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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June 22, 1988, Ordinance No. 7716 adopted March 21, 1989, and Ordinance No. 7942 adopted November 8, 1989 is hereby repealed, without, however altering or extinguishing the legal relationships established by such Ordinance.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 -i- 46766 05 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 -ii- 46766 05 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 -iii- 46766 05 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 -1- 46766 05 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 -2- 46766 05 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 -3- 46766 05 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. -4- 46766 05 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 -5- 46766 05 (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. -6- 46766 05 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). -7- 46766 05 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. -8- 46766 05 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. -9- 46766 05 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: -10- 46766 05 (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 -11- 46766 05 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 -12- 46766 05 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. -13- 46766 05 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 -14- 46766 05 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 -15- 46766 05 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 -16- 46766 05 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 -17- 46766 05 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. -18- 46766 05 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 -19- 46766 05 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. -20- 46766 05 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 -21- 46766 05 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 -22- 46766 05 (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 -23- 46766 05 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; -24- 46766 05 (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. -25- 46766 05 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 -26- 46766 05 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 -27- 46766 05 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; -28- 46766 05 (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, -29- 46766 05 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. -30- 46766 05 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 -31- 46766 05 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 -32- 46766 05 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 -33- 46766 05 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 -34- 46766 05 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. -35- 46766 05 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 -36- 46766 05 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. -37- 46766 05 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. -38- 46766 05 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.