O R D I N A N C E NO AN ORDINANCE, amending Section Two of Ordinance No. 4641, as adopted February 10, 1982, and amended by Ordinance No.

Transcription

1 O R D I N A N C E NO AN ORDINANCE, amending Section Two of Ordinance No. 4641, as adopted February 10, 1982, and amended by Ordinance No. 6303, adopted December 18, 1985, by amending Section 1.10, 1.23, 1.24, 4.2, 5.1, and 5.2 of the Pension Plan of The Metropolitan St. Louis Sewer District. BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. Section Two of Ordinance No. 4641, as adopted February 10, 1982, and amended by Ordinance No adopted December 18, 1985, is hereby amended by amending Section 1.10, 1.23, 1.24, 4.2, 5.1, and 5.2 of the Pension Plan of The Metropolitan St. Louis Sewer District. Section Two. Section Two of Ordinance No. 4641, as hereby amended, shall read as follows: "Section Two. There is hereby established a Pension Plan to provide for the pensioning and other retirement benefits of employees of The Metropolitan St. Louis Sewer District and the spouses and minor children of deceased employees, and providing for the payment of public funds for such purpose, in pursuance of the Missouri Constitution 1945, as amended, and the Missouri Statute enacted authorizing said Pension Plan, and the Plan of The Metropolitan St. Louis Sewer District. Said Pension Plan shall read as follows:

2 CONTENTS Article Page I Definitions 3 II Eligibility and Participation 7 III Contributions 9 IV Retirement Benefits 10 V Benefits on Termination of Employment 15 VI Death Benefits 16 VII Payment of Retirement Benefits 20 VIII Administration of the Pension Plan - Pension Committee 27 IX Management, Investment and Use of Funds 30 X Amendment or Termination of the Pension Plan 33 XI Special Termination Provisions 36 XII Limitations on Rights of Employees and Creditors 39 XIII Miscellaneous Provisions 41 2

3 ARTICLE I DEFINITIONS The following words and phrases, when used hereafter in this document, shall have the meanings set forth below: 1.1 Pension Plan means The Metropolitan St. Louis Sewer District Employees' Pension Plan, effective as of November 1, 1967, as set forth herein and as it may be amended from time to time. 1.2 District means The Metropolitan St. Louis Sewer District. 1.3 Board means the Board of Trustees of the District. 1.4 Trustee means any corporation, person or persons who may be designated by the Board from time to time to hold, invest, reinvest and disburse, in accordance with the terms of a trust agreement, contributions toward the cost of the Pension Plan and the income therefrom. 1.5 Trust means any trust agreement made and entered into by the District with a Trustee or Trustees or any corresponding document with any successor Trustee or Trustees. 1.6 Carrier means any insurance company selected by the Board at any time to hold certain contributions towards the cost of the Pension Plan, or to provide certain benefits specified by the Pension Plan, under one (1) or more group annuity contracts. 1.7 Employee means any employee who is employed by the District on a regular, full-time permanent basis and who has been appointed to a position in the classified service in accordance with Civil Service Rules and has successfully completed his probationary period. Employees shall also include those employees in the unclassified service, but shall not include technical personnel employed on special occasions, or those who may be employed in an advisory capacity. Any person 3

4 customarily employed by the District for at least one thousand (1,000) hours per year shall be deemed to be employed on a regular full-time permanent basis. 1.8 Member means any Employee or former Employee of the District who is covered under the Pension Plan in accordance with Article II hereof. 1.9 Continuous Servicemeans the period of time between an Employee's date of most recent employment as shown on the records of the District and the date to which such Continuous Service is being determined. Continuous Service shall not be interrupted by an authorized leave of absence, military service (provided the Employee retains re-employment rights under Federal or other laws), or any other absence which does not constitute a termination of employment under the District's Civil Service rules and regulations. The provisions of this Section 1.9 shall be administered by the District on the basis of uniform non-discriminatory rules Credited Servicemeans that portion of an Employee's Continuous Service during which he is both an Employee and a Member, and which is used to determine a Member's retirement benefit under Article IV Plan Year means the period beginning on November 1, 1967 and ending on December 31, Thereafter, Plan Year means any twelve-month period beginning on any January 1 and terminating on the following December Earnings means the total base compensation paid to a Member by the District during the Plan Year (after the first Plan year, this is the calendar year) excluding bonuses, overtime, and any other additional forms of compensation. 4

5 1.13 Beneficiary means any person designated in accordance with Section 6.2 to receive certain benefits payable hereunder on or after a Member's death Retirement Datemeans the first day as of which a retirement benefit is payable to a Member in accordance with this Pension Plan, and may be either a Normal Retirement Date, an Early Retirement Date, or a Postponed Retirement Date, as set forth in Article IV Accrued Retirement Benefitwhen used with respect to an individual Member, as of any specified date, means the sum of the Retirement Benefits, as set forth in Article IV, payable to him commencing at his Normal Retirement Date based on his Credited Service and Final Average Earnings, to the specified date Committee means the Pension Committee described in Article VIII Gender Masculine pronouns used in this Pension Plan shall be understood to refer to persons of either sex Pension Fund means the total fund derived from the District appropriations, from any property given or donated from any source, and the income derived therefrom Social Security Wage Base means, with respect to any Plan year, the maximum amount of Earnings which may be considered wages for such year under Section 3121 (a) (1) of the Internal Revenue Code Final Average Earningsmeans the average of a Member's Earnings over the five (5) Plan years preceding the date as of which the average is being determined. If the Member has less than five (5) years of Credited Service, then the average shall be determined over the entire period of Credited Service Covered Earningsmeans the amount of Earnings with respect to 5

6 which old age and survivors insurance benefits would be provided for a Member under the Social Security Act if for each year until he reaches age sixty-five (65), his annual Earnings are at least equal to the Social Security Wage Base Normal Retirement Datemeans the first day of the month coinciding with or next following his sixty-fifth (65th) birthday, or May 1, 1968 if later Early Retirement Datemeans the first day of any month elected by the Member following his termination of employment, and which is after his fifty-fifth (55th) birthday and completion of five (5) years of Continuous Service, but not prior to May 1, Postponed Retirement Datemeans the first day of the month coincident with or next following a Member's termination of employment after his Normal Retirement Date Disability Retirement Datemeans the date that a Member incurs a disability as defined in Section

7 ARTICLE II ELIGIBILITY AND PARTICIPATION 2.1 Eligibility Any individual employed by the District who becomes an Employee as defined in Section 1.7 of this Plan shall be eligible to participate hereunder, and shall so participate as a condition of his employment, following six (6) months of service. 2.2 Participation Each Employee shall become a Member under this Pension Plan and shall participate in the Pension Plan commencing with the first day of the pay period coincident with or next following the date he became an Employee. In the month before such Employee becomes a Member he shall, where possible, complete a beneficiary designation form. 2.3 Loss of Credited Service Credited Service shall not be granted for months during which a Member is on authorized leave of absence without pay. Periods for which service is not credited for authorized leaves shall be excluded from the Member's Credited Service as determined under Section 1.10 but not from his Continuous Service as determined under Section Termination of Participation Each Member shall remain a Member until the earlier of his death or termination of employment from the District. He shall 7

8 continue to be a Member even though he ceases to be an Employee so long as he continues in the employ of the District. He will receive Credited Service only during such periods of his membership as he qualifies as an Employee. A Member on military leave shall not for purposes of this Pension Plan be terminated from the employ of the District so long as he retains reemployment rights under Federal or other laws but shall be so terminated for purposes of this Pension Plan if he fails to return to the employ of the District within the required period established by such laws. A former Member who is re-employed by the District must again fulfill the conditions of this Article II before again becoming a Member of the Pension Plan. 8

9 ARTICLE III CONTRIBUTIONS 3.1 District Contributions The District will from time to time contribute to the Pension Plan such sums as are considered necessary by the District, on the basis of actuarial calculations, to carry out the purposes of the Pension Plan. There shall be no contributions required or allowed from Members. 3.2 Disposition of Contributions District contributions to the Pension Plan shall be placed in a Trust Fund or Funds held by a Trustee or Trustees, or shall be held by a Carrier or Carriers under a group annuity contract or contracts, or shall be placed in part in a Trust Fund or Funds and in part in a group annuity contract or contracts. 3.3 Disposition of Forfeitures Forfeitures of Accrued Benefits arising from terminating non-vested Members shall not be used to increase the benefit of any Member, but shall be used to reduce future District contributions under the Plan. 9

10 ARTICLE IV RETIREMENT BENEFITS 4.1 At Normal Retirement Date The annual retirement benefit payable to a Member who retires on his Normal Retirement Date on or after August 1, 1979 shall be equal to the sum of (A) and (B), as follows: (A)One and one-quarter percent (1-1/4%) of his Final Average Earnings times the period in years and completed twelfths of his Credited Service, plus (B)One-half of one percent (1/2%) of his Final Average Earnings which are in excess of the Covered Earnings times the period in years and completed twelfths of his Credited Service. A member who reached his Normal Retirement Date prior to August 1, 1979 shall be entitled to the retirement benefits provided by the Plan in effect on his Normal Retirement Date. A Member reaching his Normal Retirement Date on or after August 1, 1979 shall receive retirement benefits that are not less than those he would have received if the Plan Provisions in effect on July 31, 1979 had continued without change, and his rate of Earnings on July 31, 1979 had continued at the same level. A Member shall be fully vested upon attainment of age At Early Retirement Date The annual retirement benefit payable to a Member who retires on an Early Retirement Date shall be equal to his Accrued 10

11 Retirement Benefit on his Early Retirement Date, or the date of his termination if earlier, after completion of five (5) years of Continuous Service, reduced by 5/12 of 1% for each month by which such Member's Early Retirement Date precedes his Normal Retirement Date prior to age sixty (60), and reduced by 5/24 of 1% for each month by which such Member's Early Retirement Date precedes his Normal Retirement Date following age sixty (60). 4.3 At Postponed Retirement Date The annual retirement benefit payable to a Member who retires on a Postponed Retirement Date, shall be equal in amount to that payable on his Normal Retirement Date. In addition, he shall receive a special annual retirement benefit commencing on his Postponed Retirement Date which shall be the actuarial equivalent of the lump sum value of those monthly benefit payments, which he would have received prior to his Postponed Retirement Date had he retired on his Normal Retirement Date, accumulated at an annual rate of interest equal to four percent (4%) from the date such payments would have been made up to his Postponed Retirement Date. 4.4 At Disability Retirement Date The annual disability benefit to a Member who has attained age forty (40), has at least ten (10) years of Continuous Service, becomes disabled as defined in Section 4.5, and qualifies for disability benefits under the Federal Social 11

12 Security Act, shall be his Accrued Retirement Benefit as of his Disability Retirement Date. Payment of the disability benefit shall commence on the first day of the month coinciding with or next following a date six (6) months after the Member's Disability Retirement Date. Payments shall continue until the Member attains his Normal Retirement Date, the date of death, or until the Committee determines that the Member is no longer disabled, whichever is earliest. In the event that the disability benefit continues to the Member's Normal Retirement Date, it shall thereupon cease, and the Member shall be retired on his Normal Retirement Date and receive regular retirement benefits based on his Accrued Retirement Benefit at his Disability Retirement Date. 4.5 Conditions on Payment of Disability Benefits A Member shall be deemed to be disabled for purposes of the Plan only if the following conditions are satisfied: (a)he has been disabled, through unavoidable cause, by illness or injury so as to be incapable of carrying on the duties of any occupation, (b)such disability shall have continued for a period of at least six consecutive months, and (c)such disability is determined by a qualified physician selected by the District as being, in his opinion, permanent. The disability shall be deemed to have resulted from an 12

13 unavoidable cause unless: (d)it was contracted, suffered or incurred while the Member was engaged in, or it resulted from his having engaged in, a felony, or (e)it resulted from his habitual use of drugs, intoxicants, or narcotics, or (f)it resulted from a deliberately self-inflicted injury or self-induced sickness, or (g)it resulted from injury received or disease contracted in service in the Armed Forces. The Committee shall interpret and administer the disability benefit conditions in a uniform manner so as to preclude any individual selection or discrimination. The Committee may require that a disabled Member undergo a medical examination by a physician or clinic selected by the Committee at any time prior to his Normal Retirement Date, but not more often than semi-annually, to determine whether such Member is eligible for continuation of his disability benefits. If on the basis of any medical examination or other fact from any and all sources, it is found that such Member is no longer disabled as defined herein, his disability benefit shall thereupon cease. If the disabled Member refuses to submit to a medical examination, the Committee shall suspend disability benefits until such Member submits to a medical examination. In the event of the reemployment as an Employee of a 13

14 disabled Member, he shall resume active membership in the Plan as of the date of reemployment, with Continuous Service credit for the period of disability but with no Credited Service or accrual of retirement benefits during such period. If the Member's disability benefits are terminated prior to his Normal Retirement Date and he is not re-employed by the District, the Member's rights to benefits, if any shall be determined in accordance with the provisions of the Plan as if he had terminated employment on the date benefits ceased, but with no accrual of benefits following the Disability Retirement Date. 14

15 ARTICLE V BENEFITS ON TERMINATION OF EMPLOYMENT 5.1 Termination Prior to Ten Years If a Member terminates employment with the District prior to his Normal Retirement Date and prior to completing five (5) years of Continuous Service, there shall be no benefits payable from the Plan to the Member. If such Member is later reemployed, he must again satisfy the requirements of Article II concerning participation, with no Credited Service for his previous period of employment. 5.2 Vested Termination If a Member terminates employment with the District other than by death, retirement, or disability, after completing at least five (5) years of Continuous Service, he shall be entitled to a retirement benefit commencing on his Normal Retirement Date in the amount of his Accrued Retirement Benefit as of his termination date. Such a Member may elect to have his Accrued Benefit commence after he attains age fifty-five (55), in which case his benefit shall be reduced as provided in Section 4.2. The first monthly payment to such a terminated Member shall be payable, if he is then living, beginning as of the later of: (a) The Member's elected Retirement Date, or (b)the first day of the month next following the date on which the Committee receives the application. 15

16 ARTICLE VI DEATH BENEFITS 6.1 Death After Retirement (A)At the death of a Member, who has not made an election in accordance with Article VII, on or after his Retirement Date but before having received sixty (60) monthly pension payments, the balance of such sixty (60) monthly pension payments shall thereafter become payable to his Beneficiary, under the normal form of benefit payment specified in Section 7.1. If an option elected under Section 7.2 has become effective on his Retirement Date, no death benefits will be payable under this Section 6.1 (A) but benefits will be payable in accordance with the option which is in effect. (B)At the death of a Member who has retired from the service of the District after having completed at least ten years of Continuous Service at his Normal Retirement Date, or Early Retirement Date if applicable, a lump sum payment in the amount of one thousand dollars ($1,000.00) shall be payable to his Beneficiary. If the Member had completed less than ten years of Continuous Service upon retirement, the one thousand dollars ($1,000.00) payment shall be reduced in the ratio that his actual years of Continuous Service completed prior to attainment of age sixty-five (65) 16

17 bears to ten. This lump sum benefit shall be in addition to any other benefits which might be payable under this Plan and shall only be payable to persons who retire from the service of the District under the provisions of Section 4.1, 4.2, or 4.3 on or after August 1, 1974, and whose Normal Retirement Date occurs on or after August 1, 1974, or to persons who are terminated from the service of the District after attainment of age fifty-five (55) and are eligible for vested benefits under Article V. This benefit shall not be payable to persons receiving benefits in accordance with the provisions of Sections 4.4 or Designation of a Beneficiary Each Member shall, at the time he becomes a Member, designate his Beneficiary specifically by name on a form provided by the District through the Committee. Any such designation, whether original or subsequent, may be revoked and changed from time to time, upon such forms and in such manner as may be provided by the Committee without the consent of any Beneficiary. Only one person may be designated to be Beneficiary of such Member at any one time, and each such designation shall be contingent upon the named Beneficiary surviving the Member, except that by and with the consent of the Committee more than one Beneficiary may be designated by any Member, and such shares, terms and conditions as may be 17

18 acceptable to the Committee shall be specified. If no Beneficiary has been designated or if the designated Beneficiary does not survive the Member, then any benefits otherwise payable to the Beneficiary shall at the option of the Committee be paid to the estate of the Member or to one or more of the following: (1) widow or widower, (2) children, (3) parents, (4) brothers and sisters, (5) executors or administrators. 6.3 Spouse's Benefit (A)The surviving spouse of any qualified Member shall be eligible for a Spouse's Benefit commencing on the first day of the month next following the date of the Member's death. The Member shall be qualified if he met all of the following requirements on the date of his death. (1)Member has completed at least ten years of continuous service; (2) Member had attained his fortieth (40th) birthday; (3)Member had been married to his spouse for at least one year; (4)Member had not attained his Normal Retirement Date; (5)Member was an active Employee or a Member receiving or eligible to receive Disability Benefits in accordance with Section 4.4 on that date. (B)The monthly amount of the spouse's benefit shall be equal 18

19 to fifty percent (50%) of one-twelfth of the Member's Accrued Retirement Benefit determined as of the date of his death, or fifty dollars ($50.00), if greater. Such spouse's benefit shall be payable monthly to such eligible spouse with the final monthly payment made on the earlier of (a) the first day of the month immediately preceding or coinciding with the date of the spouse's death or (b) the first day of the month immediately preceding the date of the spouse's remarriage. 19

20 ARTICLE VII PAYMENT OF RETIREMENT BENEFITS 7.1 Regular Basis The retirement benefits provided for in Section 4.1, 4.2 and 4.3 hereof, whether payable commencing at Normal, Early or Postponed Retirement Date, shall be payable in monthly installments each equal to one-twelfth (1/12th) of the annual amount to which a Member is entitled and shall terminate either: (1) with the monthly payment coinciding with or next preceding the date of death of the Member, or if later, (2) with the sixtieth (60th) monthly payment. 7.2 Optional Basis In lieu of the regular retirement benefit payable as hereinabove set forth, a Member may elect one of the following options, subject to the limitations set forth herein: (A)Life Annuity Option - A Member may, in lieu of the retirement benefit specified in Sections 4.1, 4.2 or 4.3 and the Death Benefit specified in Section 6.1, elect an increased amount of monthly benefit of equal actuarial value payable monthly for his lifetime with the provisions that no benefits will be payable after the Member's death. This election may be made at any time prior to the Member's Retirement Date and such election may be revoked by the Member at any time prior to his Retirement Date. 20

21 (B)Beneficiary Forms - A Member may, in lieu of the normal form of retirement benefit specified in Section 7.1, elect, under the circumstances set forth in (C) and (D) below, a reduced amount of retirement benefit of equal actuarial value under one of the following forms: (1)Ten Year-Certain Option - Under this option the reduced retirement benefit will be payable until the Member's death and, if such death occurs within ten years of his Retirement Date, will be continued to his Beneficiary until a total of one hundred and twenty monthly installments have been paid. If no Beneficiary survives to receive all such installments, the commuted value of the unpaid installments will be paid to the estate of the last to die of the Member or the Beneficiary. (2)Contingent Annuitant Option - Under this option the reduced retirement benefit will be payable until the Member's death and, if his Contingent Annuitant, who shall be designated by the Member on a form furnished by the Committee, survives him, will be continued in its full or lesser amount, as elected by the Member, to the Contingent Annuitant until his death. In no event may this option become effective if the Contingent Annuitant is other than the spouse of the Member 21

22 and if the election of such option would result in the benefits payable to the Member having an actuarial value less than fifty percent (50%) of the Member's normal benefit. (C)Option Date - An option elected under the circumstances set forth below becomes effective at the earlier of the Member's Retirement Date or his Normal Retirement Date which date is referred to as the Option Date. (D)Timely Election - The options stated in (B) must be elected on a form satisfactory to the Committee prior to the Member's Option Date, and if not elected at least one (1) year before his Option Date, the Member must furnish evidence of his good health satisfactory to the Committee for the election to be valid. A Member may not elect the Contingent Annuitant Option if the monthly payments to his Contingent Annuitant would be less than ten dollars ($10) a month. (E)Change of Election - An election made under (B) may not be validly changed or revoked except as follows: (1)Any change may be made by the Member if he files with the Committee a written request therefor at least one (1) year before his Option Date. (2)Any change may be made at any time before his Option Date by mutual agreement in writing between the Member and the Committee. 22

23 (3)A Beneficiary under the Ten-Year-Certain Option may be changed by written request of the Member at any time before or after retirement. (4)If the Contingent Annuitant designated under the Contingent Annuitant Option dies before the Member's Option Date, his election shall be considered as automatically void. (5)If the Member dies before his Option Date, any election made under this Section 7.2 shall be void. (6)If the Member dies after his Option Date but before his Retirement Date, any election made under (B) will be in effect and payments will commence to the designated Beneficiary or Contingent Annuitant, if any, as though the Member had retired the day before his death. (F)Social Security Option - A Member who retires and whose retirement benefits hereunder are to commence prior to age sixty-two (62) may elect to have the retirement benefit to which he is entitled paid on an actuarially adjusted basis so as to be larger for the months prior to and smaller for the months after age sixty-two (62), the age at which he may begin to receive primary benefits under the Federal Social Security Act. In the event of such election by a Member, the amount of his 23

24 monthly retirement benefit payments hereunder until age sixty-two (62) shall be approximately equal to the amount of his monthly retirement benefits hereunder plus the monthly amount of such primary benefits estimated to become payable to him after such age. The retirement benefit payments under this option shall be payable during the Member's lifetime and continuing to the first day of the month in which the Member's death occurs. The election of this option shall be made by written notice to the Committee prior to the Member's Early Retirement Date. 7.3 Small Benefits Regardless of the other provisions of this Pension Plan, if the monthly benefit payable to a Member or to his Beneficiary is less than ten dollars ($10.00), the actuarial equivalent of all future benefits with respect to such Member may be paid at any time in a single lump sum or in such other manner as may be agreed upon by the Committee. 7.4 Source of Benefit Payments All benefit payments specified by this Plan will be made from a Trust or by a Carrier. 7.5 Re-employment of Retirees All benefit payments shall be suspended upon reemployment of a retiree, on a regular full time basis. 24

25 7.6 Required Distribution For Plan Years beginning after December 31, 1986, without regard to any other provision hereof, the requirements of this Section shall apply to the distribution of a Member's benefit. (A)No Member's election to receive benefits under this Plan shall be effective unless pursuant to such election: (1)Benefits will commence no later than the first day of April following the calendar year. (i)in which the Member attains age seventy and one-half (70-1/2), or (ii)terminates employment with the District, whichever is later; and (2)The Member's entire benefit shall be distributed by the later of; (i) the end of his life expectancy, or (ii)the end of the joint and last survivor life expectancy of the Member and his designated Beneficiary. Life expectancies shall be determined initially as of the date the Member terminates his employment with the District or, if earlier, the date on which the benefit begins to be paid and redetermined no more often than annually thereafter. If the Member's spouse is not his designated Beneficiary, the method of distribution 25

26 selected must assure that at least fifty percent (50%) of the present value of the benefit is paid within the life expectancy of the Member. (B)If a Member dies after distribution of his benefit has commenced, the remaining portion of his benefit shall continue to be distributed at least as rapidly as under the method of distribution applicable prior to the Member's death. (C)If a Member dies before distribution of his benefit commences, the Member's entire benefit, if any, shall be distributed within sixty (60) months after the Member's death; provided, however, if any portion of the Member's benefit is payable to a designated Beneficiary, distributions may be made over the life expectancy of such Beneficiary and shall commence no later than one (1) year after the Member's death. If the Beneficiary is the Member's surviving spouse, however, distribution shall begin no later than the date on which the Member would have attained age seventy and one-half (70-1/2). 7.7 Actuarial Assumptions For the Plan Year beginning January 1, 1985, and for each Plan Year thereafter, any benefit paid under this Plan shall be the actuarial equivalent of the normal form. For purposes of determining actuarial equivalence, the following interest and 26

27 mortality assumptions shall be used: (A) Seven percent (7%); (B)1971 Group Annuity Mortality Table for Males, set back one (1) year for males and six (6) years for females, the resulting factor therefrom blended on a basis for males and females. 27

28 ARTICLE VIII ADMINISTRATION OF THE PENSION PLAN - THE PENSION COMMITTEE 8.1The Pension Plan shall be administered by a Committee herein called the "Pension Committee." The Pension Committee shall have the responsibility to interpret this ordinance and its provisions with respect to any benefit or claim for benefit hereunder, including but not limited to the determination of Credited Service, Earnings, Eligibility and Termination of Membership with respect to any Member of the Pension Plan, or his Beneficiary. 8.2The Pension Committee shall consist of eight (8) members; One (1) member, appointed by the Chairman of the Board, shall be a City of St. Louis member of the Board of Trustees of the District. One (1) member, appointed by the Chairman of the Board, shall be a St. Louis County member of the Board of Trustees of the District, and four (4) members shall be the Executive Director, the Secretary-Treasurer, Assistant Executive Director and General Counsel, the Director of Finance, all of the District; and the other two (2) members shall be members of the Pension Plan, and also employees of the classified service of the District, and shall be elected by and from the membership of the Pension Plan, and shall hold office only while members of the Pension Plan. The first elected members shall be elected within sixty (60) days following November 1, The one (1) member elected for a 28

29 term expiring October 31, 1968, and one (1) member elected for a term expiring October 31, The terms thereafter shall be for two (2) years each commencing November 1 of the respective year. Within ten (10) days after the approval of this Ordinance, the Board shall proceed with such actions as are necessary to provide for the election of the members from the classified service of the District. If a vacancy occurs among the elected members of the Pension Committee, the vacancy shall be filled for the unexpired term in the same manner as the office was previously filled. The Personnel Director of the District shall serve as Secretary of the Committee and shall be an ex-officio member thereof, without the power to vote. The Committee shall elect its own Chairman and Vice Chairman and shall delegate to them their respective duties. 8.3The Pension Committee may adopt such rules governing its action, and recommend the employment of agents, attorneys, actuaries and clerical assistants as it may deem necessary, with approval of the Board. The Board shall have the power to change from time to time all rules, regulations and actuarial procedures and tables required in the administration of the Pension Plan as recommended by the Pension Committee. 8.4The decision of the Pension Committee upon matters within its jurisdiction shall be conclusive and binding upon all parties 29

30 concerned. Decisions by the Pension Committee shall be consistent in order to avoid any prohibited discrimination during the operation of the Pension Plan. Any Employee or Beneficiary aggrieved by any decision of the Pension Committee may appeal its decision to the Board. 8.5The Pension Committee shall authorize the Trustee or the Carrier to make all payments necessary in order to carry out the provisions of the Pension Plan. 8.6The Board and the Pension Committee shall be entitled to rely upon all tables, valuations, certificates and reports furnished by an actuary selected by the Board, upon all certificates and reports made by an accountant so selected, and upon all opinions given by any legal counsel so selected, and the Board and the Pension Committee shall be fully protected in respect to any action taken or suffered in good faith in reliance upon any actuary, accountant or counsel, and all action so taken or suffered shall be conclusive upon each of them and upon all Members and their Beneficiaries and Contingent Annuitants, if any. 30

31 ARTICLE IX MANAGEMENT, INVESTMENT AND USE OF FUNDS 9.1There is hereby created The Metropolitan St. Louis Sewer District Employees' Pension Fund, hereinafter referred to as the "Pension Fund." The Pension Fund shall be derived from District appropriations, and from income derived therefrom, and from any property given or donated to it from any source. 9.2The Board shall select the manner of funding the Pension Plan, whether by insurance or annuity contracts, trust agreement, or any other means, and shall have authority to select or change any Carrier, Trustee or depository with which said contracts or trust agreement shall be entered into and with which monies of the Pension Fund shall be held, managed and invested. 9.3The Board may, from time to time, appoint one or more investment managers to direct any Trustee or Trustees with respect to all or a specified portion of the assets of the Pension Fund held by the Trustee. Such appointment shall be made by a resolution duly adopted by the Board and shall be effective as of the date specified therein, but not before it has been accepted in writing by the investment manager and notice of such appointment and acceptance given to the Trustee. The Board may remove, or change the assets subject to the control of, any investment manager previously appointed hereunder, but the Trustee may follow the 31

32 instructions of a properly appointed investment manager until informed by the Board that such investment manager has been removed or its authority over particular assets changed. No person or firm may be appointed as an investment manager unless he meets the requirements of section 3(38) of the Employee Retirement Income Security Act of 1974, P.L , as amended. 9.4The Board may, from time to time, direct the Trustee to invest a specified portion of the Pension Fund in a particular asset or assets and, if so requested by the Trustee, shall also specify the particular assets then held by the Trustee to be disposed of in order to make the specified investment. Upon receipt of such instruction or instructions from the Board, the Trustee shall take steps promptly to comply therewith, and shall hold all assets acquired pursuant to such instructions until specifically instructed by the Board to dispose of the same, or, if the Board advises the Trustee that the Board no longer instructs the Trustee to hold such assets, until such time as the Trustee in its own discretion decides to dispose of the same. 9.5No part of the corpus or income of the Pension Fund or of any trust maintained pursuant to this Pension Plan or any funds contributed thereto shall be used or diverted, by any means, to any purpose other than to benefit Members, retired Members, or their Beneficiaries. 32

33 9.6The Board shall select custodian of all books, records, accounts and other property of the Pension Fund established pursuant to this Pension Plan, subject to the control and direction of the Board. He shall keep separate books and complete accounts of the Pension Fund, and his books and records shall be subject to the inspection of the Board or any of its members at all times, and be it further provided that the custodian of all books, records, accounts and other property of the Pension Fund established pursuant to this Pension Plan shall be bonded in an amount to be determined by the Board. 9.7The District may rely upon the estimates made by an actuary selected by it of the amount of contributions needed to carry out the Pension Plan. Neither the District, the Actuary, the Trustee, or Trustees, nor the Carrier or Carriers shall be liable in any manner if the Trust Fund or Trust Funds, and/or the amounts paid to Carrier or Carriers shall prove insufficient to provide for the payment of such Pension benefits. Such benefits are to be payable only to the extent that such Funds, or amounts, or both shall suffice therefor. 33

34 ARTICLE X AMENDMENT OR TERMINATION OF THE PENSION PLAN 10.1The District reserves the right at any time to modify or amend or terminate the Pension Plan in whole or in part, provided, however, that the District shall have no power to modify or amend the Pension Plan in such manner as would cause or permit any funds held by the Trustee or the Carrier hereunder to be used for, or diverted to, purposes other than for the exclusive benefit of Members or their Beneficiaries, or as would cause or permit any portion of such funds or assets to become the property of the District until all liabilities pursuant to the Pension Plan are satisfied; and provided further, that the duties or liabilities of the Trustee and/or the Carrier shall not be increased without their written consent. No such modification or amendment shall have the effect of retroactively changing or depriving Members or Beneficiaries of rights already accrued under the Pension Plan. 10.2If the Pension Plan is terminated, or if the District discontinues making contributions hereunder, the funds held by the Trustee and the Carrier hereunder shall be used, subject to the payment of administrative expenses, for the benefit of Members and Beneficiaries, and for no other purpose, until all remaining liabilities to them for benefits accrued under the Pension Plan to the date of termination 34

35 have been satisfied, such liabilities being determined as though all Members on the termination date had fully completed the vesting requirements of Section 5.2. In the event that such funds and assets are insufficient to satisfy such liabilities in full, they shall then be used in the following order: Class I - First, for the satisfaction of all remaining liabilities with respect to retired Members. Class II - Then for the satisfaction of such liabilities with respect to each unretired Member as may be met by application of his Accumulated Contributions, if not previously refunded. Class III - Then, towards the satisfaction of any remaining liabilities with respect to Members who had fulfilled the requirements of Section 5.2 prior to the Pension Plan termination date, giving preference to those Members with the earliest birth dates. Class IV - Finally, on a pro rata basis toward the satisfaction of the remaining liabilities with respect to other Members. 10.3In the satisfaction of liabilities at termination date in accordance with Section 10.2, funds in the hands of the Trustee or Trustees and/or Carrier or Carriers hereunder shall be applied, subject to the payment of administrative expenses, at the discretion of the District through the purchase of guaranteed annuities, lump-sum payments, installment payments or in any other manner which will in a 35

36 consistent and non-discriminatory manner carry out the intent of Section The Pension Plan shall be considered terminated as of the first of the following dates: (a)the date as of which the District loses its present legal identity by means of dissolution, merger, consolidation, or otherwise, unless within ninety (90) days of such date a successor has agreed to accept the responsibilities of the District hereunder; (b)any other date specified in a notice executed and delivered at least sixty (60) days in advance of such date by the District to the Trustee or Trustees and/or Carrier or Carriers. 10.5The Trust and/or the insurance contract executed pursuant to this Pension Plan are intended to qualify the Pension Plan as a tax-exempt pension trust pursuant to the provisions of Section 401 (a) of the Internal Revenue Code, as now or hereafter amended. 36

37 ARTICLE XI SPECIAL TERMINATION PROVISIONS 11.1 (A)If the Pension Plan is terminated or the full current costs thereof are not met at any time prior to August 1, 1989, (or, if the full current costs are not met on August 1, 1989, if the Pension Plan is terminated thereafter but prior to the date the full current costs are met) the amount of the District contributions (or funds attributable thereto) to be used for the benefit of any Member who was one of the twenty-five (25) highest-paid Employees as of August 1, 1989, and whose normal annual retirement benefit from the Plan will exceed $1,500, shall not exceed the larger of the following amounts: (1)The portion of the Plan's assets which would have been applied to provide benefits for such Member if the Plan in effect prior to August 1, 1979 had been continued without change, or (2) $20,000, or (3) The sum of (a) and (b) below: (a)the portion of the Plan's assets which would have been applied to provide benefits for such Member if the Plan had been terminated on July 31, 1979, and (b)an amount computed by multiplying the number of 37

38 years for which full current costs of the Plan are met after August 1, 1979 by (1) 20% of such Member's average annual compensation for the five (5) preceding years, or (2) $10,000, whichever is smaller. (B)If a Member described in this Section 11.1 leaves the employ of the District when the full current costs have not been met, the benefits he may receive from such District contributions shall not, at any time, prior to August 1, 1989, exceed the benefits set forth in (A) herein. (C)These conditions shall not restrict the full payment of any death or survivor's benefit on behalf of a Member who dies while the Plan is in full effect and its full current costs have been met. (D)The foregoing shall not restrict the current payment of full retirement benefits called for by the Pension Plan for any retired Member while the Pension Plan is in full effect and its full current costs have been met. (E)In the event of termination of the Pension Plan prior to August 1, 1989, distribution to the unretired Member other than the Members described in this Section 11.1 shall include an equitable apportionment among such other Members of all excess benefits provided by the District contributions for the Members described in 38

39 this Section 11.1 in the following manner: To each such other Member in the ratio that the reserve liability then attributable to him bears to the total reserve liability for all such other Members under the Pension Plan. 11.2The restrictions imposed by the provisions of this Article XI are included solely to meet the requirements of the Internal Revenue Service as stated in current regulations in the event that it should be determined by statute, a court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this Article XI are no longer necessary to qualify the Pension Plan under the Internal Revenue Code, this Article XI shall become inoperative without the necessity of further amendment. 39

40 ARTICLE XII LIMITATIONS ON RIGHTS OF EMPLOYEES AND CREDITORS 12.1Participation in the Pension Plan shall not give any Employee any right or claim to a retirement benefit, except upon reaching his Retirement Date hereunder, and no Employee, Member, or Beneficiary shall be entitled to any right or claim to a retirement benefit, except to the extent that such right is specifically fixed under the terms of the Pension Plan and the assets of the Pension Plan are sufficient therefor. The establishment of the Pension Plan shall not be construed as giving any Employee or Member a right to be continued in the employ of the District, or as interfering with the right of the District to terminate the employment of any Employee or Member at any time. 12.2No benefit, which shall be payable under the Pension Plan to any person, shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the same shall be void; and no such benefit shall in any manner be liable for, or subject to, the debts, contracts, liabilities, engagements, or torts of any such person nor shall it be subject to attachment or legal process for, or against, such person, and the same shall not be recognized under the Pension Plan, except to such an extent as may be required by 40

41 law. 12.3If any person who shall be entitled to any benefit under the Pension Plan shall become bankrupt or attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge such benefit under the Pension Plan then such benefit shall, in the discretion of the District, cease and terminate, and in that event the Trustee or Carrier shall hold or apply the same for the benefit of such person, his spouse, children, other dependents or any of them in such manner and in such proportion as the District shall determine. 41

42 ARTICLE XIII MISCELLANEOUS PROVISIONS 13.1 Facility of Payment If the District in good faith believes that (a) a person entitled to receive any payment under the Pension Plan is physically or mentally incompetent to receive such payment and to given a valid release therefor, and (b) another person or an institution is then maintaining or has custody of such person, and no guardian, committee, or other representative of the estate of such person has been duly appointed by a court of competent jurisdiction, the payment may be made, to such other person or institution referred to in (b) above, and the release of such other person or institution shall be a valid and complete discharge for the payment Notice of Address Each person entitled to benefits under the Pension Plan must file with the District, in writing his post office address and each change of post office address. Any communication, statement, or notice addressed to such person at his latest post office address as filed with the District will be binding upon such person for all purposes of the Pension Plan, and neither the Trustee, the Carrier, nor the District shall be obliged to search for or to ascertain the whereabouts of any such person. If the District notifies any such person that he is entitled to benefits under the Pension 42

43 Plan and also notifies him of the provisions of this subsection, and if such person fails to collect his benefits or make his whereabouts known to the District within two (2) years after any benefits hereunder shall become payable, such person shall lose all benefits under the Pension Plan, provided however, that the Board may reinstate all benefits under the Pension Plan Data Each person entitled to benefits under the Pension Plan must furnish to the District such documents, evidence or other information as the District considers necessary or desirable for the purpose of administering the Pension Plan or to protect the Pension Plan, the Trustees, or the Carriers; and it shall be a condition of the Pension Plan that each such person must furnish such information promptly and sign such documents as the District may require before any benefits become payable under the Pension Plan. If the age or any other relevant fact with respect to any Member, or any other person entitled to receive benefits under the Pension Plan has been misstated, appropriate offsetting adjustments shall be made in future benefits. 43

44 The foregoing Ordinance was adopted December 9,