Section 103-500; Ord. 17444; Amending Chapter 18 RE: Police and Fire Pension Plans


Ordinance No.            17444              Council Bill No.           B 310-02A            

AN ORDINANCE

amending Chapter 18 of the City Code as it relates to Police and Fire Pension Plans; and fixing the time when this ordinance shall become effective.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:

    SECTION 1.  Chapter 18 of the Code of Ordinances of the City of Columbia, Missouri, is hereby amended as follows:

    Material to be deleted in strikeout; material to be added underlined.

ARTICLE II.

POLICE OFFICERS AND FIREFIGHTERS*

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DIVISION 2.
                                
POLICE OFFICERS

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Sec. 18-40. Contributions from covered employees.

     (a)     Each cCovered police employees shall be assessed and required to pay into the fund 3.5% of their compensation. fifty (50) per cent of the excess of the rate of contributions for the base plan benefits over twenty-two and forty-four hundredths (22.44) per cent of his applicable rate of pay as determined by the annual actuarial report required by this section. In addition, each covered police employee shall be assessed and required to pay into the fund all the cost of the enhanced plan benefits (as defined in section 18-41) in excess of the city contribution toward the enhanced plan benefits of one and six-tenths (1.6) per cent of the base of active payroll. (This amount is to pay for the 1996 enhancement of benefits and is subject to annual adjustments.) The calculation of the respective costs of providing and maintaining these benefits shall be calculated annually by an actuary chosen by the administrator upon the recommendation of the PRB, and shall be reported to the city council by July 1 of each year. The cost of enhanced plan benefits shall be calculated by subtracting the cost of the actuarial determined rate of the base plan benefits from the cost of the actuarial determined rate of the enhanced plan benefits.

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Sec. 18-40.1. City contributions.

     (a)     The city shall pay into the police retirement fund the rate of contribution for the base plan benefits up to twenty-two and forty-four hundredths (22.44) per cent of active payroll on covered employees. If the cost of the base plan benefits exceeds twenty-two and forty-four hundredths (22.44) per cent of active payroll, the city shall pay toward the base plan benefits fifty (50) per cent of the excess of the cost of the base plan benefits over twenty-two and forty-four hundredths (22.44) per cent of active payroll.

     (b)     In addition, the city will pay into the police retirement plan up to 1.6 per cent of the rate of contribution for the enhanced plan benefits.

     (c)     The calculation of the respective costs of providing and maintaining the plan and benefits shall be calculated annually by an actuary chosen by the administrator upon recommendation of the PRB and shall be reported to the city council by July 1 of each year.

Sec. 18-41. Definitions.

    For the purposes of this division, the following words and terms shall have the meanings respectively ascribed:

. . .

    Base plan benefits. Base plan benefits include disability retirement benefits determined by section 18-46, death benefits determined by section 18-47 and benefits determined by subsections (1) or (2) below. Covered employees employed on or prior to October 1, 1991, could elect either plan set out in subsections (1) or (2) below. Covered employees employed after October 1, 1991, are required to be in base plan benefits set out in subsection (1) below.

     (1)    Prior to age sixty-two (62), a covered employee retired due to age or service shall receive two and one-half (2.5) per cent of highest average salary per year of service up to twenty (20) years, according to the eligibility requirements set out in this division, plus an additional two (2) per cent of highest average salary for each year of service beyond twenty (20) years, up to twenty-five (25) years, or a maximum of sixty (60) per cent of highest average salary for twenty-five (25) years of covered employment. This benefit continues for life.

     (2)    Prior to age sixty-two (62), a covered employee retired due to age or service shall receive the same base benefit as set out in subsection (a) above. Employees retiring after twenty (20) or more years of service covered by this subsection shall receive an increase of base benefit of two (2) per cent of the calculated retirement benefit on the anniversary date of the retirement, up to age sixty-two (62). After age sixty-two (62), these covered employees retired due to age or service shall receive one and forty-six-hundredths (1.46) per cent of highest average salary for each year of service up to a maximum base benefit of thirty-six and one-half (36.5) per cent of highest average salary. The benefit calculated at age sixty-two (62) is then increased by two (2) per cent for each year from retirement to age sixty-one (61). This benefit is then payable from age sixty-two (62) and increased in each future year by two (2) per cent of the preceding year's benefit amount.

. . .

    Enhanced plan benefits. Employees covered by base plan benefits subsection (1) shall be covered by enhanced plan benefits subsection (1). Employees covered by base plan benefits subsection (2) shall be covered by enhanced plan benefits subsection (2).

     (1)    A covered employee retired due to age or service shall receive an enhanced benefit of three (3) per cent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the covered employee shall receive an additional two (2) per cent of highest average salary per year, up to a maximum of seventy (70) per cent for twenty-five (25) years of service. This benefit shall continue for life.

     (2)    A covered employee covered under this option of the plan shall receive, up to age sixty-two (62), a benefit as set out in subsection (1) above. In addition, a covered employee retiring prior to age sixty-two (62) according to the eligibility requirements of this plan shall receive an increase in the first month of each plan year after retirement of two (2) per cent of the enhanced retirement benefits per year up to age sixty-two (62). After age sixty-two (62), all employees retired under this option shall receive one and ninety-six hundredths (1.96) per cent of the highest average salary times the number of years of continuous service up to twenty (20) years. For each year over twenty (20), one and forty-six hundredths (1.46) per cent of highest average salary is added. The maximum benefit is forty-six and five tenths (46.5) per cent of highest average salary with twenty-five (25) years of continuous service. The benefit calculated at age sixty-two (62) is then increased by two (2) per cent for each year from retirement to age sixty-one (61). The benefits calculated at age sixty-two (62) shall be increased each future year of retirement by two (2) per cent. The benefit calculated at age sixty-two (62) is then payable from age sixty-two (62) and increased in each future year by two (2) per cent of the preceding year's benefit amount.
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    Plan benefits.  Plan benefits include disability retirement benefits determined by Section 18-46, death benefits determined by Section 18-47 and benefits determined by subsections (1) or (2) below.  The plan benefits of subsection (1) below apply to covered employees hired after October 1, 1991 and covered employees employed on October 1, 1991 who elected the benefits of subsection (1).  The plan benefits of subsection (2) below apply to covered employees employed on October 1, 1991 who elected the benefits of subsection (2).  

(1)    A covered employee retired due to age or service shall receive three (3) per cent of highest average salary per year of covered employment up to twenty (20) years. For each year of service in covered employment over twenty (20), the covered employee shall receive an additional two (2) per cent of highest average salary per year, up to a maximum of seventy (70) per cent for twenty-five (25) years of service. This benefit shall continue for life.

    (2)    A covered employee covered under this option of the plan shall receive, up to age sixty-two (62), a benefit as set out in subsection (1) above. In addition, a covered employee retiring prior to age sixty-two (62) according to the eligibility requirements of this plan shall receive an increase in the first month of each plan year after retirement of two (2) per cent of the retirement benefits per year up to age sixty-two (62). After age sixty-two (62), all employees retired under this option shall receive one and ninety-six hundredths (1.96) per cent of the highest average salary times the number of years of continuous service up to twenty (20) years. For each year over twenty (20), one and forty-six hundredths (1.46) per cent of highest average salary is added. The maximum benefit is forty-six and five tenths (46.5) per cent of highest average salary with twenty-five (25) years of continuous service. The benefit calculated at age sixty-two (62) is then increased by two (2) per cent for each year from retirement to age sixty-one (61). The benefits calculated at age sixty-two (62) shall be increased each future year of retirement by two (2) per cent. The benefit calculated at age sixty-two (62) is then payable from age sixty-two (62) and increased in each future year by two (2) per cent of the preceding year's benefit amount.
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    SECTION 2.  The changes in the contribution rates set forth in Section 1 shall apply to compensation earned for the pay period beginning on September 29, 2002 and ending on October 12, 2002 and shall be first applied to employee compensation paid on October 18, 2002.

    SECTION 3.  This ordinance shall be in full force and effect from and after October 5, 2002.

    PASSED this 16th day of September, 2002.