RETIREMENT

Dallas City Code ch. 40A

in effect

Dallas City Code § 40A-1 DEFINITIONS.

SEC. 40A-1. DEFINITIONS. In this chapter, unless the context clearly indicates otherwise: (1) ACTUARIAL EQUIVALENT means the equivalent in value on the basis of the actuarial factors recommended by the fund’s actuary and adopted by the board. (2) ACTUARIAL VALUATION REPORT means the report issued by the fund’s actuary and adopted by the board for any relevant period. The board shall provide a copy of each actuarial valuation report to the city promptly after adoption. (3) ACTUARIALLY DETERMINED CONTRIBUTION RATE means, for any fiscal year, a rate of contribution to the fund, expressed as a percentage of members’ projected wages for such fiscal year, that is the sum of the following as determined in the actuarial valuation report for the preceding plan year: (A) the normal cost and expenses that are allocated to a valuation period by the actuarial cost method; and (B) the contribution that will amortize the difference between the actuarial accrued liability of the fund and the actuarial value of the assets of the fund over the period(s). For purposes of this paragraph, the unfunded actuarial accrued liability as of December 31, 2024, will be amortized over a closed amortization period of 30 years from December 31, 2024. In each future valuation, new amortization layers will be amortized over a closed amortization period that is the later of December 31, 2054 or 20 years. Each year’s new amortization layer is the difference between the expected remaining balance of all previous years’ layers and the actual unfunded actuarial accrued liability for the given valuation. If the actuarial assets of the fund exceed the actuarial liabilities for a given valuation, the outstanding layers may be collapsed into a single layer with a closed amortization period that is the later of December 31, 2054 or 20 years. (4) ACTUARY means a person with at least five years of experience as an actuary working with one or more public retirement systems; and is a fellow of the Society of Actuaries, a member of the American Academy of Actuaries, or an enrolled actuary under the Employees Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.). (5) AVERAGE MONTHLY EARNINGS means wages paid by the city, divided by the number of months of credited service of a member or inactive member, computed for whichever of the following periods is most beneficial to the member or inactive member: (A) For Tier A members or inactive members, the: (i) three calendar years of credited service in which the member or inactive member was paid the highest wage; (ii) last 6,240 hours of credited service; or (iii) length of credited service if less than three years. (B) For Tier B members or inactive members, the: (i) five calendar years of credited service in which the member or inactive member was paid the highest wage; (ii) last 10,400 hours of credited service; or (iii) length of credited service if less than five years. (6) BASE PENSION means the amount of retirement pension or death benefits as computed under this chapter at the time of retirement or death of a member, inactive member, or retiree. (7) BENEFICIARY means a person who is entitled to payment of benefits under this chapter upon the death of a member, inactive member, or retiree. (8) BOARD means the board of trustees of the employees’ retirement fund of the city of Dallas. (9) CHILD means an unmarried person whose parent is a member, inactive member, or retiree. (10) CITY means the city of Dallas, Texas. (11) CITY COUNCIL means the governing body of the city of Dallas, Texas. (12) COMMUTED VALUE means the present value of a series of payments to be made in the future, the present value to be calculated using the actuarial interest assumption prescribed in Section 40A-9 as the only discounting factor. (13) CREDITED SERVICE means any period that a person is paid as an employee of the city and contributes to the fund. (14) CURRENT ADJUSTED TOTAL OBLIGATION RATE means, for any fiscal year, the rate recommended by the fund’s actuary and adopted by the board as follows: (A) During the applicable phase-in period: (i) If the current total obligation rate exceeds the total contribution rate maximum, then the current adjusted total obligation rate for such fiscal year is equal to the total contribution rate maximum. (ii) If the current total obligation rate is less than or equal to the total contribution rate maximum, then the current adjusted total obligation rate for such fiscal year is equal to the current total obligation rate. (B) After the applicable phase-in period, the current adjusted total obligation rate for the fiscal year shall equal the current total obligation rate for such fiscal year. To determine the current adjusted total obligation rate, the applicable phase-in period means the five-year period beginning on October 1, 2025, and ending September 30, 2030. (15) CURRENT TOTAL OBLIGATION RATE means, for any fiscal year in which a pension obligation bond credit rate is included, the contribution rate over the period adopted by the board that incorporates the pension obligation bond credit rate (if any) for such fiscal year and the actuarially determined contribution rate for such fiscal year, otherwise it will be equal to the actuarially determined contribution rate. (16) DEPENDENT PARENT means a member, inactive member, or retiree’s parent who is: (A) totally and permanently disabled and who receives over half of the support for each calendar year from the member, inactive member, or retiree; or (B) 65 years of age or older. (17) DESIGNEE means an estate, a person, or an entity selected by: (A) a member or inactive member to receive a refund of contributions under Section 40A-21(b); (B) a member, inactive member, or retiree to receive a commuted value lump sum payment under Section 40A-16(e) or 40A-21(c); or (C) a member, inactive member, or retiree to receive the earned but unpaid portion of the final month’s pension due under Section 40A-23(e). (18) EMPLOYEE: (A) means a person employed by the city on a permanent basis who receives regular compensation from the city; and (B) does not mean: (i) an elective officer or nonsalaried appointive member of an administrative board or commission; (ii) a person retained under contract for a definite period or for the performance of a particular service; (iii) a person given a temporary designation for the purpose of employment by the city; (iv) a leased employee; or (v) a police officer, firefighter, or fire alarm operator as those categories are defined in the classifications of the personnel department of the city. (19) FISCAL YEAR means the city’s fiscal year, which is the 12-month period commencing October 1 and ending the following September 30. (20) INACTIVE MEMBER means a person: (A) who has terminated employment with the city but who has not retired; and (B) whose contributions to the fund have not been forfeited or withdrawn. (21) INJURY means an accident resulting in damage or harm to the physical structure of the body. (22) INTERNAL REVENUE CODE means the Internal Revenue Code of 1986, or its successor, as amended. (23) LEASED EMPLOYEE means an individual who is not a common law employee of the city but who provides services to the city, if: (A) such services are performed pursuant to an agreement between the city and another person; (B) the individual has performed such services for the city or for the city and a related person or persons on a substantially full-time basis for at least one year; and (C) such services are performed under the primary direction or control of the city. (24) LEAVE OF ABSENCE means: (A) leave without pay granted by the city in accordance with a uniform and nondiscriminatory leave policy; or (B) leave during which a member receives worker's compensation benefits or short-term disability benefits. (25) MEMBER means an employee who is currently contributing to the retirement fund or who is on an approved leave of absence, but does not include a person establishing credited service under Section 40A-14 after termination of employment because of reduction in force. (26) NONSERVICE DISABILITY means total and permanent disability caused by injury, sickness, or disease while not in the performance of official city duties. (26.1) NORMAL COST means the actuarial present value of the pension plan benefits that are allocated to a valuation period by the actuarial cost method. (27) PARENT has the meaning ascribed to that term in Section 51.02 of the Texas Family Code, as amended. (28) PART-TIME EMPLOYEE means an employee classified as part-time by the city under Section 34-8(c) of this code, as amended. (29) PENSION means an amount payable monthly to a person eligible to receive death or retirement benefits under the retirement fund. (30) PENSION OBLIGATION BOND CREDIT RATE means, for any fiscal year, the rate adopted by the board that is a percentage calculated by dividing the: (A) debt service due during such fiscal year on any pension obligation bonds, the proceeds of which have been deposited in the fund, by (B) total members’ projected wages for such fiscal year, as reported in the relevant actuarial valuation report. (31) PENSION OBLIGATION BONDS means bonds described in Chapter 107 of the Texas Local Government Code (or any successor law that supersedes such chapter) and issued by the city. (32) PERCENTAGE MULTIPLIER means the percentage by which the average monthly earnings of a member or inactive member is multiplied in order to compute benefits. (33) PERMANENT BASIS means employ-ment of an individual for an unfixed continuing period. (34) PERSON means an individual. (35) PLAN YEAR means the calendar year or other plan year adopted by the board. (36) PRICE INDEX means the national Consumer Price Index of Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics of the U. S. Department of Labor, or its successor in function. (37) QUALIFIED RECIPIENT means: (A) the spouse of a deceased member or inactive member at the time of death of the member or inactive member; (B) the spouse of a deceased retiree, if the spouse was married to the retiree at the time of retirement and at the time of the retiree’s death; (C) each child of a deceased member, inactive member, or retiree under the age of 18, if the child was alive or had been conceived at the time of death of the member, inactive member, or retiree; (D) each totally and permanently disabled child of a deceased member, inactive member, or retiree if the child was totally and permanently disabled before the age of 18; and (E) a parent of a deceased member, inactive member, or retiree who was a dependent parent at the time of death of the member, inactive member, or retiree. (38) RESTRICTED PRIOR SERVICE CREDIT means service credit for work as a permanent, full-time, paid employee of a government entity, agency, authority, or political subdivision of the United States or its states or territories, performed before employment or re-employment by the city. (39) RETIREE means a person who was once a member but who has retired from city employment and is receiving a pension from the fund other than a death benefit. (40) RETIREMENT means terminating city employment for a reason other than death and fulfilling all requirements for a pension under this chapter. (41) RETIREMENT FUND or FUND means the employees’ retirement fund of the city of Dallas and the program of benefits established under this chapter and any rule or regulation established by the board. (42) SERVICE DEATH means the death of a member resulting from an injury sustained while in the performance of official city duties. A death resulting from an injury sustained while in the performance of official city duties does not include: (A) a death caused by an act of God unless the member in the performance of official city duties was subjected to a greater hazard from an act of God than that to which the general public was subjected; (B) a death caused by an act of a third person who causes the death of the member because of reasons personal to the third person and not for reasons of the member’s employment; (C) a death caused while the member was attempting to injure or kill another person; (D) a suicide; (E) a death while on leave of absence, unless the leave was granted solely because of an injury sustained in the performance of official city duties and the injury was the primary cause of death; (F) a death while on leave for military active duty; or (G) a death resulting from an injury in which a contributing factor was the member’s ingestion of an alcoholic beverage or illegal ingestion, inhalation, or injection of a controlled substance. (43) SERVICE DISABILITY means total and permanent disability caused by injury while in the performance of official city duties. An injury while in the performance of official city duties does not include: (A) an injury caused by an act of God unless the member in the performance of official city duties was subjected to a greater hazard from an act of God than that to which the general public was subjected; (B) an injury caused by an act of a third person who injures the member because of reasons personal to the third person and not for reasons of the member’s employment; (C) an injury in which a contributing factor was the member’s ingestion of an alcoholic beverage or illegal ingestion, inhalation, or injection of a controlled substance; (D) an injury caused while the member was attempting to injure or kill another person; or (E) an injury that was self-inflicted. (44) SPOUSE means the person to whom the member, inactive member, or retiree is married, as evidenced by the last marriage certificate or declaration of informal marriage on file with the retirement fund and verified by the administrator to be valid in the jurisdiction in which the marriage was celebrated. (45) TIER A means: (A) a person who was: (i) employed by the city before January 1, 2017; or (ii) re-employed or reinstated by the city on or after January 1, 2017, and whose credited service before January 1, 2017, has not been canceled by withdrawal or forfeiture; and (B) a beneficiary or designee of that person. (46) TIER B means: (A) a person who was: (i) employed by the city on or after January 1, 2017; or (ii) re-employed or reinstated by the city on or after January 1, 2017, and whose prior credited service has been canceled by withdrawal or forfeiture; and (B) a beneficiary or designee of that person. (47) TOTAL AND PERMANENT DISABILITY means the continuing inability of a person to obtain and retain any type of employment for compensation as a result of a mental or physical impairment caused by an injury or illness. A person is not under a total or permanent disability if, with reasonable effort and safety to the person, the impairment can be diminished to the extent that the person will not be prevented by the impairment from obtaining and retaining any type of employment for compensation. (48) TOTAL CONTRIBUTION RATE MAXIMUM means for fiscal years 2026 through 2030: (A) 38.22 percent (fiscal year 2026); (B) 39.45 percent (fiscal year 2027); (C) 40.68 percent (fiscal year 2028); (D) 41.91 percent (fiscal year 2029); and (E) the actuarially determined contribution rate (fiscal year 2030 and all subsequent fiscal years). (49) VESTED means that a member or inactive member has accumulated sufficient credited service or age to have earned a nonforfeitable right to receive a pension benefit, payable in accordance with the terms of the plan. (50) WAGE: (A) means: (i) wages of an employee as defined in Section 3401(a) of the Internal Revenue Code for income tax withholding, including salary continuation payments made to an employee with a job-related injury or illness; (ii) compensation that by special rule is excluded from Section 3401(a) of the Internal Revenue Code because of the nature or location of the services performed; (iii) elective contributions to a plan of deferred compensation, including a plan established under Section 125, 401(k), or 457 of the Internal Revenue Code, and elective reductions in compensation for qualified transportation fringe benefits that are excluded from an employee’s gross income by reason of Section 132(f)(4) of the Internal Revenue Code; and (iv) any lump sum payment made at termination of employment for accrued vacation leave or prorated service incentive pay; and (B) does not mean: (i) expense reimbursements, expense allowances, car allowances, or moving expenses; (ii) cash or noncash fringe benefits; (iii) welfare benefits, including, but not limited to, health benefits or life insurance benefits; (iv) deferred compensation, unless made under a plan described in Paragraph (A)(iii) of this subsection; (v) any lump sum payment made at retirement for accrued sick leave or attendance incentive leave; (vi) workers compensation benefits, short-term disability benefits, or catastrophic leave benefits; or (vii) any compensation in excess of the limits imposed by Section 401(a)(17)(A), as adjusted in accordance with Section 401(a)(17)(B), of the Internal Revenue Code. (Ord. Nos. 15414; 16886; 17713; 18181; 19470; 20960; 21582; 22345; 25695; 25818; 28739; 29644; 30162; 32801)

Dallas City Code § 40A-2 CREATION OF THE RETIREMENT FUND AND BOARD OF TRUSTEES; COMPOSITION AND OFFICERS OF THE BOARD.

SEC. 40A-2. CREATION OF THE RETIREMENT FUND AND BOARD OF TRUSTEES; COMPOSITION AND OFFICERS OF THE BOARD. (a) Creation. There is hereby created the employees' retirement fund of the city of Dallas, which is a trust fund, and the board of trustees of the employees' retirement fund of the city of Dallas. (b) Public entity. The fund is a public entity established for the exclusive purpose of providing benefits to members and their beneficiaries. Except as permitted under this chapter or by state law, the employees' retirement fund of the city of Dallas is the name in which all of its business must be transacted, all of its funds invested, and all of its cash, securities, and property held. (c) Composition of the board. (1) The board shall be composed of seven members consisting of: (A) three persons appointed by the city council who may be city council members; (B) three employees from different departments of the city who are elected by members of the retirement fund and who are members of the retirement fund; and (C) the city auditor. (2) If only one eligible employee is nominated for an elected board position described in Subsection (c)(1)(B) of this section, that employee will be declared elected to that position by the board without requiring an election by the members of the retirement fund. (d) Chair and vice chair. (1) The board shall elect a chair and a vice-chair at the first regular meeting each calendar year. The chair shall call a meeting as frequently as necessary to conduct the business of the board, but not less than quarterly. In the absence of the chair, the vice-chair may call meetings or preside over meetings of the board. (2) If the office of chair or vice-chair becomes vacant, the board will elect a replacement at its next meeting. (Ord. Nos. 15414; 20960; 21582; 25695; 30162)

Dallas City Code § 40A-3 TERMS AND REMUNERATION OF THE BOARD.

SEC. 40A-3. TERMS AND REMUNERATION OF THE BOARD. (a) Terms. (1) Elected board members. (A) On and after January 1, 2025, the three elected positions on the board will be designated Place 1, Place 2, and Place 3, respectively, as determined by the board. (B) The elected members, including incumbents, of the board shall serve without remuneration and for terms as follows: (i) A member elected to Place 1 will serve a three-year term, with the initial term running from January 1, 2027, through December 31, 2029. (ii) A member elected to Place 2 will serve a three-year term, with the initial term running from January 1, 2025, through December 31, 2027. (iii) A member elected to Place 3 will serve a three-year term, except that the initial term will be for two years and run from January 1, 2026, through December 31, 2028. (C) A person who has served as an elected member of the board under this subsection for three consecutive terms beginning on and after January 1, 2025, of whatever length of time, will not again be eligible to serve on the board until at least one term has elapsed, regardless of whether service was as a member or chair. (2) Appointed board members. The appointed members of the board shall serve without remuneration and for terms of two years. In accordance with Section 8-1.5 (a), a person who has served as an appointed member of the board under this subsection for four consecutive two-year terms will not again be eligible to serve on the board until at least one term has elapsed, regardless of whether service was as a member or chair. (b) Vacancy. (1) A position on the board becomes vacant if the occupant: (A) was elected as an employee member and is no longer an employee; (B) was appointed while serving as a city council member and is no longer a city council member; or (C) gives the chair written notice of resignation from the board. (2) If a vacancy occurs on the board in a position held by: (A) an elected employee member, the board shall hold an election within 90 days after the vacancy occurs to fill the unexpired term of the member; or (B) a city council appointee, the city council shall appoint a new member to fill the unexpired term of the member. (Ord. Nos. 15414; 20960; 21582; 25695; 30162; 32801)

Dallas City Code § 40A-4 POWERS, DUTIES, AND IMMUNITIES OF THE BOARD.

SEC. 40A-4. POWERS, DUTIES, AND IMMUNITIES OF THE BOARD. (a) In addition to other powers and duties it may have under state or federal law, the board shall have the power and duty to: (1) administer the retirement fund in accordance with this chapter for the exclusive purposes of providing benefits to members, inactive members, retirees, and their beneficiaries and defraying reasonable expenses of administering the fund; (2) adopt rules and regulations not inconsistent with this chapter and the constitution and laws of this state; (3) invest, reinvest, alter, and change the funds of the retirement fund with the care, skill, prudence, and diligence under the prevailing circumstances that a prudent person acting in like capacity and familiar with matters of the type would use in the conduct of an enterprise with a like character and like aims; (4) diversify the investments of the fund to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; (5) pay for professional services out of investments of the retirement fund when it is actuarially determined that the payments will not have an adverse effect on payment of benefits and when in the judgment of the board the services are necessary; (6) appoint an administrator and authorize employees to carry out the business of the board; (7) establish rates of compensation for employees of the retirement fund, subject to the approval of the city council and in accordance with civil service rules of the city; (8) correct administrative errors and remedy any effects of those errors; (9) make a final determination of the eligibility of a member, inactive member, retiree, or beneficiary for a normal, early, service, or disability pension or death benefits; (10) issue subpoenas for the attendance of witnesses and the production of records, papers, or other objects, administer oaths to witnesses, and examine witnesses on any matter relating to the payment of benefits of the retirement fund; (11) determine the time, method, and manner of election to the board in a manner consistent with Section 40A-3; (12) prepare and adopt a budget; (13) pay for fiduciary insurance out of investments of the retirement fund when it is actuarially determined that the payments will not have an adverse effect on payment of benefits and when in the judgment of the board the services are necessary; (14) pay for the costs of administration out of investments of the retirement fund when it is actuarially determined that the payments will not have an adverse effect on payment of benefits and when in the judgment of the board the costs are necessary; (15) sue and be sued in the name of the fund; (16) except as provided in Sections 40A-7.1 and 40A-9, appoint an actuary and adopt actuarial assumptions for the fund; (17) appoint such other professionals as it deems appropriate and necessary; (18) interpret this chapter as necessary to resolve any problems created by any ambiguities, inconsistencies, or omissions that might be found in this chapter; (19) direct the fund’s actuarial firm to perform an annual experience review of assumptions as part of its annual actuarial valuation; (20) direct the fund’s actuarial firm to perform a complete analysis of actuarial assumptions as frequently as the board deems necessary, but not less frequently than every five years; and (21) engage a second actuarial firm to perform an actuarial peer review/audit as the board deems necessary. (b) The board may not cause the fund to engage in a transaction if the board knows or should know that the transaction directly or indirectly constitutes a prohibited transaction under Section 503(b) of the Internal Revenue Code. (c) No expenditures may be made from the retirement fund without the approval of the board by resolution or by adoption of its budget. (d) Except as provided in Sections 40A-7.1 and 40A-9, the board shall adopt the actuarially determined contribution rate, the current adjusted total obligation rate, the current total obligation rate, and the pension obligation bond credit rate for each fiscal year no later than June 1 of the preceding fiscal year, and shall promptly notify the city manager of the adoption. (e) At least every five plan years, or in accordance with state law, whichever is sooner, the board shall provide 60 days’ notice to the city manager: (1) that the board intends to engage a second actuarial firm to perform an actuarial peer review/audit; and (2) the name of the actuarial firm the board intends to engage. If, within the 60 days, the city manager objects to the actuarial firm selected, the board shall seek another actuarial firm to perform the peer review/audit and re-notify the city manager. This process shall repeat until the city manager no longer objects to the actuarial firm the board intends to engage. The board shall then engage such actuarial firm for such purpose. (f) The board shall meet at any time after posting timely notice as required by law. Four members of the board constitute a quorum. The approval of four members of the board is necessary for any motion of the board to carry. (g) The board is not liable for its acts and conduct or any losses incurred in the administration of the retirement fund, the management of the assets of the fund, or the investment of the fund if the board has met the standards set forth in Subsections (a) and (b) of this section and in Sections 40A-4.1 and 40A-4.2. (h) If the board, in good faith, is in doubt as to the construction or interpretation of any provision of this chapter, or has any other question that may arise during the administration of the retirement fund, the board may resolve all such doubts and questions without obtaining a judicial construction. All constructions and interpretations made by the board are binding and conclusive. (i) The board may consult with an actuary, attorney, physician, or accountant, who may also be employed by the city. The board is not liable for any act or conduct that was performed in good faith reliance on the opinion of an actuary, attorney, physician, or accountant with respect to an actuarial, legal, medical, or accounting matter, respectively. (Ord. Nos. 15414; 17713; 18181; 19470; 20960; 21582; 22345; 25695; 30162; 32801)

Dallas City Code § 40A-4.1 INVESTMENT MANAGERS; FIDUCIARY DUTIES.

SEC. 40A-4.1. INVESTMENT MANAGERS; FIDUCIARY DUTIES. (a) The board may appoint investment managers for the fund by contracting for professional investment management services with one or more organizations, which may include a bank if it has a trust department, that are in the business of managing investments. (b) To be eligible for appointment under this section, an investment manager must be: (1) an organization registered under the Investment Advisors Act of 1940 (15 U.S.C. Section 80b-1 et seq.); (2) a bank as defined by that Act; or (3) an insurance company qualified to perform investment services under the laws of more than one state. (c) In a contract made under this section, the board shall specify any policies, requirements, or restrictions, including criteria for determining the quality of investments and for the use of standard rating services, that the board may adopt for investment of the fund. (d) In choosing and contracting for professional investment management services and in continuing the use of an investment manager, the board must act prudently and in the interest of the members, inactive members, retirees, and their beneficiaries. (e) The board is not liable for the acts or omissions of an investment manager appointed under this section, nor is the board obligated to invest or otherwise manage any asset of the fund subject to management by the investment manager. (f) An investment manager appointed under this section shall acknowledge in writing the manager's fiduciary responsibilities to the fund, which include the same duties assigned to the board in Section 40A-4(a)(1), (3), and (4). (g) The investment standards provided by Section 40A-4(a) and (b) and the policies, requirements, and restrictions adopted under this section are the only standards, policies, requirements, and restrictions governing the investment of funds of the retirement fund by an investment manager or by the board during a 90-day interim between professional investment management services. Any other standard, policy, requirement, or restriction provided by law is suspended and not applicable during a time, and for 90 days after a time, in which an investment manager is responsible for investment of fund assets. If an investment manager has not begun managing investments before the 91st day after the date of termination of the services of a previous investment manager, the standards, policies, requirements, and restrictions otherwise provided by law are applicable until the date professional investment management services are resumed. (Ord. Nos. 21582; 30162)

Dallas City Code § 40A-4.2 INVESTMENT CUSTODY ACCOUNT.

SEC. 40A-4.2. INVESTMENT CUSTODY ACCOUNT. (a) If the board contracts for professional investment management services, it also shall enter into an investment custody account agreement designating one or more banks, depository trust companies, or brokerage firms meeting the requirements under Section 802.205(d) of the Texas Government Code, as amended, to serve as custodian for the assets allocated to or generated under the contract. (b) Under an investment custody account agreement, the board shall require the designated custodian to perform the duties and assume the responsibilities for funds under the contract for which the agreement is established that are performed and assumed, in the absence of a contract, by the custodian of system funds. (Ord. Nos. 21582; 30162)

Dallas City Code § 40A-5 ADMINISTRATOR OF THE RETIREMENT FUND.

SEC. 40A-5. ADMINISTRATOR OF THE RETIREMENT FUND. (a) The administrator of the retirement fund shall carry out the business of the board and keep a record of the proceedings of the board. (b) The administrator, in accordance with civil service rules of the city, may appoint and hire deputies and other employees. (c) The administrator shall serve at the will of the board. (d) The administrator is the "plan administrator," as that term is defined in 26 U.S.C. 414(g). (e) Whenever the term "executive director" is used in relation to the retirement fund in any plan documents, contracts, resolutions, or other documents generated by the board or the fund, or in any city ordinances, resolutions, or contracts related to the fund, that term will mean "administrator." (Ord. Nos. 15414; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-6 EMPLOYEE CONTRIBUTIONS.

SEC. 40A-6. EMPLOYEE CONTRIBUTIONS. (a) Members. Every employee must be a member of the fund except: (1) a retiree re-employed by the city, who may elect not to contribute to the fund under Section 40A-20; or (2) a leased employee who is not eligible to contribute to the fund. (b) Contribution amount. For each pay period ending during a fiscal year, each member shall contribute to the retirement fund an amount equal to 37 percent times the current adjusted total obligation rate for that fiscal year times the member’s wages for the pay period, except that a Tier A member shall not contribute more than 14 percent of the member’s wages per pay period to the retirement fund and a Tier B member shall not contribute more than 13.32 percent of the member’s wages per pay period to the retirement fund. (c) Deductions. The contributions by each member receiving compensation from the city will normally be made by means of deduction on each payday. (d) Discontinuing contributions. (1) No member may discontinue contributions to the retirement fund unless the member is on: (A) unpaid leave for military active duty; or (B) a leave of absence. (2) A member who discontinues contributions to the retirement fund under Subsection (d)(1)(B) will have any retirement or death benefits computed based on credited service established at the date of discontinuance. (Ord. Nos. 15414; 17713; 19470; 20960; 21582; 25695; 30162; 32801)

Dallas City Code § 40A-7 CITY CONTRIBUTIONS.

SEC. 40A-7. CITY CONTRIBUTIONS. (a) Contribution amount. The city shall contribute to the retirement fund an amount equal to the current adjusted total obligation rate for that fiscal year times the members’ wages for the pay period, minus the sum of: (1) the projected aggregate member contributions under Section 40A-6; and (2) the pension obligation bond credit rate for that fiscal year, with such sum divided by the members’ wages for the pay period. (b) In addition to the contributions required under Subsection (a), the city may at any time, in its sole discretion, contribute additional monies to the retirement fund. The impact of any such additional contributions will be reflected in the contribution rates determined by the actuarial valuation next following the date on which any such additional contributions are made. (c) The city shall provide for costs of administration of the retirement fund, if the board determines that payment of the costs by the retirement fund will have an adverse effect on payment of benefits and that the costs are necessary. The city may modify any budget provision for administrative costs that it is being asked to fund under this subsection. (d) The total contributions of the employees and the city must be forwarded by the city to the retirement fund not later than the end of each week for all contributions made as to the pay period ending in that week. (e) The city may not contribute to the retirement fund for an employee on leave of absence or unpaid leave for military active duty. (f) The city may not withdraw its contribution previously made to the retirement fund. Nothing in this subsection prohibits the administrative adjustment of future contributions for erroneously made prior contributions, if the adjustment is made within 60 days after the error is made or discovered, whichever occurs later. (g) All payments and benefits provided for in this chapter must be made from the retirement fund. There is no obligation on the part of the city, the board, or the employees to provide for payment of benefits from any other source, nor is there any liability on the city or the employees to make any contribution other than those specified in this section and Section 40A-6. (Ord. Nos. 15414; 18181; 19470; 20960; 21582; 25695; 30162; 32801)

Dallas City Code § 40A-7.1 MODIFICATION OF CONTRIBUTION RATES.

SEC. 40A-7.1. MODIFICATION OF CONTRIBUTION RATES. Notwithstanding the definitions in Sections 40A-1(3), 40A-1(14), 40A-1(15), 40A-1(30), and 40A-1(48), the provisions of Sections 40A-4(d) and 40A-7, or any other provision to the contrary: (1) Changes to the actuarial assumptions, including, but not limited to, the discount rate, that in-creases the retirement fund liability must be approved prospectively by the board and the city council. (2) Settlement of any lawsuit by the retirement fund that increases the retirement fund liability must be approved prospectively by the board and the city council. (3) Annually, the fund and the city will each calculate an actuarially determined contribution rate for the following fiscal year. The city will accept the rate that is determined by the fund's actuary and presented to the board, except, if the difference between the rates that are calculated by the actuaries of the city and the fund is greater than three percent, the fund and the city shall engage in a 30-day reconciliation period. If, within such period, the actuaries of the city and the fund reconcile the results of their respective calculations of the actuarially determined contribution rate for the applicable fiscal year, the rate that was calculated by the fund’s actuary shall be accepted by the city and the fund. If no such resolution is reached within the 30-day reconciliation period, an average of the rates, determined by the actuaries of the city and the fund, will be used to determine the city's contribution under Section 40A-7 for the upcoming fiscal year. (4) After the applicable phase-in period defined in Section 40A-1(14), if in any fiscal year the actuarially determined contribution rate (excluding the December 31, 2024 unfunded actuarially accrued liability 30-year amortization schedule) exceeds plus or minus five percent of the actuarially determined contribution rate (excluding the December 31, 2024 unfunded actuarially accrued liability 30-year amortization schedule) specified by the December 31, 2024 actuarial valuation, the excess amount will be amortized over a period of 20 years or until December 31, 2054, whichever is later. If the city council determines that the fund is projected to be fully funded in over 30 years, the city council may, in its sole discretion, waive this paragraph. The board may make a recommendation to city council requesting that city council waive this paragraph. (Ord. Nos. 25695; 30162; 32801)

Dallas City Code § 40A-8 EFFECT OF MEMBERSHIP IN THE RETIREMENT FUND.

SEC. 40A-8. EFFECT OF MEMBERSHIP IN THE RETIREMENT FUND. A person, by becoming or remaining a member, inactive member, retiree, or beneficiary of the retirement fund, binds the person and the person's heirs, administrators, executors, legal representatives, beneficiaries, and survivors to all provisions of this chapter. (Ord. Nos. 15414; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-9 ACTUARIAL ASSUMPTIONS.

SEC. 40A-9. ACTUARIAL ASSUMPTIONS. (a) Except when specifically provided in Section 40A-7.1(1) or as otherwise provided in this chapter, the board, upon recommendation of the fund’s actuary, shall adopt and establish reasonable actuarial assumptions, interest rates, and mortality tables to be used under this chapter. (b) When determining the commuted value of future benefits under the fund during a particular calendar year, the five-year average of the 10-year treasury bond (calculated as of the last business day of each of the last five years averaged together) is the interest assumption that must be used. (c) When calculating the limits under Section 415 of the Internal Revenue Code, the applicable mortality table and applicable interest rate determined by the United States secretary of the treasury and in effect at the time of the calculation must be used. (Ord. Nos. 20960; 21582; 28739; 30162; 32801)

Dallas City Code § 40A-10 CREDITED SERVICE; COMPUTATION OF BENEFITS.

SEC. 40A-10. CREDITED SERVICE; COMPUTATION OF BENEFITS. (a) A retiree or a beneficiary is entitled to benefits of the retirement fund on the basis of credited service established while a member. (b) Credited service includes: (1) the length of credited service performed by the member or inactive member before retirement for which contributions to the fund have not been withdrawn or forfeited; (2) the length of credited service performed by the member or inactive member prior to withdrawal or forfeiture of contributions to the fund if the credited service has been reinstated under Section 40A-11; (3) the length of credited service for military active duty under Section 40A-12; (4) the amount of vacation leave for which the member or inactive member received lump sum payment at termination of employment; (5) the amount of credited service that is established at the time of a reduction in force in accordance with Section 40A-14; and (6) the amount of credited service established by a retiree who is re-employed by the city and elects to contribute to the fund in accordance with Section 40A-20. (c) For purposes of determining eligibility to retire, but not for purposes of computing benefits, a part-time employee shall receive one year of credited service upon completion of 1,000 hours of service in any 12-consecutive-month period beginning on the employee's date of employment or employment anniversary date. (d) For the purpose of computing benefits, a member is deemed to be on leave of absence during any portion of a work period for which the member does not receive wages from the city, including, but not limited to, any time for which the member does not receive wages as a result of part-time employment or pro rata compensation. A member receiving sick leave or salary continuation payments in an amount coordinated with workers compensation payments is deemed to be receiving wages for that portion of time covered by sick leave and salary continuation payments and to be on leave of absence for that portion of time covered by workers compensation payments. (e) Benefits may not exceed 100 percent of the average monthly earnings of the member or inactive member. (f) For a Tier A member or inactive member, benefits are computed at the rate of 2-3/4 percent of the average monthly earnings of the member or inactive member for the total amount of credited service by the member or inactive member. Benefits will be prorated for each partial year of credited service. (g) For a Tier B member or inactive member, benefits are computed at the rate of 2-1/2 percent of the average monthly earnings of the member or inactive member for the total amount of credited service by the member or inactive member. Benefits will be prorated for each partial year of credited service. (h) Benefits will be computed under this chapter without regard to gender. (Ord. Nos. 15414; 16886; 18181; 20443; 20960; 21582; 30162)

Dallas City Code § 40A-10.1 RESTRICTED PRIOR SERVICE CREDIT.

SEC. 40A-10.1. RESTRICTED PRIOR SERVICE CREDIT. (a) A Tier B member may be eligible for restricted prior service credit to be used in determining a member's eligibility to vest or retire, but not toward calculating benefits under this chapter. (b) To be eligible, a Tier B member must apply for restricted prior service credit not later than three years after the date of employment or re-employment by the city. The application must be on a form approved by the administrator and must be submitted to the administrator. Upon verification of prior restricted service, the administrator shall grant the credit. (Ord. 30162)

Dallas City Code § 40A-11 CREDITED SERVICE FOR EMPLOYMENT BEFORE A BREAK IN SERVICE.

SEC. 40A-11. CREDITED SERVICE FOR EMPLOYMENT BEFORE A BREAK IN SERVICE. (a) An eligible member whose credited service in the fund was canceled by withdrawal or forfeiture of contributions may reinstate the credited service. (b) To be eligible to reinstate credited service under this section, a member must have: (1) returned to employment with the city and resumed contributing to the fund within six years of the end of the period of service for which credit was canceled; and (2) continuously contributed to the fund for 12 consecutive months after returning to city employment. (c) A member may reinstate credited service only during the 24-month period beginning on the completion of 12 consecutive months of service following a cancellation of credited service. (d) A member shall have only one period of time under this section in which to reinstate credited service canceled by any single withdrawal or forfeiture of contributions. (e) An eligible member choosing to reinstate credited service must reinstate either all of the credited service canceled by a single withdrawal or forfeiture or the amount of credited service canceled by a single withdrawal or forfeiture that is needed to make the member eligible for pension benefits equal to 100 percent of the member's average monthly earnings on the date of reinstatement. Where reinstatement of a portion of credited service is authorized under this subsection, the member must reinstate credited service from the last earned to the first earned. (f) An eligible member may reinstate credited service as follows: (1) If credited service was canceled by withdrawal of contributions, (A) a Tier A member must deposit in the fund a lump sum equal to the amount withdrawn, or portion of the amount withdrawn where full credited service is not to be reinstated, plus interest of 7-1/2 percent compounded annually from the date of withdrawal to the date of reinstatement; and (B) a Tier B member must deposit in the fund a lump sum equal to the amount withdrawn, or portion of the amount withdrawn where full credited service is not to be reinstated, plus interest at a rate equal to the highest actuarial rate of return assumption used during the withdrawal period compounded annually from the date of withdrawal to the date of reinstatement. (2) If credited service was canceled by forfeiture of contributions, the member must file an application for reinstatement on a form approved by the administrator and submit the application to the administrator. (g) If an eligible member has more than one break in service during which credited service was canceled, the credited service must be reinstated from the last canceled to the first canceled. (Ord. Nos. 154141; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-12 CREDITED SERVICE FOR MILITARY ACTIVE DUTY.

SEC. 40A-12. CREDITED SERVICE FOR MILITARY ACTIVE DUTY. (a) A member with a break in service for military active duty is entitled to credited service for the period of military active duty not exceeding five years if the time is spent in the service of the armed forces of the United States, provided the member satisfactorily completes active service and returns to the service of the city after the member's discharge within the period described by law, if any. (b) Benefits of a member allowed under Subsection (a) for the period of the break in service for military active duty is computed at the appropriate rate of the average monthly earnings of the member on the date the break in service for military active duty was granted for each year the member is on military active duty. (c) Notwithstanding any other provision to the contrary, contributions, benefits, and service with respect to qualified military service will be provided in accordance with Section 414(u) of the Internal Revenue Code. (d) If a member dies while performing qualified military service (as defined in Section 414(u) of the Internal Revenue Code), the beneficiaries of the member are entitled to any additional benefits (other than benefits relating to the period of qualified military service) that would have been provided if the member had returned to service and then died. (Ord. Nos. 15414; 18181; 19470; 20960; 21582; 25818; 28739; 30162)

Dallas City Code § 40A-13 CREDITED SERVICE FOR LEAVE OF ABSENCE.

SEC. 40A-13. CREDITED SERVICE FOR LEAVE OF ABSENCE. Except as provided in Section 40A-12, no credited service will be given for time spent on leave of absence. (Ord. Nos. 15414; 20960; 21582; 30162)

Dallas City Code § 40A-14 REDUCTION IN FORCE.

SEC. 40A-14. REDUCTION IN FORCE. (a) The administrator must be notified in writing by the city manager, or by any department head not under the city manager, each time an employee who is a member is terminated as the result of a reduction in force. The determination of the city manager, or a department head not under the city manager, as to the date and the cause of termination is final and binding. (b) A person is eligible to establish credited service under this section if the person: (1) had five or more years of credited service at the time of termination; (2) would have been eligible to retire within two years had employment not been terminated; and (3) was designated by the city manager, or by a department head not under the city manager, as being terminated as a result of a reduction in force. (c) A person eligible under Subsection (b) may establish any amount of credited service desired, up to a maximum of the amount of credited service needed to take the person to the earliest retirement date, by making a lump sum payment of the amount required by Subsection (d) within 90 days after the person's termination date. (d) The amount of contributions required to be paid to establish credited service under Subsection (c) is equal to the employee contribution rate being paid under Section 40A-6 plus the city contribution rate being paid under Section 40A-7 multiplied by the average monthly wage earned by the person during the last 12 full months of service prior to termination multiplied by the number of months of credited service to be established. (e) Credited service established under this section will be credited to the person purchasing the credited service on a month-by-month basis as if the person had remained a city employee and a member. (f) If a person who paid to establish credited service under this section is reinstated as a member before establishing all of the service purchased, then any unused portion of the lump sum payment will be returned to the person without interest, and any uncredited service for which payment was made will be canceled. (g) If a person who paid to establish credited service under this section dies before establishing all of the credited service purchased, then any unused portion of the lump sum payment will be paid to the beneficiary, or, if there is no beneficiary, to the decedent's estate without interest, and any uncredited service for which payment was made will be canceled. (Ord. Nos. 20960; 21582; 22345; 30162)

Dallas City Code § 40A-15 RETIREMENT.

SEC. 40A-15. RETIREMENT. (a) A Tier A inactive member with five or more years of credited service or a Tier A member is eligible for: (1) a normal retirement pension at age 60; (2) an unreduced service retirement pension at age 50, if the member or inactive member has 30 years of credited service; or (3) a service retirement pension at any age below age 50, if the member or inactive member has 30 years of credited service, provided that benefits will be actuarially reduced from age 50 in accordance with Section 40A-16(c). (b) A Tier A member is eligible for an unreduced service retirement pension at or after age 50 if the person's age and years and partial years of credited service, when added together, total at least 78. (c) A Tier B inactive member with five or more years of credited service or a Tier B member with five or more years of credited service is eligible for: (1) a normal retirement pension at age 65; or (2) an unreduced service retirement pension if the member or inactive member has 40 years of credited service. (d) A Tier B member with five or more years of credited service is eligible for a retirement pension if the person's age and years and partial years of credited service, when added together, total at least 80. (1) Benefits for a member retiring under Subsection 40A-15(d) before the age of 65 will be actuarially reduced in accordance with Section 40A-16(d). (2) A member who is eligible to retire under this subsection before the age of 65 may terminate city employment and elect to defer retirement and the receipt of benefits until age 65, at which age the benefits received will not be actuarially reduced under Section 40A-16(d). At any time before the age of 65, the person may revoke this election and choose to retire and receive benefits, which benefits will be actuarially reduced under Section 40A-16 based on the person's age on the date the revocation application is approved by the administrator. The application for an election to defer a retirement as described in Section 40A-15(d) of this chapter or to revoke that election must be on a form approved by the administrator and must be submitted to the administrator. The administrator must approve the application in accordance with rules and procedures adopted by the board. (Ord. Nos. 15414; 16886; 18181; 19470; 20960; 21582; 22345; 30162)

Dallas City Code § 40A-16 RETIREMENT PENSION.

SEC. 40A-16. RETIREMENT PENSION. (a) A member or inactive member eligible for a retirement pension is entitled to a pension for life computed on the amount of credited service of the member or inactive member. (b) Except as provided in Section 40A-18(a), a member or inactive member eligible for a retirement pension is entitled to a pension beginning from the date of eligibility, but not before the member or inactive member's last paid day of employment with the city. (c) A Tier A member or inactive member eligible for a service retirement pension who retires before the age of 50 is entitled to the following percentage of a benefit calculated under Section 40A-10(f): Age | Percentage 49 | 93.3 48 | 87.2 47 | 81.5 46 | 76.3 45 | 71.5 44 | 67.0 (d) A Tier B member eligible for an early retirement pension under Section 40A-15(d) of this chapter who retires before the age of 65 is entitled to a benefit calculated under Section 40A-10(g) and then reduced in accordance with actuarially equivalent factors adopted by the board and in effect at the time of the member's retirement. These actuarially equivalent factors may not be given effect for at least six months after their adoption by the board. Copies of the actuarially equivalent factors must be maintained in the fund office and published on the fund's website. (e) The following retirement options are payable from the fund: (1) Life with a 10 year certain option. Under this option, a retiree will receive an unreduced pension for life. If the retiree dies before 120 monthly payments have been made, then an unreduced pension will be paid to the designated beneficiary or beneficiaries for the remainder of 10 years from the effective date of the retiree's retirement. Only qualified recipients of the retiree are eligible to be beneficiaries. If the retiree dies and if all designated beneficiaries die or cease to be eligible before 120 monthly payments have been made, then a final payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority: (A) to one or more designees; or (B) if no designee exists, to the retiree's estate. (2) Joint and one-half survivor option. Under this option, a Tier A retiree will receive an unreduced pension for life and, after the retiree's death, one-half of the unreduced pension will be paid for the life of one beneficiary designated by the retiree before retirement. A Tier B retiree will receive an actuarially reduced pension for life and, after the retiree's death, one-half of the reduced pension will be paid for the life of one beneficiary designated by the retiree before retirement. Only a qualified recipient of the retiree other than one described in Section 40A-1(38)(C) is eligible to be the beneficiary. If both the retiree and the designated beneficiary die before 120 monthly payments have been made, then a final payment equal to the commuted value of the balance of the 120 monthly payments will be made to one or more designees or, if no designee exists, to the estate of the last person entitled to monthly benefits. (3) Joint and full survivor option. Under this option, a retiree will receive an actuarially-reduced pension for life and, after the retiree's death, the same pension will be paid for the life of one beneficiary designated by the retiree before retirement. Only a qualified recipient of the retiree other than one designated in Section 40A-1(38)(C) is eligible to be the beneficiary. If both the retiree and the designated beneficiary die before 120 monthly payments have been made, then a final payment equal to the commuted value of the balance of the 120 monthly payments will be made to one or more designees or, if no designee exists, to the estate of the last person entitled to monthly benefits. (f) Except as provided in Subsection (g), at the time of a normal, early, service, or disability retirement, a member or inactive member may select either a: (1) joint and one-half survivor option; or (2) life with a 10 year certain option. (g) At the time of normal, early, service, or disability retirement, a member who is eligible by age and years of credited service for a normal, early, or service retirement pension or a member or inactive member who is retiring with 15 or more years of credited service may select: (1) a joint and one-half survivor option; (2) a life with a 10 year certain option; or (3) a joint and full survivor option. (h) Each retiring member or inactive member who is married shall designate the spouse as beneficiary under the joint and full survivor option, if eligible to select that option, or under the joint and one-half survivor option, if not eligible to select the joint and full survivor option. Any other designation of a beneficiary or selection of a retirement option will be effective only if agreed to by the spouse in writing on a form filed with the administrator. (i) Except as provided in Section 40A-20, a retirement option may not be changed after the effective date of retirement. (Ord. Nos. 15414; 18181; 19470; 20960; 21582; 22345; 25695; 30162)

Dallas City Code § 40A-17 DISABILITY RETIREMENT.

SEC. 40A-17. DISABILITY RETIREMENT. (a) Any member or inactive member who is totally and permanently disabled with a service disability is eligible for a disability retirement pension. (b) Any member who is totally and permanently disabled with a nonservice disability and who has five or more years of credited service is eligible for a disability retirement pension. (c) Any inactive member who is totally and permanently disabled with a nonservice disability and who has 10 or more years of credited service is eligible for a disability retirement pension. (d) The board shall determine the disability of a member or inactive member. The determination of the board is final. (Ord. Nos. 15414; 20960; 21582; 30162)

Dallas City Code § 40A-18 DISABILITY RETIREMENT PENSION.

SEC. 40A-18. DISABILITY RETIREMENT PENSION. (a) A member or inactive member is not eligible for a disability retirement pension until 90 days after the member or inactive member's last working day before being disabled, or until application is made to the board, whichever occurs later. (b) A member or inactive member eligible for a disability retirement pension is entitled to a disability retirement pension for life with benefits computed at the rates reflected in Section 40A-10, subject to the following minimums: (1) The minimum disability retirement pension payable for a nonservice disability is equal to 10 times the percentage multiplier used in computing benefits of the member or inactive member on the date of retirement multiplied by the member or inactive member's average monthly earnings. (2) The minimum disability retirement pension payable for a service disability is equal to the greater of: (A) $1,000 a month, regardless of the date of retirement; or (B) 10 times the percentage multiplier used in computing benefits of the member or inactive member on the date of retirement multiplied by the member or inactive member's average monthly earnings. (Ord. Nos. 15414; 16886; 18181; 19470; 20443; 20960; 21582; 22345; 30162)

Dallas City Code § 40A-19 TERMINATION OF A DISABILITY RETIREMENT PENSION.

SEC. 40A-19. TERMINATION OF A DISABILITY RETIREMENT PENSION. (a) A retiree entitled to a disability retirement pension may not receive a disability retirement pension if the retiree: (1) does not submit, when requested by the administrator, a truthful sworn affidavit stating any earnings from any gainful activity; (2) is re-employed by the city or capable of performing the duties of the position previously held with the city; (3) refuses, when requested by the administrator, to submit to a medical examination by a doctor approved by the board; (4) is found to be earning or be capable of earning compensation in an amount greater than $250 per month, whether or not such a position is available; or (5) is found to be involved in any gainful activity not commensurate with health limits imposed by the attending physician. (b) The board shall discontinue a disability retirement pension if it determines that one of the conditions of Subsection (a) exists. The determination by the board is final. (c) A person whose disability retirement pension is discontinued under this section is entitled to other benefits payable under the fund for all credited service previously accrued and not canceled by forfeiture or refund of contributions. Any refund of the person's contributions based on credited service previously accrued will be made without interest, less any previous retirement pension payments. (Ord. Nos. 15414; 18181; 20960; 21582; 30162)

Dallas City Code § 40A-20 RE-EMPLOYMENT OF A RETIREE.

SEC. 40A-20. RE-EMPLOYMENT OF A RETIREE. (a) If a retiree is re-employed by the city in a position normally covered by the fund, the retiree: (1) irrevocably waives all rights to payment of pension benefits for the period of re-employment; and (2) may elect to become a member and contribute to the retirement fund during the period of re-employment. (b) Upon termination of re-employment of a retiree who elects to contribute to the fund under Subsection (a), pension benefits will be calculated as follows: (1) If the period of re-employment was for less than 12 months, pension benefits for the credited service from which the person had previously retired will be reinstated in the form and amount previously paid, modified by any intervening cost-of-living adjustments. Pension benefits for credited service for the period of re-employment will be calculated in accordance with the formulas and options available under the fund on the date of termination of re-employment. (2) If the period of re-employment was for at least 12 months, the person may choose to have pension benefits paid in accordance with Paragraph (1) of this subsection or calculated on all credited service for all periods of employment in accordance with the formulas and options available under the fund on the date of termination of re-employment. If the new election changes or adds a retirement option or designated beneficiary for a period of credited service from which the person had previously retired and the change would have a negative actuarial effect on the fund, the pension benefits will be reduced by an amount calculated by the fund's actuary as necessary to prevent the loss. (c) A retiree re-employed by the city who does not contribute to the fund is, after termination of re-employment, entitled to those pension benefits payable on the date of re-employment, modified by any intervening cost-of-living adjustments. (Ord. Nos. 15414; 16886; 17713; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-20.1 SELECTION OF A DESIGNEE.

SEC. 40A-20.1. SELECTION OF A DESIGNEE. (a) A member, inactive member, or retiree may at any time select a designee or designees or change a previous selection of a designee or designees. (b) If a designee is a former spouse, the designation must have been signed by the member, inactive member, or retiree after the divorce, or the designation of the former spouse is void. (c) A designee who is a person must be alive at the time payment is due, or the designation of that person is void. A designee that is an entity must be in existence at the time payment is due, or the designation of that entity is void. (d) Any selection of a designee by a member or inactive member must be ratified at the time of retirement, or it becomes void. (Ord. Nos. 22345; 30162)

Dallas City Code § 40A-21 DEATH BENEFITS BEFORE RETIREMENT.

SEC. 40A-21. DEATH BENEFITS BEFORE RETIREMENT. (a) Before retirement, a member or inactive member is eligible for the death benefits described in this section. (b) Refund of contributions. (1) If a member who is not eligible to retire by both age and years of credited service dies with less than two years of credited service, a refund of the member's contributions will be paid to one or more designees or, if no designee exists, to the member's estate. (2) If an inactive member who terminated city employment without having at least five years of credited service dies before receiving a refund of contributions, a refund of the contributions will be paid to one or more designees or, if no designee exists, to the inactive member's estate, except that if more than three years have passed between the date of termination of city employment and the date of death, then the contributions are forfeited under Section 40A-30 and are not refundable. (c) Death benefit options. (1) 10 year certain option. Under this option, the designated beneficiary or beneficiaries will receive an unreduced pension for 120 months. Only qualified recipients of the member or inactive member are eligible to be beneficiaries. If all beneficiaries die or cease to be eligible before 120 monthly payments have been made, then a lump sum payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority: (A) to one or more designees; or (B) if no designee exists, to the estate of the member or inactive member. (2) One-half survivor option. Under this option, one designated beneficiary will receive one-half of an unreduced pension for life. Only a qualified recipient of the member or inactive member other than one described in Section 40A-1(38)(C) is eligible to be the beneficiary. If the designated beneficiary dies or ceases to be eligible before 120 monthly payments have been made, then a lump sum payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority: (A) to one or more designees; (B) if no designee exists and if an eligible beneficiary survived the member or inactive member, to the estate of the beneficiary; or (C) if no designee exists and if no eligible beneficiary survived the member or inactive member, to the estate of the member or inactive member. (3) Full survivor option. Under this option, one designated beneficiary will receive a reduced pension for life based upon the relative ages of the member or inactive member and the beneficiary on the day before the member or inactive member's death in an amount actuarially equivalent to an unreduced pension payable to the member or inactive member. Only a qualified recipient of the member or inactive member other than one described in Section 40A-1(38)(C) is eligible to be the beneficiary. If the designated beneficiary dies or ceases to be eligible before 120 monthly payments have been made, then a lump sum payment equal to the commuted value of the balance of the 120 monthly payments will be paid in the following order of priority: (A) to one or more designees; (B) if no designee exists and if an eligible beneficiary survived the member or inactive member, to the estate of the beneficiary; or (C) if no designee exists and if no eligible beneficiary survived the member or inactive member, to the estate of the member or inactive member. (d) If an inactive member dies with at least five years, but less than 15 years, of credited service, a death benefit is payable in accordance with this subsection. The pension will not be reduced because of the age of the inactive member. The pension will be based upon the inactive member's actual credited service or 10 years credited service, whichever is greater, and the benefit formulas in effect at the time of termination of city employment. The death benefit will be paid as either: (1) a 10 year certain option; or (2) a one-half survivor option. (e) If a member who is not described in Subsection (f) dies with at least two years, but less than 15 years, of credited service, a death benefit is payable in accordance with this subsection. The pension will not be reduced because of the age of the member. The pension will be based upon the member's actual credited service or 10 years credited service, whichever is greater. The death benefit will be paid as either: (1) a 10 year certain option; or (2) a one-half survivor option. (f) If a member who is eligible to retire by both age and years of credited service or a member or inactive member who has at least 15 years of credited service dies, a death benefit is payable in accordance with this subsection. The pension will not be reduced because of the age of the member or inactive member. The pension will be based upon the member or inactive member's actual credited service or 10 years credited service, whichever is greater. The death benefit will be paid as either: (1) a 10 year certain option; or (2) a full survivor option. (g) Death benefits for any service death will be determined as follows: (1) The benefits will be computed using the greater of: (A) the decedent's actual credited service; or (B) 10 times the percentage multiplier used in computing benefits of the decedent on the date of death multiplied by the decedent's average monthly earnings. (2) The benefits may never be less than $1,000 per month, regardless of the date of death, or the amount computed under Paragraph (1) of this subsection, whichever is greater. (h) If two or more beneficiaries are entitled to pension payments from the account of a deceased member or inactive member and one of the beneficiaries dies or becomes ineligible, then that beneficiary's share of the pension will be divided equally among any remaining beneficiaries. (Ord. Nos. 15414; 16886; 17713; 18181; 19470; 20443; 20960; 21582; 22345; 25695; 30162)

Dallas City Code § 40A-22 SELECTION OF DEATH BENEFITS PRIOR TO RETIREMENT.

SEC. 40A-22. SELECTION OF DEATH BENEFITS PRIOR TO RETIREMENT. (a) A member or inactive member described in Section 40A-21(d), (e), (f), or (g) is eligible to select a death benefit option for the payment of a pension as provided by those provisions. The selected option will become effective only if the member or inactive member dies while eligible to select the option. (b) Designation of beneficiaries. (1) Each member or inactive member who is married at the time a death benefit option is selected shall designate the spouse as beneficiary under the full survivor option or, if not eligible for the full survivor option, under the one-half survivor option. Any other designation of a beneficiary or selection of a death benefit option will become effective only if agreed to by the spouse in writing on a form filed with the administrator. (2) A death benefit option that designates a spouse as beneficiary becomes void if the member or inactive member and the spouse become divorced. (3) Upon the marriage of a member or inactive member, a death benefit option that does not designate the new spouse as beneficiary under either the full survivor option or the one-half survivor option becomes void. (c) If a member or inactive member selects a one-half survivor option, and the member or inactive member is eligible to select a full survivor option at the time of death, then benefits under a full survivor option will be paid. (d) If an eligible member or inactive member dies without having selected a death benefit option or if the selection cannot be made effective, the surviving spouse may select an option as if the member or inactive member had made the selection. If there is no surviving spouse, the personal representative of the estate of the member or inactive member may make the selection for the benefit of the qualified recipients. If there are no qualified recipients, then a lump sum payment equal to the commuted value of a 10 year certain option will be paid to the estate of the member or inactive member. (Ord. Nos. 15414; 16886; 18181; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-23 DEATH BENEFITS AFTER RETIREMENT.

SEC. 40A-23. DEATH BENEFITS AFTER RETIREMENT. (a) A retiree who dies shall have death benefits determined and distributed in accordance with the provisions of the retirement option selected at retirement. (b) If two or more beneficiaries are entitled to a pension upon a retiree's death and one of the beneficiaries subsequently dies or becomes ineligible, then that beneficiary's share of the pension will be divided equally among any remaining beneficiaries. (c) If a retiree marries after retirement, the spouse of this marriage is not eligible for any retirement benefit from the fund other than as the retiree's heir, devisee, or designee. (d) If the retiree is divorced, the former spouse has no right to benefits except as provided in Section 40A-34(b). (e) When a retiree or beneficiary dies, the earned but unpaid portion of the final month's benefit will be paid as follows: (1) To the beneficiary or beneficiaries entitled to future monthly benefits from the fund, to be divided in the same proportional shares as the future monthly benefits are to be divided. (2) If there are no future monthly benefits payable, then to the decedent's surviving spouse, if any. (3) If there are no future monthly benefits payable and if there is no surviving spouse, then to the executor or administrator of the decedent's estate, if any. (4) If there are no future monthly benefits payable, if there is no surviving spouse, and if no executor or administrator has been named within 120 days of the decedent's death, then to the decedent's heirs as established by an affidavit of heirship filed with the administrator of the retirement fund. (Ord. Nos. 15414; 16886; 17713; 18181; 19470; 20443; 20960; 21582; 30162)

Dallas City Code § 40A-24 DEATH BENEFITS TO MINORS.

SEC. 40A-24. DEATH BENEFITS TO MINORS. If a minor is entitled to benefits from the retirement fund, the board must pay the benefits to the minor's legal guardian or, until one is appointed, the minor's natural guardian, who shall be entitled to receive the benefits for the best interest of the child. (Ord. Nos. 15414; 20960; 21582; 30162)

Dallas City Code § 40A-25 BENEFITS TO INCOMPETENT RETIREES OR BENEFICIARIES.

SEC. 40A-25. BENEFITS TO INCOMPETENT RETIREES OR BENEFICIARIES. If a court has appointed a personal representative of a retiree or qualified recipient entitled to benefits from the retirement fund, the board shall pay those benefits to the court-appointed representative. (Ord. Nos. 17713; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-26 DIRECT ROLLOVER.

SEC. 40A-26. DIRECT ROLLOVER. (a) Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, a distributee may elect, at the time and in the manner prescribed by the plan administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. (b) Definitions. In this section: (1) ELIGIBLE ROLLOVER DISTRIBUTION means any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: (A) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life or life expectancy of the distributee or the joint lives or joint life expectancies of the distributee and the distributee's designated beneficiary, or for a specified period of 10 years or more; (B) any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code; or (C) any distribution that is made upon hardship of the employee. (2) ELIGIBLE RETIREMENT PLAN means an individual retirement account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403(a) of the Internal Revenue Code, an eligible deferred compensation plan that is maintained by an eligible employer described in Section 457(e)(1) of the Internal Revenue Code, an annuity contract described in Section 403(b) of the Internal Revenue Code, or a qualified trust described in Section 401(a) of the Internal Revenue Code, that accepts the distributee's eligible rollover distribution. An eligible retirement plan means only an individual retirement account or individual retirement annuity in the case of an eligible rollover distribution for a designated beneficiary that is not: (A) the surviving spouse; or (B) an alternate payee under a qualified domestic relations order who is a spouse or former spouse. (3) DISTRIBUTEE means: (A) an employee or former employee; (B) the employee or former employee's surviving spouse; (C) an alternate payee under a qualified domestic relations order who is the employee or former employee's spouse or former spouse, but only with regard to the interest of the spouse or former spouse under the qualified domestic relations order; or (D) the employee or former employee's designated beneficiary. (4) DIRECT ROLLOVER means a payment by the plan to the eligible retirement plan specified by the distributee. (5) DESIGNATED BENEFICIARY means an individual who is designated to receive an eligible rollover distribution. (Ord. Nos. 21582; 25818; 28739; 30162)

Dallas City Code § 40A-27 HEALTH BENEFIT SUPPLEMENTS.

SEC. 40A-27. HEALTH BENEFIT SUPPLEMENTS. (a) A Tier A retiree or beneficiary is eligible for a health benefit supplement in addition to the amount otherwise payable under the fund. The health benefit supplement is equal to $25 a month for each full year of credited service or $125 a month, whichever is less. Payment of the health benefit supplement will be prorated for each partial year of credited service. (b) If more than one beneficiary is receiving a pension from the account of a deceased member, inactive member, or retiree, the health benefit supplement will be divided among the beneficiaries in shares proportionate to their rights to the pension. (c) A health benefit supplement is not includable when calculating lump sum death benefit payments. (d) Health benefit supplements attributable to retirements and deaths that occurred before January 1, 2017 shall not be reduced by reason of Subsection (a). (e) A Tier B retiree or beneficiary is not eligible for any health benefit supplement. (Ord. Nos. 20960; 21582; 22345; 30162)

Dallas City Code § 40A-28 COST-OF-LIVING ADJUSTMENT TO BENEFITS.

SEC. 40A-28. COST-OF-LIVING ADJUSTMENT TO BENEFITS. (a) On January 1 of each year, a cost-of-living adjustment will be made to the base pension payable to each retiree or beneficiary, if the person was entitled to a base pension on or before December 31 of the preceding year. If a base pension becomes payable during the 12 months preceding the cost-of-living adjustment, the adjustment will be prorated, with one-twelfth being paid for each whole or part month from the date the base pension became payable to the end of the year. (1) A health benefit supplement under Section 40A-27 is not base pension and is not subject to any cost-of-living adjustment. (2) The minimum amount payable as a disability retirement pension for a service disability under Section 40A-18(b)(2) or as death benefits for a service death under Section 40A-21(g)(2) will be considered the base pension for computing cost-of-living adjustments unless a greater base pension is payable under this chapter. (b) The cost-of-living adjustment to the base pension will be made by using one of the following methods, whichever is the most beneficial to the retiree or beneficiary: (1) the percentage of change in the price index for October of the current year over October of the previous year, up to: (A) five percent for a Tier A retiree or beneficiary; or (B) three percent for a Tier B retiree or beneficiary; or (2) the percentage of the annual average change of the price index for the latest 12 months available, up to: (A) five percent for a Tier A retiree or beneficiary; or (B) three percent for a Tier B retiree or beneficiary. (c) The cost-of-living adjustment may not reduce benefits of a retiree or beneficiary. (d) In addition to the regular cost-of-living adjustment payable under Subsection (a) of this section, the board may from time to time grant an additional temporary or permanent adjustment if there exists investment income in excess of that needed to maintain the actuarial soundness of the fund. The adjustment is discretionary with the board in both its grant and application after the board has considered the funding of the increase and the relative needs of the retirees and beneficiaries. The adjustment may not increase or decrease the base pension of the retirees and beneficiaries. Any discretionary adjustment granted by the board under this subsection will not become effective unless approved by an ordinance or resolution of the city council. (Ord. Nos. 15414; 16886; 19470; 20960; 21582; 22345; 25695; 30162)

Dallas City Code § 40A-29 TERMINATION OF CITY EMPLOYMENT PRIOR TO RETIREMENT; BENEFITS.

SEC. 40A-29. TERMINATION OF CITY EMPLOYMENT PRIOR TO RETIREMENT; BENEFITS. (a) A member with five or more years of credited service who terminates employment before becoming eligible for a normal, early, or service retirement pension is entitled to: (1) a refund of contributions to the retirement fund, without interest, any time after termination, less any previous retirement pension payments; or (2) payment of a retirement pension and benefits at the time the member becomes eligible. (b) An inactive member with more than 10 years of credited service who terminated employment before becoming eligible for a normal, early, or service retirement pension is eligible to apply for a disability retirement pension as provided in Section 40A-17. (c) A member with less than five years of credited service at the time of termination of employment who does not retire or withdraw contributions to the fund and who is later re-employed: (1) before contributions are forfeited under Section 40A-30(b), shall have any pension benefits payable for all periods of credited service based on the provisions of the fund in effect on the date of termination of re-employment; (2) after contributions are forfeited under Section 40A-30(b), but who reinstates credited service by filing the application required under Section 40A-11, shall have pension benefits payable for all periods of credited service based on provisions of the fund in effect on the date of termination of re-employment; or (3) after contributions are forfeited under Section 40A-30(b), but who is not eligible to reinstate credited service under Section 40A-11, shall be treated as a new employee by the fund and have no right to pension benefits based on the period of canceled credited service. (d) A member with five or more years of credited service at the time of termination of employment who does not retire or withdraw contributions to the fund and who is later re-employed for: (1) less than 12 full months of continuous service, shall have pension benefits payable on the period of credited service earned prior to the break in service based on provisions of the fund in effect at the time such service ended, while pension benefits for the period of credited service earned during re- employment will be based on provisions of the fund in effect on the date of termination of re-employment; (2) at least 12 full months of continuous service, shall have pension benefits payable on all periods of credited service based on provisions of the fund in effect on the date of termination of re-employment. (Ord. Nos. 15414; 17713; 18181; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-30 REFUND OR FORFEITURE OF CONTRIBUTIONS.

SEC. 40A-30. REFUND OR FORFEITURE OF CONTRIBUTIONS. (a) A member who terminates city employment without either retiring or having sufficient credited service to retire at a future date is entitled to the amount of the member's contributions to the retirement fund, without interest, less any previous retirement pension payments, except as provided by federal law. (b) A member who terminates employment without either retiring or having sufficient credited service to retire at a future date must make written application with the retirement fund for the refund of the member's contributions within three years of the date of termination or all of the member's rights to a refund of contributions will be forfeited, and the contribution will remain in the retirement fund. (c) Actuarial gains and forfeitures of employee or city contributions must be applied to reduce the cost of the fund and may not be used to increase benefits otherwise payable under the fund. (Ord. Nos. 15414; 18181; 20960; 21582; 30162)

Dallas City Code § 40A-31 LEAVE OF ABSENCE.

SEC. 40A-31. LEAVE OF ABSENCE. (a) A member on leave of absence, who is eligible to retire because of disability or because of age and length of credited service, is entitled to: (1) receive a pension for normal, early, or service retirement; or (2) receive a pension for disability retirement or have death benefits paid to the beneficiaries if the leave of absence was granted for sickness or injury. (b) The administrator of the retirement fund must be notified in writing by the city manager, or by any department head not under the city manager, of a member who has been granted a leave of absence and must be furnished with a copy of a written authorization for the leave of absence. (c) A leave of absence will be regarded for retirement fund purposes as a break in service and not as a termination of employment. (Ord. Nos. 15414; 20960; 21582; 30162)

Dallas City Code § 40A-32 LEAVE FOR MILITARY ACTIVE DUTY.

SEC. 40A-32. LEAVE FOR MILITARY ACTIVE DUTY. The administrator of the retirement fund must be notified in writing by the city manager, or by any department head not under the city manager, of a member who has been granted a leave for military active duty and must be furnished with a copy of a written authorization for the leave. (Ord. Nos. 15414; 19470; 20960; 21582; 30162)

Dallas City Code § 40A-33 COMPLIANCE WITH FEDERAL TAX LAWS.

SEC. 40A-33. COMPLIANCE WITH FEDERAL TAX LAWS. (a) A member or survivor of a member of the pension system may not accrue a retirement pension, or any other benefit under this chapter, in excess of the benefit limits applicable to the fund under Section 415 of the Internal Revenue Code. The board shall reduce the amount of any benefit that exceeds those limits by the amount of the excess. If total benefits under this fund and the benefits and contributions to which any member is entitled under any other qualified plans maintained by the city would otherwise exceed the applicable limits under Section 415 of the Internal Revenue Code, the benefits the member would otherwise receive from the fund shall be reduced to the extent necessary to enable the benefits to comply with Section 415. The limits shall be adjusted annually in accordance with Section 415(d) of the Internal Revenue Code. The annual adjustment shall apply to the benefits of both active and inactive members and shall apply without regard to whether retirement benefits are being received. (b) The total salary taken into account for any purpose for any member of the pension system may not exceed the limit imposed pursuant to Section 401(a)(17) of the Internal Revenue Code for any year ($360,000 for an eligible participant and $245,000 for an ineligible participant for 2009). These dollar limits shall be adjusted from time to time in accordance with guidelines provided by the United States secretary of the treasury. For purposes of this subsection, an eligible participant is a person who first became an active member before 1996, and an ineligible participant is a member who is not an eligible participant. (c) Amounts representing forfeited nonvested benefits of terminated members may not be used to increase benefits payable from the fund. (d) Distribution of benefits must begin not later than April 1 of the year following the calendar year during which the member entitled to the benefits becomes 70-1/2 years of age or terminates employment with the city, whichever is later, and must otherwise conform to Section 401(a)(9) of the Internal Revenue Code. (e) If the retirement fund is fully terminated or partially terminated, as determined by the Internal Revenue Service, or if all city contributions to the retirement fund are discontinued, the rights of each member affected by the termination or discontinuance that have accrued at the date of termination or discontinuance will be fully vested to the extent funded. (f) It is intended that the provisions of this chapter be construed and administered in such a manner that the fund's program of benefits will be considered a qualified plan under Section 401(a) of the Internal Revenue Code. In determining qualification status under Section 401(a), the fund's program of benefits will be considered the primary retirement plan for members of the fund. (g) The right of each member to such member's interest accrued under this chapter shall become 100 percent vested, if not already vested, upon the member's attainment of normal retirement age, and the member shall have a right to terminate employment and commence to receive a pension at that time. (Ord. Nos. 20354; 20960; 21582; 22345; 25818; 28739; 30162)

Dallas City Code § 40A-34 NONALIENATION AND NONREDUCTION OF BENEFITS.

SEC. 40A-34. NONALIENATION AND NONREDUCTION OF BENEFITS. (a) Title/ownership. Except with respect to fund assets subject to a securities lending agreement, the legal and equitable title and ownership of all assets at any time constituting a part of the fund will be and remain with the board, and neither the city nor any member or other person who may be entitled to benefits under the fund shall ever have any legal or equitable estate in the fund, except to receive distributions lawfully made in accordance with this chapter. (b) Qualified domestic relations orders. The administrator shall determine whether a domestic relations order is a valid qualified domestic relations order, and the determination by the administrator may be appealed only to the board. In the event of receipt of a valid qualified domestic relations order, the interest in the fund of the member, inactive member, or retiree will be divided between the member, inactive member, or retiree and the spouse, former spouse, or child in accordance with the terms of the order as follows: (1) A spouse or former spouse who is named as an alternate payee is entitled to receive a court-ordered lump sum distribution of accumulated employee contributions or monthly pension benefit in the form of payments for life. If the actuarial value of the pension is less than $10,000, the board, at its option, may pay the actuarial present value to the alternate payee as a lump sum. A lump sum distribution of a portion of the member, or inactive member, or retiree's contributions, but not of annuity payments, may be made to an alternate payee who is a spouse or former spouse if such distribution is authorized by a qualified domestic relations order, even if the earliest retirement age has not been reached. (2) A child who is named as an alternate payee is entitled to receive a part of the retiree's monthly pension benefit in an amount ordered by the court. Payments will terminate on the date designated by the court or upon the retiree's death, whichever occurs first. Payments may be made to a person legally authorized to receive them on behalf of the child. (3) All rights and benefits provided to the member, inactive member, or retiree are subject to the rights afforded to any alternate payee under a valid qualified domestic relations order that meets the requirements of this section. (4) For purposes of this section, alternate payee, domestic relations order, and qualified domestic relations order have the meanings given under Texas Government Code Chapter 804, as in effect on January 1, 2017. (c) Exemptions. Contributions and benefits payable under the retirement fund are exempt from attachment, execution, garnishment, judgments, and all other suits or claims, with the exception of a "qualified domestic relations order," and are not assignable or transferable. (d) Waiver of benefits. (1) A person may, on a form prescribed by and filed with the administrator, waive all or a portion of any benefits from the retirement fund to which the person is entitled. A person may revoke a waiver of benefits in the same manner as the original waiver was made, unless the original waiver by its terms was made irrevocable. (2) A waiver or a revocation of a waiver applies only to benefits that become payable on or after the date the document is filed. (3) Unless otherwise expressly provided for in this chapter, the board may not take action to reduce an individual pension. (Ord. Nos. 15414; 19470; 20960; 21582; 22345; 30162)

Dallas City Code § 40A-35 AMENDMENT TO THIS CHAPTER.

SEC. 40A-35. AMENDMENT TO THIS CHAPTER. (a) Except as provided in Subsection (b) of this section, this chapter may not be amended except by a proposal initiated by either the board or the city council that results in an ordinance adopted by the city council and approved by a majority of the voters voting at a general or special election. The board may make a recommendation to city council on all proposed amendments to this chapter. (b) A provision of this chapter, other than this section, that is determined by the board or the city to require amendment in order to comply with federal law may be amended by ordinance of the city council, without voter approval. An amendment may be made under this subsection only to the extent necessary to comply with federal law. (c) The city manager shall notify the board and the plan administrator in writing of the city’s intent to propose any amendments to this chapter for city council discussion, deliberation, or direction. (Ord. Nos. 15414; 20960; 21582; 25695; 30162; 32801)

Source: City of Dallas, Dallas City Code and City Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/dallas/latest/dallas_tx/0-0-0-118164Fetched: 10/26/2026