ORDINANCE NO. 960204

 

Repealing Sections 2-1332, 2-1334 and 2-1339 of Article IX, Division VI of the Administrative Code entitled "Retirement System For Elected Officials" 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Section A. Sections 2-1332, 2-1334 and 2-1339 are hereby repealed by enacting, in lieu thereof, new sections of like number and subject matter, to read as follows:

 

Sec. 2-1332. Eligibility; retirement benefits.

 

(a) Generally. Each elected official who serves one or more elective terms as those terms are now constituted shall receive an annuity beginning the first day of the month following attainment of age 60 or the expiration of his last term of office, whichever occurs later, and payable until the first day of the month following death.

 

(b) Application for retirement. Written application to the board of trustees shall be made at least 30 days prior to retirement date.

 

(c) Amount of annuity. The annuity shall be two percent of the average monthly compensation received by then serving elected officials of the same office during the 24 months next preceding the beginning of the annuity, multiplied by the number of years' and months' creditable service, limited to 60 percent of the existing salary for then serving elected officials of the same office.

 

(d) Cost-of-living adjustment. An annual cost-of-living adjustment in annuities shall be payable under these conditions, only to members who retire after January 1, 1988:

 

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

 

(2) As of year-end, the change in the Kansas City Urban Wage Earners and Clerical Workers Index, or its recognized successor, shall be determined from the previous

year-end.

 

(3) If the change is an increase, the annuity as calculated upon retirement date shall be increased one percent and is not to be compounded.

 

(4) The cost-of-living adjustment shall be payable only to members or beneficiaries who have received an annuity for at least one year prior to the adjustment date.

 

(e) Early retirement; rule of 80.

 

(1) Elected officials may elect early retirement beginning at the later of age 55 or completion of ten years' creditable service. The benefit as computed in this

subsection shall be reduced by 0.5 percent for each month the effective date is prior

to the first day of the month following attainment of age 60.

 

(2) A member may elect to retire when the total of his age and years of creditable service equal or exceed 80, without reduction of benefits as calculated in this subsection.

 

(f) Membership. Elected officials shall become members upon assuming office. A municipal judge who is not receiving retirement payments under article XIII, section 395.9, of the city Charter may elect not later than April 15, 1985, and subsequently appointed judges within 60 days after taking office, to either become a member of this retirement system, or not so doing will accept retirement benefits under section 395.9 of the Charter. Such election, once made, is irrevocable.

 

(g) Required distributions. Distribution of a member's interest in the retirement system shall commence not later than April 1 of the calendar year following the later of the calendar year in which the member attains age 70 or the calendar year in which the member retires under the plan.

 

(h) Creditable service. The term ``creditable service,'' as used in this section, shall mean service as a city employee and elected official continuously. If a member of the employees' retirement system becomes a member of this elected officials' retirement system maintaining a continuous service, his employees' retirement system member contributions and interest shall not be refunded, but shall be transferred to his account in the elected officials' retirement system.

 

(i) Withdrawal of contributions. A member retiring under the provisions of subsection (a) of this section, except disability retirements, may elect, with signed consent of his spouse, to withdraw all or a portion of his accumulated contributions and interest, and receive a reduced annuity. The annuity calculated in this subsection (i) shall be reduced an actuarially equal amount by applying factors adapted by the board of trustees upon recommendation of the retirement system's consulting actuary.

 

(1) Rollovers. The provision applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the retirement system plan to the contrary that

would otherwise limit a distributee's election under this provision, a distributee may

elect, at the time and in the manner prescribed by the board of trustees, to have any

portion of an eligible rollover distribution paid directly to an eligible retirement plan

specified by the distributee in a direct rollover.

 

a. Eligible rollover distributions. An eligible rollover distribution is any

distribution of all or any portion of the balance to the credit of the distributee,

except that an eligible rollover distribution does not include: any distribution

that is one of a series of substantially equal periodic payments (not less

frequently than annually) made for the life (or life expectancy) of the

distributee or the joint lives (or joint life expectancies) of the distributee and

the distributee's designated beneficiary, or for a specified period of ten years

or more; any distribution to the extent such distribution is required under

section 401(a)(9) of the Internal Revenue Code; and the portion of any

distribution that is not includable in gross income (determined without regard

to the exclusion for net realized appreciation with respect to employer

securities).

 

b. Eligible retirement plan. An eligible retirement plan is an individual

retirement account described in section 408(a) of the Internal Revenue Code,

an individual retirement annuity described in section 408(b) of the Internal

Revenue Code, an annuity plan described in section 403(b) of the Internal

Revenue Code, or a qualified trust described in section 401(a) of the Internal

Revenue Code, that accepts the distributee's eligible rollover distribution.

However, in the case of an eligible rollover to the surviving spouse, an

eligible retirement plan is an individual retirement account or individual

retirement annuity.

 

c. Distributee. A distributee includes a member or former member. In addition,

the member's or former member's surviving spouse and the member's former

spouse who is the alternative payee under a state domestic relations order

determined by the board of trustees, based on written procedures, to be a

qualified domestic relations order, are distributees with regard to the interest

of the spouse or former spouse.

 

d. Direct rollover. A direct rollover is a payment by the fund to the eligible

retirement plan specified by the distributee.

 

(j) Health insurance subsidy. A $50.00 monthly retiree health insurance subsidy shall be payable to eligible 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) Meet the rule of 80 requirements or have at least 25 years of creditable service; or

 

(3) Meet eligibility requirements for a duty disability retirement prior to May 1, 1996, as defined in section 2-1339.

 

(k) 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 (j) 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.

 

(l) 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. 2-1334. Termination benefits.

 

(a) Generally. Upon termination of office for any lawful reason other than death, a member of the retirement system established by this division shall be paid all his accumulated contributions with interest, and upon such payment all benefits and rights of the member and his beneficiaries shall terminate.

 

(b) Deferred annuity. Upon termination of office for any lawful reason other than death, a member who has completed one or more elective terms as now constituted who does not withdraw the member's contributions may elect to receive a deferred annuity as provided in section 2-1332. Should the member later choose to withdraw the member's contributions and interest before annuity payments begin, the member shall forfeit all rights to any and all benefits. The member may elect to withdraw the member's contributions within the thirty (30) day period prior to the deferred annuity effective date, as outlined in Section 2-1332(i).

 

Sec. 2-1339. 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. Elected officials 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 elected official 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 elected official 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 2-1333.

 

(2) Eligibility.

 

a. Duty disability shall mean total and permanent disability directly due to and

caused by actual performance of employment with the city. Elected officials

eligible for retirement as provided in section 2-1332(a) shall be ineligible for

duty disability retirement.

 

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

other cause than duty disability. At least ten years' creditable service is

required. Elected officials eligible for retirement as provided in section 2-1332(a) shall be ineligible for nonduty disability retirement.

 

(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.

 

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 incorporation in this Code of any unconstitutional phrase, clause, sentence, paragraph or section.

 

_________________________________________

 

Approved as to form and legality:

 

 

Assistant City Attorney