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(a) Membership in the fund shall be based on the requirements set forth in Tex. Revised Civil Statutes Article 6243i, § 2.01, provided however, that membership in the fund shall be a condition of employment for all employees who are eligible to be members unless otherwise provided in subsection (a-1).
(a-1) An individual who is eligible to be a member may elect not to become a member of the fund only if all of the following conditions are met.
(1) The individual has, for at least one full pay period prior to making the election, been serving in a position that is part of a class of position that is not eligible to be a member of the fund but that is participating in the city’s social security alternative plan, also known as the FICA alternative plan.
(2) The class of position described in subsection (1) is being eliminated and replaced with a class of position that will be eligible to be a member of the fund.
(3) The contribution rate under the FICA alternative plan for the class of position being eliminated and the contribution rate under the fund for the replacement class of position are the same at the time of the election and will continue to be the same thereafter.
(4) An individual who elects not to become a participating member of the fund shall be required to continue participating in and making contributions to the FICA alternative plan.
(5) An election is offered and may be made no more than once.
(6) The election is required to be and actually is made prior to first date for which a contribution under the fund is schedules to be made for the replacement class of position.
(7) The election is irrevocable.
(b) An individual who fails to make an election or whose attempt to elect does not fully comply with all conditions listed in subsection (a-1) shall become a member of the fund effective as of the first date for which a contribution under the fund is made for the replacement class of position.
(c) If a group I member terminates employment with the city after vesting, takes a refund of contributions, and then returns to service with the city after July 1, 2011, then the group I member will be treated as if he or she was hired after July 1, 2011, even if the member purchases permissive service credits pursuant to § 2.5-4.
(d) If a group I member terminates employment with the city after vesting, does not take a refund of contributions, and then returns to service with the city after July 1, 2011, then the group I member will be treated as if he or she was hired prior to July 1, 2011.
(e) If a group I member terminates employment with the city prior to vesting, and then returns to service with the city after July 1, 2011, then the group I member will be treated as if he or she was hired after July 1, 2011, even if he or she purchases permissive service credits pursuant to § 2.5-4, or failed to take a refund of contributions.
(f) For pension purposes, if a group III member terminates employment with the city after vesting, takes a refund of contributions, and then returns to service with the city after January 1, 2013, then the group III member will be treated as if the group III member was hired after January 1, 2013, even if the group III member purchases permissive service credits pursuant to § 2.5-4.
(g) For pension purposes, if a group III member terminates employment with the city after vesting, does not take a refund of contributions, and then returns to service with the city after January 1, 2013, then the group III member will be treated as if the group III member was hired prior to January 1, 2013.
(h) For pension purposes, if a group III member terminates employment with the city prior to vesting, and then returns to service with the city after January 1, 2013, the group III member will be treated as if the group III member was hired after January 1, 2013, even if the group III member purchases permissive service credits pursuant to § 2.5-4, or failed to take a refund of contributions.
(i) For pension purposes, if a group V firefighter terminates employment with the city after vesting, takes a refund of contributions, and then returns to service with the city after January 10, 2015, then the group V firefighter will be treated as if the group V firefighter was hired after January 10, 2015, even if the group V firefighter purchases permissive service credits pursuant to § 2.5-4.
(j) For pension purposes, if a group V firefighter terminates employment with the city after vesting, does not take a refund of contributions, and then returns to service with the city after January 10, 2015, then the group V firefighter will be treated as if the group V firefighter was hired prior to January 10, 2015.
(k) For pension purposes, if a group V firefighter terminates employment with the city prior to vesting, and then returns to service with the city after January 10, 2015, the group V firefighter will be treated as if the group V firefighter was hired after January 10, 2015, even if the group V firefighter purchases permissive service credits pursuant to § 2.5-4, or failed to take a refund of contributions.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21510-10-2014, § 1, passed 10-21-2014; Ord. 25225-12-2021, § 1, passed 12-14-2021, eff. 1-1-2022)
(a) Member contributions.
(1) Effective with the August 9, 2019 paycheck, and continuing until the date of actual retirement or earlier termination of employment, group I general members shall contribute to the fund 9.35% of their earnings. Additionally, effective with the August 9, 2019 paycheck, each individual group I general member shall contribute to the fund an additional 0.7% of earnings until the earliest of the following: 1) the member retires; 2) the member terminates employment; or 3) the member has made additional 0.7% contributions for a period of time that is equal to the amount of credited service the member earned or purchased prior to October 1, 2013.
(2) Effective with the August 9, 2019 paycheck and continuing until the date of actual retirement or earlier termination of employment, group II general members shall contribute to the fund 9.35% of their earnings.
(3) Effective with the August 9, 2019 paycheck, group III and group IV police members shall contribute 10.53% of their earnings to the fund; effective with the first paycheck on or after January 1, 2020, group III and group IV police members shall contribute 12.53% of their earnings to the fund; effective with the first paycheck on or after January 1, 2021 and continuing until date of actual retirement or earlier termination of employment, group III and group IV police members shall contribute 13.13% of their earnings to the fund.
(4) Effective with the August 9, 2019 paycheck, group V firefighters and group VI firefighters shall contribute 10.05% of their earnings to the fund; effective with the first paycheck on or after January 1, 2020 and continuing until date of actual retirement or earlier termination of employment, group V and group VI firefighters shall contribute 12.05% of their earnings to the fund.
(5) If, following a member's involuntary termination of employment, the city is required, as the direct result of an appeal or suit arising from the involuntary termination, to reinstate the member's employment, the member shall make the contribution described in this section on any payment made by the city to the member as back pay, less interim earnings, if any, with the city empowered to make such payment on the employee's behalf in accordance with § 2.5-3(b)(2).
(6) Contributions by members reinstated following a military leave of absence are governed by the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301-33, as provided for in § 2.5-4(a)(4) of this division. These contributions shall be made even if doing so would reduce a member's net cash compensation below the minimum wage rate as prescribed by law.
(7) By accepting employment with the city, each member shall be deemed to consent and agree to deductions made from the member's compensation, and payments to all such members of compensation, less the deduction, shall constitute a full and complete discharge of all claims and demands whatsoever for services rendered by such member during the period covered by such payment, except as to the benefits provided by the fund.
(8) The contributions of all members may be raised at any time from the amount stated in this section to a higher amount in accordance with the procedures provided by Tex. Revised Civil Statutes Article 6243i.
(9) Both group V and group VI firefighters will make contributions to the fund on built-in overtime.
(10) For all pay periods beginning on or after July 20, 2019, all members in all groups will contribute to the fund on all overtime.
(b) City contributions.
(1) For group III and group IV police members only, effective with the January 11, 2019 paycheck and with each paycheck thereafter, the city shall contribute to the fund 24.96% of their earnings. For all other members, effective with the January 11, 2019 paycheck and with each paycheck thereafter, the city shall contribute to the fund 24.24% of their earnings. Notwithstanding the foregoing, city contributions to the fund shall be reduced for each fiscal year by the amount of benefits paid by the city, if any, under the supplemental retirement ordinance. Subsection (a) shall not limit the right of the governing body, through its budget appropriation, to contribute an additional amount over and above the member's contribution in accordance with Tex. Revised Civil Statutes Article 6243i, as amended.
(2) If, following a member's involuntary termination of employment, the city is required, as the direct result of an appeal or suit arising from the involuntary termination, to reinstate the member's employment, the city shall make the contribution described in this section on any payment by the city to the member as back pay, without reduction for the member's interim earnings, if any. In addition, the city shall, on behalf of the member, make the member's contribution described in this § 2.5-3 on any interim earnings deducted from the back-pay award. Contributions made by the city on behalf of members whose employment is reinstated following a military leave of absence are governed by the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301-33, as provided for in subsection (a)(6) above.
(3) Effective for pay periods ending after April 1, 1999, the required member contributions described in subsection (a) above and subsection (c) below shall be picked up by the city and shall be treated as city contributions for federal income tax purposes. Such contributions, although designated as member contributions, shall be paid by the city on behalf of the members and in lieu of contributions by the members. The members shall not have the option of receiving such contributions directly instead of having such amounts paid by the city to the fund.
(4) Retirement contributions made on behalf of the members, as well as the city's contributions to the fund, shall be paid by the city based on weekly workers' compensation benefits (currently referred to as a temporary income benefits) paid to those members, beginning for such amounts received by members on or after January 1, 2006.
(5) Although overtime will not be included in the definition of earnings for group I general members and group III police members effective October 1, 2013, the city will continue to contribute its contribution on overtime for all group I general members and group III police members.
(6) Although overtime that is not built-in overtime will not be included in the definition of earnings for group V firefighters effective January 10, 2015, the city will continue to contribute its contribution on all overtime for all group V firefighters, and on built-in overtime for all group VI firefighters.
(c) Automatic contribution increases/ decreases.
(1) In addition to any and all member contributions under § 2.5-4(a) and any and all city contributions under § 2.5-4(b), if the combined city and member contributions based on then-existing contribution rates are less than the actuarially determined contribution amount (ADC) for two consecutive years based on a closed 30-year funding of the unfunded liabilities and a discount rate that is consistent with the average of rates reported by two independent sources that are agreed to by the city and the fund, both members and the city shall automatically be required to make further contributions, defined herein as "additional increases," as more specifically governed by this subsection (c). Additional increases due from members shall be referred to as "additional member contribution increases," and amounts due from the city shall be referred to as "additional city contribution increases." Changes to additional increases will only be applied beginning with the first paycheck of a given calendar year and will not be applied to any paychecks received prior to January 1, 2022.
(2) The amount of an additional increase applied in any given year will equal the difference between the ADC from the fund's most recent actuarial valuation and the then-current combined city and member contributions. Any additional increase shall be shared by both the members and the city, with the additional city contribution increase equaling one and one-half times that of the additional member contribution increase. In addition, the following caps shall apply:
a. Annual caps. The additional member contribution increase applied in any given calendar year may not exceed 0.8% of earnings over the member contribution rates that were applied in the previous calendar year. Accordingly, the additional city contribution increase applied in any given calendar year may not exceed 1.2% of earnings over the member contribution rates that were applied in the previous calendar year.
b. Aggregate caps. The additional member contribution increase applied in any given calendar year may never exceed 1.6% of earnings over the member contribution rates specified in § 2-5(a) for the same calendar year. Accordingly, the additional city contribution increase applied in any given calendar year may never exceed 2.4% of earnings over the city contribution rates specified in § 2-5(b) for the same calendar year.
(3) If two consecutive valuations by the fund's actuary indicate that some or all of the additional increase is no longer required to meet the ADC, then the additional increase may be unilaterally reduced by city council by that actuarially determined unrequired percentage, with the amount of such reduction to be allocated 40% to member contributions and 60% to city contributions, so that, for example, if it is determined that the total additional increase needed to meet the ADC can be decreased by 1%, then the additional member contribution increase would be decreased by 0.4% and the additional city contribution increase would be decreased by 0.6%.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21510-10-2014, § 1, passed 10-21-2014; Ord. 23516-12-2018, § 2, passed 12-11-2018)
(a) Service breaks. Pension credits shall be granted for all credited service for which a member of the fund receives employment compensation from the city, subject to the following regulations pertaining to service breaks.
(1) Authorized service breaks of 90 or less consecutive calendar days without pay shall not be deducted from credited service.
(2) Except as provided below, periods of absence in excess of 90 consecutive calendar days without pay shall be deducted from credited service, and no contributions shall be made by members or by the city during such periods.
(3) a. An absence of any period shall be permitted without loss of prior credited service, unless the member receives a distribution of his or her total contributions, plus regular interest, and any period of absence shall cancel all prior credited service if the member receives a distribution of the member's total contributions, plus regular interest; however, if a member is absent, the member may regain prior credited service by repaying the total amount of the refund, less the amount received from the member's cash balance account, from the date of withdrawal to the date of repayment, pursuant to policies adopted by the Board under one of the two following options:
1. Repay in a single lump sum payment within 90 days of reemployment, including buy back interest on the date of repayment that also includes buy back interest for the period of absence on the date of the repayment; or
2. Repay through a payroll deduction pay-back plan which commences within 90 days of reemployment, and provides buy back interest for the period of absence and that buy back interest will be charged throughout the pay-back period and that the repayment period will not exceed three years.
b. No other repayment option is authorized for the repayment of prior credited service.
(4) Effective on or after December 12, 1994, any member who is reemployed by the city upon completion of service in the uniformed services (within the time frame provided under the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended) shall be granted credited service for such uniformed service, provided the member makes the contributions (with no interest) to the fund that the member would have been required to contribute if the member had remained continuously employed by the city throughout the period of uniformed service. Such payment must be made during the period which commences with the date of reemployment by the city and which duration is three times the period of the member's service in the uniformed services, not to exceed five years. If a reemployed member makes such contributions, the city shall also make its corresponding contributions to the fund. This provision shall be construed consistently with the requirements of the Uniformed Services Employment and Reemployment Act of 1994, as amended.
(5) Any member whose employment was terminated involuntarily and was thereafter reinstated as the direct result of an appeal or suit arising from the involuntary termination shall be granted all credited service for the period of absence, provided, however that contributions for credited service for such period of absence must be made by the city and by or on behalf of the member in accordance with § 2.5-3.
(b) Accumulated sick leave and major medical leave. Subject to all further terms and conditions of this § 2.5-4(b), only that portion of a person's accumulated sick leave and major medical leave that was earned prior to July 20, 2019 and that remains unused (or otherwise uncompensated to the member) as of the date the person retires shall be taken into account in calculating that person's credited service, provided, however, that such balance shall never be taken into account in calculating the pension of a member receiving a line of duty disability pension.
(1) For accumulated sick leave and/or major medical leave earned prior to July 20, 2019:
a. 1. Subject to the provisions of this section, at retirement and in calculating a vested terminated pension, a member shall have added to his or her credited service hours of accumulated sick leave and/or major medical leave to the extent the official personnel records of the city reflect that such leave was (i) earned prior to July 20, 2019 and (ii) not used by or otherwise compensated to the member, with leave that meets both of these criteria being considered and referred to herein as "qualified leave." For credited service purposes, qualified leave shall be converted into months using the following formula:
2. The total number of hours of qualified leave divided by the annual scheduled hours for the position from which the member is retiring multiplied by 12. The resulting product represents the number of months in whole numbers and/or a decimal portion of a month. Any whole number shall constitute that number of months to be added to credited service. If the resulting product contains a decimal value that is less than five tenths (0.50), then no addition to credited service shall be made with respect to such decimal value; however, if the resulting product contains a decimal value that is five tenths (0.50) or greater, then an additional month of credited service shall be provided for such decimal value.
b. Qualified leave shall not be applied toward determining of retirement eligibility, but only toward calculation of retirement benefits.
c. Group I general members and group III police members who have qualified leave that was earned prior to October 1, 2013, will have the leave added to credited service earned or purchased prior to October 1, 2013. Qualified leave earned on or after October 1, 2013 and before July 20, 2019 will be added to credited service earned or purchased during that period.
d. Group I general members and group III police members who use sick leave and/or major medical leave on or after July 20, 2019 will have the leave deducted as follows:
1. First from accrued sick leave and/or major medical leave hours earned on or after July 20, 2019 to the extent such leave is available for use;
2. Second from accumulated sick leave and/or major medical leave hours earned prior to October 1, 2013 until such time as those hours are completely exhausted; and
3. Finally from accumulated sick leave and/or major medical leave hours earned from October 1, 2013 through July 19, 2019 until such hours are completely exhausted.
e. Group V firefighters who have qualified leave that was earned prior to January 10, 2015, will have the leave added to credited service earned or purchased prior to January 10, 2015. Qualified leave earned on or after January 10, 2015 and before July 20, 2019 will be added to credited service earned or purchased during that period.
f. Group V firefighters who use sick leave and/or major medical leave on or after July 20, 2019 will have the leave deducted as follows:
1. First from accrued sick leave and/or major medical leave hours earned on or after July 20, 2019 to the extent such leave is available for use;
2. Second from accumulated sick leave and/or major medical leave hours earned prior to January 10, 2015 until such time as those hours are completely exhausted; and
3. Finally from accumulated sick leave and/or major medical leave hours earned from January 10, 2015 through July 19, 2019 until such hours are completely exhausted.
g. Group II general members, group IV police members, and group VI firefighters who use sick leave and/or major medical leave on or after July 20, 2019 will have the leave deducted as follows:
1. First from accrued sick leave and/or major medical leave hours earned on or after July 20, 2019 to the extent such leave is available for use; and
2. Second from accumulated sick leave and/or major medical leave hours earned through July 19, 2019 until such time as those hours are completely exhausted.
(2) For accumulated sick leave and/or major medical leave earned on or after July 20, 2019:
a. Accumulated sick leave and/or major medical leave earned on or after July 20, 2019, will not be added to credited service at retirement.
(c) Permissive service credits.
(1) General. Effective on or after October 1, 2002, a member who has earnings from the city for the then current year may elect to purchase permissive service credits and have his or her period of credited service increased for purposes of calculating the member’s retirement benefit, pursuant to the provisions of this division. The actuary shall prepare factors which shall be used to determine the voluntary additional contributions that a member must make to purchase permissive service credits, provided, however, that in no event shall a member be required to contribute an amount that exceeds the amount necessary to fund the benefit attributable to the additional credited service that is purchased.
(2) Limitations. A member may purchase up to five years of permissive service credits that are attributable to non-qualified service, and a member cannot purchase any permissive service credits for non-qualified service prior to completion of five years of participation as a member.
(3) Non-qualified service. For purposes of this subsection (c), the term NON-QUALIFIED SERVICE means service other than:
a. Service (including parental, medical, sabbatical and similar leave) as an employee of the government of the United States, any state or political subdivision thereof, or any agency instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of the repayment described in § 415(k)(3) of the Code);
b. Service (including parental, medical, sabbatical and similar leave) as an employee (other than as an employee described in subsection (c)(3)a. above) of an education organization described in § 170(b)(l)(A)(ii) of the Code which is a public, private or sectarian school which provides elementary or secondary education (through grade 12), as determined under state law;
c. Service as an employee of an association of employees who are described in subsection (c)(3)a. above; or
d. Military service (other than qualified military service under § 414(u) of the Code) recognized by such governmental plan. In the case of service described in subsections (c)(3)a.1., (c)(3)b. or (c)(3)c. above, such service will be non-qualified service if recognition of such service would cause a member to receive retirement benefits for the same service under more than one plan.
(4) Purchase of permissive service credits. A member may purchase permissive service credits pursuant to the rules, procedures and forms as may be adopted and amended by the board in its complete discretion, which shall be uniform and nondiscriminatory and which shall be interpreted in a manner that is consistent with the provision of the retirement ordinance and applicable law. Permissive service credits may be purchased by a member’s direct payment to the trustee of the amount determined by the factors provided by the actuary, or through a trustee to trustee transfer of such amount from the member’s account under an eligible deferred compensation plan (as defined in Code § 457) or a qualified plan within the meaning of Code § 401(a), including a 401(k) plan, or the member’s annuity contract meeting the requirements of Code § 403(b).
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21459-09-2014, § 1, passed 9-16-2014; Ord. 21510-10-2014, § 1, passed 10-21-2014; Ord. 23034-12-2017, § 1, passed 12-12-2017; Ord. 23516-12-2018, § 1, passed 12-11-2018)
(a) The board of trustees. The fund shall be administered by the board. The board shall consist of 13 trustees designated as Place 1, Place 2, Place 3, Place 4, Place 5, Place 6, Place 7, Place 8, Place 9, Place 10, Place 11, Place 12 and Place 13, respectively. A trustee’s term shall be for two years, subject to this section. Trustees shall be elected as follows.
(1) Trustees elected by employees.
a. Election. Four trustees who are vested, participating members of the fund, as defined by Tex. Revised Civil Statutes Article 6243i, shall be elected by the employees of the city, who are also members of the fund; said trustees shall serve in Places 1, 2, 3 and 4 respectively.
b. Employee groups. Each of the trustees shall be elected by one of the employee groups as follows:
1. Place 1. The trustee for Place 1 shall be elected from group A, which shall consist of those members of the fund who are employed as group III and group IV members as defined by this division. Only group III and group IV members who qualify for employee group A shall be eligible to vote for a nominee for Place 1. Only group III and group IV members who qualify for employee group A shall be eligible to serve in Place 1 on the board.
2. Place 2. The trustee for Place 2 shall be elected from group B, which shall consist of those members of the fund who are employed as firefighters. Only firefighters who qualify for employee group B shall be eligible to vote for a nominee for Place 2. Only firefighters who qualify for employee group B shall be eligible to serve in Place 2 on the board.
3. Place 3. The trustee for Place 3 shall be elected from group C, which shall consist of those group I and group II members who are assigned to work in the following departments: water, planning and development, budget, financial management services, city manager’s office, city secretary, human resources, internal audit, city attorney’s office and municipal court, including the marshal’s office. Group C shall also include group I and group II members assigned to work in the police department who are not eligible to vote for a nominee for Place 1. Only group I and group II members who qualify for employee group C shall be eligible to vote for a nominee for Place 3. Group I and group II members who qualify for employee group C shall be eligible to serve in Place 3 on the board.
4. Place 4. The trustee for Place 4 shall be elected from group D, which shall consist of those group I and group II members who are assigned to work in the following departments: IT solutions, economic development, neighborhood services, library, parks and community service, public events, aviation, code compliance, property management and transportation and public works. Group D shall also include group I and group II member assigned to work in the fire department who are not eligible to vote for a nominee for Place 2. Only group I and group II members who qualify for employee group D shall be eligible to vote for a nominee for Place 4. Only group I and group II members who qualify for employee group D shall be eligible to serve in Place 4 on the board.
c. Term. In accordance with the nomination and election procedures prescribed in this section, trustees shall be elected to Places 1, 2, 3 and 4, and shall serve for a two-year term, subject to the following provisions. Trustees for Places 1 and 3 shall be elected every odd numbered year beginning in 2007, and shall serve from September 1 of such odd numbered year through August 31 of the next odd numbered year. Trustees for Places 2 and 4 shall be elected in 2007 to serve a term from September 1, 2007 through August 31, 2008. Thereafter, the trustees for Place 2 and 4 shall be elected every even numbered year and shall serve from September 1 of such even numbered year through August 31 of the next even numbered year. Should the employment status of any member elected trustee change so that said trustee is no longer a member of the employee group from which the trustee was elected, then said trustee shall automatically forfeit the office of trustee. Should a vacancy occur, for whatever reason, in Place 1, 2, 3 or 4, during the term thereof, then a majority of all trustees remaining on the board shall appoint to the board a qualified member from the employee group whose place has been vacated, which qualified member shall serve the remainder of the unexpired term; provided, however, that if, at the time the vacancy arises, more than one year remains in the unexpired term, then in lieu of the board appointing a replacement trustee, there shall be an election pursuant to the nomination and election provisions set forth below, with the board making reasonable modifications in the dates and time frames for the nomination and election in light of the time of the vacancy.
d. Method of nominating members for election. Nominations of members for election to the board shall be by petition only. Before May 31 of each election year, the executive director shall make available to members of each employee group eligible to vote in the scheduled election petition forms with written instructions. Petitions containing the names of nominees shall be returned to the executive director prior to July 1 of said election year. Nominees may use copies of the petition form or may create their own petition forms, provided each page of each returned petition shall identify the name of the nominee, the department in which the nominee is employed, the employee group of which the nominee is a member, and the place on the board for which the member is being nominated. No person’s name shall be placed upon the official ballot as a nominee unless that person is nominated by petition. Said nominating petition must contain the signature and employee number of at least 75 members of the employee group who are qualified to vote for said place on the date said petition is submitted to the executive director. Only those employees who are members of the fund shall be entitled to be listed upon the official ballot as a nominee. No person’s name shall be placed upon the official ballot as a nominee for Place 1 unless that person is a member of employee group A. No person’s name shall be placed upon the official ballot as a nominee for Place 2 unless that person is a member of employee group B. No person’s name shall be placed upon the official ballot as a nominee for Place 3 unless that person is a member of employee group C. No person’s name shall be placed upon the official ballot as a nominee for Place 4 unless that person is a member of employee group D.
e. Method of electing member trustees.
1. The executive director shall provide for an election procedure as authorized by the board, including, but not limited to, voting by mail, telephone and electronic means, and which may be conducted by a third-party voting service. The executive director shall prepare an official ballot for each place, listing in alphabetical order according to surname the nominees for election to that place. If, however, there is only one nominee for any place, there shall be no election for that place, and such nominee shall automatically be elected to the board. Only the names of those members who are nominated by petition as prescribed herein shall be placed upon the official ballot. No member shall be elected as a trustee whose name does not appear upon the official ballot as a nominee. Ballots shall be made available to the members no later than July 20 of the election year. Each member qualified to vote in said election shall vote for one nominee only. Any ballot containing votes for two or more persons, or for persons who are not nominees as prescribed herein, shall be declared invalid and shall not be counted. All ballots must be cast no later than August 15. Votes cast by written ballot must be returned no later than August 15 of the election year. If the ballot is returned by mail, the envelope must be postmarked by August 15 of the election year. The executive director or a designated third party shall tabulate all votes for all nominees. The nominee for each place who receives a majority of the votes cast for that place shall be declared elected to the board. Following the tabulation of votes, the executive director shall submit the results to the board at a meeting to be held before September 1 of said election year, at which time the board shall canvass the results of said election and certify which nominee is elected for each place on the board. If, at the time of canvassing said results, the nominee receiving the majority of votes for said place is no longer eligible to serve in the place to which that nominee was elected, then the nominee finishing second in the election shall be certified by the board as elected to the board.
2. If there is more than one nominee and no nominee receives a majority of the votes cast for any one place, or if there is a tie for any one place, then a run-off election shall be held, with ballots made available to the members qualified to vote for that place no later than September 1 of the election year, and in the same manner as prescribed for the first election. Only the names of candidates who tied for the highest number of votes cast for that place in the first election, or the two candidates who received the highest number of votes with neither having a majority of votes cast for that place, shall be printed on the ballot for the run-off election. All ballots for the second election must be cast by September 20 of the election year. Votes cast by written ballot must be returned by September 20. If a ballot is returned by mail, the envelope must be postmarked by September 20. The executive director or a designated third party shall tabulate the votes for the candidates in the run-off election. The candidate receiving the highest number of votes cast for that place in the run-off election shall be declared elected to the board.
3. In the event of a tie vote at the second election, the candidates who tie shall cast lots in the presence of the board to determine which one shall be declared elected. Following the tabulation of votes in the run-off election, and the casting of lots in case of ties, the executive director shall submit the results of same to the board at a meeting to be held before November 1 of said election year, at which time the board shall canvass the results of the run-off election and certify which nominee is elected to the board. If, at the time of canvassing the results of the run-off election, the nominee elected to serve on said board is no longer eligible to serve in the place to which he or she was elected, then the nominee finishing second in the election shall be certified by the board as elected to the board.
(2) Trustees elected by retired members.
a. Places.
1. Place 5. The trustee for Place 5 shall be elected by retiree group B, which shall consist of those retired members of the fund from employee group B. Only members of the fund who qualify for retiree group B shall be eligible to vote for a nominee for Place 5. Only members of the fund who qualify for retiree group B shall be eligible to serve in Place 5 on the board.
2. Place 6. The trustee for Place 6 shall be elected by retiree group A, which shall consist of those retired members of the fund from employee group A. Only members of the fund who qualify for retiree group A shall be eligible to vote for a nominee for Place 6. Only members of the fund who qualify for retiree group A shall be eligible to serve in Place 6 on the board.
3. Place 7. The trustee for Place 7 shall be elected by retiree group C, which shall consist of those retired members of the fund from employee groups C and D. Only members of the fund who qualify for retiree group C shall be eligible to vote for a nominee for Place 7. Only members of the fund who qualify for retiree group C shall be eligible to serve in Place 7 on the board.
b. Term. In accordance with the nomination and election procedures prescribed in this section, a trustee shall be elected for Places 5, 6 and 7, and shall serve for a two-year term. The trustee for Place 6 shall be elected to serve a term from September 1, 2007 through August 31, 2008. Thereafter, the trustee for Place 6 shall be elected every even numbered year and shall serve from September 1 of such even numbered year through August 31 of the next even numbered year. Trustees for Places 5 and 7 shall be elected every odd numbered year beginning in 2007, and shall serve from September 1 of such odd numbered year through August 31 of the next odd numbered year. Should a trustee for Place 5, 6 or 7 return to city employment and again become an employee member of the fund, the trustee shall automatically forfeit the office of trustee for Place 5, 6 or 7. Should a vacancy occur in Place 5, 6 or 7, during the term thereof, then a majority of all trustees remaining on the board shall appoint to the board a retired member of the applicable retiree group, to serve the remainder of the unexpired term.
c. Nomination of retired members for election. Nomination of retired members for election to the board shall be by letter of nomination only. Before May 31 of each election year, the executive director shall make available to retired members official letter of nomination forms with written instructions. Copies of the letter of nomination may be used. Completed letters of nomination shall be returned to the executive director prior to July 1 of each election year. Each returned letter of nomination shall identify the retired member being nominated and the place for which the retired member is being nominated and must contain the signature and the last four digits of the Social Security number of the retired member making the nomination. Any member of retiree group A receiving at least 25 nominations from retiree group A shall be considered a nominee for election to Place 6 on the board. Any retired member of retiree group B receiving at least 25 nominations from retiree group B shall be considered a nominee for election to Place 5 on the board. Any member of retiree group C receiving at least 25 nominations from retiree group C shall be considered a nominee for election to Place 7 on the board. No person shall be placed on the ballot as a nominee unless the person is a retired member who is nominated by the process detailed above.
d. Election of retired board members.
1. The executive director shall provide for an election procedure as authorized by the board, including, but not limited to, voting by mail, telephone and electronic means, and which may be conducted by a third-party voting service. The executive director shall prepare official ballots for the election of the retired board members, listing the nominees in alphabetical order by surname. Ballots for election of retired board members shall be made available to all retired members in retiree group A, B and C no later than July 20. If there is only one nominee for Place 5, there shall be no election for Place 5 and the one nominee shall automatically be elected to the board. If there is only one nominee for Place 6, there shall be no election for Place 6 and the one nominee shall automatically be elected to the board. If there is only one nominee for Place 7, there shall be no election for Place 7 and the one nominee shall automatically be elected to the board. No person shall be elected as trustee whose name does not appear on the official ballot as a nominee. To be considered valid, a ballot must be cast no later than August 15 of the election year. Votes cast by written ballot must be returned no later than August 15 of the election year. If the ballot is returned by mail, the envelope must be postmarked by August 15 of the election year. Each retired member qualified to vote in the election shall vote for one nominee only. Any ballot containing votes for two or more persons, or for persons who are not nominees as provided herein, shall be declared invalid and shall not be counted. The executive director or a designated third party shall tabulate all votes for all nominees. The nominees for each place receiving a majority of votes cast shall be declared elected to the board of trustees. Following the tabulation of votes, the executive director shall submit the results of same to the board meeting to be held before September 1 of the election year, at which time the board shall canvass the results of the election and certify which nominees are elected to the board. If, at the time of canvassing the results, a nominee receiving the majority of votes is no longer eligible to serve, then the nominee receiving the second highest number of votes from the appropriate retiree group will fill Place 5, 6 or 7 on the board. That member shall serve from September 1 of the election year through August 31 of the next election year for that place.
2. If there is more than one nominee for a place and no nominee receives a majority of the votes cast, or if there is a tie, then a run-off election shall be held, with ballots made available to the retired members for that place no later than September 1 of the election year and in the same manner as prescribed for the first election. Only the names of candidates who tied for the highest number of votes cast for that place in the first election, or the two candidates who received the highest number of votes with neither having a majority of votes cast, shall be printed on the ballot for the run-off election. All ballots for the second election must be cast by September 20 of the election year. Votes cast by written ballot must be returned by September 20 of the election year. If a ballot is returned by mail, the envelope must be postmarked by September 20 of the election year. The executive director or a designated third party shall tabulate the votes for the candidates in the run-off election. The candidate receiving the highest number of votes cast in the run-off election shall be declared elected to the board of trustees. In the event of a tie vote at the second election, the candidates who tie shall cast lots in the presence of the board of trustees to determine which one shall be declared elected.
3. Following the tabulation of votes in the run-off election, and the casting of lots in case of ties, the executive director shall submit the results of same to the board at a meeting to be held before November 1 of said election year, at which time the board shall canvass the results of the run-off election and certify which nominee is elected to the board. If, at the time of canvassing the results of the run-off election, the nominee elected to serve on said board is no longer eligible to serve, then the nominee receiving the second highest number of votes from the appropriate retiree term will fill Place 5, 6 or 7 on the board. That member shall serve from September 1 of the election year to August 31 of the next election year for that place.
(3) Trustees appointed by the governing body.
a. Place 8. The trustee for Place 8 shall be a resident of the city. A person appointed under this section may not be a member of the governing body. The trustee for Place 8 shall be appointed by a majority vote of the governing body to serve a term initially commencing September 1, 2007 and ending August 31, 2008. Thereafter, the person appointed by the governing body shall serve a term of two years (unless removed sooner by a majority vote of the governing body) commencing on September 1 of every even numbered year and ending August 31 of the next even numbered year. Should a vacancy occur in Place 8, then governing body, by majority vote, shall appoint another eligible resident of the city to serve the remainder of the unexpired term.
b. Place 9. The trustee for Place 9 shall be a resident of the city. A person appointed under this section may not be a member of the governing body. The trustee for Place 9 shall be appointed by a majority vote of the governing body to serve a term of two years (unless removed sooner by a majority vote of the governing body) commencing on September 1 of every odd numbered year through August 31 of the next odd numbered year. Should a vacancy occur in Place 9, then governing body, by a majority vote, shall appoint another eligible resident of the city to serve the remainder of the unexpired term.
c. Place 10. The trustee for Place 10 shall be a resident of the city. A person appointed under this section may not be a member of the governing body. The trustee for Place 10 shall be appointed by a majority vote of the governing body to serve a term initially commencing on September 1, 2007, and ending August 31, 2008. Thereafter, the person appointed by governing body shall serve a term of two years (unless removed sooner by a majority vote of the governing body) commencing on September 1 of every even numbered year through August 31 of the next even numbered year. Should a vacancy occur in Place 10, then governing body, by a majority vote, shall appoint another eligible resident of the city to serve the remainder of the unexpired term.
d. Place 11. The trustee for Place 11 shall be a resident of the city. A person appointed under this section may not be a member of the governing body. The trustee for Place 11 shall be appointed by a majority vote of the governing body to serve a term of two years (unless removed sooner by a majority vote of the governing body) commencing on September 1 of every odd numbered year through August 31 of the next odd numbered year. Should a vacancy occur in Place 11, then governing body, by a majority vote, shall appoint another eligible resident of the city to serve the remainder of the unexpired term.
e. Place 12. The trustee for Place 12 shall be a resident of the city. A person appointed under this section may not be a member of the governing body. The trustee for Place 12 shall be appointed by a majority vote of the governing body to serve a term initially commencing September 1, 2007, and ending August 31, 2008. Thereafter, the person appointed by governing body shall serve a term of two years (unless removed sooner by a majority vote of the governing body) commencing on September 1 of every even numbered year and ending on August 31 of the next even numbered year. Should a vacancy occur in Place 12, then the governing body, by a majority vote, shall appoint another eligible resident of the city to serve the remainder of the unexpired term.
f. Place 13. The trustee for Place 13 shall be the chief financial officer of the city. Should a vacancy occur in Place 13, then governing body, by a majority vote, shall appoint a qualified person to serve until a new chief financial officer is appointed.
(b) General provisions.
(1) The members of the board shall remain in office until their successors are duly elected or appointed.
(2) At its September meeting, the board shall elect from its membership a chair and a vice chair to serve for one year.
(3) The board shall serve without remuneration and shall meet not less than once a month and may meet at any time that the business of the fund shall require it. The chair shall have the power to call a meeting at any time necessary to carry out the business of the fund.
(4) Seven members of the board shall constitute a quorum to transact any business unless there are vacancies, in which event the quorum shall be reduced by the number of vacancies existing. Every matter before the board for vote shall require the affirmative vote of a majority of the trustees on the board (regardless of the number of trustees present at the board meeting) for final passage.
(5) The board shall have the power and duty to administer the fund and to make and establish any and all rules, regulations and procedures pertaining to the fund not inconsistent with this ordinance and applicable law.
(6) The board shall have the power, as it deems necessary and appropriate to carry out the purposes of the fund, to retain, enter into contracts and pay from fund assets for professional services, including, but not limited, to the following: actuaries, accountants, attorneys, administrators, consultants, directors and investment managers or advisors.
(7) The board shall have the power, as it deems necessary and appropriate to carry out the business of the fund, to enter into contracts, agreements and arrangements to facilitate the administration of the fund, and to pay for the costs and expenses of such business and administration out of fund assets.
(8) The board has discretion to make all determinations regarding the eligibility of members or other persons for benefits from the fund and the amount and payee thereof, not inconsistent with this ordinance and applicable law. Therefore, its decisions shall be final, binding and conclusive on all persons.
(9) In construing this ordinance, the provisions of the Texas Trust Code shall apply to the extent that they do not differ from this chapter.
(Ord. 20471-10-2012, § 2, passed 10-23-2012; Ord. 21650-02-2015, § 2, passed 2-17-2015; Ord. 21651-02-2015, § 2, passed 2-17-2015; Ord. 21652-02-2015, § 7, passed 2-17-2015)
(a) The board shall appoint an actuary for the purpose of providing annual valuations of the retirement fund. The actuary shall also serve as a technical advisor to the board and the executive director regarding the operations authorized by this chapter. The actuarial assumptions and tables used by the actuary shall assume such costs, liabilities, rates of interest, mortality, turnover and other factors as are reasonable, taking into account the experience of the fund and reasonable expectations, and shall be subject to board approval. At least 30 days before the date the board adopts actuarial assumptions to be used by the fund, the board shall submit to the city council a detailed report regarding the proposed actuarial assumptions. The report must include the fiscal impact of the proposed actuarial assumptions on the fund.
(b) The city shall engage an independent actuary every five years to perform an audit of the actuarial valuations, studies and reports of the fund in accordance with the provisions of Tex. Government Code § 802.1012, as amended.
(Ord. 20471-10-2012, § 2, passed 10-23-2012)
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