ORDINANCE NO. 051548
Amending Article IX, Pensions and
Other Benefits, of Chapter 2, Administration, of the Code of Ordinances by
repealing Section 2-1332, Eligibility; retirement benefits, and enacting in
lieu thereof a new section of like number and subject matter.
BE IT ORDAINED BY THE
COUNCIL OF KANSAS CITY:
Section 1. That
Article IX, Pensions and Other Benefits of Chapter 2, Administration, Code of
Ordinances of the City of Kansas City, Missouri is hereby amended by repealing
Section 2-1332, Eligibility; retirement benefits, and enacting in lieu thereof
a new section 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 either the expiration of his last term of
office or the date of attaining mandatory retirement age if that date occurs
during a term of office, whichever occurs later, and payable until the first
day of the month following death. Nothing herein shall be construed as
preventing or limiting an elected officials ability after serving one elective
term to retire prior to the completion of a term of office and receive an
annuity computed in accordance with the retirement date selected by the elected
official.
(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. For those elected officials whose service terminates on or after November 1, 2000, the annuity shall be 2.22 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 70 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:
(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.
(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 1/2 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 to
either his retirement date or his attaining mandatory retirement age, whichever
occurs first. 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 $200.00 monthly retiree health insurance subsidy shall
be payable to all retired members effective November 1, 2000.
(k) 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.
_________________________________________________
Approved
as to form and legality:
____________________________
Galen
Beaufort
City
Attorney