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All pensions being paid by the city prior to January 1, 1951, except to retired firefighters and their beneficiaries, shall become obligations of the retirement system and shall be paid from the retirement system, subject to § 39.252.
(1957 Rev. Ords., § 2.536; 1992 Code, § 35-48; Ord. 118-16, passed 12-20-2016)
(a) The board of trustees shall be the trustees of the assets of the retirement system. The board shall have full and independent power to invest and reinvest the monies and assets of the retirement system and to hold, purchase, sell, assign, transfer and dispose of any securities and investments of the retirement system.
(b) The board shall establish a written investment policy, with the advice and counsel of the advisors as the board deems necessary, and the investment policy shall set forth the types of investments into which shall be placed the assets of the retirement system. The policy shall further set forth appropriate provisions with respect to investments, including, but not limited to, the anticipated rate of return, quality of investment, class of investment, maturity and liquidity, cash reserves and acceptable risk. The investment policy shall be reviewed by the board periodically.
(c) The board shall have the authority to invest and reinvest the assets of the retirement system in securities, investment vehicles or property, wherever situated and of whatever kinds, as shall be approved by the board and in accordance with the investment policy adopted by the board. The board may engage an investment advisor or investment counsel in contract for investment advice when they deem it necessary.
(d) The board may select one or more funding agents or investment counsel for the management of the assets of the retirement system. The selection and appointment of funding agents or investment counsel shall be made by the board, and the board shall have the right to determine the form and substance of each and every agreement under which the funds are to be held and managed by the funding agent or investment counsel, provided that the agreement shall not be inconsistent with the provisions of this subchapter.
(1) The board shall require that any funding agent or investment counsel who has custody or control of any property of the plan to keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions pertaining to the trust property, and shall further require that all accounts, books and records pertaining thereto be open for inspection and audit at all reasonable times by the board or its designees and the city finance department or its designees. The board shall also be authorized to have conducted an independent audit at the expense of the retirement system.
(2) The board may retain the services of a qualified independent investment consultant who shall, at least on a semiannual basis, report on the relative performance of the retirement system's funding agents or investment counsel and recommend to the board the retention or replacement of the managers. A qualified independent investment consultant shall have the qualifications and experience as determined by the board from time to time.
(e) (1) The board shall, in selecting a funding agent or investment counsel or advisor, exercise all judgment and care in the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs. Any funding agent, investment counsel or advisor shall have a minimum of five years of experience.
(2) For the purposes of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
FUNDING AGENT. A corporate or individual trustee or trustees, insurance company or companies authorized to do business in the state, or combination thereof.
INVESTMENT ADVISOR. A corporation or individual who has registered with the United States Securities and Exchange Commission as an investment advisor and is authorized to do business in the state.
INVESTMENT COUNSEL. A corporation or individual authorized to do business under the Federal Investment Advisors Act of 1940, being 15 U.S.C. §§ 80b1 through 80-b-21, as amended from time to time, and authorized to do business in the state.
(f) The board of trustees may, unless restricted by law, transfer all or any portion of the assets of the retirement system to a collective or common group trust, as permitted under Revenue Ruling 81-100, Revenue Ruling 2011-1, Notice 2012-6, and Revenue Ruling 2014-24 (or subsequent guidance), that is operated or maintained exclusively for the commingling and collective investment of monies, provided that the funds in the group trust consist exclusively of trust assets held under plans qualified under § 401(a) of the Internal Revenue Code, individual retirement accounts that are exempt under § 408(e) of the Internal Revenue Code, eligible governmental plans that meet the requirements of § 457(b) of the Internal Revenue Code, and governmental plans under § 401(a)(24) of the Internal Revenue Code. For this purpose, a trust includes a custodial account or separate tax-favored account maintained by an insurance company that is treated as a trust under § 401(f) or under § 457(g)(3) of the Internal Revenue Code.
(g) Any collective or common group trust to which assets of the retirement system are transferred pursuant to the above shall be adopted by the board of trustees as part of the plan by executing appropriate participation, adoption agreements, and/or trust agreements with the group trust's trustee.
(h) The separate account maintained by the group trust for the plan pursuant shall not be used for, or diverted to, any purpose other than for the exclusive benefit of the members and beneficiaries of the plan.
(i) For purposes of valuation, the value of the separate account maintained by the group trust for the plan shall be the fair market value of the portion of the group trust held for the plan, determined in accordance with generally recognized valuation procedures.
(j) The description of the various funds of the retirement system shall be interpreted to refer to the accounting records of the retirement system and not to the segregation of its assets in the funds of the retirement system. All assets of the retirement system shall be held for the sole purpose of meeting disbursements for annuities, pensions and other payments authorized by this subchapter and shall be used for no other purpose.
(1957 Rev. Ords., § 2.538; 1992 Code, § 35-50) (Ord. 2491, passed 8-7-1967; Ord. 2650, passed 11-17-1969; Ord. 106-09, passed 12-7-2009; Ord. 118-16, passed 12-20-2016)
(a) The retirement system fund shall be the fund to which shall be credited all interest, dividends and other income from investments of the retirement system; all transfers from the accumulated contributions account by reason of lack of claimant; and all other monies received by the retirement system, the disposition of which is not specifically provided by this subchapter. The board may accept gifts and bequests and such shall be credited to the retirement system. Whenever the board determines that the balance in the retirement system is more than sufficient to cover the charges to the fund the board may provide for contingency reserves.
(b) Provided, however, that no interest be credited a member after he or she leaves city employment except as is otherwise specifically provided in this subchapter, at the end of each fiscal year the board shall allow and credit regular interest on the balance standing to each member's credit in the accumulated contributions account at the beginning of each quarter of the fiscal year.
(1957 Rev. Ords., § 2.540; 1992 Code, § 35-52) (Ord. 2757, passed 6-8-1971; Ord. 118-16, passed 12-20-2016)
(a) As permitted by law, in addition to retirement allowances payable under this subchapter, the retirement system shall pay from the retirement system one-half of the premium for the retirant's and beneficiary's group health insurance plan participated in by the city. Effective after final termination and distribution of the 401(h) group health insurance fund, this premium will instead be paid from the OPEB 115 Trust Fund Agreement.
(b) As permitted by law, if a retirant or beneficiary is covered by a group insurance plan participated in by the city, and is permitted to and elects to continue coverage as a retirant, the retirant or beneficiary may authorize the board to have deducted from all retirement allowances the payments required to continue coverage under the group insurance plan.
(c) The benefits described in this section shall apply to any retired employee or officer who retires prior to January 1, 2014, is entitled to a retirement allowance and who shall have participated at least five years, immediately preceding separation from city employment in the group health insurance plan participated in by the city.
(d) All contributions from the retirement allowances for purposes of the retirant's and/or beneficiary's group insurance fund shall be reasonable and ascertainable.
(e) Contributions to fund the retirant's and beneficiary's 401(h) group health insurance plan must be subordinate to the contributions to the retirement system for retirement benefits. At no time shall the aggregate actual contributions to the 401(h) group health insurance fund (when added to actual contributions for life insurance protection under the plan, if any) be in excess of twenty-five percent (25%) of the total aggregate actual contributions made to the retirement system (not including contributions to fund past service credit, if applicable). The board shall annually determine whether the twenty-five percent (25%) test has been met. If at any time the 401(h) group health insurance fund (plus any life insurance contribution) would exceed the twenty-five percent (25%) test, the excess amount of contributions shall be transferred to the retirement system for retirement benefits.
(f) Forfeitures from the group health insurance fund shall not be allocated to individual accounts, but shall be used for account expenses.
(g) At no time prior to the satisfaction of all liabilities under the 401(h) group health insurance fund or termination of the retirement system shall any assets for purposes of group health insurance be used for, or diverted to, any purpose other than the providing of payment of the retirement system portion of the monthly retiree health insurance premium benefit in this section, and the payment of administrative expenses.
(h) The provisions of § 401(h)(5) of the Internal Revenue Code shall apply upon the satisfaction of all liabilities under law.
(i) Effective December 31, 2016, the 401(h) group health insurance fund shall be terminated. After satisfaction of all liabilities under the 401(h) group health insurance fund to provide certain retiree medical benefits, any amounts remaining in this fund must be returned to the city, pursuant to § 401(h)(5) of the Internal Revenue Code.
(j) Effective January 1, 2017, the OPEB Trust shall be created and effective pursuant to § 39.006. The OPEB 115 Trust Fund Agreement will be used to make the payments described in (a) of this section as soon thereafter as is administratively reasonable in the board's judgment.
(1957 Rev. Ords., § 2.541; 1992 Code, § 35-53) (Ord. 96-87, passed 11-16-1987; Ord. 26-98, passed 3-2-1998; Ord. 24-13, passed 5-7-2013; Ord. 118-16, passed 12-20-2016)
(a) Any officer or employee who retires from city employment with an immediate annuitized pension benefit after December 31, 2013, shall upon retirement receive a monthly stipend. The stipend shall be paid at the rate of $40 per month per year of service until such retirant is Medicare eligible or upon death, whichever is sooner. Such stipend shall be adjusted for inflation at an annual rate of 3% beginning in January, 2015.
(b) Credited service for purposes of calculation of the monthly stipend will be determined in the same manner as identified in § 39.224 for members that retire with a regular, early reduced, duty-incurred disability or non-duty-incurred disability retirement benefit.
(Ord. 24-13, passed 5-7-2013; Ord. 118-16, passed 12-20-2016)
All annuities, pensions, retirement allowances, the accumulated contributions of any member, or any other benefit whatsoever accrued or accruing to any member or beneficiary shall be unassignable and shall not be subject to execution, attachment, garnishment or any other process of law whatsoever, except as is specifically provided by this subchapter.
(1957 Rev. Ords., § 2.542; 1992 Code, § 35-54)
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