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Home My WebLink About06362r ORDINANCE NO. 6362 AN ORDINANCE AMENDING CHAPTER 3 OF TITLE II OF THE PUEBLO MUNICIPAL CODE RELATING TO THE PUEBLO POLICEMEN RETIREMENT PLAN AND PROVIDING RETIREMENT OPTIONS FOR "POP UP" OF RETIRED MEMBER PENSION UPON DEATH OF SURVIVOR BENEFICIARY, AND FOR JOINT AND SURVIVOR OPTION ELECTION UPON MARRIAGE AFTER RETIREMENT 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. (a) 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, C or D. 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 (1/2) 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. . Q . Option C. Actuarially equivalent "Pop -Up" 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: provided, however, that if the member's designated beneficiary predeceases the member, the member's pension shall increase to the amount of the member's regular pension computed in accordance with Section 2- 3- 17(a), effective the first day of the month next following the date of death of the member's designated beneficiary. kQ Option D. Actuarially equivalent "Pop -Up 50% joint and survivor pension. Upon the death of a retirant. one -half (1/2) 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 file with the Board prior to the effective date of his or her retirement: provided, however, that if the member's designated beneficiary predeceases the member, the member's pension shall increase to the amount of the member's regular pension computed in accordance with Section 2 -3- 17(a), effective the first day of the month next following the date of death of the member's designated beneficiary. 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. (b) 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). (c) Effective on and after August 10, 1998, upon the death of an active member who has twenty (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: (1) Payment of the deceased member's accumulated contributions paid as provided in Section 2- 3- 24(b); or (2) Payment of the applicable survivor benefits provided in Section 31 -31 -807, C.R.S. (Vol. 9, 1997); or (3) Upon application filed with the Board after the date on which the deceased member would have attained the age of fifty -five (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). kM After an election has been made of any of the options provided in paragraph (a) of this Section and the retired member has cashed the first pension check, or thirty days from the date of issuance of the check have elapsed, whichever occurs first, the election shall become irrevocable. Notwithstanding the foregoing, effective on and after October 26. 1998, a retired member who was unmarried at the time of election and elected to receive the regular pension provided in Section 2- 3 -17 (a), and who subsequently changes marital status as the result of a marriage or remarriage lawfully recognized in Colorado, may prospectively revoke his election and elect one of the other options provided in paragraph (a) of this Section: provided, however, that if the member subsequently dies during the first six months following such election, the only survivor benefit payable to the member's designated beneficiary shall be the difference between the member's regular pension payable prior to such election and the amount of the reduced benefit that was actually paid to the deceased member during the period between the member's election and the member's death. In the event of a change in option as provided in this paragraph (d) the joint and survivor pension payable shall be recalculated so as to be the actuarial equivalent of the remainder of the original pension payable to the retired member immediately prior to the change in option. SECTION 2 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 Section 1 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). 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. INTRODUCED October 13, 1998 BY: Rich Golenda Councilperson APPROVED: z ll�t-! President o e C uncil ATTEST: