Subject: 10084/Pension Plan Date: Wed, 27 May 1992 07:45:00 -0500 ORDINANCE NO. 10084 AN ORDINANCE TO AMEND THE CHARTER OF THE CITY OF CHATTANOOGA, AND ALL ACTS AND ORDINANCES AMENDATORY THEREOF, PURSUANT TO THE PROVISIONS OF ARTICLE 11, SECTION 9, OF THE CONSTITUTION OF THE STATE 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 the City, and all Acts and Ordinances amendatory thereof, be and is further amended as follows: Item 1. The following provisions of the Charter of the City of Chattanooga be and the same are hereby deleted: Private Acts 1965, Ch. 254, as amended, A73(1.13), A73(1.14), A73 (1.15), A73(1.16), A73(4.09), A74.01(a) and (b), Ordinance No. 8688 A71(6) as amended, Ordinance No. 9766, A71(4) [A73.37(13), A73.37(14), A73.37(15), A73.37(16), A73.41(5), A73.45.1, and A73.45.2]. Item 2. The Charter of the City of Chattanooga, Private Acts 1965, Ch. 254, A73(4.06(e)), as amended, [A73.39(1)] be amended by deleting the first two sentences and substituting in lieu thereof the following: "Sec. 3.39. Financing of plan. (1) Employee contributions. Each participant shall pay to the city by payroll deduction an amount which shall be two percent (2%) of their earnings. Employee contributions shall be payable by a participant each payroll period during which he or she is a participant. The City Council, in its discretion, after, and only after, a recommendation has been received from the board of trustees, may by ordinance passed on three (3) separate readings, increase or decrease such employee contributions on or after July 1, 1969, and annually thereafter; provided, however, that such increase or decrease specified in said ordinance is the same as recommended by the board of trustees and is not inconsistent with any recommendation or report rendered by a qualified and accredited actuary as required by Section 3.02 [subsection (2) below]." Item 3. That Charter of the City of Chattanooga, Private Acts 1965, A75.01 and A75.02, as amended, [A73.41(1) and (2)] be amended to provide a new method of calculating normal retirement benefits and early retirement benefits as set forth below, and that the current A75.01 and A75.02 [A73.41(1) and (2)] be renumbered A75.01.1 and A75.02.1 [A73.41.1(1) and (2)]: "Sec. 3.41. Benefits; methods of calculation. (1) Normal retirement benefit. Any participant may upon retirement at his or her normal retirement date receive as an annual pension, payable in monthly installments beginning upon the last day of the first month following retirement and on the last day of each month thereafter during his lifetime, the sum of two percent (2%) of average earnings multiplied by years of credited service up to twenty (20) years plus one percent of average earnings multiplied by years of credited service in excess of twenty (20) years but disregarding years of credited service in excess of thirty (30) years so that the maximum annual benefit is fifty percent (50%) of average earnings. Provided that any employee who shall be vested as of the effective date of this amendment may have his or her normal retirement benefit calculated pursuant to the provisions of A75.01.1 [A73.41.1], but the remaining applicable provisions of this Section 5.01 [3.41] shall apply. (2) Early retirement benefit. A participant upon retirement on their early retirement date, shall as they may elect, receive either (a), (b), or (c) as follows: (a) A monthly deferred early retirement benefit, which shall be payable on his normal retirement date, provided he is then living and on the first day of each month thereafter during his lifetime, computed in the manner set forth in A75.01[3.41(1)] hereof, except that such computation shall be made as of his early retirement date. (b) Subject to the written approval of the board, an immediate monthly early retirement benefit shall be payable on the last day of the month after retirement and monthly thereafter during their lifetime, the amount of which shall be the amount of the benefit provided in subparagraph (a) next above reduced by five-twelfths (5/12) of one percent (1%) thereof for each full month in the period of time between their early retirement date and their normal retirement date. However, if the sum of the participant's age and years of credited service is at least eighty-five (85), there shall be no reduction in the immediate early retirement benefit. (c) Provided that any participant who shall be vested upon the effective date hereof, may have his or her early retirement benefits calculated pursuant to Section 5.02.1 [3.41.1(2)]. The remaining applicable provisions of this Section 5.01 [3.41] shall apply to employees selecting the calculation of benefits pursuant to A7 5.02.1 [3.41.1(2)]." Item 4. That Charter of the City of Chattanooga, Private Acts 1965, Ch. 254, A73(5.02)(a), as amended herein and renumbered A73 (5.02.1)(a)[A73.41.1(2)(a)] be further amended by deleting the period at the end thereof and adding the following: "and the deduction for social security shall be based upon an estimate of the primary insurance amount payable at age sixty-two (62), subject to adjustment of future payments based upon the primary insurance amount actually payable at age sixty-two (62)." Item 5. That Private Acts 1965, Ch. 254, A73(5.02)(b), [A73.41(2)(b)], as amended herein and renumbered A73 (5.02.1)(b) [A73.41.1(2)(b)], be further amended by adding thereto the following: "However, if the sum of the participant's age and years of credited service is at least eighty-five (85), there shall be no reduction in the immediate early retirement benefit, other than the adjustment for the primary insurance amount." Item 6. The Charter of the City of Chattanooga, Private Acts 1965, Ch. 254, A73(2.01), as amended, [A73.38(b)] be further amended by deleting: "which follows February 1, 1979, or the date thereafter that he first completes six (6) full months as an employee." 0C and substituting in lieu thereof the following: "following their employment." 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 11, 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 11, 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 (2) weeks from and after its passage as provided by law. PASSED on Third and Final Reading August 16, 1994. s/s ______________________________ CHAIRPERSON APPROVED: __X___ DISAPPROVED:_____ DATE: August 18, 1994. s/s _____________________________ MAYOR MAM:meb