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HomeMy WebLinkAboutCITY COUNCIL OF AUGUSTA RETIREMENT SYSTEM (1949 RETIREMENT FOR CITY COUNCIL OF AUGUSTA)CiTY COUNCIL OF AUGUST/Pk AUGUSTA RETIREMENT SYSTEM NO. 247 (Senate Bill No. 130) March 1, 1949 An Act to provide a pension system for retirement of certain future employees of the City of Augusta; to establish a general retirement fund and for the administration of such general retirement fund; to provide for contributions to be made to the gener- al retirement fund by said city employees; to specify certain rules for retirement on ' pension for said future city employees including firemen and policemen; to provide for the amount of retirement allowances of such employees and the method of payment thereof; to provide for the withdrawal of contributions by employees; to repeal all Acts in conflict herewith except as her provisions relate to the pensions of persons in the service of the city on the effective date of this Act; and for other purposes. Be it enacted by the General Assembly of Georgia and it is hereby enacted by authority of the same: Section 1. Retirement allowances for present city employees. All persons legally receiving or entitled to at the effective date of this Act retirement pay or pensions or any other sum in accordance with any law then in Force shall continue to receive such retirement pay or pensions or sums in accordance with the provisions of the respective laws. All persons in the service of the city at the effective date of this Act, then actually contributing to the firemen's pensions fund, the policemen's pension fund or the city employees' pension fund, or who may be re- employed as provided in the Augusta Employees Pension Fund Act of 1945, pages 813 -829, inclusive, or the pro- visions of any now existing law relating to firemen or policemen, shall continue to have the rights and duties in respect of all pensions, retirement and disability benefits, and all other benefits and rights as previously existing or hereafter existing under the respective Act under which he made a contribution, provided by the respective Acts relating to such funds then in force. Section Ii. Retirement system for future employees. There are hereby repealed except as their provisions relate to al l persons included in Section 1 of this Act: An Act approved February 73, 1945, entitled "An Act to amend the charter of the City of Augusta, incorporated as the City Council of Augusto by an Act approved January 31, 1798 (Georgia Laws 1798), as amended by an Act approved August 1975 (Georgia Laws 1975, pages 867 -872, inclusive), designated as "Augusta Firemen's Pension At of 1973 amended," as amended by an Act approved March 3, 1933, (Georgia Laws 1933, pages 866 -868) designated as "Augusta Charter Amendments," and as amended by the various other amendatory Acts thereof, so as to strike and repeal from Section 4 of the Act approved August 17, 1975 (Georgia Laws 1975, pages 867 -877), the following words: "or that may hereafter be employed by the Fire Department of the City of Augusta "; to require that three per cent (3 %) of the salary, wage or remunera- tion of each fireman and policeman that is employed by the City of Augusta after the effective date of this Act be deducted From his pay and paid into the firemen's and policemen's pension funds; to require said city to pay into said fund as part there- of, a sum equal to the amount deducted from said firemen's and policemen's salaries, wages and remunerations; to provide authority to The City Council of Augusta to increase or reduce from time to time such withholdings from firemen's and policemen's salaries, wages or remunerations that are employed after the effective date of this Act and to increase or reduce from time to time the sum to be paid by said City Council of Augusta in matching said withholdings from such firemen's and policemen's salaries, wages or remunerations; to specifically exclude from the provisions of Section 3 of this Act firemen and policemen of the City of Augusta regularly employed before the effective date of this Act; to provide for the Commissioner of Public Safety of the City of Augusta to be retired under the provisions of said charter as amended on one -half (1/2) of his salary, wage or remuneration and emoluments of this office; to repeal all laws in conflict herewith; and for other purposes, (Georgia Laws 1945, pages 782 -786); and an Act approved February 28, 1945, entitled "An Act to amend the charter of the City of Augusta, incorporated as The City Council of Augusta, by an Act approved January 31, 1798 (Georgia Laws 1798) and the several amendatory Acts thereof, as amended by an Act as appears in Georgia Laws 1943, pages 1256 to 1258, inclusive, designated "Auguste Charter Amendments ", and as amended by an Act appearing in Georgia Laws, 1943, pages 1259 to 1263, inclusive, designated "Augusta Officers and Employees—Furlough"; to amend, ratify, and confirm said charter and the amendments thereto approved December 31, 1937, designated as "Augusta Officers and Employees Tenure ", appearing in Georgia Laws extra - session 1937 -38, pages 938 to 943, inclusive, as amended by an Act approved February 19, 1941, appearing in Acts of General Assembly of Georgia, 1941 (Ga. Laws 1941, pages 1071- 1072), and designated "Augusta City Attorney "; so as to provide a permanent city employee pen- sion fund for permanent employees of the City of Augusta; define permanent employees, totally and permanently disabled and other terms; require that three (3%) per cent of the salory, wage or remuneration of each employee of said city be deducted from his pay check and paid into said fund as part thereof; require said city, each three months, to pay into said fund as part thereof, a sum equal to the amount deducted from its employees' salaries, wages or remuneration; to provide authority to the CIty Council of Augusta to increase or reduce from time to time such employees' salary, wage or remuneration and to increase or reduce from time to time the sum to be paid by said City Council of Augusta in matching said withholdings from such employees' salary, wage or remuneration; exclude from provisions of this Act certain officers and employees of said city; require said city and certain employees and officials thereof to perform duties and obligations in connection with said fund; provide for payments to a permanent employee from said funds; a retirement pension when his total service amounts of twenty -five (25) years; a retirement pension upon his reaching 65; a retirement pension when after twenty years' service he is separated therefrom; a total permanent disability pension for total and permanent disability in- curred while in discharge of his duties; a temporary disability pension; to provide for a refund of 50% of deductions from said salary, wage or remuneration in event of voluntary separation from service or separation from service by discharge, less deduc- tions provided; to provide a refund upon separation from service by death of 100% of deductions from said salary, wage or remuneration, less deductions; to further pro- vide all retirement pensions and total disability pensions shall increase in proportion to salary, wages or remunerations held; to declare the City Attorney a permanent employee of the City Council of Augusta; to further provide punishment under the criminal law for persons who violate the terms of this Act; and for other Purposes; and to repeal the following Acts amending the Charter of the City of Augusta to wits "f t Act appearing in Georgia Laws of 1923, pages 443 to 445, inclusive, de- signated, 'Augusta City of; payment of retired Employees'; and an Act appearing in Georgia Laws of 1924, pages 450 to 451, amending said Act of 1923, desig- nated 'Augusta, Pension of Retired Employees, additional increase of'; and an Act appearing in Georgia Laws of 1933, pages 868 and 869, designated 'Augusta; Retirement of Employees'; provided specifically, however, that the repeal of the a- bove designated Acts shall in no way affect the Augusta Firemen's pension fund or the Augusta Policemen's pension fund and the several laws and amendments relating to said funds or either of them; nor any way affect any pension from the City Council of Augusta now being paid or due or that becomes due before the effective date of this Act by reason of any existing ordinances or Act; and to repeal all laws and parts of laws in conflict with this Act; and for other purposes." (Georgia Laws 1945, pages 813 -829). There are excluded from the provisions of this Act the employees of the University Hospital, employees of the Sinking Fund Commission and officers elected by vote of the electorate. All other persons entering the service of the city as regular employees, as distin- guished from temporary or casual employees, Including employees of the police and fire departments whose age at the time of their employment does not exceed thirty -five years, and hereinafter referred to as future employees, shall contribute to and partici- pate in the benefits of a pension fund to be known as the general retirement fund. Section III. Administration of general retirement fund. The general retirement fund shall be kept In a separate account and a separate permanent record shall be kept by the Comptroller of such fund and of the contributions of each employee thereto. No warrant shall be drawn upon such fund except as provided in this Act. The Comptroller shall be the custodian of such fund and shall deposit the same in a hank or banks, and, pursuant to the direction of the pension fund investment com- mittee, which committee shall consist of the chief executive officer of the city, the comptroller and the chairman of the finance committee of the city council of Augus- ta, shall invest and reinvest, from time to time, any portion thereof not immediately needed for the payment of pensions, in securities approved by law for the investment of trust funds; and in addition thereto, in bonds and debentures assumed or guaran- teed by any solvent corporation or institution existing under laws of the United States of America, or any state thereof, provided such bonds or debentures are rated at the time of their purchase, by a nationally recognized securities rating service, as AAA (Aaa), AA (Aa), or A (a), or in lieu thereof, provided such bonds or deben- tures are the type in which domestic life insurance companies are permitted to in- vest under the provisions of section 56 -1016 of the Code of Georgia of 1933, as amended by art Act approved March 8, 1960 (Ga . L. 1960, pp. 289, 479). The a- mount of the pension fund which may be invested in the bonds and debentures of any one corporation may not exceed l0% of the total amount of such fund then outstand- ing. withdrawals from the fund shall be made only by vouchers signed by the Comp- troller or deputy Comptroller and countersigned by the chief executive of the city as designated by the City Council of Augusta. There shall be maintained in the office of the Comptroller a record of the age, length of service and contributions of each future employee. All applications for retirement or the return of contribu- tions shall be made in writing on forms prescribed by the Comptroller and filed in his office. In the case of an application for retirement for disability the chief exe- cutive of the city as designated by the City Council of Augusta shall immediately designate a physician to examine the applicant and no such retirement shall be allowed unless the physician so appointed files with the chief executive of the thy as designated by the City Council of Augusta his affidavit that he has examined the applicant and found him totally and permanently incapable of pursuing any gainful occupation; pro- vided that the applicant if aggrieved by the decision of the city's physician may de- signate a physician on his own part who together with the city's physician shall desig- nate a third and the decision of the majority of said three physicians shall be final. All applications for retirement shall be acted upon by the pension committee consisting of the chief executive of the city as designated by the City Council of Augusta, the Chair- man of the Finance and Appropriations Committee and the Comptroller. The last named shall be the secretary of the Committee and shall keep a careful record of all its pro- ceedings. Upon certification by the secretary that a majority of the Pension Commit- tee have determined that the applicant is entitled to retirement on a pension of a given amount the Comptroller shall include his name on the pension list and shall draw month- ly vouchers for the payment of his pension. The City Council may adopt further reason- able rules and regulations for the purpose of carrying out the provisions of this Act. Section IV. Contributions. There shall be deducted by the Comptroller from the salary, wages or remuneration due each future employee, hired after June 30, 1980, at each pay period, a sum equal to 8% thereof, which deduction shall be paid at once into the general retirement fund. The City shall contribute annually to the said fund sums sufficient on sound actuarial principles, with the contributions of their respective future employees, to provide future pensions for such future employees based on services ren- dered by them. The Comptroller shall certify to the Chief Executive of the City as designated by the City Council of Augusta the sums necessary to be appropriated each year upon the basis of the actuarial survey and valuation hereinafter provided. The sums so appropriated shall be paid into the general retirement Fund at such times as the Comptroller shall require. It shall be the duty of the Chief Executive and the City Council of Augusta to cause to be made within six months after the effective date of this an actuarial survey and valuation of each of the several pension systems of the City. Section V. Retirement. Any employee contributing to the general retirement fund shall be entitled to retire on a pension to be paid from said general retirement fund as follows and not otherwise: (i) On his own motion upon attaining the age of fifty - five years if a fireman or policeman, or sixty years If employed in any other capacity, provided such employee has had at least twenty -five years of continuous service with the city. (2) Automatically upon attaining the age of sixty years if a policeman or fireman, or seventy years if employed in any other capacity, provided such employee has had at least twenty - five years of continuous service with the city. (3) Upon becoming, irrespective of the duration of his employment, totally and permanently disabled, as the result of illness or injury incurred in the performance of duty and not caused by his own willful misconduct or intoxication. (4) Upon becoming, after ten years of service, totally and permanently disabled, as a result of illness or injury from any cause arising, provided that no employee shall be entitled to a pension on account of disability caused by his own willful misconduct or intoxication. (5) (A) The Continuance of any disability shall be inquired into by medical examination, as provided in Section III of this Act, upon the Application of any interested party and for good cause shown. (B) 'Totally and permanently disabled' is hereby defined, for the purposes of the foregoing Paragraphs 3 and 4 of this Section, to mean not able on account of the disability received to discharge adequately his employment duties. (C) In the event of a finding of discontinuance of disability by medical examination, city council is hereby authorized, by appropriate ordinance or resolution, to terminate any pension payments payable by reason of a qualifying disability under this Act, reemploy any rehabilitated pensioner, continue pension payments in lieu of reinstatement, or make such other disposition of the pension claim as may be necessary and proper. (6) On his own motion an employee can make application for early retire- ment at any time within five years of his normal retirement date as set forth in subparagraph (I) hereof provided he has completed at least 20 years of continu- ous service with the City. In such event, the employee's retirement benefit would be calculated in the same manner as for normal retirement as provided in Section 7 bf this Act reflecting the average annual rate of pay and continuous service as of the date of termination. IF the employee elects to have his pension commence immediately, the payment so calculated shall be reduced by one -half of one percent for each month that his age at the time of early retirement is less than the normal retirement age as provided in subparagraph (I) of section 5 here- of. (7) Upon becoming, after twenty years of service, permanently separated involuntarily by action of the City without any fault on the employee's part, provided that such provision would not apply if such employee is offered an- other position with the City of Augusta with no reduction in salary. Section Vi. Continuity of service. Periods of absence of not more than ninety days in any one calendar year or absence in the armed forces of the United States in time of war shall not be considered as breaking continuity of service. Other absences of more than ninety days by reason of leave of absence granted by the City Council or by reason of disability established by the evidence of the attending physician and /or a physician appointed by the chief executive of the city as designated by the City Council of Augusta shall not be .considered as breaking continuity of service but shall not be counted in determining the amount of the pension. Section VII. Amount of retirement allowance. After retirement in accordance with the provisions of this Act a future employee shall receive during his lifetime a pension, payable monthly, at an annual rate amounting to one and two - thirds per cent of his average annual rate of pay for the last five years of his service, multiplied by the number of years of.such service, provided that a pension for disability incurred in the performance of duty shall not be less than fifty per cent of such average annual rate of pay, and provided further that any amount or amounts received by way of a workmen's compensation award, excluding that portion of the award specifically covering medical, nursing and hospital expenses, shall be deducted from the amount of any pension arising out of such disability; provided that any such employee may, subject to such rules and regulations as the city council may from time to time establish, elect to receive a pension for his IiFetime, payable monthly, at an annual rate amounting to 2 % of his average annual rate of pay for the last five years of his service, multiplied by the number of years of such service, the annual amount thereof, however, not to exceed 60% of the said average annual rate of pay. (1) On the December 31 coinciding with or next following the date of retire- ment and commencement of retirement payments to a retired employee, the United States Consumer Price Index For the year ending on that December 31 shall be posted to the retiree's record. On each subsequent December 31 thereafter, while the employee is receiving his monthly retirement payment, the payment shall be adjusted on April 1st of each year by multiplying the amount of the monthly pay- ment received during the year just ending by the Index Ratio. The Index Ratio is attained by dividing the Consumer Price Index for the current year extending on the current December 31 by the Consumer Price Index for the year immediately preceding the current year. If the Index Ratio is equal to 1.02 or more or is equal to .95 or less, each retiree's monthly payment shall be increased or decreased by the amount of the Index Ratio for that year. If the Index Ratio is between .95 and 1.02, then the retirement payments shall not be increased for the forthcoming year. In this event, the Consumer Price index for the year ending on the current December 31 shall be replaced by the Consumer Price Index For the year ending on December 31 when the benefits were last adjusted. This particular set of mechanics will avoid the necessity of increasing the benefits in any year by less than 2% upwards or by less than 5% downwards but will allow for such minor variations in the Consumer Price Index to be accumulated forward for recognition in subsequent years. How- ever, no pension benefits shall be reduced below the original amount granted. The aforesaid adjustments shall be payable to all employees who have retired prior to the date of this Act as well as those who retire in the future, and the Consumer Price Index figure shall be posted initially as of December 31, 1971. Section Vill. Alternative form of retirement allowance. Any future employee may, subject to such rules and regulations as the City Council may from time to time establish, elect to receive a reduced retirement allowance with the pro- vision that such reduced retirement allowance, or such part thereof as may be specified by such person in his notice of election, shall be continued after his death to his spouse named in such election for so long as his spouse lives. The reduced retirement allowance shall be in such amount as shall be determined by the pension committee to be the actuarial equivalent of the retirement allowance that would have been payable had not the election been made. Unless the member files a written notice of his election of this option with the Comptroller at least three years before he becomes eligible for retirement he shall be required to pass a satisfactory physical examination at the time of making such election. Section VIII.A. That the widow of an employee who is killed in line of duty, as hereinafter defined, may elect, in lieu of receiving a refund of pension contri- butions under the provisions of section IX of said Act, approved February 25, 1949 (Ga. L. 1949, p. 1070), to receive a pension computed at 25% of said em- ployee's monthly salary or wages at the time of his death, which shall be payable monthly to the said widow, until her death or remarriage, or in the event of her death leaving a child or children of the said employee surviving her, who have not reached their 18th birthday, said pension shall be continued to be paid for the benefit of such child or children as long as they remain unmarried and until they reach their 18th birthday; and if there be no widow living at the time of the death of such employee killed as herein defined, but there be a child or children of said employee living as of said date who have not reached their 18th birthday, the for the benefit of such child or children as long as they remain unmarried and until they reach their 18th birthday. As used herein, "kill in Tine of duty" shall meon killed while actively performing the prescribed duties of the employee's job and not resulting from any misconduct or negligence of such employee; provided, how- ever, that no payments shall be made under the provisions of this section until such date as any monthly benefits provided under the Workmen's Compensation Laws of Georgia shall have ceased. Section IX. Withdrawal of contributions. Any future employee leaving the em- ployment of the city before becoming eligible for retirement may withdraw on re- quest to the Comptroller the total of all contributions made by him, without in- terest, provided if no such request is made within four years such contribution shall revert to the fund. In case of the death of a future employee before retire- ment, or after retirement without having made the election provided in the pre- ceding section, or in case bf the death of the survivor of a member who has made such election and his spouse after his retirement, his contributions to the fund, without interest, less any retirement allowance paid to him or his spouse, shall be paid from the fund on the order of the Pension Commission to the beneficiary or beneficiaries, if any, named by such member. If no named beneficiaries survive the member, or the survivor of the member and his spouse, payment shall be made to the executors or administrators of such member or his spouse, as the case may be. .,(i) Provided further that any employee who terminates his employment with the City after having completed at least 15 years of continuous service and who has attained the age_o at least 45, shall have a right to a vested_ ension in lieu of a refund of his contributions, payable at his otherwise normal retirement age as provided in sub- paragraph (I) of section 5 of this Act without reduction or at an earlier retirement age with a reduction as provided in subparagraph (6) of section 5 of this Act. The vested percentage of his accrued benefit at the time of such termination will be equal to 50% if he had completed 15 years of service plus an additional 10% of each year of contin- uous service in excess of 15 years up to a maximum vested percentage of 100% of his accrued benefits from the completion of 20 or more years of continuous service. The accrued benefit is calulated in the same manner as for normal retirement but reflecting the employee's length of service and average annual rate of pay determined as of the date of such termination. Section X. Assignment prohibited. Any assignment by a member or beneficiary of any allowance or benefit payable under the terms of this chapter shall be null and void. Each such allowance and benefit shall be for the support of the member or beneficiary entitled thereto and shall be exempt from the claims of creditors of such member and beneficiary; provided, if the provisions of this section are contrary to the laws governing a particular set of circumstances, as to that set of circumstances, any allowance or benefit payable hereunder shall be exempt to the maximum extent permitted by law, Section XI. Effect of extension of the Federal Social Security Act. if and when the terms of the Federal Social Security Act are extended to include municipal employees the City Council shall have power to reduce pro tanto the contributions of future employees and the amounts of the pensions to which that' may become entitled hereunder, provided that no reduction shall be made in amount of the pension paid to any such future employee already retired at the date of said Social Security Act is so extended. Section X1I, If any provisions of this Act, or the applicability thereof to any person or circumstance, is held invalid, the remainder of this Act and the applicabil- ity thereof and of such provision to other persons or circumstances shall not be affected thereby. Section XIII, Effective date. That the first day of the first month after the approval of this Act by the Governor shall be the "effective date" of this date. Section X IV. Repeal. That all laws and parts of laws in conflict with the provisions of this Act, be, and the same are hereby repealed. Section XV. Publication of Notice of Intention to Apply for Passage of Local Legislation. That there is attached to and made a part hereof, a copy of a notice certified by the publisher of the Augusta Chronicle, the newspaper in which the sheriff's advertisement for the locality affected by this Act are published, to the effect that notice of intention to apply for the passage of this Act was published once a week for three weeks during a period of sixty days immediately preceding its introduction into the General Assembly, to wit, on December 31, 1948, January 5, 1949 and January 10, 1949, which reads as follows: State of Georgia, Richmond County. Affidavit of Publisher of Augusta Chronicle. Personally appeared before me, an officer duly authorized to administer oaths, William S. Morris, who being duly sworn deposes and says that he is publisher of the Augusta Chronicle, the newspaper in which sheriff's advertisements for Rich- mond County, Georgia were published during December, 1948 and January 1949, and that the following notice of intention to apply for local legislation was pub- lished in said newspaper once a week for three weeks during a period of sixty days prior to January 31, 1949, to wit, on December 31, 1948, January 5, 1949 and January 10, 1949: "Notice is hereby given of the intention of the undersigned to apply at the next session of the general assembly of Georgia convening on January 10, 1949, for the passage of a Bill to be entitled: An Act to provide a pension system for retirement of future employees of the City of Augusta; to establish a general retirement fund and for the adminis- tration of such general retirement fund; to provide for contributions to be made to general retirement fund by all city employees; to specify certain rules for retirement on pension for all future city employees including firemen and policemen; to provide for the amount of retirement allowance of such employees and the method of payment thereof; to provide for the withdrawal of contributions by employees; to repeal all Acts in conflict herewith except as their provisions relate to the pensions of persons in the service of the city on effective date of this Act; and for other purposes. Henry P. Eve, State Senator, 18th District of Georgia Approved February 25, 1949. John C. Bell, Rodney S. Cohen, W.R. Coleman, Members of House of Representatives. Sworn to and subscribed before me this 29th day of January, 1949: A. M. LeRoy, Notary Public Richmond County, Georgia.