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HomeMy WebLinkAboutOrdinances - No. 416ORDINANCE NO. 416 AN ORDINANCE CREATING A RETIREMENT SYSTEM FOR CITY EMPLOYEES, ESTABLISHING A PENSION FUND THEREFOR AND CREATING A PENSION BOARD The City Council of the City of Lodi does ordain as follows: Section 1. Retirement System Created. A Retirement System for the employees and officers of the City of Lodi is hereby adopted. Section 2. Purpose. The purpose of this ordinance is to effect economy and efficiency in the public service by providing a means whereby employees who become superannuated may, without hardship or prejudice, be replaced by more capable employees, and to that- end providing-a Retirement System. used in this ordinance, 'unless a different meaning is plainly indicated in the context, shall have the following meanings: "Retirement Systemv or 'tSysternf' shall mean the Lodi City Employees' Retirement System created herein. Section 3. Definitions. The following words and phrases wEmployeeft shall mean every person employed by the C-ty of Lodi whose regular salary is paid out of finds directly controlled by or substantially administered or controlled by the City of Lodi exclusive of persons paid by the hour or day or employed seasonally. l'Membern shall mean any employee included in the member- ship of the Retirement System, and shall include every employee who has attained permanent status as differentiated from temporary and probationary st atus. Department heads and salaried officials appointed by the City Council shall be regarded as permanent employees upon the completion of six (6) months of continuous paid service. official, a part of whose prior service was rendered in an elective office, except as City Councilman, shall receive full credit for such service in the same manner and as if such service had been rendered as an appointive official. Any rrBoard". shall mean the Pension Board created herein. "Calendar year" shall mean three hundred sixty-five days of service. "Prior service" shall mean all service rendered as a permanent employee of the City of Lodi prior to the first day of July, 1950, expressed in calendar years and fractions to the nearest completed quarter-year. permanent employee of the City of Lodi subsequent to the first day of July, 1950, expressed in calendar years and fractions to the nearest completed quart er-yea r . contributions made by a member, matching contributions by the City of Ladi and contributions made by the City of Lodi on behalf of prior gervice, together with appropriate interest, all as pro- vided herein. ''Current service" shall mean all service rendered as a "Pensionn shall mean payments for life as derived from "Attained age" of each member, upon which his rate of contribution to the system is based, shall be his nearest attained age on the date of entry into the system. "Retirement age" shall be the age attained at last birth date prior to retirement. Section 4. Pension Board Created. A Pension Board is hereby created which shall consist of two (2)' members elected by a majority vote of all members of the Retirement System, one (1) member who shall be the City Treasurer, one (1) member who shall be a member of the City Council, and one (1) lay-member who shall be a registered elector of the City of Lodi. Those members elected by the members of the Retirement System shall be elected for a term of two (2;) years, beginning with the first day of July, 1950. The City Trea- surer shall serve during his' tenure of office. The member of the City Council shall be appointed by and shall serve at the pleasure of the City Council. The lay-member shall be elected by the other four (4) Board members, with the concurrence of the City Council, and shall serve for a term of two (2) years. The City Council may appoint such ex-officio members as are deemed necessary, which ex- officio members shall have no vote on the Pension Board and shall serve at the pleasure of the City Council. Section 5. Authority and Responsibility of Board. The Pen- sion Board herein established shall serve in an advisory capacity only. It shall have no power to incur indebtedness or otherwise to bind the City by its decisions, which shall be recommendatory to the City Manager who shall transmit such recornmendations to the City Council; exclusively, to make recommendations as to the investment of Retire- meat System funds, the choice of mortality tables and interest rates credited to Pension monies, to conduct hearings on the claims of Retirement System members, and to recommend such changes in the Retirement System as may be considered advisable. submit in writing not less often than once each fiscal year to the City Council a financial statement on the status Qf the Pension Fund. Said Board shall have the authority to establish such rules and regulations as may be necessary to effectuate its purpose. The duties of said Board shall be primarily, but not Said Board shall -2- Section 6. Pension Fund Established. There is hereby created a Pension Fund. into which shall be paid all contributions made bv members of the'Retirement System and* all contributions made on beialf of the Retirement System by the City of Lodi, together with such interest as said monies shall earn. All retirement benefits herein established shall be disbursed from the said Pension Fund, whick shall be maintained separately from all other funds. No obligations except those primarily concerned with retirement benefits and the administration thereof shall be paid out of the said Pension Fund. Section 7. Membership in System. Everyeemployee having com- pleted six (6) months of continuous, paid service on-or subsequent to the first day of July, 1950, and viho has attained permanent status under the Personnel Regulations of the City of Lodi, shall be a member of the Retirement System and subject to the provisions in this ordinance contained. Section 8. Computation of Pension. Every member of the Re- tirement System shall be entitled to a monthly pension based upon length of service and average monthly salary obtaining in the five (5) years next preceding retirement. Such pension shall be equal to one and two-tbnths per cent (1.2%) of the average salary paid for the five (5) years next preceding retirement for each calendar year of service subsequent to the first day of July, 1950. In addition, each member, except members otherwise covered under Sec- tions 11 and 13 hereof, shall be entitled to a monthly pension equal to three-quarters of one per cent (3/4%) of the salary pay- able for the month of June, 1950, for each calendar year of service prior to the first day of July, 1950, which additional pension shall be paid wholly from City funds. Section 9. Rates of Contribution. Every employee of the City of Lodi meeting the requirements of Section 7 hereof, on and after the first day of July, 1950, shall become a member of the Retirement System. Each member shall pay as a percentage of his gross monthly salary, exclusive of overtime, as the same shall be' determined by the City Finance Director, the following percentages according to age and sex: Male Female & 20 21 22 23 24 25 26 27 28 29 30 31 32 33 3.75 3.80 3.85 3 -90 3.95 4.00 4-05 4.10 4-15 4.20 4.25 4.30 4.35 4.40 4.75 4.80 4.85 4-90 4.95 5 .OO 5-05 5.10 5 el5 5.20 5.25 5-30 5.35 5.40 -3- * Male 34 4.45 35 4.50 36 4.55 37 4.60 38 4.65 39 4-70 40 4.75 41 4.80 42 4.85 43 4.90 44 4.95 45 5 .OO 46 5.05 47 5.10 48 5-15 49 5.20 50 5.25 51 5.30 52 5.35 53 5.40 54 5.45 55 5-50 56 5.55 57 5.60 58 5.65 59 5.70 60 5.75 61 5.80 62 5.85 63 5 *90 5 995 6.00 64 65 66 6.05 67 6.10 68 6.15 6.20 6.25 69 70 71 6.30 72 6.35 73 6.40 74 75 76 77 78 79 80 81 82 .83 84 85 6.45 6.50 6.60 6.65 6.70 6.75 6.80 6.85 6.90 7.00 6.55 6.95 Female 5.45 5.50 - 5.55 5.60 5.65 5.70 5.75 5.80 5.85 5.90 , 5.95 6.00 6.05 6.10 6.15 6.20 6.25 6.30 6.35 6.40 6.45 6.50 6.55 6.60 6.65 6.70 6.80 6.85 6.90 6.95 7.00 7.10 7.20 7.25 6.75 7.05 7.15 7.30 7.35 7.40 7.45 7.50 7.55 7.60 7.65 7-70 7.75 7.80 7.85 7.90 7.95 8.00 -4- Said contribution shall be deducted from the gross salary, exclusive of overtime, of each member prior to the disbursement of salaries and wages to the several members, and shall be paid immediately into the Pension Fund. Records will be so maintained for each member that the total amount of member contributions and the total amount of City contributions may be determined at any time. Interest earned shall be similarly recorded. Section 10. Matching Funds - Current Service. The total amount of member contributions to the Pension Fund shall be deter- mined and the aggregate monthly increment shall be matched, dollar for dollar, from other City funds and the matching funds deposited in the Pension Fund immediately. Section 11. Retirement at Age 70. Those members who shall have attained the age of sixty (60) years prior to the first day of July, 1950, may exercise the option of remaining in service until age seventy (70) unless sooner retired on recommendat ion of the Pension Board. as prescribed in Section 8 hereof, which each such member may have earned by age seventy (70) or earlier retirement, each such member, except part-time employees, shall receive a pension equal to three dollars ($3.00) per month for each calendar year of service per- formed prior to the first day of July, 1950, said pension to be financed wholly out of prior service funds. Retirement ‘at Age 65. years shall be the normal retirement age. Members who shall not have attained the age of sixty (60) years prior to the first day of July, 1950, shall retire on the first day of the month next succeeding the month in which they attain the age of sixty-five (65), unless the earlier retirement age and 1esser.pension as provided in Section 13 is elected. In addition to such pension for current service, Section 12. The age of sixty-five ‘(65) In an unusual case involving the good of the City service, a member may be permitted to remain on active duty beyond age sixty-five (65), but in no event beyond the first day of the month next succeeding the month in which he attains the age of seventy (70). In each such case, the Department Head of the member involved shall submit in writing to the City Manager a statement of facts, setting forth the reasons why the good of the City service requires retention of said member beyond the normal retirement age, which statement of facts shall be submitted at least six (6) months prior to the attainment of said member of age sixty-five (65). The City Manager shall aesess said statement of facts and shall transmit it, together with his written comments and recommenda- tions, to the Pension Board within sixty (60) days prior to the attainment of said member of age sixty-five (65). The Pension Board shall hold a hearing thereon and shall transmit all pertinent data, including the recornendations of said Board, to the City Council not later than thirty (30) days prior to the attainment by the said member of age sixty-five (65). The City Council may hold additional hearings or gather such additional information as it may deem pertinent, and shall rule on the case, which ruling shall be final and conclusive. -5- Section 13. Optional Retirement at Age 60. Any member may at his option retire at any age after attainment of age sixty (60) years and prior to attainment of age sixty-five (65)'. In each such case, the monthly pension payable shall first be computed, both as to prior service and future service, as if said member had attained the age of sixty-five (65) years, The sum thus obtained shall then be reduced in accordance with the following table: & Reduce to: 60 75% 61 80% 62 85% 63 90% 64- 95% Section 14. Refund of Member Contributions. Each member who dies, resigns, is discharged or otherwise terminates his membership in the retirement system prior to retirement age, shall have refunded to him the total amount of money contributed by him to the system, plus such interest as shall have been credited to his account to and including the date of death, resignation, discharge or other termination. Section 15. Death Benefit. Upon the death of any retired member-his desinnated beneficiarv in one lump s;m the accumulateh contributions Gf said member, tbgether with such interest as may have been credited to his account up to and including the date of his death, less one-half (1/2) the accumu- lated total of such current service pension payments which may have been made to said member, shall be eligible for retirement or pension benefits until the first day of. January, 1951, and no member retiring from or otherwise leav- ing the City service prior to that date shall receive any benefits under this ordinance other than those pertaining to the refunding of member contributions. Section 16. Moratorium. No member of the retirement system Section 17. Appropriations by City - Limitation. The City Council shall make such appropriations as may be necessary from City funds for deposit in the Pension Fund, except that no pension levy against property which is or may be authorized by State law in addition to the statutory limitation of one dollar ($1.00) for General Fund purposes, shall be made without submission of the proposal to the electorate in a referendum election. Section 18. Prior Service Payments. The City Coum'il shall determine from time to time the amount necessary to finance the requirements of prior service and shall by resolution fix the amount to be paid annually into the Pension Fund on account of prior service. A new resolution shall be passed when it appears to the City Council that the requirements of prior service have changed. shall be so fixed that all prior service obligations are liquidated Said amounts -6- in not more than twenty (20) years from the first day of July, 1950, and that each such amount shall bear a reasonable relation- ship to the remaining liability with due regard for the number of remaining years in said twenty (20) year period. Section 19. Actuarial Surveys. The City Council, not less often than once each four (4) years, shall employ the services of a competent actuary, who shall examine the Pension Fund and inves- tigate the mortality, service and compensation experience of the members and beneficiaries of the system. Each such report shall contain actuarial recommendations as to the rates of contribution, benefits, reserves and other matters appurtaining to the present and projected soundness of the system. Such reports shall be transmitted to the City Manager for study and consultation with the Board. In accordance with the information contained therein, the Board shall make such comments and recornendations as may be . deemed pertinent, with particular reference to amendments to this ordinance and to the stability of the Pension Fund. Section 20. Amendment - Limitations, This ordinance may be amended from time to time, except that changes affecting the rates of contribution by employees, the principle of matching contributions by the City for current service, the normal, optional or compulsory age of retirement or the formulae for computing pension benefits, shall not be adopted except by a four-fifths (4/5) vote of the City Council after an election by system members on such proposal or proposals. Any such action by the City Council shall have been presented at not fewer than three (3) successive meetings of the City Council before final approval may be given. understood that the Retirement System herein established may be modified, abolished or otherwise coordinated with any program of benefits which may become available to the employees of this City under the provisions of the Federal Social Security Act or similar Federal or State legislation. Section 21. Effect of Social Security. ’ It is expressly Section 22, Severability. If any section, subsection, sen- tence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the valid- ity of the remaining portions of this ordinance. of the City of Lodi hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sec- tions, subsections, sentences, clauses, phrases or portions be de- clared invalid or unconstitutional . The City Council Section 23. Effective Date. forceanect on and after the This ordinance shall be in full STATE OF CALIFORNIA, COUNTY OF SAN JOAQUIN, CITY OF LODI, ss I, J. F. BLAKXLY, City Clerk of the City of Lodi do hereby certify that the foregoing Ordinance No. 4-16 was introduced at a regular meeting of the City Council of said City held May 3, 1950 and was thereafter, in the 17th day of May, 1950, passed, adopted and ordered to print by said City Council by the following vote: AYES: Councilmen, RI~, a. -. pREsz;Em TOUIVER * l and- NOES: Counc ilmen , RTW ABSENT : Councilmen, IK?EE I further certify that Ordinance No. 416 was approved and signed by the Mayor on the date of its final passage and that the same has been published as required by law.