HomeMy WebLinkAbout685_Modifying Defined Benefit Plan of OMRFTulsa County Clerk - EARLENE WILSON
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AN ORDINANCE OF THE CITY OF OWASSO, OKLAHOMA
ORDINANCE NO. 685
AN ORDINANCE AMENDING THE EMPLOYEE RETIREMENT SYSTEM, DEFINED
BENEFIT PLAN FOR CITY OF OWASSO, OKLAHOMA; PROVIDING RETIREMENT
BENEFITS FOR ELIGIBLE EMPLOYEES OF CITY OF OWASSO, OKLAHOMA;
PROVIDING FOR PURPOSE AND ORGANIZATION; PROVIDING FOR DEFINITIONS;
PROVIDING FOR ELIGIBILITY AND PARTICIPATION; PROVIDING FOR EMPLOYER
AND EMPLOYEE CONTRIBUTIONS; PROVIDING FOR ACCOUNTING, ALLOCATION,
AND VALUATION; PROVIDING BENEFITS; PROVIDING FOR REQUIRED NOTICE;
PROVIDING FOR AMENDMENTS AND TERMINATION; PROVIDING FOR TRANSFER
TO AND FROM OTHER PLANS; CREATING A RETIREMENT COMMITTEE AND
PROVIDING FOR POWERS, DUTIES, AND RIGHTS OF RETIREMENT COMMITTEE;
PROVIDING FOR PAYMENT OF CERTAIN OBLIGATIONS; PROVIDING FOR
DURATION AND PAYMENT OF EXPENSES; PROVIDING FOR EFFECTIVE DATE;
PROVIDING FOR A VESTING SCHEDULE; PROVIDING FOR A FUND TO FINANCE THE
SYSTEM TO BE POOLED WITH OTHER INCORPORATED CITIES TOWNS AND THEIR
AGENCIES AND INSTRUMENTALITIES FOR PURPOSES OF ADMINISTRATION,
MANAGEMENT, AND INVESTMENTS AS PART OF THE OKLAHOMA MUNICIPAL
RETIREMENT FUND; PROVIDING FOR PAYMENT OF ALL CONTRIBUTIONS UNDER
THE SYSTEM TO THE TREASURER OF CITY OF OWASSO, OKLAHOMA, AND FOR
TRANSFER OF SUCH CONTRIBUTIONS AND FUND ASSETS TO THE OKLAHOMA
MUNICIPAL RETIREMENT FUND FOR MANAGEMENT AND INVESTMENT;
PROVIDING FOR NON - ALIENATION OF BENEFITS AND LOSS OF BENEFITS FOR
CAUSE; PROVIDING FOR REPEALER AND SEVERABILITY.
BE IT ORDAINED BY CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA.
Section 1. The Employee Retirement System, Defined Benefit Plan, of the City of Owasso,
Oklahoma, is hereby amended as reflected on the attached Exhibit "A ", which is incorporated herein and
adopted by reference. These amendments shall become effective on July 1, 2001.
Section 2. The City Clerk and Mayor be and they are hereby authorized and directed to execute
the amended Retirement System Plan documents and to do all the other acts necessary to put said
amendment into effect and to maintain IRS qualification of the Plan. The executed amended document
attached hereto as Exhibit "A" is hereby ratified and confirmed in all respects.
Section 3. If, regardless of cause, any section, subsection, paragraph, sentence, or clause of this
ordinance, including the 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 4. 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
do other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject
matter covered by this ordinance.
** *END * **
The foregoing ordinance was introduced before the day of
Sept. 2001, and was duly adopted and approved b he Mayor and City Council on the
day day of See fern by or , 2001, after compliance with notice requirements of the Open Meeting
Law (25 OSA, Section et seq.).
OKLAHOMA MUNICIPAL RETIREMENT FUND
MASTER DEFINED BENEFIT PLAN
JOINDER AGREEMENT
City of owasso, a city, town, agency, instrumentality, or public trust located in the state of
Oklahoma, with its principal office at Owasso, Oklahoma, hereby establishes a Defined Benefit
Plan to be known as City of Owasso Plan (the "Plan") in the form of the Oklahoma Municipal
Retirement Fund Master Defined Benefit Plan.
Except as otherwise provided herein, the definitions in Article II of the Plan apply.
1. Dates.
This instrument is a new Plan effective.
X This instrument is an amendment, restatement and continuation of the
Previous Plan, which was originally effective July 1, 1972. this instrument
is intended to conform to the changes required by the Tax Reform Act of
1986, the Omnibus Budget Reconciliation Act of 1986, the Omnibus
Budget Reconciliation Act of 1987, the Unemployment Compensation
Amendments of 1992, the Uniformed Service Employment and
Reemployment Rights Act of 1994, the Uruguay Round Agreement Act of
1993, the Small Business Job Protection Act of 1996, the taxpayer Relief
Act of 1997 and other applicable laws, regulations, and administrative
authority, Therefore, the effective date of this Joinder Agreement is July 1,
2001, except as otherwise stated in the Plan and the Joinder Agreement.
2. Emplyee.
The word "Employee" shall mean:
X Any person other than a Leased Employee who, on or after the effective
Date, is considered to be a regular full-time employee in accorance with the
Employer's standard personnel policies and practices, and is receiving
remuneration for such services rendered to the Employer (including any
elected official and any appointed officer or employee of any department of
the Employer, whether governmental or proprientary in nature), including
person on Authorized Leave of Absence. Employees shall not include
independent contractors, Elected members of the City Council shall not be
considered to be Employees solely by reason of their holding such office.
Any person other than a Leased Employee who, on or after the Effective
Date, is considered to be regular employee in accorance with the
Employer's standard personnel policies and practices (including part-time,
seasonal and temporary employees), and is receiving remuneration for such
services rendered to the Employer (including any elected official and any
appointed officer or employee of any department of the Employer, whether
governmental or proprietary in nature), including persons on Authorized
Leave of Absence. Employees shall not include independent contractors.
Elected members of the City Council shall not be considered to be
Employees solely by reason of their holding such office.
Any person who, on or after the Effective Date,
The word "Employee" shall not include:
[ X ] Any person who is currently accruing benefits under any other state or local
retirement system.
Any person who.
3. Eligibility.
Employees shall be eligible to participate in the Plan: (Select only one)
month (any number of months up to twelve) after the Employee's
Employment Commencement Date.
[ X ] On the Employee's Employment Commencement Date.
4. The Employer hereby elects the following Plan desigm
X Mandatory Contribution Option. An Employee shall be required to
contribute to the Plan for each Plan Year the percentage of his Compensation
("Mandatory Contributions") required by the Plan. Mandatory Contributions
shall be made by payroll deductions. An Employee shall authorize such
deductions in writing on forms approved by, and it with, the Committee.
Non-Contributory Option. Participants shall not be required nor
permitted to contribute to the Plan.
5. A. Payment Options. The Employer hereby elects the following minimum
number of payments for employees eligible to receive benefits under Article
of the Plan:
X Sixty (60) monthly payments.
One hundred and twenty (120) monthly payments.
Plan Options. The Employer hereby elects the following plan designation
and percentage used in calculating benefits under Section 5.1 of the Plan.
Age 65
[ X ] The earlier of (i) and (ii) as follows:
(i) age 65
(ii) the later of age 62 and the age at which the Participant has
completed 30 years of credited service.
An employee hired at age 30 who worked for 25 years and terminated at age
55 would be entitled to unreduced payments at age 65.
MI]
age 65
the later of age 55 and the age at which the sura of the
Participant's age in completed years and the participant's
number of completed years of credited service total 80 or
greater. To be eligible, the Participant's age plus service
must be at least 80 prior to termination of employment.
I
Examples: 1. An employee hired at age 30 who worked for 25 years
and terminated at age 55 would be entitled to unreduced
payments immediately. Age 55 plus 25 years equals 80.
2. An employee hired at age 20 who worked for 30 years
and terminated at age 50 would be entitled to unreduced
payments at age 55. The employee has age plus service
points at age 50 but the minimum age for payment is 55.
3. An employee hired at age 25 who worked for 25 years
and terminated at age 50 would be entitled to unreduced
payments at age 65. Age 50 plus 25 years is less than 80, so
the Normal Retirement Age is 65.
D. Vesting Options. The Employer hereby elects the following vesting option
to determine an Employee's eligibility to receive retirement benefits.
Ten Year Cliff Vesting Schedule
Seven Year Cliff Vesting Schedule
[ X ] Five Year Cliff Vesting Schedule
E. Service Credit Prior to Effective Date. The Employer hereby elects to
include the following limitation of service prior to the effective date.
X ] No limitation
Service credit prior to the effective date shall not exceed years.
F. Service Buybacl;- The Employer hereby elects
service buyback pursuant to Section 10. 10 of the Plan
[X] The service buyback provisions of Section 10. 10 of the Plan.
Service for Worker's Compensation Period. If a Participant is on an
Authorized Leave of Absence and is receiving worker's compensation
during such Authorized Leave • Absence, such Participant
[X] shall be credited with Service for such period for purposes of vestinp
only and not for purposes of benefits, but no Employee contributions
shall be made with respect to the Participant for such period,
shall not be credited with Service for such period.
4
6. Contributions by Employees.
If Employees are required to contribute to the cost of providing benefits under this
Plan, such contributions shall be based on the plan designation selected in Section
5B above and shall apply to pay periods commencing on and after July 1, 1993.
a. The Employee contribution formula in Section 3.2 of the Plan shall use the
following maximum percentage for the Plan Option selected in Section 5B
of this Joinder Agreement:
b. [ X ]The contribution formula shall be 4.26 % of compensation. (Not to exceed
the percentages in above paragraph).
c. The contribution as annually determined each year shall be shared by the
Employee and Employer as follows:
Employee portion %
Employer portion %
(Employee plus Employer percentages must total 100%)
The contribution will be actuarially determined based on Plan assets and
liabilities as of January I of each year as a percent of payroll, which will then
be shared between the Employer and Employee as noted above. These
contribution rates will be in effect from July I of that year until June 30 of
the subsequent year.
7. Cost-of-Living Option.
For purposes of adjusting retiree and beneficiary pensions, the Employer hereby
elects the following:
[ X ] No Cost-of-Living Option.
Cost-of-Living Option. This election applies to Sections 5.1 (Normal
Pension), 5.4 (Deferred Vested Pension), 63A and 6.313 (Death After
Commencement of Pension), and 6.4 (Spouse's Pension) and provides
5
annual benefit increases of the smaller of three percent (3%) or the
percentage change in the Consumer Price Index.
The effective date of the Cost-Of-Living Option shall be _, the original date that the
Employer elected the Cost-Of-Living Option.
8. Retiree Plan Improvement Option®
Benefits payable to or on behalf of a former Employee under Article V, Article V1,
or Article VII of the Plan, which are due or in the course of payment of the Effective
Date of this Joinder Agreement, shall
be increased according to the Plan Option elected herein. Such increased
benefits shall be reflected in any periodic payments due or paid on or after
the Effective Date of the Joinder Agreement. It is not intended for this
change to be retroactive and any periodic payments due prior to such date
shall not be affected.
[X] be increased by $3.166 per month for each completed year of service
effective July 1, 2001. Such increased benefits shall be reflected in any
periodic payments due or paid after such date. It is not intended for this
change to be retroactive and any periodic payments due prior to such
date shall not be affected.
not be increased, but shall continue to be paid under the terms of the
Previous Plan.
Section 7.2 of the Plan provides for a lump sum payment form, an installment
payment form that would be payable over a fixed number of years (at which time all
payments would cease), or the purchase of an insured annuity. The Employer
hereby elects the following:
[ X ] Optional benefit forms under Section 7.2 of the Plan will not be permitted.
Optional benefit forms under Section 7.2 of the Plan will be permittel
subject to Retirement Committee approval for any such elections by
Employee, subject to the following limitation(s):
(The above election has no effect on the joint and survivor optional benefit forms
under Section 7.1).
6
10. Defined Contribution Option.
[ X ] Not applicable.
Participant shall be entitled to the benefit under this option, in addition to the
benefit determined according to Section 5B.
An account shall be created for each active Participant as of the effective
date of the option. The beginning balance of the account shall be the
Participant's Contribution Accumulation. The account shall be credited
with:
Mandatory Contributions made by the Participant after the effective
date of the option.
(2) Investment earnings at same rate as earned by the OMRF Defined
Benefit Fund.
The administrator shall determine the method of determining the investment
earnings and the date such investment earnings are credited.
this option shall be effective.
11. Committee.
The Committee, consisting of the following members, agrees to administer the Plan
pursuant to the provisions thereof
Name (Please print)
Signature
Mary Lou Barnhouse
Randy Brogdon
H.C. Williams
Rebecca Armstrong
Michael Helm
12. The Employer has consulted with and been advised by its attorney concerning
the meaning of the provisions of the Plan and the effect of entry into the Plan.
IN WITNESS WHEREOF City of Owasso has caused its corporate seal to be affixed hereto
and this instrument to be duly executed in its name and behalf by its duly authorized officers this
18th day of September, 2001.
ATTES
Title:
The foregoing Joinder Agreement is hereby approved by the Oklahoma Municipal
Retirement Fund this day of
Title:
Affidavit Of Publication
STATE OF OKLAHOMA, TULSA COUNTY, ss:
October 4th 2001
Subscribed and sworn to before me this 5th
day of October
PUBLISHER'S FEE
Published in the Owasso
Reporter, Owasso, Tulsa
County, Oklahoma, October
4, 2001.
AN ORDINANCE OF THE
CITY OF OWASSO,
OKLAHOMA
ORDINANCE NO. 685
AN ORDINANCE AMENDING
THE EMPLOYEE RETIREMENT
SYSTEM, DEFINED BENEFIT
PLAN FOR CITY OF OWASSO,
OKLAHOMA; PROVIDING
RETIREMENT BENEFITS FOR
ELIGIBLE EMPLOYEES OF
CITY OF OWASSO, OKLA-
HOMA; PROVIDING FOR
PURPOSE AND ORGANIZA-
TION; PROVIDING FOR DE-
FINITIONS; PROVIDING FOR
ELIGIBILITY AND PART-
ICIPATION; PROVIDING FOR
EMPLOYER AND EMPLOYEE
CONTRIBUTIONS; PROVIDING
FOR ACCOUNTING, ALLOCA-
TION, AND VALUATION;
PROVIDING BENEFITS; PRO-
VIDING FOR REQUIRED NO-
TICE; PROVIDING FOR
AMENDMENTS AND TER-
MINATION, PROVIDING FOR
TRANSFER TO AND FROM
OTHER PLANS; CREATING A
RETIREMENT COMMITTEE
AND PROVIDING FOR
POWERS, DUTIES, AND
RIGHTS OF RETIREMENT
COMMITTEE; PROVIDING FOR
PAYMENT OF CERTAIN
OBLIGATIONS; PROVIDING
FOR DURATION AND
PAYMENT OF EXPENSES;
PROVIDING FOR EFFECTIVE
DATE; PROVIDING FOR
VESTING SCHEDULES;
PROVIDING FOR A FUND TO
FINANCE THE SYSTEM TO BE
POOLED WITH OTHER
INCORPORATED CITIES
TOWNS AND THEIR
AGENCIES AND INSTRU-
MENTALITIES FOR PUR-
POSES OF ADMINISTRATION,
MANAGEMENT, AND IN-
VESTMENTS AS PART OF
THE OKLAHOMA MUNICIPAL
RETIREMENT FUND;
PROVIDING FOR PAYMENT
OF ALL CONTRIBUTIONS
UNDER THE SYSTEM TO THE
TREASURER OF CITY OF
OWASSO. OKLAHOMA, AND
FOR TRANSFER OF SUCH
CONTRIBUTIONS AND FUND
ASSETS TO THE OKLAHOMA
MUNICIPAL RETIREMENT
FUND FOR MANAGEMENT
AND INVESTMENT; PRO -
VIDING FOR NON -
ALIENATION OF BENEFITS
AND LOSS OF BENEFITS FOR
CAUSE; PROVIDING FOR
REPEALER AND SEVER -
ABILITY.
BE IT ORDAINED BY CITY
COUNCIL OF THE CITY OF
OWASSO, OKLAHOMA.
Section 1. The Employee
Retirement System, Defined
Contribution Plan, of the City of
Owasso, Oklahoma, is hereby
amended as reflected on the
attached Exhibit "A ", which is
incorporated herein and adopted
by reference. These amend-
ments shall become effective on
July 1, 2001.
Section 2. The City Clerk and
Mayor be and they are hereby
authorized and directed to
execute the amended Re-
tirement System Plan docu-
ments and to do all the other
acts necessary to put said
amendment into effect and to
maintain IRS qualification of the
Plan. The executed amended
document attached hereto as
Exhibit "A" is hereby ratified and
confirmed in all respects.
Section 3. If, regardless of
cause, any section, subsection,
paragraph, sentence, or clause
of this ordinance, including the
System as set forth in Exhibit "A"
is held invalid or to be un-
constitutional, the remaining
sections, subsections, para-
graphs, sentences, or clauses
shall continue in full force and
effect and shall be construea
thereafter as being the entire
provisions of this ordinance.
Section 4. 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.
The foregoing ordinance was
introduced before the Owasso
City Council on the 18th day of
September, 2001, and was duty
adopted and approved by the
Mayor and City Council on the
18th day of September, 2001,
after compliance with notice
requirements of the Open
Meeting Law (25 OSA, Section
301, et seq.)
Mary Lou Bamhouse
MAYOR
(SEAL)
ATTEST:
Marcia Boutwell
CITY CLERK
Approved as to form and
legality on September 18, 2001.
Ronald Cates
CITY ATTORNEY