ORDINANCE NO. 1.03

An Ordinance to Provide a Retirement System for City Employees; to Provide for the Retirement of Employees due to Age or Disability; to Provide for the Payment of Retirement Benefits from the General Fund of the City; and to Repel all Ordinances or Parts of Ordinances inconsistent herewith:

THE CITY OF CRYSTAL FALLS ORDAINS:

SECTION 1. The City of Crystal Falls Employees Retirement System is hereby created and established. The administration and management of the retirement system, the responsibility for making effective the provisions of this ordinance, and the authority to make all rules and regulations therefore, are hereby vested in the City Commission.

SECTION 2. DEFINITIONS. The following words and phrases as used in this ordinance shall have the following meanings, unless a different meaning is plainly required by the context.

"City" shall mean the City of Crystal Falls, Iron County, Michigan.

"Employee". The term "employee" shall mean any regular or permanent employee, officer, agent or servant of the city, but shall not include part time or elective officials.

"Seasonal Employees" shall mean any employee whose employment with the city is seasonal. Seasonal employees shall not be considered as part time employees under this ordinance. Any such employee who shall have six "Full Months Employment" as herein defined, in any one calendar year shall be entitled to have his service record credited with one-half year of service for each such year of employment.

"Full Months Employment". Twelve days worked in any calendar month by the employee shall constitute a full months employment.

"One Years Employment" Eleven months worked in any one year shall constitute one years employment.

"Full Time Employees" shall be deemed to be those employees who habitually work at least twelve days in each month, and at least eleven months in each calendar year, unless prevented by illness or other emergency recognized by the City Commission. In case of doubt it shall be the duty of the City Commission to determine whether a particular employee is a "Full Time Employee" or an eligible "Seasonal Employee" within the meaning of this ordinance, and such determination shall be final and binding upon said employee and said city.

SECTION 3. MEMBERSHIP IN THE RETIREMENT SYSTEM. Member of Armed Forces: All former city employees who shall have been retired and are now entitled to draw retirement benefits; all full time employees and all seasonal employees having ten or more full years of service with the City on the day preceding the adoption of this ordinance, and all persons who become full time employees, or eligible seasonal employees, after the adoption of this ordinance and continue in the service of the City ten (10) full years or more, shall be members of the Retirement System.

In the event an employee, while employed by the City is or shall be called into the military, naval, marine or other armed service of the United State Government during time of war, or other national emergency recognized by the City council, and shall reenter the employ of the City within on (1) year from the date of the expiration of his required and necessary service therein, then such service shall be credited to his city service in the same manner as if he had served the city without interruption.

SECTION 4. VOLUNTARY RETIREMENT – COMPULSORY RETIREMENT. Any member of the retirement system may voluntarily retire upon reaching the age of 65 years upon giving written or oral notice to the City Manager not less than thirty (30) days subsequent to such notice at which he desires to be retired.

Any member having reached the age of sixty (60) years and having become physically or mentally unable to perform the duties of his occupation in the opinion of the City Council, may voluntarily retire, or may be compelled by the City Council to retire forthwith.

All members who are not retired and all members who shall hereafter retire from service as provided in this section, shall receive a retirement benefit or pension as provided in Section 5 of this Ordinance.

SECTION 5. AMOUNT OF RETIREMENT BENEFIT OR PENSION

Any member who has heretofore retired, and any member who shall hereafter retire under the provisions of Section 4 of this Ordinance, shall receive as long as he shall live, a retirement benefit, or pension, of $2.00 per month of each year of service credited to his account; or an amount established by the City Council form time to time to allow for cost of living increase.

The employee service records on file in the office of the Clerk of said City shall constitute the record of the member’s service, and shall be deemed to be final proof of the amount of service to be credited to each employee.

SECTION 6. In the event the retirement age under the Social Security Law, so called, shall be reduced from sixty-five years to some lesser age, or increased to some greater age, then the retirement age for City employees under Section 4 of this Ordinance will be automatically changed to conform therewith.

SECTION 7. All monies for the payment of retirement benefits or pensions hereunder shall be paid from the fund under which the recipient had been employed.

SECTION 8. The said City shall make all payment to the Michigan Benefit Service to cover hospitalization insurance for eligible retired employees.

SECTION 9. This ordinance shall take immediate effect to provide for the usual daily operation of the City as outlined in Section 8, 3, b of the City Charter; further, this is merely an edited and renumbered version of an ordinance previously adopted.

ORIGINAL APPROVED: 06/03/57

EFFECTIVE DATE : 11/08/93