Subject: 9778/Amend Charter/Firemen-Policemen Insurance & Pension Date: Fri, 18 Aug 1989 14:54:00 -0500 ORDINANCE NO. 9778 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 FIREMEN'S AND POLICEMEN'S INSURANCE AND PENSION FUND. 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 the Private Acts of 1949, Chapter 165, Section 13, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.74, and substituting in lieu thereof the following: Sec. 13.74. Disability or Death Benefits From Cause Not Resulting From Performance of Duties. (a) Any member with not less than three (3) years nor more than ten (10) years of active service in the fire and police department who shall become disabled from causes arising outside of the course of his or her employment with the fire and police department shall so long as they remain disabled be paid a monthly sum equal to thirty percent (30%) of the disability benefit the member would have been entitled to if same member's disability was the result of a 0C disability resulting from injuries received in the performance of his or her duty in the fire and police department; plus two percent (2%) of the said service connected disability benefit for each year's active service in the fire and police department over ten (10) years but not to exceed fifty percent (50%) of such benefit. Payment under this Section shall commence after the member's sick days, annual days, accumulated days, compensatory days, and annual leave days have been exhausted. A member will not be eligible for disability benefits nor their spouse eligible for periodic death benefits under this Section if disability or death is a result of any of the following: (1) Excessive and habitual use by the plan member of drugs, intoxicating liquors and narcotics unless such member is actively and continuously undergoing treatment at an approved clinic or treatment center for drug addicts and alcoholics. (2) Injury or disease sustained by the plan member while willfully and illegally participating in acts of violence, riots, civil insurrections, or while committing an unlawful act. (3) Injury or disease sustained by the plan member while serving in any Armed Forces or as the result of warfare. (4) Injury or disease sustained by the plan member after his employment has been terminated. (5) Injury or disease sustained by the plan member working for anyone other than the City and arising out of such employment. (6) Intentional, self-inflicted injury. Before approving any disability retirement request, the Board may request proof of disability on the verification by one or more competent physicians selected by the Board that the member has become disabled in accordance with the pension fund provisions. The Board may further require continued medical examinations of the disabled member from time to time and at its discretion. No member shall be given disability benefits under this Section if the Board finds that said disability can probably be successfully corrected by competent medical treatment, and said member fails or refuses to be so treated. The term "disabled" or "disability" in this Section shall mean a medically determinable impairment which in the opinion of the Board prevents such member from meeting the normal and reasonable demands of his regularly assigned job or any other job in city government which the City may offer said member for which he or she is reasonably qualified by experience, training, or education. (b) (1) If any member with less than ten (10) years of active service dies before retirement from any cause not growing out of and not in consequence of his or her duty in the fire and police department, there shall be paid to their beneficiary the death benefit of $10,000.00 and to the surviving spouse the sum of $300.00 per month until death or remarriage, subject to the conditions of Section "(a)" of this Section. (2) If a member has more than ten (10) years of active service but less than the time required for a service retirement pension and dies before retirement from any cause not growing out of and not in consequence of his or her duty in the fire and police department, there shall be paid to their beneficiary a death benefit of $10,000.00 and to the surviving spouse until death or remarriage that benefit which said spouse would have been entitled to receive under Option D., Section 13.82 of this fund, subject to the conditions of Section "(a)" of this Section. (3) If any member dies before retirement and has reached the conditions for a service retirement pension, there shall be paid to said member's beneficiary a death benefit of $10,000.00, and if said member was an employee on November 3, 1992, the surviving spouse shall be paid the sum of $300.00 per month until death or remarriage if said member has not designated the spouse as a beneficiary under one of the options listed in Section 13.82. If there is no election, the surviving spouse shall receive the benefit paid under Option D., Section 13.82. If a member who is employed after November 3, 1992, shall die before retirement and has reached the conditions for a service retirement pension, there shall be paid to the beneficiary of said member a death benefit of $10,000.00 and the benefits elected under Section 13.82. (c) If there be no surviving spouse or if the surviving spouse becomes disqualified, then the dependent's minor child or children shall each receive $100.00 per month during their minority, provided that the total amount payable to all of such children shall not exceed the maximum pension. If such deceased member is not survived by spouse or minor children, but is survived by two parents solely dependent upon said member, each parent, so long as he or she has no other means of support, shall receive one-half (1/2) of the benefits to which a surviving spouse would receive under this Section. If there is only one parent dependent upon such member for support, such parent shall be paid the same benefits which a surviving spouse would receive under this Section. Item 3. That the Private Acts of 1949, Chapter 165, Section 15, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.75, and substituting in lieu thereof the following: Sec. 13.75. Service Retirement Pension; Maximum Pension Benefits; Death Benefit. (a) From and after July 1, 1993, a member of the fund who was employed in the fire and police department on November 3, 1992, may at his or her election retire upon completion of twenty-five (25) years of active service in the fire and police department, and upon notifying the Board in writing of such election, receive an annual service retirement pension, payable in twelve (12) monthly installments in an amount equal to sixty percent (60%) of the average base salary of a member of the police department who receives the maximum salary in the salary range and step of Private in the police department classification as set forth in the classification of positions in the police department during the three (3) years of the member's service which yield the highest average; plus two percent (2%) of the aforesaid salary, for each year in excess of twenty-five (25) years he or she was in the active service of such department not to exceed five (5) years. In the event of change of the name of said classification of Private in the police department, it shall be that position by whatever name it may hereafter be called. (b) A member who becomes employed in the fire and police department after November 3, 1992, may at his or her election retire after attaining fifty-five (55) years of age and the completion of twenty-five (25) years of active service in the fire and police department and upon notifying the Board in writing of such election, will receive an annual service retirement pension payable in twelve (12) monthly installments in an amount paid to retirees in Part "(a)" of this Section who complete twenty-five (25) years of active service in the fire and police department; plus two percent (2%) of the salary set out in Part "(a)" for each year in active service following eligibility for retirement, not to exceed five (5) years. (c) Upon the death of any member employed on November 3, 1992, who is retired under the provisions of this Section, or upon the death of such member prior to retirement, but eligible for benefits under this Section, there shall be paid to said member's beneficiary a death benefit of $10,000.00, and the benefits under Section 13.82, and the surviving spouse shall be paid, the sum of $300.00 per month until death or remarriage if said spouse is not a beneficiary under one of the options listed in Section 13.82. If the member has not elected any option prior to his or her death, a benefit shall be payable to the deceased's surviving spouse, if any, as though he or she had elected Option D., Section 13.82. If a member who is employed after November 3, 1992, shall die before retirement and has reached the conditions for a service retirement pension, there shall be paid to his or her beneficiary, or beneficiaries the death benefit of $10,000.00 and such benefits elected under Section 13.82. (d) The City Council, City of Chattanooga, in its discretion, only after a recommendation has been received by the Board of Directors of the Firemen's and Policemen's Insurance and Pension Fund, may, by ordinance passed on three separate readings, increase such pension benefits in this Section or any Section of the Private Acts of 1949, Chapter 165, as amended; provided that such increase is not inconsistent with sound actuarial principles, methods, and actuarial assumptions. (e) Those benefits payable to participants retired prior to the date of the passage of this amendment or beneficiaries of those members retired prior to the date of the passage of this amendment shall continue under the provisions in effect at the time such benefit was granted except where specifically amended or modified to include such participants or beneficiaries. Item 4. That the Private Acts of 1949, Chapter 165, as amended and as codified as Chattanooga City Code, Part I, Section 13.83 et seq., be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.83 and substituting in lieu thereof the following: Sec. 13.83. Definition of Terms. 1. The term "Member" shall mean an employee of the Chattanooga Police and Fire Department who is a regular fireman, policeman, or detective. An employee hired into the Safety Department to be a regular fireman, policeman, or detective shall not become a member until he or she completes all training required for the position and is sworn, nor shall he or she be eligible for participation in the General Pension Plan. 2. The term "Board" shall mean the Board of Directors of the Chattanooga Firemen's and Policemen's Insurance and Pension Fund. 3. The term "Fund" shall mean the Chattanooga Firemen's and Policemen's Insurance and Pension Fund created by Chapter 165 of the Private Acts of 1949, as amended. 4. The term "Maximum Pension" shall mean a pension equal to sixty percent (60%) of the average base salary of a member of the Chattanooga Police Department who receives the maximum salary in the salary range and step to Private in the police department classification as set forth in the classification of positions in the police department during the three (3) years of the member's service which yield the highest average. In the event of change of the name of said classification of Private in the police department, it shall mean that position by whatever name it may hereafter be called. 5. The term "Average Base Salary" or "Base Salary" shall mean the regular wages or salary paid on a monthly basis, but shall not include overtime pay or any supplements, including but not limited to supplements for years of service or education. 6. The term "Active Service" shall mean that period of time after the date of permanent employment as a sworn officer with POST certification in the Chattanooga Police Department or a sworn officer with permanent employment in the Chattanooga Fire Department, that the member serves and is paid from the payroll of the Chattanooga Fire and Police Department. 7. The term "Service Retirement Pension" shall mean the pension of a member who is employed on November 3, 1992, in the Chattanooga Fire and Police Department, shall be entitled to receive upon completion of twenty-five (25) years of active service; or the pension of a member who becomes employed by the fire and police department after November 3, 1992, shall be entitled to receive after attaining fifty-five (55) years of age and the completion of twenty-five (25) years of active service in the Chattanooga Fire and Police Department. Item 5. That the Private Acts of 1949, Chapter 165, Section 4, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.66, and substituting in lieu thereof the following: Sec. 13.66. Assessment of Employees. Each and every member of the Department of Fire and Police, except those employees of the Department who are not now contributing to the Pension Fund, shall be assessed a sum to be fixed by a majority vote of the Board of Directors of the Firemen's and Policemen's Insurance and Pension Fund, which shall be not less than eight percent (8%) of each member's actual salary but not to exceed eight percent (8%) of the salary of such member of the Police Department who receives the maximum base salary in the salary range and step of the grade of Sergeant. In the event of the change of the name of said classification it shall be that position by whatever name it may hereafter be called. Said amounts shall be deducted and withheld from the salary of each member during all the time such employee may be a member of said fire and police department and it shall be the duty of the city officer to pay the total amount of deduction so withheld to the Firemen's and Policemen's Insurance and Pension Fund at the times regular salaries are paid, and said funds shall be kept by the said Trustee as part of the Firemen's and Policemen's Insurance and Pension Fund in accordance with the provisions of the Charter of the City of Chattanooga. Item 6. That the Private Acts of 1949, Chapter 165, Section 16, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.76, and substituting in lieu thereof the following: Sec. 13.76. Disability or Death Benefits from Cause Resulting from Performance of Duty. (a) If any member of the department of fire and police while engaged in the discharge of his or her duties shall receive injuries resulting in such employee becoming disabled from performing duties in the fire or police department, he or she shall be placed on a pension and paid sixty percent (60%) of the member's salary as computed over the highest three (3) years of salary during the member's years of active service, but in no event in excess of a maximum pension, regardless of the length of time served; provided, however, that the member shall make application to the Board on a form to be provided by said Board, which application shall be accompanied by proof of facts entitling disability retirement, or proper medical proof of disability; provided further that before such member shall be retired on a pension the Board may have him or her examined by competent physicians to determine whether or not such disabled member is unable to discharge his or her regular duty or any other duty that may be required of him or her by officials of the department of the fire and police. Due notice of application shall be recorded by the secretary and the applicant shall be notified five (5) days in advance, unless waived by applicant, of the hearing by the Board on his or her application. No member shall be retired on a pension under this Section because of injury until six (6) months after such injury was received. Any employee retired on a pension because of an injury, in the event of recovery to the extent that he or she is again able to perform any duty required of him or her, shall be removed from the pension roll and reinstated in service. If such employee who has been placed on the pension roll refuses to allow himself or herself to be examined by physicians selected by the Board, the Board shall have the right to suspend his or her pension until such time as he or she may permit an examination by the physicians selected by the Board. No member shall be given disability benefits under this Section if the Board finds that said disability can probably be successfully corrected by competent medical treatment, and said member fails or refuses to be so treated. (b) If any member shall die prior to retirement from any injury suffered in line of duty, or receive injuries while engaged in the performance of their duties resulting in death within six (6) months thereafter, and shall leave a surviving spouse, said surviving spouse shall be entitled, unless receiving benefits under Section 13.82, to receive until his or her death or remarriage the benefit herein provided for a member receiving a disability benefit under this Section. If there be no surviving spouse or if the surviving spouse becomes disqualified, then the dependent child or children shall each receive $100.00 per month during the minority, provided that the total amount payable to all of such children shall not exceed the maximum pension. If such deceased member is not survived by spouse or minor children, but is survived by two parents solely dependent upon said member, each parent so long as he or she has no other means of support, shall receive one-half (1/2) of the benefits to which a surviving spouse would receive under this Section. If there is only one parent dependent upon such member for support, such parent shall be paid the same benefits which a surviving spouse would receive under this Section. (c) Upon death of any member who retires under the provision of this Section, there shall be paid to his or her beneficiary or beneficiaries the sum of $10,000.00. Item 7. That the Private Acts of 1949, Chapter 165, Section 17, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.77, and substituting thereof the following: Sec. 13.77. Refund to Member Terminating Employment. If the employment of a member is terminated for any reason, and said member cannot qualify for benefits under any provisions of this Plan, said member shall be entitled to receive at the time of said termination 100% of whatever sums he or she contributed to the fund. If such member is subsequently reemployed in the fire and police department, he or she shall at the time of reemployment reimburse the fund to the full extent of the amount he or she received from the fund upon said termination with interest compounded annually and computed at the rate utilized in the actuarial evaluation of the plan during their periods of absence from the date of said withdrawal to the date of reemployment. Any such employee withdrawing monies from the fund pursuant to the provisions herein shall not be eligible for reinstatement or reemployment in the fire and police department until they shall have paid back the said monies. Item 8. That the Private Acts of 1949, Chapter 165, Section 19, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.79, and substituting thereof the following: Sec. 13.79. Termination of Employment After Ten Years of Service; Vesting; Death After Termination. A member who has completed ten (10) or more years of active service at the time of his or her termination of employment shall have the right to either (1) or (2) as follows: (1) A right to receive a 100% refund of whatever sums he or she contributed to the fund. (2) A right to leave his or her contribution in the fund and be eligible to receive after reaching fifty-five (55) years of age a monthly deferred vested retirement benefit equal to 2.4% of his or her average monthly salary as computed over the highest three (3) years of pay during the member's years of service for each year of active service, subject to a maximum of twenty-five (25) years, but not to exceed 2.4% of the monthly salary of such member of the Police Department who receives the maximum salary in the salary range and step of the grade of Private in the police department classification as set forth in the classification of positions. If the death of such member occurs prior to commencement of the payment of any benefits under this Section, a refund of whatever sums such member contributed to the fund shall be paid to the member's estate, and his or her beneficiary shall be paid a death benefit sum of $10,000.00. If death occurs following the commencement of eligibility to receive benefits under this Section, benefits shall be payable according to the terms elected under Section 13.82. If there is no election a surviving spouse shall receive the benefit paid under Option D. Item 9. That the Private Acts of 1949, Chapter 165, Section 23, as amended, be amended by deleting what has been codified as Chattanooga City Code, Part I, Section 13.82, 13.82.1, 13.82.2, and substituting thereof the following: Sec. 13.82. Optional Retirement Benefits. 1. When a member reaches the conditions for retirement benefits under Section 13.75; or qualifies to reach the conditions for retirement benefits under Section 13.75 and qualified for retirement benefits under Section 13.76; or is eligible to commence receiving retirement benefits under Section 13.79, he or she may elect to have the pension benefits under said Sections converted into an optional retirement benefit which is the actuarial equivalent of such benefit based upon mortality basis approved from time to time by the Board, and the age of the member and of the beneficiary as of the date the member becomes eligible to exercise the election. The optional retirement benefits may take one of the forms listed below and for members who become employed after November 3, 1992 there shall be paid to the beneficiary or the option selected by such member under this Section; but for a member who was an employee on November 3, 1992, the surviving spouse shall receive the sum of $300.00 per month for life or until remarriage, if the said member has not designated the spouse as a beneficiary under one of the option forms listed below. OPTION A: 120 Payments Certain and Life Option A decreased retirement benefit payable for life with the first 120 payments guaranteed. Any guaranteed payments due after the death of the retired participant shall be payable to the designated beneficiary, if any who survives the retired participant, or the estate of the retired participant if there is no surviving designated beneficiary. OPTION B: Joint and Survivor Option A decreased retirement benefit payable to the retired participant for life shall continue after his or her death to their surviving beneficiary at 100% of that payable to the retired participant. OPTION C: Modified Joint and Survivor Option A decreased retirement benefit payable to the retired participant for life which shall continue after his or her death to their surviving beneficiary at 75% of that payable to the retired participant. OPTION D: Modified Joint and Survivor Option A decreased retirement benefit payable to the retired participant for life which shall continue after his or her death to their surviving beneficiary at 50% of that payable to the retired participant. 2. Application for any optional retirement benefit shall be in writing, duly executed, and filed with the Board. Such application shall contain all information required by the Board, including such proofs of age as are deemed necessary by the Board. A retirement option selected at the time of eligibility may only be changed by written notice of the new election filed with or prior to his or her application for retirement and subject to such requirement as the Board may require. 3. If an active member dies after he or she has reached the aforesaid conditions for retirement benefits, any option they may have elected, in lieu of their otherwise retirement benefit, shall be payable as though he or she had been entitled to have such optional benefit commence on their date of death. Item 10. That the Private Acts of 1949, Chapter 165, Section 22, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.81, and substituting in lieu thereof the following: Sec. 13.81. Cost of Living Adjustments to Pension Benefits. The benefits payable to retired members who are retired on the passage of this amendment, and have attained fifty-five (55) years of age, or any of their survivors or beneficiaries, shall be increased upon the passage of this amendment, and by each January 1, by the percentage increase in the Consumer Price Index as of the most recent September 30 over the said index one year before that date, not in excess of 3%. The benefits payable to those who retire following the passage of this amendment who have attained fifty-five (55) years of age shall likewise be increased following twelve (12) months after the date such benefits commenced, each by January 1, by the percentage increase in the Consumer Price Index as of the most recent September 30 over the said index one (1) year before that date, not in excess of 3%. If the heretofore percentage is negative for any one year, it shall be deemed to be zero for purposes of this Section. Item 11. That the Private Acts of 1949, Chapter 165, Section 10, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.70, by adding the words "active members" in the first sentence of the Section between the words "be" and "from," and by deleting the numbers "7:00" in the first sentence of Paragraph 2 and substituting thereof the numbers "6:00." Item 12. That the Private Acts of 1949, Chapter 165, Section 7, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.67, by deleting the words "each month." Item 13. That the Private Acts of 1949, Chapter 165, Section 18, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.78, by adding the words "assignable nor" after the words "shall not be." Item 14. That the Private Acts of 1949, Chapter 165, Section 2, as amended, be amended, in what has been codified as Chattanooga City Code, Part I, Section 13.63, by deleting the words "board of commissioners" wherein found in the said Private Acts and substituting thereof the words "City Council," and by deleting from Section 14, the word "employees" in the first sentence of said Section and substituting in lieu thereof the word "member." Item 15. That the Private Acts of 1949, Chapter 165, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.80, by deleting this Section. Item 16. That the Private Acts of 1949, Chapter 165, Section 14, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.73, by deleting the word "two" before "competent physicians" and by deleting the words "perform their duties" and inserting in lieu thereof the words "perform duties in the fire and police department." Item 17. That the Private Acts of 1949, Chapter 165, Section 11, as amended, be amended in what has been codified as Chattanooga City Code, Part I, Section 13.71, by adding the words "and President" in the third sentence between the words "secretary" and "shall," and by adding after the said sentence the following: "The Secretary shall maintain a record or document to be known as the list of retired firemen and policemen and their spouses; which record or document shall give a full and complete record of all pensions being paid; the action of the Board in retiring any and all persons under this Act, including the names, dates of employment in the department, date of retirement, and the reasons therefore as to all persons retired." This Section be further amended by adding the words "and President" in the fourth sentence after the word "secretary." 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. 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. 0C PASSED on Third and Final Reading August 18, 1992. s/s_________________________________ CHAIRPERSON APPROVED:_______ DISAPPROVED:_______ DATE:__________________ _____, 1992. s/s_________________________________ MAYOR MAM(AR):cjc