11/25/2014 Ordinances 9510 ORDINANCE NO. 9510
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF GRAND
ISLAND, NEBRASKA TO AMEND THE CITY OF GRAND ISLAND, NEBRASKA
POLICE OFFICERS' RETIREMENT SYSTEM PLAN AND TRUST; TO AUTHORIZE
FURTHER ACTIONS; AND TO PROVIDE FOR REPEAL OF CONFLICTING
ORDINANCES, SEVERABILITY AND THE EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF GRAND
ISLAND, HALL COUNTY, NEBRASKA:
SECTION 1. Pursuant to Nebraska Statutes, Sections 16-1001 through and including
16-1019, the City of Grand Island maintains the City of Grand Island, Nebraska Police
Officers' Retirement System Plan and Trust embodied in plan documents including an
adoption agreement and basic plan document constituting an integral part thereof
("Plan").
SECTION 2. The Mayor and City Council are authorized and desire to amend the Plan,
and specifically to incorporate actuarial and revised reporting provisions of Nebraska
LB 759 (2014), which amendment is presented with this Ordinance ("Amendment No.
1").
SECTION 3. The Mayor and City Council do hereby approve and adopt said
Amendment No. 1, effective on the date set forth therein.
SECTION 4. The Mayor is authorized to execute Amendment No.1 on behalf of the
City, and the City Administrator is authorized and directed to provide the same to the
Trustee (for its written acceptance, if determined necessary or appropriate), and if
directed in this Ordinance or otherwise determined necessary or advisable, to cause
said Amendment No. 1 to be submitted, together with such supporting data as may be
necessary or advisable and applicable application fee, to the Internal Revenue Service
for ruling as to whether the same complies with the pertinent provisions of the Internal
Revenue Code of the United States and, in particular, Sections 401(a) and 501(a)
thereof, with authority to make any changes in or to Amendment No. 1 and other Plan
documents and take such further actions as the City Administrator determines
necessary or appropriate to obtain a favorable ruling or maintain the qualified status of
the Plan.
SECTION 5. All ordinances and parts of ordinances as previously enacted to the extent
in conflict with this Ordinance or any part hereof are hereby repealed.
SECTION 6. If any section, subsection, sentence, clause or phrase of this Ordinance is,
for any reason, held to be unconstitutional or invalid, such unconstitutionality or
invalidity shall not affect the validity of the remaining portions of this Ordinance. The
Mayor and City Council hereby declare that it would have passed this Ordinance and
Approved as to Form 1,41,y
November 24,2014 tt Cit Mrney
ORDINANCE NO. 9510 (Cont.)
each section, subsection, sentence, clause or phrase thereof, irrespective of the fact
that any one or more sections, subsections, sentences, clauses or phrases be declared
unconstitutional or invalid.
SECTION 7. This Ordinance shall be in force and take effect from and after passage,
approval and publication as provided by law.
Enacted: November 25, 2014
1, At
/ay a icek, Mayor
Attest:
RaNae Edwards, City Clerk
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ORDINANCE NO. 9510 (Cont.)
CITY OF GRAND ISLAND,NEBRASKA POLICE
OFFICERS' RETIREMENT SYSTEM PLAN AND TRUST
Amendment No. 1
The City of Grand Island, Nebraska Police Officers' Retirement System Plan and Trust is hereby
amended effective July 18, 2014 as follows:
Section 1.1 of the Basic Plan Document is hereby amended by adding the following definition:
"Sex-Neutral Basis — Notwithstanding anything in this Plan to the contrary, "sex-neutral
basis" for purposes of a Police Plan or a Fire Plan, effective on and after July 18, 2014 in
accordance with Nebraska L.B. 759, shall mean the benefit calculation provided to the City by a
licensed domestic or foreign insurance or annuity company with a product available for purchase
in Nebraska that utilizes a blended, non-gender-specific rate for actuarial assumptions, mortality
assumptions, and annuity conversion rates for a particular participant, except that if a blended,
non-gender-specific rate is not available for purchase in Nebraska, the benefit calculation shall be
performed using the arithmetic mean of the male-specific actuarial assumptions, mortality
assumptions, or annuity conversion rates and the female-specific actuarial assumptions, mortality
assumptions, or annuity conversion rates, as applicable, for a particular participant, and the
arithmetic mean shall be determined by adding the male-specific actuarial assumptions, mortality
assumptions, or annuity conversion rates to the female-specific actuarial assumptions, mortality
assumptions, or annuity conversion rates applicable to a particular participant and dividing the
sum by two."
II. Section "A" of APPENDIX B of the Basic Plan Document is hereby amended by adding the
following at the end thereof:
"3. Police and Fire Plans. `Sex-Neutral Basis' for purposes of a Police
Plan or Fire Plan, or any other plan to the extent said teem is not expressly defined or
deteiniinable under the applicable plan documents, effective on and after July 18, 2014 shall have
the meaning provided in Section 1.1 of the Basic Plan Document."
III. The first sentence of Section 7.3.1 of the Basic Plan Document and subsections"(a)"and"(b)"of
said Section 7.3.1 are hereby deleted and replaced in their entirety with the following:
"7.3.1 Minimum Retirement Benefits. Participants of Police and Fire Plans, if
employed on January 1, 1984 and continuously employed by the City from such date through the
date of their retirement, shall receive a benefit which, when determined on a Straight Life
Annuity basis, shall not be less than:
(a) Police Plan.
(i) Effective April 16, 2012, 50% of Regular Pay if retirement
occurs after reaching 60 years of age and the Participant has completed 25 years
of service with the City. Before April 16, 2012, the following parenthetical was
included at the end: "(or 21 Years of Service if hired prior to November 18,
1965)"; or
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ORDINANCE NO. 9510 (Cont.)
(ii) 40% of Regular Pay if retirement occurs after reaching 55 years
of age, but before reaching 60 years of age, and the Participant has completed 25
Years of Service with the City.
The Minimum Benefit provided in this Section (a) shall be paid in any form of
benefit payment otherwise provided for in this Section 7. If the Minimum Benefit is paid
in a foiul other than a straight life annuity, such benefit shall be the Actuarial Equivalent
of the Minimum Benefit payable as a Straight Life Annuity.
If the Participant chooses the single lump-sum payment option, the Participant
can request that the Actuarial Equivalent be equal to the average of the cost of three
Annuity Contracts based on products available for purchase in Nebraska. The
Participant, Retirement Committee and City each shall submit the cost of an appropriate
Annuity Contract to determine the Actuarial Equivalent. The Annuity Contracts used for
comparison shall all use the same type of Sex-Neutral Basis benefit calculation.
(b) Fire Plan.
(i) 50% of Regular Pay if retirement occurs after reaching 55 years
of age and completing 21 years of service with the City; or
(ii) the Actuarial Equivalent of the benefit which otherwise would be
provided in (i) above at 55 years of age if retirement occurs after reaching 50
years of age, but before reaching age 55, and Retirement occurs after completing
21 Years of Service with the City; or
(iii) 50% of the Salary received at the time of retirement multiplied
by the ratio of Years of Service to 21 if retirement from the City occurs on or
after reaching 55 years of age with less than twenty-one Years of Service with
the City; or
(iv) For termination of employment after September 9, 1993, 50% of
Regular Pay if such termination of employment occurs prior to 55 years of age
but after completion of 21 Years of Service with the City.
Unless an optional annuity benefit is selected by the Participant, at the death of
the Participant,the same rate of pension as is provided for in this Section(b) shall be paid
to the surviving spouse of such deceased Participant during such time as the surviving
spouse remains unmarried and, in case there is no surviving spouse, then the minor
children, if any, of such deceased Participant shall equally share such Minimum Benefit
during their minority. As soon as a child of a deceased Participant ceases to be a minor,
such benefit to such child shall cease.
In the event a Participant or his or her surviving beneficiaries die before the
aggregate amount of Minimum Benefit payments distributed under this Section(b) equals
the total amount in the Participant's Employee Account at the time of the first payment,
the difference between the total amount in the Employee Account and the aggregate
amount of Minimum Benefit payments distributed shall be paid in a single sum to the
Participant's estate.
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ORDINANCE NO. 9510 (Cont.)
The Minimum Benefit provided for in this Section (b) shall be paid in any form
peuuiitted under Section 7. If the Minimum Benefit is paid in an optional annuity benefit
or a single lump-sum payment, such benefit or payment shall be the Actuarial Equivalent
of the annuity that would otherwise be paid to the Participant.
If the Participant chooses the single lump-sum payment option, the Participant
may request that the Actuarial Equivalent be equal to the average of the cost of two
Annuity Contracts based on products available for purchase in Nebraska, if the difference
between the cost of the two Annuity Contracts does not exceed 5%. The Participant and
the City each shall choose one of the Annuity Contracts used for determining the
Actuarial Equivalent. If the difference between the two Annuity Contracts chosen
exceeds 5%, the Retirement Committee shall review the costs of the two contracts and
make a recommendation to the City Council as to the amount of the lump-sum payment
to be made to the Participant. The City Council shall determine the amount of the single
lump-sum payment after a hearing thereon. The Annuity Contracts used for comparison
shall all use the same type of Sex-Neutral Basis benefit calculation."
IV. Section 12.13(b)(2)of the Basic Plan Document is hereby deleted and replaced in its entirety with
the following:
"(2) Quadrennial Report. In addition to immediately preceding provisions of this
Section 12.13, an annual report shall be prepared with respect to the defined benefit component of
the Plan, if any, if said component was open to new members on January 1, 2004. Said report, if
applicable, shall be filed with the Public Employees Retirement Board and the Nebraska
Retirement Systems Committee of the Legislature,with a copy submitted to the Auditor of Public
Accounts, in accordance with applicable Nebraska statutes. Such report shall consist of a full
actuarial analysis of the Plan. The analysis shall be prepared by an independent private
organization or public entity employing actuaries who are members in good standing of the
American Academy of Actuaries, and which organization or entity has demonstrated expertise to
perform this type of analysis and is unrelated to any organization offering investment advice or
which provides investment management services to the Plan."
V. All provisions of the Plan shall be deemed revised to be consistent with the revisions made by
this Amendment No. 1.
VI. This Amendment No. 1 supersedes any provisions of the Plan to the extent inconsistent with the
provisions of this Amendment.
This amendment is hereby executed this 25th day of November,2014.
CITY OF GRAND ISLAND, a Nebraska municipality
By:! �•�, <--
AM- ,Mayor
SFr
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