CITY OF TEXARKANA, AR

REQUEST FOR BOARD ACTION

 

AGENDA TITLE: Adopt an Ordinance amending Ordinance No. M-49 and approving TAPERS Pension Plan Amendments. (FIN)

 

AGENDA DATE: 5/1/2017

ITEM#:  10

DEPARTMENT: Finance

DATE SUBMITTED: 4/19/2017

PREPARED BY: Jessica Hyman

SUBJECT:  Approving Amendments for the TAPERS Pension Plan.

 

EXHIBITS: Ordinance, Revised Plan with tracked changes, Summary Plan Description with tracked changes, and Ordinance M-49.

APPROVAL:

 

EXPENSE REQUIRED: $0.00

AMOUNT BUDGETED: $0.00

APPROPRIATION REQUIRED: $0.00

SUMMARY:    This ordinance proposes adoption of an amendment to the TAPERS Pension Plan that was discussed by the TAPERS Committee on April 6, 2017. Once a TAPERS participant has reached the Normal Retirement Age of 65, the proposed amendment will allow the participant to be reemployed by the City on a part-time basis. In order for the participant to be eligible for reemployment, he or she must have actually terminated employment with the City. The participant will be eligible to receive TAPERS benefit payments during reemployment, but no additional retirement benefits will be accrued through the City.

BOARD ACTION: The City Manager and staff recommend that the Mayor and Board of Directors approve the attached ordinance. 

 

EMERGENCY CLAUSE: None needed.

 

 

 

ORDINANCE NO.___________

 

AN ORDINANCE AMENDING THE TEXARKANA, ARKANSAS EMPLOYMENT RETIREMENT SYSTEM PLAN (TAPERS); AND FOR OTHER PURPOSES.

 

WHEREAS, Pursuant to Ordinance No. M-20, the City of Texarkana, Arkansas, originally adopted a public employee retirement system plan (commonly known as TAPERS); and

WHEREAS, Pursuant to Ordinance No. M-49, the said plan was amended and restated as more specifically set forth therein; and,

WHEREAS, the TAPERS Committee suggests further amendment of the current version of the plan to allow a participant, upon reaching the normal retirement age of 65, to terminate his or her employment with the City and thereafter be eligible for reemployment on a part-time basis, receive TAPERS benefits accrued as a result of the original employment, but not otherwise be eligible for additional retirement benefits under the plan as a result of such reemployment; and

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF TEXARKANA, ARKANSAS AS FOLLOWS:

SECTION 1.  That the current version of the Texarkana, Arkansas Public Employee Retirement Plan is amended to include the following new section:

4.12.    RETIREMENT AND REEMPLOYMENT

In the event that a Participant has attained the Normal Retirement Date and has actually terminated employment with Employer, the Participant may subsequently be reemployed by the Employer (at the discretion of the Employer) on a part-time basis, and such reemployment shall not affect the Participant’s retirement benefits. Such Participant shall not in any event accrue any additional benefit under this Plan or any other retirement plan of the Employer as a result of service after re-employment.

 

SECTION 2.  Likewise, the corresponding “Summary Plan Description” is amended to include the following new section:

            L.         RETIREMENT AND REEMPLOYMENT

In the event that a Participant has attained the Normal Retirement Date and has actually terminated employment with Employer, the Participant may subsequently be reemployed by the Employer (at the discretion of the Employer) on a part-time basis, and such reemployment shall not affect the Participant’s retirement benefits. Such Participant shall not in any event accrue any additional benefit under this Plan or any other retirement plan of the Employer as a result of service after re-employment.

 

SECTION 3.  Except as specifically amended above, the Texarkana, Arkansas Public Employment Retirement Plan (TAPERS) adopted by Ordinance M-20 and amended and reinstated by Ordinance M-49 remains unmodified and in full effect. 

SECTION 4.  All prior ordinances are superseded to the extent inconsistent with this Ordinance.

PASSED AND APPROVED this 1st day of May, 2017.

 

_____________________________

Ruth Penney Bell, Mayor

 

ATTEST:

 

________________________________

Heather Soyars, City Clerk

 

APPROVED:

 

________________________________

George M. Matteson, City Attorney

 

 

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