HomeMy WebLinkAbout255_Increasing Retirement Fund ContributionORDINANCE NO. 255
AN ORDINANCE CREATING AMENDMENT NO. 2 TO THE EMPLOYEE
RETIREMENT SYSTEM OF OWASSO, OKLAHOMA-PROVIDING THEREIN FOR
INCREASED RETIREMENT BENEFITS-DEATH AND SURVIVOR BENEFITS FOR
ELIGIBLE EMPLOYEES OF THE CITY OF OWASSO, OKLAHOMA-THEIR SURVIVING
SPOUSES AND BENEFICIARIES; PRVIDING FOR EFFECTIVE DATE
OF SAID AMENDMENT TO SUCH SYSTEM; AUTHORIZING AND RATIFYING
EXECUTION OF THE FORMAL INSTRUMENTS CREATING SAID AMENDMENT TO
SUCH SYSTEM; PROVIDING FOR INCREASED SEPARATE CONTRIBUTIONS BY
THE CITY OF OWASSO AND BY THE EMPLOYEES, TO FUND THE INCREASE
IN BENEFITS AND PAY OPERATING EXPENSES, RATIFYING PAST WITHHOLDING
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLITH HEREWITH; PROVIDING A SEVERABILITY AND SAVING CLAUSE
AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA;
Section 1. that pursuant to the authority conferred by
the City of Owasso Charter, as amended and by the laws of the
State of Oklahoma, and for the purpose of encouraging continuity
and meritorious service on the part of City employees and thereby
promote public efficiency, there is hereby authorized, approved
and adopted, effective as of July 1, 1977, "Amendment No. 2 to
Employee Retirement System of Owasso, Oklahoma", an executed
counterpart of which is marked "Exhibit A" and attached hereto
as a part hereof.
Section 2. The City of Owasso is hereby authorized to
appropriate annually such amounts as are required in addition
to employee contributions, to maintain its amended Retirement
System on a sound actuarial basis in accordance with the
respective bi-annual actuarial valuation. Any appropriation
so made to maintain the amended Retirement System shall be for
deferred wages or salaries and for the payment of necessary
expenses of operation and administration, and shall be paid
into the Oklahoma Municipal Retirement Fund when available
through the City Treasurer, to be by him duly transferred to
said Fund.
Section 3.
The Mayor and City Clerk be and they are
Section 4. If, regardless of course, any section, sub-
section, paragraph, sentence or clause of this Ordinance, in-
cluding Amendment No. 2 to the Retirement System as set forth
in Exhibit A, is held invalid or to be unconstitutional, the
remaining sections, subsections, paragraphs, sentences or
clauses shall continue 4 n full force and effect and shall be
L
construed thereafter as being the entire provisions of this
Ordinance.
Section 5.
Any Ordinance inconsistent ti,7ith the terms and
provisions of this Ordinance is hereby repealed, provided,
however, that such repeal shall be only to the extent of such
inconsistency and in all other respects this Ordinance shall
be cumulative of other ordinances regulating and governing
the subject matter covered by this Ordinance.
Section 6.
Whereas, in the judgment of the City Council
of the City of Owasso, Oklahoma, the public peace, health and
safety o--'L' the City and the inhabitants thereof demand the
i=ediate passage of this Ordinance, an emergency is hereby
declared, the rules are suspended and this Ordinance shall
be in full force and effective on its passage, approval and
publication.
Passed and approved by the City Council of the City of
Owasso, Oklahomia on this day of
A
ATTEST:
/ -e"'
By
U" ty er ayor
(SEAL)
W.1
AMENDMENT NO. 2 TO
EMPLOYEE RETIREMENT SYSTEM
OF OVUSSO, OKLABOMA
Effective July 1, 1977
EXHIBIT A
AMENDMENT NO. 2 TO
EMPLOYEE RETIREMENT SYSTEMS
OF 0-VASSO, OKLAHOMA
The City of Owasso, a municipal corporation chartered
and incorporated under the laws of the State of Oklahoma,
located in Tulsa County, Oklahoma (hereinafter referred to
as the "Employer"), under Ordinance No.'s 146 and 198A,
established a retirement system titled, "Employee Retirement
System of Owasso, Oklahoma" for its employees, effective
July 1, 1972.
The Employer desiring to amend said Retirement System,
now under Ordinance No.'s 146 and 198A, of which this
instrument is a part, hereby amends said Retirement System
by 'Amendment No. 2 to Retirement System. of Owasso, Oklahoma,
effective July 1, 1977, in the following respects only:
FIRST: Article III, Contributions, is hereby amended
by restating Sect-Lon 3.2 in its entirety, to read as follows:
302 Contributions by Employees: Each Employee shall
cop-tribute to the cost of providing benefits under this
System, for pay periods commencing on or after July 1, 1977,
while he remains an Employee. Such contributions shall be at
the rate of 2 1/2% of that portion of the Employee's Compen-
sation which is not in excess of $6,600 received in each
calendar year, plus 3 3/4% of that portion of such Compen-
sation which is in excess of $6,600 received in each
calendar year.
47 Such contributions shall be made by payroll deductions
for each pay period, or any series of pay periods as the
Employer may deem most convenient during the full time of
employment as an Employee. The City Council may, however,
approve payment of such contributions in a manner other
than payroll deductions in any specific case or cases. (In
any event a participant shall be deemed to consent and agree
to the payroll deductions as provided for herein. If an
Employee is granted a non-paid leave of absence authorized
for any reason his continued participation in the System
will depend upon his contributions being continued at the
same rate and made by or for him during such absence. 14hile
such contributions are continued during such non-paid leave
of absence, the Employee's Compensation shall be deemed to
have continued at the same rate for the purpose of computing
the Employee's Average Monthly Compensation.
Each employee in the service of the employer on the
effective date hereof may become a participant in the system
when first eligibile by signing a written election to par-
ticipate, agreeing to be bound by the terms and conditions
hereof, and authorizing the Employer to deduct from his
hereof,
compensation the contributions required of hip, as provided
in Article III, hereof, and he shall be subjected to all
other provisions of the System beginning on such date. An
employee in the service of the Employer on the effective
date hereof who does not so elect to become a participant
as of the date he is first eligible to do so, may so elect
to become a Participant as of the first day of his pay period
coincidental with or next following the date of as which he
gives to the employer written authority to commence deductions
from his compensation for the contributions required of him as
is provided in Article III hereof. However, the service of
such a participant shall not include the period of such
voluntary nonparticipation beginning with the effective date
hereof and ending with the date as of -which the employee elects
to become a participant in the System.
Each employee employed on or after the effective date
hereof shall, as a condition of employment, become a partic-
ipant in the System as of the date on which he is first
eligible by signing a written election to participate in the
System agreeing to be bound by the terms and conditions hereof,
and authorizing the Employer to deduct from his compensation
the contributions required of him as provided in Article III
hereof, and he shall be subject to all other provisions of the
System, beginning on such date.
For each Employee who becomes a participant in this System
on July 1, 1977, Employee contributions and his participation
shall first begin for the pay period commencing on, or next
following, that date. For each Employee who becomes a Partic-
ipant in this System after July 1, 1977, Employee contributions
and his participation shall begin for the pay period commencing
on or next following the date he becomes a participant.
Such Employee contributions shall be fully vested in the
contributor Employee at all times. Upon Retirement, death or
termination of employment of an Employee for any reason, the
retired or terminated Employee, or his beneficiary as the case
may be, shall have the option to receive, in lieu of any and all
other benefits provided herein, his Contribution Accumulation.
Furthermore, the value of the total benefits payable to the
Employee and/or his beneficiary shall in no event be less than
his Contribution Accumulation as of the time of his termination
of employment. However, if any benefit of any other kind is paid
under this System, to or on behalf of an Employee, no Contribution
Accumulation shall be paid, but shall be deemed to have been
included in the value of the benefit so paid, unless the total
value of such other benefit -payments finally paid shall be less
than such Contribution Accumulation as of the time of the
Employee's termination of employment, in which case the dif-
-Lerence shall be paid in a lump sum to the Employee and/or his
beneficiary.
SECOND: Article V, Amount of Retirement Benefits, is hereby
amended by restating Section 5.1 in its entirety and by adding a
new Section, Section 5.5, each to read as follows respectively:
5.1 Normal Pension: An Employee who rieets the require-
ments for a Normal Pension shall receive a monthly amount equal
to the sum of the following:
(a) 1 1/470 of his Average Monthly Compensation
multiplied by the number of his years of
Service credited with the Employer (but not
with any other Municipality);
(b) 5/8 of 1% of that portion of his Average
Monthly Compensation which is in excess of
$550 multiplied by the number of his years
of Service credited with the Employer (but
not with any other Municipality).
5.5 Adjustment of Benefits: Benefits payable to or on
behalf of f rmer Employee under this Article V, Article VI, or
Article VII, which are due or in the course of payment as of
July 1, 1977, and the amount of which was or should be based
on the Normal Pension determined under Section 5.1 shall be
redetermined as of July 1, 1977, according to Section 5.1 as
amended by this ordinance. Such increased benefits shall be
reflected in any periodic payments due or paid on or after
July 1, 1977. It is not intended for this change to be retro-
active and any periodic payments due prior to July 1, 1977 shall
not be affected.
5.6 Adoption and Ratification of Withholdings since July 1,
1977: The City of Owasso hereby ratifies and approves all
previous withholdings in amount set out in Sec. 3.2 supra.
IN WITNESS VMEREOF, and as conclusive evidence of the
adoption of the foregoing instrument, the City of Owasso,
Oklahoma, as the Employer, has caused its corporate seal to be
affixed hereto and these presents to be duly executed in its
name and behalf by its proper officers thereunto authorized
this IVA day of �N
ATTEST:
By
City Cler-k-_ Mayor III/
-3-
Affidavit Of Publication
STATE OF OKLAHOMA, TULSA COUNTY, ss:
Bill R. Retherford, of lawful age, being duly sworn
and authorized, says that he is publisher of the
Owasso Reporter a
....... ..........................
weekly newspaper printed in the City of
Owasso Tulsa County,
Oklahoma, a newspaper qualified to publish legal
notices, advertisements and publications as provided in
Section 106 of Title 25, Oklahoma Statutes 1971 as
amended, and complies with all other requirements of
the laws of Oklahoma with reference to legal public-
ations.
That said notice, a true copy of which is attached
hereto, was published in the regular edition of said news-
paper during the period and time of publication and not
in a supplement, on the following dates:
April 19 1979
Subscribed and sworn to before me this ..23 .day
of. April _...._...._,197.9.....
Notary Public
My commission expires: ... `.7.23- 79 .... .......
...
PUBLISHER'S FEE $, ...... .
Legal Notice
Published in the Owasso RapwtoF- Owasso, Tulsa County,
Okla., Thurs., April 19, 1979.
ORDINANCE NO. 255
AN ORDINANCE CREATING AN AMENDMENT TO THE
EMPLOYEE RETIREMENT SYSTEM OF OWASSO,
OKLAHOMA - PROVIDING THEREIN FOR INCREASED
RETIREMENT BENEFITS -DEATH AND SURVIVOR.
BENEFITS FOR ELIGIBLE EMPLOYEES OF THE CITY
OF OWASSO, OKLAHOMA -THEIR SURVIVING SPOUSES
AND BENEFICIARIES; PROVIDING FOR EFFECTIVE
DATE OF SAID AMENDMENT TO SUCH SYSTEM;
AUTHORIZING AND RATIFYING EXECUTION OF THE
FORMAL INSTRUMENTS CREATING SAID AMEND -
MENT TO SUCH SYSTEM; PROVIDING FOR INCREASED
SEPARATE CONTRIBUTIONS BY THE CITY OF OWASSO
AND BY THE EMPLOYEES, TO FUND THE INCREASE
IN BENEFITS AND PAY OPERATING EXPENSES,
RATIFYING. PAST WITHHOLDING: REPEALING ALL
ORDINANCES OR PARTS OF ORDINANCES IN CON-
FLICT HEREWITH: PROVIDING A SEVERABILITY AND
SAVINGS CLAUSE AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF OWASSO, OKLAHOMA:
Section 1. That pursuant to the authority conferred by the
City of Owasso Charter, as amended and by the laws of the
State of Oklahoma, and for the purpose of encouraging
continuity and meritorious service on the part of City em-
ployees and thereby promote public efficiency, there is
hereby authorized, approved and adopted, effective as of
July 1, 1977, "Amendment No. 2 to Employee Retirement
System of Owasso, Oklahoma ", an executed counterpart of
which is marked "Exhibit A" and attached hereto as a part
hereof.
Section 2. The City of Owasso is hereby authorized to ap-
propriate annually such amounts as are required in addition
to employee contributions, to maintain its amended
Retirement System on a sound actuarial basis in accordance
with the respective bi- annual actuarial valuation. Any ap-
propriation so made to maintain the amended Retirement
System shall be for deferred wages or salaries and for the
payment of necessary expenses of operation and ad-
ministration, and shall be paid into the Oklahoma Municipal
Retirement Fund when available, through the City
Treasurer, to be by him duly transferred to said Fund.
Section 3. The Mayor and City Clerk be and they are each
hereby authorized and directed to execute (in counterparts,
each of which shall constitute an original) this Amendment
No. 2 to the Retirement System, and to do all other acts and
things necessary, advisable and proper to put said Amend-
ment into full force and effect, and to make such change
therein as may be necessary to qualify the same under
Sections 401(a) and 501(a) of the Internal Revenue Code of
the United States. The counterpart attached hereto as
Exhibit A, which has been duly executed as aforesaid
simultaneously with the passage of this Ordinance and made
a part hereof, is hereby ratified and confirmed in all
respects.
Section 4. If, regardless of course, any section, subsection,
paragraph, sentence or clause of this Ordinance, including
Amendment No. 2 to the Retirement System as set forth in
Exhibit A, is held invalid or to be unconstitutional, the
remaining sections, subsections, paragraphs, sentences or
clauses shall continue in full force and effect and shall be
construed thereafter as being the entire provisions of this
Ordinance.
Section 5. Any Ordinance inconsistent with the terms and
provisions of this Ordinance is hereby repealed, provided,
however, that such repeal shall be only to the extent of such
inconsistency and in all other respects this Ordinance shall
be cumulative of other ordinances regulating and governing
the subject matter covered by this Ordinance.
Section 6. Whereas, in the judgment of the City Council of
the City of Owasso, Oklahoma, the public peace, health and
safety of the City and the inhabitants thereof demand the
immediate passage of this Ordinance, an emergency is
hereby declared, the rules are suspended and this Ordinance
shall be in full force and effective on its passage, approval
and publication.
Passed and approved by the City Council of the City of
Owasso, Oklahoma on this 17 day of April, 1979.
ATTEST:
Wauhilleau Webb
City Clerk
(SEAL)
CITY OF OWASSO, OKLAHOMA
By Boyd Spencer
Mayor
EXHIBIT A
AMENDMENT NO. TO
EMPLOYEE RETIREMENT SYSTEM
OF , OKLAHOMA
Effective July 1, 19
EXHIBIT A
AMENDMENT NO. TO
EMPLOYEE RETIREMENT SYSTEM
OF , OKLAHOMA
The City (or Town) of , a municipal
corporation chartered and incorporated under the laws of the State of
Oklahoma, located in
County, Oklahoma (hereinafter
referred to as the "Employer "), under Ordinance No. , established
a retirement system titled, "Employee Retirement System of
19
Oklahoma" for its employees, effective July 1,
The Employer desiring to amend said Retirement System, now under
Ordinance No. , of which this instrument is a part, hereby amends
said Retirement System by "Amendment No. to Retirement System of
Oklahoma, effective July 1, 19 , in
the following respects only:
FIRST: Article III, Contributions, is hereby amended by restating
Section 3.2 in its entirety, to read as follows:
3.2 Contributions by Employees: Each Employee shall contribute
to the cost of providing benefits under this System, for pay periods
commencing on or after July 1, 19 , while he remains an Employee.
Such contributions shall be at the rate of 2 1/2% of that portion of the
Employee's Compensation which is not in excess of $6,600 received in each
calendar year, plus 3 3/4% of that portion of such Compensation which is
in excess of $6,600 received in each calendar year.
Such contributions shall be made by payroll deductions for each pay
period, or any series of pay periods as the Employer may deem most con-
venient during the full time of employment as an Employee. The City
Council may, however, approve payment of such contributions in a manner
other than payroll deductions in any specific case or cases. (In any event
a participant shall be deemed to consent and agree to the payroll deductions
as provided for herein. If an Employee is granted a non -paid leave of
absence authorized for any reason his continued participation in the System
will depend upon his contributions being continued at the same rate and made
by or for him during such absence. While such contributions are continued
during such non -paid leave of absence, the Employee's Compensation shall be
deemed to have continued at the same rate for the purpose of computing the
Employee's Average Monthly Compensation.
Each employee in the service of the employer on the effective date
hereof may become a participant in the system when first eligible by signing
a written election to participate, agreeing to be bound by the terms and
conditions hereof, and authorizing the Employer to deduct from his compen-
sation the contributions required of him as provided in Article III, hereof,
and he shall be subjected to all other provisions of the System beginning on
such date. An employee in the service of the Employer on the effective date
hereof who does not so elect to become a participant as of the date he is
first eligible to do so, may so elect to become a participant as of the first
day of his pay period coincidental with or next following the date of as
which he gives to the employer written authority to commence deductions from
his compensation for the contributions required of him as is provided in
Article III hereof. However, the service of such a participant shall not
include the period of such voluntary nonparticipation beginning with the
effective date hereof and ending with the date as of which the employee
elects to become a participant in the System.
Each employee employed on or after the effective date hereof shall, as
a condition of employment, become a participant in the System as of the date
on which he is first eligible by signing a written election to participate
in the System agreeing to be bound by the terms and conditions hereof, and
authorizing the Employer to deduct from his compensation the contributions
required of him as provided in Article III hereof, and he shall be subject
to all other provisions of the System beginning on such date.
For each Employee who becomes a participant in this System on July 1,
19 , Employee contributions and his participation shall first begin for
the pay period commencing on, or next following, that date. For each
Employee who becomes a Participant in this System after July 1, 19 ,
Employee contributions and his participation shall begin for the pay period
commencing on or next following the date he becomes a participant.
Such Employee contributions shall be fully vested in the contributor
Employee at all times. Upon Retirement, death or termination of employment
of an Employee for any reason, the retired or terminated Employee, or his
beneficiary as the case may be, shall have the option to receive, in lieu
of any and all other benefits provided herein, his Contribution Accumulation.
- 2 -
Furthermore, the value of the total benefits payable to the Employee and /or
his beneficiary shall in no event be less than his Contribution Accumulation
as of the time of his termination of employment. However, if any benefit of
any other kind is paid under this System, to or on behalf of an Employee, no
Contribution Accumulation shall be paid, but shall be deemed to have been
included in the value of the benefit so paid, unless the total value of such
other benefit payments finally paid shall be less than such Contribution
Accumulation as of the time of the Employee's termination of employment, in
which case the difference shall be paid in a lump sum to the Employee and /or
his beneficiary.
SECOND: Article V, Amount of Retirement Benefits, is hereby amended
by restating Section 5.1 in its entirety and by adding a new Section,
Section 5.5, each to read as follows respectively:
5.1 Normal Pension: An Employee who meets the requirements for a
Normal Pension shall receive a monthly amount equal to the sum of the
following:
(a) 1 1/4% of his Average Monthly Compensation multiplied
by the number of his years of Service credited with
the Employer (but not with any other Municipality);
(b) 5/8 of 1% of that portion of his Average Monthly
Compensation which is in excess of $550 multiplied
by the number of his years of Service credited with
the Employer (but not with any other Municipality).
5.5 Adjustment of Benefits: Benefits payable to or on behalf of
former Employee under this Article V, Article Vi, or Article VII, which
are due or in the course of payment as of July 1, 19 , and the amount
of which was or should be based on the Normal Pension determined under
Section 5.1 shall be redetermined as of July 1, 19 according to
Section 5.1 as amended by this ordinance. Such increased benefits shall
be reflected in any periodic payments due or paid on or after July 1,
19 It is not intended for this change to be retroactive and any
periodic payments due prior to July 1, 19 shall not be affected.
- 3 -
IN WITNESS WHEREOF, and as conclusive evidence of the adoption of
the foregoing instrument, the City (or Town) of
Oklahoma, as the Employer, has caused its corporate seal to be affixed
`hereto and these presents to be duly executed in its name and behalf by
its proper officers thereunto authorized this day of
19
CITY (OR TOWN) OF ,
OKLAHOMA
ATTEST:
By
City Clerk Mayor
THE STATE OF OKLAHOMA )
)ss.
COUNTY OF )
BEFORE ME, the undersigned, a Notary Public in and for said County and
State, on this day of , 19 , personally appeared
' to me known to be the identical
person who subscribed the name of the City (or Town) of ,
Oklahoma, a municipal corporation, to the foregoing instrument as its Mayor
and acknowledged to me that he executed the same as his free and voluntary
act and deed and as the free and voluntary act and deed of such corporation,
for the uses and purposes therein set forth.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, the day and year last above
written.
My Commission Expires:
(SEAL)
- 4 -
Notary Public
A. S. Hansen, inc.
April 6, 1979
One Williams Center, Suite 1740 • Tulsa, Oklahoma 74103 • Telephone 918- 587 -0181
Board of Trustees
Employee Retirement System
of Owasso, Oklahoma
207 South Cedar
Owasso, OK 74055
Attention: Merrilyn Merchant
As requested, we are enclosing five summaries of the OMRF system applicable
to Plan CC. These would replace the brown cover copies you recently received.
Confirming our discussion regarding funding of the July 1, 1977 effective
date, we recommend that the increased city contributions begin as soon as
administratively possible. There is no funding requirement that retroactive
contributions be made for the lapse time. Please let us know if you have
any questions.
Sincerely,
V- 0a Via-
L. W. Walters
LWW:rh
Enclosures
Offices Throughout the United States
PLAN MEMBERSHIP
All regular, full -time employees hired before age 60* are
eligible to join the plan except:
® members of the Fire Department
o members of the Police Department covered
by the Police Pension Retirement System
® elected members of the City Council (or
town - Board of Trustees) unless they
otherwise qualify as regular employees
® employees covered by any other State
retirement system.
You become a Plan member when you agree to have contributions
to the Plan deducted each pay period in the amount of:
2 -1/2% of annual earnings up to $6,600, plus '
QId.ti1
3 -3/4% of annual earnings over $6,600 C.C.
Member contributions are required as a condition of employ -,
ment if you are hired after the effective date of the Plan.
If you were eligible to join when the Plan became effective,
you may elect to contribute at any time but you only receive
credit for your previous service if you join when you were
first eligible.
Your contributions are always yours. If you leave before
you are eligible for retirement benefits, your contributions
plus interest at 3-1/2% per annum will be returned to you.
`A lower age limit may apply depending on the employer's
mandatory retirement policy. You must have at least 10
years of service to receive a benefit from the employer's
contributions to the plan.
CC
HOW MUCH THE PLAN PAYS
Your retirement benefits from this Plan are in addition to
the payments you get from Social Security when you retire.
We share the cost of Social Security with you - -by matching
your tax dollars during your years as a member.
Your income from Social Security serves as a starting point
in determining how much additional income your Retirement
Plan can provide.
When you are eligible for retirement benefits at your normal
retirement date, or when you become disabled, your payments
will be figured according to the following formula --
0 1 -1/40 of your Hi -5 Pay times your years of
Benefit Service, plus
4
0 5/8% of your Hi -5 Pay in excess of $550 times
your years of Benefit Service.
Hi -5 Pay is the monthly average of your highest paid five
years in a row out of your final ten years of employment
with us. "Pay" means your total earnings as reported on
your W -2 form.
Benefit Service means your period of service used in
determining your pension amount, as explained on page 3
We call the amount figured from the formula your basic
pension. When your basic pension begins, payments continue
for as long as you live with 60 monthly payments guaranteed:
This means that if you die before receiving all 60 payments,
the balance will be paid to your beneficiary.
Prior to retirement, you must select either the basic
pension or one of several payment options.
One option you may select is known as the 50% Survivor
option, which provides a smaller monthly benefit payment
to you during your lifetime (smaller than the basic pension)
but also pays your surviving spouse a monthly check during
the remainder of his or her life equal to one-half of the
benefit paid during your lifetime. There is no 60 month
guarantee under the 50% Survivor Option.
5
CC -5
YOUR PENSION AT NORMAL RETIREMENT
You will be eligible for normal retirement when you reach
age 65, or when you complete 10 years of Vesting Service
if that is later.
Your pension will begin on the first of the month after
you meet these conditions and will be paid for your life-
time with a minimum of 60 payments guaranteed, as explained
earlier, unless you select an optional form of payment.
Let's look at an example of how the formula works at
normal retirement:
Kathy Walters is retiring in 1990 at age 65. Her
Hi -5 Pay is $800 a month and her Social Security
benefit is $360 a month. Kathy has 20 years of
Benefit Service. (Amounts are rounded to the
nearest dollar for purposes of illustration.)
® 1 -1/4% x $800 x 20 = $200, plus
s 5/8% x ($800 -$550) x 20 = 31� equals
s LIFETIME PLAN BENEFIT $231 a.month
e Plus primary Social Security 360 equals
® TOTAL RETIREMENT INCOME $591 a month
Kathy's total retirement income amounts to about
74% of her Hi -5 Pay.
0
CC -5
Here is another example using different pay and service
levels.
Jim Reynolds is retiring in 1990 at age 65 with
30 years of Benefit Service. His Hi-5 Pay is
$1,300 a month, and we'll assume Social Security
benefit is $480 a month.
0 1 -1/4% x $1,300 x 30 = $ 487, plus
1
0 5/8% x ($1,300 -$550) x 30 = 141, equals C
0 LIFETIME PLAN BENEFIT $ 628 a month
• Plus primary Social Security 480, equals
• TOTAL RETIREMENT INCOME $1,108 a month
Jim's total retirement income amounts to nearly 85%
of his Hi -5 Pay. And any Social Security increases
after he retires will mean additional income.
Remember, the Plan provides a minimum of 60 payments. So
if Jim should die before receiving all 60 payments, the
remainder goes to his beneficiary, if this option is selected.
If you continue working beyond your normal retirement date,
your pension will be figured by the same formula used for
normal retirement except that your Hi -5 Pay and Benefit
Service are based on your actual retirement date. Payments
begin the first day of the month following retirement.
7
CC -5
a member of the
Oklahoma Municipal Retirement Fund
sponsored by the Oklahoma Municipal League
;illy I :1)
One of the many reasons we work is to earn the right not to
have to work someday . . . to be able to take it easy and
not worry about paying the bills.
Your Oklahoma Municipal Retirement Fund (OMRF) retirement
plan can help relieve your financial worries by providing
a monthly benefit for you when you retire. Your monthly
income from the Plan is in addition to any benefits you or
your family may receive from Social Security. It is
designed to fit in with and add to Social Security so that
the two programs - -the Retirement Plan, which your employer
pays for, and Social Security, which you and your employer
pay for together - -will provide you a comfortable retirement
income in your later years.
Briefly, the Plan provides a range of payments to fit the
variety of circumstances you may face. For example, there
are lifetime pensions at normal or early retirement or if
you should become disabled - -and for deferred vested retire-
ment as well. And there is survivor protection available
for your spouse or other beneficiary.
You may read the legal documents if you wish. Meanwhile
this summary will answer most of your questions.
Here's where to find the important facts about your Oklahoma
Municipal Retirement Fund (OMRF) retirement
plan such as --
when you can retire, haw much benefits may
be, how your
family is protected and what you can expect
from Social
Security.
19
You Can Read About
On Paoe
FOREWORD
19
PLAN MEMBERSHIP
1
HOW SERVICE COUNTS
3
• Benefit Service Credit
3
• Vesting Service Credit
3
WHEN YOU ARE ELIGIBLE FOR BENEFITS
4
• Normal Retirement
4
• Early Retirement
4
• Late Retirement
4
• Disability Retirement
4
• Deferred Vested Retirement
4
HOW MUCH THE PLAN PAYS
5
YOUR PENSION AT NORMAL RETIREMENT
6
IF YOU LEAVE BEFORE AGE 65
8
Early Retirement
8
Deferred Vested Retirement
9
IF YOU BECOME DISABLED
10
Qualifying for Disability Retirement
10
Disability Pension Formula
11
PROTECTION FOR SURVIVORS
12
After Retirement
12
Before Retirement-- Spouse's Pension
15
Other Death Benefits
15
WHAT YOU CAN EXPECT FROM SOCIAL.SECURITY 16
OTHER THINGS YOU SHOULD KNOW 18
Reemployment After Retirement
18
Naming Your Beneficiary
18
Transfers Between Employers
18
PLAN OPERATION
19
Administering the Plan
19
Managing Plan Funds
19
Applying for Benefits
19
Official Document
20
Plan Permanence
20
PLAN MEMBERSHIP
All regular, full -time employees hired before age 60* are
eligible to join the plan except:
• members of the Fire Department
• members of the Police Department covered
by the Police Pension Retirement System
• elected members of the City Council (or
town - Board of Trustees) unless they
otherwise qualify as regular employees
• employees covered by any other State
retirement system.
You become a Plan member when you agree to have contributions
to the Plan deducted each pay period in the amount of:
2% of annual earnings up to $6,600, plus
3% of annual earnings over $6,600
Member contributions are required as a condition of employ-
ment if you are hired after the effective date of the Plan.
If you were eligible to join when the Plan became effective,
you may elect to contribute at any time but you only receive
credit for your previous service if you join when you were
first eligible.
Your contributions are always yours. If you leave before
you are eligible for retirement benefits, your contributions
plus interest at 3-1/2% per annum will be returned to you.
*A lower age limit may apply depending on the employer's
mandatory retirement policy. You must have at least 10
years of service to receive a benefit from the employer's
contributions to the plan.
0
Your employer shares the cost of the plan with you and
generally expects to more than match your contributions.
How much is contributed depends on calculations by
independent actuaries.
In the following pages, you will learn how your service
counts toward benefits, when you are eligible for retire-
ment, how much you could receive from the Plan, how you
can share your pension with your spouse or other dependent,
and what you can expect Social Security to provide.
2
HOW SERVICE COUNTS
During your years as a Plan member, you earn two kinds of
service credit--Benefit Service Credit and Vesting Service
Credit.
s Benefit Service Credit helps determine how
much your pension will be.
Benefit Service is credited for:
-- your last period of continuous full -time
employment as a member of this Plan, and
-- your continuous full -time employment with
us before the effective date of the Plan
if you joined as soon as you were eligible.
• Vesting Service Credit helps determine when
you are eligible to receive benefits from the
Plan.
Vesting Service is credited for:
-- the same period as any Benefit Service,
plus
-- your previous service while a member of
any other OMRF employer's retirement
plan if you transferred directly to this
employer without withdrawing your employee
contributions, and
-- your previous service with this employer
during which you were not eligible for
membership if you transfer to a full -time
employment category that is eligible for
membership and elect to join as soon as
you are eligible.
3
WHEN YOU ARE ELIGIBLE FOR BENEFITS
Generally, the longer you work the greater your retirement
income will be. But sometimes you may want - -or need - -to
retire earlier. To meet your individual needs, the Plan
provides a range of times and circumstances under which
benefits are payable. For instance, you can qualify for
benefits at . . .
• NormaZ Retirement - -age 65 or the completion
of 10 years of Vesting Service, if later .
your pension begins immediately.
• EarZy Retirement- -age 55 or the completion
of 10 years of Vesting Service, if later . . .
your accrued pension begins at age 65 or you
may choose a reduced pension starting immediately.
• Late Retirement -- occurs when you actually retire
if you work beyond your normal retirement date.
• Disability Retirement --10 years of Vesting
Service and total and permanent disability as
determined by the Committee . . . the disability
benefit will commence immediately.
• Deferred Vested Retirement - -any age provided
you have at least 10 years of Vesting Service .
benefits begin at age 65 or you may choose a
reduced pension at age 55 or later.
you will find details on these retirement times, as well
as on survivor protection, in later pages. Now let's look
at how your pension is figured.
4
HOW MUCH THE PLAN PAYS
Your retirement benefits from this Plan are in addition to
the payments you get from Social Security when you retire.
We share the cost of Social Security with you- -by matching
your tax dollars during your years as a member.
Your income from Social Security serves as a starting point
in determining how much additional income your Retirement
Plan can provide.
When you are eligible for retirement benefits at your normal
retirement date, or when you become disabled, your payments
will be figured according to the following formula --
• 1% of your Hi -5 Pay times your years of
Benefit Service, plus
• 1/2% of your Hi -5 Pay in excess of $550 times
your years of Benefit Service.
Hi -5 Pay is the monthly average of your highest paid five
years in a row out of your final ten years of employment
with us. "Pay" means your total earnings as reported on
your W -2 form.
Benefit Service means your period of service used in
determining your pension amount, as explained on page 3.
We call the amount figured from the formula your basic
pension. When your basic pension begins, payments continue
for as long as you live with 60 monthly payments guaranteed:
This means that if you die before receiving all 60 payments,
the balance will be paid to your beneficiary.
Prior to retirement, you must select either the basic
pension or one of several payment options.
One option you may select is known as the 50% Survivor
option, which provides a smaller monthly benefit payment
to you during your lifetime (smaller than the basic pension)
but also pays your surviving spouse a monthly check during
the remainder of his or her life equal to one -half of the
benefit paid during your lifetime. There is no 60 month
guarantee under the 50% Survivor Option.
A -5
YOUR PENSION AT NORMAL RETIREMENT
You will be eligible for normal retirement when you reach
age 65, or when you complete 10 years of Vesting Service
if that is later.
Your pension will begin on the first of the month after
you meet these conditions and will be paid for your life-
time with a minimum of 60 payments guaranteed, as explained
earlier, unless you select an optional form of payment.
Let's look at an example of how the formula works at
normal retirement:
Kathy Walters is retiring in 1990 at age 65. Her
Hi -5 Pay is $800 a month and her Social Security
benefit is $360 a month. Kathy has 20 years of
Benefit Service. (Amounts are rounded to the
nearest dollar for purposes of illustration.)
• 1% x $800 x 20 = $160, plus
• 1/2% x ($800 -$550) x 20 = ?5, equals
• LIFETIME PLAN BENEFIT $185 a month
• Plus primary Social Security 360., equals
• TOTAL RETIREMENT INCOME $545 a month
Kathy's total retirement income amounts to about
68% of her Hi -5 Pay.
OW,
Here is another example using different pay and service
levels.
Jim Reynolds is retiring in 1990 at age 65 with
30 years of Benefit Service. His Hi -5 Pay is
$1,300 a month, and we'll assume Social Security
benefit is $480 a month.
• 1% x $1,300 x 30 = $ 390, plus
• 1/2% x ($1,300 -$550) x 30 = 112, equals
• LIFETIME PLAN BENEFIT $ 502 a month
• Plus primary Social Security 480, equals
• TOTAL RETIREMENT INCOME $ 982 a month
Jim's total retirement income amounts to nearly 76%
of his Hi -5 Pay. And any Social Security increases
after he retires will mean additional income.
Remember, the Plan provides a minimum of 60 payments. So
if Jim should die before receiving all 60 payments, the
remainder goes to his beneficiary, if this option is selected.
If you continue working beyond your normal retirement date,
your pension will be figured by the same formula used for
normal retirement except that your Hi -5 Pay and Benefit
Service are based on your actual retirement date. Payments
begin the first day of the month following retirement.
7
A -5
IF YOU LEAVE BEFORE AGE 65
Even though you leave before age 65, you may still receive
a pension if you qualify for early or deferred vested
retirement.
Early Retirement
You will qualify for an Early Pension if you retire after
age 55 but before age 65 with 10 or more years of Vesting
Service.
An Early Pension is figured like a Normal Pension using
your actual Benefit Service and Hi -5 Pay to the date of
your retirement.
Generally, Early Pension payments begin at age 65, but
you may receive your pension earlier, if you choose, by
submitting a written request to the Committee 30 days
before you wish payments to begin. if you start receiving
pension payments before age 65, the amount will be reduced
because you can expect to receive payments for a longer
period of time.
0
For Example. An Early Pension that would pay $100 a month
at age 65 will provide $85 a month at age 62 . . . or $65
a month at age 58 . . . but only $50 a month if it begins
at age 55. The following table shows the percentage you
get, based on your age when payments start.
If Pension Percent If Pension Percent
Begins at: You Get: Begins at: You Get:
55
50%
60
75%
56
55
61
80
57
60
62
85
58
65
63
90
59
70
64
95
Deferred Vested
Retirement
If you have 10 or more years of Vesting Service when you
leave, you will be vested in (entitled to) your accrued
pension from the Plan. Vested pensions are deferred (set
aside) until it's time for payment.
A Deferred Vested Pension is figured like an Early Pension
using your actual Benefit Service and Hi-5 Pay to the date
of your separation.
Like an Early Pension, a Deferred Vested Pension is paid
in the full amount earned when you reach age 65. Smaller
monthly checks can start any time after age 55. The
reduction is the same as shown for early retirement.
If you should leave, you will know precisely how much you
will get at age 65. We give you a written accounting of
any vested benefits you may have.
iDj
IF YOU BECOME DISABLED
Sometimes the unexpected happens, and a serious accident
or illness may make it impossible for you to continue
working. To help protect you and your family from
financial disaster should disability occur, the Plan
provides for disability retirement.
lifvino For Disability Retirement
You will be eligible for a Disability Pension at the time
you become disabled if you have 10 or more years of
Vesting Service and . . .
• you are totally disabled so that you can no
longer work at substantial employment with
the employer,
• your disability is considered total and
permanent by a Committee - approved doctor,
and
• you have submitted a written application
for benefits to the Committee.
The Committee may require that you have a physical exam
by a Committee- approved doctor to prove continuing dis-
ability.
You will be ineligible for a disability pension, how-
ever, if your disability is the result of: drug abuse,
alcoholism, injuries suffered as a result of wrongful
or illegal acts, disabilities resulting from military
service for which you receive a military pension.
IN
Disabilitv Pension Formula
Your monthly benefit will be determined by the same formulas
used for the Normal Pension, but using your actual Hi -5 Pay
and Benefit Service to the date of your disability.
There is no reduction to the Disability Pension for payment
before age 65 so long as you are entitled to disability
benefits from Social Security. During any period for which
you are not receiving Social Security disability payments,
the Disability Pension will be actuarially reduced in the
same way an Early Pension paid before age 65 is reduced.
IRS rules regarding the integration of pension plans with
Social Security require this reduction. There is no
reduction in any event after normal retirement age.
Your benefit may be reduced or eliminated if the Committee
determines that you have partially recovered from your
disability. The benefit will never be reduced below the
Early or Deferred Pension to which you are otherwise eligible.
Pension payments begin when you retire for disability. The
benefit is paid as long as you remain disabled to age 65 and
for life thereafter without any disability test. The death
benefit (if any) is determined by the form of annuity you
have elected.
PROTECTION FOR SURVIVORS
The Plan not only provides payments for you but under
certain circumstances provides benefits for your eli-
gible wife or husband --or other beneficiary. This
section describes the survivor benefits available
before and after retirement.
After Retirement
To help you fit the Plan to your personal situation,
several optional forms of pensions are available. You
can elect a pension option instead of the basic single -
life pension form. The options available are
• 100% Survivor's Option. You receive a
reduced monthly pension for as long as you
live. Your surviving contingent pensioner
then receives an equal amount for his or
her life after your death.
• 50% Survivor's Option. You receive a reduced
pension for as long as you live. Your sur-
viving contingent pensioner then receives
one -half of that amount for his or her life
after your death.
• Two- Thirds Joint Pension Option. You take
a smaller monthly pension for as long as you
live. Then at the first death of either you
or your beneficiary, checks in two- thirds of
the amount continue to the survivor for life.
Married employees may designate their spouse as their
contingent pensioner. Unmarried employees may designate
any dependent that is approved by the authorized agent
of the Retirement Committee.
12
The amount of benefit you receive under one of the
optional forms is adjusted so that the annuity is
actuarially equivalent; that is, has the same value
as the basic single -life form of pension.
The larger the survivor's pension the greater is the
reduction in your own pension. The amount that your
pension is reduced also depends upon the difference
between your age and your beneficiary's age, and the
sex of your beneficiary. The table on the next page
illustrates the amounts payable in the case of a male
employee entitled to a pension of $100. These amounts
are subject to change as mortality and interest rate
assumptions change.
Generally, an employee must elect the joint and sur-
vivor option before his 63rd birthday. For the option
to take effect the employee must qualify for a normal
retirement. If he retires or dies earlier, or if his
spouse dies before he qualifies, the option is inoper-
ative.
13
ILLUSTRATION OF OPTIONAL PENSION AMOUNTS
$100 Normal Pension
Male Employee Retiring at Age 65
0
Pension reduces at first death of employer or spouse
Pension reduces at death of employee.
The above illustration is based on the actuarial tables
in effect at the time of printing and are subject to
change.
As you near retirement you may request an estimate of
the benefits payable under various options based upon
the actual ages of you and your spouse.
14
100%
66 -2/3%
50%
Survivor
Joint
Survivor
Option
Option*
Option*?.-
Wife 5 years younger
Employee's pension
$73.76
$83.09
$85.78
Widow's pension
73.76
55.39
42.89
Wife same age
Employee's pension
78.55
88.31
88.93
Widow's pension
78.55
58.87
44.47
0
Pension reduces at first death of employer or spouse
Pension reduces at death of employee.
The above illustration is based on the actuarial tables
in effect at the time of printing and are subject to
change.
As you near retirement you may request an estimate of
the benefits payable under various options based upon
the actual ages of you and your spouse.
14
Before Retirement -- Spouse's Pension
If you die before retirement while still in active service
and after completing at least 10 years of Vesting Service,
your eligible spouse will receive one -half of the Early or
Deferred Vested Pension you could have received if you had
retired on the date of your death. No reduction is made
for early payment in figuring the spouse's pension. To be
eligible your spouse must not have been legally separated
from you at the time of your death.
The spouse's pension is paid until the earlier of your
spouse's death or remarriage, with no payments after that.
You should also know that the spouse's pension will be
actuarially reduced if your spouse is more than 10 years
younger than you to compensate for the longer period of
expected payments.
Other Death Benefits
After You Retire. If you elect the basic form of pension
rather than any of the options described earlier in this
section, your beneficiary may be entitled to a death benefit.
If you were receiving a Normal or Early Pension (but not a
Deferred Vested Pension) on the date of death . . . and
had not yet received 60 monthly payments . . . your bene-
ficiary will receive the remainder of the guaranteed 60
payments.
The same death benefit is payable if you die during the
guarantee period for a Disability Pension, except that the
remainder of the payments are paid to your surviving spouse,
if any, in preference to your named beneficiaries.
Return of Member Contributions Guaranteed. Your beneficiaries
or estate are always paid the excess, if any, of your member
contributions with interest over any pension payments you
received before your death. This is true whether you die
in- service or after retirement.
ILI
L7
WHAT YOU CAN EXPECT FROM SOCIAL SECURITY
Your Social Security benefits are in addition to your
pension.
Since your tax dollars plus a matching amount from your
employer provide these benefits, you should be familiar
with Social Security.
Your full primary amount is payable at age 65• And
reduced benefits can start as early as 62. Full bene-
fits are also payable after five months of total dis-
ability at any age, and family benefits for eligible
dependents upon your disability or death. Medicare
helps pay the cost of illness for everyone over 65 --
and for anyone who has received Social Security
disability benefits for 24 months.
Here is a brief outline of Social Security coverages:
EVENT BENEFITS l
DISABILITY • Full primary amount to you.
total and
long term • Family benefits for wife and children
to age 18 (students: 22).
DEATH before • Family benefits for widow and children
retirement to age 18 (students: 22).
RETIREMENT • Full primary amount to you.
at age 65 • 50% to wife or dependent husband
when also age 65•
le
RETIREMENT • 80% of primary amount to you.
at age 62 • 37.5% to wife or dependent husband
when also age 62.
DEATH after
• 71.5%
to widow
when age
60.
retirement
• 100%
to widow
if paid at
65•
ILLNESS after • Basic Medicare for hospitals, etc
age 65 • Supplemental for doctors, etc.
17
OTHER THINGS YOU SHOULD KNOW
Reemolovment After Retirement
Should you return to work for us, your benefit checks will
stop. When you later retire, your pension will be refigured
based on your Hi -5 Pay and Benefit Service before and after
your period of retirement. If you had received any pension
checks during your retirement period, their value will be
deducted in refiguring your monthly pension.
Naming Your Beneficiary
At the time you become a Plan member you should file a form
with the Committee naming your beneficiary. You may change
your beneficiary at any time.
Remember - -it is important to keep your beneficiary choice
up to date.
Transfers Between Employers
If you transfer between participating OMRF employers, you
may be eligible for a pension from each employer, if you
elect to leave your member contributions in the Plan of
each employer and have sufficient Vesting Service to receive
retirement benfits. Separate pensions will be paid by each
OMRF employer based on your Benefit Service with each
respective employer. Your eligibility for any benefits
under the Plan will be based on your total Vesting Service
with any of the participating employers.
m
PLAN OPERATION
Administering the Plan
The Plan is administered by a Retirement Committee (or
"Board of Trustees ") composed of the City Council or other
governing authority of the employer. It is the Committee's
responsibility to see that the employee's questions are
answered, that benefits are properly computed and paid
promptly and that the Plan is operated in accordance with
the legal documents governing it. Your supervisor will
always be glad to channel your questions to the Committee
and your inquiries will always be welcome.
Managing Plan Funds
The contributions made to the Plan are held in Trust to
build a fund out of which all benefits will be paid. The
Trustee, which holds and invests the funds and makes all
benefit payments as instructed by the Committee is the
Liberty National Bank and Trust Company, Oklahoma City,
Oklahoma.
Applying For Benefits
The Personnel Department has or can get pension applica-
tions or any other forms you may need to collect your
benefits, elect a pension option, or name your beneficiary.
Someone there will assist you in filling out the forms,
if you wish.
You may return completed forms to the Personnel Department ,
or send them to the Committee. It is your responsibility
to furnish any additional information the Committee may
require, and to make sure the Committee always has your
correct address so your pension checks will reach you.
Ordinarily the Committee processes applications within 90
days, but special situations may take longer. You will
be notified of any delay.
if the Committee decides you are not eligible, it will tell
you why, refer you to applicable provisions of the plan
document or other relevant papers, and inform you when and
where you may see them.
19
Official Document
This booklet summarizes key Plan features. It does not
replace the legal document which governs in case of any
difference. You may inspect a copy of the legal document
in the Personnel Department during normal working hours.
If you would like your own copy of the legal document,
available at the cost of reproduction, send your written
request to the Retirement Committee.
Plan Permanence
It is intended that the Plan will continue indefinitely,
but since there is no way to see future developments, we
have reserved the right to terminate or amend the Plan if
it becomes necessary to do so.
ew
CERTIFICATE
CITY OF OWASSO
207 South Cedar
Owasso, Oklahoma
I, Wauhilleau Webb the undersigned duly ap-
pointed, qualified and acting City Clerk of Owasso , Oklahoma,
do hereby certify that attached hereto is a true and correct
copy of Ordinance No. 255, including Exhibit A thereto containing
Amendment No. 2 to the Employee Retirement System of Owasso,
Oklahoma, which ordinance was duly passed on the day of
1979, as the same appears of record and on
file in my office in said City.
I further certify that a quorum of the members of the City
Council of the City of Owasso was present at the meeting in
which said ordinance was passed, and that said ordinance has not
been altered, modified or rescinded and is now in full force and
effect.
IN WITNESS WHEREOF, I have hereunto affixed my name and the
official seal of the City of Owasso, Oklahoma, this day
of� >�a� 1979.
c
Wauhilleau Webti, City Clerk
City of Owasso, Oklahoma
(SEAL)
STATE OF OKLAIiOMA )
COUNTY OF TULSA )
Subscribed and sworn to before me this 01 day of
(4i�U' , 1979.
\ Notary P blic
toy Commission Expires:
A _
�i X
207 SOUTH CEDAR
PHONE 272 -2251
April 5, 1979
TO: CITY MANAGER & COUNCIL
FROM: PAYROLL CLERK
RE: RETIREMENT FUND CONTRIBUTIONS
OWASSO, OKLAHOMA
74055
In the past two days I have been in contact with Oklahoma Municipal Retirement
Fund and just today talked with Mr. Walters of A. S. Hansen, Inc. Actuarial Firm
regarding our City Retirement. The following determinations were made:
1. Our raise in retirement benefits would be retroactive back to 7/1/77; however,
the City would not be required to reimburse the $5,593.69 that was not paid
in for City share.
2. A study is done by A.S. Hansen, Inc. every two years to see how solvent our
fund is. At that time, they look at how much money is going into the fund
(both employee share and City share), and how much is being drawn out in
retirement benefits. They also look down the road to see how many are
nearing retirement age. Based on all of this, they determine what the City
share will be.
3. Even though we would not be required to reimburse the fund for the City share
of retirement, we would need to raise our contribution from 4.05% to 5.53 %,
effective with the quarter ending March 31, 1979. This would be an increase
of 1.48% or roughly an estimated total of $300.00 per month above what we are
now paying.
4. This is the year for a study to be done on our City share of retirement contri-
butions. Mr. Walters of Hansen & Assts. tells me we may not have a change at
all, even with our contributions over the past year and one -half being reduced,
because prior to the 4.05% rate, our contribution was at a higher rate. There
is really no way to determine what the City rate will be until the study is
done by Hansen.
5. If the Council should choose not to raise the retirement retroactive back to
July 1, 1977, then we would need to refund the extra 1/2% taken out of our
employee's payroll. This would effect only those still employed as those who
have quit have already drawn their retirement from the fund.
6. If we do give a refund, Hansen has suggested we do it by just not holding out
retirement from payroll until such time as this 1/2% is made up. Or, we could
give a refund in one lump sum, but'they do not recommend this method.
7. Mr. Walters of Hansen, Inc. is going to send us a booklet showing the benefits
of Plan CC, and I have copies of Plan A for comparison.
IWA
8. There are three (3) plans: Plan A, Plan CC and Plan BB. Of these plans,
Plan A is what the City has been on, with Plan CC being the one proposed
to change to (which has benefits approximately 25% above Plan A), and
Plan BB being the highest plan (with benefits approximately 50% above Plan A).
Merrilyn Merchant