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RESOLUTION TO AMEND THE RETIREMENT PLAN FOR THE EMPLOYEES OF THE CITY OF JONESBORO
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WHEREAS, there is a need to improve the pension plan for non-civil service personnel in the City of Jonesboro.
BE IT THEREFORE, RESOLVED by the City Council of the City of Jonesboro, Arkansas that the Retirement Plan for Employees of City of Jonesboro, Arkansas, hereinafter known as "the plan" be amended as follows:
1. The plan year is hereby amended to January 1 through December 31 of each year. All other dates that are determined by the plan year are amended appropriately.
2. Eligibility requirements are hereby amended to include all regular employees of the City of Jonesboro, excluding part-time and seasonal employees, who are not eligible for participation in any other pension plan of the city. Such employees are eligible to be included in the Plan on the first January 1 or July 1 coincident with or next following their date of employment with the City, provided however they sign the appropriate application forms allowing the Employer to make payroll deductions, designate a beneficiary to receive any Death Benefits hereunder, and furnish whatever data the Employer needs.
3. The retirement benefit for Credited Future Service is amended as follows: The monthly amount of Future Service Benefit shall be 1.25% of your Career Average Earnings multiplied by your Years of Credited Future Service.
4. The vesting schedule is amended as follows:
Years of credited service Percentage of Retirement Benefit
Less than five years 0%
5 years or more 100%
5. The effective date for all of the above amendments to the plan is January 1, 1996.
6. In implementing plan amendments, all classes of eligible employees will be affected as follows:
a. All employees who are currently participating in the plan, including those who have retired but have not yet begun to receive their retirement benefits, will experience no change other than those detailed in the preceding sections of this resolution.
b. Current city employees who are not yet eligible under the old plan terms but who are eligible under the amended terms will become immediately eligible for participation, and will be allowed the opportunity to participate on the first January 1 or July 1 coincident with or next following passage of this resolution. The effective date for calculating Credited Future Service for such employees will be their date of employment in a position that meets eligibility requirements.
c. Current city employees who are eligible under the old terms but who are not currently plan participants, including those who have previously terminated their participation will be granted the opportunity to participate in the plan on the first January 1 or July 1 coincident with or next following passage of this resolution. Past service of such employees will count for vesting purposes, but will not be included in determining credited service for retirement benefits; and such employees will not be allowed to "buy back" or purchase past years of service.
d. Those former employees who have retired and are already receiving benefits will experience no change in those benefits.
7. The Mayor or his authorized representative is hereby directed to take whatever action is necessary to implement the above amendments.
PASSED AND ADOPTED this 20th day of May, 1996.