Loading...
HomeMy WebLinkAbout06459ORDINANCE NO. 6459 REV. DRAFT - 6/21/99 (2.5% Cap) AN ORDINANCE AMENDING CHAPTER 3 OF TITLE II OF THE PUEBLO MUNICIPAL CODE RELATING TO THE CITY OF PUEBLO POLICEMEN RETIREMENT SYSTEM, MODIFYING THE PENSION COMPUTATION FOR MEMBERS WHO RETIRE ON OR AFTER JANUARY 1, 1999, REVISING STATUTORY REFERENCES, AND ESTABLISHING REVISED MEMBER AND EMPLOYER CONTRIBUTION RATES 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 are no longer necessary to maintain the actuarial soundness of the Police Pension Plan, and should be reduced. (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 2 -3 -17 of Chapter 3, Title II of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 2 -3 -17. Pension; Computation (a) Living. With respect to members retiring on or after December 15, 1995 and prior to January 1. 1999 upon a member's 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 two percent (2 %) of his or her average final compensation multiplied by the number of years, and fraction of a year, of his or her credited service. With respect to members retiring on or after January 1, 1999, upon a member's 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 two and one -half percent (2.5 %) of his or her average final compensation multiplied by the number of years, and fraction of a year, of his or her credited service: provided_ however, that such pension shall in no case exceed eighty -five percent (85 %) of the member's average final compensation, regardless of the number of years of credited service. (b) Deceased. In the event a retirant dies before he or she has received pension payments, provided for in subsection (a) above, in an aggregate amount equal to his or her accumulated contributions standing to his or her credit in the Pension Savings Fund at the time of his or her retirement, the difference between such accumulated contributions and the aggregate amount of pension payments received by him or her shall be paid from the Pension Reserve Fund to such person as he or she shall have nominated by written designation duly executed and filed with the Board. In the event there is no such designated person surviving the retirant, then such differences, if any, shall be paid to his or her legal representative. In no case shall any benefits be paid under this Section 2- 3 -17(b) on account of the death of a retirant if he or she elected either Option A, [or] B C or D provided for in Section 2 -3 -19. SECTION 3 Section 2 -3 -29 of Chapter 3, Title II of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 2 -3 -29. Plan assets, investments and City's contribution. (a) The plan shall be financed in accordance with the minimum funding standards prescribed in Part [8] 3 of Article [30] 30.5 Title 31, C.R.S., or as the same may be subsequently amended. (b) All assets of the plan shall be transferred to the Fire and Police Members' Benefit Fund created by Section [31 -30 -1012] 31 -31 -301 C.R.S., and invested and managed by the Board of Directors of the Fire and Police Pension Association. All benefits payable under the plan shall be paid by the Fire and Police Pension Association from the Fire and IN Police Members' Benefit Fund. (c) The City's annual contribution to the plan shall be determined by the Board of Directors of the Fire and Police Pension Association pursuant to and in accordance with the provisions of Parts [8, 9 and 101 3. and 4 of Article [30] 30.5 Title 31, C.R.S., or as the same may be subsequently amended. In accordance with subsection (c) of this section, effective with the next monthly payroll made after the effective date of the ordinance adopting this subsection (d), the rate of contributions of active members to the plan shall be equal in amount to one percent (1% ) of salary, with the rate of contributions by the City equal to such member rate; and such contribution rates shall be biennially adjusted thereafter by resolution of the City Council to such minimum rates as are necessary to achieve compliance with the minimum contribution requirements of subsection (c) of this section and section 31- 30.5 -304. C.R.S. SECTION 4 This Ordinance shall become effective upon final passage; provided, however, the modifications to the City of Pueblo Policemen Retirement System by the addition of language to subsection (a) of Section 2 -3 -17 of the Pueblo Municipal Code, as set forth in Section 2 of this Ordinance, and the addition of subsection (d) to Section 2 -3 -29 of the Pueblo Municipal Code, as set forth in Section 3 of this Ordinance, shall not become effective until the first of the month after the month in which such modifications are 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. (1998 Vol. 9). For such purpose, the final passage of this Ordinance shall constitute and be construed to be a request by the City to so modify the City of Pueblo Policemen Retirement System. SECTION 5 Subject to the approvals required by Section 4 of this Ordinance, the substantive modifica- -3- tions to the City of Pueblo Policemen Retirement System set forth in Section 2 of this Ordinance shall apply after the effective date of this Ordinance only to members of the City of Pueblo Policemen Retirement System who retire on or after January 1, 1999. SECTION 6 The provisions of this Ordinance shall not be severable. It is the intent of the City Council that the modifications to the Pueblo Policemen Retirement System provided in Section 2 of this Ordinance be approved and authorized only if the modifications to contribution rates provided in Section 3 of this Ordinance are also deemed valid and enforceable. Consequently, in the event any part or provision of this Ordinance shall be found by FPPA, or any court or administrative agency, to be void or contrary to law, then the entire Ordinance shall be deemed void and of no effect whatsoever. ATTEST City Cl INTRODUCED: June 28, 1999 By Al Gurul e Councilperson APP D: President of the City Council F'. \FILES \CITY\PENSIONS \OLD - HIRE \MODIFICA \ORDINNC8.WPD _4_