AN ORDINANCE relating to the Seattle City Employees' Retirement System; providing for cost of living benefit adjustments for retired employees effective only upon certain events; and amending Chapter 4.36 of the Seattle Municipal Code.

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Effective January 1 of the year the Retirement Board files with the City Clerk notification that the funding ratio of the retirement fund is ninety-five (95) percent or higher, Subsection F of Section 4.36.030 of the Seattle Municipal Code is amended as follows:

4.36.030 Definitions Alphabetical "A" through "B."

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F. "Adjusted benefit" means the initial benefit plus the cumulative cost of living adjustments provided for in Section 4.36.215 B1 A. The adjusted benefit of employees who retired prior to January 1, 1998, shall be calculated on January 1 of the year that Section 1 of Council Bill 113956 becomes effective as if a cumulative cost of living adjustment of 1.5% per year had been in effect from the date of retirement to the date that Section 1 of Council Bill 113956 becomes effective and then adjusted annually as provided in Section 4.36.215A. There will be no retrospective benefit payments for employees who retired prior to January 1, 1998, only prospective adjusted benefit payments from and after January 1 of the year that Section 1 of Council Bill 113956 becomes effective.

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Section 2. A new Subsection D is added to Section 4.36.050 of the Seattle Municipal Code and the remaining subsections in that section shall be relettered accordingly:

4.36.050 Definitions Alphabetical "E" through "M."

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D. "Funding Ratio" means the ratio of the actuarial value of assets over the actuarial accrued liabilities as determined by an actuarial valuation ordered by the Retirement Board.

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Section 3. Effective January 1 of the year the Retirement Board files with the City Clerk notification that the funding ratio of the retirement fund is ninety-five (95) percent or higher, Section 4.36.155 of the Seattle Municipal Code is repealed.

Section 4. Effective January 1 of the year the Retirement Board files with the City Clerk notification that the funding ratio of the retirement fund is ninety-five (95) percent or higher, Section 4.36.215 of the Seattle Municipal Code is amended as follows:

4.36.215 Annual cost of living adjustment.

A. Applicability. This section applies to all members, and beneficiaries receiving payment on behalf of any such member, who retired on or after January 1, 1998.

B. Annual Adjustment.

1. As of Effective with the retirement allowance payable on or about December 1st of each year, a member's or beneficiary's adjusted benefit shall be increased by one and one-half (1 1/2) percent, except as otherwise provided in this section.

B2. For any calendar year, the member or beneficiary shall receive the greater of:

1a. The adjusted benefit; or

2b. The sum of the initial benefit plus the base annual bonus dividend provided for in SMC Section 4.36.155; or

c. ))Sixty (60) percent of the indexed benefit ; or

d. The benefit paid in the prior calendar year)).

Section 5. Sections 4.36.030, 4.36.155 and 4.36.215 of the Seattle Municipal Code shall each include a footnote stating that effective January 1 of the year the Retirement Board files with the City Clerk notification that the funding ratio of the retirement fund is ninety-five (95) percent or higher, the section is amended pursuant to this Ordinance.

Section 6. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the _____ day of ____________, 2001, and signed by me in open session in authentication of its passage this _____ day of _________________, 2001. _____________________________________ President _______ of the City Council

Approved by me this _____ day of _________________, 2001. ___________________________________________ Mayor

Filed by me this _____ day of ____________________, 2001. ___________________________________________ City Clerk

11/16/01 (Ver. 5 ) t