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HomeMy WebLinkAbout06189ORDINANCE NO. 6189 AN ORDINANCE AMENDING CHAPTER 3 OF TITLE II OF THE 1971 CODE OF ORDINANCES RELATING TO THE CITY OF PUEBLO POLICEMEN RETIREMENT SYSTEM, MODIFYING PENSION COMPUTATION WHEREAS, pursuant to the City of Pueblo Policemen Retirement System (the "Police Pension Plan "), upon his retirement, a member who has attained age 55 and has 20 or more years of credited services receives a pension equal to the sum of (a) 2% of his average final compensation multiplied by the number of years, and fraction of a year, of his credited service not to exceed 25 years, and (b) I% of his average final compensation multiplied by the number of years, and fraction of a year, of his credited service in excess of 25 years; and WHEREAS, the members of the Police Pension Plan have requested that the Police Pension Plan be amended to award a pension to a member who has atta ined age 55 with 20 or more years of credited service equal to 2% of the member's average final compensation multiplied by the number of years, and fraction of a year, of such member's credited service; and WHEREAS, Watson Wyatt Worldwide, Consultants and Actuaries have determined as of January 1, 1996, the market value of the assets of the Police Pension Plan exceeds the present value of pension benefits under the current formula including the above modification in benefits requested by the members of the Police Pension Plan resulting in no required future City contributions, and WHEREAS, continuing the current rate of contributions (eight (8) percent of compensation) of the members of the Police Pension Plan and the City will exceed the contributions required to pay normal cost and to amortize unfunded actuarial accrued liabilities; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (Brackets indicate matter deleted, underscoring indicates matter added) SECTION 1 The City Council of Pueblo hereby finds and determines: (a) The current assets of the City of Pueblo Policemen Retirement System (the "Police Pension Plan ") constitute adequate present cash reserves pledged irrevocably and held for payments of any and all enhanced benefits granted by Section 2 of this Ordinance in all future fiscal years of the City. (b) The contributions to the Police Pension Plan of eight (8) percent of compensation by the members of the Police Pension Plan and the City shall continue in effect. (c) The modification to the Police Pension Plan and any enhanced benefits granted by Section 2 of this Ordinance do not require voter approval in advance under either Section 20(4) of Article X of the Colorado constitution or Section 18 -5 of the Charter of the City of Pueblo. SECTION 2 Section 17(a) of Chapter 3, Title II of the 1971 Code of Ordinances is hereby amended to read: 2 -3 -17: PENSION -- COMPUTATION (a) Living Upon his retirement from service, a member who has attained age fifty -five (55) years and has twenty (20) or more years of credited service shall receive a service retirement pension equal to [the sum of (1)] two percent (2 %) of his average final compensation multiplied by the number of years, and fraction of a year, of his credited service. [not to exceed twenty -five (25) years, and (2) one percent (1 %) of his average final compensation multiplied by the number of years, and fraction of a year, of his credited service in excess of twenty -five (25) years.] SECTION 3 This Ordinance shall become effective upon final passage; provided, however, the modification to the City of Pueblo Policemen Retirement System set forth in Section 2 of this Ordinance shall not become effective until the first of the month after the month in which such modification is approved by both (a) sixty -five (65) percent of the active members of the City of Pueblo Policemen Retirement System, and (b) the Board of Directors of the Fire and Police Pension Association pursuant to §31- 30.5- 210(2) C.R.S. (1996 Cum. Supp. Vol. 12B). For such purpose, the final passage of this Ordinance shall constitute and be construed to be a request by the City to -2- so modify the City of Pueblo Policemen Retirement System. SECTION 4 Subject to the approvals required by Section 3 of this Ordinance, the modification to the City of Pueblo Policemen Retirement System set forth in Section 2 of this Ordinance shall apply to members of the City of Pueblo Policemen Retirement System who retire on or after January 1, 1997. INTRODUCED: April 14, 1997 ATTEST: City ClerkF7, By Al Gurgle Councilperson APPROVED: President of th City ouncil J: \CIT"ENSIONS \OLD - HIRE \ORDINNC2.WPD '3