ORDINANCE NO. BL2000-337
An ordinance implementing Public Chapter 935 of the Public Acts of 2000 by amending the Metropolitan Code of Laws to adopt a guaranteed payment plan for pension systems closed prior to June 30, 1994.
Whereas, Chapter No. 935 of the Public Acts of 2000 authorizes metropolitan governments to adopt a guaranteed payment plan for pension liabilities; and
Whereas, the Metropolitan Board of Public Education ("MBOE") has adopted a resolution recommending the adoption of the guaranteed payment plan contained in this ordinance; and
Whereas, establishment of the guaranteed payment plan will ensure that the pension obligations of the superseded systems are fully amortized in an actuarially sound manner and provide the needed fiscal relief to the MBOE to fund additional educational components mandated by state law without detrimentally affecting classroom needs.
Whereas, it is the desire of the Metropolitan Council that the retirement plans that have been closed prior to June 30, 1994 ("superseded systems"), be funded through a guaranteed payment plan that will provide a guarantee that the plans will be maintained on an actuarially sound basis and that the payments to fund the unfunded portion of the superseded retirement systems be made through a centralized account.
NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:
Section 1. That Chapter 2.24 of the Metropolitan Code of Laws is amended by adding the following appropriately numbered article:
Article VI. Guaranteed Payment Plan for Superseded Pension Systems
2.24.470 Plan established.
A. Superseded system defined. "Superseded system" means any closed local city or county retirement plan, except any retirement plan closed after June 30, 1994. Superseded system further means any closed city teacher retirement plan, closed county teacher plan or closed local teacher retirement plan in existence prior to the effective date of this ordinance.
B. Funding obligations of all superseded systems, including the funding of any unfunded accrued liabilities of the superseded systems, shall be determined in a manner so as to amortize the same over a period of time not to exceed thirty (30) years from July 1, 2000. Any benefit improvements granted by the superseded systems shall be fully funded over the same amortization period established in this subsection. No benefit improvements shall be effective until funded by an additional appropriation. Appropriations made by the local legislative body to fund the obligations of the superseded systems pursuant to this act shall not be reduced for any year until the all of the pension obligations of all of the superseded systems are fully amortized.
C. The metropolitan board of public education shall fund in its annual budget the actuarial contribution attributable to the aggregate benefits of all teachers covered under the superseded system established upon or after the establishment of the metropolitan government. The metropolitan government shall fund the actuarial contribution attributable to the aggregate benefits of all other superseded systems. The amounts necessary to fund such actuarial contributions shall be set forth in the annual budget adopted by the metropolitan council.
2.24.480 Guaranteed Payment Account
All funds appropriated by the metropolitan council for funding the obligation of the superseded systems shall be directly transferred to a guaranteed payment account by the chief accountant of the metropolitan government. The chief accountant shall transfer such amounts as may be necessary to pay the current pension obligations of the superseded systems to each respective system and shall transfer all remaining balances to the credit of the trust funds of the respective superseded systems in such amounts as are required to ensure that all liabilities are fully amortized as required in section 2.24.470.
Section 2. That this ordinance shall take effect from and after its enactment, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Eileen Beehan, Bettye Balthrop, Melvin Black, Chris Ferrell, Ronnie Greer, Howard Gentry, Lawrence Hart, Leo Waters, Craig Jenkins, Earl Campbell, Saletta Holloway, Lawrence Hall Jr., J. B. Loring, Feller Brown, Don Majors, Tony Derryberry, Phil Ponder, Bob Bogen, James Bruce Stanley, Michael Kerstetter, Jim Shulman, Ginger Hausser, Amanda McClendon.
|Introduced:||July 6, 2000|
|Passed First Reading:||July 6, 2000|
& Finance Committee
|Passed Second Reading:||July 18, 2000|
|Passed Third Reading:||August 1, 2000|
|Approved:||August 4, 2000|