company which issues
insurance or annuity contracts to fund retirement benefits under
the Pension Plan.
1.6 "Claims Appeal Reviewer" means a subcommittee of
the Board of Trustees as designated by the Board of Trustees to
review benefit entitlement claims under the Pension Plan.
1.7 "Claims Processor" means the Plan Administrator.
1.8 "Code" means the Internal Revenue Code of 1986, as
amended.
1.9 "Covered Earnings" means the average of the Social
Security Wage Bases for each calendar year during the thirty-five
(35) year period ending with the last day of the calendar year in
which the Member attains Social Security retirement age (as
defined in Code Section 415(b)(8)). The Social Security Wage Base
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for the current calendar year and any subsequent year shall be
assumed to be the same as the Social Security Wage Base in effect
as of the beginning of the year for which the determination is
being made.
1.10 "Continuous Service" means service with the
Employer commencing on the date on which the Employee first
performs service for the Employer and ending on the determination
date. Continuous Service shall include authorized leaves of
absence, (including those periods during which the Employee
receives workers compensation benefits), military service
(provided the Employee retains his/her re-employment rights) or
any other absence which does not constitute a termination of
employment under the District's Civil Service Rules and
Regulations.
1.11 "Credited Service" means service with the Employer
commencing on the date on which the Employee first performs
service for the Employer and ending on the determination date.
Credited Service shall include those periods during which (i) the
Employee receives worker's compensation benefits or (ii) the
Employee is on leave on account of military service, provided the
Employee retains his/her reemployment rights. Credited Service,
however, shall not include any other periods during which the
Employee is on an authorized leave of absence.
1.12 "Disability Retirement Date" means the date on
which a Member incurs a disability as defined in Section 4.5.
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1.13 "District" means The Metropolitan St. Louis Sewer
District.
1.14 "Early Retirement Date" means the first day of any
month selected by the Member following his termination of
employment on which benefits commence, provided the Member has
attained his fifty-fifth (55th) birthday and has completed
five (5) years of Continuous Service.
1.15 "Earnings" means the total base remuneration
received by the Member from the Employer for services rendered,
excluding bonuses, overtime and any other form of additional
compensation, determined without regard to salary reduction
amounts contributed by the Member to plans or arrangements
described in Code Section 125 or 457. For Plan Years beginning on
or after January 1, 1989, Earnings in excess of the amount
specified in Code Section 401(a)(17) shall be disregarded and the
aggregation rules of Code Section 414(q)(6) shall apply.
1.16 "Employee" means an individual in the employment
of the Employer.
1.17 "Employer" means the District.
1.18 "Final Average Earnings" means the sum of (a) and
(b) divided by five (5) where:
(a) means the Member's Earnings during the highest
five (5) consecutive years within the last ten (10) years of
the Member's compensation history ending on the determination
date which produce the highest average annual Earnings; and
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(b) means 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. If the Member
has not attained age fifty-five (55) and completed five (5)
years of Continuous Service as of the determination date, (b)
shall equal zero (0).
For purposes of this computation, if a Member has less than five
(5) years of Credited Service, that Member's Final Average
Earnings shall equal his total Earnings during such period divided
by his number of years of Credited Service as of the determination
date.
1.19 "Investment Manager" means any fiduciary (other
than a trustee or named fiduciary) (A) who has the power to
manage, acquire or dispose of any asset of the Plan; (B) who is
(i) registered as an investment adviser under the Investment
Advisors Act of 1940; (ii) is a bank or (iii) is an insurance
company qualified to perform services described in (A) under the
laws of more than one state; and (C) has acknowledged in writing
that he is a fiduciary with respect to the Plan.
1.20 "Member" means any Employee or former Employee of
the District who satisfies the participation provisions of Article
II hereof.
1.21 "Normal Retirement Date" means the first day of
the month coinciding with or next following a Member's sixty-fifth
(65th) birthday.
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1.22 "Option Date" means the day selected by the Member
on which retirement benefits are to commence.
1.23 "Pension Committee" means the committee consisting
of the following eight (8) persons: two member appointed by the
Chairman of the Board, one of whom is a member of the Board of
Trustees from the City of St. Louis and one of whom is a member of
the Board of Trustees from St. Louis County. In addition, the
Executive Director, Secretary-Treasurer, General Counsel, the
Director of Finance and two elected members as provided in Section
8 shall be members of the Pension Committee.
1.24 "Pension Fund" means the trust established under
this Plan to which contributions are made by the Employer to pay
retirement benefits to Members.
1.25 "Pension Plan" means The Metropolitan St. Louis
Sewer District Employees' Plan, initially effective as of
November 1, 1967, as set forth herein and as it may be amended
from time to time.
1.26 "Plan Administrator" means the Pension Committee.
1.27 "Plan Year" means the period beginning on
January 1 and ending on the following December 31.
1.28 "Postponed Retirement Date" means the first day of
the month coincident with or next following a Member's termination
of employment after his Normal Retirement Date.
1.29 "Required Beginning Date" means the date described
in Section 7.5(A).
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1.30 "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.
1.31 "Separation From Service" means a severance of the
Employer-Employee relationship with the Employer because of
resignation or discharge.
1.32 "Social Security Wage Base" means, with respect to
any Plan year, the maximum amount of Earnings which may be
considered wages for such year under Code Section 3121 (a)(1).
1.33 "Trust Agreement" means any trust agreement made
and entered into by and between the District and a Trustee with
respect to the Pension Fund.
1.34 "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 made by the District to fund
retirement benefits for Members of this Plan.
1.35 "Vested Member" means a Member with five (5) years
of Continuous Service.
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ARTICLE II
ELIGIBILITY AND PARTICIPATION
2.1 Eligibility. On and after January 1, 1990, an
Employee shall become a Member of the Plan on the first day on
which he performs an hour of service for the Employer.
2.2 Termination of Participation. Each Member shall
remain a Member until the earlier of his death or termination of
employment with the District. He shall receive Continuous Service
credit only for such periods during which he is employed by the
District. 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.
ARTICLE III
CONTRIBUTIONS
3.1 District Contributions. From time to time, the
District shall contribute to the Pension Plan such sums as are
considered necessary by the District, on the basis of actuarial
calculations, to carry out the purpose of the Pension Plan. A
Member shall not be permitted or required to make contributions to
the Plan.
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3.2 Funding of Liabilities. The Employer may fund its
liabilities under this Plan by making contributions to the Trustee
of the Trust established in connection with the Pension Plan or by
paying the premiums on any insurance or annuity contract in an
amount sufficient to satisfy reasonable funding standards.
3.3 Return of Employer Contributions. Amounts
contributed by the Employer shall be returned to the Employer if a
contribution was made by the Employer by mistake of fact. The
excess of the amount of such contribution over the amount which
would have been contributed had there been no mistake of fact
shall be returned to the Employer within one year after the
payment of the contribution. Earnings attributable to such
contribution shall not be returned to the Employer, but losses
attributable to such contribution shall reduce the amount to be
returned to the Employer.
3.4 Forfeitures. Forfeitures which arise on account
of the Separation From Service of a non-vested Member shall be
used to reduce future District contributions under the Plan.
ARTICLE IV
RETIREMENT BENEFITS
4.1 At Normal Retirement Date. The annual retirement
benefit payable to a Member who retires on his Normal Retirement
Date on or after January 1, 1990, shall be equal to the sum of (A)
and (B) where:
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(A) means one and thirty-five hundredths percent
(1.35%) of Final Average Earnings times the period in years
and completed twelfths of his Credited Service, and
(B) means forty hundredths of one percent (.40%) 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, not to exceed thirty-five (35) years.
4.2 Early Retirement Benefit. In the case of a Member
who becomes eligible for an early retirement benefit, has attained
his Alternate Retirement Date and separates from service with the
Employer on or after January 1, 1990, the annual retirement
benefit payable to such Member shall be equal to his Accrued
Retirement Benefit as of his Early Retirement Date. If such
Member has not attained his Alternate Retirement Date as of his
Early Retirement Date, his Accrued Retirement Benefit shall be
reduced by five-twelfths (5/12) of one percent (1%) for each month
by which such Member's Early Retirement Date precedes the earlier
of his Normal Retirement Date and his Alternate Retirement Date,
if such month is prior to age sixty (60) and reduced by five
twenty-fourths (5/24) of one percent (1%) for each month between
such Member's Early Retirement Date and the earlier of his Normal
Retirement Date and his Alternate Retirement Date, if such month
is after the attainment of age sixty (60).
4.3 At Postponed Retirement Date. The annual
retirement benefit payable to a Member who retires on a Postponed
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Retirement Date shall be equal to the greater of (i) the amount
determined under Section 4.1 as of his Postponed Retirement Date
and (ii) an amount equal to the sum of the amount payable on his
Normal Retirement Date plus the actuarial equivalent of the lump
sum value of the monthly benefit payments which he would have
received prior to the Postponed Retirement Date (using the benefit
formula in effect on the Postponed Retirement Date), accumulated
at an annual rate of interest equal to four percent (4%) from the
date such payments would have been made (had he retired at his
Normal Retirement Date) up 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 Social
Security Disability award 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 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 a Member's
disability continues to the Member's Normal Retirement Date, the
Member shall continue to receive the same benefit as determined
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hereinabove as a normal retirement benefit; provided, however,
such normal retirement benefit shall then become subject to the
optional forms of payment as provided in Section 7.2.
4.5 Conditions on Payment of Disability Benefits. A
Member shall be deemed to be disabled if the following conditions
are satisfied:
(A) He has been disabled, through unavoidable cause,
by illness or injury and for that reason is incapable of
carrying on the duties of any occupation;
(B) Such disability shall have continued for a period
of at least six (6) consecutive months; and
(C) Such disability is determined to be permanent by a
qualified physician selected by the District.
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 Pension Committee shall interpret and administer
this Section in a uniform manner so as to preclude any
individual selection or discrimination. The Pension
Committee may require that a disabled Member undergo a
medical examination by a physician or clinic selected by the
Pension Committee at anytime 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 Pension Committee shall suspend disability benefits until
such Member submits to a medical examination. In the event
of the reemployment of a disabled Member, he shall resume
active membership in the Plan as of the date of reemployment;
provided, however, he shall not accrue any retirement
benefits during such period while he is receiving disability
benefits. 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 right 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
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cease, but with no accrual of benefits following the
Disability Retirement Date.
4.6 Maximum Retirement Income. Without regard to any
contrary provision of the Plan, the maximum retirement income
computed under this Article IV shall not exceed the benefit
limitation provided in Code Section 415 and the Income Tax
Regulations issued thereunder.
4.7 Accrued Retirement Benefit Under Prior Plan.
Without regard to any contrary provision of this Plan the Accrued
Retirement Benefit of each Member who was a participant on the day
prior to the effective date of the restatement of this Plan, shall
not be less than the Accrued Retirement Benefit on such day before
the restatement.
ARTICLE V
BENEFITS ON TERMINATION OF EMPLOYMENT
5.1 If a Member terminates employment with the
Employer prior to his Normal Retirement Date and prior to
completing five (5) years of Continuous Service, he shall not be
entitled to a benefit under the Plan. If such Member is later
reemployed, he shall recommence participation in the Plan on the
first day on which he performs an hour of service for the
Employer. In addition, the Credited Service and Continuous
Service of such reemployed Employee shall include all years of
Credited Service and Continuous Services, respectively, which were
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earned prior to his termination of employment, and credit for
each, respectively, shall be aggregated for purposes of
determining a Member's Accrued Retirement Benefit.
5.2 If a Member terminates employment with the
District for reasons other than death, disability or retirement
after completing five (5) years of Continuous Service he shall be
entitled to a retirement benefit commencing on his Early
Retirement Date or his Normal Retirement Date, such benefit to be
determined according to the provisions of Sections 4.1 and 4.2,
and payable according to the optional forms of distribution and in
the manner described in Article VII.
ARTICLE VI
DEATH BENEFIT
6.1 Death of a Vested Terminated Member. In the event
of the death of a Vested Member who had a Separation From Service
prior to (i) receiving a retirement benefit under this Plan or
(ii) becoming disabled, a monthly benefit equal to the greater of
fifty percent (50%) of one-twelfth (1/12) of the Member's Accrued
Retirement Benefit determined as of the date on which he had a
Separation From Service or fifty dollars ($50.00) shall be paid to
his Beneficiary commencing on the first day of the month next
following the date of such former Member's death. If the
Beneficiary is the Member's surviving spouse, the survivor's
benefit shall be payable monthly to a Member's spouse for life,
with the final monthly payment to be made on the first day of the
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month immediately preceding or coinciding with the date of such
spouse's death. If the Beneficiary is not the Member's surviving
spouse, the survivor's benefit shall be paid monthly to the
Member's Beneficiary for sixty (60) monthly payments.
6.2 Death of a Vested Active Member.
(A) The Beneficiary of any qualified Member shall be
eligible for a survivor's benefit commencing on the first day of
the month next following the date of the Member's death. The
Member's Beneficiary shall be eligible for this benefit if the
Member satisfied all of the following requirements on the date of
his death:
(1) Member has completed at least five (5) years
of Continuous Service;
(2) Member has not attained his Normal Retirement
Date; and
(3) Member was an active Employee or a Member
receiving or eligible to receive a disability benefit
under Section 4.4.
(B) The monthly amount of the survivor's benefit shall
be equal to fifty percent (50%) of one-twelfth (1/12) of the
Member's Accrued Retirement Benefit determined as of the date of
his death, or fifty dollars ($50.00), if greater. If the
Beneficiary is the Member's surviving spouse, the survivor's
benefit shall be payable monthly to a Member's spouse for life,
with the final monthly payment to be made on the first day of the
month immediately preceding or coinciding with the date of such
spouse's death. If the Beneficiary is not the Member's surviving
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spouse, the survivor's benefit shall be paid monthly to the
Member's Beneficiary for sixty (60) monthly payments.
6.3 Death of a Member After Retirement.
(A) In the event of the death of a Member, who has not
elected to receive an optional form of payment in accordance with
Article VII, and who dies on or after his Retirement Date but
before having received sixty (60) monthly pension payments, the
balance of such (60) monthly pension payments shall be paid to his
Beneficiary in monthly installments. If an optional form of
payment was elected under Section 7.2, no death benefit will be
payable under this Section 6.3 (A), but benefits will be payable
in accordance with the optional form of payment 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) shall be paid to his
Beneficiary. This lump sum benefit shall be in addition to any
other benefit which is payable under this Plan, but shall not be
paid to a Member receiving a disability benefit or to a Member's
Beneficiary who is receiving a benefit under Section 6.2.
6.4 Payment Provisions. The death benefit provided
for by this Article VI shall apply only to those Members or former
Members who die after January 1, 1992.
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ARTICLE VII
PAYMENT OF RETIREMENT BENEFITS
7.1 Normal Form of Payment. A Member's Accrued
Retirement Benefit, whether payable commencing at his Normal,
Early or Postponed Retirement Date, shall be payable in equal
monthly installments for the period beginning on the Member's
Option Date and ending with the Member's date of death or the
sixtieth (60th) monthly payment, whichever is later. Any
remaining payments on the Member's date of death shall be paid to
the Member's Beneficiary. If no Beneficiary survives to receive
all of such monthly payments, the commuted value of the unpaid
installments shall be paid to the estate of the last to die of the
Member and his Beneficiary.
7.2 Optional Forms of Payment. In lieu of the normal
form of payment as provided in Section 7.1, a Member may elect one
of the following optional forms of payment, subject to the
limitations as provided hereafter:
(A) Life Annuity Option - A Member may elect an
increased monthly benefit of equal actuarial value payable in
monthly installments for the period beginning on his Option
Date and ending on the date of his death.
(B) Ten Year Certain Option - A Member may elect a
reduced retirement benefit of equal actuarial value payable
in monthly installments for the period beginning on his
Option Date and ending with the Member's date of death or the
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one hundred and twentieth (120th) monthly payment, whichever
is later. If the Member's death occurs within such ten year
period, monthly payments will continue to be paid to the
Member's Beneficiary. If no Beneficiary survives to receive
all of such monthly payments, the commuted value of the
unpaid installments shall be paid to the estate of the last
to die of the Member and his Beneficiary.
(C) Joint and Survivor Annuity - A Member may elect a
reduced retirement benefit of equal actuarial value payable
in monthly installments commencing on his Option Date for the
life of the Member with a survivor annuity for the life of
the Member's Beneficiary which is not less than fifty percent
(50%) of (and is not greater than one hundred percent (100%)
of) the amount of the annuity which is payable during the
joint lives of the Member and his Beneficiary.
(D) Social Security Option - A Member whose retirement
benefit commences prior to attaining age sixty -two (62), may
elect to receive such retirement benefit on an actuarially
adjusted basis so that the monthly benefit payable from this
plan and his monthly primary social security benefit are
approximately level during his lifetime. The retirement
benefit payments under this optional form of payment shall
be payable for the Member's lifetime commencing on the
Member's Option Date and terminating on the first day of the
month in which the Member's death occurs.
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7.3 Small Benefits. Without regard to any other
provision of this Plan, if the monthly benefit payable to a Member
or to his Beneficiary is less than twenty-five dollars($25.00),
the actuarial equivalent of a Member's Accrued Retirement Benefit
shall be paid to such Member in a single sum or in such other
manner as the Pension Committee determines in its sole discretion.
7.4 Election of Optional Form of Payment
(A) A Member's election to receive his retirement
benefit in a form other than the normal form of payment described
in Section 7.1 above shall be made in writing on forms designated
by the Pension Committee and shall be delivered to the Plan
Administrator not less than thirty (30) or more than ninety (90)
days prior to the Member's Option Date.
(B) A Member may revoke an election to receive an
optional form of payment and select a different option or the
normal form of payment at any time more than thirty (30) days
prior to the Member's Option Date. The selection of a new optional
form of payment must be made in writing and delivered to the Plan
Administrator at least thirty (30) days prior to the Member's
Option Date.
(C) If the Beneficiary of a Member who has selected
the joint and survivor annuity option dies before the Member's
Option Date, the Member's election to receive such optional form
of payment shall be deemed automatically revoked and the Member
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shall be eligible to select another optional form of payment or
to receive his benefit in the normal form.
(D) If the Member dies after attaining age sixty-five
(65) and before his Option Date, any election made by the Member
under Section 7.2 shall apply. If such Member has not made an
election under Section 7.2 prior to his death, such Member shall
be deemed to have elected a one hundred percent (100%) Joint and
Survivor Annuity with his spouse as the Beneficiary as described
in Section 7.2(c), and if he does not have a surviving spouse his
benefit shall be paid in the normal form as described in
Section 7.1.
7.5 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 Members's benefit.
(A) No Member's election to receive benefits under
this Plan shall be effective unless pursuant to such
election:
(1) benefits shall commence no later than the
first day of April following the calendar year in which
the Member:
(i) attains age seventy and one-half (70-
1/2), or
(ii) terminated employment with the District,
whichever is later; and
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(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 of 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 Member's retirement benefit is
paid within the life expectancy of the Member.
(B) If a Member dies after distribution of his benefit
has commenced, the remaining portion of his benefit shall
continue to be distributed at least as rapidly as under the
method of distribution applicable prior to the Member's
death.
(C) If a Member dies before distribution of his
benefit commences, the Member's entire benefit, if any, shall
be distributed within sixty (60) months after the Member's
death; provided, however, if any portion of the Member's
benefit is payable to a designated Beneficiary, distributions
may be made over the life expectancy of such Beneficiary and
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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).
7.6 Post Retirement Increase in Benefits. Benefits
payable under this Plan shall be subject to the following
adjustments effective for the Plan Year beginning January 1, 1990:
(A) Any Member (or his Beneficiary) whose benefit
commenced prior to January 1, 1988 shall receive a one-time
increase in his monthly benefit equal to ten percent (10%),
effective January 1, 1990.
(B) The minimum monthly benefit increase under (A)
shall be ten dollars ($10.00).
(C) Any Member (or his Beneficiary) whose benefit
commenced or will commence on or after January 1, 1988 shall
receive an increase in his monthly benefit equal to that
percentage increase in the National Consumer Price Index for
all urban consumers (CPI-U) during the preceding twelve (12)
month measuring period, subject to the following:
(i) Such increase in monthly benefit shall not
exceed three percent (3%) of the monthly amount payable
hereunder when benefits first commence and such
increases in the aggregate shall not exceed fifteen
percent (15%) of the original monthly amount;
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(ii) Each such increase shall not exceed fifty
dollars ($50) per month and such monthly increases in
the aggregate shall not exceed two hundred fifty
dollars ($250) per month; and
(iii) Such increase shall begin to apply to
benefits payable on the third January 1 following the
month in which a Member's benefits initially commenced
under this Plan. The twelve (12) month measuring
period for the National Consumer Price Index shall end
on the October 31 preceding the January increase.
The increase in monthly benefits provided for in this Section
shall apply only to a Member who receives benefits on account of
his retirement after the Member attains his Early Retirement Date
or Normal Retirement Date.
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ARTICLE VIII
ADMINISTRATION OF THE PENSION PLAN
8.1 Duties and Membership of Pension Committee.
A. The Pension Plan shall be administered by 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,
Continuous Service, Earnings, eligibility and termination of
membership with respect to any Member of the Pension Plan, or his
Beneficiary. The decision of the Pension Committee shall be
nondiscriminatory, and any decision by a majority of the members
of the Pension Committee shall govern.
B. In addition to those listed in Section 1.23, the
Members of the Pension Plan shall elect two Members from among
their ranks to serve on the Pension Committee. Members of the
Pension Plan eligible to serve on the Pension Committee are those
Employees who are Civil Service Employees and are Members of the
Plan during their tenure on the Pension Committee. Each elected
Member's term shall be for two years commencing on November 1 of
the year. The Personnel Director of the District shall serve as
the Secretary of the Pension Committee and as an ex-officio member
without authority to vote. The Pension Committee shall elect its
own Chairman and Vice-Chairman and shall delegate duties to the
members of the Pension Committee as the Pension Committee in its
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sole discretion determines. Upon the death, resignation, removal
or inability of a Member of the Pension Committee to continue to
act, the Board of Trustees of the District shall appoint a
successor.
8.2 Plan Administration.
A. Claims. 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 consistently applied in a nondiscriminatory
fashion. Any Employee or Beneficiary or other person who believes
that he is being denied a benefit to which he is entitled
(hereafter referred to as "Claimant") may file a written request
for such benefit with the Claims Processor setting forth his
claim. The request must be addressed to: Claims Processor, local
address.
(B) Decisions and Delegation. A decision of the
Pension Committee may be made by a written document signed by a
majority of the members of the Pension Committee. The Secretary
of the Pension Committee shall keep and maintain any and all other
records desired by the Pension Committee. The Pension Committee
may appoint such agents, who need not be members of the Pension
Committee as it may deem necessary for the effective exercise of
its duties, and may to the extent not inconsistent herewith
delegate to such agents any powers or duties both ministerial and
discretionary as the Pension Committee may deem expedient or
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appropriate. No member of the Pension Committee shall made any
decision or take any action covering exclusively his own benefits
under the Plan. All such matters shall be decided by a majority
of the remaining members of the Pension Committee, or in the event
of inability to obtain a majority, by the Board of Trustees of the
District.
(C) Meetings. The Pension Committee shall hold
meetings upon such notice at such place or places and at such
times as the Pension Committee may determine. Meetings may be
called by the Chairman or any two members of the Pension
Committee. A majority of the Pension Committee shall constitute a
quorum for the transaction of business.
(D) Duties of the Pension Committee. The Pension
Committee shall have such duties and powers as may be necessary to
discharge its duties hereunder, including by way of example, but
not by way of limitation:
(1) to construe and interpret the provisions of the
Plan;
(2) to decide all questions of eligibility and
participation under the Plan;
(3) to prescribe such rules and procedures as are
consistent with the provisions of the Plan and as are deemed
necessary and proper by the Plan Administrator;
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(4) To prepare and distribute, in such manner as the
Plan Administrator determines to be appropriate, information
explaining the Plan;
(5) To receive from the Employer and from Members such
information as shall be necessary for the proper
administration of the Plan;
(6) To maintain and furnish to the Employer, upon
request, such reports with respect to the administration of
the Plan as are reasonable and appropriate;
(7) to cause to be filed with any state or federal
authority or agency such reports or records as may be
required by law to be filed;
(8) maintain and be custodian of all records,
including financial records relating to the Plan or to Plan
Members; and
(9) except for the power to amend the Pension Plan
which is specifically reserved to the Board of Trustees of
the District, to do all such acts, take all such action and
exercise all such rights, although no specifically mentioned
herein as the Plan Administrator may deem necessary or
convenient to administer this Plan and to carry out the
purposes of the Plan.
(E) Records of the Pension Committee. All acts and
determinations of the Pension Committee shall be duly recorded by
the Secretary of the Pension Committee and all such records,
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together with such other documents as may be necessary for the
proper administration of the Plan, shall be preserved in the
custody of such Secretary. The records and documents which
constitute the business records of the Pension Committee shall at
all times by open for inspection and copying by any person
designated by the Board of Trustees of the District.
8.3 Claim Decision. Upon receipt of a claim, the
Claims Processor shall advise the Claimant that a reply will be
forthcoming within ninety (90) days and shall, in fact, deliver
such reply within such period. However, the Claims Processor may
extend the reply period for an additional ninety (90) days for
reasonable cause. If the claim is denied in whole or in part, the
Claims Processor will adopt a written opinion using language
intended to be understood by the Claimant setting forth:
(1) the specific reason or reasons for denial;
(2) the specific references to pertinent Plan
provisions on which the denial is based;
(3) a description of any additional material or
information necessary for the Claimant to perfect the claim
and an explanation why such material or such information is
necessary;
(4) appropriate information regarding steps to be
taken if the Claimant wishes to submit the claim for review;
(5) the time limits for requesting a review under this
Section.
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8.4 Request For Review. Within sixty (60) days after
the receipt by the Claimant of a written opinion described above,
the Claimant may request in writing that the Claims Appeal
Reviewer review the determination of the Claims Processor. Such
request must be addressed to: Claims Processor, Local address.
The Claimant or his duly authorized representative may, but need
not, review the pertinent documents and submit issues and comments
in writing for consideration by the Claims Appeal Reviewer. If
the Claimant does not request a review of the Claims Processor's
determination by the Claims Appeal Reviewer within such sixty (60)
day period, he shall be barred and estopped from challenging the
Claims Processor's determination.
8.5 Review of Decision. Within sixty (60) days after
the Claims Appeal Reviewer's receipt of a request for review, it
will review the Claims Processor's determination. After
considering all materials presented by the Claimant, the Claims
Appeal Reviewer will render a written opinion, written in a manner
designed to be understood by the Claimant setting forth the
specific reasons for the decision and containing specific
references to the pertinent Plan provisions on which the decision
is based. If special circumstances require that the sixty (60)
day period be extended, the Claims Appeal Reviewer will so notify
the Claimant and will render the decision as soon as possible but
not later than one hundred twenty (120) days after receipt of the
request for review. Any decision of a majority of the members of
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the Claims Appeal Reviewer shall govern. The decision of the
Claims Appeal Reviewer shall be final and nonreviewable unless
found to be arbitrary and capricious by a court of competent
review. Such decision will be binding upon the Employer and the
Claimant.
ARTICLE IX
MANAGEMENT, INVESTMENT AND USE OF FUNDS
9.1 Investment of Pension Fund. 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.
9.2 Investment Manager. 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 made by a resolution duly adopted by the Board
and shall be effective as of the date specified therein, but not
before it has been accepted in writing by the Investment Manager
and notice of such appointment and acceptance given to the
Trustee. The Board may remove, or change the assets subject to
the control of, any Investment Manager previously appointed
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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.
9.3 Authority of Board. 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.
ARTICLE X
AMENDMENT OR TERMINATION OF THE PENSION PLAN
10.1 The District reserves the right at any time and
from time to time through action of its Board of Trustees to amend
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in whole or in part any and all provisions of the Plan and to
terminate the Plan. The right is subject to the condition that no
part of the assets of the Plan, shall, by reason of any amendment
or termination be used for or diverted to purposes other than the
exclusive benefit of the Members and their Beneficiaries under the
Plan, unless and until all liabilities of the Plan have been
satisfied, in which case any remaining assets shall revert to the
District.
10.2 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.
ARTICLE XI
MISCELLANEOUS PROVISIONS
11.1 Members' Rights. Neither the establishment of
this Plan, nor the modification thereof, nor the creation of any
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fund or account, nor the payment of any benefits, shall be
construed as giving any Participant or any other person any legal
or equitable right against the Employer any officer or Employee
thereof, the Trustee or the Board except as herein provided.
Under no circumstances shall the terms of employment of any
Participant be modified or in any way affected hereby.
11.2 Spendthrift Provisions. No benefit or beneficial
interest provided under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge, either voluntary or involuntary, and any
attempt to so alienate, anticipate, sell, transfer, assign,
pledge, encumber or charge the same shall be null and void. No
such benefit or beneficial interest shall be liable for or subject
to the debts, contracts, liabilities, engagements, or torts of any
person to whom such benefits or funds are or may be payable.
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11.3 Incapacity. If, in the opinion of the Employer, a
person to whom a benefit is payable is unable to care for his
affairs because of illness, accident or any other reason, any
payment due the person, unless prior claim therefore shall have
been made by a duly qualified guardian or other duly appointed and
qualified representative of such person, may be paid to some
Member of the person's family, or to some party who in the opinion
of the Employer has incurred expense for such person. Any such
payment shall be payment for the account of such person and shall
be a complete discharge of any liability of the Plan to or for the
benefit of such Member.
11.4 Administration of the Plan. The Pension Committee
appointed by the Board of Trustees shall be the Plan
Administrator. The General Counsel of the Employer shall be the
agent of the Plan for service of process.
11.5 Suspension of Benefits Upon Reemployment. In the
event a Member who is receiving benefits under the Plan returns to
the full-time employment of the Employer as defined in the
Employer's employment practices prior to his Required Beginning
Date, payment of his benefits shall cease. Upon the cessation of
the Employee's benefits, the Employer shall notify the Employee
by personal delivery or first class mail during the first calendar
month of the payroll period in which the Plan withholds payments
that his benefits are suspended. Such notification shall contain
a description of the specific reasons why benefit payments are
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being suspended, a general description of the Plan provisions
relating to the suspension of payments, a copy of such Plan
provisions, and information regarding the Plan's procedure for
affording a review of the suspension of benefits.
Upon his subsequent termination of employment with the
Employer prior to his Required Beginning Date, his benefits shall
recommence as of the first day of the month coincident with or
next following the date of such subsequent termination of
employment. The benefits payable to him upon such subsequent
termination shall be the benefits to which he is entitled under
the Plan as in effect on the date of such subsequent termination
and his Final Average Earnings, his years of Credited Service,
attained age, and Covered Earnings as of his subsequent
termination, reduced by the actuarial value of the benefits, other
than disability benefits, he received prior to the earlier of his
Normal Retirement Date or his reemployment date; provided,
however, that in no event shall the Member receive a benefit upon
his subsequent termination that is smaller than the benefit he was
receiving as of his date of reemployment. In no event shall a
reemployed Member's benefit be suspended hereunder if he earns
forty (40) hours of service or fewer during a calendar month.
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11.6 Trust Sole Source of Benefits. The assets of the
Trust shall be the sole source of benefits under the Plan and the
Employer does not assume any liability or responsibility for such
benefits. Each Member, his surviving spouse, Beneficiary or other
person who shall claim the right to any payment under the Plan
shall be entitled to look only to the Trust for such payment and
shall not have any right, claim or demand therefore against the
Employer, the Trustee or any Employee of any of them.
11.7 Actuarial Assumptions. All actuarial assumptions
under the Plan other than for funding purposes and as otherwise
specifically provided shall use an interest rate of seven percent
(7%) per annum and the 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.
11.8 Notice of Address. Each Member or his Beneficiary
entitled to benefits under the Pension Plan shall notify the Plan
Administrator, in writing of his address and each change of
address. Any communication, statement, or notice from the Plan
Administrator or the District addressed to such person at his last
known address filed with the Plan Administrator shall be binding
upon such person for all purposes of the Pension Plan, and neither
the Trustee, the Carrier nor the District shall be obligated to
search for or to ascertain the whereabouts of such person.
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11.9 Furnishing Data. Each person entitled to benefits
under the Pension Plan shall furnish the Plan Administrator such
documents, evidence or other information as the Plan Administrator
considers necessary or desirable for the purposes of administering
the Pension Plan or to protect the Pension Plan, the Trustees, or
the Carriers. No benefit shall be payable hereunder until the
Plan Administrator has received all information necessary to
determine the Member's entitlement to a benefit hereunder. If the
age or any other relevant fact upon which entitlements under the
plan are based is misstated, an adjustment shall be made in future
benefits to correct same.
The foregoing Ordinance was adopted December 11, 1991.