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1 AN ORDINANCE BY COUNCILMEMBER KWANZA HALL TO AMEND THE CITY OF ATLANTA GENERAL EMPLOYEES' PENSION PLAN TO AMEND THE ELIGIBILITY FOR PARTICIPATION IN THE GENERAL EMPLOYEES' PENSION PLAN; AND FOR OTHER PURPOSES WHEREAS, the City of Atlanta (the "City") provides a defined benefit pension ("Pension") to eligible non-sworn members of the Atlanta Police Department, eligible non-sworn members of the Atlanta Fire Rescue Department, and certain other eligible City employees; and WHEREAS, prior to July of 2001 all new hires to the City of Atlanta were eligible participants in the General Employees' Pension Plan; and WHEREAS, between July 1, 2001 and July 1, 2005, all new hires to the City of Atlanta were no longer eligible participants in the General Employees' Pension Plan and were automatically placed in the newly created City of Atlanta Defined Contribution 401(a) self-directed retirement plan, regardless of pay grade, and existing employees were allowed the opportunity to opt out of their participation in the General Employees' Pension Plan and roll over all of their existing pension contributions to the new Defined Contribution 401(a) self-directed retirement plan; and WHEREAS, in 2005 the eligibility requirements for the General Employees' Pension Plan were modified such that beginning on September 1, 2005, new hires to the City of Atlanta who were hired at payroll grade eighteen (18) and below were made eligible participants in the General Employees' Pension Plan; and WHEREAS, also in 2005, existing employees in the Defined Contribution 401(a) retirement plan who had been hired at payroll grade eighteen (18) and below during the period July 1, 2001 and September 1, 2005 were allowed an opportunity to opt into the General Employees' Pension Plan by rolling their existing Defined Contribution 401(a) retirement plan contributions and earnings into the General Employees' Pension Fund; and WHEREAS, since 2005, the City has heard the concerns of employees who have said that they did not properly understand the implications of opting out of the General Employees' Pension Plan in 2001 or were not properly allowed to opt into the General Employees' Pension Plan in 2005; and Last Updated: 11/21/17 Page 1 of 8
2 WHEREAS, the City desires to modify the eligibility for the General Employees' Pension Plan to include all employees hired between January 1, 2001 and December 31, 2005 who are currently participants in the Defined Contribution 401(a) retirement plan and who agree to roll over all of their Defined Contribution 401(a) contributions and earnings along with a payment of all additional sums they would have paid into the General Employees' Pension Fund had they been participants from their date of hire. NOW THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ATLANTA, GEORGIA AS FOLLOWS: SECTION 1: That Part I, Subpart B, Chapter 6, Article II, Division 1 (Generally), Section of the Code of Ordinances of the City of Atlanta, Georgia, Georgia Laws 1927, p. 265, be amended as follows (with permanent additions underlined in bold font and permanent deletions in strikeout font): Sec Credit for service while covered by the City of Atlanta Defined Contribution Plan. (a}effective September 1, 2005, a participant in the City of Atlanta Defined Contribution Plan (the "Defined Contribution Plan") who (i) is a permanent, full-time employee of the City of Atlanta, (ii) is either a classified employee, as defined in section of the Code of Ordinances of the City of Atlanta, or an employee whose payroll grade level is 18 or below and (iii) either has never received a distribution from the Defined Contribution Plan or has repaid to the Defined Contribution Plan the full amount of any prior distribution pursuant to the terms of such plan, may elect at any time before January 31, 2005 to transfer his vested and unvested account balance under the Defined Contribution Plan, excluding any amounts attributable to rollover contributions from other plans and voluntary after-tax employee contributions made under the Defined Contribution Plan, to the fund established under this act, 1927 Ga. Laws, page 265, as amended, and shall be credited with (A) such service and monthly earnings as the employee would have been credited if he had participated under the terms this act during the period that he participated in the Defined Contribution Plan and (B) if such employee previously participated under the terms of this act and elected to transfer the actuarial present value of his benefit under this act to the Defined Contribution Plan pursuant to Ordinance No , such service and monthly earnings as were used Last Updated: 11/21/17 Page 2 of 8
3 to determine the amount so January 1, 2018, a participant in the City of Atlanta Defined Contribution Plan (the "Defined Contribution Plan") on December, 2017 (date of passage of Ordinance No ) who: (i) is a permanent, full-time employee of the City of Atlanta who was hired between January 1, 2001 and December , and (ii) either has never received a distribution from the Defined Contribution Plan or has repaid to the Defined Contribution Plan the full amount of any prior distribution pursuant to the terms of such plan, and (iii) has executed a payment plan, which shall not exceed five (5) years from the date that it is signed, to contribute all additional sums that such employee would have contributed to the General Employees' Pension Fund. Specifically, an additional 1-2% of salary for any period of employment between January 1, 2001 and September 1, 2011; and an additional 6-7% of salary for any period of employment between September 1, 2011 and January 1, 2018 as applicable. Such employees may elect at any time before April30, 2018 to transfer their vested and unvested account balance under the Defined Contribution Plan, excluding any amounts attributable to rollover contributions from other plans and voluntary after-tax employee contributions made under the Defined Contribution Plan, to the fund established under this act, 1927 Ga. Laws, page 265, as amended, and shall be credited with (A) such service and monthly earnings as the employee would have been credited if they had participated under the terms this act during the period that they participated in the Defined Contribution Plan and (B) if such employee previously participated under the terms of this act and elected to transfer the actuarial present value of his benefit under this act to the Defined Contribution Plan pursuant to Ordinance No , such service and monthly earnings as were used to determine the amount so transferred. SECTION 2: The amendments in this ordinance shall become effective upon the approval of this legislation. SECTION 3: That all ordinances and parts of ordinances in conflict herewith are hereby waived to the extent of the conflict only. Last Updated: 11/21/17 Page 3 of 8
4 SECTION 4: That the Municipal Clerk is instructed to retain all legislative history references in the codified version of Part I (Charter and Related Laws), Chapter 6 (Pensions), including Editor's notes, and shall not delete any such references, but shall amend them to include this ordinance. Last Updated: 11/21/17 Page 4 of 8
5 CITY COUNCIL ATLANTA, GEORGIA SPONSOR SIGNATURES Last Updated: 11/21/17 Page 5 of 8
6 LEGISLATION HISTORY BLUE BACK CITY COUNCIL ATLANTA, GEORGIA AN ORDINANCE BY COUNCILMEMBER KWANZA HALL TO AMEND THE CITY OF ATLANTA GENERAL EMPLOYEES' PENSION PLAN TO AMEND THE ELIGIBILITY FOR PARTICIPATION IN THE GENERAL EMPLOYEES' PENSION PLAN; AND FOR OTHER PURPOSES Workflow List: Clerk of Council Completed 11/21/2017 3:27 PM Atlanta City Council Completed 11/20/2017 1:00 PM Finance/Executive Committee Pending 11/29/2017 1:00 PM Mayor's Office Pending HISTORY: 11/20/17 Atlanta City Council REFERRED WITHOUT OBJECTION RESULT: REFERRED WITHOUT OBJECTION Next: 11/29/2017 1:00 PM Last Updated: 11/21/17 Page 6 of 8
7 AN ORDINANCE BY COUNCILMEMBER KWANZA HALL TO AMEND THE CITY OF ATLANTA GENERAL EMPLOYEES' PENSION PLAN TO AMEND THE ELIGIBILITY FOR PARTICIPATION IN THE GENERAL EMPLOYEES' PENSION PLAN; AND FOR OTHER PURPOSES Last Updated: 11/21/17 Page 7 of 8
8 Certified by Presiding Officer Certified by Clerk Mayor s Action See Authentication Page Attachment Last Updated: 11/21/17 Page 8 of 8
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