Loading...
HomeMy WebLinkAboutORDINANCE - 1021 - 9/23/1975 - AGREEMENT/POLICE OFFICER/RETIREMENTORDINANCE NO. 1021 AN ORDINANCE AUTHORIZING THE VILLAGE PRESIDENT AND VILLAGE CLERK TO ENTER INTO AN AGREEMENT ENTITLED RETIREMENT PEN- SION AND DEATH BENEFIT PLAN - WILLIAM A. ULKE. WHEREAS, the Village of Elk Grove Village is desirous of entering into an Agreement with William A. Ulke, a police officer employed by the Village, said Agreement relating to the retirement, pension and death benefits of said employee; and WHEREAS, the Village of Elk, Grove Village is a Home Rule municipality as defined by Section 6 of Article 7 of the Constitution of the State of Illinois and is entitled to exercise such power and function of Home Rule units as is contained therein; and WHEREAS, the entering into of such contracts and agreements as stated aforesaid is a proper function of a Home Rule municipality. NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trus- tees of the Village of Elk Grove Village, Cook and DuPage Counties, Illinois, as follows: Section 1: That the Village President and the Village Clerk are hereby authorized to execute the Retirement, Pension and Death Benefit Plan Agreement between the Village of Elk Grove Village and police officer, William A. Ulke, a copy of which is attached hereto as Exhibit A and incorporated herein. Section 2: That this Ordinance shall be in full force and effect immediately after its passage and approval according to law. PASSED this 23rd APPROVED this 23rd VOTE: AYES 6 ATTEST: VILLV CLERK day of September , 1975. day of September , 1975. NAYS 0 ABSENT 0 EXHIBIT A THIS AGREEMENT, dated September 23, 1975, by and between the Village of Elk Grove Village (hereinafter referred to as the Village) and Officer William A. U1ke (hereinafter referred to as the Employee), and WITNESSETH, that WHEREAS, the Employee was hired by the Village on September 14, 1970, WHEREAS, at said date, the Employee was 39 years of age, and WHEREAS, the Illinois Revised Statutes prohibited -the participation of policemen who commence employment subsequent to their 35th birthday into the Police Pension Fund, and WHEREAS, the Employee has proved himself to'be an able, loyal and trustworthy member of the Village Police Department, and WHEREAS, the Village has purchased a whole life insurance policy on December 5, 1973, known as Connecticut Mutual Life Policy No. 3,029,107, a copy of which is attached hereto and made a part hereof (hereinafter referred to as Life Policy), and WHEREAS, it is the desire of the Parties hereto.to enter into an Agreement whereby the proceeds of the above stated policy can be utilized to provide pension and death benefits for the Employee similar to those provided by the Policemen's Pension Fund, Article 3, Chapter 108-1/2 of the Illinois Revised Statutes (1973), IT IS HEREBY AGREED that for and in consideration of the mutual promises herein set forth, the following Retirement Pension and Death Benefit Plan is hereby adopted and shall go into effect upon the execution of this Agreement by all Parties. - 1 - Retirement Pension and Death Benefit Plan William A. Ulke I. RETIREMENT PENSION A. Prior to 20 years creditable service - If the Employee is separated from the Village Police Department prior to attaining twenty (20) years of creditable service, Creditable Service being defined in Section 3-110 of Chapter 108-1/2; then he shall be entitled, upon his written request, to a lump sum payment of an amount equal to his contribution as hereinafter set forth. The above payment shall be payable out of the .cash surrender proceeds of the Life Policy, with the remaining proceeds, if any, to go to the Village. B. Subsequent to twenty (20) years Creditable Service - if the Employee shall retire after attaining twenty (20) years of creditable service, the Village shall surrender the Life Policy for its existing cash value, including accumulated dividends and deposit same in a special interest bearing account and pay the Employee from said account as follows: A pension equal to 1/2 of the salary attached to the rank he held on the village Police Department for one (1) year immediately prior to his retirement. The pension shall be increased by 2% of such salary for each additional year of such service over twenty (20) years up to thirty (30) years of service, then 1% per year over thirty (30) years to a maximum limit of 75% of such salary. Upon the death of the Employee, his surviving widow, if she remains unmarried, or his surviving minor children shall be entitled to the pension to which the Employee was entitled. If during the course of payment of the above pension, the amount received by the surrender of the cash value becomes insufficient to make further payments and is depleted, the village will continue to make the above described pension payments out of its General Corporate Fund. - 2 - II. DEATH BENEFITS If the Employee shall die while he is in active service in the Village Police Department, leaving a widow, or child or children under age 18, the Village shall pay a yearly pension of 1/2 of the salary attached to the rank held by the Employee for one year immediately prior to his death, payable to his widow during widowhood. If there is no widow, the pension shall be paid to the children until they become 18 years of age. Upon the death of the Employee, the Village shall immediately apply for all proceeds due the Village as beneficiary of the Life Policy and, upon receipt thereof, shall deposit same in an interest bearing account and make payments to the widow or children of the Employee as above described. If, during the course of payment of the above death benefits, the above special account is depleted or otherwise contains insufficient funds from which to make future payments, the Village will continue to make the above designated death benefit payments out of its General Corporate Fund. III. FINANCING - DURATION The Life Insurance Policy contained in this Agreement shall be funded as follows: A. The Employee shall contribute an amount equal to 8-1/2% of his salary, as defined in Section 3-125 of Chapter 108-1/2, said amount to be deducted by the Village from the Employee's regualr salary payments. B. The Village shall contribute an amount equal to the amount contributed by the Employee but in no event shall the amount contributed by the Village be greater than the amount contributed by the Employee. - 3 - C.. If, as a result of increases in the Employee's salary and thus an increase in the Village's contribution, as set forth above, resulting in excess funds over and above the amount needed to finance the Life Policy, the Village shall deposit such excess funds in an interest bearing account. The proceeds of this account shall be used in conjunction with the proceeds of the Life Policy in funding the terms of this Agreement. A. If the Employee shall wish to cancel this Agreement and choose not to contribute that portion of his salary above stated, then and in that event th= Village shall cancel the above Policy and pay to the Employee all amounts contributed by him with the remainder, if any, to go to the Village. If the Employee shall terminate this Agreement, neither he, his wife nor his minor children will be entitled to death or pension payments by the Village. VILLAGE OF ELK GROVE VILLAGE WILLIAM A. ULKE Attest: VILLAGE PRESIDENT VILLAGE CLERK 41 - 4 -