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System" are hereby repealed by enacting, in lieu thereof, new sections of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.
_________________________________________
Approved as to form and
legality:
Assistant City Attorney