|
|
|
City of Shreveport | ||
|
|
||||
| 505 Travis Street P.O. BOX 31109 SHREVEPORT, LOUISIANA 71130 | ||||
|
FACT SHEET ______________________________________________________________________________ TITLE DATE ORIGINATING DEPARTMENT AN ORDINANCE TO JANUARY 10, 2012 FINANCE AMEND CHAPTER 66 OF THE CODE OF ORDINANCES RELATIVE TO BENEFITS AND RETIREMENT ALLOWANCES SPONSOR AND TO OTHERWISE PROVIDE WITH RESPECT THERETO. SAME ______________________________________________________________________________ PURPOSE To amend certain subsections of Section 66-106 of the Code of Ordinances relative to benefits and retirement allowances for persons who have completed the period of participation for the deferred retirement option plan (“DROP”). ______________________________________________________________________________ BACKGROUND INFORMATION Chapter 66 of the Code of Ordinances contains provisions which establish a retirement system for all officers and employees of the City of Shreveport and which places the management of the system under the authority of a board of trustees. Section 66-43 of the Code of Ordinances authorizes the board of trustees to establish rules and regulations for the administration of the retirement system as may be necessary from time to time. Section 66-106 of the Code of Ordinances permits an election by any member of the system who, subject to certain conditions, is otherwise eligible to receive a service retirement allowance, to participate in the deferred retirement option plan (DROP) and defer the receipt of retirement benefits in accordance with provisions of Chapter 66. An eligible member may participate in DROP for a period not to exceed two (2) years (“period of participation”). Under the current systems, any member who has completed the DROP and elects to continue employment following the end of the period of participation may continue to allow funds to remain on deposit in the employee’s DROP account which account shall continue to earn interest at a rate set annually by the board of trustees. Interest paid on DROP accounts in 2011 was four (4%) percent. Elimination of the payment of interest on the accounts of members who have completed DROP and elect to continue employment following the end of the period of participation would result in significant savings to the Plan for the benefit of all members. This amendment has been approved by the Employees Retirement System Board of Trustees. ______________________________________________________________________________ TIMETABLE Introduction - January 10, 2012 Final Passage - January 24, 2012 ______________________________________________________________________________ SPECIAL PROCEDURAL REQUIREMENTS None ______________________________________________________________________________ ALTERNATIVES 1. Adopt the ordinance as presented. 2. Amend the ordinance. 3. Reject the ordinance. ______________________________________________________________________________ CONCLUSION Alternative Number 1 is recommended. ______________________________________________________________________________ FACT SHEET PREPARED BY: Terri Anderson-Scott City Attorney
ORDINANCE NO. _____ OF 2012
BY: WHEREAS, Chapter 66 of the Code of Ordinances contains provisions which establish a retirement system for all officers and employees of the City of Shreveport and which places the management of the system under the authority of a board of trustees; and WHEREAS, Section 66-43 of the Code of Ordinances authorizes the board of trustees to establish rules and regulations for the administration of the retirement system as may be necessary from time to time; and WHEREAS, Section 66-106 of the Code of Ordinances permits an election by any member of the system who, subject to certain conditions, is otherwise eligible to receive a service retirement allowance, to participate in the deferred retirement option plan (DROP) and defer the receipt of retirement benefits in accordance with provisions of Chapter 66; and WHEREAS, an eligible member may participate in DROP for a period not to exceed two (2) years (“period of participation”); and WHEREAS, under the current systems, any member who has completed the DROP and elects to continue employment following the end of the period of participation may continue to allow funds to remain on deposit in the employee’s DROP account which account shall continue to earn interest at a rate set annually by the board of trustees. Interest paid on DROP accounts in 2011 was four (4%) percent; and WHEREAS, elimination of the payment of interest on the accounts of members who have completed DROP and elect to continue employment following the end of the period of participation would result in significant savings to the Plan for the benefit of all members. NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Shreveport, in due, regular, and legal session convened that Section 66-106 of the Code of Ordinances is hereby amended and reenacted to now read as follows: Sec. 66-106. Deferred retirement option plan. *** (f) The deferred retirement option plan account shall earn interest at a rate set annually by the board of trustees. Except as otherwise provided in subsection (j) of this section, such interest shall be weighed and credited on a pro rata basis by the board of trustees to each individual account balance in the account on an annual basis. Any person who participates in this program shall not be eligible to receive a cost-of-living increase while participating and shall not be eligible until his employment which makes him eligible to be a member of this system has been terminated for at least one full year. *** (j) If employment is not terminated at the end of the period specified for participation, payment into the account shall cease and the participant shall be required to transfer all funds in the account to a self-directed 457 plan endorsed by the board of trustees in which case, the board of trustees shall be under no obligation for payment of interest on any account established pursuant to the provisions of this section. Payment from the account shall not be made until employment is terminated nor shall the monthly benefits being paid into the fund during the period of participation be payable to the individual until termination of employment. Upon termination of employment the distributions shall commence in accordance with requirements of subsection (h) of this section. *** BE IT FURTHER ORDAINED that if any provision or item of this ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this ordinance which can be given effect without the invalid provisions, items or applications and to this end the provisions of this ordinance are hereby declared severable. BE IT FURTHER ORDAINED that all ordinances or parts thereof in conflict herewith are hereby repealed. APPROVED AS TO LEGAL FORM: _________________________________ City Attorney’s Office |
||||
