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ORDINANCE ~S 01,5_LL 71

AN ORDINANCE relating to the Seattle City Employees' Retirement System; providing active

members and their beneficiaries with a cost of living adjustment to future retirement benefits;

clarifying amendments made by Ordinance 119220; and amending Chapter 4.3 6 o f the S eattle

Municipal Code.

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Section 4.36.030 Amended. Section 4.36.030 of the Seattle Municipal Code is

amended as follows:

SMC 4.36.030 Definitions-Alphabetical "A" through "B."

Unless a different meaning is plainly required by the context the terms used in this chapter shall have

the following meanings:

A. "Accumulated additional contributions" means the sum of all additional contributions deducted

from the compensation of a member, standing to the credit of his individual account, together with

regular interest thereon.

B. "Accumulated contributions" means accumulated nonnal contributions plus accumulated

additional contributions but shall not include death benefit assessments.

C. "Accumulated normal contributions" means the sum of all normal contributions, deducted from

the compensation of a member, standing to the credit ofhis individual account, together with regular

interest thereon.

D. "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such

mortality tables and regulations as shall be adopted by the Board.

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E. "Additional contributions" means the contributions provided for in subdivision (d), Section 5, of

this ordinance.

justed Benefit" means the initial benefit plus the cumulative cost of living adjustmentsF. "Ad

provided for in subsection 4.36.215(B)(1).

G. "Annuity" means the payments derived from contributions made by a member as provided in

Sections 4.36.210 and 4.36.230.

((G))H. "Basic pension" means the annuity derived from normal contributions of members; the

pension derived from matching contributions of the City and the pension for prior service, if any.

((14))!. "Beneficiary" means any person in receipt of a pension, annuity, retirement allowance,

10 disability allowance, or any other benefit provided in this chapter.

11 ((I))J. "Board" means "Board of Administration" as provided in Section 4.36.130.

12 Section 2. Section 4.36.040(G) Amended. Subsection G of Section 4.36.040 of the Seattle

13 Municipal Code, as amended by Ordinance 119220, is further amended as follows:

1411

4.36.040 Definitions-Alphabetical "C" through I'D.

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16 G. "Current benefit" means the annual payment currently paid on behalf of a member. It includes,

17 where applicable, the permanent benefit increase granted by Ordinance 99566 and Ordinance 104156. It

18 takes into account any.reductions based on options selected by the member under Section 4.36.260. It

19 shall also mean payments of accumulated contributions made under Subsection 4.36.270A, an

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payments received by a beneficiary as a result of an option selected under Section 4.36.260. It shall not

21 include the cumulative cost of living adjustments provided for in subsection 4.36.215(B)(1).

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Section 3, Section 4.36.050(D) Amended. Subsection D of Section 4.36.050 of the Seattle

Municipal Code, as amended by Ordinance 119220, is further amended as follows:

4.36.050 Definitions Alphabetical "E" through "M."

D. "Indexed benefit" means the initial benefit payable on behalf of a member, adjusted for inflation in

an amount equal to the ratio of the June ((semi atwual))Seattle-Tacoma-Bremerton ("STB") Consumer

Price Index for Urban Wage Earners and Clerical Workers ("CPI-W") for the current year over the STB

CPI-W for the first half of the calendar year in which a benefit payable on behalf of a member was paid.

If the benefit was first paid during a year in which this index did not exist, the Board shall establish a

similar index value to represent the June ((seffii affffaa4)) index value based on published Consumer Price

Index information for the Seattle area.

Section4. Section 4.36.lS5(1) Amended. Subsection I of Section 4.36.155 of the Seattle

Municipal Code, as amended by Ordinance 119220, is further amended as follows:

4.36.155 Annual bonus dividend for current and future retirees.

I. For members or beneficiaries receiving payments on behalf of a member who retired before January

1, 1998, if the sum of that beneficiary's current benefit plus the annual bonus dividend as established in

subsections A through H above is less than sixty percent (60%) of the beneficiary's indexed benefit, then

the beneficiary's annual bonus dividend shall be increased to equal the difference between the current

benefit and sixty percent (60%) of the beneficiary's indexed benefit.

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Section 5. Annual Cost of Living Adjustment. Chapter 4.36 of the Seattle Municipal Code is

4.36.215 Annual Cost of Living Adjustment.

amended by adding the following section:

A. AMlicabilLty.

This section applies to all members, and beneficiaries receiving payment on behalf of any such

member, who retired on or after January 1, 1998.

Annual Adjustment.

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1. As of December I of each year, a member's or beneficiary's adjusted benefit shall be

increased by one and one-half percent (1.5%), except as otherwise provided in this section.

2, For any calendar year, the member or beneficiary shall receive the greater of-

a. The adjusted benefit, or

b. The sum of the initial benefit plus the annual bonus dividend provided for in

SMC 4.36.155, or

c. Sixty percent (60%) of the Indexed Benefit.

Section 6. Any act consistent with the authority and prior to the effective date of this ordinance

is hereby ratified and confirmed.

Section 7. 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.

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Passed by the City Council the 2,3~~ day of 1998, and signed by me in open

session in authentication of its passage this _Zjp~ day of 1998.

Filed by me this iing day of

Seal)

24

STATE OF WASHINGTON - KiNG COUNTY_Ss.

No.

Affidavit of Publication

The undersigned, on oath states that he is an

authorized representative of The Daily Journal of Commerce, a

daily newspaper, which newspaper is a legal newspaper of general

circulation and it is 'now and has been for more than six months

prior to the date of publication hereinafter referred to, published in

the English language continuously as a daily newspaper in Seattle,

King County, Washington, and it is now and during all of said time

was printed in an office maintained at the aforesaid place of

publication of this newspaper. The Daily Journal of Commerce

was on the 12th day of June, 1941, approved as a legal newspaper

by the Superior Court of King County.

The notice in the exact form annexed, was published in regular

issues of The Daily Journal of Commerce, which was regularly

distributed to its subscribers during the below stated period. The

annexed notice, a

was published on

L . 4;

Notary Public for the State of

residing in Seattle

ashington,

Affidavit of Publication

City of Sevttle

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