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ARTICLE 11. RETIREMENT PLANS

Annotations By: Jacqueline Bejma

Sec. 11-101. City’s Duties

The city will establish and maintain retirement plan coverage by ordinance

Financial benefits arising in each fiscal year will be funded during that fiscal year only

No financial benefit of any active or retired city employee can be diminished or impaired

Mandate retiree participation on retirement boards; one for police and one for fire

1. The City shall provide, by ordinance, for the establishment and maintenance of retirement plan coverage for city employees.
2. Financial benefits arising on account of service rendered in each fiscal year shall be funded during that year and that funding shall not be used for financing unfunded accrued liabilities.
3. The accrued financial benefits of active and retired city employees, being contractual obligations of the city, shall in no event be diminished or impaired.

Sec. 11-102. Continuation of Existing Plans

All retirement plans in existence when this charter takes effect will remain intact

The retirement plans of the city existing when this Charter takes effect, including the existing governing bodies for administering those plans, the benefit schedules for those plans and the terms for accruing rights to and receiving benefits under those plans shall, in all respects, continue in existence exactly as before unless changed by this Charter or an ordinance adopted in accordance with this article.

Sec. 11-103. Principles Applicable In Administering Plans

Not more than two (2) governing bodies for administering the city’s retirement plans may be established, whose membership is set forth in this section, subject to applicable law.

No more than 2 governing bodies can administer the city’s retirement plan

A board of trustees of the general retirement system will consist of:

1. The mayor
2. A city council member
3. The city treasurer
4. 5 members of the retirement system, elected by members of the retirement system
5. A citizen who is not an employee of the city or eligible for city retirement benefits
6. 1 retiree who is currently receiving city retirement benefits

The board of trustees of the police and fire retirement system will consist of:

1. The mayor (or designee)
2. A city council member
3. The city treasurer
4. The chief of police
5. The fire commissioner
6. 3 firefighters who are members of the retirement system, elected by members of the retirement system
7. 2 members elected by and from members ranking lieutenant or lower
8. 1 member elected by and from members ranking higher than lieutenant
9. 3 police officers who are members of the retirement system; elected by police officer member

Staff services required by a governing body shall be provided as determined by the Finance Director.

Not more than two (2) governing bodies for administering the city’s retirement plans may be established, whose membership is set forth in this section, subject to applicable law.

1. The Board of Trustees of the General Retirement System shall consist of:
   1. The Mayor;
   2. A City Council member selected by that body;
   3. The City Treasurer;
   4. Five (5) members of the retirement system, to be elected by the members of the retirement system under rules and regulations as may be adopted by the Board; except that not more than one (1) trustee shall be elected from any department;
   5. A citizen of the City who is neither an employee of the city nor eligible to receive benefits under the retirement system, appointed by the Mayor, subject to approval of the Board; and
   6. One (1) retirant, receiving benefits under the retirement system and elected by retired city employees under procedures established by ordinance.
2. The Board of Trustees of the police and fire retirement system shall consist of:
   1. The Mayor or in the absence of the Mayor, a designee;
   2. A City Council member selected by that body;
   3. The City Treasurer;
   4. The Chief of Police;
   5. The Fire Commissioner;
   6. Three (3) firefighters who are members of the retirement system elected by the firefighter members under the rules and regulations as may be adopted by the Board. Trustees shall be:
      1. Two (2) to be elected by and from members holding the rank of lieutenant (or equivalent) and lower ranks.
      2. One (1) to be elected by and from members holding a rank above lieutenant (or equivalent);
   7. Three (3) police officers who are members of the retirement system elected by police officer members under the rules and regulations as may be adopted by the board. Trustees shall be:
      1. Two (2) to be elected by and from members holding the rank of lieutenant (or equivalent) and lower ranks.
      2. One (1) to be elected by and from members holding a rank above lieutenant (or equivalent); and
   8. Two retirants, receiving benefits under the retirement system, who shall be residents of the city, one elected by retired firefighters and one elected by retired police officers under procedures established by ordinance.

Staff services required by a governing body shall be provided as determined by the Finance Director.

Sec. 11-104. Information Required Before Benefit Increase

Any change in future retirement benefits can take place only after a report on the long-term costs and changes is made to the city council

This report must be completed by an independent actuary and is not actionable until 3 months after the actuary presents the findings to the public

Before final action on any proposed change in future retirement benefits is taken, the City Council shall obtain a report as to the immediate and long-term costs of the change from an independent actuary of its choosing and may not take final action until at least three (3) months after the report of the actuary is made public at a meeting of the City Council.

Sec. 11-105. Audits

The board of trustees for city retirement plans will commission an annual audit

The Board of Trustees for the city retirement plans shall contract for annual independent audits.