Subject: 9766/Amend Charter/Pension(General) Date: Fri, 18 Aug 1989 14:54:00 -0500 ORDINANCE NO. 9766 AN ORDINANCE TO AMEND THE CHARTER OF THE CITY OF CHATTANOOGA, AND ALL ACTS AMENDATORY THEREOF, PURSUANT TO THE PROVISIONS OF ARTICLE 11, SECTION 9, CONSTITUTION OF TENNESSEE, RELATIVE TO CHANGES TO THE GENERAL PENSION PLAN. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE: SECTION 1. That the present Charter of said City, and all Acts amendatory thereof, be and is further amended as follows: "Item 1. The Charter of the City of Chattanooga shall be amended as provided hereafter. Item 2. That Private Acts 1965, Chapter 254, Section 4.06 [subsections (6) and (7)], be deleted and the following substituted in lieu thereof: (6) Disability Pensions. (a) The board of trustees shall establish a disability pension plan for persons who become disabled in the line of duty or not in the line of duty. The trustees may fulfill this obligation by purchasing a commercial disability insurance policy, by establishing a self-funded disability plan administered by an insurance company or other qualified administrator, or by any combination thereof. This disability program may provide for partial disability payments for employees who recover sufficiently to become gainfully employed, but who are not recovered sufficiently to return to their normal employment or occupation. 0C (b) For the purposes hereof, the phrase "disabled in the line of duty" shall generally relate to those disabilities proximately caused by acts or incidences occurring as a result of employment with the city; however, the trustees may purchase insurance policies with different definitions. The trustees are also authorized to adopt a more specific definition of disability with respect to a self-funded program. (c) For the purposes hereof, the phrase "disabled not in the line of duty" shall refer to those disabilities that do not qualify as "disabled in the line of duty." The trustees may purchase insurance policies with different definitions of "disabled not in the line of duty" or may established a more specific definition with respect to a self-funded program. Employees with more than ten years credited service shall be eligible to receive a "disabled not in the line of duty" pension that is funded by the trustees. The trustees may make available to employees with less than ten years of credited service the same benefits or a different level of benefits, but the cost of the policy or benefit program for those having less than then years of credited service shall be borne by the employees through payroll deductions or paid for by the city as a fringe benefit. (d) For the purposes hereof, the words "disabled" or "disability", shall refer to a medically determinable bodily injury, disease, or condition or mental disorder so that during the continuation thereof the person is unable to perform the duties of his occupation or employment. The trustees may purchase insurance policies with different definitions, including definitions of "partial disability", or adopt more specific definitions in a self funded disability program. 0C (e) For the purposes hereof, the phrases "partial disability" or "partially disabled" shall refer to those medically determinable bodily injury, disease, or condition or mental disorder which prevents a person from following his normal employment or occupation, but which does not disable the employee from other employment or occupations for which he or she is qualified by reasons of education, training, or experience or for which he or she can be reasonably trained. The trustees may purchase insurance policies with different definitions or adopt a more specific definition in a self funded disability program. (f) Employees who become totally disabled as a result of an injury in the line of duty continue to accrue credited service for those period of time in which they are totally disabled. The accrual of such credited service shall end at the normal retirement date of the employee. (g) Except to the extent otherwise provided by any policy or self-funded program, no employee shall be entitled to disability benefits under the section if the disability may be corrected by competent medical treatment, and said employee fails or refuses to be so treated. Employees may be required to undergo medical examinations by physicians selected by the insurance carrier or Trustee to establish eligibility for a disability pension. If a disability pension is approved, employees shall thereafter be subject to periodic medical examinations by physicians selected by the Trustees or the insurance carrier to maintain their eligibility for disability pension payments. (7) Physical examination. The trustees or insurance carrier, before granting any disability pension, may require the applicant to submit to a physical examination by one or more physicians designated by said trustees or insurance carrier. Each person drawing any disability pension shall be subject to periodic examination by a physician selected by the trustees or insurance carrier at the expense of the fund or carrier. Item 3. That Private Acts of 1965, Chapter 254, as amended, particularly by the amendment adopted pursuant to Ordinance 7408, adopted August 22, 1978, Item 5 be amended by deleting said provision in its entirety and substituting in lieu thereof the following: "Refund interest rate shall mean the rate of six (6) per cent per annum." Item 4. That the Private Acts 1965, Chapter 254, be amended by adding a new section as follows: "Minimum Benefit. Notwithstanding the provisions hereof an employee of normal retirement age with twenty-five or more years of credited services whose retirement benefit calculated under other provisions of this plan after adjustment for social security is less than the product of 1.1% times the average earnings for the highest paid three (3) full calendar years of credited service times the number of full years of credited service shall receive the product of this calculation as a minimum benefit in lieu of the normal retirement benefit." Item 5. That the Private Acts 1965, Chapter 254, Section 3.01, as amended, particularly by Private Acts 1967, Chapter 169, and pursuant to Ordinance No. 7408, dated August 22, 1978, be amended by adding thereto the following: "Notwithstanding the provisions hereof employee contributions may be "picked up" by the city pursuant to Section 414(h) of the Internal Revenue Code." 0C Item 6. That the Private Acts 1965, Chapter 254, Section 3, concerning the establishment of medical and/or life insurance programs be deleted. Item 7. That the Private Acts 1965, Chapter 254, as amended, be amended further so as to delete any and all reference to "City Commission" or "Commission" and substitute in lieu thereof "City Council" or "Council," respectively, and to delete any and all references to "City Auditor" and substitute in lieu thereof "City Personnel Director." Item 8. That the Private Acts 1965, Chapter 254, as amended, particularly pursuant to Ordinance No. 8688, dated August 19, 1986, Item (6), be amended to delete the date "December 31, 1987," and substitute in lieu thereof "June 30, 1993" and to delete the second sentence of paragraph (a) and the last sentence of paragraph (b). FOR THE AMENDMENT ( ) AGAINST THE AMENDMENT ( ) SECTION 2. BE IT FURTHER ORDAINED, that all laws constituting the present Charter of the City of Chattanooga, not in conflict with this amendatory home rule ordinance, be and the same are continued in full force and effect, and all laws or parts of laws in conflict therewith are hereby repealed. 0C SECTION 3. BE IT FURTHER ORDAINED, that if any clause, sentence, paragraph, section, or part of this ordinance shall be held to be unconstitutional or void, it shall not affect the remaining parts of this Ordinance, it being hereby declared to be the legislative intent to have passed the remainder of this Ordinance notwithstanding such part, if any, as may be held to be invalid. SECTION 4. BE IT FURTHER ORDAINED, that this Ordinance shall be published in full by the Clerk of the City Council in both daily newspapers in the City of Chattanooga after the final passage by the City Council, for approval in a referendum, all as required by Article XI, Section 9, Constitution of Tennessee. SECTION 5. BE IT FURTHER ORDAINED, that the Clerk of the City Council shall certify the passage of this Ordinance to the Hamilton County Election Commission and request that the proposed amendment to the home rule Charter of the City of Chattanooga, be placed on the ballot to be used in the next general state election. SECTION 6. BE IT FURTHER ORDAINED, that the City Finance Officer is authorized and directed to pay the pro rata cost of this special City election. SECTION 7. BE IT FURTHER ORDAINED, that the Hamilton County Election Commission shall certify to the Clerk of the City Council of the City of Chattanooga, Tennessee, the result of said election, and the Clerk of the City Council shall cause said certification to be made a part of the minutes of the City Council. SECTION 8. BE IT FURTHER ORDAINED, that Section 1 of this Ordinance shall take effect sixty (60) days after its approval by a majority of the qualified voters of the City voting thereon, as provided by Article XI, Section 9, Constitution of Tennessee, the public welfare requiring it. SECTION 9. BE IT FURTHER ORDAINED, that this Ordinance shall take effect, except for Section 1, two weeks from and after its passage as provided by law. PASSED on Third and Final Reading August 11, 1992. s/s_________________________________ CHAIRPERSON APPROVED:_______ DISAPPROVED:_______ DATE:__________________ _____, 1992. s/s_________________________________ MAYOR MAM:cjc