Subject: 10642/Code/Ch.16/F&PPensionAmendments Date: Thu, 17 May 1990 11:50:00 -0500 ORDINANCE NO. 10642 AN ORDINANCE TO AMEND CHATTANOOGA CITY CODE, PART II, CHAPTER 16, SO AS TO PROVIDE AN INCREASE IN BENEFITS UNDER THE FIREMEN'S AND POLICEMEN'S INSURANCE AND PENSION FUND. WHEREAS, the Board of Directors of the Firemen's and Policemen's Insurance and Pension Fund have recommended an increase in certain pension benefits as set forth herein; and WHEREAS, such increase is not inconsistent with sound actuarial principles, methods and actuarial assumptions; NOW, THEREFORE, SECTION 1. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE, That Chattanooga City Code, Part II, Chapter 16, be and is hereby amended by adding thereto a new Article VI as follows: ARTICLE VI. PENSION BENEFITS Sec. 16-163. Purpose. The purpose of this Article is to set forth increases in benefits to the Firemen's and Policemen's Insurance and Pension Fund enacted by ordinance pursuant to the provisions of Section 13.75(d) of Chattanooga City Code, Part I. The numbers of this Article will correspond to but will be one hundred (100) higher than the section numbers of the Firemen's and Policemen's Insurance and Pension Fund as codified in Part I of this Code. Secs. 16-164 -- 16-173. Reserved. Sec. 16-174. Increased disability benefits from causes not resulting from performance of duties. Notwithstanding the provisions of Chattanooga City Code, Part I, Section 13.74(a), the following benefits are provided in lieu thereof: 0C (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 or Police Department shall so long as they remain disabled be paid a monthly sum equal to thirty percent (30%) of the average base salary of such member, but not to exceed the maximum salary in the salary range and step of sergeant 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 said defined average base salary for each year of active service in the Fire and Police Department over ten (10) years, but not to exceed sixty percent (60%) of the above defined average base salary. Payment under this section shall commence after the member's sick days, annual leave days or personal leave days have been exhausted. Any member with less than three (3) years of service, who shall become disabled from causes arising outside of the course of his or her employment with the Fire and Police Department, shall be refunded his or her contributions under the provisions of Section 13.77. In the event of death of any member with less than three (3) years of service, the $10,000.00 death benefit shall be paid to his or her beneficiary and his or her contributions shall be refunded to his or her estate. 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) Intentional, self-inflicted injury. If a member is not qualified for benefits under this Section, he or she may receive a refund of his or her contributions. In the event of the death of a member, when the death is a direct result of any of the above stipulations, his or her contributions shall be refunded to his or her estate. Before approving any disability retirement request, the Board may request proof of disability or 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 or her 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 a benefit equal to Option D, Section 13.82 or the sum of $300.00 per month until death, whichever is greater, subject to the conditions of Section "(a)" of this Section. If a member dies after retirement under this Section, the $10,000.00 benefit shall be paid to their beneficiary, and to the surviving spouse that benefit selected by the member under Section 13.82 of this Fund. (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 the 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. If a member dies after retirement under this Section, the $10,000.00 death benefit will be paid to their beneficiary, and to the surviving spouse that benefit selected by the member under Section 13.82 of this Fund. (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 sum of $300.00 per month shall be paid to the surviving spouse 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 is 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. Secs. 16-175 -- 16-181. Reserved. Sec. 16-182. Optional retirement benefits. Notwithstanding the provisions of Chattanooga City Code, Part I, Section 13.82, the following benefits are provided in lieu thereof: 1. When a member reaches the conditions for retirement benefits under Chattanooga City Code, Part I, Sections 13.75, 13.76, 13.74, 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. OPTION E: Modification of Option B A decreased retirement benefit, subject to an actuarial reduction, 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 provided, that if such designated beneficiary shall predecease the retired participant, the retirement benefit payable to the participant after death of the designated beneficiary, shall be equal to the retirement benefit which would have been payable had the member not elected an option. OPTION F: Modification of Option C A decreased retirement benefit, subject to an actuarial reduction, payable to the retired participant for life shall continue after his or her death to their surviving beneficiary at 75% of that payable to the retired participant provided, that if such designated beneficiary shall predecease the retired participant, the retirement benefit payable to the participant after death of the designated beneficiary, shall be equal to the retirement benefit which would have been payable had the member not elected an option. OPTION G: Modification of Option D A decreased retirement benefit, subject to an actuarial reduction, payable to the retired participant for life shall continue after his or her death to their surviving beneficiary at 50% of that payable to the retired participant provided, that if such designated beneficiary shall predecease the retired participant, the retirement benefit payable to the participant after death of the designated beneficiary, shall be equal to the retirement benefit which would have been payable had the member not elected an option. 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. 0C Sec. 16-183. Definitions. Notwithstanding the provisions of Chattanooga City Code, Part I, Section 13.83(4), the following benefits are provided in lieu thereof: 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 Sergeant 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 Sergeant in the police department, it shall mean that position by whatever name it may hereafter be called. SECTION 2. BE IT FURTHER ORDAINED, That this Ordinance shall take effect two (2) weeks from and after its passage as required by law. PASSED on Third and Final Reading November 18, 1997. s/__________________________________ CHAIRPERSON APPROVED:___X___ DISAPPROVED:_______ DATE:____November 20, 1997__________ s/__________________________________ MAM:cjc MAYOR