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HomeMy WebLinkAbout2551 x� it**4 RESOLUTION NO. 2551 A RESOLUTION PROVIDING FOR AND CREATING A GROUP RETIRE- MENT AND PENSION PLAN FOR THE NON-UNIFORM EMPLOYEES OF THE CITY OF LITTLE ROCK; AND FOR OTHER PURPOSES. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. There is hereby created a Group Retirement and Pension Plan for the non-uniform employees of the City of Little Rock, to be effective July 1, 1960, which Plan is in words, form and figures as follows: GROUP RETIREMENT PLAN CITY OF LITTTR ROCK For non-unit orm employees of the City of Little Rock (Effective July 1, 1960) Section 1 - Introductory Statement The City of Little Rock hereby establishes a pension plan as hereinafter set forth for the benefit of the eligible employees of the City of Little Rock, pursuant to authority of the Laws of the State of Arkansas. In order to provide for the funding of the prespective retirement benefits under the pension plan, the City of Little Rock shall enter into a Group Annuity Contract to be effective July 1, 1960 with a Life Insur- ance Company licensed to do business in this state. All contributions made pursuant to Sections 4.1, 4.2, and 4.3 hereof shall, subject to the terms of the Group Annuity Contract, be applied to purchase benefits provided herein. SECTION 2. - Definitions Whenever the following Terms are used in this Plan, they shall have the meanings indicated below: TERM MEANING "Age" Age at nearest birthday "Employer" The City of Little Rock "Plan" The Group Retirement Plan for non-uniform employees of the City of Little Rock, as set forth herein, and as may be amended from time to time. "Eligibility Date" For 1960, May 1: for 1961 and thereafter, July 1 "Effective Date" The Effictive Date of the Plan means July 1, 1960 "Board" The Board of Directors of the City of Little Rock -2- Section 2 - Definitions continued "Continuous Service" A period of uninterrupted full-time employment with the Employer. Unless employment is actually ter- minated, temporary absence or part-time employment for a period authorized by the Employer because of sickness or injury, or absence for any period not exceeding two months during an authorized vacation, any period of authorized absence for military service leave of absence or layoff, shall not be construed as interrupting continuity of service and shall be included in determining length of continuous service with the Employer. For the period prior to July 1, 1960, completed years of service, even though interrupted by termination during such period shall not be construed as inter- rupting oontinu±y c." service and shall be included in determining length of continuous service with the Employer. On and after July 1, 1960, if the full-time employ- ment of an employee is actually terminated or inter- rupted for any reason and if at any time he subseq- uenttr resumes full-time employment with the Employer, he shall be treated as any other new employee for the purposes of this Contract. "Effective Earnings" The participant' s rate of compensation from the Employer, excluding overtime, commissions, bonuses, deductions for absences, and any other additions to or deductions from regular compensation. "Normal Retirement The first day of the calendar month coincident with Date" or immediately following the Participant' s Normal Retirement Birthday. "Normal Retirement The Normal Retirement Birthday of a participant Birthday" shall be the birthday shown below: (A) Participant' s age last Normal Retirement birthday on May 1, 1960: Birthday 56 through 59 10th birthday after May 1, 1960 60 and over 70th birthday (B) All other particants 65th birthday "Period Certain" Five Years "Retirement Plan A committee shall consist of five persons who Committee" shall be appointed by and serve at the pleasure of the Board. Vacancies therein shall be filled in the same manner as appointments. Any member of the Committee may resign by delivering his written resig- nation to the Board or to the Secretary of the Committee, effective upon delivery or at any later date specified therein. At inception of the Plan this Committee shall be composed of -me member of the Board, The Director of the Little Rock Civil Service Commission, The Director of Finance of the City of Little Rock and two members to be chosen from the General Public. -3- Section 3. - Participation 3.1 Eligible Class of Employees The following class of employees is eligible to become Participants under this Plan: All permanent non-uniform employees of the City of Little Rock except (1) Judges of the Municipal Court and (2) any ersons principally employed by, or compensated from the separate funds of, the following boards, commissions and authorities: Water Works Commission Housing Authority Sewer Committee Auditorium Commission Airport Commission Library Trustee However, 755 of the employees of any one of the above named boards, commissions, and authorities, not having an employee pension plan in effect may within the exclusive discretion of the Board of Directors of the City of Little Rock become elig- ible to become participants under this plan by collectively petitioning the Board to amend this Plan so as to include them the definition of the term "Eligible Class of Employees" . 3.2 When Individual Employees Become Eli-gible Each employee in the Eligible Class of Employees shall become eligible for participation as f oll-)ws: (*) For those in the employ of the City on May 1, 1960: on the Eligibility Date, if he has then completed 2 years of Contin- uous Service and will have completed 15 years of Continuous Service prior to the Normal Retirement Date, which would be assigned to him if he were to become a Participant on the Effective Date. o (b) For those commencing employment subsequent to May 1, 1960: on the Anniversary of the Eligibility Date coincident with or next following his completion of 2 years of continuous service, if his continuous service began not later than his 50th birthday. 3.3 When an E1iaible Employee Becomes a Participant Each employee eligible for participation on the Effective Date may elect to become a participant by furnishing the Employer with his application and his authorization to make payroll deductions for his con- tributions toward the Plan. t4ach employee who is not eligible for participation on the ! Effective Date may, when he attains eligibility, elect to become a partic- ipant by furnishing the Employer with his application and his authorization to make payroll deductions for his contributions toward the Plan: provided, however, that each employee whose commencement of employment is subsequent to the Effective Date shall, as a condition of employment, become a parti- cipant by furnishing the Employer with his application and his authorization to make payroll deductions for his contributions toward the Plan. The employee' s application should include his designation of a beneficiary for any payments which become payable on his death. Section . - Contributions 4.1 Participant Contributions. Each participant shall make contri- butions throw payroll deductions made by the Fmployer each month until his Normal Retirement Date. The amount of such monthly contributions for Contributory Annuity Benefits shall be equal to 35 of his monthly Effective Earnings in effect on the May 1 preceding the beginning of each contract year. -4- Section - Continued 4. 2 Em lo er Contributions for Basic Annuity Benefits. Subject to its r g moo amend or term n3 ale ie Tan, as provided in Section 8, the Employer shall make contributions to provide Basic Annuity Benefits under the Plan. The amount of such contributions shall be equal to the amount of Participant Contributions. 4.3 m loyer Contributions for Past Service Annuity Benefits The Employer sha 1 ma' e co ributions fund to be held by an Insurance Company, which, over a period of years will meet the cost of purchasing Past Service Annuity Benefits for Participants herein specified on their Retirement Dates. The fund arising from such contributions shall be used to purchase the Past Service Annuity Benefits herein specified. Such con- tributions will be made by the Employer in such amounts and at such times as the Board shall from time to time determine; Provided, however, that such contributions shall not be less than 25 of the aggregate Effective Earnings of all participants. In no event shall the Employer, the members of the Board, or the Insurance Company be liable in any manner if the assets provided for the funding of Past Service Annuity Benefits shall be insuf- ficient to provide for the payment of such benefits . 4.4 Other Employer Contributions. In addition to contributions pursuant tom. an Zt-.3, THeWhall make contributions sufficient to provide for any contractual expense or any other necessary expense incurred in connection with the administration of the Plan. Section 5 - BENEFITS 5.1 Normal Retirement Annuity Benefits (a) The Normal Rtirement Annuity is a monthly income to a Part- icipant during 1 s Ti time, commencing w w"—th his Normal Retirement Date and ending with the last payment due before his death. A Participantts Normal Retirement Annuity consists of(a) his Basic Retirement Annuity and (b) his Contributory Retirement Annuity. (b) Amounts of Normal Retirement Annuity Benefits 1 The amounts of Normal Retirment Annuity Benefits for each Part- icipant shall be determined as follows: (1) Basic Annuity Benefits The monthly amount of Basic Annuity shall be the sum of the amounts of monthly income purchased each year by Employer Contributions for Basic Annuity Benefits as provided in Section4 (2) Contributory Annuity Benefits The monthly amount of Contributory Annuity shall be the sum 4 of the amounts of monthly income purchased each year by Partici- pant Contributions as provided in Section 4. (2) Contributory Annuity Benefits The monthly amount of Contributory Annuity shall be the sum of the amounts of monthly income purchased each year by Participant Contributions as provided in Section 4. -5- Section 5, continued (c) Payment of Normal Retirement Annuity' Benefits (1) From Normal Retirement Date Each Participant shall be paid the Normal Retirement Annuity described above. If, subsequent to his Normal Retirement Date, such a parti- cipant dies during the Period Certain the remaining payments of the Retirement Income for the balance of such period Certain shall be paid, as due, to his beneficiary while living, there- after the commuted value of the Retirement Income for the balance of such Period Certain shall be paid in one sum to the executors or administrators of the estate of said beneficiary. (2) Before Normal Retirement Date If a Participant dies during continuance of participation and before his Normal Retirement date, a death refund shall be paid to his beneficiary. The amount of the death refund shall be equal to the sum of his contributions with interest at the rate of 2 1/2 ' a year, compounded annually, from the end of the year in which each contribution is received to his date of death. 5.2 Past Service Annuity Benefits (a) The Past Service Annuity is a monthly income to a Participant during his life - me; commencing wi his Normal Retirement Date and ending with the last payment due before his death. (b) Amount of Past Service Annuity Benefits The amount of Past Service Annuity Benefits for each Participant shall be determined as follows: Each eligible employee who elects to participate in the Plan within 90 days of the Effective Date shall be entitled to a Past Service Annuity equal to the product of ( 1) 1/2 of 1% of his annual Effective Earnings as of May 1, 1960, and (2) the number of completed years of Continuous Service prior to July 1, 1960, but in no event in excess of 20 years. (c) Payment of Past Service Annuity Benefits Each Participant who is entitled to such benefits shall be paid the Past Service Annuity described above: provided, except as to benefits payable under the "Right to Early Retirement Income" as set forth in Section 6.2, such Past Service Benefits shall be irrevocably terminated upon the resignation or discharge of an employee on or after July 1, 1960 and cannot be reinstated if such employee is reemployed subsequent to such termination of his employment. 5.3 Options (a) Postponed Retirement (1) If, with the consent of the Committee, a Participant remains in the Continuous Service of the Employer beyond his Normal Retirement Date, his retirement shall be post- poned to the first day of the month following the termin- ation of his Continuous Service. -6- Section 5tcontinued (2) Each Participant whose retirement is postponed pursuant to the foregoing paragraph shall receive a Retirement Income commencing upon his actual retirement. Such income shall be of an amount determined by the insurance company to be actuarially equivalent to the retirement income he would have received if he had retired on his Normal Retirement Date. (3) No contributions shall be made nor benefits accrued after a Participant' s Normal Retirement Date. (B) Optional Method of payment of Annum Benefits Instead of the benefits being paid as provided in Sections 5.1 and 5.2 above, a Participant may elect to receive an alternative form of life income of equivalent actuarial value as may then be made available by the insurance company. Such alternative forms of income shall include, but need not be restricted to (a) a contingent annuity option, (b) a social security adjustment option and (c) a life income with no period certain, or with a period certain of five or ten years. Such an election shall be effective only if the insurance company receives the Participant' s written notice at its Home Office not later than (a) October 1, 1960, or (b) 3 years before his Normal Retirement Date and if the requirements for the election of any such option are met. The amount of the income of the alternative form shall be calculated by the insurance company at the end of the period allowed for such election. 5.!- Relationship to Federal Social Security Benefits The benefits provided under this Plan are independent of, and 1 in addition to, any benefits under the Federal Social Security Act. Section 6. - Temination of Participation 6.1 Former Participant A Participant' s participation shall terminate when his continuous service in the :E'ligible Class of Employees is terminated before his Normal Retirement Date. All coverages and benefits with respect to him shall end upon termination of his participation, except as specifically provided in this Section, and he shall then become a Former Participant. 6.2 Termination Values (1) Former Participant' s Paid-Up Retirement Annuity The paid-up Retirement Annuity Ber 'it described in (a) below shall be continued in force on the life of the Former Participant, without further contributions being required. The paid-up Retirement annuity benefits described in (b) and (c) below shall be provided on the life of the Former Participant if termination of his participation occurs after he has attained age 60 and has completed 20 years of continuous service. (a) The Contributory Retirement Annuity Benefits which have been purchased on his behalf. (b) The Basic Retirement Annuity Benefits which have purchased on his behalf. (c) The Past Service Retirement Annuity Benefits to which he is entitled pursuant to Section 5.2. If the Former Participant' s Paid-Up Retirement Annuity would provide an income of less than t5 a month, the insurance corr_pany may reserve the right to terminate all such paid-up annuity benefits on his life and immediately pay him an amount equal to the full reserve thereon. -7- Section 6, Continued (2) Ri ht to Early Retirement Income � The Former Participant may elect, by written notice to the insurance company during the 31 days following termination of his participation, that all Paid-up Retirement Annuity in force on his life in accordance with paragraph (1) above be immediately terminated and that a retirement income, reduced so as to be actuarially equivalent to the paid-up Retirement Annuity terminated shall begin on the first day of the month following the date of such termination of participation but not earlier than the first day of the month following receipt of notice of the election of this option. Unless another method of paymentof Retirement Income satisfactory to the insurance company has been elected, such Early Retirement Income shall end with the last payment due before the Former Participant' s death, and, if such participant dies during the Period Certain following the date as of which such Income began, the remaining payments of the Retirement Income for the balance of such Period Certain shall be paid, as due, to his beneficiary while living, thereafter the commuted value of the Retirement Income for the balance of such Period Certain shall be paid in one sum to the executors or administrators of the estate of said beneficiary. Such Retirement Annuity so elected shall be continued to the Parti- cipant' s beneficiary in monthly installments until the Period Certain is completed. However, if another method of payment of Retirement Income has been elected, the Annuity Benefits otherwise payable shall be adjusted in conformity with the method elected. Such election shall take effect if the insurance company receives the Former Participant' s written notice at its Home Office during such 31 days, but only if the amount of the reduced income will be at least (l0 a month. (3) Former Participant' s Optional Cash Payment If the Former Participant has not exercised the Right to Early Retirement Income, he may, by written request to the insurance company during the 31 days following termination of his participation, elect to surrender his Former Participant' s Paid-up Retirement Annuity and receive a Cash Payment therefor. The Cash Payment shall be an amount equal to his contrib- utions, accumulated with interest at the rate of 2 compounded annually, from the end of the year in which the respective contributions were received to the date of termination of participation. The Cash Payment shall be in lieu of all other benefits 4 available to him as a Former Participant. Payment may be deferred by the insurance company up to 6 months (or any shorter period required by law) after partici- pation terminates. 4 Section 7 - ghts of the Employer 7.1 Nothing contained in the Plan shall be deemed or construed to enlarge or otherwise effect the employment fights of any Employee. The establishment and continuation of the Plan and the payment of any benefits shall not be construed as giving any Employee any legal or equitable right as against the Employer or insurance company, except as may be expressly provided in this Plan, or as in any manner or degree conferring any rights upon any 'Employee for continuation of employment by the Employer or limiting in any way the right of the _Employer to treat the Employee without regard to the effect which such treatment will have upon him as a Participant under the Plan. -8- Section 8 - Amendment and Termination of the Plan 8.1 Amendments . The Employer reserves the right any time, and from time to time, by action of the Board, to amend in whole or in part any or all of the provisions of the Plan. 8.2 Termination. It is intended by the Employer that this Plan shall constitute a permanent plan for providing retirement income for Employees, but the Employer reserves the right to terminate the Plan by action of the Board at any time and thereafter no Employee shall become a Participant hereunder nor shall any Participant accrue additional benefits hereunder. 8.3 Paid-Up Normal Retirement Annui__ty_ Continued After Termination. If the Plan—Termiinates, a paid-up Normai etiremen Ann uitS' enefit- s aI1 be continued in force on the life of each individual who is a participant at the time of termination. The amogtnt of such paid-up Normal Retirement Annuity shall be equal to the sum of (a) the Contributory Retirement Annuity Benefits which have been purchased on his behalf, and (b) the Basic Retirement Annuity Benefits which have been purchased on his behalf. However, a participant at the time of termination may elect to take the Former Participant' s Optional Cash Payment as provided in Section 6, in which event the amount of his Paid-up Normal Retirement Annuity shall be equal to the Basic Retirement Annuity Benefits which have been purchased in his behalf. 8.h Distribution of Funds Upon Termination. Upon termination of the Plan, the funds f}ie deposit accoixn _off` tie insurance company for Past Service Annuity Benefits shall be allocated in accordance with the following order, based on the status of each individual as of the date of termination of the Plan: (a) There shall first be credited to each Participant who shall have attained his Normal Retirement Date the amount which would purchase for him any Past Service Annuity Benefits to which he is entitled under the terms of the Plan on the day of such termination; provided, that no such amount shall be credited to any such person if an annuity providing for such person such benefits has theretofore been purchased. (b) There shall next be credited to each Participant who on the date of such termination has attained age -60- and has com- pld;ed -20- years of continuous service, an amount which would purchase for him any Past Service Annuity Benefits to which he is entitled under the terms of the Plan on the day of its termination. (c) There shall next be credited to each Former Participant who shall have qualified under the provisions of Section 6. 2 for paid-up Past Service Annuity Benefits an amount which would purchase for him such benefits. (d) There shall next be credited to each Participant not included above an amount which would purchase for him a deferred Past Service Annuity payable for his life computed in accordance with the provisions of Section 5. 2. (e) There shall next be credited to each Former Participant not included above, an amount which would purchase for him a deferred Past Service Annuity payable for his life computed in accordance with the provisions of Section 5. 2. (f) To the extent that there are not enough funds on the date of termination of the Plan to provide in full the benefits credited to all members of a class, the equities of each person in such class will be abated proportionately. -9- Section 8, continued subject to the requirements of the insurance company, the Committee may require all persons to whom amounts have been credited as provided above to withdraw such amounts in the form of cash or in the form of immediate or deferred annuities, as it may determine. Any balance remaining in the deposit account of the insurance company after the full allocation provided for in paragraphs (a) , (b) , (c) , (d) , and (e) above, and after any other withdrawals pursuant to con- tractual requirements, shall be paid in cash to each Participant who is living at the date of termination, in an amount determined upon the basis of the proportion that the reserve for his Annuity Benefits bears to the total such reserves for all Participants living at the date of termination who have not reached their respective Normal Retirement Dates. Section 9 - Administration of the Plan 9.1 Retirement Plan Committee. The Plan shall be administered by the Retirement' an Committee. 9. 2 A ents of the Committee. The members of the Committee shall elect from eir num er a c airman and shall appoint a secretary who need not be a member of the Committee. They may appoint any person or persons as a pension administrator or to serve as an administrative committee having such duties in connection with administration of the Plan as the Committee may from time to time provide. The Committee may appoint from their number such subcommittees with such powers as the Committee shall determine, and may authorize one or more of their number, the pension administrator, the administrative committee or any agent to exectttef or deliver any instrument or make any payment on their .0ehalf except that a request for funds from, or a direction for, the payment or application of funds by corporate trustee or an insurance carrier shall be signed by at least one member of the Committee. The Committee may retain such legal counsel and accountants, who may or may not be in the employ of the Employer, actuaries, and such clerical services as it may require in carrying out the provisions of the Plan. 93. Meetings of thq Committee . The committee shall hold meetings upon such rota ce, aT uch im e or mimes, and at such place or places as it may determine. A majority of the members of the Committee at the time in office shall constitute a quorum for the transaction of business at all meetings. All resolutions or other actions taken by the Committee shall be by a vote of a majority of those present at the meetings, or in writing by all members at the time in office, if they act without a meeting. 9.4 Rules of the Committee. The Committee may from time to time establish rues or e a . ina.s ration of the Plan. Except as otherwise herein expressly provided, the Committee shall have the exclusive right to interpret the Plan and to decide any matters arising hereunder in the administration and operation of the Plan. It shall endeavor to act by general rules so as not to discriminate in favor of any person. 9.5 Accounts of the Committee. The Committee shall maintain accounts showing the-717776771777—the Plan and shall keep in convenient form such data as may be necessary for actuarial valuations of the assets and liabilities of the Plan. The Committee shall prepare annually a report showing in reasonable detail the assets and liabilities of the Plan and give a brief account of the operation of the Plan for the past year. Such report shall be submitted to the Board of Directors and shall be filed in the office of the Secretary of the Committee. 9.6 Actuarial Tables. 1ith reference to Past Service Annuity Benefits the commite577-067—firles and rates of contributions recommended by the Insurer. -10- Section 9, continued 9.7= Reliance on Reports and Certificates. The members of the Committee and tie Board shah_ be entitled to rely upon all tables, valuations, certificates and reports furnished by any duly appointed actuary, upon all certificates and reports made by the insurance company or by any duly appointed accountant, and upon all opinions given by duly appointed legal counsel. 9.8 Compensation of the Committee. No member of the Committee shall receive any compensation for his service as such. No bond or other security shall be required of any member of the Committee in order to enable him to act in such capacity. Section 10 - Temporary Limitation of Benefits for Hi:hest Paid ynp ee_ as required •y retie. Dep . Mini.77 Notwithstanding the provisions of Section 8, if the Plan is terminated, or as long as the full current cost thereof has not been met by the Employer at any time during the first ten years from its effective date, the retirement income which any of its highest paid Participants may receive under this Plan shall not exceed his unrestricted benefits at that time. These conditions shall not prohibit the payment of the full retirement income called for by this Plan to a Contingent Annuitant or beneficiary of a former Participant who died while this Plan is in full effect and its current costs have been met. For purposes of this paragraph: (a) The term "highest paid Participants" shall mean such of the twenty-five highest paid Participants at the effect- ive date of the Plan whose anticipated annual retirement income determined under this Plan exceeds $1,300; (b) The terms "unrestricted benefits" shall mean the benefits = under this Plan payable to the Participant, his benefic- iary, or his Contingent Annuitant, which have been provided by the Employer contributions not exceeding the larger of the following amounts: (a) -` 20,000. , or (b) an amount equal to 205 of the first $50,000 of the. Participant' s annual earning rate at the effective date of the Plan, multiplied by the number of years since such effective date. SECTION 11 - General Provisions 11.1 Alienation of Benefits. No benefit payable under the Plan shall be sulETe-grrii any manner o anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any action by way of anti- cipating, alienating, selling, transferring, assigning, pledging, encumber- ing, or charging the same shall be void and of no effect, nor shall_ any such benefit be in any manner liable for or subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such benefit, except as may be specifically provided in the Plan. 11. 2 Payments to Minors and Incompetents .If any person entitled to receive any ene 73reunoeo is a m nor,or is deemed by the insurance company or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, they shall be paid to the duly appointed guardian or committee of such minor or incompetent. -11- Section 11, continued 11.3 Construction. The Plan shall be construed, enforced and administered according to the laws of the State of Arkansas. In case any provision of the Plan shall be held i13.egal or invalid for any reason, it shall not affect the remaining provisions of the Plan, but the Plan shall be construed and enforced as if such illegal and invalid provision had not been included therein. The above Plan was adopted by resolution of the Board of Directors of the City of Little Rock at its regular meeting held on For £he Board Attest: / -1 111 cs: • SECTION 2. The fact that the non-uniform employees of the City of Little Rock have not had a pension and retirement plan heretofore has created a condition detrimental to the wel- fare of the community in that the City has not been able to offer its employees security in the form of retirement and pension plans which private enterprise offers, and that such condition has created an emergency; that this resolution will alleviate the problem heretofore existing; now therefore, this resolution being necessary for the preservation of the public peace, health and safety and the general welfare shall be in force and effect from and after its adoption. ADOPTED: June 20, 1960 ATTEST: 1) APPROVED: •L • ' City Clerk Ma .