St. Louis City Ordinance 69149
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BOARD BILL NO.  270
INTRODUCED BY ALDERMAN LYDA KREWSON, KENNETH ORTMANN, SHANE COHN, STEPHEN J. CONWAY, CAROL HOWARD, JENNIFER FLORIDA, DONNA BARINGER
An Ordinance pertaining to The Firemen's Retirement System of St. Louis discontinuing the accrual of benefits under the Firemen's Retirement System of St. Louis and repealing in its entirety Chapter 4.18 of the Revised Code of the City of St. Louis, 1994 (as supplemented and amended), all ordinances referenced therein, and other ordinance provisions related to The Firemen's Retirement System of St. Louis.
WHEREAS, in 1959 the City adopted Ordinance 49623, establishing The Firemen's Retirement System of St. Louis, effective January 1, 1960, under the general authority of Senate Bill 314, approved by the Missouri General Assembly.
WHEREAS, pursuant to Section Fifty-five (55) of Ordinance 49623, the City reserved the right to repeal Ordinance 49623 and the Firemen's Retirement System at any time.
WHEREAS, as a result of a series of amendments enacted by the state legislature, and actions by the trustees of The Firemen's Retirement System of St. Louis ("FRS"), the retirement plan originally adopted by the City has been transformed into an unsustainable system with many unaffordable secondary benefits, which must be funded by City taxpayers but over which the City has no influence or control.
WHEREAS, the City is required to fund FRS to the extent investment returns and other revenues are insufficient to fund benefit obligations.
WHEREAS, FRS incurred actuarial investment losses totaling more than $229 million during the ten-year period from 2001 through 2010.
WHEREAS, during the same period of time, the City's required annual payment to FRS increased by 586 percent, from $3,365,007 to $23,072,000 (not including service of debt incurred to fund contributions)
WHEREAS, the cost of funding FRS currently totals more than 56 percent of the total firefighter's payroll, compared to 10.3 percent in 2001 (not including service of debt incurred to fund contributions), and approximately 12.7 percent of payroll to fund the pension plan for other City employees.
WHEREAS, firefighter pension costs now consume nearly a third of the Fire Department's budget;
WHEREAS, these dramatic increases in FRS costs have created a severe budgetary hardship on the City, which lacks the financial resources to sustain this level of funding without drastically reducing other essential services, including services related to fighting fires.
WHEREAS, service-related disability benefits under the FRS are more generous than ordinary retirement benefits and have become a significant expense that is ultimately borne by the City.
WHEREAS, the City is committed to funding the entire amount certified by the actuary for the plan each year.
WHEREAS, given that there are hundreds of applicants for each opening for entry level firefighter positions in the fire department, the City believes it can attract and retain qualified firefighters, and maintain a pension plan that is very competitive in the marketplace, with a reduced level of contributions for pensions.
WHEREAS, the City wishes to reform the current retirement plan for its firefighters, in order to (i) assure that firefighters receive all benefits accrued and earned to date; (ii) make modifications for future benefits in a manner that provides substantial retirement income benefits at an early retirement age of fifty-five, typical for firefighters generally; (iii) maintain a pension benefit that is competitive in the marketplace that will attract and retain qualified firefighters; (iv) preserve the long-term financial sustainability of the plan and the City; (v) and reduce the financial burden on taxpayers who fund the system.
WHEREAS, for the aforementioned reasons, and others, the City has determined that it would be in the best interest of the City to repeal the current Firemen's Retirement System as referenced in the ordinances above and as codified in Chapter 4.18 of the City of St. Louis Revised Code.
BE IT ORDAINED BY THE CITY OF ST. LOUIS AS FOLLOWS:
SECTION ONE. Ordinances 49623, 50707, 52141, 53604, 53605, 52218, 55177, 53997, 54779, 54780, 57603, 57962, 58242, 58179, 56444, 58651, 58652, 59018, 59578, 59822, 60025, 61844, 61980, 62801, 62994, 63286, 63475, 63591, 63988, 64923, 65541, 65993 and 67259 are hereby repealed effective June 1, 2012.upon the enactment of a Board Bill, which establishes a successor plan. Chapter 4.18 of the Revised Code of the City of St. Louis, 1994 (as supplemented and amended), is hereby repealed effective June 1, 2012,upon the enactment of a Board Bill, which establishes a successor plan, as are all other ordinances and any parts of ordinances in conflict herewith, to the extent of such conflict.
SECTION TWO. Pursuant to the power to amend or repeal the Firemen's Retirement System of the City of St. Louis, under Section Fifty-five of Ordinance 49623, codified in Section 4.18.345 of the Revised Code, and not withstanding any provision or ordinance to the contrary, the benefits accrued under the Firemen's Retirement System of the City of St. Louis shall not increase on account of compensation paid or service performed on or after June 1, 2012.the enactment of a Board Bill, which establishes a successor plan. For purposes of this Ordinance, the benefit accrued under the Firemen's Retirement System, codified as Chapter 4.18 of the Revised Code, includes the service retirement allowance, the disability allowance, the death benefit, and any other benefit payable in accordance with Chapter 4.18 of the Revised Code.
SECTION THREE. This Ordinance shall not affect the benefit of a member whose pension, disability or death benefit payments commenced before June 1, 2012.the effective date of this Ordinance.
|1ST READING||REF TO COMM||COMMITTEE||COMM SUB||COMM AMEND|
|2ND READING||FLOOR AMEND||FLOOR SUB||PERFECTN||PASSAGE|
|ORDINANCE||VETOED||VETO OVR||SIGNED BY MAYOR|
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