ORDINANCE NO. 960208

Repealing Sections 2-1176, 2-1183 and 2-1184 of Article IX, Division II of the Administrative Code entitled "Retirement System" and enacting, in lieu thereof, new sections of like number and subject matter.

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section A. Sections 2-1176, 2-1183 and 2-1184 of Article IX, Division II of the Administrative Code entitled "Retirement System" are hereby repealed by enacting, in lieu thereof, new sections of like number and subject matter, to read as follows:

Sec. 2-1176. Retirement Benefits.

(a) Annuity. Upon retirement as provided in section 2-1174, an annuity calculated as follows shall be payable:

(1) If married at date of retirement, the annuity shall be 1.8 percent of the member's final average compensation multiplied by years and full months of creditable service not

to exceed 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 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, the annuity shall be two percent of the member's final average compensation multiplied by years and full months of creditable service

not to exceed 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 2-1185.

(b) Withdrawal of contributions. A member retiring under provisions of section 2-1174, except disability retirements, may elect, with signed consent of spouse, to withdrawal all or a portion of his accumulated contributions and interest, and receive a reduced annuity. The annuity calculated in subsection (a) of this section 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 three percent.

(3) The change shall be applied to the annuity as calculated upon retirement date under the provisions of subsection (a) of this section, without reduction for withdrawal

provided in subsection (b) of this section. 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 preceding 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 $50.00 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 80; or

(3) Meet eligibility requirements for a duty disability retirement prior to May 1, 1996, as detailed in section 2-1183(2)a, (3) and (4).

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 in this subsection 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.

(e) Health insurance subsidy adjustment. Effective May 1, 1993, an annual adjustment of the health insurance subsidy shall be paid to eligible members under the following conditions:

(1) As of fiscal year-end the percentage change in average health care premiums for the city shall be determined from the previous fiscal year-end.

(2) If the change in average health care premiums is an increase, the health insurance subsidy shall be increased to the nearest full percent and be limited to five percent.

(3) The percentage increase shall be added on the previous year's health insurance subsidy. The percentage change will be calculated on the base subsidy as described

in subsection (d) of this section.

(4) The adjustment shall be paid on annuity checks dated August 1, and the adjusted amount shall remain unchanged until the next August 1.

(f) Limitations. Benefits with respect to a member may not exceed the maximum benefits specified under section 415 of the Federal Internal Revenue Code for governmental plans.

Sec. 2-1183. Disability retirement Prior to May 1, 1996.

A member who, prior to May 1, 1996, became totally and permanently disabled, as defined in this section, shall be entitled to retire on the first day of the month following determination by the Board of such disability, provided that, within at least six (6) months prior to May 1, 1996, the member receives medical treatment which is, or becomes, supporting evidence that the member is entitled to disability pension payments.

(1) Amount. Members who are eligible and totally and permanently disabled, as defined in this section, shall receive a disability annuity computed as follows:

a. Duty disability: 50 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.

b. Nonduty disability: 30 percent of final average compensation, but in no event

less than the amount the member would be entitled to as an annuity if the

member retired on the same date with equivalent age and creditable service.

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 2-1185.

(2) Eligibility.

a. 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 2-1174 may elect either option.

b. Nonduty disability shall mean total and permanent disability arising from any

other cause than line-of-duty disability. At least ten years' creditable service

is required. Members eligible for optional retirement as provided in section

2-1174 may elect either option.

(3) Definition and determination of disability.

a. 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.

b. Such disability, whether duty or nonduty, must not have been contracted,

suffered or incurred while the employee was engaged in or result from having

been 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 or any foreign country.

c. 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.

d. The board of trustees 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.

e. From time to time, the board of trustees shall have the right to require proof

of continuing disability, which may include further examination.

(4) Recovery from disability.

a. Should the board of trustees determine that disability no longer exists, it shall

terminate the disability annuity.

b. 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 member's accumulated contributions and interest at date of return to

work.

c. 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.

Sec. 2-1184. Termination benefits.

(a) Generally. Upon termination of employment, a member of the retirement system shall be paid all his accumulated contributions and interest. He shall thereby forfeit for himself and for any possible beneficiaries all rights to any and all benefits under this retirement system.

(b) Deferred annuity. A terminated member with at least five years or more of total employment who does not withdraw employee contributions may elect to receive a deferred annuity computed as provided in section 2-1176. Should the member later choose to withdraw his contributions and interest before annuity payments begin, he shall forfeit all right to any and all benefits under this retirement system. The member may elect to withdraw employee contributions within the thirty (30) day period prior to the deferred annuity effective date, as outlined in Section 2-1176 (a) 4 (b).

Section B. It is hereby declared to be the intention of the Council that the sections, paragraphs, sentences, clauses and phrases of this Code are severable, and if any phrase, clause, sentence, paragraph or section of this Code shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Code, since the same would have been enacted by the Council without the incorporation in this Code of any such unconstitutional phrase, clause, sentence, paragraph or section.

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Approved as to form and legality:

Assistant City Attorney