215927ORIGINAL TO CITY CLERK
CITY OF ST. PAUL
OFFICE OF THE CITY CLERK
94NCIL RESOLUTION - GENERAL
PRESENTED I
COMMISSIO
FIOUNCIL NO. 215 927
FORM g� 6_3
PUBLISHED
RESOLVED, by the Council of the City of Saint Paul,
that said Council, being duly advised in the premises hereby
approves that certain proposed resolution of Teachers Retirement
Fund Association contemplating and providing for several amend-
ments to the by -laws of said Teachers' Retirement Fund Association
and to be submitted for adoption at the annual meeting of the
members of said Association on Thursday, January 16, 1964, a
copy of said proposed resolution being filed herewith and by
reference made part of this Resolution, with the same intent,
purpose and effect as if said proposed resolution were fully
set forth herein verbatim, it appearing therefrom that the
operative effect of the adoption of said proposed resolution
would amend said by -laws so as to (1) clarify the procedure of
making final payment of a me tuber t s dues upon the death of said
member, and (2) increase the percentage of investment in
corporate bonds from 25 per cent to 50 per cent of portfolio;
RESOLVED FURTHER, that the City Clerk by directed
to deliver a certified copy of this Resolution to said
Association.
COUNCILMEN
Yeas Nays
Dakiish
Holland
Loss
In Favor
Morthmn b Fetersw
Against
Rosen
Mr. President, Vavoulis
1oH4 8-82
Council File No. 215927 —By. Milton
Rosen —
Resolved„ *-the Council of the City
of Saint Paul, that slid_ Council, being
'd in 'he preinise„ herelf '
reso'
VEC 2 01963
Adopted by the Council 19—
I)EC % 0 1963
proved 19—
Mayor
DUPLICATE TO PRINTER
CITY OF ST. PAUL COUNCIL 6d
OFFICE OF THE CITY CLERK FILE NO. _
COUNCIL RESOLUTION — GENERAL FORM
PRESENTED BY
COMMISSIONER DATE _
RESOLVED, by the Council of the City df Saint Paul,
that said Council being duly advised in the premises hereby
approves that certain proposed resolution of Teachers' Retirement
Fund Association contemplating and providing for several amend-
ments to the by -laws of said Teachers' Retirement Fund Association
and to be submitted for adoption at the annual meeting of the
members of said Association on Thursday, January 16 1961+, a
copy of said proposed resolution being filed herewith and by
reference made part of this Resolution, with the same intent,
purpose and effect as if said proposed resolution were fully
set forth herein verbatim, it appearing therefrom that the
operative effect of the adoption of said proposed resolution
would amend said by -laws so as to (1) clarify the procedure of
making final payment of a member's dues upon the death of said
member, and (2) increase the percentage of investment in
corporate bonds from 25 per cent to 50 per cent of portfolio;
RESOLVED FURTHER, that the City Clerk by directed
to deliver a certified copy of this Resolution to said
Association.
COUNCILMEN
Yeas Nays
Ddgtish
Holland
Loss
Amason
r4tersm
Rosen
Mr. President, Vavoulis
10M 6-62
In Favor
Against
Adopted by the Council 19—
Approved a r ' -4 .3 to 19—
Mayor
z
c
2'i
1 -5q�
RESOLUTION PROPOSING AMENDMENT
OF BY-LAWS
OF
TEACHERS' RETIREMENT FUND ASSOCIATION
RESCUED, that the Board of Trustees of Teachers' Retirement
Fund Association propose, and it hereby does propose, to the members of
The Association that they adopt the following Resolution Amending By -Laws
of Teachers' Retirement Fund Association:
Resolution Amending By -Laws
of
Teachers' Retirement Fund Association
RESCLVED, that the By -Laws of Teachers' Retirement Fund Asso-
ciation be amended, effective. January 1, 1964, in the following respects
to wit: ,
I.
That Article IV, Section 3, Paragraph 7, which now reads:
"Paragraph 7. Cash Refunds of Dues. Commencing on
January 1, 1955, cash refunds of dues shall be determined as follows:
(a) To a member ineligible for a pension, an amount equal to
the total amount of the dues paid by him since January 1, 1940) with-
out interest;
(b) To the beneficiary of a deceased active member who was not
survived by a dependent child, an amount equal to the total amount of
the dues paid by the member since January 1, 19400 without interest;
(c) To the beneficiary of a deceased active member who was
survived by a dependent child, any amount by which the total amount
of the dues paid by the member since January 1, 1940, without interest,
exceeds the total amount of any benefits paid on account of the
dependent childr,n of the member;
(d) To the beneficiary of a deceased retired member who did not
elect a reversionary pension, any amount by which the total amount of
the dues paid by the member since January 1, 1940, without interest,
exceeds the total amount of the pension paid to the member;
(e) To the estate of a deceased member who did not elect a
reversionary pension -and whose beneficiary has not "survived the
member, the amount that would have been payable to the beneficiary
if he had survived the member;
(f) To the contingent beneficiary of a deceased retired member
who elected a reversionary pension, any amount by which the total
amount of the dues paid-by the member since January 1, 1940, without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary; and
(g) To the estate of a deceased retired member who elected a
reversionary pension and whose contingent beneficiary has not sur-
vived the member and his beneficiary, any amount by which the total
amount of the dues paid by the member since January 1, 1940, without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary."
be amended so as to read:
"Paragraph 7. Cash Refunds of Dues. Commencing on January
1, 1955 cash refunds of dues shall be determined as follows:
(a� To a member ineligible for a pension, an amount equal to the
total amount of the dues paid by him since January 1, 1940, without
interest;
(b) To the beneficiary of a deceased active member who was not
survived by a dependent child, an amount equal to the total amount of
the dues paid by the member since January 1, 1940, without interest;
(c) To the beneficiary of a deceased active member who was sur-
vived by a dependent child, any amount by which the total amount of
the dues paid by the member since January 1, 1940, without interest,
exceeds the total amount of any benefits payable on account of the
dependent children of the member;
(d) To the beneficiary of a deceased retired member who did not
elect a reversionary pension, any amount by which the total amount of
the dues paid by the member since January 1, 1940, without interest,
exceeds the total amount of the pension paid to the member;
(e) To the estate of a deceased member who did not elect a
reversionary pension and whose beneficiary has not survived the member,
the amount that would have been payable to the beneficiary if he had
survived the member;
'(f) To the contingent beneficiary of a deceased retired member
who elected a reversionary pension, any amount by which the total
amount of the dues paid by the member since January 1, 1940, without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary; and
(g) To the estate of a deceased retired member who elected a
reversionary pension and whose contingent beneficiary has not sur-
vived the member and his beneficiary, any amount by which the total
amount of the dues paid by the member since January 1, 1940, without
interest, exceeds•the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary."
..
2.
ri.
• II.
That the third Paragraph of Article V, Section 2, which now
reads:
"In addition, not more than twenty -five per cent of the fund
may be invested and reinvested in bonds of corporationswhich, at the
time of such investment, are incorporated under the laws of the United
States, of any state thereof, or of the District of Columbia; provided,
however, that such bonds must have at least an "A" rating by two leading
security - rating companies; and provided further, that such investment
shall not be made in more than twenty -five per cent of any one issue
of such bonds."
be amended so as to read:
"In addition, not more than fifty per cent of the fund may
be invested and reinvested in bonds of corporations which, at the
time of such investment, are incorporated under the laws of the
United States, of any state thereof, or of the District of Columbia;
provided, however, that such bonds must have at least an "A" rating
by two leading security - rating companies; and provided further, that
such investment shall not be made in more than twenty -five per cent
of any one issue of such bonds."
RFSCLVED, that the foregoing proposed amendment be submitted for
adoption at the annual meeting of the members of the Association to be held
on Thursday, January 16, 1964, at four o'clock P.M., at 25 East Fifth Street,
Saint Paul, Minnesota, and that due notice thereof be given to each member
entitled'to vote on the proposed amendment, and to each officer and trustee
regardless of his voting rights.
A.
3.
iI
Mr. Lyle Farmr
Teachers!' Retim
25 9, Fifth Sto
,:—•.St*. Paul -1.9 -Ximae
Dear Sir:
The City Council
of Council File
your Association,
Deco 20,9 1963
7 1
T
St. Paul Teachers' Retirement Fund Association
A Brief Explanation
OF
THE PROPOSED AMENDMENTS
Effective January 1, 1964
This amendment provides clarifying language by adding the
word "payable" in the fourth line of paragraph (c). The reason
for this is to enable the Fund to make a payment to the designated
beneficiary of any amount due after Child Benefits have been paid
if the total Child Benefits are less than the members contribution.
In other words, the difference between the members contribu-
tion and the Child Benefit payments can be made right away rather
-than withholding payment until the child reaches eighteen and then
making the payment.
II
The second amendment raises to fifty percent the amount of the
Fund that may be invested in corporate bonds. We are approaching
.our present twenty -five percent limitation inasmuch as our current
holdings amount to approximately twenty -two percent.
Recently the corporate bond yields have been higher and the
Board of Trustees has invested in this type of bond to improve the
overall return of our Fund.
Our actuary, Mr. A. A. Weinberg of Chicago has indicated that
he is heartily in favor of this change in order to give the Board more
discretion in terms of the type of investments. Raising the limit to
fifty percent does not mean that the Board must go up to the new
limit immediately, or at any time.
The requirements of at least an A rating by two leading security
-rating companies, and the fact that not more than twenty -five
percent may be invested in any one issue would seem to be adequate
.safeguards within which the Board could operate.
These proposed amendments are presently being brought to the
.attention of the City Council for their action.
For the Board of Trustees
LYLE T. FARMER
Secretary
�10
RESOLUTION PROPOSING AMENDMENT
OF BY-LAWS
OF
TEACHERS' RETIREMENT FUND ASSOCIATION
RESCUED, that the Board of Trustees of Teachers' Retirement
Fund Association propose, and it hereby does propose, to the members of
The Association that they adopt the following Resolution Amending By -Laws
of Teachers' Retirement Fund Association:
Resolution Amending By -Laws
of
Teachers' Retirement Fund Association
RESCLVED, that the By -Laws of Teachers' Retirement Fund Asso-
ciation be amended, effective January 1, 1964, in the following respects,
to wit:
I.
That Article IV, Section 3, Paragraph 7, which now-reads:
"Paragraph 7. Cash Refunds of Dues. Commencing on
January 1, 1955, cash refunds of dues shall be determined as follows:
(a) To a member ineligible for a pension, an amount equal to
the total amount of the dues paid by him since January 1, 1940, with-
out interest;
(b) To the beneficiary of a deceased active member who was not
survived by a dependent child, an amount equal to the total amount of
the dues paid by the member since January 1, 1940, without interest;
(c) To the beneficiary of a deceased active member who was
survived by a dependent child, any amount by which the total amount
of the dues paid by the member since January 1, 1940, without interest,
exceeds the total amount of any benefits paid on account of the
dependent childrgn of the member;
(d) To the beneficiary of a deceased retired member who did not
elect a reversionary pension, any amount by which the total amount of
the dues paid by the member since.January 1, 1940, without interest,
exceeds the total amount of the pension paid to the member;
(e) To the estate of a deceased member who did not elect a
reversionary pension and whose beneficiary has not survived the
member, the amount that would have been payable to the beneficiary
if he had survived the member;
(f) To the contingent beneficiary of a deceased retired member
who elected a reversionary pension, any amount by which the total
amount of the dues paid-by the member since January 1, 1940, without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary; and
(g) To the estate of a deceased retired member who elected a
reversionary pension and whose contingent beneficiary has not sur-
vived the member and his beneficiary, any amount by which the total
amount of the dues paid by the member since January 10 1940, without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary."
be amended so as to read:
"Paragraph 7. Cash Refunds of Dues. Commencing on January
1, 1955, cash refunds of dues shall be determined as follows:
(a) To a member ineligible for a pension, an amount equal to the
total amount of the dues paid by him since January 1, 1940, without
interest;
(b) To the beneficiary of a deceased active member who was not
survived by a dependent child, an. amount equal to the total amount of
the dues paid by the member since January 1, 1940, without interest;
(c) To the beneficiary of a deceased active member who was sur-
vived by a dependent child, any amount by which the total amount of
the dues paid by the member since January 1, 1940) without interest,
exceeds the total amount of any benefits payable on account of the
dependent children of the member;
(d) To the beneficiary of a deceased retired member who did not
elect a reversionary pension, any amount by which the total amount of
the dues paid by the member since January 1, 1940, without interest,
exceeds the total amount of the pension paid to the member;
(e) To the estate of a deceased member who did not elect a
reversionary pension and whose beneficiary has not survived the member,
the amount that would have been payable to the beneficiary if he had
survived the member;
'(f) To the contingent beneficiary of a deceased retired member
who elected a reversionary pension, any amount by which the total
amount of the dues paid by the member since January 1, 1940, without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary; and
(g) To the estate of a deceased retired member who elected a
reversionary pension and whose contingent beneficiary has not sur-
vived the member and his beneficiary, any amount by which the total
amount of the dues paid by the member since January 1, 19401 without
interest, exceeds the aggregate amount of the reversionary pension
paid to the member and to the member's beneficiary."
A
2.
II.
That the third Paragraph of Article V, Section 2, which now
reads: °
"In addition, not more than twenty -five per cent of the fund
may be invested and reinvested in bonds of corporations which, at the
time of such investment, are incorporated under the laws of the United
States, of any state thereof, or of the District of Columbia; provided,
however, that such bonds must have at least an "A" rating by two leading
security - rating companies; and provided further, that such investment
shall not be made in more than twenty -five per cent of any one issue
of such bonds."
be amended so as to read:
"In addition, not more than fifty per cent of the fund may
be invested and reinvested in bonds of corporations which, at the
time of such investment, are incorporated under the laws of the
United States, of any state thereof, or of the District of Columbia;
provided, however, that such bonds must have at least an "A" rating
by two leading security - rating companies; and provided further, that
such investment shall not be made in more than twenty -five per cent
of any one issue of such bonds."
RESOLVED, that the foregoing proposed amendment be submitted for
adoption at the annual meeting of the members of the Association to be held
on Thursday, January 160 1964, at four o'clock P.M., at 25 East Fifth Street,
Saint Paul, Minnesota, and that due notice thereof be given to each member
entitled'to vote on the proposed amendment, and to each officer and trustee
regardless of his voting rights.
0
A.
3•
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PROPOSED
Amendments-
TO THE
0.'�4fo:
BY —LAWS 1 is
ST. PAUL TEACHERS', r-
RETIREMENT -FUND
ASSOCIATION
25 E. Fifth Street'
St. Paul, Minn.
Phone 222 -8689
To be approved at the annual meet- -' -•
ing of the members of the Association ,
on January 16, 1964 at 25 E. Fifth 5t.; -I1
Effective January I, 1964
St. Paul Teachers' Retirement Fund Association
A Brief Explanation
OF
THE PROPOSED AMENDMENTS
Effective January 1, 1964
I
This amendment provides clarifying language by adding the
word "payable" in the fourth line of paragraph (c). The reason
for this is to enable the Fund to make a payment to the designated
beneficiary of any amount due after Child Benefits have been paid
if the total Child Benefits are less than the members contribution.
In other words, the difference between the members contribu-
tion and the Child Benefit payments can be made right away rather
than withholding payment until the child reaches eighteen and then
making the payment.
The second amendment raises to fifty percent the amount of the
Fund that may be invested in corporate bonds. We are approaching
our present twenty -five percent limitation inasmuch as our current
holdings amount to approximately twenty -two percent.
Recently the corporate bond yields have been hiLrher and the