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HomeMy WebLinkAbout06338il ORDINANCE NO. 6338 AN ORDINANCE AMENDING CHAPTER 3 OF TITLE II OF THE PUEBLO MUNICIPAL CODE RELATING TO THE PUEBLO POLICEMEN RETIREMENT PLAN AND PROVIDING FOR SURVIVOR PENSION BENEFITS UPON DEATH OF CERTAIN ELIGIBLE MEMBERS BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (Brackets indicate matter being deleted; underscoring indicates new matter being added.) SECTION 1 Section 2 -3 -19 of Chapter 3 of Title II of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 2 -3 -19. Regular, Joint and Survivor Options. U Prior to the effective date of his or her retirement, but not thereafter, a member may elect to receive his or her pension provided for in Section 2- 3 -17(a) as a benefit payable throughout his or her life, called a regular pension, or he or she may elect to receive the actuarial equivalent, computed as of the effective date of his or her retirement, of his or her regular pension in a reduced pension payable throughout his or her life, and nominate a survivor beneficiary, in accordance with the provisions of Option A or B, as hereinafter set forth: (1) Option A. Joint and survivor pension. Upon the death of a retirant, his or her reduced pension shall be continued throughout the life of, and paid to, such person having an insurable interest in his or her life, as he or she shall have nominated by written designation duly executed and filed with the Board prior to the effective date of his or her retirement; or (2) Option B. Modified joint and survivor pension. Upon the death of a retirant, one -half (112) of his or her reduced pension shall be continued throughout the life of, and paid to, such person having an insurable interest in his or her life, as he or she shall have nominated by written designation duly executed and filed with the Board prior to the effective date of his or her retirement. Members retired under the former plan shall have the right for ninety (90) days after November 2, 1971, to elect an option under this Section. Surviving spouses of deceased members who retired under the former plan shall be classed and receive benefits under Option B above. Effective on and after August 10, 1998, upon the death of an active member who has twenty (20 ) or more Years of credited service, has attained age fifty -five (55) years and has achieved full eligibility to receive a pension Prior to his or her death but who had not so retired prior to death, the lawful spouse of the member at the time of death shall receive, for the life of such spouse, a reduced survivor pension actuarially equivalent to the reduced pension which would have been paid to such spouse had the member retired the day before his or her death, elected to receive the Option A Joint and Survivor Pension available pursuant to subsection (a)(1) of this Section, and designated such spouse as the surviving beneficiary. If such an eligible member was not lawfully married at the time of death, the member's accumulated contributions shall be paid as provided in Section 2- 3- 24(b). U Effective on and after August 10, 1998, upon the death of an active member who has tweM (20 ) or more years of credited service but has not attained age fifty-five 55) years, the lawful spouse of the member at the time of death shall receive one of the following benefits options which shall be irrevocably elected by such spouse within ninety (90) days of the death of the member: W Payment of the deceased member's accumulated contributions paid as provided in Section 2- 3- 24(b); or Q Payment of the applicable survivor benefits provided in Section 31 -31 -807. C.R.S. (Vol. 9, 1997),; or Upon application filed with the Board after the date on which the deceased member would have attained the age of fift -fy ive (55) years but for the member's death, a reduced survivor pension actuarially equivalent to the reduced pension which would have been paid to such spouse had the member separated from service as provided in Section 2 -3 -18 as of the date of the member's death, retired under the provisions of Section 2- 3- 18(a)(1) on the day of attainment of age fifty -five 55), elected to receive the Option A Joint and Survivor Pension available pursuant to subsection (a)(1) of this Section, and designated such spouse as the surviving beneficiary_ If the lawful spouse fails to make such election within said 90 -day period, the lawful spouse shall be deemed to have irrevocably elected option (c)(2) above. An election by the lawful spouse of the benefit under subsection (c).(2) above shall be deemed an irrevocable waiver and relinquishment of all benefits otherwise available to such spouse pursuant to subsections (c)(1 ) and c)(3) above. If such a member was not lawfully married at the time of death, the member's accumulated contributions shall be paid as provided in Section 2- 3- 24(b). -2- SECTION 2 Section 2 -3 -18 of Chapter 3 of Title II of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 2 -3 -18. Deferred service. (a) Separation. W In the event a member who has twenty (20) or more years of credited service separates from the service of the City prior to his or her attainment of the age of fifty -five (55) years, for any reason except to become a retirant or his or her death, he or she shall remain a member during the period of his or her absence from City service for the exclusive purpose only of receiving a pension provided in Subsections 2- 3 -17(a) and (b). His or her pension shall begin as of the first day of the calendar month next following the month in which he or she files his or her application for the same with the Board on or after his or her attainment of the age of fifty -five (55) years; provided that if such a member is employed by the City on or after his or her attainment of the age of fifty -five (55) years, payment of his or her pension shall be suspended for the period he or she is so employed. In no case shall service credit be given any such member for the time following the date he or she ceases to be employed by the City as a policeman, except as is specifically provided in this Chapter. In the event such a member withdraws all or part of his or her accumulated contributions from the Pension Savings Fund, he or she shall thereupon cease to be a member and he or she shall forfeit all his or her rights and his or her surviving spouse's rights in and to a deferred pension provided for in this Section. Q Effective on and after August 10, 1998, in the event a member who has twenty (20) or more years of credited service separates from the service of the City _prior to his or her attainment of the age of fi -five (55) years, for any reason except to become a retirant or his or her death, and such member thereafter dies prior to submission of an application for retirement under subsection (a)(1 ) of this Section, the lawful spouse of the member at the time of death shall receive one of the following benefit options which shall be irrevocably elected by such spouse within ninety (90) days of the death of the member: a. Payment of the deceased member's accumulated contribu- tions, less interest additions, paid as provided in Section 2- 3- 24(b), or b. After the date of death of the member or the date on which the deceased member would have attained the age of fifty-five 55) Years -3- but for the member's death, whichever is later, a reduced survivor pension actuarially equivalent to the reduced pension which would have been paid to such spouse had the member attained the age of fifty -five (55) years, retired under the provision of subsection (a)(1) of this Section on either the day before his or her death or the day of attainment of age fifty -five, whichever is later, elected to receive the Option A Joint and Survivor Pension available pursuant to subsection (a)(1) of Section 2 -3 -19, and designated such spouse as the surviving beneficiary. If the lawful spouse fails to make such election within said 90 -day period, the lawful spouse shall be deemed to have irrevocably elected option a. above. If such a member was not lawfully married at the time of death, the member's accumulated contributions, less interest additions, shall be paid as provided in Section 2- 3- 24(b). (b) Different Classification. In the event a member who has five (5) or more years of credited service ceases to be a policeman in the employ of the City but becomes employed by the City in another classification, and is continuously so employed for at least five (5) years, he or she shall remain a member for the exclusive purpose only of receiving a pension provided in Section 2- 3- 17(a). Such pension shall begin as of the first day of the calendar month next following the month in which he or she files his or her application for the same with the Board on or after his or her attainment of the age of fifty -five (55) years; provided that if such a member continues in City employment on or after his or her attainment of the age of fifty -five (55) years, payment of his or her pension shall be suspended for the period he or she is so employed. In no case shall service credit be given any such member for time following the date he or she ceases to be employed by the City as a policeman, except as is specifically provided in this Chapter. In the event such a member withdraws all or part of his or her accumulated contributions from the Pension Savings Fund, he or she shall thereupon cease to be a member and he or she shall forfeit all his or her rights in and to a deferred pension provided for in this Section and no survivor benefits shall be provided under subsection (a)(2) of this section SECTION 3 Section 2 -3 -24 of Chapter 3 of Title II of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 2 -3 -24. Refund of contributions. (a) Leaving Prior to Eligibility. Should any member leave the service of the City prior to becoming eligible to receive a pension payable from funds of the retirement system, for any reason except to become a retirant or his or her death, he or she shall be paid all or part of the accumulated contributions standing to his or her credit in the 0 Pension Savings Fund, less interest additions, as he or she shall demand in writing on forms furnished by the Board. (b) Lack of Beneficiary. Should any member die and not leave a beneficiary entitled to a pension, his or her accumulated contributions standing to his or her credit in the Pension Savings Fund at the time of his or her death shall be paid to such person as he or she shall have nominated by written designation duly executed and filed with the Board. If there is no such designated person surviving the member, then his or her accumulated contributions shall be paid to his or her legal representative. (c) Installments. Refund of accumulated contributions may be made in install- ments according to such rules and regulations as the Board shall from time to time adopt. W Disputes. In the event conflicting demands are made upon the Board by a person nominated by written designation or a deceased member's le ag 1 representative pursuant to subsection (b) above and the election of survivor benefits by a surviving lawful spouse of a deceased member pursuant to Sections 2- 3 -19(b) or (c) or 2- 3- 18 (a)(2) of this Chapter, the Board shall resolve the conflict in favor of the election made by the surviving lawful spouse, and shall in such event, not pay accumulated contributions to the designated person or legal representative. SECTION 4 Section 2 -3 -37 of Chapter 3 of Title II of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 2 -3 -37. Disability or death on or after January 1, 1980. Ua� Notwithstanding any provision of this Chapter relating to disability retirement or death benefits to the contrary, the benefits and right to benefits payable upon the death or disability of a member occurring on or after January 1, 1980, shall be those benefits, rights and eligibility for benefits, set forth and established by Part [ 10] 8 of Article [30131, Title 31, C.R.S., or as the same may be subsequently amended. The provisions of Sections 2 -3 -20 through 2 -3 -23 of this Chapter shall continue to apply to a member or the survivors of a member who died or became disabled prior to January 1, 1980. (, Notwithstanding subsection (a) of this Section, upon the death on or after August 10, 1998 of a member hired before April 8, 1978 who has twenty (20 ) or more years of credited service, and who was, at the time of death, either an active member or separated from service under Section 2- 3- 18(a), the surviving lawful spouse of such member may elect to receive survivor benefits provided under either Section 2- 3 -19(b) -5- or c) or Section 2- 3- 18(a)(2), whichever is applicable, in lied' of the spousal survivor benefits set forth and established by Part 8 of Article 31 of Title 31. C.R.S. (Vol. 9. 1997, or as same may be subsequently amended. Any such election shall be irrevocable and constitute a waiver and relinquish -ment of benefits otherwise available under Part 8 of Article 31 of Title 31, C.R.S. SECTION 5 This Ordinance shall become effective upon final passage and approval; provided, however, that the modifications to the Pueblo Policemen's Retirement Plan set forth in Sections 1 through 4, inclusive, of this Ordinance shall not become effective until the day after the date when the Board of Directors of the Fire and Police Pension Association established pursuant to Section 31 -31- 201(1), C.R.S. (Vol. 9, 1997) shall decide to permit said modifications pursuant to Section 31- 30.5- 210(2), C.R.S. (Vol. 9, 1997); and this Ordinance is intended to apply only with respect to eligible "old- hire" members of said Plan who die on or after August 10, 1998. For such purpose, on its effective date, this Ordinance shall constitute and be construed to be a request by the City to so modify the Pueblo Policemen Retirement Plan. ATTEST: City Cle INTRODUCED: July 27, 1998 By Robert Schillin Councilperson APPROVED: & 1 44 , 1dZ1A_ President of tlU Ci Council M