ORD 36362 - Amend section 22-40 of municipal code re employees' retirement system r•
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B - Personnel Department_
is � Omaha/Douglas Civic Center
*47 � 1 �' r- 1819 Famam Street,Suite 506
.. ` `' `�J Omaha,Nebraska 68183-0506
(402)444-5300
471.1)FEBRV*+ CITY C(.=his FAX(402)444-5314
City of Omaha nv A114, tY !.?, c Cecil L.Hicks,Jr.
Mike Fahey,Mayor Director
Honorable President
•
And Members of the City Council
The attached ordinance clarifies the status of a disabled retiree from the Civilian Pension System,
as to their vested rights, if they should be removed from the disabled status. Over the last couple
of years, four (4) individuals, who had been previously placed off on a service or non-service
connected disability, had physically improved sufficiently to be no longer considered disabled.'
Three (3) of these individuals requested reemployment but were not hired back, apparently for a
variety of reasons. A concern was then raised, as to their status under the Civilian Pension
System since all four had over five (5) years of service credit. Under Sec 22-40. Deferred
Vesting Rights.:
"Any member of the system whose employment with the city shall be severed or
terminated voluntarily or for cause... prior to attaining eligibility under section
22-30, but after attaining at least five years of service, may in lieu of receiving a
refund of his/her contributions under section 22-30, elect to leave such member's
contributions under section 22-30, elect to leave such member's contributions in
the system and thereby shall be eligible for a deferred service retirement
pension..."
The problem is that the above language addresses member, which is defined under Sec 22-23.
Definitions as:
"Member: Any person who by virtue of his/her employment status is participating
in the system with his/her ongoing contributions."
Under the same definition provision,retiree is identified as:
"Retiree: Any person receiving disability or regular service retirement
compensation who no longer is contributing to the fund."
•
Honorable President
and Members of the City Council
Page -2-
If these individuals were still members of the system as compared to retirees, all four would
qualify for a vested pension, either upon reaching the Rule of 80 or at age 60. Based on this
sequence of facts, as compared to the current language under the Civilian Pension System, the
Board of Trustees requested that language be added to Sec 22-40 to clearly state how such
individuals should be handled in such situations. This proposed language would clarify that
disabled retirees, removed from their disability status, would be eligible for a vested pension.
The Civilian Pension Board of Trustees, at their regularly scheduled meeting of July 16, 2003
unanimously approved this modification.
Your favorable consideration of this proposed change is now being requested. Please contact me
if you have any questions or concerns about this change.
Respectfully submitted, Referred to City Council for Consideration:
Cecil Hicks Date Mayor's Office Date
Personnel Di ct r
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ORDINANCE NO. c3A34,1--
AN ORDINANCE to amend Section 22-40 of the Omaha Municipal Code pertaining to the City
2 of Omaha Employees' Retirement System; to provide vesting rights to retirees whose
3 disability pensions are terminated due to a finding that the retiree is no longer unfit for
4 duty; and to provide an effective date.
5 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
6 Section 1. That Section 22-40 of the Omaha Municipal Code is hereby amended to
7 read as follows:
8 "Sec. 22-40. Deferred vesting rights.
9
10 Any member of the system whose employment with the city shall be severed or
11 terminated voluntarily or for cause, or any member on an approved leave of
12 absence, except a member on military leave or a member on sick leave without
13 pay, or any retiree, whose disability pension under section 22-35 has been
14 terminated by the board of trustees due to a finding that the retiree is no longer
15 unfit for active duty due to the injury or sickness for which the disability pension
16 was granted, prior to attaining eligibility under section 22-30, but after attaining at
17 least five years of service, may, in lieu of receiving a refund of his/her
18 contributions under section 22-30, elect to leave such member's or such retiree
19 terminated from disability's contributions in the system and thereby shall be
20 eligible for a deferred service retirement pension at or above the age of 55 50
21 years computed in accordance with sections 22-30 and 22-32. The legal right to a
22 pension or benefit for the members, retirees terminated from disability, and
23 beneficiaries entitled thereto shall become effective when such pension or benefits
24 become payable, and the same shall not be impaired, abrogated, or diminished
25 thereafter.
26
27 An election to seek a deferred service retirement pension shall occur if the
28 employee does not file a written request to withdraw his/her pension contributions
29 with the personnel department. An election to request refund may be made at any
30 time prior to the commencement of pension benefits.
31
32 In the event a member or a retiree terminated from disability, who has elected to
33 vest, dies before he or she commences receiving such member's service retirement
34 pension, the surviving spouse qualified to receive pension benefits under the
35 provisions of section 22-36 or, in the event the surviving spouse is not entitled to
36 benefits under said section, the deceased's member's natural or legally adopted
ORDINANCE NO. c318.3�,.1.
PAGE -2-
1 children who qualify for pension benefits under section 22-36 shall be entitled to
2 receive a monthly pension; and, in addition thereto, each child shall receive five
3 percent of the accrued service pension, but not to exceed a maximum of 20
4 percent for all children, until age 18 or marriage, whichever event occurs first, as
5 set forth in section 22-36, or, in lieu thereof, at the option of the qualified
6 surviving spouse, or, if not qualified, the qualified surviving child or children,
7 shall be entitled to receive an amount payable in a lump sum equal to the
8 member's deceased's total contributions, including interest thereon to date of
9 death.
10
11
12 pension, the qualified surviving spouse, or, if not qualified, the qualified surviving
13 child or children, shall be entitled to receive an amount payable in a lump sum
14 equal to the member's total contribution, including interest thereon to date of
15 death. In the event such member or such retiree terminated from disability dies
16 after commencing to receive the service retirement pension, the qualified
17 surviving spouse or if not qualified, the qualified surviving child or children, shall
18 be entitled to receive a monthly pension until age 18 or marriage, whichever event
19 occurs first, as set forth in section 22-36, or, in lieu thereof, at their option, shall
20 be entitled to receive an amount payable in a lump sum equal to the balance, if
21 any, of the total accumulated contributions, including interest thereon as of the
22 date the member's or retiree terminated from disability's service retirement
23 pension first commenced, less all service retirement pension payments made prior
24 to date of death, plus a death benefit in the sum of$5,000.00. In the event that
25 more than one child qualifies for benefits under the provisions of this section,
26 such benefits shall be apportioned equally among said children.
27
28 A retiree terminated from disability shall be eligible for a deferred service
29 retirement as specified hereinabove, whether or not any of his or her
30 contributions remain in the system at the time of termination of the disability
31 pension.
32
33 A member or retiree terminated from disability who elects the deferred vesting
34 rights in accordance with this section shall retain only the specific benefit rights
35 as set forth in this section. The waiver of benefits provided for herein shall
36 include, but not be limited to, health insurance coverage on and after the date that
37 the member's employment is severed or terminated or the retiree is terminated
38 from disability. All other rights, benefits and privileges to which the member or
39 retiree terminated from disability was entitled prior to his date of termination shall
40 be null and void on his date of termination."
41
42 Section 2. That Section 22-40 as heretofore existing is hereby deleted.
43
ORDINANCE NO. (31
PAGE -3-
Section 3. This Ordinance shall be in full force and take effect fifteen days from and
2 after its passage.
INTRODUCED BY COUNCILMEMBER
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APPROVED BY:
)'\'‘.41-1 7,4/2,3
MAYOR OF THE CITY OF MAHA DATE
PASSED AUG 1 9 2003 7 o
ATTEST; { y1
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CI •L ERK OFT -..CITY OF OMAH D
APPROVED AS TO O
#(9'` ITY ATTORNEY DATE
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NOTICE TO PUBLIC" THE DAILY RECORD
The following Ordinance has been set for OF Ow R H
�]n
City Council hearing�on.,August 12,2003a l�f, A
wv* w-
at 2:00 o'clock p.m.,• m t e egislative
Chambers Omaha/Douglas Civic Center, RONALD A. HENNINGSEN, Publisher
1819 Street. (.which hearing.,all
persons interested,ma a a;d. PROOF OF PUBLICATION
AN ORDINANCE,to endJ'Section 22-40'
of the Omaha.,Municipa,.Godee"ertaining to
the City'of'Omaha's m to ees`. Retirement
S _-id p UNITED STATES OF AMERICA,
ysterri;�to,prov.de.:. tfn nghtsLto.retirees�
whos lability: pe•lion mare terminated The State of Nebraska, SS.
due to-.a,fin' irig that,the.re tree is no•longer District of Nebraska unfit for duty; and•to•'provide an effective ,
date. 1° f ,*. ..1 .r:.•:..' County of Douglas,
BUSTER BROWN,
8-8-03 4• City Clerk City of Omaha,
LYNDA K.HENNINGSEN
being duly sworn,deposes and says that she is
ASSOCIATE PUBLISHER
of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
published daily in the English language, having a bona fide paid
circulation in Douglas County in excess of 300 copies, printed in
Omaha,in said County of Douglas,for more than fifty-two weeks last
past; that the printed notice hereto attached was published in THE
DAILY RECORD,of Omaha,on
August 8, 2003
s' . , aper during that time was regularly published and
• ,,�, ! ) •r ‘ in the Conn of Dougl , tate of Nebraska.
ur'GENERAz•••ti'Q ,t�l
"%: �4 Subs 'bed in my presence and swo to before
Publisher's Fee N$ ' 0 me this 8 t h day of
`I t _ August 03
dcittal Copie f 20
sj4.�rq. `�t .70
• \{�OF NE��- Notary P lic' f t County,
A"kveyt, ate o Nebraska
4
"NOTICE TO PUBLIC"
ORDINANCE NO.36362 THE DAILY RECORD
AN ORDINANCE to amend Section 22-40
of the Omaha Municipal Code pertaining to OF OMAHA
the City of Omaha Employees' Retirement
System;to provide vesting rights to retirees
whose disability pensions are terminated RONALD A. HENNINGSEN, Publisher
due to a finding that the retiree is no longer
unfit for duty; and to provide an effective PROOF OF PUBLICATION
date.
SUMMARY:
AN ORDINANCE to amend Section 22-40 UNITED STATES OF AMERICA,
of the Omaha Municipal Code pertaining to
the City of Omaha Employees' Retirement The State of Nebraska, SS.
System;to provide vesting rights to retirees District of Nebraska,
whose disability pensions are terminated
due to a finding that the retiree is no longer County of Douglas,
unfit for duty; and to.provide an effective City of Omaha,
date.
PASSED: August 19,2003,7-0
APPROVED BY: LYNDA K.HENNINGSEN
MIKE FAHEY 8/21/03
MAYOR OF THE •CITY OF OMAHA being duly sworn,deposes and says that she is
BUSTER BROWN,
City Clerk ASSOCIATE PUBLISHER
8-26-03
of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
published daily in the English language, having a bona fide paid
circulation in Douglas County in excess of 300 copies, printed in
Omaha,in said County of Douglas,for more than fifty-two weeks last
past; that the printed notice hereto attached was published in THE
DAILY RECORD,of Omaha,on
August 26, 2003
That said Newspaper during that time was regularly published and
in general circulation in the Co of Dougla ,arid tate of Nebraska.
y H. M OS T��/
•'GEN ERA;%yip ubstAed in my presence and sworn before
Publisher's Fee 19. 10 me this 26 th day of
August 20 03
; OfIditionalliop
Tao• 19 .10
t%%1:4Y 6,ZQOtO Q` Notary Pu c' daglas-County,
••' ate o ebraska
T� ur t\itvX t
Members of the City Council,
This ordinance change comes before you to close a gap of benefits created by the
disability monitoring set into place by the City of Omaha Civilian Pension Board
of Trustees. I don't have the exact dates, but was told that about ten years
ago the Civilian Pension Board started a monitoring process that would require
an employee on a service connected disability to be evaluated at regular time
intervals. This process is a positive fiduciary step taken by the board.
In the past ten years there have been two employees that have been deemed fit
for employment and removed from the rolls of disability roster and dropped from
any further benefits of the pension system. The first employee affected
occurred about two and half years ago just as I was coming onto the board as the
'outside' member. I don't recall all of the specifics of this employee. But
recently a woman who had been a twenty plus year employee and had been on a
service connected disability for torn tendons in her hands for the past six
years came before the board and was deemed fit for employment in the capacity
she had formerly held as a data entry clerk. As the city does not have any
permanent jobs available, she also was dropped from the rolls of the pension
system and now has lost access to any benefits she may have accrued during her
twenty plus years of employment.
This ordinance change will allow this employee and any future retirees that may
be defined fit for employment prior to reaching eligibility of a service
retirement, to be vested into the pension system and allow them access to a
future service pension benefit upon reaching service retirement age. In these
cases their pension amount would utilize their working years
plus their disability years as definition of years of service. This is
consistent with current language of converting an active disability pensioner to
a service pension upon reaching the age of sixty five.
I think it is a positive step to monitor the functionality of service connected
disabled pensioners. I also recognize the responsibility of removing these
individuals off of the service disability roster once their health improves to
the point that they are deemed employable. What this ordinance will do is allow
them access to their past years of service to secure a future service pension.
The intent of the monitoring was not to cause the employee to lose this type of
access, yet the ordinance does not allow provisions for such access.
I do not know if Allen Herink, City Comptroller and financial representative for
the Civilian Pension Board has been able to identify what if any liability this
will cause the pension system. When you identify that there have been only two
incidences in ten years where this scenario even arises, I cannot see that this
would be a major liability, if any. The fact that their disability amount would
no longer be paid out during the years of employability and service retirement
age is actually a plus for the system. Additionally, at the conversion time,
the amount of years on disability will now be reduced.
Please look upon this ordinance favorably and vote yes when this ordinance comes
before you. I will be back in town for the final hearing and will be available
for any questions you might have.
Thank you,
Peggy Gilmore
Member, City of Omaha Civilian Pension Board
402-222-7283
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