File #: 230440    Version: Name:
Type: Ordinance Status: Passed
File created: 5/11/2023 In control: Council
On agenda: 6/8/2023 Final action: 6/8/2023
Title: Sponsor: Director of the Human Resources Department Amending Chapter 2 of the Code of Ordinances of Kansas City, Missouri, Employees' Retirement System, by repealing Sections 2-1173, 2-1174, 2-1176, 2-1184, 2-1185 and 2-1189 and enacting in lieu thereof sections of like numbers and subject matters to change the required distribution date set by federal law, set reemployment credit criteria and change the time requirement to vest from ten to five years for employees in Tier 2 and change the composition of the Board of Trustees of the Employees' Retirement System Trust in accordance with the collective bargaining agreements between the City and its unions.
Sponsors: Director of Human Resources
Attachments: 1. Ordinance, 2. HR 5 year Vesting Ordinance, 3. 230440com, 4. Ordinance No. 230440 - Pension Plan Update - May 24 2023, 5. Ordinance No. 230440 - Pension Plan Update, 6. 230440 cs to org ord-com, 7. Authenticated Ordinance 230440 C.S.
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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 230440

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Sponsor: Director of the Human Resources Department

Amending Chapter 2 of the Code of Ordinances of Kansas City, Missouri, Employees' Retirement System, by repealing Sections 2-1173, 2-1174, 2-1176, 2-1184, 2-1185 and 2-1189 and enacting in lieu thereof sections of like numbers and subject matters to change the required distribution date set by federal law, set reemployment credit criteria and change the time requirement to vest from ten to five years for employees in Tier 2 and change the composition of the Board of Trustees of the Employees' Retirement System Trust in accordance with the collective bargaining agreements between the City and its unions.

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WHEREAS, the City entered into collective bargaining agreements with International Association of Firefighters Locals 42 and 3808 providing them membership in the Board of Trustees of the Employees' Retirement System; and

WHERAS, the City entered into a collective bargaining agreement with American Federation of State, County and Municipal Employees Local 500 providing them an additional member in the Board of Trustees of the Employees' Retirement System; and

WHEREAS, in 2022 the US Congress passed SECURE 2.0 Act of 2022 that changed the ages for required distributions of the City's pensions;

WHEREAS, on January 31, 2023, the Board of Trustees of the Employees' Retirement System Trust approved changing the vesting requirements for employees in Tier 2; NOW THEREFORE

BE IT ORDAINED BY THE CITY COUNCIL OF KANSAS CITY:

Section 1. That Chapter 2 of the Code of Ordinances of Kansas City, Missouri, Employees' Retirement System be amended by repealing Sections 2-1173, 2-1174, 2-1176, 2-1184, 2-1185 and 2-1189 and enacting in lieu thereof sections of like numbers and subject matters to read as follows.

Sec. 2-1173. Creditable service.

(a) Computation of total amount. Total creditable service o...

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