ORDINANCE __________

AN ORDINANCE relating to the Seattle City Employees' Retirement System; removing language regarding a limitation of benefits to sixty percent of final compensation in certain circumstances; repealing obsolete language; and amending Sections 4.36.050, 4.36.200 and 4.36.210, adding a new Section 4.36.150, and repealing Section 4.36.350 of the Seattle Municipal Code and correcting Code Section cross-references in accordance therewith.

WHEREAS, the Seattle Municipal Code ("SMC") Chapter 4.36 includes obsolete provisions which no longer apply to members who have not yet retired;

WHEREAS, the repeal of certain sections and subsections shall have no affect on those retirees, if any, who are currently collecting a benefit based on the provisions repealed by this ordinance; NOW THEREFORE

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Subsection B of Section 4.36.050 of the Seattle Municipal Code is amended as follows:

4.36.050 Definitions Alphabetical "E" through "M."

Unless a different meaning is plainly required by the context, the terms used in this chapter shall have the following meanings:

B. "Final compensation" means the average annual compensation earnable by a member during his twenty-four (24) highest consecutive months prior to termination of employment with the City. The "final compensation" of a member who retires from a temporary, interim, provisional, intermittent or part-time position is determined by multiplying the member's average hourly rate during his or her highest consecutive four thousand one hundred seventy-six (4,176) hours of service by two thousand eighty-eight (2,088) hours.

Section 2. A new Section 4.36.150 is added to the Seattle Municipal Code to read as follows:

SMC 4.36.150 1975 Increase in existing retirement allowances.

The monthly benefits of all members retired for service or disability prior to January 1, 1974, and the monthly benefits payable to any person as the result of the death of any member who was retired for service or disability prior to January 1, 1974, shall be increased as of January 1, 1975, by the percentage indicated in the following table opposite the year of retirement of the member upon whose service such benefits are based:

Percentage increase of monthly

benefit payable immediately

Year of retirement prior to January 1, 1975

1973 1%

1972 2

1971 3

1970 5

1969 7

1968 9

1967 11

1966 13

1965 15

1964 17

1963 19

1962 21

1961 23

1960 25

1959 27

1958 29

1957 31

1956 33

1955 35

1954 37

1953 39

1952 41

1951 43

1950 45

1949 47

1948 49

1947 51

1946 53

1945 55

1944 57

1943 59

1942 61

1941 63

1940 65

1939 67

1938 69

1937 71

1936 73

1935 75

1934 77

1933 79

1932 81

1931 83

1930 85

1929 87;

Provided, that the increases herein shall not be applicable to persons receiving benefits as the result of the death of a member who elected "Option B" as provided in Section 4.36.260. The increases provided herein shall be paid from available retirement system funds or from contributions of the City. Nothing in this subsection shall affect the amount of any bonus dividend declared pursuant to Section 4.36.155, nor shall any such bonus dividend be considered as a part of monthly benefits for the purpose of computing the percentage increases authorized in this subsection.

Section 3. Section 4.36.200 of the Seattle Municipal Code is amended as follows:

4.36.200 Retirement of a member for service by Board.

Retirement of a member for service shall be made by the Board as follows:

A. Any member in the City service may retire by filing with the Board a written application, stating when he desires to be retired, such application to be made at least thirty (30) days prior to date of retirement; provided, however, that the member, at the time specified for his retirement, shall have completed five (5) years of City service as defined in this chapter, and shall have attained the age of sixty-two (62) years, or shall have completed ten (10) years of City service, and shall have attained the age of fifty-seven (57) years, or shall have completed twenty (20) years of City service and shall have attained the age of fifty-two (52) years, or shall have completed thirty (30) years of City service as defined in this chapter. Permanent discontinuance of City service after the member has become eligible for a retirement allowance under the provisions of this chapter shall entitle such member to his retirement allowance: Provided that if discontinuance of City service is caused by intemperance, wilful misconduct or violation of law on the part of the member, of which the Board shall be the judge, the Board of Administration, in its discretion, may pay to the member, in one lump sum, his accumulated contributions, in lieu of a retirement allowance, and such payment shall constitute full satisfaction of all obligations of the City to such member, and upon receipt of such payment he shall cease to be a member of the system.

B. Any member of the retirement system who, upon termination of his employment with the City after at least five (5) years' membership in the retirement system, elects to leave all his contributions in the retirement fund pursuant to Section 4.36.190 A shall be eligible to receive a retirement allowance upon reaching the age of sixty-two (62) years; provided, that if such member completed ten (10) years of service prior to termination of his employment, he shall be eligible to receive a retirement allowance upon reaching the age of fifty-seven (57) years, and if such member completed twenty (20) years of service prior to termination of his employment, he shall be eligible to receive a retirement allowance upon reaching the age of fifty-two (52) years. Such person shall file with the Board a written application, stating the date when he wishes the payment of his retirement allowance to commence, at least thirty (30) days prior to said date. He shall thereupon be awarded a retirement allowance as provided for members in Section 4.36.210, and shall be eligible to elect in lieu thereof any of the options provided in Section 4.36.260; provided, that any person leaving the City service prior to qualifying for retirement under subsection A of this section shall not be eligible for the alternative retirement allowance computations provided in subsections D and E of Section 4.36.210, nor shall he be eligible )) to receive any disability retirement allowance under Sections 4.36.230, 4.36.240 and 4.36.250, nor shall his estate or his beneficiaries receive the death benefit provided in Section 4.36.320; provided further, that persons leaving the City service prior to qualifying for retirement under subsection A of Section 4.36.200 shall, if and when eligible to receive a retirement allowance as provided in this subsection, be eligible for the alternative allowance computation provided in subsection F B of Section 4.36.210, based upon his age at the time of commencement of payment of such member's retirement allowance, and in the event any such former employee dies before commencement of his retirement allowance pursuant to this subsection, the provisions of Section 4.36.270 B shall be applicable to such person's spouse or domestic partner, if named as beneficiary, and if there is no surviving spouse or domestic partner, the provisions of Section 4.36.270 C shall be applicable to such person's child or children under the age of eighteen (18) years, if named as beneficiary.

C. Any former employee who prior to March 1, 1977, discontinued his City service to accept other public employment and who, because of such subsequent public employment, was permitted to leave his contributions in the retirement fund, shall be eligible to receive a retirement allowance upon reaching the age of sixty-five (65) years; provided, that if such former employee completed five (5) years of City service, he shall be eligible to receive a retirement allowance upon reaching the age of sixty-two (62) years, and if such former employee completed ten (10) years of City service, he shall be eligible to receive a retirement allowance upon reaching the age of fifty-seven (57) years; and if such former employee completed twenty (20) years of City service, he shall be eligible to receive a retirement allowance upon reaching the age of fifty-two (52) years. Such person shall file with the Board a written application, stating the date when he wishes the payment of his retirement allowance to commence, at least thirty (30) days prior to said date. He shall thereupon be awarded a retirement allowance as provided for members in Section 4.36.210, and shall be eligible to elect in lieu thereof any of the options provided in Section 4.36.260; provided, that any former employee to whom this subsection is applicable shall not be eligible for the alternative services allowance computation provided in subsections D and E of Section 4.36.210, nor shall he be eligible )) to receive any disability retirement allowance under Sections 4.36.230, 4.36.240 and 4.36.250, nor shall his estate or his beneficiaries receive the death benefit provided in Section 4.36.320; provided further, that such former employees shall, if and when eligible to receive a retirement allowance as provided in this subsection, be eligible for the alternative allowance computation provided in subsection F B of Section 4.36.210, based on his or her age at the time of commencement of payment of such member's retirement allowance, and, in the event any such person dies before commencement of his retirement allowance pursuant to this subsection, the provisions of Section 4.36.270 B shall be applicable to such person's spouse or domestic partner, if named as beneficiary, and if there is no surviving spouse or domestic partner, the provisions of Section 4.36.270 C shall be applicable to such person's child or children under the age of eighteen (18) years, if named as beneficiary.

Section 4. Section 4.36.210 of the Seattle Municipal Code is amended as follows:

4.36.210 Retirement allowances designated.

A. A member, upon retirement from service, shall receive a retirement allowance subject to the provisions of subsection B of this section, which shall consist of:

1. An annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

2. A pension purchased by the contributions of the City, equal to the annuity purchased by the accumulated normal contributions of the member.

3. For any member having credit for prior service, an additional pension purchased by the contributions of the City equal to one and one-third (11/3) percent of the final compensation multiplied by the number of years of prior service credited to the member, if total prior service credit at such rate shall amount to sixteen and two-thirds (162/3) percent or more of final compensation; if such total prior service credit shall not equal sixteen and twothirds (162/3) percent of final compensation such additional pension shall be increased by one-third (1/3) of one (1) percent of final compensation, multiplied by the number of years of prior service credited to the member for the period between July 1, 1919, and July 1, 1929, but such prior service credit for the member shall not exceed a total of sixteen and two-thirds (162/3) percent of final compensation; provided, further, that if a member shall retire before attaining the age of sixty-two (62) years the total additional pension computed as above shall be reduced by the following percentages:

At age 61 6.48

At age 60 12.48

At age 59 18.02

At age 58 23.12

At age 57 27.85

At age 56 32.12

At age 55 36.18

At age 54 39.92

At age 53 43.38

At age 52 46.52

At age 51 49.52

At age 50 52.30

Appropriate reductions shall be made in case of retirement, under age fifty (50) consistent with the above schedule.

B. If at the time of retirement the basic pension, as defined herein, is in excess of sixty (60) percent of final compensation then the retirement allowance of the member shall be limited to sixty (60) percent of final compensation, allowing full credit for prior service as provided in this chapter and applying accumulated normal contributions of the member and of the City in equal amounts to make up the sixty (60) percent of final compensation. Any residue of the accumulated normal contributions of the member over the amount so applied shall be considered as accumulated additional contributions and may be subject to such rules as the Board may have adopted governing the same. Any residue of the accumulated contributions of the City over the amount so applied shall remain in the retirement fund to be applied to the City's obligations to the fund.

All retirement allowances shall be limited to sixty (60) percent of final compensation except that increases in retirement allowances after retirement may be received without limitation; and further, that where an allowance is One Hundred Ten Dollars ($110) per month or less, the sixty (60) percent of final compensation limit shall not apply.

C. ))The monthly benefits of all members retired for service or disability prior to January 1, 1974, and the monthly benefits payable to any person as the result of the death of any member who was retired for service or disability prior to January 1, 1974, shall be increased as of January 1, 1975, by the percentage indicated in the following table opposite the year of retirement of the member upon whose service such benefits are based:

Percentage increase of monthly

benefit payable immediately

Year of retirement prior to January 1, 1975

1973 1%

1972 2

1971 3

1970 5

1969 7

1968 9

1967 11

1966 13

1965 15

1964 17

1963 19

1962 21

1961 23

1960 25

1959 27

1958 29

1957 31

1956 33

1955 35

1954 37

1953 39

1952 41

1951 43

1950 45

1949 47

1948 49

1947 51

1946 53

1945 55

1944 57

1943 59

1942 61

1941 63

1940 65

1939 67

1938 69

1937 71

1936 73

1935 75

1934 77

1933 79

1932 81

1931 83

1930 85

1929 87;

Provided, that the increases herein shall not be applicable to persons receiving benefits as the result of the death of a member who elected "Option B" as provided in Section 4.36.260. The increases provided herein shall be paid from available retirement system funds or from contributions of the City. Nothing in this subsection shall affect the amount of any bonus dividend declared pursuant to Section 4.36.150, nor shall any such bonus dividend be considered as a part of monthly benefits for the purpose of computing the percentage increases authorized in this subsection.

D. For members retiring for service subsequent to January 1, 1951, there is established the following scale of minimum retirement allowances, subject to subsection G of this section and subject to the member being sixty (60) years of age or over and having at least ten (10) years of creditable service. The amounts shown in the scale shall be subject to pro rata adjustments for service and/or age but for half-year fractions only.

LENGTH OF SERVICE IN YEARS

Attained

Age 10 11 12 13 14

65 $60 $60 $60 $60 $60

64 56 58 60 60 60

63 47 50 54 58 60

62 43 45 47 49 53

61 38 40 43 47 49

60 37 39 41 44 47

LENGTH OF SERVICE IN YEARS

Attained

Age 15 16 17 18 19 20

65 $60 $60 $63 $66 $69 $73

64 60 60 61 64 67 71

63 60 60 60 62 65 69

62 56 58 59 61 63 67

61 53 56 58 59 62 65

60 50 52 55 57 60 63

The pension payable over and above the basic pension shall be purchased by contributions of the City.

E. For members retiring for service subsequent to January 1, 1953, there is established the following "dollar" scale which may be used in fixing the amount of a service retirement allowance but when used the allowance indicated shall not be in excess of One Hundred Ten Dollars ($110) per month which shall be subject to subsection G and shall not be subject to the limitation of sixty (60) percent of final compensation except when such final compensation is more than Two Hundred Dollars ($200) per month. The pension payable over and above the basic pension shall be purchased by contributions of the City. For Each Year of Creditable Service

$3.65 for each year at age sixty-five (65) or over

3.55 for each year at age 64

3.45 for each year at age 63

3.35 for each year at age 62

3.25 for each year at age 61

3.15 for each year at age 60

F. ))For members retiring for service after December 31, 1974, there is established )) t

B. The "percentage" scale in Table 4.36.210 F B which may be used in fixing the amount of a service retirement allowance, to be computed by multiplying the number of years of creditable service by the indicated percentage of final compensation; provided that such scale may also be used in determining benefits of surviving spouses and domestic partners of employees receiving disability retirement benefits under Section 4.36.230 E but shall not add more than One Hundred Thirty Dollars ($130) per month to the basic pension upon which such surviving spouses' benefits are based; provided, further, that such scale may also be used in determining benefits payable under Section 4.36.270 B to the surviving spouse and domestic partner of any member who was at least forty-eight (48) years of age at the time of such member's death. Use of this scale is subject to subsection G of this section and to the limitation of that the retirement allowance of a member shall not exceed sixty (60) percent of the member's final compensation except where final compensation is less than Two Hundred Dollars ($200) per month, in which case the retirement allowances may not exceed One Hundred Ten Dollars ($110) per month. The pension retirement allowance payable over and above the basic pension shall be purchased by contributions of the City. The application of the scales herein established and in subsections D and E of this section ))shall be at the option of the members.

G. Any member who has heretofore elected or who may hereafter elect to receive one of the options provided for in Section 4.36.260 and whose retirement allowance will be increased by the foregoing provisions, shall receive only the proper actuarial equivalent of such increase.

H. ))The alternative retirement allowance computations set forth in subsections D and E of this section shall be available only to members who remain in City service until they attain age sixty (60) and shall not be available to members who retire or are otherwise separated from City service prior to age sixty (60). Except as provided in Section 4.36.200 C and D, no person leaving the service of the City prior to attaining the age of forty-eight (48) shall be eligible for the alternative retirement allowance computation provided in Section 4.36.210 F; provided, that the surviving spouse or domestic partner of an employee retired for disability shall be entitled to the benefits under Section 4.36.230 E based upon the alternative retirement allowance computation provided in accordance with subsection F of this section if such employee attained the age of forty-eight (48) prior to death.

I. The "final compensation" of a member who retires from a temporary, interim, provisional, intermittent or part-time position is determined by multiplying the member's average hourly rate during his or her highest consecutive four thousand one hundred seventy-six (4,176) hours of service by two thousand eighty-eight (2,088) hours.

Section 5. The table for Section 4.36.210F shall be renamed the TABLE FOR SECTION 4.36.210B.

Section 6. Section 4.36.350 of the Seattle Municipal Code is repealed.

Section 7. Section 4.36.400 of the Seattle Municipal Code is amended as follows:

4.36.400 Election to participate in RCW Chapter 41.54.

As authorized by RCW 41.54.061, the City irrevocably elects to participate in the portability of public retirement systems as contemplated by RCW Chapter 41.54, and to pay for the additional cost it may incur as a result of the benefits provided.

The eligibility of members for the portability of public retirements benefits, the benefits available thereunder, the limitations (including RCW 41.54.080), and the procedures shall be as set out in RCW Chapter 41.54. A member may aggregate service credit in two (2) or more retirement systems for the purpose of determining the percentage factor to be used in calculating a service retirement allowance pursuant to SMC Section 4.36.210 F B.

Section 8. The repeal of any provision of Chapter 4.36 of the Seattle Municipal Code by this ordinance shall not decrease the benefits of any member of the retirement system who is retired on the effective date of this ordinance, or any beneficiary thereof, and shall not affect the rights of any such member or beneficiary to receive payments and benefits pursuant to the provisions of this chapter, in the amount, and in the manner provided by said laws which are hereby repealed and as if said laws had not been repealed.

Section 9. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and confirmed.

Section 10. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 2001, and signed by me in open session in authentication of its passage this _____ day of _________________, 2001.

_____________________________________

President _______ of the City Council

Approved by me this _____ day of _________________, 2001.

___________________________________________

Mayor

Filed by me this _____ day of ____________________, 2001.

___________________________________________

City Clerk

(Seal)

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