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ORD 33992 - Amend section 22-40 of municipal code re deferred vesting rights • fit,?MA,NF RECEIVED Law Department —'rr ' Omaha/Douglas Civic Center 1819 Farnam Street,Suite 804 Omaha,Nebraska 68183-0804 (402)444-5115 CITY CLERK E R Kr Telefax(402)444-5125 O��TFDFEBR���� OMANA, NEi�3!\�.3K�x+ City of Omaha Herbert M.Fide Hal Daub,Mayor City Attorney Honorable President and Members of the City Council, Attached you will find an amendment to Section 22-40 of the Omaha Municipal Code. Chapter 22 relates to the Police and Fire and the Civilian Pension Systems. The particular section before you applies only to the Civilian Pension System. The proposed amendment has several purposes. First, and probably most significant to certain members of the System, is a change which allows for a ninety (90) day window of time in which a prior City employee may file for a deferred service retirement. The ordinances governing the Civilian Pension System allowed employees who were severing their employment with the City the opportunity to apply for a deferred service retirement. That provision generally allowed one who had not qualified for a pension, but who had at least twenty(20)years of employment with the City,the option to leave their pension contributions in the system and at some point in time on or after reaching age 55 begin receiving the deferred pension. This proposed ordinance would allow individuals who had left the employ of the city to exercise the right to request a deferred service retirement. Heretofore, it has been the advice of the Law Department that one must be an employee at the time they made application for a deferred service retirement. This ordinance would have the effect of allowing individuals who are no longer employees to apply for that particular form of a pension. The proposed ordinance would also provide for notifying all such prior employees of their right to seek a deferred service retirement. The proposed ordinance also contains provisions that would automatically refund pension contributions ninety(90) days after employment is severed unless the employee affirmatively files an election for a deferred service retirement pension. Finally, under the proposed ordinance an employee who has elected to receive a deferred service retirement may rescind that election at any time prior to the pension becoming effective. These changes were viewed by the Civilian Pension System Board of Trustees as being curative of certain inequities that have occasionally occurred. In the past employees have severed their employment with.the City without indicating either an election to receive a deferred service retirement nor have they received a refund of pension contributions. The Civilian Pension System Board of Trustees unanimously supports the proposed changes. Honorable President and Members of City Council August 27, 1996 Page 2 On behalf of the Civilian Pension System Board of Trustees, your favorable consideration of the Y attached ordinance is appreciated. Sincerely, Kent N. Whin ry Deputy City Attorney P:\LAW\4826.SKZ O n ORDINANCE NO. 4 3)90 1 AN ORDINANCE to amend Section 22-40 of the Omaha Municipal Code entitled"Deferred vesting 2 rights."; to provide that employees who qualify for a deferred service retirement shall 3 automatically elect to receive same unless the employee applies to withdraw his/her pension 4 contributions; and further to provide that prior employees who have not withdrawn their 5 pension contributions nor previously applied for a deferred service pension will be granted 6 a ninety-(90) day period to apply for a deferred service retirement, and to provide the 7 effective date hereof. 8 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA: 9 Section 1. That Section 22-40 of the Omaha Municipal Code is hereby amended to read as 10 follows: 11 Sec. 22-40. Deferred vesting rights. 12 Any member of the system whose employment with the city shall be 13 severed or terminated voluntarily or for cause, or any member on an 14 approved leave of absence, except a member on military leave or a 15 member on sick leave without pay,prior to attaining eligibility under 16 section 22-30, but after attaining at least five (5) years of service, 17 may, in lieu of receiving a refund of his contributions under section 18 22-30, elect to leave such member's contributions in the system and 19 thereby shall be eligible for a deferred service retirement pension at 20 or above the age of fifty-five(55)years computed in accordance with 21 sections 22-30 and 22-32. The legal right to a pension or benefit for 22 the members and beneficiaries entitled thereto shall become effective 23 when such pension or benefits become payable, and the same shall 24 not be impaired, abrogated, or diminished thereafter. 25 An election to seek a deferred service retirement pension shall occur 26 if the employee does not file a written request to withdraw his/her 27 pension contributions with the Personnel Department. An election to 28 request refund may be made at any time prior to the commencement 29 of pension benefits. Furthermore, any prior employee who has not O 1 ORDINANCE NO. 3q97 PAGE-2- 1 withdrawn his/her pension contributions shall have ninety (90) days, 2 from and after the effective date of this ordinance,to file an election 3 for a deferred service retirement pension. The procedure hereinafter 4 set forth shall be followed with respect to those employees whose 5 employment was severed prior to the effective date of this ordinance 6 and have not elected either a deferred service retirement pension or 7 refund of pension contributions: 8 ) Any prior employee who requested neither a deferred service 9 retirement nor a refund of pension contributions'shall be 10 notified in writing immediately after the effective date of this 11 ordinance of that individual's right to seek a deferred service 12 pension. The right to request and receive a deferred service 13 retirement pension shall be available only to those individuals 14 who qualify for said benefit by virtue of the ordinances in 15 effect at the time that City employment was severed. 16 The written notification shall advise the prior employee that 17 he/she has ninety (90) calendar days from and after the 18 effective date of this ordinance to file an application for a 19 deferred service retirement. The notice shall also indicate that 20 such filing must be received by the Personnel Department 21 within this time period. 22 ) The notice shall contain the statement that a failure to file an 23 election for a deferred service retirement pension shall 24 constitute a waiver of same, and that a refund of pension 25 contributions will automatically occur at the conclusion of the 26 ninety (90) day period. 27 Any individual electing to receive a deferred service 28 retirement pension_pursuant to the provisions of subsection 29 22-40 shall have the option of rescinding that election. An 30 employee or individual exercising the right of recision shall 31 do so in writing by filing same with the Personnel Department 32 The provisions of subsections a)through d) of this ordinance 33 shall not allow the surviving spouse or children of a deceased 34 prior employee whose employment with the City of Omaha 35 was severed prior to the effective date of this ordinance, to 36 retroactively apply for a spouse's or children's deferred O ORDINANCE NO. 33 PAGE-3- 1 services retirement pension. In such cases the 2 Civilian Pension System shall take appropriate action 3 to provide the unrefunded pension contributions to the 4 appropriate beneficiary/heirs. 5 In the event a member,who has elected to vest, dies before he or she 6 commences receiving such member's service retirement pension,the 7 surviving spouse qualified to receive pension benefits under the 8 provision of section 22-36 or in the event the surviving spouse is not 9 entitled to benefits under said section,the deceased member's natural 10 or legally adopted children who qualify for pension benefits under 11 section 22-36, shall be entitled to receive a monthly pension; and, in 12 addition thereto, each child shall receive five (5) percent of the 13 accrued service pension,but not to exceed a maximum of twenty(20) 14 per cent for all children, until age eighteen (18) or marriage, 15 whichever event occurs first, as set forth in section 22-36, or in lieu 16 thereof, at the option of the qualified surviving spouse or if not 17 qualified, the qualified surviving child or children, shall be entitled 18 to receive an amount payable in a lump sum equal to the member's 19 total contribution, including interest thereon to date of death. In the 20 event such member dies after commencing to receive the service 21 retirement pension,the qualified surviving spouse or if not qualified, 22 the qualified surviving child or children, shall be entitled to receive 23 an amount payable in a lump sum equal to the member's total 24 contribution, including interest thereon to date of death. In the event 25 such member dies after commencing to receive the service retirement 26 pension, the qualified surviving spouse or if not qualified, the 27 qualified surviving child or children, shall be entitled to receive a 28 monthly pension until age eighteen(18)or marriage,whichever event 29 occurs first, as set forth in section 22-36, or in lieu thereof, at their 30 option shall be entitled to receive an amount payable in a lump sum 31 equal to the balance, if any, of the total accumulated contributions, 32 including interest thereon as of the date the member's service 33 retirement pension first commenced, less all service retirement 34 pension payments made prior to date of death,plus a death benefit in 35 the sum of five thousand dollars ($5,000.00). In the event that more 36 than one (1) child qualifies for benefits under the provisions of this 37 section, such benefits shall be apportioned equally among said 38 children. • ORDINANCE NO. 3 3 / /,? PAGE-4- 1 A member who elect the deferred vesting rights in accordance with 2 this section shall retain only the specific benefit rights as set forth in 3 this section. All other rights, benefits and privileges to which the 4 member was entitled prior to his date of termination shall be null and 5 void on his date of termination. 6 Section 2. That Section 22-40 of the Omaha Municipal Code as heretofore existing is hereby 7 repealed. 8 Section 3. This Ordinance shall be in full force and take effect fifteen(15) days from and 9 after the date of its passage. INTRODUCED BY OUNCILMEMBER APPROV 4,1 . a MA OR OF THE CITY OF OMAHA PASSED SEP 1 7 1996 ATTEST: CI ERK OF T CITY OF OMAHA APPROVED AS RM: ASSTS:1:74ifef CITY TTORNEY /39)LI 7-2 P:\LAW\4055.SAP a r ♦ . 51 0 + t—• a .0 0 A PO W lir rc < w 0 Ull 1`) 0 \ � In IN 0 � 0 \ Is, 2#1 ID • DJi N � CD CI)r - Q_ -- - - -0E ci- .-. (I) — 3O T1 Cu CD CD CD -5 J. O J•= = C J. C /-1 W "� '_- N = c+ c+ —5 = CD c+ (I) Cu Cu C_1 = z /� X CD M CD J. 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