An ordinance amending Title 3 of the Metropolitan Code of Laws relative to employee benefits.

Whereas, the Metropolitan Employee Benefit Board has approved certain improvements to the Metropolitan Employee Benefit System; and

Whereas, the most recent budget proposed by the Mayor and adopted as modified by the Metropolitan Council includes funding for certain improvements to the Metropolitan Employee Benefit System; and

Whereas, the proposed improvements will assist in the recruitment of qualified employees by making the Metropolitan Employee Benefit System more competitive; and

Whereas, the proposed improvements will improve the administration of the Metropolitan Employee Benefit System; and

Whereas the proposed improvements will make the Metropolitan Employee Benefit System more equitable for existing and future employees.

Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County, that:

Section 1. Section 3.32.040 is hereby deleted in its entirety and the following language substituted:

Vested pension after five years of credited employee service.

Any member who is a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least five years of service and before he is eligible to receive a benefit under either Section 3.32.020 or 3.32.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of age sixty-five, provided he is then living, computed and payable in accordance with the provisions in Section 3.32.020.

Any member who was not a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least ten years of service and before he is eligible to receive a benefit under either Section 3.32.020 or 3.32.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of age sixty-five, provided he is then living, computed and payable in accordance with the provisions in Section 3.32.020.

Section 2. Section 3.33.040 is hereby deleted in its entirety and the following language substituted:

Vested pension after five years of credited employee service.

Any member who is a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least five years of service and before he is eligible to receive a benefit under either Section 3.33.020 or 3.33.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of unreduced retirement age, provided he is then living, computed and payable in accordance with the provisions in Section 3.33.020.

Any member who was not a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least ten years of service and before he is eligible to receive a benefit under either Section 3.33.020 or 3.33.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of unreduced retirement age, provided he is then living, computed and payable in accordance with the provisions in Section 3.33.020.

Section 3. Section 3.36.040 is hereby deleted in its entirety and the following language substituted:

Vested pension after five years of credited employee service.

Any member who is a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least five years of service and before he is eligible to receive a benefit under either Section 3.36.020 or 3.36.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of age sixty-two, provided he is then living, computed and payable in accordance with the provisions in Section 3.36.020.

Any member who was not a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least ten years of service and before he is eligible to receive a benefit under either Section 3.36.020 or 3.36.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of age sixty-two, provided he is then living, computed and payable in accordance with the provisions in Section 3.36.020.

Section 4. Section 3.37.040 is hereby deleted in its entirety and the following language substituted:

Vested pension after five years of credited employee service.

Any member who is a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least five years of service and before he is eligible to receive a benefit under either Section 3.37.020 or 3.37.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of unreduced retirement age, provided he is then living, computed and payable in accordance with the provisions in Section 3.37.020.

Any member who was not a metropolitan employee on or after October 1, 2001 and whose termination occurs after he has completed at least ten years of service and before he is eligible to receive a benefit under either Section 3.37.020 or 3.37.030 shall be eligible to leave any employee contributions in the system and shall be eligible to receive a monthly deferred pension which shall commence on the first day of the month following his attainment of unreduced retirement age, provided he is then living, computed and payable in accordance with the provisions in Section 3.37.020.

Section 5. Section 3.08.010(1) is hereby deleted in its entirety and the following language substituted:

1. "Average earnings," when calculating pensions under Chapters 3.32, 3.33, 3.36 and 3.37, means an arithmetic monthly average of a metropolitan employee's earnings during the period which contains the sixty consecutive months of credited service which produces the highest average. The sixty consecutive months shall exclude the month immediately proceeding the month the pension becomes effective. Periods during which the member is not credited with credited service will be disregarded for the purposes of determining whether months of credited service are consecutive. If a member has not been employed for a period which contains sixty months, then his average earnings will be based on his earnings during all months of employment with the employer for which credited service was earned. Notwithstanding the foregoing, credited service for periods of disability under Chapters 3.28 or 3.29 shall be disregarded for purposes of this section.

Section 6. The first paragraph of Section 3.40.010(C) is hereby deleted and the following language substituted:

C. If a member's service with Metro, or a predecessor government, terminates and the member is subsequently rehired, the member shall receive service credit for his prior period of service after being regularly employed continuously for one year. This subsection shall apply to all members who are metropolitan employees on or after October 1, 2001, regardless of the date of termination or rehire. Members who are not metropolitan employees on or after October 1, 2001 shall only receive prior service credit if application for such credit was properly made under prior ordinances.

Section 7. A new Section 3.40.045 is hereby created as follows:

Death before retirement benefits commence - dependent child benefit.

If a member who is vested in the pension system dies leaving no surviving spouse and no benefit is payable under any other provision of the Code and the member is survived by one or more dependent children, a benefit under this section shall be payable for the benefit of the member's dependent child or children. Any benefit due under this section shall be distributed per capita among the surviving dependent children so that each shall share equally in the benefits so long as he remains a dependent child.

The amount of the benefit due under this section shall be the amount a surviving spouse the same age as the member would have received, determined in accordance with Option A, as though the member had retired in the month prior to the month of his death or twenty-five percent of the member's average earnings over the last twelve months preceding his death - whichever is greater.

Section 8. This ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored By: Janis Sontany, Howard Gentry, Leo Waters, Tony Derryberry

Amendment No. 1

to

Ordinance No. BL2001-775

Mr. President:

I move to amend Ordinance No. BL2001-775 by amending Section 5 by deleting the following sentence from new definition of "Average earnings":

"The sixty consecutive months shall exclude the month immediately preceeding (sic) the month the pension becomes effective."

Sponsored by: Janis Sontany
Amendment Adopted: September 18, 2001

LEGISLATIVE HISTORY
Introduced:	August 7, 2001
Passed First Reading:	August 7, 2001
Referred to:	Budget & Finance Committee Personnel Committee
Deferred:	August 21, 2001
Amended:	September 18, 2001
Passed Second Reading:	September 18, 2001
Passed Third Reading:	October 2, 2001
Approved:	October 4, 2001
By: