SYSTEM OF EMPLOYEE BENEFIT PLANS

Nashville Metropolitan Charter pt. I, art. 13

in effect

Nashville Metropolitan Charter, art. 13, § 13.01 Adoption.

Sec. 13.01. - Adoption. A system of employee benefit plans which include disability and retirement benefits and which may include medical insurance benefits and life insurance benefits, shall be adopted for officers and employees of the metropolitan government for whom such plans are not provided by other sections of this Charter.

Nashville Metropolitan Charter, art. 13, § 13.02 Metropolitan employee benefit board—Created.

Sec. 13.02. - Metropolitan employee benefit board—Created. A metropolitan employee benefit board (sometimes in this article called "board") shall be created to administer, manage and coordinate the employee benefit plans of the metropolitan government as well as the retirement plans listed in section 13.09 (a)—(c) of this article.

Nashville Metropolitan Charter, art. 13, § 13.03 Same—Composition and selection of board; terms and qualifications of members.

Sec. 13.03. - Same—Composition and selection of board; terms and qualifications of members. The board shall be composed of ten (10) members, as follows: The director of finance and the director of personnel shall be members by virtue of their official positions. Three (3) members shall be appointed by the mayor, subject to confirmation by the council, and shall possess an interest in benefit and retirement programs, and one (1) shall have at least ten (10) years business experience, and all three (3) shall be on the investment committee. They shall serve for terms of three (3) years each, except that the members first appointed shall serve for terms of one (1) year and two (2) years respectively. Five (5) members shall be selected by their own number, one (1) from the police department, one (1) from the fire department, two (2) from all other departments of metropolitan government and one (1) from among the retired employees. The employee members shall serve for terms of three (3) years each, except that the members first selected by the employee groups shall serve for terms of one (1) year, two (2) years, and three (3) years respectively. All members of the board, including the chairman, shall be entitled to vote on all issues. The director of personnel, with the approval of the metropolitan civil service commission, shall announce a plan for the conduct of an election to be held by the employee members of the board. The election shall be conducted under the supervision of the director of personnel, who shall immediately report to the commission the name of the employee receiving the required votes in such election, which report shall be spread upon the minutes of the commission. Upon such certification by the director of personnel to the commission, the successful candidate shall thereupon enter his or her duties as a member of the board. The members appointed by the mayor, and confirmed by the council, shall hold no public office and shall not be a member of any local, state of national committee. All vacancies on the board shall be filled for the unexpired portions of any term in the manner above prescribed for their respective positions. In the performance of its staff functions, the board, its investments committee and the study and formulating committee hereinafter created may utilize the office and clerical staff of the director of personnel or there may be employed by the board a secretary who shall have had training and experience in pension and retirement administration. (Res. No. 72-380, 10-3-72; Substitute Res. No. 78-1051, 9-19-78; amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.04 Investments committee.

Sec. 13.04. - Investments committee. The director of finance and the two members of the employee benefit board selected by the mayor shall be and constitute the investments committee of the board. Said committee shall regulate and determine all matters dealing with investment of funds committed to the board and shall have full and complete control over all investments, subject to the provisions of this Charter and of other applicable law. No other member of the board shall have authority to vote or participate in decisions dealing with investment of funds committed to the board. The investments committee shall be and constitute an administrative board of commission for the purpose of regulations and duties prescribed by chapter 1 of article 11 of this Charter. All actions taken by the investments committee shall have the approval of at least two members thereof. Full minutes shall be kept of all actions of the investments committee, which shall be public records as defined by state law. Said investments committee shall at least annually make a detailed accounting of its investments, income and expenditures, and file the same with the board, the mayor and the council. This report shall be a public record, and shall show the time, place, company, firm, person or individual in each instance dealt with, the nature and type of transaction involved, the nature and type of investment; the nature and type of income derived from such investment and any other information reasonably required to determine the exact financial status of all transactions. Any affected employee, upon request and at his or her expense, shall be furnished copies of such report or of designated portions thereof. Said investments committee shall manage, invest and distribute the fund or funds maintained in connection with the system of employee benefits plans for officers and employees of the metropolitan government, as well as the retirement plans listed in section 13.09 (a)—(c) of this article; provided, however, that no investment shall be made except in securities and properties which at the time of making the investment are permitted by statute for the investment of funds by fiduciaries in the State of Tennessee. (Amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.05 Duties of metropolitan employee benefit board.

Sec. 13.05. - Duties of metropolitan employee benefit board. In addition to the other duties imposed by this Charter or by general law, it shall be the duty of the board to: (a) Hold regular monthly meetings, which shall be open to the public. (b) Coordinate and communicate to officers and employees of the metropolitan government, the system of employee benefit plans for officers and employees of the metropolitan government, and to manage and administer such system of employee benefit plans as well as the retirement plans listed in section 13.09 (a)—(c) of this article. (c) Make such expenditures as may be necessary in fulfilling its duties, within the limit of its budget appropriation. (d) Construe any employee benefit plans adopted by the metropolitan government as well as any retirement plan listed in section 13.09 (a)—(c) of this article, and to determine all questions that may arise thereunder, including questions relating to the eligibility of any person employed by the metropolitan government to become a member of any such employee benefit plan and the amount of benefit to which such person, or any member of a retirement plan listed in section 13.09 (a)—(c) of this article may become entitled thereunder. (e) Adopt such rules, regulations and procedures as it may deem necessary in fulfilling its duties. (f) Advise the mayor and the council of the anticipated financial requirements of each employee benefit plan adopted by the metropolitan government, as well as the retirement plans listed in Section 13.09 (a)—(c) of this article so that such financial requirements shall be included in the budget and tax levy ordinances for the ensuing fiscal year.

Nashville Metropolitan Charter, art. 13, § 13.06 Study and formulating committee; preparation, consideration and adoption of plan for employee benefits; subsequent committees provided for.

Sec. 13.06. - Study and formulating committee; preparation, consideration and adoption of plan for employee benefits; subsequent committees provided for. There shall be a study and formulating committee consisting of five (5) persons appointed by the mayor and approved by the council. This committee shall make a study and formulate a plan for employee benefits, which shall include disability and retirement benefits and which may include medical insurance benefits and life insurance benefits. Such study shall include the design, the possible coordination of any of the employee benefit plans of such system with the Social Security Act, the administration and financing of such system and all properly related matters. For the purposes of its study and formulation, the committee is authorized to: (a) Within the limits of its appropriation, employ the services of legal counsel, investment consultants, actuarial consultants, and the services of others which in the sole discretion of the committee may be necessary to perform its duties. (b) Obtain from any department, board, commission, agency, officer or employee of the metropolitan government information and data with respect to the compensation of any officer or employee; his or her length of service with the metropolitan government, the former City of Nashville or the former County of Davidson; his or her retirement or other cause of termination of employment; his or her contribution to any employee benefit plan of the metropolitan government as well as any retirement plan listed in section 13.09 (a)—(c) of this article; and such other pertinent information and data as the board may require. The council is hereby authorized and required to appropriate such funds as may be reasonably necessary for the work of said committee. Within one year after its appointment, unless the time be extended by resolution of the council, the study and formulating committee shall submit to the employee benefit board a proposed system of employee benefit plans for officers and employees of the metropolitan government. Said board shall either approve the plan or indicate the specific changes which it recommends in connection therewith. Thereupon the board shall submit the approved plan or the original plan with recommended changes to the council for its action thereon and for the enactment of a system of employee benefit plans. The mayor shall from time to time thereafter, and at least once every five years, appoint a subsequent study and formulating committee to study benefits, contributions, extent of coverage, actuarial soundness and related matters in connection with the system of benefit plans and to submit to the employee benefits board such amendments as such study may indicate as necessary. (Amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.07 Eligibility of officers and employees of metropolitan government.

Sec. 13.07. - Eligibility of officers and employees of metropolitan government. Wherever used in this article, the term "officers and employees of the metropolitan government" shall mean all officers, including metropolitan judicial officers, and all employees, including classified and unclassified employees, who are regularly employed by the metropolitan government, who are not excluded in accordance with the provisions of section 13.08 of this article, or any other provision of this Charter, and who meet any other eligibility and participation requirements of the system of employee benefit plans adopted by the metropolitan government, but said term shall not include teachers whose benefits system is administered by the metropolitan board of education, as provided in section 13.09 hereof. Such officers and employees of the metropolitan government shall be members of the system of employee benefit plans established by the metropolitan government and shall not be members of an of the retirement plans listed in section 13.09 (a)—(c) of this article, or in any teachers' benefits system.

Nashville Metropolitan Charter, art. 13, § 13.08 Exclusion of certain persons.

Sec. 13.08. - Exclusion of certain persons. Notwithstanding any provision of this Charter to the contrary, any officer or employee of the former City of Nashville or the former County of Davidson who on the day before the effective date of this Charter 4a was an active or retired member of any retirement plan listed in section 13.09 (a)—(c) of this article shall not be eligible to become a member of the system of employee benefit plans for officers and employees of the metropolitan government; provided, however, that each such officer and employee of the former City of Nashville or the County of Davidson may elect voluntarily, subject to the written approval of the board, to transfer his or her membership from the applicable retirement plan listed in section 13.09 (a)—(c) of this article to membership in such system of employee benefit plans for officers and employees of the metropolitan government. No employee of the electric power board nor any teacher employed by the metropolitan government shall be eligible to become a member of the system of employee benefit plans for the officers and employees of the metropolitan government provided by this article. Notwithstanding any provision of this Charter to the contrary, no person employed by the metropolitan government shall be eligible to become a member or shall continue to be a member of more than one of any of the following: (a) The system of employee benefit plans for officers and employees of the metropolitan government. (b) Any retirement plan listed in Section 13.09 (a)—(c) of this article. (c) The retirement plan for employees of the electric power board. (d) Any retirement plan for teachers (1) of the former City of Nashville, (2) of the former County of Davidson or (3) of the metropolitan government hereafter adopted pursuant to Section 9.07 of this charter. (Amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.09 Continuing rights under retirement plans of former City of Nashville or former County of Davidson.

Sec. 13.09. - Continuing rights under retirement plans of former City of Nashville or former County of Davidson. Pension rights under Section 9.07 of this charter may include medical insurance benefits, and life insurance benefits. Said pension rights, together with those provided by Section 9.06 hereof, shall be administered by the board of education and both shall be an obligation and liability of the metropolitan government. In addition all benefits payable to members, retired members, and their survivors, in accordance with any of the following retirement plans of the former City of Nashville or the former County of Davidson as such plans existed prior to the effective day of this charter shall continue unimpaired for the same duration provided in such plans as they existed prior to the effective date, and such benefits shall be an obligation and liability of the metropolitan government: (a) The pension, retirement and benefit plan for police officers and firemen of the former City of Nashville created in accordance with the provisions of Article 48 of Chapter 246 of the Private Acts of 1947, and all amendatory acts thereof. (b) The pension, retirement and benefit plan for the city judge and civil service employees of the former City of Nashville created in accordance with the provisions of Article 48 of Chapter 246 of the Private Acts of 1947 and all amendatory acts thereof. (c) The retirement plan for officers and employees of the former County of Davidson created in accordance with the provisions of Chapter 274 of the Private Acts of 1943, and all amendatory acts thereof. It shall be the duty of the investments committee in addition to the duties hereinabove set forth to manage, invest and reinvest the funds and assets of the retirement plans listed in this Section 13.09 (a)—(c), which funds and assets shall be maintained as separate funds in one or more funds of the system of employee benefit plans for the officers and employees of the metropolitan government, as said committee may determine in its sole discretion. It shall be the duty of the employee benefit board to assume jurisdiction over, to administer, and to interpret the provisions of the retirement plans listed above in this Section 13.09; to codify and restate such retirement plans if the board determines that such codification and restatement would be an administrative convenience, and to exercise the duties granted the board in Section 13.05 of this charter with respect to such retirement plans; provided, however, that no provision of this charter shall be construed to affect in any way the benefits payable to members and their survivors of the teachers' retirement plans of the former City of Nashville or the former County of Davidson; and provided, further, that the board shall suspend, as a condition precedent to the employment of any person by the metropolitan government, the benefits payable under such retirement plan during the period such person is regularly employed by the metropolitan government. Provided any member receiving a service pension of the metropolitan government or the former City of Nashville or former Davidson County shall be entitled to receive their service pension and still serve as a member of the metropolitan council. This provision shall supersede any provision of the Charter or the applicable pension plans to the contrary. (Res. No. 72-380, § 1, 11-7-72; Res. No. 74-869, § 1, 11-5-74; Substitute Res. No. 78-1051, 9-19-78; amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.09.1 Benefit increase plan.

Sec. 13.09.1. - Benefit increase plan. The appropriate administrator of the system of employee benefits plans shall, after the approval of the metropolitan employee benefit board, recommend to the director of finance, the desirable plan of increase in benefits payable to members, retired members, and survivors of members of the retirement plans listed in Section 13.09 (a)—(c). The director of finance shall approve or modify the plan increase, and forward the same, with a statement of full budgetary implications, to the mayor for his or her approval. The mayor shall approve the plan or approve it subject to his or her modifications. Thereupon, the mayor shall submit the same to the council with recommendations that it be adopted effective at the beginning of the next fiscal year, except the effective date for the fiscal year beginning July 1, 1975, shall be as stated by adopting resolution. The council shall (1) adopt the benefits increase plan, or (2) reject it. Adoption or rejection shall be by resolution not requiring the approval of the mayor. When a benefit increase plan is rejected by the council, it shall be returned to the metropolitan employee benefit board, which may thereupon formulate another benefit increase plan and transmit the same to the mayor for handling under the provisions above set forth. Upon the approval of the plan by the mayor and the council, this shall be the benefits payable to members, retired members, and survivors of members of the retirement plans listed in Section 13.09 (a)—(c). (Res. No. 72-380, § 1, 11-7-72; Res. No. 74-869, § 1, 11-5-74; amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.10 Retirement plans to be actuarially sound.

Sec. 13.10. - Retirement plans to be actuarially sound. Any retirement plan adopted by the metropolitan government pursuant to Section 13.06 hereof shall be actuarially sound; that is, annual contributions shall be made by members of such retirement plans and by the metropolitan government to a fund or funds established and invested for the sole purpose of financing benefits provided in accordance with the provisions of such retirement plans. The amount of such annual contributions by the employees and the metropolitan government shall be determined as the sum of normal cost and five (5) percent of the unfunded past service liability, where normal cost and past service liability shall be determined actuarially by a qualified independent actuary based on the entry age normal cost method of funding or the unit credit cost method of funding.

Nashville Metropolitan Charter, art. 13, § 13.11 Separate funds; payments from funds; reports.

Sec. 13.11. - Separate funds; payments from funds; reports. All assets of any fund maintained in connection with the system of employee benefit plans of the officers and employees of the metropolitan government, as well as the retirement plans listed in section 13.09 (a)—(c) of this article, shall be maintained separate and apart from all other funds of the metropolitan government. The metropolitan treasurer shall keep a separate account for each such fund and a separate record indicating each disbursement of such fund. Payments from such find or funds shall be made only on order of the board by a warrant to be signed by a person designated by the board and to be countersigned by the metropolitan treasurer. The metropolitan treasurer shall submit to the board monthly financial reports and such other reports as the board may require.

Nashville Metropolitan Charter, art. 13, § 13.12 Expense for treatment of accidental injury in course of employment to be borne by metropolitan government.

Sec. 13.12. - Expense for treatment of accidental injury in course of employment to be borne by metropolitan government. Any employee of the metropolitan government entitled to benefits under any benefit plan established for the metropolitan government, who is injured by accident arising out of and in the course of his or her employment, shall be entitled to emergency treatment at the nearest or most available doctor's office, hospital or clinic, at the expense of the metropolitan government. Any further treatment, in addition to the emergency treatment herein provided for, shall be furnished the employee free of charge by doctors, nurses, etc., in the employment of board of hospitals. In the event it is determined that specialized treatment not available at a metropolitan hospital should be made available to such employee, then the same shall be made available at the nearest point or place where such specialized treatment is available, which treatment shall be paid for by the metropolitan government. (Amended by referendum election of November 6, 2018, Amdt. 6)

Nashville Metropolitan Charter, art. 13, § 13.13 Death benefits.

Sec. 13.13. - Death benefits. If no other death benefit financed in whole or in part by the metropolitan government is available, then benefits shall be paid on the death of an employee caused by any injury by accident arising out of and in the course of employment. The amount of the payment shall be the sum of five thousand ($5,000) dollars, and payment shall begin within sixty (60) days after death to the surviving spouse, and if no spouse, to the next of kin without necessity for appointment of an executor or administrator. Determination by the board as to who is entitled to payment of death benefits and the payments made pursuant to such determination shall be final and conclusive. No payment shall be made where the personal injuries resulting in death were due to the employee's willful misconduct or intentional self-inflicted injury, or due to intoxication, or willful failure or refusal to use a safety appliance or perform a duty required by law. No payment shall be made in the case of death due to sickness or disease. The words "employee of metropolitan government," as used in this section, shall not include any member of a board or commission created by this Charter or pursuant to it, and shall not include any contractor or employee of a contractor doing business with the metropolitan government. Written notice of personal injury shall be given to the board and to the mayor on behalf of an employee within thirty (30) days after such personal injury was sustained. In the event of claim for death benefit, the board shall make or cause to be made a full investigation of the facts and shall determine, on the basis of written opinion of the metropolitan attorney, whether the claim is legally and properly payable. The death benefit payment of $5,000 shall be made as follows: The sum of five hundred ($500) dollars shall be paid at the time of the initial settlement, and the balance shall be paid at the rate of one hundred ($100) dollars per month for forty-five (45) consecutive months. Payments made pursuant to this section shall be free from the claims of creditors and not subject to attachment, garnishment or other process of law. The provisions with respect to death benefits shall apply to all persons employed by the metropolitan government, including the employees of all departments, boards and commissions.

Source: Metropolitan Government of Nashville and Davidson County, Metropolitan Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tn/metro_government_of_nashville_and_davidson_county/codes/code_of_ordinances?nodeId=THCH_PTICHMEGONADACOTE_ART13SYEMBEPLFetched: 10/28/2026