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Legislation #: 021393 Introduction Date: 11/14/2002
Type: Ordinance Effective Date: 1/19/2003
Sponsor: COUNCILMEMBER ASJES
Title: Amending Chapter 2, Code of Ordinances, by repealing Section 2-1176, Retirement benefits, and enacting in lieu thereof one new section of like number and subject matter, and adding new Sections 2-1196, 2-1197, 2-1198, 2-1199, and 2-1200 which establish a retirement incentive program.

Legislation History
DateMinutesDescription
11/14/2002

Referred Finance and Audit Committee

11/20/2002

Hold for Substitute

12/11/2002

Hold On Agenda

12/18/2002

Do Pass as a Committee Substitute

12/19/2002

Assigned to Third Read Calendar

1/9/2003

Passed as Substituted


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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 021393

 

Amending Chapter 2, Code of Ordinances, by repealing Section 2-1176, Retirement benefits, and enacting in lieu thereof one new section of like number and subject matter, and adding new Sections 2-1196, 2-1197, 2-1198, 2-1199, and 2-1200 which establish a retirement incentive program.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That Chapter 2, Code of Ordinances of the City of Kansas City, Missouri, is hereby amended by repealing Section 2-1176, Retirement benefits, and enacting in lieu thereof one new section of like number and subject matter, and adding new Sections 2-1196, 2-1197, 2-1198, 2-1199 and 2-1200 to read as follows:

 

Sec. 2-1176. Retirement benefits.

 

(a) Annuity. Upon retirement on or after November 1, 2000, 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 2.0 percent of the member's final average compensation multiplied by years and full months of creditable service not to exceed 70 percent, except as set forth in Section 2-1196, Code of Ordinances.

 

(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 2.22 percent of the member's final average compensation multiplied by years and full months of creditable service not to exceed 70 percent, except as set forth in Section 2-1196, Code of Ordinances.

 

(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 withdraw 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) Effective date of adjustment and applicability. An annual cost-of-living 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. This adjustment shall apply to all beneficiaries receiving benefits, except no pension of any member or beneficiary retiring after January 1 of any year shall be adjusted until May 1 of the succeeding year.

 

(2) Amount of Adjustment. The adjustment shall be three (3%) percent, each year, non compounded.

 

(d) Health insurance subsidy. A $200.00 monthly retiree health insurance subsidy shall be payable to all retired members effective November 1, 2000. If a member dies before retirement as the direct and proximate result of an accident sustained in the performance of assigned duties, the members 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) Minimum benefit. A minimum benefit of $400.00 per month is established for retirees with ten or more years of creditable service. Such minimum shall apply to current as well as future retirees, effective with pension checks dated July 1, 1999, calculated prior to any reductions applied due to sections 2-1176(a)(2) and 2-1176(b). Any annual cost-of-living adjustment shall be based on the original amount without reference to this minimum.

 

(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. 2-1196. Retirement incentive for members with effective retirement date between

February 1, 2003, and April 1, 2003--Established; eligibility.

 

A retirement incentive is established for eligible members of the retirement system with an effective retirement date between February 1, 2003, and April 1, 2003. A member must establish eligibility to elect one of the following incentives based on the provisions in Sections 2-1174, 2-1175, and 2-1176. If the member has at least ten years creditable service by March 31, 2003, any age enhancement or creditable service received under this section that results in the member qualifying for normal or optional retirement as defined in Section 2-1174 may be used to establish eligibility. Members must provide the retirement system with a completed intent to retire form no later than March 1, 2003 in order to receive these incentives.

 

(1) Three years service plus temporary annuity. Three years service plus temporary annuity benefits are as follows:

 

a. To establish eligibility, add three years' age and three years' creditable service to members under age 65 with at least ten years' creditable service to meet the requirements of normal or optional retirement.

 

b. To calculate the benefit, add three years service.

 

c. Using the formula set forth in Section 2-1176, Code of Ordinances, the annuity shall not exceed eighty percent of the members final average compensation.

 

d. Provide a $300.00 monthly temporary annuity to members until age 65.

 

(2) Three years' service. The three years' service incentive benefits are as follows:

 

a. To establish eligibility, add three years creditable service to members over age 65 with at least ten years creditable service.

 

b. To calculate the benefit, add three years service.

 

c. Using the formula set forth in Section 2-1176, Code of Ordinances, the annuity shall not exceed eighty percent of the members final average compensation.

 

Sec. 2-1197. Same--Annuity effective dates.

 

In order to ensure that city operations are not jeopardized by the simultaneous retirement of large numbers of critical personnel, the director of human resources may extend the deadline for the effective date of a retirement annuity established in section 2-1196 for up to ten percent of the annuitants, to a date not later than July 1, 2003.

 

Sec. 2-1198. Same--Annuitant receiving benefit enhancement ineligible to reenter city

employment for five years.

 

An annuitant who has received any benefit enhancement under the program established in section 2-1196 is ineligible to reenter employment in any capacity with the city for a period of five years. This ineligibility includes employment as a contract employee or through a temporary employment agency.

 

Sec. 2-1199. Same--City funding.

 

The city is to fund the retirement incentives established in section 2-1196 over a ten-year period. Effective May 1, 2003, the city shall contribute an amount, as determined by the system's actuary, required to fund the retirement incentives over a period of time not to exceed ten years.

 

Sec. 2-1200. Limit on additional retirement incentive programs.

The city will not institute another retirement incentive program of the nature of the program established by section 2-1196 during the actuarial payback, as set forth in section 2-1199.

 

___________________________________________

 

Approved as to form and legality:

 

 

______________________________

Assistant City Attorney