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Legislation #: 910592 Introduction Date: 5/9/1991
Type: Ordinance Effective Date: 5/16/1991
Sponsor: None
Title: Amending Article IX, Division 1 of the Administrative Code of Kansas City, Missouri, entitled "Retirement System" by repealing Section A9.1 thereof and enacting in lieu thereof a new section of the same number and subject pertaining to "Definitions"; by amending Section A9.5 thereof by amending a new subsection (d) "Health Insurance Subsidy"; and by repealing Section A9.6 and enacting in lieu thereof a new section of the same number and subject pertaining to eligibility; and is recognized as an emergency.

Legislation History
DateMinutesDescription
5/10/1991

Referred Finance Committee

5/9/1991

Referred Finance Committee

5/15/1991

Advance and Do Pass

5/16/1991

Passed


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ORDINANCE NO. 910592

 

Amending Article IX, Division 1 of the Administrative Code of Kansas City, Missouri, entitled "Retirement System" by repealing Section A9.1 thereof and enacting in lieu thereof a new section of the same number and subject pertaining to "Definitions"; by amending Section A9.5 thereof by amending a new subsection (d) "Health Insurance Subsidy"; and by repealing Section A9.6 and enacting in lieu thereof a new section of the same number and subject pertaining to eligibility; and is recognized as an emergency.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section A. Section A9.1, Article IX, Administrative Code of Kansas City, Missouri, entitled "Definitions" is hereby repealed and a new section of the same number and subject is enacted in lieu thereof as follows:

 

Sec. A9.l. Definitions.

 

The following words and phrases as used in this

division shall have the following meanings, unless a different meaning is plainly required by the context.

 

The masculine pronoun shall include the pronoun of

feminine gender, unless otherwise indicated by the context.

 

Actuarial equivalent: A benefit of equal value to

another benefit when computed upon the basis of such mortality tables and interest rate as shall be adopted by the board of trustees upon recommendation of the actuarial consultant.

 

Annuity: A monthly payment for life as established

herein. The first payment shall be made at the end of the month after the effective date of the benefit as established by the board of trustees. The final payment of all annuities shall be made at the end of the month in which the event causing cessation of the payment occurs and shall be made for the full monthly amount without reduction.

 

Beneficiary: The person designated by a member to

receive any benefits payable upon his death.

 

Compensation: The basic monthly wage or salary paid an

employee excluding bonuses, overtime, expense allowance and other extraordinary compensation.

 

Employment or service: Service for the employer as an

employee.

 

Employer: The City of Kansas City, Missouri, or

participating boards of control as defined in R.S. Missouri, Section 95.540.

 

Final average compensation: the monthly average of the

two (2) highest years of compensation of the member in the last ten (10) whether or not such years are consecutive.

 

Interest: The rate declared by the board of trustees

compounded annually.

 

Last continuous employment: The most recent period of

uninterrupted employment excluding all service previous to last reemployment date.

 

Retirement system: The retirement system established

herein to be known as "'The Employees' Retirement System".

 

Surviving spouse: The legally married, wife or husband

of a member surviving the member's death.

 

Termination: Resignation or discharge from service of

the employer.

 

Section B. Section A9.5, Article IX, Administrative Code of Kansas City, Missouri, entitled "Retirement Benefits" is hereby amended by adding a new subsection (d) "Health Insurance Subsidy" to read as follows:

 

Section A9.5. Retirement Benefits.

 

(a) Annuity. Upon retirement as provided in Section

A9.4, an annuity calculated as follows shall be payable:

 

(1) If married at date of retirement, one and

eight-tenths (1.8) percent of the member's final

average compensation multiplied by years and full

months of creditable service not to exceed sixty (60)

percent.

 

(2) At date of retirement, a member may elect to

receive an actuarial equivalent annuity providing that

upon death following retirement, the same actuarial

equivalent annuity shall be payable to the surviving

spouse provided the marriage occurred on or before the

date of retirement. This election shall not be

effective if the member dies within thirty (30) days

after filing application for retirement or before the

date of the first payment of the retirement annuity.

 

(3) If unmarried at date of retirement, two (2)

percent of the member's final average compensation

multiplied by years and full months of creditable

service not to exceed sixty (60) percent.

 

(4) With signed consent by the spouse, a married

member may elect calculation as if unmarried;

forfeiting a surviving spouse's annuity as provided in

Section A9.8.

 

(b) Withdrawal. A member retiring under provisions of

Section A9.4, except disability retirements or deferred annuities, may elect, with signed consent of his spouse, to withdrawal all or a portion of his accumulated contributions and interest, and receive a reduced annuity.

 

The annuity calculated in Section A9.5(a), above, shall

be reduced an actuarially equal amount by applying factors adopted by the Board of Trustees upon recommendation of the retirement system's consulting actuary.

 

(c) Cost of living adjustment. An annual cost of

living adjustment in retirement, disability, and death benefits shall be paid under these conditions:

 

(1) As of calendar year-end, the change in the

Consumer Price Index-All Urban Consumers, U.S. City

Average, or its recognized successor shall be

determined from the previous year end.

 

(2) The change will be rounded to the nearest full

percent, and limited to not more than two (2) percent.

 

(3) The change shall be applied to the annuity as

calculated upon retirement date under the provisions of

Section A9.5(a) above, without reduction for withdrawal

provided in Section A9.5(b). Such adjustment is not to

be compounded. No annuity shall be reduced below the

original amount.

 

(4) The adjustment shall be paid on all annuities

effective on or before the proceeding January 1.

 

(5) The adjustment shall be made on annuity checks

dated August 1, and the adjusted amount shall remain

unchanged until the next August 1.

 

(d) Health Insurance Subsidy. A fifty dollar ($50)

monthly retiree health insurance subsidy shall be payable to members who retire on or after June 1, 1991 under the following conditions, until they reach age 65.

 

The annuitant must:

 

(1) Be enrolled in the current retiree health

insurance program sponsored by the City.

 

and

 

(2) Have at least 25 years of creditable service

or total of age and years of creditable service which

equals or exceeds eighty.

 

or

 

(3) Meet eligibility requirements for a duty

disability retirement as detailed in Section

A9.6(b)(1), (c) and (d).

 

If a member dies before retirement as the direct and

proximate result of an accident sustained in the performance of assigned duties, the member's surviving spouse shall become eligible for the health insurance subsidy described above (d) as long as the spouse receives an annuity. No other survivors will be eligible for this health insurance subsidy following the line-of-duty death of a qualifying member.

 

Section C. Section A9.6, Division 1, Article IX, Administrative Code of Kansas City, Missouri, entitled "Disability Retirement" is hereby amended by repealing Section A9.6 and enacting in lieu thereof a new section of the same number and subject to read as follows:

 

Sec. A9.6. Disability Retirement.

 

A member, who becomes totally and permanently disabled,

as defined in this section, shall be entitled to retire on the first day of the month following termination of employment arising from such disability, provided as follows:

 

(a) Amount Members who are eligible and totally and

permanently disabled as defined herein, shall receive a disability annuity computed as follows:

 

(1) Duty disability: Fifty (SO) percent of final

average compensation, but in no event less than the

amount the member would be entitled to as an annuity if

he retired on the same date with equivalent age and

creditable service.

 

(2) Non-duty disability: Thirty (30) percent of

final average compensation, but in no event less than

the amount the member would be entitled to as an

annuity if he retired on the same date with equivalent

age and creditable service.

 

(3) The annuity shall cease upon the first day of

the month following death except that a surviving

spouse or heir shall be entitled to death benefits, as

computed under section A9.8.

 

(b) Eligibility

 

(1) Duty-Disability shall mean total and permanent

disability directly due to and caused by actual

performance of employment with the City. Members

eligible for optional retirement as provided in Section

A9.4 may elect either option.

 

(2) Non-Duty Disability shall mean total and

permanent disability arising from any other cause than

Line-of-Duty Disability. At least ten (10) years

creditable service are required. Members eligible for

optional retirement as provided in Section A9.4 may

elect either option.

 

(c) Definition and determination. Total and permanent

disability shall mean a state or condition which presumably prevents for the rest of a member's life his engaging in any occupation or performing any work for remuneration or profit.

 

Such disability, whether duty or non-duty, must not

have been contracted, suffered, or incurred while the employee was engaged in or result from having engaged in a criminal act or enterprise, or result from habitual drunkenness or addiction to narcotics or from self-inflicted injury, or from disability incurred while in the service of the armed forces of the United States any foreign country.

 

No benefit shall be payable if the disability results

from or is incurred while the member is engaged in self-employment or in any occupation or performing any work for remuneration or profit not in the service of an employer, as defined in this division.

 

The board shall make the determination as to disability

basing its findings on the evidence presented, including at least two written opinions by Qualified physicians, The board shall appoint the physicians and the examination expenses shall be paid from this retirement system fund.

 

From time to time, the board of trustees shall have the

right to require proof of continuing disability which may include further examination.

 

(d) Recovery. Should the board of trustees determine

that disability no longer exists, it shall terminate the disability annuity.

 

If the member immediately returns to work with the

city, he shall again earn creditable service beginning on the first day of the month following such return. Creditable service prior to disability retirement shall be reinstated. No creditable service shall accrue while receiving a disability annuity and all such annuity payments made shall be charged to the extent possible against the members accumulated contributions and interest at date of return to work.

 

Should the member not return to work with the city, he

shall be treated as a terminated employee. All annuity received shall be charged against the member's accumulated contributions and interest.

 

Section D. This ordinance, providing for the submission of a Charter Amendment to the people of Kansas City, Missouri, is hereby recognized to be an emergency measure within the meaning of Section 15, Article II of the Charter of said City, and as such shall become effective immediately upon its passage.

 

_______________

 

Approved as to form and legality

 

 

 

__________________________________

Assistant City Attorney