Ordinance No. 2,7210 90904 -1
is ORDINANCE NO. 2721
AN ORDINANCE AMENDING THE AGREEMENT AND DECLARATION OF
TRUST - -CITY OF BAYTOWN RETIREMENT FUND AND THE RETIRE-
MENT PLAN FOR EMPLOYEES OF THE CITY OF BAYTOWN; PRO-
VIDING FOR THE EXECUTION OF SAID AMENDMENTS; AND PRO-
VIDING FOR THE EFFECTIVE DATE HEREOF.
WHEREAS, the City of Baytown has heretofore established
the Retirement Plan for Employees of the City of Baytown on
March 1, 1973; and
WHEREAS, the City of Baytown has previously entered
into the--- Agreement and Declaration of Trust - -City of Baytown
® Retirement Plan; and
WHEREAS, the City of Baytown desires to amend the Plan
and the Trust; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
.1Ive- L60VVN
Section 1: That the City Council of the City of Baytown
hereby amends the Agreement and Declaration of Trust - -City
of Baytown Retirement Fund, said amendment being described
in Exhibit "A," which is attached hereto and made a part
hereof for all intents and purposes.
Section 2: That the City Council of the City of Baytown
hereby amends the Retirement Plan for Employees of the City
of Baytown, said amendment being described in Exhibit "B,"
which attached hereto and made a part hereof for all intents
and purposes.
Section 3: That the City Council of the City of Baytown
authorizes and directs the Mayor of the City to execute the
amendments contained in Exhibits "A" and "B ".
Section 4: This ordinance shall take effect immediately
from and after its passage.
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® INTRODUCED, READ, and PASSED by the affirmative vote of
the City Council on this 4th day of September, 1979.
ETT 0. HUTTO, Mayor
ATTEST:
EI,EEN -P. HALL, City Clerk
APPROV
® SCOTT BO ND , City Attorney
[i7
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AMENDMENT TO AGREEMENT
Is AND DECLARATION OF TRUST
CITY OF BAYTOWN RETIREMENT FUND
E I
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WHEREAS, the parties hereto have previously entered
into the Agreement and Declaration of Trust - City of Baytown
Retirement Fund (the "Trust "); and
WHEREAS, said parties desire to amend the Trust;
NOW, THEREFORE, the parties hereto agree to amend the
Trust as follows, effective January 1, 1979:
1.. Section 2 of Article II of the Trust shall be
deleted and the following substituted therefor:
"Section 2. General Purpose. The Fund shall be a
trust fund and shall be used for the purpose of provid-
ing retirement benefits under the Plan and under the
Texas Municipal Retirement System, provided, however,
that the use of the Fund to provide retirement benefits
under the Texas Municipal Retirement System shall be
limited according to the provisions of Article XVI of
the Plan. The Fund shall provide the means for financ-
ing the expenses of the Trustees and the establishment,
operation and administration of the Fund, in accordance
with this Trust Agreement, including, but not limited,
to the payment of all reasonable and necessary expenses
for administering the affairs of the Fund, including
but without limitation, the expenses which may be
incurred in connection with the establishment and
maintename of the Fund and the employment of adminis-
trative, legal, expert and actuarial services."
IN WITNESS WHEREOF, the parties hereto have caused this
amendment to the Trust to be approved and executed this
day of , 1979.
THE CITY OF BAYTOWN
By:
Title: .... .......
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Eli
EMMETT O. HUTTO
SABINO MONTEMAYOR
NEEL RICHARDSON
[17
t-1
TRUSTEES, City of Baytown Retirement
Fund
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J. B. LE FEVRE
EDNA P. OLIVER
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AMENDMENT TO THE
RETIREMENT PLAN FOR EMPLOYEES
OF THE CITY OF BAYTOWN
WHEREAS, The City of Baytown has heretofore established
a comprehensive retirement program for the purpose of providing
retirement benefits based on full salary for its eligible
employees; and
WHEREAS, the Retirement Plan for Employees of The City
of Baytown (the "Plan ") was established on March 1, 1973 as
a part of said comprehensive retirement program in order to
make it possible to provide.retirement benefits based on
full salary inasmuch it was not possible at that time to
provide retirement benefits based on full salary under the
Texas Municipal Retirement System (the "TMRS "); and
WHEREAS, it is now possible to provide for retirement
benefits based on full salary under the TMRS; and
® WHEREAS, effective January 1, 1979, The City of Baytown
amended its participation in the TMRS so as to provide for
its eligible employees retirement benefits based on full
salary, on an "updated service credit" basis, under the
TMRS; and
WHEREAS, in consideration of the foregoing, The City of
Baytown desires to amend the Plan;
NOW, THEREFORE, the Plan shall be amended as follows,
effective as of January 1, 1979:
1. Section 3.1 shall be deleted and the following
substituted therefor:
"Section 3.1 Each Employee shall be eligible to parti-
cipate if such Employee is not eligible to participate
in the Texas Municipal Retirement System."
2. Section 3.2 shall be deleted and the following
substituted therefor:
"Section 3.2 Each Employee who is eli ible to parti-
cipate g
cipate in the Plan shall be entitled to become a
Participant on the Anniversary Date of the Plan follow-
ing six (6) consecutive months of employment."
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3. The following new Section 3.4 shall be added to
® Article III:
"Section 3.4 Any Participant who becomes eligible to
participate in the Texas Municipal Retirement System
shall cease to be eligible to participate in the Plan
and his participation shall terminate in accordance
with Article IX of the Plan."
4. The first two sentences of Section 4..1 shall be
deleted and the following substituted therefor:
"Subject to the provisions of this Plan, the City will
make a contribution on behalf of each Participant equal
to 5.6% of his full monthly earnings."
5. Section 5.1 shall be deleted and the following
substituted therefor:
"Section 5.1 Subject to the provisions of this Plan an
eligible employee may make a contribution equal to 5%
of his full monthly earnings."
6. Section 9.1 shall be deleted and the following
substituted therefor:
"Section 9.1 Upon the termination of an Employee's
status as a Participant for any reason other than
retirement or death, he shall have no further right or
interest whatsoever under this Plan, or receive any
benefits other than as provided in this Article, sub-
ject to Article XVI. An Employee's participation shall
terminate if:
A. He ceases to be an Employee;
B. He elects to terminate participation in the
Plan while remaining actively employed; or
C. He becomes eligible to participate in the
Texas Municipal Retirement Plan.
® 7. There shall be added to the Plan the following new
Article XVI:
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"ARTICLE XVI
® Termination of Status as a Participant
by Reason of Participation 'in the
Texas . Municipal Retirement System
Section 16.1 Effective January.l, 1979, an.Employee's
participation in this Plan shall terminate if he is
participating in or becomes eligible to participate in
the Texas Municipal Retirement System. Anything in
this Plan to the contrary notwithstanding, the termina-
tion of an Employee's participation in.this Plan by
reason of participation in the Texas Municipal Retire-
ment System shall be subject to the following provisions:
A. The vesting provisions of the Plan shall
remain applicable to such Employee, subject to
thi.s Article. Such Employee's years of continuous
service with the City after the date of the termi-
nation of his participation in the Plan shall be
included in his total years of continuous service
for purposes of determining the extent to which
such Employee shall be vested in the value of the
portion of his account representing the City's
contributions pursuant to the Plan.
B. Upon such Employee's retirement or termination
of employment for any reason, he shall be entitled
to receive only such benefits as are available to
him under the Texas Municipal Retirement System,
provided that the actuarial value of such benefits
equal or exceed the actuarial value of the benefits
which.hewould otherwise have been entitled to
receive under this Plan (based on the value of
City contributions made to his account prior to
the termination of his participation in this Plan)
had he continued as a Participant in this Plan up
to.the date he retired or terminated his employment.
In the event that the actuarial value of such
Employee's benefits under the Texas Municipal
Retirement System do not so equal or exceed the
actuarial value of the benefits which he would
otherwise have been entitled to receive under this
Plan, the Trustees shall be and are hereby author-
ized to pay to him from the Trust such benefits as
shall make up the difference, and the form of
these benefits shall be governed according to the
provisions of the Plan
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C. Prior to distribution to an Employee or trans-
fer to the Texas Municipal Retirement System, an
Employee's account shall be treated as a Par-
ticipant account for purposes of net earnings or
losses apportionment pursuant to Section 6.2.
D. For purposes of the payment of a:
under this Plan upon such Employee's
beneficiary entitled to receive such
shall be that beneficiary designated
receive his death benefits under the
pal Retirement System.
ay benefits
death, the
benefits
by him to
Texas Munici-
E. Upon the termination of his participation in
the Plan, such Employee shall withdraw the portion
of his account representing his contributions.
F. Upon the termination of his participation in
the Plan and notwithstanding a withdrawal by such
Employee of the value of the portion of his account
representing his contributions, the value of the
portion of his account representing the City's
contribution shall not be forfeited. Such account
shall be maintained until such time as it becomes
subject to release or forfeiture pursuant to the
provisions of Paragraph G of this Section 16.1.
G. The value of the portion of such Employee's
account representing the City's contributions
shall be released or forfeited as follows:
1. At the time that such employee becomes
100% vested under the Texas Municipal Retire-
ment System, the entire value of his account
representing City contributions shall be
released for transfer to the Texas Municipal
Retirement System pursuant to Paragraph H.
2. Upon the termination of such Employee's
employment for any reason under circumstances
such that he is not entitled to any benefit
under the Texas Municipal Retirement System,
the unvested portion of the value of his
account representing City contributions shall
be forfeited.
3. Upon the termination of such Employee for
any reason after becoming entitled to a
benefit under the Texas Municipal Retirement
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System, that portion of the value of his
At account representing City contributions which
is not distributed by the Trustees in order
to make up the difference between the benefits
which he would have been entitled to receive
under this Plan and the benefits which he is
entitled to receive under the Texas Municipal
Retirement System shall be released for
transfer.to the Texas Municipal Retirement
System pursuant to Paragraph H.
H. Any forfeitures of amounts in an Employee's
account representing City contributions to such
Employee's account and any amounts released pur-
suant to Paragraph G.l. shall be transferred to
the Texas Municipal Retirement System for funding
of benefits thereunder provided by City contribu-
tions.
I. The Plan and the Texas Municipal Retirement
System are designated as a single retirement plan
and program for Employees who were Participants in
the Plan prior to January 1, 1979 or prior to be-
coming eligible to participate in the Texas Munici-
pal Retirement System. The adoption of the revised
benefits of the Texas Municipal Retirement System
as of January 1, 1979 and the concurrent amendments
to the Plan constitute an amendment or merger of
the Plan into the Texas Municipal Retirement
System and shall not be construed as a termination
of the Plan."
AS AMENDED HEREBY, the Plan is specifically ratified
and reaffirmed.
IN WITNESS WHEREOF, The City of Baytown has caused
this instrument to be executed on this day of
IF 1979.
THE CITY OF BAYTOWN
By:
Title:
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J
E
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TRUSTEES, City of Baytown. Retirement
Fund
J. B. LE FEVRE
EDNA P. OLIVER