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Legislation #: 910593 Introduction Date: 5/9/1991
Type: Ordinance Effective Date: 5/16/1991
Sponsor: None
Title: Amending Division 5, Article IX of the Kansas City Administrative Code entitled "Pensions for Firemen" by adding a new Section A9.90.1(g4) "Health Insurance Subsidy" and by repealing Section A9.99 thereof and enacting in lieu thereof a new section of the same number and subject pertaining to administration and control of the fund; and is recognized as an emergency.

Legislation History
DateMinutesDescription
5/9/1991

Waive Charter Requirements City Council

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. 910593

 

Amending Division 5, Article IX of the Kansas City Administrative Code entitled "Pensions for Firemen" by adding a new Section A9.90.1(g4) "Health Insurance Subsidy" and by repealing Section A9.99 thereof and enacting in lieu thereof a new section of the same number and subject pertaining to administration and control of the fund; and is recognized as an emergency.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section A. Section A9.90.1, Division 5, Article IX, Administrative Code of Kansas City, Missouri, entitled "Pension Benefits" is hereby amended by adding a new section A9.90.1(g) is hereby enacted to read as follows:

 

Section A9.90.1. Pension Benefits.

 

(a) Voluntary or Compulsory Retirement Pension. Upon

such retirement, a member shall receive a monthly pension equal to two (2) percent of the member's average final compensation per month times the number of years and months of creditable service, not to exceed sixty (60) percent of the member's average final compensation.

 

(b) Optional Forms of Payment.

 

(1) Withdrawal. A member retiring with

twenty-five (25) or more years of service may elect to

withdraw all or a portion of his accumulated

contributions and receive a reduced lifetime pension.

This election will not affect the amount of the

surviving spouse's pension or the cost-of-living

adjustment.

 

The pension calculated in Section A9.9O.l(a) will

be reduced by applying factors to the amount withdrawn

as adopted by the Board of Trustees upon the

recommendation of the pension system' s consulting

actuary.

 

The member's spouse, if any, must sign appropriate

forms attesting consent.

 

(2) Joint Options. A member with twenty-five (25)

or more years of service may elect a reduced lifetime

pension. A percentage (100%, 75%, or 66 2/3%), as

specified in the election shall be paid to the

surviving spouse instead of the amount specified in

Section A9.93(a) (1).

 

This shall be calculated by multiplying the amount

otherwise payable by the appropriate factor adopted by

the Board of Trustees upon the recommendation of the

pension system's consulting actuary.

 

This option is irrevocable after the effective

date of the member's pension. It shall be effective

only if the spouse was married to the member on the

effective date of the member's pension and shall become

ineffective if either the spouse or the member dies

prior to the effective date of the pension.

 

This election will not affect the amount of the

cost-of-living adjustment.

 

The member's spouse, if any, must sign appropriate

forms attesting consent.

 

(c) Duty Disability Pension. Upon such

retirement, a member shall receive a monthly pension

equal to fifty (50) percent of the member's average

final compensation per month, but not less than fifty

(50) percent of the then current maximum salary payable

to the rank of a firefighter.

 

(d) Nonduty Disability Pension. Upon such

retirement, a member shall receive a monthly pension

equal to twenty (20) percent of the average final

compensation per month plus two (2) percent per year of

the member's average final compensation per month for

the number of years and months of creditable service in

excess of ten (10) years, not to exceed in any event, a

maximum monthly pension equal to sixty (60) percent of

the member's average final compensation per month.

 

(e) Minimum Benefits-Voluntary, Compulsory,

Disability Pensions. A minimum benefit of six

hundred dollars ($600.00) per month is established for

voluntary, compulsory and disability retirees. Such

minimum shall apply to current as well as future

retired members, effective with pension checks dated

August 1, 1986. Any annual cost-of-living adjustment

related to prior calculated benefits shall be based on

the original amount without reference to this minimum.

The provisions of Section A9.104, this division, when

applicable to certain disability retirements, shall

apply even if the net payments are less than the

minimum stated herein.

 

(f) Cost-of-Living Adjustment. In the case only

of members who retire after June 28, 1970, a

cost-of-living adjustment is authorized under these

conditions :

 

(1) Effective Date of Adjustment and

Applicability.

 

The Board of Trustees before April 1 of each

year shall determine the annual adjustment, if

any. The adjustment shall be payable on pension

checks to be dated May 1 of the current year and

shall remain unchanged until the next effective

date of adjustment. No pension of any member

retiring on or after January 1 of any year shall

be adjusted until May 1 of the succeeding year.

The cost-of-living adjustment shall not apply to

any child's allowance, funeral benefit or deferred

pension.

 

(2) Method of Determination and Amount.

 

(i) 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.

 

(ii) The change will be rounded to the

nearest full percent, and shall not exceed

three percent (3%). If the change exceeds

three percent (3%), the excess shall be

carried forward and added to adjustments

determined in future years and the maximum

three percent (3%) shall be paid until all

such excesses have been exhausted.

 

(iii) The change shall be applied to the

pension as calculated upon retirement date

without reduction for optional forms of

payment. The adjustment is not to be

compounded. No pension shall be reduced below

the original amount.

 

(g) Health Insurance Subsidy. There is hereby

established a plan to provide health insurance subsidy

payments to retired members of the Firefighters'

Pension System as provided herein:

 

1. Funding. A separate fund will be

established within the Firefighters' Pension

System for the purpose of providing a Health

Insurance subsidy to eligible annuitants

(A9.90.1(g4)).

 

Members will contribute 1% beginning May 20,

1991, toward the establishment of this fund.

Beginning May 1, 1992, the City will contribute 1%

toward funding. Contributions funding this

subsidy shall be in addition to contributions

required in Section A9.97. The dollar value of

these percentage contributions will be calculated

and collected by the methods used in Section

A9.97.

 

2. Effective Date. The Board of Trustees

before April 1 of each year shall determine the

dollar value of the annual health insurance

subsidy. The subsidy shall be payable on pension

checks of eligible annuitants (A9.90.1(g4)) to be

dated May 1 of the current year, beginning 1992,

and shall remain unchanged until the next

effective date of adjustment.

 

3. Method of Determination.

 

(i) Contributions to the Fund for the

current fiscal year will be estimated based

upon members' payroll.

 

(ii) This estimated amount plus earnings

as of January 1 of the current year will

serve as the basis for distributions. The

Fund's balance after distribution must equal

1% of members' annual payroll or $270,000

whichever is greater.

 

(iii) The basis as determined in (ii)

will be equally divided by all members

eligible on January 1 of the current year.

In no event will subsidy be greater than

carrier premiums.

 

4. Eligibility Requirements. The health

insurance subsidy shall be payable under the

following conditions until age 65:

 

The annuitant must:

 

(i) Be enrolled in the current retiree

health insurance program sponsored by the

City.

 

and

 

(ii) Have retired with at least 25 years

of creditable service

 

or

 

(iii) Meet eligibility requirements for

a duty disability retirement as detailed in

Section A9.92 (a), (c), (d) and (e).

 

The surviving spouse of a member who dies in

the performance of duty as a firefighter becomes

eligible for the health insurance subsidy

described above. If there is no surviving spouse,

a minor child, or children, eligible for pension

benefits under Section A9.32(2) KCAC will receive

the health insurance subsidy payment following the

death of a qualified member as long as the child

qualifies for pension benefit payments. Only one

subsidy is payable per member and if more than one

child qualifies as a surviving minor the subsidy

shall be paid in equal shares to all of the

qualifying children.

 

Section B. Section A9.99, Division 5, Article IX, Administrative Code of Kansas City, Missouri, entitled "Administration and Control of Fund; Accounting; Investments" is hereby repealed and a new section A9.99 is enacted in lieu thereof to read as follows:

 

Section A9.99. Administration and control of fund;

accounting; investments.

 

(a) The Board of Trustees shall be the trustees of the

pension fund created by this division. Such fund shall be considered as a trust fund of the City and accounted for as other trust funds of the City. The City Treasurer, Commissioner of Accounts, Director of Finance and other employees of the Finance Department of the City shall be responsible for the safekeeping and disposition of such funds to the same extent and with the same care as the funds of the City. All accounting of the pension system shall be kept and maintained by the Division of Accounts without charge to the pension fund. All payments from such pension fund shall be made by the Director of Finance or custodian of the fund on orders of the Board of Trustees signed by the secretary and one trustee.

 

(b) The Board of Trustees shall have full power to

invest and reinvest the pension fund in investments, including but not limited to, securities of the United States Government, Federal agency issues guaranteed for payment by the United States Government, state and municipal bonds, corporate bonds, equipment trust securities, preferred or guaranteed stock, real estate mortgages and common stocks.

 

(c) All bonds or securities acquired and held by the

board of trustees shall be kept in a safe depository, as any other, bonds or securities held by the city; provided however, when authorized by contract, custody of the securities may be surrendered for safekeeping to a bank or trust company, which shall give its receipt therefor to the authorized officers of the board. All securities owned by the board shall be subject to withdrawal and sale or exchange by order of the board of trustees as such board may deem proper and desirable.

 

Section C. 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