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Home My WebLink AboutV (B3 &4 ) Ordinance No. 96-19, relating to the General Employees' Retirement Trust Fund; Ordinance No. 96-20 relating to the Police Officers'/Firefighters' Retirement Trust Fund AGENDA 10-02-96 "CENTER OF GOOD LIVING- PRIDE OF WEST ORANGE" Item V B 3 & 4 I Ocoee S.SCOTT VANDERGRIF1' © 0,V COMMISSIONERS R y a) CITY OCOEE RUSTYJOHNSON. �;r Y OF SCOTT ANDERSON t A SCOTT A.GLASS 150 N.LAKESHORE DRIVE r'�. OCOEE,FLORIDA 34761-2258 JIivt GLEASON �j ''' (407)656-2322 tf� Cfll'MANAGER OF G0 ELLIS SHAPIRO MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: Ellis Shapiro, City Manager DATE: September 13,1996 RE: PROPOSED PENSION ORDINANCES The attached Ordinances for your review have been looked at by Wanda Horton, Finance Director, Peggy Psaledakis, Personnel Director, and myself. • To this end, we have reviewed the approval of these changes, which for the most part represent changes to Federal and State pension laws. Furthermore, our City Attorney has approved the Ordinances as to form. Respectfully Sub• 'tted, -..1 ES:fdg i / b Attachments LAW OFFICES CHRISTIANSEN & DEHNER, P.A. 2975 BEE RIDGE ROAD SCOTT R. CHRISTIANSEN SUITE C TELEPHONE H. LEE DEHNER SARASOTA, FLORIDA 34239 (941)922-0200 TELECOPIER August 30, 1996 (941) 923-5683 Mr. Ellis Shapiro, City Manager City of Ocoee 150 North Lakeshore Drive Ocoee, Florida 34761 Re: City of Ocoee Municipal General Employees' Retirement Trust Fund - City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund Dear Ellis: In accordance with our recent.discussions, I am enclosing completely restated pension ordinances for the designated funds. The amendments contained in the restatements are for state and federal compliance and administration. By copy of this letter, I am requesting Foster&Foster, Inc. to provide an impact statement to the Boards, which must be submitted along with copies of the ordinances to the Division of Retirement prior to second reading. It is my understanding that first reading will be on September 17, and second reading on October 1. If you would like me to attend on October 1, please let me know. Each pension board is in the process of reviewing plan benefits and formulating recommendations for benefit improvements. It is anticipated that these will be presented in January, 1997, to become effective october 1, 1997, if approved by the City Commission. The Boards would like to express their unanimous support for the pending proposal that would enable retired employees to continue health insurance coverage by paying the group insurance premium. It would be greatly appreciated if you would communicate this to the Commission. Thank you for your courtesy and cooperation in working with us on these matters. If you have any questions or comments, please do not hesitate to contact me. Yours very truly, i/\/\-iLt H. Lee Dehner HLD/dm enclosures cc: Ward Foster, with enclosure Jean Grafton, with enclosure v/ Mike Reed, with enclosure ( AGENDA 10-02-96 ! Item VB 3 ORDINANCE NO. q 6-19 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND; AMENDING AND RESTATING IN FILL, ORDINANCE NUMBER 91-08, AS SUBSEQUENTLY AMENDED BY ORDINANCES NUMBER 91-27, 94-05, 94-08, 95 21 AND ORDINANCE NUMBER 95-29; PROVIDING FOR DEFINITIONS; PROVIDING FORMEMBERSHIP;. PROVIDING FOR A BOARD OF TRUSTEES;_PROVIDING FOR FINANCES AND FUND MANAGEMENT;PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR PRE- RETIREMENT DEATH BENEFITS; PROVIDING FOR VESTING OF BENEFITS;PROVIDING OPTIONAL FORMS OF BENEFITS; PROVIDING FOR BENEFICIARIES; PROVIDING CLAIMS PROCEDURES; PROVIDING FOR A ROSTER OF RETIREES; PROVIDING FOR A BOARD ATTORNEY AND PROFESSIONALS; PROVIDING FOR A MAXIMUM PENSION LIMITATION; PROVIDING FOR DISTRIBUTION OF BENEFITS; PROVIDING, MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF THE SYSTEM; PROVIDING FOR EXEMPTION FROM EXECUTION AND NON-ASSIGNABILITY; PROVIDING FOR PENSION VALIDITY; PROVIDING FOR FORFEITURE OF PENSION UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR; INDEMNIFICATION AND DEFENSE OF CLAIMS; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR ABSENCES PURSUANT TO THE FAMILY AND MEDICAL T F A VE ACT; PROVIDING FOR DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS;- PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SECTION 1: Authority. The City Commission of the City of Ocoee has the authority to adopt this ordinance pursuant to Article VII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2: The present ordinances number 91-08, 91-27, 94-05, 94-08, 95-21 and 95-29, adopted by the City Commission of the City of Ocoee, are hereby amended and restated in full as set forth in THE CITY OF OCOEE MUNICIPAL GENERAL-EMPLOYEES' RETIREMENT TRUST FUND, a copy of which is attached hereto, and by this reference made a part hereof. SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4. SeverabiIitv_. In the event any section, subsection, paragraph, sentence, clause, phrase or word of this ordinance shall be held invalid by a court of competent jurisdiction, then such invalidity shall not effect the remaining portions hereof. SECTION 5. Effective Date. This ordinance sbn11 take effect upon second reading and adoption. PASSED AND ADOPTED this day of , 1996. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED September 19 , 1996 READ FIRST TIMESept. 17 1996 READ SECOND TIME AND ADOPTED , 1996 FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS day of , 1996. CHRISTIANSEN & DEFINER, P.A. Special Counsel By: APPROVFT) BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1996 TINDER AGENDA ITEM NO. dm\ococc\gen18-29-96g.ord Page 2 CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND SECTION 1. DEFINITIONS. 1. As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Accumulated Contributions means a Member's own contributions without interest. For those Members who purchase Credited Service with interest or at no cost to the System. any payment representing the amount attributable to Member contributions based on the applicable Member contribution rate, interest and any required actuarially calculated payments for the purchase of such Credited Service, shall be included in Accumulated Contributions. Aci.means the Emplo ee Retirement Income Securi Act of 1974 (P.L. 93-406) $s and any regulations issued thereunder by the Department of Labor and the Internal Revenue Service, as that.Statute and these regulations shall be amended. Actuarial Equivalent means a benefit or amount of equal value, based upon the UP 984 1983 Group Annuity Mortality Table and an interest rate of eight (8%) per annum. Average Final Compensation means one-twelfth (1/12) of the average Salary of the five (5) best years of the last ten (10) years of Credited Service prior to Retirement; termina- tion, or death. A year shall be twelve (.12) consecutive months. Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been designated in writing by the Member and filed with the Board. If no such designation is in effect, or if no person so designated is living, at the time of death of the Member, the Beneficiary shall be the estate of the Member. . Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as trustees of the Fund. City means City of Ocoee, Florida. Code, means the Internal Revenue Code of 1986, as amended from time to time. Credited Service means the total number of years and fractional parts of years of service as a General Employee with Member contributions, when required. omitting intervening years or fractional parts of years when such General Employee Member meet ftet be was not employed by the City as a General Employee. A General Employee Member may voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the employ of the City pending the possibility of being rehired, and remaining without losing credit for the time € active participation as a General Employee that he or she was a Member of the System. If the General Employee Member is not reemployed doc3 not remain employed for a period of three (3) years upon reemployment within five (5) years, then the Accumulated Contributions will be returned upon written request of the Member. Upon return of his or her Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and terminated. In the event that a Member of this System has also accumulated credited service in another pension system maintained by the City, or has a period or periods of previous Page 3 employment as a General Employee, but is not eligible to receive Credited Service for this period or periods of previous employment for benefit calculation purposes. then such other credited service shall be used in determining vesting as provided for in Section 8, and for determining eligibility for early or normal retirement. Such other credited service will not be considered in determining benefits under this System. Unless otherwise provided herein. Golly his or her Credited Service and Salary under this System on or after his or her latest date of membership in this System will be considered for benefit calculation. In addition, any benefit calculation for a Member of this System who is or becomes eligible for a benefit from this System after he or she has become a member of another pension system maintained by the City, shall be based upon the Member's Average Final Compensation, Credited Service and benefit accrual rate as of the date the Member ceases to be a General Employee. The years or fractional parts of years that a General Employee previously served as ., a General Employee with the City of Ocoee during aperiod of previous employment and for which period Accumulated Contributions were withdrawn from the Fund, or for a period of previous employment for which Credited Service has not been otherwise received for benefit calculation purposes., shall be added to his or her years of Credited Service provided that: I The General Employee contributes to the Fund the sum that he or she would have contributed had he or she been a member of the System for the years or fractional parts of years for which he or she is requesting credit plus amounts actuarially deteii,tined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services and administrative costs rendered to the Board in connection with the purchase of years of Credited Service. 2 The request shall be made only once and made by the General Employee on or before the later of twelve (12) months from the effective date of this ordinance or six (6) months from the date of his or her reemployment with the City as a General Employee, whichever is later. 1. Payment by the General Employee of the required amount shall be made within six (6) months of his or her request for credit and shall be made in one'lump sum payment upon receipt of which Credited Service shall be given, 4. There shall be no maximum credit under this section and all years of Credited Service added pursuant to this Section shall count for all purposes, including vesting. Effective Date means October 1, 1991. Fund means the trust fund established herein as part of the System. General Employee means any actively employed person in the regular full-time service of the City, including those in their initial probationary employment period, but not including certified police officers and certified firefighters, employed by the City. For purposes of this Pension System, the City Manager, Assistant City Manager and City Attorney shall not be deemed General Employees, and, therefore, shall not be Members of the Plan System. Member means an actively employed General Employee who fulfills the prescribed participation membership requirements. Benefit improvements which, in the past. have been provided for by amendments to the System adopted by City ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to Members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Page 4 • Plan Year means the twelve (12) month period beginning October 1 and ending Septem e'FF3rOrthe following year. Retiree means a Member who has entered Retirement Status. Retirement means a Member's separation from City employment with eligibility for immediateipt of benefits under the System. Salary means the total mendy compensation reported on the Member's W-2 form plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions. Compensation in excess of limitations set forth in Section 401 (a)(17) of the Code shall be disregarded. The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a Member before the first Plan Year beginning after December 31, 1995. Spouse means the lawful wife or husband of a Member or Retiree at the time of pre- benefits become payable. System means the City of Ocoee Municipal General Employee's Retirement Trust Fund as contained herein and all amendments thereto. 2. Ma3culine Gender. The masculine gender, where-usederein, unle s the and masculine genders. SECTION 2. MEMBERS . 1. Conditions of EIigibility. Subject to A. and B. of this subsection, all General Employees as of the Effective Date, and all future new General Employees, shall become Members of this System - as a condition of employment. A. The following employees, however, may, within niney (90) days of-the a t f tt ' rdin--- his or her employment, whichever is later, notify the Board and the city of his or her election not to be a member of the plan System. Thereupon, it shall be the duty of the Board of Trustees to refund, from the Fund, the full amount without interest, withheld from such employee's salary and deposited in the Fund. Thenceforward, no withholding shall be made from his or her salary and all employees who have given such notice shall be banned from participating in the System. The employees who are eligible to opt out of the System are: a) Finance Director b) Public Works Director • c) City Engineer d) Personnel and Human Relations Director • e) Planning Director f) City Clerk • g) Chief Building Official h) Administrative Services Director B. Any General Ern e within ten (10) days of the effective date of this ordinance, notify the Board and the City of his electon net to be a member of the plan. Thereupon, it shall be the duty of the Board Page 5 of Trustees to refund, from the Fund, the full amount without int c . , r :: given ouch notice shall be banned from participating in the system. 2. Membership Each General Employee shall complete a form prescribed by the Board pro- viding fa- the . A. Acceptance of the term., and conditions of thcRetircmcnt System, and, B. D designation of a Beneficiary or Beneficiaries, , and, 3. Change in Designation of Beneficiary b b the Board. Upon such change, the rights of all b to receive any benefits under the System shall cease. SECTION 3, BOARD OF TRUSTEES. I. The sole and exclusive administration of and responsibility for the proper operation of the retirement stem and for making effective the provisions of this ordinance are hereby vested in a Board of Trustees. The Board of Trustees is hereby designated as the plan administrator. The Board of Trustees shall consisting of five (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the municipality City, who shall be appointed by the Ocoee City Commission, and two of whom shall be full-time General Employee Members of the System, who shall be elected by a majority of the General Employees who are Members of the system. The fifth Trustee shall be chosen for a two (2) year term by a majority of the previous four Trustees as provided for herein, and such person's name shall be submitted to the Ocoee City Commission. Upon receipt of the fifth person's name, the Ocoee City Commission shall, as a ministerial duty, appoint such person to the Board of Trustees as its fifth Trustee. The fifth Trustee shall have the same rights as each of the other four Trustees appointed or elected as herein provided and shall serve a two (2) year term unless ``' o e sooner v ca`ed and may succeed himself in he or she sooner vacates the office. Each resident Trustee shall serve as Trustee for a period of two (2) years, unless he or she sooner vacates the office or is sooner replaced by the Ocoee City Commission at whose pleasure the Trustee he or she shall serve, and may succeed himself as a Trustee. Each General Employee Member Trustee shall serve as Trustee for a period of two (2) years, unless he or she sooner leaves the employment of the City as a General Employee or otherwise vacates his or her office as Trustee, whereupon a successor shall be chosen in the same manner as the departing Trustee. Each General Employee Trustee may succeed himself or herself in office. The Board shall establish and administer the nominating and election procedures for each election. The Board of Trustees shall meet at least quarterly each year. Each Board of Trustees The Board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. 2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The Secretary of the Board shall keep a complete minute book of the actions, proceedings, or hearings of the Board. The Trustees shall not'receive any compensation as such, but may receive expenses and per diem as provided by law. Page 6 3. Each Trustee shall be entitled to one vote on the Board. Three (3) affirmative votes shall be necessary for any decision by the Trustees at any meeting of the Board. A Trustee shall have the right to recuse himself or herself from voting as the result of a conflict of interest provided that he Trustee complies with, the provisions of Section 112.3 i43. Florida Statt,�tes. 4. The Board of Trustcca shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the Retirement System. The compensation of all persons engaged by the Board o and all other expenses of the Board necessary for the operation of the Retirement System shall be paid from the Fund at such rates and in such amounts as the Board of Truax shall agree. 5. The duties and responsibilities of the Board of Truateca shall include, but not necessarily be limited to, the following: A. To construe the provisions of the System and determine all questions arising thereunder. B. To determine all questions relating to eligibility and paftieipaden membership. C. To determine and certify the amount of all retirement allowances or other benefits hereunder. D. To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the System. E. To distribute to Members, at regular intervals, information concerning the System. F. To receive and process all applications for benefits. G. To authorize all payments whatsoever from the Fund, and to notify the disbursing agent, in writing, of approved benefit payments and other expenditures arising through operation of the System and Fund. H. To have performed actuarial studies and valuations at least as often as required by law, and make recommendations regarding any and all changes in the provisions of the System. I. To perform such other duties as are specified in this Ordinance required to prudently administer the System. SECTION 4. FINANCES AND FUND MANAGEMENT. Establishment and Operation of Fund. 1. As part of the System, there is hereby catabliahcd exists the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, including the assets of the prior Municipal General Employee's Retirement Trust Fund. 2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board of Trustcca. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board. Page 7 3. All funds and 3ccuritic3 of the Municipal General Employee's Retirement Trust Fund may be deposited by the Board of Tzuatcea with the Finance Director of the munic ipalitt City, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the mums City. However, any funds and securities so deposited with the Finance Director of the municipalityCity shall be kept in a separate fund by the Finance Director or clearly identified as such funds and securities of the Municipal General Employee's Retirement Trust Fund. In lieu thereof, the Board of Trustees shall deposit the funds and sceuritica of the Municipal General Employee's Retirement Trust Fund in a qualified public depository as defined in §280.02, Flonda Statutes, which depository with regard to such funds sccuritica shall conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment advisor registered under Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all Fund assets. 4. All funds and securities of the System may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: A. Current amounts of Accumulated Contributions of Members on both an individual and aggregate account basis, and B. Receipts and disbursements, and C. Benefit payments, and D. Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the City, and E. All interest, dividends and gains (or losses) whatsoever, and F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. 5. An independent audit shall be performed annually by a certified public accountant for the most recent fiscal year of the City showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. 6. The Board of Trustees shall have the following investment powers and authority: A. The Board of Trustees shall be vested with full legal title to said Fund, subject, however, and in any event to the authonty and power of the Ocoee City Commission to amend or terminate this Trust Fund, provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this System, except as otherwise provided herein. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall Page S be held and administered by the Board or its agent in the Fund and the . Board shall not be required to segregate or invest separately any portion of the Fund. B. All monies paid into or held in the Pefisieis Fund shall be invested and reinvested by the Board and the investment of all or any part of such funds shall be limited to: (1) Annuity and life insurance contracts with life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all of the paftieipafits Members in the Fund shall be entitled under the provisions of this System and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank or a savings/building and loan association insured by the Federal Deposit Insurance Corporation. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. (4) Bonds iaaucd by the State of Iaracl. (5 4) Bonds, stocks, mutual funds, commingled funds administered by National or State Banks or evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia, provided that the security of the corporation is traded on a nationally recognized exchange and holds a rating or ranking in one of the three highest classifications by a major rating or ranking service, and if such investments are made in a commingled fund administered by a state or national bank, then the rating or ranking of each issue in the commingled fund shall hold a rating or ranking within the top three (3) rating or ranking classifications of a major rating or ranking service and international securities shall be permitted in a mutual fund or commingled fund to the extent provided for in subsection 6.C. below. C. The Board of Trustees shall not invest more than five percent (5%) of its assets in the common stock or capital stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed five percent (5%) of the outstanding capital stock of that company; nor shall the aggregate of its investments in common stock, capital stock and convertible bonds at cost exceed fifty percent (50%) of the assets of the Fund. The Board may invest up to ten percent (10%) of the total fund asset value at cost in international securities in a mutual fund or commingled fund. The Board shall provide a report to the City on the international investment experience, • five years from the date this international investment authority is added to the System, in order for the City to consider the advisability of • amending the System by increasing or decreasing the extent of international investments. Page 9 D. The Board of Trusteca may retain in cash and keep unproductive of income such amount of.the Fund as it may deem advisable, having regard for the cash requirements of the System. E. No person or entity shall be liable fer the making, retention or silt of loss or diminishment :fie Fund, that due to his er its oven F E. The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Trust Fund. G F. The Board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitaliza- tions, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the Trustees or with. depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the Fund which it may deem to be to the best interest of the Fund to exercise. H G. The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. H. Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as Trustee under this ordinance, can reasonably be taken or performed only after receipt by it from a Member, the City, or any other entity, of specific informa- tion, certification, direction or instructions, the Board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it. I. Any overpayments or underpayments from the Fund to a Members Retiree or Beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board in such a manner that the Actuarial Equivalent of the benefit to which the Member, Retiree or Beneficiary was correctly entitled to. shall be paid. Overpayments shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the Trust Fund in a prudent manner. K J. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for. Page 10 K. In any application to or proceeding or action in the courts, only the Board shall be a necessary party, and no Member or other person having an interest in the Fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. M L. Any of the foregoing powers and functions reposed in the Board may be performed or carved out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any such agent;provided further, that legal title to said Fund shall always remain in the Board of Truatcca. SECTION 5. CONTRIBUTIONS. 1. Member Contributions. A. Amount. Each Members of the Retirement System shall be required to make regular contributions to the Fund in the amount of five percent (5%) of his or her Salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board of Trustees. at least monthly. The contributions made by each Member to the Fund. shall be designated as employer contributions pursuant to §414(h) of the Code of-9S6. Such designation is contingent upon • the contributions being excluded from the Members' gross income for • Federal Income Tax purposes. For all other purposes of the Rita System, such contributions shall be considered to be Member contributions. B. Method. Such contributions shall be made by payroll deduction. 2. City Contributions. • So long as this System is in effect, the City shall make quarterly contributions to the Trust Fund in an amount equal to the difference in each year, between the total aggregate Member contributions for the year and the total cost for the year, as shown by the most recent actuarial valuation of the System. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability over a forty (40) thirty (30). year period, commencing with the fiscal year in which the Effective Date of this System occurs. 3. Other. Private donations, gifts and contributions may be deposited to the Fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds arising from these sources may be used only for additional benefits for Members, as determined by the Board, and may not be used to reduce what would have otherwise been required City contributions. SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY. 1. Normal Retirement Date. A Member's normal retirement date shall be the first day of the month coincident with, or the next following age sixty (60) regardless of the years of Credited Service. A Member may retire on his or her normal retirement date or on the first day of Page 11 any month thereafter, and each Member shall become 100% vested in his or her accrued benefit on the Member's normal retirement date. Normal retirement under the Plait System is Retirement from employment with the City on or after the normal retirement date. 2. Normal Retirement Benefit. A Member retiring hereunder,on or after his or her normal retirement date shall receive a monthly benefit which shall commence on the first day of the month next following his or her Retirement Date and be continued thereafter during Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. The monthly retirement benefit shall equal two percent (2%) of Average Final Compensation, for each year of Credited Service. 3. Early Retirement Date A Member may retire on his or her early retirement date which shall be the first day of any month coincident with or next following the later of the attainment of age fifty (50) and the completion of five (5) years of Credited Service. Early retirement under the Plea is Retirement from employment with the City on or after the early retirement date and prior to the normal retirement date. 4. Early Retirement Benefit. A Member retiring hereunder on his pr her early retirement date may receive either a deferred or an immediate monthly retirement benefit payable for life as follows: A. A deferred monthly retirement benefit which shall commence on what would have been his or her normal retirement date had he or she remained a General Employee and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be determined in I the same manner as for retirement as his or her normal retirement date except that Credited Service and Average Final Compensation shall be determined as of his or her early retirement date; or B. An immediate monthly retirement benefit which shall commence on his or her early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in paragraph A above, which is actuarially reduced from the amount to which he or she would have been entitled had he or she retired on his or her normal retirement date and with the same number of years of Credited Service as at the time his or her benefits commence and based on his or her Average Final Compensation at that date. • 5. Retirement Incentive Window. A. Members who arc i be at least ge xty two (62) ana who ..ve h b �liGi TV or will have at least fifteen (15) years of Credited Service on or before September 30, 1994 shall be deemed "Eligible Members" and may elect to receive the benefits set forth in this subsection, on the condition that tember 30, 1994. � Eligible Memo n w li b _cthi nd N Retirement Benefit to be computed as set forth in subsection 2 above, Page 12 provided, h ' SECTION 7. PRE-RETIREMENT DEATH. Eli ibili f r R ti n . The-beneficiary- of a-lccca3cci Accumulated Contributions: 2. Dccca3cd General Em I�yeea Ve3ted efi E�1:1 far R -man . For any his or her tc of death, th retie I Prior to.Vestin• or.EliQibility for_Retirement. The Beneficiary of a deceased Member who was not receiving monthly benefits or who was not yet vested or eligible for early or normal retirement shall receive a refund of one-hundred percent (100%) of the Member's Accumulated Contributions. 2. Deceased Members Vested or Elicrible for Retirement. • The Beneficiary of any Member who dies and who, at the date of his or her . death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows; A. If the Member was vested, but not eligible for normal or early retirement, the Beneficiary shall receive a benefit payable for ten years beginning on the date that the deceased Member would have been eligible for early or normal retirement, at the option of the Beneficiary, . The benefit shall be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement. if applicable. The Beneficiary may also elect to receive an immediate benefit, payable for ten Years, which is actuarially reduced to reflect the commencement of benefits prior to the early retirement date. B. If the deceased Member was eligible for normal or early retirement, the Beneficiary shall receive a benefit payable for ten years, beginning on • the first day of the month following the Member's death or at the deceased Member's otherwise normal retirement date, at the option of the Beneficiary. The benefit shall be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement, if applicable. C. A Beneficiary may not elect an optional form of benefit, however, the Board may elect to make a lump sum payment pursuant to Section 10, subsection 7. D. A Beneficiary may, in lieu of any benefit provided for in A or B above, elect to receive a refund of the deceased Member's Accumulated Contributions. Page 13 SECTION 8. VESTING. If a Member terminates his or her employment with the City, either voluntarily or by discharge, and is not eligible for any other benefits under this System, the Member shall be entitled to the following: 1. If the Member has less than five,(5) years Credited Service upon termination,, the Member shall be entitled to a refund of his or her Accumulated Contributions. or the Member may leave it deposited with the Fund. 2. If the Member has five (5) or more years of Credited Service upon termination, the Member shall be entitled to a monthly retirement benefit that i3 the actuarial equivalent ef-the-tuneant--ef-sneh--fetifeinent-ineente-ethenvise , *determined in the same manner as for normal or early retirement and based upon the Member's Credited Service. Average Final Compensation and the benefit accrual rate as of the date of termination. payable to him er her commencing at the Member's otherwise normal or early retirement date, provided he Dr she does not elect to withdraw his or her Accumulated Contributions and provided thei Member survives to his or her normal or early retirement date. If the Member does not withdraw his or her Accumulated Contributions and does not survive to his or her otherwise normal or early retirement date, his or her designated Beneficiary shall be entitled to a benefit as provided herein for a deceased Member, vested or eligible for Retirement under Pre-Retirement Death, 3, Any vested Member of the System whose position is terminated, for whatever reason, but who remains employed by the City in some other capacity, shall have all retirement benefits accrued up to the date of such termination under this System preserved, provided he or she does not elect to withdraw his or her Accumulated Contributions from this System. Such accrued retirement benefits shall be payable at his or her otherwise early (reduced as for early retirement) or normal retirement date hereunder, or later, in accordance with the provisions of this System. SECTION 9 OPTIONAL FORMS OF BENEFITS. • 1. In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified herein, a General Employee Member, upon written request to the Board of Trustees and 3ubmi33ion of evidence of good health (except that such evidence will not be required if such request is made-at least three (r) years of commence ment of retirement income or if such request is made within six (6) months following the effective date of the Plan, if later), and subject to the approval of the Board of Trustees, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: A. A retirement income of a larger monthly amount, payable to the General Employee Member for his or her lifetime only. B. A retirement income of a modified monthly amount, payable to the General Employee Member during the joint lifetime of the General Employee Member and a dependent joint pensioner designated.by the General Employee Member, and following the death of either of them, 100%, 75%, 66-2/3%, or 50% of such monthly amounts payable to the survivor for the lifetime of the survivor. Except where the Retiree's joint pensioner is his or her Spouse, the present value of payments to the Retiree shall not be less than fifty percent (50%) of the total present value of payments to the Retiree and his or her joint pensioner. Page 14 C. Such other amount and form of'retirement payments- or benefits as, in the opinion of the Board of Trustees, of the retiring General Employee. If a Member retires prior to the time at which social security benefits are payable. he or she may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence and a reduced benefit thereafter in order to provide. to as great an extent as possible, a more level retirement allowance during the entire period of Retirement. The amounts payable shall be as recommended by the actuaries for the System, based upon the social, security law in effect at the time of the Member's Retirement. • 2. The General Employee Member, upon electing any option of this Section, will designate the joint pensioner (subsection 1.B., above) or Beneficiary (or Beneficiaries) to receive the benefit, if any, payable under the Plan System in the event of Member's death, and will have the power to change such designation from time to timerbet--at change be subject to approval by the Bo . Such designation will name a joint pensioner or one or more primary Beneficiaries where applicable. If a General Employee Member has elected an option with a joint pensioner or Beneficiary and Member's retirement income benefits have commenced, Member may thereafter change his or her designated Ott-pensioneror Beneficiary at any time, but may only change his or her joint pensioner if the designated joint pensioner and the Member were married at the time of Member's Retirement and are divorced subsequent thereto and the joint pensioner is alive at the time of the change. if a'' `' T f a nts to-such with the Board o Trustees the request for such change. 3. The consent of a General Employee's Member's or Retiree's joint pensioner or Beneficiary to any such change shall not be required. The rights of all previously- designated Beneficiaries to receive benefits under the System shall thereupon cease. �1. ram. .1 T e a• x equest such a�idenee o the ov T Z 5 actuarially redetermined taking into account the age and sex of the former joint pensioner, • g Upon change of a Retiree's Beneficiary or joint pensioner in accordance with this Section. the Board shall adjust the Retiree's monthly benefit by application of actuarial calculations to insure that the benefit paid is the Actuarial Equivalent of the Retiree's then-current benefit. Any such Retiree shall nay the actuarial recalculation expenses and shall make repayment of any overage of previously-paid pension benefits as a result of said recalculations. Each request for a change will be made in writing on a form prepared by the Board of Trustees and on completion will be filed with the Board of Trustees. In the event that no designated Benefici- ary survives the General Employee Retiree, such benefits as are payable in the event of the death of the General Employee Retiree subsequent to-his or her Retirement shall be paid as provided in Section 10. 5. Retirement income payments shall be made under the option elected in accordance with the provisions of this Section and shall be subject to the following limitations: A. If a General Employee Member dies prior to his or her normal retire- ment date or early retirement date, whichever first occurs, no retire- Page 15 ment benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 7. B. If the designated beneficiary (or beneficiaries) or joint pensioner dies before the General Employcc'a Member's Retirement under the Plait System, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the General Employee Member upon his or her, Retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this Section or a new Beneficiary is designated by the Member prior to his or her Retire- ment and within ninety (90) days after the death of the beneficiary. C. If both the retired General Employee Retiree and the Beneficiary (or Beneficiaries) designated by Member or Retiree die before the full payment has been effected under.any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of subsection 1, the Board of Trustees may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Section 10. D. If a General Employee Member continues beyond his pi her normal retirement date pursuant to the provisions of Section 6, subsection 1, and dies prior to his or her actual retirement and while an option made pursuant to the provisions of this Section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a Beneficiary (or Beneficiaries) designated by the General Employee Member in the amount or amounts computed as if the General Employee Member had retired under the option on the date on which his or her death. occurred. 6. A Retiree may not change his or her retirement option after the date of caching or depositing his or her first retirement check. 7. Notwithstanding anything herein to the contrary, the Board in its discretion, may elect to make a lump sum payment to a Member or a Member's Beneficiary in the event that the total commuted value of the remaining monthly income payments to be paid do not exceed Three Thousand Five Hundred Dollars ($3,500.00). Any such payment made to any person pursuant to the power and discretion confined upon the Board of Trustcca by.the preceding sentence shall operate as a complete discharge of all obligations under the Plen System with regard to such Member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. SECTION 10. BENEFICIARIES. I. Each General Employee Member or Retiree may, on a form provided for that purpose, signed and filed with the Board of Trustees, designate a Beneficiary (or Beneficiaries) to receive the benefit, if any, which may be payable in the event of his or her death_ ; and Each designation may be revoked or changed by such General Employee Member or Retiree by signing and filing with the Board of Trustees a new designation-of- beneficiary form. Upon such change, the rights of all previously designated Beneficiaries to receive any benefits under the System shall cease. 2. If a deceased General Employee Member or Retiree fails failed to name a Beneficiary in the manner prescribed in. subsection 1, or if the Beneficiary (or Beneficiaries) Page 16 named by a deceased e ee Member or Retiree predeceased the General Employee Member or Retiree, the death benefit, if any, which may be payable under the Plan System with respect to such deceased General Employee Member or Retiree shall be paid to the estate of the Member or Retiree, , Board of Trustees, either to: A. The wife or dependent children of the General Employee; • , C. Estate of the General Employee. SECTION 11. CLAIMS PR CEDIJRES BEFORE THE BOARD DECISION. 1. If any Member of the system has been: B. Refused benefits under this Plan, and is dissatisfied with the amount of pension the Member is receiving, or believes that he should be entitled to benefits under the Plan, the Member-may, in writing, request the Re • -view his case. The B" ds TT Sri w-th enter 1 from receipt of such written requet and the Board ma • mines such time is necessary for discovery in full and adequate review. ,t. b e . -i. t T..:� Cam. C fit «L �7 f 1. T� 7 b s ': , shall be put in writing. Such written order shall include: • A. The specifie reasons for the denial, including specific references to per based; B. A description of any additional material or information that the Beard feels is necessary for the Member to perfect his claim, together with an explanation of why such material or information is necessary; and C. An explanation of the review procedure next open to the Member. meeting of the Board in which denial of the claim was originally recommended, and any other • documents material to the case; (2) After. such review, the Member and/or his duly authorized representative shall submit their case in writing to the Board and request a hearing. Such submission shall be filed with the Board no later than ninety (90) days after the receipt of the the Page 17 • the Member. The d ..:.. . ... . .- - • - -- • ..... .Y... . . . .•• : - .... f Of 7 . (a) The during the hearing. (b)- Either , lags--Y�'it i titit. limi. here n.—Procedural Board at any time All parties arc to furnish copies of all pleadings to the opposing parties and exch ge-lists called to testify at the hearing, as well as the list of in tended that arc to be introduced, at least forty g. Testimony of wit by all parties. The Chairman, any Member of the f ey for the Board, may direct quest' a ings. Each party shall have the right-to-present-evidence relevant to the issues, Eo Cross examine witnesses, tie impeach witnesses and to respond to- the evidence presented against the party. Each party shall have the ria b a - feeerd-thelweeeedin5 party requesting the court reporter or requesting the b (c) In all cases, unless otherwise provided in this Section, to draw his cntiticxiient to a pension or increased pension benefits- 3. In all proceedings under Subsections I or 2 hereof, the Board shall have the .or discovery prior to and at the proceedings provided for in each paragraph. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. 1. Claims of Affected Persons. A. The Board of Trustees shall grant an initial hearing upon receipt of a written request ("Claim"), on matters which affect the substantial rights Page 18 of any person ("Claimant"), including Members. Retirees, Beneficia- ries, or any person affected by a decision of the Board of Trustees. B. The Board shall review the Claim at an initial hearing and enter an order within ninety (90) days from the date of receipt of the Claim, The Board may extend the time for entering the order at an initial hearing for an additional ninety (90) days if it determines such time is necessary for full discovery and adequate review. The General Counsel and the Claimant may stipulate to further extensions of time, f. It shall be the function of the General Counsel, throughout the claims procedure, to assist the Board in the discovery and presentation of evidence in order to assure that the Board receives all relevant information prior to the Board's decision. D. The Claimant shall have the right to be represented by counsel at any or all times throughout the claims procedure. Z Initial Hearing, A At the initial hearing, the only evidence to be considered by the Board shall be documentary evidence contained in the pension file, including but not limited to, correspondence and evidence received pursuant to paragraph B. B. Other than questions from the Trustees, there will be no taking of additional evidence at the initial hearing, except that the Claimant will be afforded fifteen (15) minutes to make a presentation, which shall be limited to comments and/or arguments as to the evidence or information already contained in the pension file. C. Upon completion of the review of the Claim at the initial hearing, the • Board shall enter an order setting forth its findings and conclusions on the Claim. The written order shall be provided to the Claimant. The order shall include: ). The specific findings and conclusions of the Board, including specific references to pertinent provisions of the System on which such conclusions are based: A description of any additional material or information that the Board may deem necessary for the Claimant to perfect his or her Claim, together with the reasons why such material or information is necessary: and An explanation of the right to a full hearing on the Claim and the time limit in which a full hearing must be requested in writing. D. The decision of the Board at the initial hearing shall not be final until after the time has expired to request a full hearing or, if a full hearing is requested, until the Board makes a decision at the conclusion of the full hearing. Page 19 Full hearing. A.,. Any Claimant may request a full hearing on the issues presented to the Board at an initial hearing and upon which the Board has entered ar, order as provided in subsection 2.C. above, 1. A full hearing must be requested by the Claimant within ninety (90) days of the receipt of the Board's order, The order will be deemed received three (3) days following the date it is mailed to Claimant at the address provided to Bo the ard by Claimant. G Upon receipt of the request for a full hearing and considering the amount of discovery which might be conducted, the Board shall establish a date for the full hearing and cause notice to be given to the, Claimant, The full hearing shall be held within ninety (9() days from the receipt of the request from the Claimant. The full hearing may be, postponed, if necessary and with the consent of the Claimant. Io permit full discovery of the facts. 1 Copies of all documents to be offered into evidence at the full hearing, including depositions, and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the Board and the General. Counsel by the Claimant at least twenty (20) days prior to the full hearing. Documents not furnished to the Board within the prescribed time limit may be excluded from evidence at the full hearing if a reasonable explanation is not provided for the delay in providing the documents. E. A Claimant or the General Counsel may obtain discovery by deposition and/or interrogatories prior to the full hearing. Written notice of any depositions and/or interrogatories shall be given to the General Counsel and the Claimant, F. The costs of any discovery, except discovery requested by the Board or the General Counsel, the appearance of witnesses at the hearing, and the making of a verbatim record of the proceedings shall be the responsibility of the Claimant. G. The Claimant shall be responsible for the appearance of any witnesses which he or she wishes to have testify at the hearing. The Board shall. however, have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at the proceedings provided for herein. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. A. Testimony at the full hearing may be submitted in the form of a deposition. Depositions timely submitted will be part of the record before the Board at the full hearing and will not be read in totality at the full hearing; provided however, that this does not preclude the Claimant or the General Counsel from reading parts of depositions in an opening or closing statement. I. Irrelevant and unduly repetitious evidence shall be excluded. Page 20 L. Any person who knowingly gives false testimony is guilty of a misdemeanor of the first degree, punishable as provided in Section 775,082 or 775,083, Florida Statutes. K The file maintained by the Board is part of the record before the Board at the full hearing. L All proceedings of the Board shall be conducted in public. M. In cases concerning an application for pension benefits, the burden of proof, except as otherwise provided by law, shall be on the Claimant seeking to show entitlement to such benefits. L in cases concerning termination of pension benefits. the burden of proof shall be on the Board. Q. Except as to those records which are exempted from the provisions- of Chapter 119. Florida Statutes, Florida's Public Record Law, records maintained by the Board are open for inspection and/or copying during normal business hours at a reasonable cost for the copying. P Should a Claimant requesting an initial or full hearing decide to appeal... any decision made by the Board, with respect to any matter considered at such hearing, the Claimant requesting an initial or full hearing will need a record of the proceedings and may need to assure that a verbatim record of the proceeding is made. The Claimant requesting an initial or full hearing will be responsible for obtaining a court reporter or otherwise making a record of the proceedings before the Board. Q. The decisions of the Board after the requested full hearing shall be final. and binding. • R. Within fifteen (15) days after making a decision at the full hearings the Board shall enter a final order setting forth its findings and conclusions and a copy of the order shall be provided to the Claimant. Judicial review of decisions of the Board shall be sought by the filing. of a timely petition for writ of certiorari with the Clerk of the Circuit Court, in the appropriate county. 4. Conduct of the Full Hearing. A. The Chairman shall ureside over the hearing and shall rule on all evidentiary, procedural, and other legal questions that arise during the hearing. The Chairman's rulings shall stand unless overruled by a majority of the Trustees present. The Chairman shall open the full hearing by explaining the procedures to be followed. B. The Claimant shall have the right to be represented by counsel or be self-represented. The General Counsel shall advise the Board: C. The Claimant shall be allowed to make an opening statement not to exceed ten (10) minutes. Page 21 • D Testimony of witnesses shall be under oath or affirmation De o itions and affidavits shall be admissible. The Chairman. any Trustee., the General Counsel, the Claimant or the Claimant's counsel, upon recognition by the Chairman, may direct questions to any witness during the proceedings_ E. Either the CIaimant or the General Counsel shall have the right to present evidence relevant to the issues, to cross examine witnesses, to impeach witnesses and to respond to the evidence presented. The Claimant shall be permitted a closing argument not to exceed fifteen (15) minutes. A The Board shall deliberate and make a decision following closing argument and thereafter enter an order as provided herein. SECTION 12. ROSTER OF RETIREES. The Secretary of the Board shall keep a record of all persons enjoying a pension under the provisions of this ordinance in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all Members in such a manner as to show the name, address, date of employment and date _ of termination of employment. SECTION 13. BOARD ATTORNEY AND PROFESSIONALS. The Board may employ independent legal counsel at the Pension Fund's Svstem's expense for the purposes contained herein, together with such other professional, technical, or other advisors as the Board deems necesv ry. SECTION 14. MAXIMUM PENSION. 1. Basic Limitation. Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a Member under this Plan System shall not exceed the lesser of: A S90,000_ adjusted to such calendar year for increasest ^ s+ o"ving accordance with regulations issued by the Secretary of the Treasury under §4-15(d) of the Code), or i 00 of f t M b ' b �� ^ggr t�gat CMr^ pe sation for the three 23 an active Member and had his highest aggregate compensation. "Compensation" shall mean the General Employee's total annual 1 ty Iera1 E 111.Jlo Y ee r 1 For purposes of applying the above limitation, benefits payable in any' form other than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Page 22 Treasury Regulations, so that such benefits are the Actuarial Equivalent of a straight life annuity. For purposes of this Section, the following benefits shall not be taken into account. (1) Any ancillary benefit which is not directly related to retirement income benefits; (2) Any other benefit not required under §415(b)(2) of the R-cvcnLe Code and Regulations thereunder to be taken into account for purposes of the limitation of §415(b)(1) of the Internal Revenue Code. 2. Participation in Other Defined Benefit Plans. The limitation of this Section with respect to any Member who at any time has been a Member in any other defined benefit plan (as defined in §414(j) of the Internal Revenue Code) maintained by the City shall apply as if the total benefits payable under all defined benefit plans in which the Member has been a member were payable from one plan. 3. Adjustments in Limitations. In the event the Member's retirement benefits become payable before age 62, the$90,000 limitation prescribed by this Section shall be reduced in accordance with Regula- tions issued by the Secretary of the Treasury pursuant to the provisions of §415(b) of the Code, but not less than $75,000, if the benefit begins at or after a•e fi - five (55). In the event the Member's retirement benefit becomes payable before age fifty- five (55), the $75,000 limitation shall be reduced from age fifty-five (55) in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of§415(b) of the Internal-Revenue Code. The reductions provided for in the previous two paragraphs shall not be applicable to pre-retirement death benefits paid pursuant to Section 7. - - If the Member's retirement benefit becomes payable after age sixty-five (65), for purposes of determining whether this benefit meets the limitation set forth in subsection 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made using an assumed interest rate of five percent(5%) and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate. 4. Less than Ten Years of Service. The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10) years of Credited Service with the City shall be the amount determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of the Member's years of Credited Service and the denominator of which is ten (10). The reduction provided for in this subsection shall not be applicable to pre-retirement death benefits paid pursuant to Section 7. 5. S 10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limitations set forth in this Section if the benefits payable, with respect to such Member under this Plan System and under all other Page 23 qualified defined benefit pension plans to which the City contributes, do not exceed $10,000 for the applicable Plan Year and for any prior Plan Year and the City has not at any time maintained a qualified defined contribution plan in which the Member participated. &: ocexued Benefit as Q€�v_c D . Nots:sithsat th li ; ;`...� if hereof, has-an accrued benefit as of that date that excec ds the abeve t ons, then-sueh - n determined. 6. Member in Defined Contribution Plan. In any case where a Member under this Plan System is also a member in a "Defined Contribution Plan" as defined in §414(i) of the &1-Reese Code, maintained by the City, the sum of the "Defined Benefit Plan Fraction" and the "Defined Contribution Plan Fraction" (both as defined in §415(e) of the e Code) shall not, subject to the restrictions and exceptions contained in §2004 of the Act, exceed 1.0. This limitation is repealed effective January 1. 2000. g 7. Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Member's benefit under any defined benefit plans in which Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be determined by the trustees and the plan administrator of such other plans, and next, by reducing or allo- cating excess forfeitures for defined contribution plans in which the Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by the trustees and the plan administrator for such other provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the trustees and the plan • administrator of all other plans covering such Member. 9 $. Cost-of-LivinaAdjustments. The limitations as stated in Subsections 1, 2, 3, and 7- 6 herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-living adjust- ments prescribed by the Secretary of the Treasury pursuant to §415(d) of the rnai Revenue Code. -1-0 9. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension payable to a Retiree who becomes a Member of the Plait System and who has not previously participated in such Plan System, on or after January 1, 1980, shall not exceed 100 percent of his or her Average Final Compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. • Page 24 B. No member of the Plan System ' shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the Member is already receiving, or will receive in the future, a retirement benefit or pension from another retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. SECTION 4 15. DISTRIBUTION OF BENEFITS. Notwithstanding any other provision of this Plan System, to the contrary, a form of retirement income payable from this Plan System after the Effective Date of this ordinance, shall satisfy the following conditions: 1. If the retirement income is payable before the Member's death, A. It shall either be distributed or commence to the Member not later than April 1, of the calendar year following the later of the calendar year in which the Member attains age 70-1/2, or the calendar year in which Member retires, B. The distribution shall commence not later than the calendar year defined above; and a), shall be paid over the life of the Member or over the lifetimes of the Member and Spouse, issue or dependent, or b), shall be paid over the period extending not beyond the life expect- ancy of the Member and Spouse, issue or dependent. Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the Member dies before his or her entire interest in the Plan System has been distributed, the remaining portion of such interest in the lax System shall be distributed no less rapidly than under the form of distribution in effect at the time of the Member's death. 2. If the Member's death occurs before the distribution of his or her interest in the Plan System has commenced, Member's entire interest in the Plait System shall be distributed within five (5) years of Member's death, unless it is to be distributed in accordance with the following rules: A. The Member's remaining interest in the Plan System is payable to his or her Spouse, issue or dependent; B. The remaining interest is to be distributed over the life of the Spouse, issue or dependent or over a period not extending beyond the life expectancy of the Spouse, issue or dependent; and C. Such distribution begins within one year of the Member's death unless the Member's Spousc, issue or dependent shall receive the remaining interest in which case the distribution need not begin before the date on which the Member would have attained age 70-1/2 and if the Spouse; issue or dcpcndcnt dies before the distribution to the Spouse ssue-er dependent begins, this Section shall be applied as if the Spousc, lase or dcpcndcnt were the Plan Member. • Page 25 SECTION 4.7 16 MISCELLANEOUS PROVISIONS. • I. Interest of Members in Pen�ipn Puna System. At no time prior to the satisfaction of all liabilities under the Nark System with respect to Retirees and Members and their Spouses or Beneficiaries, shall any part of the corpus or income of the Penske Fund be used,for or diverted to any purpose other than for their exclusive benefit. ''. Liquidation of Pension Fund Assets. A. In the event that contributions of the City arc crmuncntl discontinued or in the event that it becomes Plan, the Board of Trustees shall determine a proposed date of fermi , xt�--nznr--sic aF 4 a nT. 1►f 1. a bi spouses to benefits accrued to the date of any such termination or sha ' €4 the ets N.e.. r 41.. l]ensie Fu a t. Tl t+ lleeat .bated t-cinch time or ttim a• t • a t. th. � a ., cs.i ..a u�.wrraiuic. Trustees. B. Any reserves which shall be released as a result of the application of of Section 18, Subsection 3E, shall be added to the • e Members whose benefits arc not restricted, provided that in the event ded for, such released ( -J b pertien to eJ.ee) 1. ll b n (100%) of the benefits ;,teerwise cancell a ..t-t ,8 value of the benefits so cancelled. of the foregoing paragraphs A and B by the purchase of annuities, by continuing the Trust Fund in existence and malting previsions Trust Fund-. the assets of the Pension Fund applicable to any asset all-persons in such group, the benefits otherwise payable to Such specified by regulations. zf there i3 any b cc remaining in the beneficiaries and surviving spouses arc met, such balance will revert to the City. The actuary shall calculate the allocation of the assets of the Pen Fund de +1. the_ e« dist_ibutie _it.. .t.. V V�^• 1 ♦lei lJ♦ 4YY Vi1i4ll\rG Y►1 a (or provision therefore) shall actually be Act governing termination of "General Employee Pension Benefit Plans" have been, Page 26 fi(1i71F�1�iPr�—jai at a r FYravvs�aaw uuuc�z �g� exceptions-or variances have been, or arc being, obtained. 2. No Reduction of Accrued Benefits No amendment or ordinance shall be adopted by the City Commission of the City of Ocoee which shall have the effect of reducing the then vested accrued benefits of Members or a Member's Beneficiaries. 3_,, Qualification of System. • It is intended that the System will constitute a qualified public pension plan under the applicable provisions of the Code. al now in effect or hereafter amended. Any modification or amendment of the System may be made retroactively, if necessary or appropriate. to qualify or maintain the System as a Plan meeting the requirements of the applicable provisions of the Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder. 4 Use of Forfeitures, Forfeitures arising from terminations of service of Members shall serve only to reduce future City contributions. SECTION 4-8 17. REPEAL OR TERMINATION OF SYSTEM. - 1. This ordinance establishing the System and Fund, and subsequent ordinances pertaining to said System and Fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Member. or Beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be deter- mined to be inadequate. 2. If this ordinance shall be repealed, or if contributions to the System are discontinued, the Board shall continue to administer the System in accordance with the provisions of this ordinance, for the sole benefit of the then Members, any Beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this ordinance who are designated by any of said Members. In the event of repeal, or if contributions to the System are discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and the assets of the System shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof. 3. The following shall be the order of priority for purposes of allocating the assets of the System as of the date of repeal of this Ordinance, or if contributions to the System are discontinued with the date of such discontinuation being determined by the Board. A. Apportionment shall first be made in respect of each retired General Employee Retiree receiving a retirement benefit hereunder on such date, each person receiving a benefit on such date on account of a retired (but since deceased) General Employee Member, and each General Employee Member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the Actuarial Equivalent of such- benefit, based upon the actuarial Page 27 assumptions in use for purposes of the moat recent actuarial valuation, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. B. If there be any asset value remaining after the apportionment under paragraph A, apportionment shall next be made in respect of each General-Etripleyee Member in the service of the City on such date who is vested and who is not entitled to an apportionment under paragraph A, in the amount required to provide the Actuarial Equivalents A above, of the vested portion of the accrued normal retirement benefit (but not less than Accumulated Contributions)., based on the Credited . Service and Average Final Compensation as of such date, and each vested former Member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said Actuarial Equivalent of the vested portion of the accrued normal retirement benefit (but not less than Accumulated Contributions), provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. C. If there be any asset value after the apportionments under paragraphs A and B, apportionment shall be made in respect of each General Emplace:Member in the service of the City on such date who is not entitled to an apportionment under paragraphs A and B in the amount equal to Member's Accumulated Contributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. D. If there be any asset value remaining after the apportionments under paragraphs A, B, and C, apportionment shall lastly be made in respect of each General Employee Member included in paragraph C above to the extent of the Actuarial Equivalent, as dcacnbcd in paragraph A above, of the non-vested accrued normal retirement benefit, less the amount apportioned in paragraph C, based on the Credited Service and average monthly earningJ Average Final Compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. E. In the event that there be asset value remaining after the full apportionment specified in paragraphs A, B, C, and D, such excess shall be returned to the City, less return of the State's contributions to the State, provided that, if the excess is less than the total contributions made by the City and the State to the date of termination such excess shall be divided proportionately to the total contributions made by the City and the State. Page 28 The allocation of the Fund provided for in this Subsection may, as decided by the Board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this Subsection. The Fund may be distributed in one sum to the persons entitled to said, benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Truat Fund may be continued in existence for purposes of subsequent distributions. If, at any time during the first ten (10) years after the effective date of this Ordinance the ordinance originally establishing this System, the System sting be terminated or the full current costs of the System shall not have been met, anything in the System to the contrary notwithstanding, City contributions which may be used for the benefit of any one of the twenty-five (25) highest paid General Employee or Participant of the City Members on the effective date, whose anticipated annual retirement allowance provided by the City's contributions at Member's normal retirement date would exceed $1,500, shall not exceed the greater of either a) $20,000, or b), an amount computed by multiplying the smaller of $10,000 or twenty percent (20%) of such Central— eyee'& Member's average annual earnings during his or her last five (5) years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this paragraph are not then necessary to qualify the System under the Code, this paragraph shall be ineffective without the necessity of further amendment of this ordinance. 4. After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the City. SECTION 4-9 18. EXEMPTION FROM EXECUTION.NON-ASSIGNABILITY. Except as otherwise provided by law. the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the Accumulated contributions and the cash securities in the Fund created under this ordinance are hereby exempted from any state, county or municipal tax of the state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. SECTION 39 19. PENSION VALIDITY. The Board of Truatcaa shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. Sad The Board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or heretofore any person hereafter granted a pension under this ordinance if the same is found to be erroneous, fraudulent or • illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this ordinance be erroneously, improperly or illegally classified. Any overpayments or under payments shall be corrected and paid or • repaid in a reasonable manner determined by the Board. SECTION 2-1 20. FORFEITURE OF PENSION. • 1. Any General Employcc Member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his or her admitted commission, aid or abetment of the following specified offenses, shall forfeit all Page 29 rights and benefits under this Pension Fund, except for the return of his or her Accumulated Contributions as of the date of termination. -1-: Specified offenses are as follows: A. The committing, aiding or abetting of an embezzlement of public funds;. B. The committing, aiding or abetting of any theft by a public officer or employee from employer; C. Bribery in connection with the employment of a public officer or employee; D. Any felony specified in Chapter 838, Florida Statutes; E. The committing of an impeachable offense. 2 F. The committing of any felony by a public officer or employee who willfully and with intent to defraud the public or the public agency, for which he or she acts or in which he or she is employed, of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his or her public office or employment position. A 2. Conviction shall be defined as follows: A an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation; or a conviction by - the Senate of an impeachable offense. B 3. Court shall be defined as follows: A any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the Board of.Trustees shall hold a hearing on which notice shall be given to the Member whose benefits are being considered for forfeiture. Said Member shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the Member shall be afforded a full opportunity to present his or her case against forfeiture. 4. Any Member who has received benefits from the System in excess of his or her Accumulated Contributions after Member's rights were forfeited shall be required to pay back to the Fund the amount of the benefits received in excess of his or her Accumulated Contributions. The Board of Trustcca may implement all legal action necessary to recover such funds. SECTION 2-2 21. INDENDTITICATION. 1. To the extent not covered by insurance contracts in force from time to time, the City shall indemnify, defend and hold harmless members of the Board of Trustccs from all personal liability for damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation, or threat of same, herein referred to as "claims", against these individuals because of acts or circumstances connected with or arising out of their official duty as members of the Board of Trustees.. The City reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will indemnify, defend and hold harmless any members of the Board of Trustcc3 from the judgment, execution, or levy thereon. Page 30 2. This Section shall not be construed so as to relieve any insurance company or other entity liable to defend the claim or liable for payment of the judgment or claim, from any liability, nor does this Section waive any provision of law affording the City immunity from any suit in whole or part, or waive any other substantive or procedural rights the City may have. 3. This Section shall not apply nor shall the City be responsible in any manner to defend or pay for claims arising out of acts or omissions of members of the Board ef Tru3tcc3 which constitute felonies or gross malfeasance or gross misfeasance in office. SECTION 2.3 22. FAMILY AND MEDICAL LEAVE ACT. The fractional parts of the twenty-four (24) month period ending each March 1 that a Member is on leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA) shall be added to his or her Credited Service provided that: 1. The Member contributes to the Fund the sum that he or she would have contributed, based on his or her Salary and the Member contribution rate in effect at the time that the Credited Service is requested, had he or she been a Member of the System for the fractional parts of the twenty-four (24) months ending each.March I for which he or she is requesting credit plus amounts actuarially determined-such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of periods of Credited Service. 2. The request for Credited Service for FMLA leave time for the twenty-four (24) month period prior to each March 1 and payment of-professional fees shall be made on or before March 31. 3. Payment by the Member of the required amount shall be made on or before April 30 for the preceding twenty-four (24) month period ending March 1 and shall be made in one lump sum payment upon receipt of which Credited Service shall be issued. 4. Credited Service purchased pursuant to this section shall not count toward vesting. SECTION 2.4 23. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER 13rSTRIBUTIONS. 1. General. This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the System 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 Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 2. Definitions. A. Eligible Rollover Distribution: An eligible rollover distribution is 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: 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 expectan- cies) of the distributee and the distributee's designated Beneficiary, or Page 31 for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includible in gross income. B. Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, • an annuity plan described in section 403(a) of the Code, or a qualified trust described in section 401(a) of the Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving Spouse, an eligible retirement plan is an individual retirement .account or individual retirement annuity. C. Distributee: A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving Spouse is a distributee with regard to the interest of the Spouse. D. Direct Rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. SECTION 7.-5 24. SEPARATION FROM EMPLOYMENT FOR MILITARY -SERVICE. The years or parts of a year that a Member serves in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, after separation from employment as a General Employee with the City to perform training or service, and reemployment on or after December 12, 1994, shall be added to his or her years of Credited Service for all purposes, including vesting, provided that: • A. The General Employee must return to his or her employment as a General Employee within one (1) year from the earlier of the date of his or her military discharge or his or her release from service. B. The General Employee deposits into the Fund the same sum that the Member would have contributed if he or she had remained a General Employee during his or her absence. The General Employee must deposit all missed contribu- tions within a period equal to three (3) times the period of military service, but not more than five (5) years or he or she will forfeit the right to receive Credited Service for his or her military service pursuant to this Section. C. The maximum credit for military service pursuant to this section shall be five (5) years. D. In order to qualify for the purchase of Credited Service pursuant to this Section, the General Employee must have been discharged or released from service under honorable conditions. E. This Section is intended to meet or exceed the minimum requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L. 103-353). To the extent that this Section does not meet the minimum stancards of USERRA, as it may be amended from time to time, the minimum standards shall apply. dm\ocoee\gen\S-29-96G.ord Page 32 AGENDA 10-02-96 Item V B 4 ORDINANCE NO. o F-'0 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO TliE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS'RETIREMENT TRUST FUND; AMENDING AND RESTATING IN FULL, ORDINANCE NUMBER 91-09, AS SUBSEQUENTLY AMENDED;PROVIDING FOR DEFINITIONS;PROVIDING FOR MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENT; PROVIDING FOR CONTRIBUTIONS; PRO VIDING FOR BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR PRE-RETIREMENT DEATH BENEFITS; PROVIDING FOR DISABILITY BENEFITS; PROVIDING FOR VESTING OF BENEFITS; PROVIDING OPTIONAL FORMS OF BENEFITS; PROVIDING FOR BENEFICIARIES; PROVIDING CLAIMS PROCEDURES; PROVIDING FOR REPORTS TO THE DIVISION OF RETIREMENT; PROVIDING FOR A ROSTER OF RETIREES; PROVIDING FOR A BOARD ATTORNEY AND PROFESSIONALS; PROVIDING FOR A MAXIMUM PENSION LIMITATION;PROVIDING FOR DISTRIBUTION OF BENEFITS; PROVIDING MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF THE SYSTEM; PROVIDING FOR EXEMPTION FROM EXECUTION AND NON- . ASSIGNABILITY; PROVIDING FOR PENSION VALIDITY; PROVIDING FOR FORFEITURE OF PENSION UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR INDEMNIFICATION IICATION AND DEFENSE OF CLAIMS; PROVIDING FOR THE PURCHASE OF CRED1M) SERVICE FOR ABSENCES PURSUANT TO THE FAMILY. - AND MEDICAL LEAVE ACT; PROVIDING FOR DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR PRIOR POLICE OR FIRE SERVICE; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SECTION 1: Authority. The City Commission of the City of Ocoee has the authority to adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2: The present ordinances number 91-09, 94-06 and 94-07, adopted by the City Commission of the City of Ocoee, are hereby amended and restated in full as set forth in THE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND, a copy of which is attached hereto, and by this reference made • a part hereof. SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. ' SECTION 4. Severability. In the event any section, subsection, paragraph, sentence, clause, phrase or word of this ordinance shall be held invalid by a court of competent jurisdiction, then such invalidity shall not affect the remaining portions hereof. SECTION 5. Effective Date. This ordinance shall take effect upon second reading and adoption. PASSED AND ADOPTED this _ day of , 1996. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED Sor,tembAr 19 , 1996 READ FIRST TIME Sept. 17 , 1996 READ SECOND TIME AND ADOPTED , 1996 FOR USE AND RELIANCE ONLY BY THE CITY OF OCOET, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS day of , 1996. • CHRISTIANSEN & DEFINER, P.A. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1996 UNDER AGENDA ITEM NO. CITY OF OCOEE MUNICIPAL POLICE 0IF1 ' AND ' RETIREMENT TRUST FUND SECTION I. DEFINITIONS. 1. As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Accumulated Contributions means a Member's own contributions without interest. For those Members who purchase Credited Service with interest or at no cost to the System, only that portion of any payment representing the amount attributable to Member contributions based on the applicable Member contribution rate, shall be included in Accumulated Contributions. Act means the Employee Retirement Income Security Act of 1974 (P.L. 93-406) ns amended by the Retirement Equity Act of 1984 (P.L. 98 397) and any regulations issued thereunder by the Department of Labor and the Internal Revenue Service, as that Statute and these regulations shall be amended. Actuarial Equivalent means a benefit or amount of equal value, based upon the UP 1984 Mortality Table and an interest rate of eight (8%) per annum. Average Final Compensation means one-twelfth (1/12) of the average Salary of the five (5) best years of the last ten (10) years of Credited Service prior to Retirement, termina- tion, or death, or the career average as a full-time Police Officer or Firefighter, whichever is greater. A year shall be twelve (12) consecutive months. Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been designated in writing by the Member and filed • with the Board. If no such designation is in effect, or if no person so designated is living, at the time of death of the Member, the Beneficiary shall be the estate of the Member. Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as trustees of the Fund. City means City of Ocoee, Florida. Code, means the Internal Revenue Code of 1986, as amended from time to time. Credited Service means the total number of years and fractional parts of years of service as a Police Officer or Firefighter with Member contributions, when required omitting intervening years or fractional parts of years when such Police Officer or Firefighter Member ;taut-be was not employed by the City as a Police Officer or Firefighter. A Police Officer or Firefighter Member may voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the employ of the Police or Fire Department pending the possibility of being rehired reemployed as a Police Officer or Firefighter, anfi remaining employed for a p-eried of net less than three (3) years, without losing credit for • the time of active participation as a Police Officer or Firefighter that he or she was a Member of the System. If the Police Officer or Firefighter docs not remain employed for a period of three (3) years upon reemployment Member who left the employ of the Police -1- or Fire Department should not be reemployed as a Police Officer or Firefighter within five (5) years, then the accumulated contributions_ will be returned upon his or her written request. _T,Tpon return of his or her Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and terminated. However, a Firefightermay receive credit for the years and fractional parts of years of service for which he has withdrawn his. contributions to the Fund for those years and fractional parts of years, if the Firefighter repays into the Fund the contributions he has withdrawn, with interest. within 90 days after,: his reemployment. The years or fractional parts of years that a Police Officer Member or Firefighter serves in the military service of the Armed Forces of the United States or the United States Merchant Marine, voluntarily or involuntarily, by the City and after separation from employment as a Police-0 cer b with the City. for the purpose of going on active duty, shall be added to his or her, years of credited service for all purposes including vesting pursuant to conditions that are required or permitted under: state and federal law, as amended from time to time, provided that the Police Officer Member must return to his or her employment as a Police Officer within one (1) year from the date of his or her military discharge or release from active service under honorable conditions. .:. A. 7e-PeRee-9fige Firefg'efcan.to his employment as a Police a B-- The Police Officer or Firefighter deposits into the Fund the same sum that Member would have contributed had he remained a Police Officer or approximates the b of deposit. eafs, D. Th'e Police 0€fieor er Fifefighter was discharged under honorable conditions. The years or fractional Darts of a year that a Firefighter Member serves in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, after separation from employment as a Firefighter with the City to perform training, or service, and reemployment on or after December 12. 1994. shall be added to his or her years of Credited Service for all purposes, including vesting, provided that: A. The Firefighter Member must return to his or her employment as a Firefighter within one (1) year from the earlier of the date of his or her military discharge or his or her release from service. B. The Firefighter Member deposits into the Fund the same sum that the Firefighter Member would have contributed if he or she had remained a Firefighter during his or her absence. The Firefighter Member must deposit all missed contributions within a period equal to three (3) times the period of military service, but not more than five (5) years or he or she will forfeit the right to receive Credited Service for his or her military service pursuant to this Section. The maximum credit for military service pursuant to this Section shall be five .5l years. I1,. In order to qualify for the purchase of Credited Service pursuant to this Section. the Firefighter Member must have been discharged or released from service under honorable conditions. E, This Section is intended to meet or exceed the minimum requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA), fP.L. 103-353).! To the extent that this Section does not meet the minimum standards of USERRA, as it may be amended from time to time. the minimum randards shall apply, In the event that a Member of this System has also accumulated credited service in another pension system maintained by the City, then such other credited service shall be used in determining vesting as provided for in Section 9, and for determining eligibility for early or normal retirement. Such other credited service will not be considered in determining benefits under this System. Only his or her Credited Service and Salary under this System on or after his or her date of membership in this System will be considered for benefit calculation. In addition, any benefit calculation for a Member of this System who is or becomes eligible for a benefit from this System after he or she has become a member of another pension system maintained by the City, shall be based upon the Member's Average Final Compensation, Credited Service and benefit accrual rate as of the date the Member ceases to be a Police Officer or Firefighter. Effective Date means the date on which this ordinance becomes effective. Firefighter means an actively employed full-time person employed by the City, including his or her initial probationary employment period, who is certified as a Firefighter as a condition of employment in accordance with the provisions of§633.35, Florida Statutes., and whose duty it is to extinguish fires, to protect life and to protect property. Fund means the trust fund established herein as part of the System. Member means an actively employed Police Officer or Firefighter who fulfills the prescribed participation membership requirements. Benefit improvements which, in the past. have been provided for by amendments to the System adopted by City ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to Members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Plan Year means the twelve (12) month period beginning October 1 and ending September 30 of the following year. Police Officer means an actively employed full-time person, employed by the City, including his or her initial probationary employment period, who is certified as a Police Officer as a condition of employment in accordance with the provisions of §943.441395, Florida Statutes, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, traffic, or highway laws of the State of Florida. Retiree means a Member who has entered Retirement Status. Retirement means a Member's separation from City employment with eligibility for immediate receipt of benefits under the System, Salary means the total nteilab% compensation for services rendered to the City as a Police Officer or Firefighter reported on the Polic= ^ c c_'�y r F e fig etw_r'a Member's W-2 �. form plus all tax deferred or tax sheltered items of imancomederived from elective employel payroll deductions or salary reductions. Compensation in excess of the limitations set forth in Section 4O1(a)(17) of the Code shall be disregarded, The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a Member before the first Plan Year beginning atter December 31. 1995. Spouse means the lawful wife or husband of a Member aril death or retirement or Retiree at the time benefits become payable. System means the City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund as contained herein and all amendments thereto. 2. Masculine Gender. b ' . SECTION 2. MEMBEItSFEIT. 1. Conditions of Eligibility. All Police Officers and Firefighters as of the effective date October 1, 1991, and all future new Police Officers and Firelighters, shall become Members of this System as a condition of employment. - B. All future new Police Officers and Firefighters shall be required to medical evidence of a pre existing adverse health condition, resulting from the p hereunder, as related to such pre existing condition. Each declaration shall be-reflected in the minutes of the meeting of the Board at which such declaration was formally adopted or established by the Board. 2. Membership. Each Police Officer or Firefighter shall complete a form prescribed by the Board providing for the following information: A. D designation of a Beneficiary or Beneficiaries_ , and, B. A sworn statement as to prior medical and psychological history, and -4- C. A written release and waiver of rib to obtain, discuss and distribute ailritedieal reeerds te- the Vie - professicnals retained by the Beams 3. Change in Designation of Beneficiary. notice to the Board u?on forms provided by the Board. Upon such change, the rights of all .bm shall cease. SECTION 3, BOARD OF TRUSTEES. I. The sole and exclusive administration of and responsibility for the proper operation of the retirement System and for making effective the provisions of this ordinance are hereby vested in a Board of Trustees, The Board of Trustees is hereby designated as the Dian administrator. The Board shall consists of five (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the menieipalitt City, who shall be appointed by the Ocoee City Commission, and two of whom shall be full time Police Officer or Firefighter Members of the System, who shall be elected by a majority of the Police Officers and Firefighters who are Members of the System. The fifth Trustee shall be chosen for a two (2) year term by a majority of the previous four Trustees as provided for herein, and such person's name shall be submitted to the Ocoee City Commission. Upon receipt of the fifth person's name, the Ocoee City Commission shall, as a ministerial duty, appoint such person to the Board of Trustees as its fifth Trustee. The fifth Trustee shall have the same rights as each of the other four Trustees appointed or elected as herein provided and shall serve a two (2) year term unless the office is he or she sooner vacated and may succeed him se vacates the office. Each resident Trustee shall serve as Trustee for a period of two (2) years, unless he or she sooner vacates the office or is sooner replaced by the Ocoee City Commission at whose pleasure the Trustee he or she shall serve,. , and may succeed himself as a Trustee. Each Police Officer or Firefighter Member Trustee shall serve as Trustee for a period of two (2) years, unless he or she sooner leaves the employment of the City as a Police Officer or Firefighter or otherwise vacates his or her office as Trustee, whereupon a successor Shall be chosen in the same manner as the departing Trustee. Each Police Officer or Firefighter Trustee may succeed himself in office. The Board shall establish and administer the nominating and election procedures for each election. The Board of Trustees shall meet at least quarterly each year. Each The Board of Trustees shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. 2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The Secretary of the Board shall keep a complete minute book of the actions, proceedings, or hearings of the Board. The Trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by law. 3. Each.Trustee shall be entitled to one vote on the Board. Three (3) affirmative- votes shall be necessary for any decision by the Trustees at any meeting of the Board. A Trustee shall have the right to recuse himself from voting as the result of a conflict of interest provided that Trustee states in writing the nature of the conflict. 4. The Board of Trustees shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the Retirement System. The compensation of all persons engaged by the Board of Trustees and all other expenses of the -5- Board necessary for the operation of the System shall be paid from the Fund at such rates and in such amounts as the Board of Trusties shall agree. 5. The duties and responsibilities of the Board of Trustees shall include, but not necessarily be limited to, the following: A. To construe the provisions of the System and determine all questions arising thereunder. B. To determine all questions relating to eligibility and participation membership. C. To determine and certify the amount of all retirement allowances or other benefits hereunder. D. To establish uniform rules and procedures to be followed for adminis- trative purposes, benefit applications and all matters required to administer the System. E. To distribute to Members, at regular intervals, information concerning the System. F. To receive and process all applications for benefits. G. To authorize all payments whatsoever from the Fund, and to notify the disbursing agent, in writing, of approved benefit payments and other expenditures arising through operation of the System and Fund. H. To have performed actuarial studies and at least biennial valuations, at least as often as required by law, and make recommendations regarding any and all changes in the provisions of the System. • I. To perform such other duties as are specified in this Ordinance: required to prudently administer the System. SECTION 4. FINANCES AND FUND MANAGEMENT. Establishment and Operation of Fund. I. As part of the System, there is hereby established exists the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, including the assets of any prior Municipal Police Officers' and Firefighters' Retirement Trust Fund. 2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board of Trustees. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board. 3. All funds and securities of the Municipal Police Officers' and Firefighters' Retirement Trust Fund may be deposited by the Board of Trustees with the Finance Director of the municipality City, acting in a ministerial capacity only, who shall be liable in the same manner and to•the same extent as he or she is liable for the safekeeping of funds for the -6- municipality City. However, any funds and eccuritics so deposited with the Finance Director of the munietpality City shall be kept in a separate fund by the Finance Director or clearly identified as such funds aftel-s of the Municipal Police Officers' and Firefighters' Retirement Trust Fund. In lieu thereof, the Board of Trustees shall deposit the funds am securities of the Municipal Police Officers' and Firefighters' Retirement Trust Fund in a qualified public depository as defined in §280.02, Florida Statutes, which depository with regard to such funds and-seetifitie& shall conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment advisor registered under Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all Fund assets. 4. All funds and securities of the System may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: A. Current amounts of Accumulated Contributions of Members on both an individual and aggregate account basis, and B. Receipts and disbursements, and C. Benefit payments, and D. Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the City, and E. All interest, dividends and gains (or losses) whatsoever, and F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. 5. An independent audit shall be performed annually by a certified public accountant for the most recent fiscal year of the City showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disburse- ments must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. 6. The Board of Trustees shall have the following investment powers and authority: A. The Board of Trustees shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the Ocoee City Commission to amend or terminate this Trust Fund, provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this System, except as otherwise provided herein. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the -7- Board shall not be required to segregate or invest separately any portion of the Fund. B. All monies paid into or held in the Pension Fund shall be invested and reinvested by the Board and the investment of all or any part of such funds shall be limited to: (1) Annuity and life insurance contracts ei with life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all of the Members in the Fund shall be entitled under the provisions of this Plan System and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank or a savings/building and loan association insured by the Federal Deposit Insurance Corporation. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. (4) Bonds issued by the State of Israel. (5) Bonds, 3tock3, commingled funds administered by National or State Banks or evidences of indebtedness issued or guaranteed ed under the law , • any state a , a state or national bank, then the rating of each issue in the • pooled fund shall hold a ratu.g within he tap Tree (3) rating classifications of a major rating service. Stocks, commingled funds administered by national or state banks, mutual funds and bonds or other evidences of indebted- ness. All individually held equity and debt securities and all equity and debt securities in a commingled or mutual fund must be issued or guaranteed by a corporation organized under the laws of the United States. any state or organized territory of the United States, or the District of Columbia, and each equity and debt security must be traded on a nationally recognized ex- change. All debt securities shall hold a rating in one of the three highest classifications by a major rating service, and if such investments are made in a pooled fund administered by a state or national bank or mutual fund, then the rating of each issue in the pooled fund shall hold a rating within the top three (3) rating classifications of a major rating service. No foreign investments shall be permitted whether owned individually or in a commingled or mutual fund. -8- C. The Board of Tru3tcca shall not invest more than five percent (5%) of its assets in the common stocks er capital stock, or convertible securities of any one issuing company, nor shall the aggregate investment in any one issuing company exceed five percent(5%) of the outstanding capital stock of that company; nor shall the aggregate of its investments in common stock, capital stock and convertible is securities at cost exceed fifty percent (50%) of the assets of the Fund. D. The Board of Truatcea may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the System. 7 g f neglig b f g F E. The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Trust Fund. • Fr F. The Board is empowered, but is not required, to vote upon any stocks, • bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitaliza- tions, consolidations, and similar transactions with respect to such • securities; to deposit such stock or other securities in any voting trust or any protective or like committee with.the Trustees or with deposito- ries designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the Fund which it may deem to be to the best interest of the Fund to exercise. G. The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. I H. Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as Trustee under this ordi- nance, can reasonably be taken or performed only after receipt by it from a Member, the City, or any other entity, of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it. I. Any overpayments or underpayments from the Fund to a Member, Retiree or Beneficiary caused by errors of computation shall be -9- adjusted with interest at a rate per annum approved by the Board it, such a manner that the Actuarial Eq pivaIent of the benefit to which the Member, Retiree or Beneficiary was correctly entitled to. shall be Dom. Overpayments, shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the Trust Fund in a prudent manner. I. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for. K. In any application to or proceeding or action in the courts, only the Board shall be a necessary party, and no Member or other person having an interest in the Fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. M L. Any of the foregoing powers and functions reposed in the Board may be performed or carried out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any such a&ent; provided further, that legal title to said Fund shall always remain in the Board of Trustees. • SECTION 5. CONTRIBUTIONS. 1. Member Contributions. A. Amount. Each Members of the Retirement System shall be required to make regninr contributions to the Fund in the amount of five percent (5 0) of his or her Salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board of Trustees at least monthly. The contributions made by each Member to the Fund shall be designated as employer contributions pursuant to §414(h) of the. Inte Revcnuc Code of 1985. Such designation is contingent upon the contributions being excluded from the Members' gross income for Federal Income Tax purposes. For all other purposes of the Plats System, such contributions shall be considered to be Member contribu- tions. B. Method. Such contributions shall be made by payroll deduction. 2. State Contributions. Any monies received or receivable by reason of laws of the State of Florida, for the express purpose of funding and paying for retirement benefits for Police Officers and Firefighters of the City shall be deposited in the Trust Fund comprising part of this System immediately and under no circumstances more than five (5) days after receipt by the City. • 3. City Contributions. So long as this System is in effect, the City shall make quarterly contributions to the Trust Fund in an amount equal to the difference in each year, between the total aggregate Member contributions for the year, plus state contributions for such year, and the -10- • total cost for the year, as shown by the most recent actuarial valuation of the System. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability over a forty (10) thirty ( 0) year period, commencing with the fiscal year in which the effective date of this System. occurs. 4. Other. Private donations, gifts and contributions may be deposited to the Fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds arising from these sources may be used only for additional benefits for Members, as determined by the Board, and may not be used to reduce what would have otherwise been required City contributions.. SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY: 1. Normal Retirement Date. A Member's normal retirement date shall be the first day of the month coincident with, or the next following the earlier of the attainment of age fifty-two (52) and the completion of twenty-five (25) years of credited Service, or age fifty-five (55) and the completion of ten (10) years of Credited Service. A Member may retire on his or her normal retirement date or on the first day of any month thereafter, and each Member shall become 100% vested in his or her accrued benefit on the Member's normal retirement date. Normal retirement under the Plan System is Retirement from employment with the City on or after the normal retirement date. • 2. Normal Retirement Benefit. A Member retiring hereunder on or after his or her normal retirement date shall receive a monthly benefit which shall commence on the first day of the month next following his or her Retirement Date and be continued thereafter during Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any . event. The monthly retirement benefit shall equal two and one-half percent (2.50%) of Average Final Compensation, for each year of Credited Service. 3. Early Retirement Date. A Member may retire on his or her early retirement date which shall be the first day of any month coincident with or next following the later of the attainment of age forty-five (45) and the completion of five (5) years of Credited Service. Early retirement under the Plan System is Retirement from employment with the City on or after the early retirement date and prior to the normal retirement date. 4. Early Retirement Benefit. • A Member retiring hereunder on his or her early retirement date may receive either a deferred or an immediate monthly retirement benefit payable for life as follows: A. A deferred monthly retirement benefit which shall commence on what would have been his or her normal retirement date had he or she remained a Police Officer or Firefighter and shall be continued on the first day of each month thereafter. The amount of each such deferred -11- • monthly retirement benefit shall be determined in the same manner as for retirement as ell his or her normal retirement date except that Credited Service and Average final Compensation shall be determined as of his or her early retirement date; or B. An immediate monthly retirement benefit which shall commence on his or her early retirement date and- shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in paragraph A above, which is actuarially reduced from the amount to which he or she would have been entitled had he or she retired on his or her normal retirement date and with the same number of years of Credited Service as at the time his or her benefits commence and based on his or her Average Final Compensation at that date. A. Members who are or b or will have at least twenty three (23) years of Credited Service er before September 30, 1994 shall be deemed "Eligible Members" and may elect to receive the benefits set forth in this subsection, eft-the condition that they elect to retire on or before September 30, 1994. B. Eligibk Members shall be eligible to retire and receive an unreduced • Normal Retirement Benefit to be co computed as set forth in subsection 2 SECTION 7. PRE-RETIREMENT DEATH. 1. Prior to Vesting or Eligibility for Retirement. The Beneficiary of a deceased Member who was not receiving monthly benefits payments, or who was not yet vested or eligible for early or normal retirement shall receive a refund of one hundred percent (100%) of the Member's Accumulated Contributions. 2. Deceased Police Officers or Firefighters Vested or Eligible for Retirement. For any actively employed Member who was vested or eligible for normal or early retirement as-of his date of death-,--the-benefit payable to beneficiary shall be that normal or early retirement. Deceased Members Vested or Eligible for Retirement. The Beneficiary of any Member who dies and who, at the date of his or her death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows: A. If the Member was vested, but not eligible for normal or early retirement, the Beneficiary shall receive a benefit payable for ten years, beginning on the date that the deceased Member would have been eligible for early or normal retirement, at the option of the Beneficiary. -12- Thej2enefit shall be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement. if applicable The Beneficiary may also elect to receive an immediate benefit. payable for ten years, which is actuarially reduced to reflect the commencement of benefits prior to the early retirement date, L If the deceased Member was eligible for normal or early retirement. the Beneficiary shall receive a benefit payable for ten years beginning MI the first day of the month following the Member's death or at the deceased Member's otherwise normal retirement date, atthe option.. the Beneficiary, The benefit shall be calculated as for normal . retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement, if applicable. A Beneficiary may not elect an optional form of benefit, however, the Board may elect to make a lump sum payment pursuant to Section 10, subsection 7. D A Beneficiary may, in lieu of any benefit provided for in A or B above, elect to receive a refund of the deceased Member's Accumulated Contributions. SECTION 8. DISABILITY. 1. Disability Benefits Gift-- In-Line of Duty. • Any Member who shall become totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impair- ment, to render useful and efficient service as a Police Officer or Firefighter, which disability was directly caused by the performance of his or her duty as a Police Officer or Firefighter, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to two and one-half percent (2.5%) of his or her Average Final Compensation multiplied by the total years of Credited Service, but in any event the minimum amount paid to the Member shall be forty-two percent (42%) of the Average Final Compensation of the Member. Terminated persons, either vested or non-vested, are not eligible for disability benefits. 2 In-Line of Duty Presumptions. A. Presumption. Any condition or impairment of health of a Member caused by tuberculosis, hypertension or heart disease shall be presumed to have been suffered in line of duty unless the contrary is shown by competent evidence, provided that such Member shall have successfully passed a physical examination upon entering into such service, including cardiogram, which examination failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or dis- ability insurance. -13- L Additional Presumption. The presumption provided for in this subpara- graph B. shall apply only to those conditions described in this subpara- graph B. that are diagnosed on or after January I. 1996, 01 Definitions. As used in this subsection 2.B_ the following, definitions apply: 13). "Body fluids" means blood and body fluids containing. visible blood and other body fluids to which universal, precautions for prevention of occupational transmission of blood-borne pathogens. as established by the Center. for Disease Control, apply. For purposes of potential transmission of meningococcal meningitis or tuberculosis. the term "body fluids" includes respiratory, salivary,and sinus fluids, including droplets, sputum, and saliva, mucous, and other fluids through which infectious airborne organisms can be transmitted between persons. al "Emergency rescue or public safety Member" means any Member employed full time by the City as a firefighter, paramedic, emergency medical technician, law enforce- ment officer, or correctional officer who. in the course of employment, runs a high risk of occupational exposure to hepatitis, meningococcal meningitis, or tuberculosis and who is not employed elsewhere in a similar capacity. - However, the term "emergency rescue or public safety - Member" does not include any person employed by a, public hospital licensed under Chapter 395. Florida- Statutes, or any person employed by a subsidiary thereof, - f_d "Hepatitis" means hepatitis A, hepatitis B. hepatitis non- A, hepatitis non-B, hepatitis C. or any other strain of hepatitisgenerally recognized by the medical community, "High risk of occupational exposure" means that risk that is incurred because a person subject to the provisions of this subsection, in performing the basic duties associated with his or her employment: i_ Provides emergency medical treatment in a non- health-care setting where there is a potential for transfer of body fluids between persons: At the site'of an accident, fire, or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instru- ments exposed to body fluids: Engages in the pursuit, apprehension, and arrest of law violators or suspected law violators and, in -14- performing such duties, may be exposed to body fluids: or iv. Is responsible for the custody. and physical restraint when necessary. of prisoners or inmates within a prison. jail, or other criminal detention facility, while on work detail outside the facility, or while being transported and, in performing such duties may be exRosed to body fluids el. "Occupational exposure.' in the case of hepatitis, meningococcal meningitis, or tuberculosis, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection. Presumption, Any emergency rescue or public safety Member who suffers a condition or impairment of health that is caused by hepatitis, meningococcal meningitis. or tuberculosis, that requires medical treatment, and that results in total or partial` disability or death shall be presumed to have a disability suffered in the line of duty. unless the contrary is shown by competent evidence: however, in order to be entitled to the presumption, the Member must, by written affidavit as provided • in Section 92.50, Florida Statutes, verify by written declaration that, to the best of his or her knowledge and belief: .�. In the case of a medical condition caused by or derived from hepatitis, he.has not: Been exposed, through transfer of bodily fluids, to any person known to have sickness or medical conditions derived from hepatitis, outside the scope of his employment: ii. Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with his present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for hepatitis. which tests failed to indicate the presence of hepatitis: iii. Engaged in unsafe sexual practices or other high- risk behavior, as identified by the Centers for Disease Control or the Surgeon General of the United States or had sexual relations with a person known to him to have engaged in such unsafe sexual practices • or other high-risk behavior; or • iv. Used intravenous drugs not prescribed by a physician. -15- 021 In the case of meningococcal meningitis, in the 10 days immediately preceding diagnosis he or she was no( exposed, outside the scope of has or her employment. to any person known to have meningococcal meningitis or known to be an asymptomatic carrier of the disease, • In the case f tuberculosis. in the period of time since the Member's last negative tuberculosis skin test. he or she has not been exposed., outside the scope of his or her employment. to any person known by him or her to have tuberculosis. (a Immunization. Whenever any standard, medically recognized vaccine or other form of immunization or prophylaxis exists for the prevention of a communile disesse for which a, resump- tion is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies estab- lished by the Advisory Committee on Immunization Practices of the U.S. Public Health Service, an emergency rescue or public safety Member may be required by the City to undergo the immunization or prophylaxis unless the Member's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the Member's health, Absent such written declaration, failure or refusal by an emergency rescue or public safety Member to undergo such immunization or prophylaxis disqualifies the Member from the benefits of the presumption. 4 Record of Exposures. The City shall maintain a record of any known or reasonably suspected exposure of an emergency rescue or public safety Member in its employ to the disease described in this section and shall immediately notify the _ Member of such exposure. An emergency rescue or public safety Member shall file an incident or accident report with the City of each instance of known or suspected occupational exposure to hepatitis infection, meningococcal meningitis, or tuberculosis. (2. Required medical tests: preemployment physical. In order to be entitled to the presumption provided by this section; (a). An emergency rescue or public safety Member must. prior to diagnosis, have undergone standard, medically acceptable tests for evidence of the communicable disease for which the presumption is sought. or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection, or, in the case of • hepatitis infection. This paragraph does not apply in the case of meningococcal meningitis. On or after June 15, 1995, an emergency rescue or public safety Member may be required to undergo a -16- • Dreemployment physical examination that tests for and fails to reveal any evidence of hepatitis or tuberculosis. . Disability Benefits 9f€- Not-In-Line of Duty. Any Member with ten (10) years or more Credited Service who shall Ilfwe become totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer or Firefighter, which disability is not directly caused by the per- formance of his or her duties as a Police Officer or Firefighter shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to two and one- half percent (2.5%) of his or her Average Final Compensation multiplied by the total years of Credited Service, but in any event the minimum amount paid to the Member shall be twenty-five percent (25%) of the Average Final Compensation of the Member. Terminated persons. either vested or non-vested. are not eligible•for disability benefits. 34. Conditions Disqualifying Disability Benefits. Each Member who is claiming disability benefits shall establish, to the satisfaction of the Board, that such disability was not occasioned primarily by: A. Excessive or habitual use of any drugs and/or intoxicants, alcohol. B. Injury or disease sustained while willfully and illegally participating in rights, riots and/or civil insurrections. C. Injury or disease sustained while committing a crime. D. Injury or disease sustained while serving in any branch of the Armed Forces. E. Injury or disease sustained after his or her employment as a Police - Officer or Firefighter with the City of Ocoee shall have terminated. F. Willful, wanton or intentional misconduct or gross negligence of the Member. G. Injury or disease sustained by the Member while working for anyone other than the City and arising out of such employment. H. A condition pre-existing the Police Officer's or Firefighter's member- ship in the System. No Member shall be entitled to a disability pension, whether in line of duty or not in line of duty, because of or due to the aggravation of a specific injury, impairment or other medical condition pre-existing at the time of membership in the System, provided that such pre-existing condition and its relationship to a later injury, impairment or other medical condition be established by competent substantial evidence. Nothing herein shall be construed to preclude a disability pension to a Member who, after membership in the System, suffers an injury, impairment or other medical condition different from some other injury, impairment, or other medical condition existing at or prior to said membership. -17- 45. Physical Examination Requirement. A Member shall not become eligible for disability benefits until and unless he or she undergoes a physical examination by a qualified physician or physicians and/or surgeon or surgeons, who shall be selected by the Board for that purpose. The Board shall not select the Member's treating physician or surgeon for this purpose except in an unusual case where the Board determines that it would be reasonable and prudent to do so. Any Peliee—Gfileer—er-Fifefighter Retiree receiving disability benefits under provisions of this ordinance may be periodically re-examined by a qualified physician or physicians and/or surgeon or surgeons who shall be selected by the Board, to determine if such disability has ceased to exist. If the Board finds that the Retiree is no longer permanently and totally disabled to the extent that he or she is unable to render useful and efficient service as a Police Officer or Firefighter, the Board shall recommend to the City that the Retiree be returned to performance of duty as a Police Officer or Firefighter, and the Retiree so returned shall enjoy the same rights that Member he or she had at the time he or she was placed upon pension. In the event the Retiree so ordered to return shall refuse to comply with the order within thirty (30) days from the issuance thereof, Member he or hg shall forfeit the right to his or her pension. The cost of the physical examination and/or re-examination of the Member claiming or Retiree receiving disability benefits shall be borne by the Fund. All other reasonable costs as determined by the Board incident to the physical examination, such as, but not limited to, transportation, meals, hotel accommodations, shall be borne by the Fund. If the Police Officer or Firefighter recovers from disability and reenters the service of the City as a Police Officer or Firefighters his or her service will be deemed to have been continuous, but the period beginning with the first month for which he or she received a disability retirement income payment and ending with the date he or she reentered the service of the City will not be considered as Credited Service for the purposes of the System. The Board shall have the power and authority to make the final decisions regarding all disability claims. 56. DisabiIity Payments. The monthly benefit to which a Member is entitled in the event of the Member's disability retirement shall be payable on the first day of the first month after the Board of Trustees determines such entitlement. However, the monthly retirement income shall be payable as of the date the Board determined such entitlement, and any portion due for a partial month shall be paid together with the first payment. The last payment will. be: A. If the Police Officer or Firefighter Retiree recovers from the disability prior to his or her normal retirement date, the payment due next preceding the date of such recovery, or B. If the Pence-Officer or Firefighter Retiree dies without recovering from disability or attains his or her normal retirement date while still disabled, the payment due next preceding his or her death or the 120th monthly payment, whichever is later. -18- SECTION 9. VESTING. If a Member terminates his or her employment with the Police or Fire Department, either voluntarily or by discharge, and is not eligible for any other benefits under this System, Lk Member shall be entitled to the following: 1. If the Member has less than five (5) years Credited Service upon termination, the Member shall be entitled to a refund of his or her Accumulated Contnbutiona or h Member may leave it deposited with the Fund. 2. If the Member has five (5) or more years of Credited Service upon termination, the Member shall be entitled to a monthly retirement'benefit . determined in the same manner as for normal or early retirement and based upon the Member's Credited Service Average Final Compensation and the benefit accrual rate as of the date of termination, payable to him a her commencing at Member's otherwise normal or earlyretirement date, provided he or she does not elect to withdraw his or her Accumulated ontributions and provided Member survives to his or her otherwise normal or early retirement date. If the Member does not withdraw his or her Accumulated Contributions and does not survive to his or her otherwise normal or early retirement date. his or her designated Beneficiary shall be entitled to a benefit as provided herein for a deceased Member, vested or eligible for retirement under Pre-Retirement Death... 3. Any Police Officer or Firefighter vested Member of the System whose position is terminated, for whatever reason, but who remains employed by the City in some other capacity, shall have all retirement benefits accrued up to the date of such termination under this System preserved, provided he or she does not elect to withdraw his or her Accumulated Contributions from this System. Such accrued retirement benefits shall be payable at his er her otherwise early (reduced as for early retirement) or normal retirement date hereunder, or later, in accordance with the provisions of this System. SECTION 10. OPTIONAL FORMS OF BENEFITS. 1. In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified herein, a Police Officer or Firefighter Member.,upon written request to the Board of Trustee that such evidence will not b to the date of commencement of retirement income or if such request is made within six (6) months following the effective date of the Plan, if later)-, and subject to the approval of the Board of Trustees, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: A. A retirement income of a larger monthly amount, payable to the Police Officer or Firefighter Member for his or her lifetime only. B. A retirement income of a modified monthly amount, payable to the Police Officer or Firefighter Member during the jointlifetime of the • Police Officer or Firefighter Member and a dependent joint pensioner designated by the Police Officer or Firefighter, and following the death of Dither of them the Member, 100%, 75% 66-2/3%, or 50% of such monthly amounts payable to a joint pensioner for his or her lifetime. Except where the Retiree's -19- joint pensioner is his or her. Spouse, the -present value of payments to the Retiree shall not be less than fifty percent(50%) of the total present value of payments to the Retiree and his or her joint pensioner, C. Such other amount and form of retirement payments or benefits as, in the opinion of the Board of Trustees, will best meet the circumstances of the retiring Police Officer or Firefighteb Member. A lump sum benefit will be approved by the Board only in accordance with subsection 7 of this Section 10, 2. The Police Officer or Firefighter Member, upon electing any option of this Section, will designate the joint pensioner (subsection 1.B, above) or Beneficiary (or Benefi- ciaries) to receive the benefit, if any, payable under the Plait System in the event of Member's death, and will have the power to change such designation-from time to time;,--bat deem . of Trustees. Such designation will name a joint. pensioner or one or more primary Beneficiaries where applicable. If a Phi O n Ti "g Member has elected an. option with a joint pensioner or Beneficiaryand Member's retirement income benefits have commenced, Member may thereafter chnge his or her designated Beneficiary at any time, but may only change his or her joint pensioner if the designated joint pensioner and the Member were married at the time of Member's Retirement and are divorced subsequent thereto and the joint pensioner is alive at the time of the change if the Board of Trustees consents to such change designated by Member h h f, •+,- t e B e rd �Tru. e t e g. st fe such change. 3. The consent of a lice GfEeer r Fircfghtcr'a Member's or Retiree's joint pensioner or Beneficiary to any such change shall not be required. The rights of all previously-designated Beneficiaries to receive benefits under the System shall thereupon ceases 4. The Board of Trustees health of the . . joint pensioner that is being removed as it may require and the amount of the retirement b b b b ' ' b • . a 11 1, II F8_.,t ed b f4, F T� ste ,,d •J that ne•designated benefici- ary survives the Police Officer or Firefighter, such benefits as arc payable in the event of provided in Section 11. Upon change of a Retiree's Beneficiary or joint pensioner in accordance with this Section, the Board shall adjust the Retiree's monthly benefit by application of actuarial calculations to insure that the benefit paid is the Actuarial Equivalent of the Retiree's then-current benefit. Any such Retiree shall pay the actuarial recalculation expenses and shall make repayment of any overage of previously-paid pension benefits as a result of said recalculations. Each request for a change will be made in writing on a form prepared by the Board and on completion will be filed with the Board. In the event that no designated Beneficiary survives the Retiree, such benefits as are payable in the event of the death of the Retiree subsequent to his or her Retirement shall be paid as provided in Section 11. -20- 5. Retirement income payments shall be made under the option elected in accordance with the provisions of this Section and Shn11 be subject to the following limitations: A. If a Pelice- Officer or Firefighter Member dies prior to his or her normal retirement date or early retirement date, whichever first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 7. B. If the designated Beneficiary (or Beneficiaries) or joint pensioner dies before the Police Officer'a or Firefighter's Member's Retirement under the Plan System, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the Member upon his or her Retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this Section or a new Beneficiary is designated by•the " r_ �g, Member prior to his es her Retirement and within ninety (90) daya after the death of the beneficiary. C. If both the retired Police Officer or Firefighter Retiree and the Bene- ficiary (or Beneficiaries) designated by Member or Retiree die before • the full payment has been effected under any option providing for • payments for a period certain and life thereafter, made pursuant to the provisions of subsection 1, the Board of Trustees may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Section 11. D. If a Police Officer or Firefighter Member continues beyond his or her normal retirement date pursuant to the provisions of Section 6, subsection 1, and dies prior to his or her actual retirement and while an option made pursuant to the provisions of this Section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a Beneficiary (or Beneficiaries) designated by the Police Ofcer r Firefighter Member in the amount or amounts computed as if the Police Officer or Firefighter Member had retired under the option on the date on which his or her death occurred. 6. A Police Officer or Firefighter Retiree may not change his or her retirement option after the date of cashing or depositing his or her first retirement check. 7. Notwithstanding anything herein to the contrary, the Board in its discretion, may elect to make a lump sum payment to a Member or a Member's Beneficiary in the event that the total commuted value of the remaining monthly income payments to be paid do not exceed Three Thousand Five Hundred Dollars ($3,500.00). Any such payment made to any person pursuant to the power and discretion confined upon the Board of Tru3tec3 by the preceding sentence shall operate as a complete discharge of all obligations under the Plan System with regard to such Member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. -21- SECTION 11. BENEFICIARIES. 1. Each Police Officer or Firefighter Member or Retiree may, on a form provided for that purpose, signed and filed with the Board of Trustees, designate a Beneficiary (or Beneficiaries) to receive the benefit, if any, which may be payable in the event of his or her death.,_;—fie Each designation may be revoked by such Police Officer-erFirc ter Member or Retiree by signing and filing with the Board of Trustees a new designation-of- beneficiary form. Upon such change. the rights of all previously designated Beneficiaries to receive any benefits under the System shall cease. 2. If a deceased Member or Retiree failed to name a Beneficiary in the manner prescribed in zubsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Police Officer or Firefighter predeceases Member or Retiree predeceased the Police Officer or Firefighter Member or Retiree, the death benefit, if any, which may be payable under the PAS System with respect to such deceased Police. Officer or Firefighter Member or Retiree may shall, be paid to the estate of the Member or Retiree. , in the discretion of the Boor of T uste ei r • : A. The wife er dependent ehildren of the Police Officer or Firefighter; B. The dependent living parents of the Police Officer or Firefighter; or C. Estate of the Police Officer or Firefighter. SECTION 12. CLAIMS PROCEDURES . 1. If any Member of the System has been: A. Placed on pension under the tcrms and provisions of this ordinance for disability, or of years to entitle him to a pension, or C. Refused benefits under this Plan, and is-dissatisfied—Frith-the-amount of pension the Member is receivin„ or believes that he should be entitled to benefits under the Plan, the Member may, in writing, request the Board to ;L ase. -1: e Board ;hell-rre iev `'-e and enter such order-hereon as it deems right and proper within sixty (60) days from receipt of such written request and the receipt Board may extend the time for c by an additional forty five (45) days if 2. In the event that the order from the Board denies the claim for a change in such benefits or denies the claim for benefits, the order of the Board shall be put in writing. Such written order shall include: • A. The specific reasons for the denial, including specific references to per tincnt provisions of the Retirement System on which such denial is based; -EC- otp DAM! IMF .nrd Ting 'and gyp. tstusas poWuasozd oouop!Ao puodsoi of pug sossz'u3un notadun `sossoulyA otrtursxa ssozo `sons; atp lusAroiaa oouop!Aa luocoad o3 ingy oikun js fed tiara •satx otp ptitr luuuitsio otp otp zoj fouzoiu otp `pzaog alp jo iogmz T Airs `utau.rmnD 3LI,I. •sot d -ar Aq Io suoprsodo[ -uoprtuzgye Io tptia aopun-og urns. sassau Ttnn yo Auourgsos, •iuuuoq otp Arip (St) o^Tu X.1o3 loaf Ts `poonpouur oq o} popuolut on Trip sTtgnpio Jo 1s3 otp sB jionn sg ` urzsoq otp Tu•Fgpsol o: papa jo-• ag--so?i d ' •ouiu Kum g otp ;o ugul. t3 otp Aq po oop-oq it cuopow puoid oig Auto `pasog otp zo 3uuum p otp Timer zotpi3 {cl) war pug 2u4son NI nano optsoad Bans uiuurtBti3 on" (s) •pug oq urns uotcraop tons `pus uotcroop tionc oap oqj -zoguroyi otp-jo lsonbar arp uo trrgtznl ttr 2ur[na pug s oxsus `aurssoq otp po;uasoad posy otp zoptstioo.ems pzsog 6tj, •osso ztotp luasoid 2trgroti pompanos Mons fit? noddy uotp Amu a spmux • .,_ oidat pozrsotpns Amp sni zo/pus zogtuay i ouj, •zogtuoy on) Gp Jo lafaacia e Au uetp 301131 ou p313og a zpt poIg oq Iris uozesztugns bons •4zweoq t3 lsonboa ' poirzotptit: AInp sits zo- iogtuoy otp .`MOTAoz Boris zoud (I) r,b....�....a record the-proceedings with the cosh-be-bail :-b party rcqucsting thcrwisc provided in this Seetien: the burden of proof shall be en the eft who-seeks t ,pip V , liter el S. In all proceedings under Sebsee 1 or 2-hers t rd sha'l a,.v e 6 b b na_c b Florida statutes. 1, Claims of Affected Persons. A The Board of Trustees shall grant an initial hearing upon receipt of a written request("Claim"), on matters which affect the substantial rights of any person ( Claim i ant ) including Members. Retirees. Beneficia- ries, or any person affected by a decision of the Board of Trustees. B. The Board shall review the Claim at an initial hearing and enter an order within ninety (90) days from the date of receipt of the Claim and, _ in the case of disability claims, receipt by the Board of a written _ medical release authorization in a form approved by the General Counsel and a completed set of interrogatories prepared by the General Counsel and provided to the Claimant. The Board may extend the time for entering the order at an initial hearing for an additional ninety (90) • days if it determines such time is necessary for full discovery and adequate review. The General Counsel and the Claimant may stipulate to further extensions of time. C. It shall be the function of the General Counsel, throughout the claims procedure, to assist the Board in the discovery and presentation of evidence in order to assure that the Board receives all relevant information prior to the Board's decision. D. The Claimant shall have the right to be represented by counsel at any or all times throughout the claims procedure. 2 Initial Hearing. A. At the initial hearing, the only evidence to be considered by the Board shall be documentary evidence contained in the pension file, including but not limited to, correspondence, medical records and reports of treating physicians and/or examining physicians and evidence received pursuant to paragraph B. B ther than questions from the Trustees there will be ngjaking of additional evidence at the initial hearing, except that the Claimant will be afforded fifteen (15) minutes to make a presentation, which shall be limited to comments and/or arguments as to the evidence or information already contained in the pension file, including the report of the examining physician. Upon completion of the review of the Claim at the initial hearing, the Board shall enter an order setting forth its findings and conclusions oil the Claim. The written order shall be provided to the Claimant. The, order shall include: The specific findings and conclusions of the Board, including specific references to pertinent provisions of the System on which such conclusions are based: A description of any additional material or information that the Board may deem necessary for the Claimant to perfect his or her Claim, together with the reasons why such material or information is necessary: and • ai An explanation of the right to a full hearing on the Claim and the time limit in which a full hearing must be requested in writing. D. The decision of the Board at the initial hearing shall not be final until after the time has expired to request a full hearing or if a full hearing is requested, until the Board makes a decision at the conclusion of the full hearing. Full hearing. • A. Any Claimant may request a full hearing on the issues presented to the Board at an initial hearing and upon which the Board has entered an order as provided in subsection 2.C. above. B. A full hearing must be requested by the Claimant within ninety (90) days of the receipt of the Board's order. The order will be deemed received three (3) days following the date it is mailed to Claimant at the address provided to the Board by Claimant. C. Upon receipt of the request for a full hearing and considering the amount of discovery which might be conducted, the Board shall establish a date for the full hearing and cause notice to be given to the Claimant. The full hearing shall be held within ninety (90) days from the receipt of the request from the Claimant. The full hearing may be postponed, if necessary and with the consent of the Claimant, to permit full discovery of the facts. D. Copies of all documents to be offered into evidence at the full hearing, including depositions, and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the -25- • Board and the General Counsel by the Claimant at least twenty (20) days prior to the full hearing, Documents not furnished to the Board within the prescribed time limit may be excluded from evidence at the full hearing if a reasonable explanation is not provided for the delay in providing the documents. A Claimant or the General Counsel may obtain discovery by,deposition and/or interrogatories prior to the full hearing, Written notice of any depositions and/or interrogatories shall be given to the General Counsel, and the Claimant. F The costs of anydiscovery, except discovery requested b_y the Board. or the General ounsel. the appearance of witnesses at the hearing, and .. the making of a verbatim record of the proceedings shall be the responsibility of the Claimant. The Claimant shall be responsible for the appearance of any witnesses which he or she wishes to have testify at the hearing. The Board shall. however, have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at the proceedings provided for herein. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. H. Testimony at the full hearing may be submitted in the form of a deposition. Depositions timely submitted will be part of the record before the Board at the full hearin• and will not be read in totality at the full hearing: provided however, that this does not preclude the CIaimant or the General Counsel from reading parts of depositions in an opening or closing statement. • Irrelevant and unduly repetitious evidence shall be excluded. .. - '- I. Any person who knowingly gives false testimony is guilty of a misdemeanor of the first degree, punishable as provided in Section 775.082 or 775.083, Florida Statutes. K. The file maintained by the Board, including but not limited to various medical reports therein, is part of the record before the Board at the full hearing. L. All proceedings of the Board shall be conducted in public. M. In cases concerning an application for pension benefits. including applications for disability retirement benefits. the burden of proof. except as otherwise provided by law,shall be on the Claimant seeking to show entitlement to such benefits. N. In cases concerning termination of pension benefits including re- examination of Retirees receiving disability retirement benefits, the • burden of proof shall be on the Board. -26- Q. Except as to those records which are exempted from the provisions of Chapter 119. Florida Statutes. Florida's Public Record Law. records maintained by the Board are open for inspection and/or copying during normal business hours at a reasonable cost for the copying. Should a Claimant requesting an initial or full hearing decide to appeal any decision made by the Board, with respect to any matter considered at such hearing, the CIaimant requesting an initial or full hearing will need a record of the proceedings and may need to assure that a, verbatim record of the proceeding is made. The Claimant requesting an initial or full hearing will be responsible for obtaining a court reporter or otherwise making a record of the proceedings before the Board. Q6 The decisions of the Board after the requested full hearing shall be final and binding. R Within fifteen (15) days after making a decision at the full hearing, the Board shall enter a final order setting forth its findings and conclusions and a copy of the order shall be provided to the Claimant. Judicial review of decisions of the Board shall be sought by the filing of a timely petition for writ of certiorari with the Clerk of the Circuit Court. in the appropriate county, 4. Conduct of the Full Hearing. A. The Chairman shall preside over the hearing and shall rule on all evidentiary, procedural. and other legal questions that arise during the hearing. The Chairman's rulings shall stand unless overruled by a majority of the Trustees present. The Chairman shall open the full . • hearing by explaining the procedures to be followed. B. The Claimant shall have the right to be represented by counsel or be self-represented. The General Counsel shall advise the Board. C. The CIaimant shall be allowed to make an opening statement not to exceed ten (10) minutes. D. Testimony of witnesses shall be under oath or affirmation. Depositions and affidavits shall be admissible. E. The Chairman, any Trustee, the General Counsel, the Claimant or the Claimant's counsel, upon recognition by the Chairman, may direct questions to any witness during the proceedings. F. Either the Claimant or the General Counsel shall have the right to present evidence relevant to the issues, to cross examine witnesses, to impeach witnesses and to respond to the evidence presented. G. The Claimant shall be permitted a closing argument not to exceed fifteen (15) minutes. -27- • • H The Board shall deliberate and make a d cision following closing argument and thereafter enter an order as provided herein. Disability Claims - Additional Procedures. A All applications_for disability pensions shall be in writing, Forms for such applications may be provided by the Board. B Upon receipt of the application for disability, the General Counsel will provide the Claimant with a_set of interrogatories or questions to be answered under oath and a medical re.leAsh documents will be completed by the Claimant and returned to the. General Counsel. Upon receipt of the properly completed interrogatories and medical release authorization, the General Counsel will request medical records from all relevant treating physicians: personnel records from the employer, copies of relevant workers' compensation records, and copies of other records deemed to be relevant to the Claim. The Board shall pay. from the Fund, the cost of any medical examinations required by the Board and for copies of medical records. D. The General Counsel will_if authorized by the Board. upon receipt of the medical records from the treating physicians, schedule an indepen- dent medical examination or examinations (IME) with an appropriate independent examining physician or physicians who will be asked to render an opinion about Claimant's physical condition as it relates to the claimed disability. E Upon receipt of the IME report or reports from the examining Physician or physicians, the General Counsel will provide all records of treating physicians, relevant workman's compensation claims records, the independent medical evaluation, and all other relevant documents to the Board for inclusion in the pension file and the Board shall then schedule the initial hearing. SECTION 13. REPORTS TO DEP.A u DIVISION OF RETIREMENT. Each year and no later than March 15th, the Chairman of the Board shall file a report with the Department of Insurance Division of Retirement containing the following: 1. Whether in fact the Municipality City is in compliance with the provisions of Chapters 175 and 185, Florida Statutes. 2. A certified statement of accounting for the most recent fiscal year of the Municipality City (or an independent audit by a certified public accountant if required by the Division of Retirement) showing a detailed listing of assets and methods used to value them and a statement of all income and disbursements during the year. Such income and disbursements shall be reconciled with the assets at the beginning and end of the year. -28- 3. A statistical exhibit showing the number of Police Officers and Firefighters on the force of the Municipality City, the number included in the Pension Plan, the number of Police Officers and Firefighters ineligible, classified according to the reasons for their being ineligible, and the number of disabled and retired Police Officers and Firefighters Retirees and their beneficiaries receiving pension payments and the amounts of annual retirement income or pension payments being received by them. 4. A statement of the amount the Munieipality City has contributed to the Pension Fund for the preceding plan year, and the amount the Mumeipality City will contribute to the Pension Fund for the current plan year. 5. If any benefits are insured with a commercial insurance company, the report shall include a statement of the relationship of the insured benefits to the benefits provided by this Ordinance. This report shall also contain information about the insurer, basis of premium rates, mortality table, interest rates and method used in valuating valuing retirement benefits. 6. An actuarial valuation of the retirement Plan System s cemmcncing &e ` as provided for i rn n Section 3. Such valuation shall be prepared by an enrolled actuary who is enrolled under Subtitle C of Title 3 of the Employee Retirement Income Security Act of 1974 and who is a member of the Society of Actuaries or the American Academy of Actuaries. SECTION 14. ROSTER OF RETIREES. The Secretary of the Board shall keep a record of all persons enjoying a pension under the provisions of this Ordinance in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all Police Officers and Firefighters employed by the Municipality Members and Retirees in such a manner as to show the name, address, date of employment and date such employment is terminated of termination of employment. SECTION 15. BOARD ATTORNEY AND PROFESSIONALS. - - The Board may employ independent legal counsel at the Pension Fund's Svstem's expense for the purposes contained herein, together with such other professional, technical, or other advisors as the Board deems necessary. SECTION 16. MAXIMUM PENSION. 1. Basic Limitation. Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a Member under this Plan System shall not exceed the lesser of: A $90,000_ (or such lesser dollar amount as may be allowable for any calendar year pursuant to §415(b) of the Internal Revenue Code, as adjusted in such calendar year for - the at e f living regulations under §415(d) of the Code), or -29- B. 100% of the Member's average aggregate Compensation for the three b comppecnsation. "Compensation" shall mean the Pollee Officer's or Firefighter's total annual remuneration paid el' accrued for personal: services g the plan year as reported on- the Police Officer's or Firefighter's W 2. For purposes of applying the above limitation, benefits payable in any form other than a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the Actuarial Equivalent of a straight life annuity. For purposes of this Section, the following benefits shall not be taken into account: (1) Any ancillary benefit which is not directly related to retirement income benefits; (2) Any other benefit not required under §415(b)(2) of the Internal Revenue Code and Regulations thereunder to be taken into account for purposes of the limitation of §415(b)(1) of the Internal Revenue Code. 2. Participation in Other Defined Benefit Plans. The limitation of this Section with respect to any Member who at any time has been a member in any other defined benefit Plan (as defined in §414(j) of the Internal Revenue Code) maintained by the City shall apply as if the total benefits payable under all defined benefit plans in which the Member has been a member were payable from one plan. 3. Adjustments in Limitations. In the event the Member's retirement benefits become payable before age 62, the $90,000 limitation prescribed by this Section shall be reduced in accordance with Regula- tions issued by the Secretary of the Treasury pursuant to the provisions of §415(b) of the Internal Revenue Code, but not less than $75,000, if the benefit begins at or after age fifty- five (55). In the event the Member's retirement benefit becomes payable before age fifty- five (55), the $75,000 limitation shall be reduced from age fifty-five (55) in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of§415(b) of the Internal Revenue Code. A Member with at least fifteen (15) years of Credited Service may not have the benefit reduced below S50,000.00. The reductions provided for in the previous two paragraphs shall not be applicable to disability benefits paid pursuant to Section 8, or pre-retirement death benefits paid pursuant to Section 7. If the Member's retirement benefit becomes payable after age sixty-five (65) for purposes of determining whether this benefit meets the limitation set forth in Subsection 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty-five .(651. This adjustment shall be made using an.assumed interest rate of five percent (5%) and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate. -30- • 4. Less than Ten Years of Service. The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10) years of Credited Service with the City shall be the amount determined under Subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of the Member's years of Credited Service and the denominator of which is ten (10). The reduction provided for in this subsection shall not be applicable to disability benefits paid pursuant to Section 8, or pre-retirement death benefits paid pursuant to Section 7, 5. $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limitations set forth in this Section if the benefits payable, with respect to such Member under this Pleat System and under all other qualified defined benefit pension plans to which the City contributes, do not exceed $10,000 for the applicable Plan Year and for-any prior Plan Year and the City has not at any time maintained a qualified defined contribution plan in which the Member participated. 6. Accrued Benefit as of Effective Date. * aL. S. 1' .a..a:.+ '�_..— 1►,r * e• .r rr'...a:. ..a... S' S hereof, has an accrued benefit as of that date that exceeds the above limitations, then such limitations shall equal such accrued benefit. However, no cost of liv' b dctcrminc d. 7- 6. Member in Defined Contribution Plan. In any case where a Member under this Plait System is also a member in a "Defined Contribution Plan" as defined in §414(i) of the Internal Revenue Code, maintained by the City, the sum of the "Defined Benefit Plan Fraction" and the "Defined Contribution Plan Fraction" (both as defined in §415(e) of the Code) shall not, subject to the restrictions and exceptions contained in §2004 of the Act, exceed 1.0. This limitation is repealed effective January 1. 2000. $ 7. Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Member's benefit under any defined benefit plans in which Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be determined by the Trustees Board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the Member par- ticipated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by .the Trustees Board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agree- ment of the Trustees Board and the plan administrator of all other plans covering such Member. • -31- • 9 a. Cost-of-Living Adjustments. The limitations as stated in Subsections 1, 2, 3, and 5 herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-living adjust- ments prescribed by the Secretary of the Treasury pursuant to §415(d) of the Internet Revenue Code. 19 2. . Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension payable to a Retiree who becomes a Member of the Plan System and who has not previously participated in such Plan System, on or after January 1, 1980, shall not exceed 100 percent of his or her Average final Compensation. However, nothing contained in this Section shall apply to supplemental • retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. B. No Member of the Plan System shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the Member is already receiving, or will receive in the future, a retirement benefit or pension from another retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. SECTION 17. COMMENCEMENT ENT OF BENEPTTS. 1. Unless the Member otherwise elects, with such election being in writing and delivered to the n a he-f ti n€ dat" on which t� t • er sh tt t i t the 60 f Fh, nl v a wh:el tc.e J V art A. The attainment by the Member of age 65; B. The 10th annivo'aary of the date on which the Member commenced participation in the Plan; or C. The termination of the Member's service with the City. 2. If the payment of a Member's rent-ineenne eannot begin on the date required under Subsection 1 of this Section because the Trustees either cannot ascertain the amount of the Member's retirement income or cannot locate the Member after mnldng reasonable efforts to do so, the payment of the Member's benefit shall begin not later than sixty (60} days after the date on which the amount can be ascertained or the Member is which is not earlier than the date on which the payment of the Member's benefit was Section. -32- SECTION 18 17 DISTRIBUTION OF BENEFITS. Notwithstanding any other provision of this Plea System to the contrary, a form of retirement income payable from this Plait System after October 1. 1991, shall satisfy the following conditions: 1. If the retirement income is payable before the Member's death, A. It shall either be distributed or commence to the Member not later than April 1, of the calendar year following the later of the calendar year in which the Member attains age 70-1/2, or the calendar year in which Member retires, B. The distribution shall commence not later than the calendar year defined above; and a), shall be paid over the life of the Member or over the lifetimes of the Member and Spouse, issue or dependent, or b), shall be paid over the period extending not beyond the life expect ancy of the Member and Spouse, issue or dependent. Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the Member dies before his or her entire interest in the Pit System has been distributed, the remaining portion of such interest in the Pit System shall be distributed no less rapidly than under the form of distribution in effect at the time of the Member's death. 2 If the Member's death occurs before the distribution of his or her interest in the Plan System has commenced, Member's entire interest in the Plan System shall be distributed within five (5) years of Member's death, unless it is to be distributed in accordance with the following rules: A. The Member's remaining interest in the Plan System is payable to his or her Spouse, issue or dependent; B. The remaining interest is to be distributed over the life of the Spouse, issue or dependent or over a period not extending beyond the life expectancy of the Spouse, issue or dependent; and C. Such distribution begins within one year of the Member's death unless the Member's Spouse, issue or dependent shall receive the remaining interest in which case the distribution need not begin before the date on which the Member would have attained age 70-1/2 and if the Spouse; issue or dependent dies before the distribution to the Spouse, issue or dependent begins, this Section shall be applied as if the Spouse, issue or dependent were the Plan Member. SECTION 4-9 18. MISCELLANEOUS PROVISIONS. • 1. Interest of Members in Pension Fund System. At no time prior to the satisfaction of all liabilities under the Plitn System with respect to Retirees and Members and their.Spouses or Beneficiaries, shall any part of the corpus or income of the Pensien Fund be used for or diverted to any purpose other than for their exclusive benefit. 2. Liquidation of Pension Fund Assets. A. In the event that con ' -:- :. - � u - - ..� the nt that i. be eccssary for _. :. . - _ 9 ble requirements of the Act governing termination. The rights of > > ed—afilett b distributed at. such time or times as is . Trustees. B. Any reserves which shall he released as a - --.. - . :_ : : the provisions of Section 20, Subsection 3E, shall be as dcd to the Members whose benefits ar that all of the benefits accrued to-such Mcvn,bers arc fully provided for, such released reserves (or any remaining portion thereof) shall be allo (ICO%) of the benefits otherwise cancelled pursuant to Section 20, Subsection 3E, allocating such remaining funds in proportien to the value of the benefits so cancelled. • a of the foregoing paragraphs A and B by the purchaise of annuities, by continuing the Trust Fund in existence and malting provisions thcrcun ry w.J all persons in such group, the benefits otherwise payable to such persons shall be reduced proportionately cxcc.t as may otherwise be beneficiaries and surviving spouses arc met, such balance will revert to the City. The actu Pension Fund in accordance with the asset distribution priority cate assets and payment of benefits (or provision therefore) shall actually be termination of "Police Officer and Firefighter Pension Benefit Plans" have been, or arc being, complied with or that appropriate authorize 7 g, obtained. -34- r2. No Reduction of Accrued Benefits. • No amendment or ordinance shall be adopted by the City Commission of the City of Ocoee which shall have the effect of reducing the then vested accrued benefits of Members or a Member's beneficiaries. Qualification of System,, It is intended that the System will constitute a qualified pension plan under the applicable provisions of the Code, as now in effect or hereafter amended, Any modification or amendment of the System may be made retroactively, if necessary or appropriate. to qualify or maintain the System as a Plan meeting the requirements of the applicable provisions of the Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder, 4 Use of Forfeitures. Forfeitures arising from terminations of service of Members shall serve only to reduce future City contributions. SECTION 20 19. REPEAL OR TERMINATION OF SYSTEM..___... 1. This ordinance establishing the System and Fund, and subsequent ordinances pertaining to said System and Fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Member or Beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be deter- mined to be inadequate. 2. If this ordinance shall be repealed, or if contributions 'to the: System-are discontinued, the Board shall continue to administer the System in accordance with the provisions of this ordinance, for the sole benefit of the then Members, any Beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this Ordinance who are designated by any of said Members. In the event of repeal, or if contributions to the System are discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and the assets of the System shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof. 3. The following shall be the order of priority for purposes of allocating the assets of the System as of the date of repeal of this ordinance, or if contributions to the System are discontinued with the date of such discontinuation being determined by the Board. A. Apportionment shall first be made in respect of each retired Police Officer or Firefighter Retiree receiving a retirement or disability benefit hereunder on such date, each person receiving a benefit on such date on account of a retired or disabled (but since deceased) Police Officer or Firefighter Member, and each Police Officer or Firefighter Member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the Actuarial Equivalent of such -35- benefit, bas upon the actu a w,.p�vn" nl. r , assumptions that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. B. If there be any asset value remaining after the apportionment under paragraph A, apportionment shall next be made in respect of each Police Officer or Firefighter Member in.the service of the City on such date who has completf d at least ten• vested and who is not entitled to an apportionment under paragraph A, in the amount required to provide the Actuarial Equivalent described in A above, of the vested portion of the accrued normal retirement benefit (but not less than Accumulated Contributions), based on the credited Service and b Average Final Compensation as of such date, and each vested former Member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said Actuarial Equivalent of the vested portion of the accrued normal retire- ment benefit (but not less than Accumulated Contributions), provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be propor- tionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. C. If there be any asset value after the apportionments under ,araarap ha A and B, apportionment shall be made in respect of each Police Officer or Firefighter Member in the service of the City on such date who is not entitled to an apportionment under paragraphs A and B in the amount equal to Member's Accumulated Contributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. D. If there be any asset value remaining after the apportionments under paragraphs A, B, and C, apportionment shall lastly be made in respect of each Police Officer or Firefighter Member included in paragraph C above to the extent of the Actuarial Equivalent, as described in paragraph A above, of the non-vested accrued normal retirement bene- fit, less the amount apportioned in paragraph C, based on the Credited Service and average monthly earnings Average Final Compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. E. In the event that there be asset value remaining after the full apportion- ment specified in paragraphs A, B, C, and D, such excess shall be returned to the City, less return of the State's contributions to the State, provided that, if the excess is less than the total contributions made by the City and the State to the date of termination such excess shall be -3 • 6- divided proportionately to the total contributions made by the City and the State. The allocation of the Fund provided for in this Subsection may, as decided by the Board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this Subsection. The Fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The T-'ust Fund may be continued in existence for purposes of subsequent distributions. If, at any time during the first ten (10) years after the effective date of tli thia G Qrdinance originally establishing this System, the System shall be terminated or the full current costs of the System shall not have been met, anything in the System to the contrary notwithstanding, City contributions which may be used for the benefit of any one of the twenty-five (25) highest paid Police Officersipents e- the Members on the effective date, whose anticipated annual retirement allowance provided by the City's contributions at Member's normal retirement date would exceed $1,500, shall not exceed the greater of either a) $20,000, or b), an amount computed by multiplying the smaller of $10,000 or twenty percent (20%) of such Police Officer's or Firefightcr's Member's average annual earnings during his or her last five (5) years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or. otherwise, that the provisions of this paragraph are not then necessary to qualify the System under the Internal Revenue Code, this paragraph shall be ineffective without the necessity of further amendment of this ordinance. 4. After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the City. SECTION 2-1 2 0. EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY. Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the Accumulat- ed Contributions and the cash securities in the Fund created under this ordinance are hereby exempted from any state, county or municipal tax of the state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassign- able. SECTION 2 21. PENSION VALIDITY. The Board of Trustees shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. Sam The Board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or any person heretofore hereafter granted a pension under this ordinance if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this ordinance be erroneously, improperly or illegally classified. Anv overoavments or underpayments shall be corrected and paid or repaid in a reasonable manner determined by the Board. . -37- SE ON 23 22. FORFEITURE OF PENSION. • Any Police Officer or Firefighter Member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his or her admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this Pension Fund, except for the return of his or her Accumulated contributions as of the date of termination. 4-:Specified offenses are as follows: A. The committing, aiding or abetting of an embezzlement of public funds; B. The committing, aiding or abetting of any theft by a public officer or employee from employer; C. Bribery in connection with the employment of a public officer or employee; D. Any felony specified in Chapter 838, Florida Statutes; E. The committing of an impeachable offense. 2-F. The committing of any felony by a public officer or employee who willfully and with intent to defraud the public or the public agency, for which he or she acts or in which he or she is employed, of the right to receive the faithful performance of his or her duty as a public officer or employee, renli7es or obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his or her public office or employment position. z 2. Conviction shall be defined as €ellews an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation;'or a conviction by the Senate of an impeachable offense. $ 3. Court shall be defined as follows: any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the Board of Trustees shall hold a hearing on which notice shall be given to the Member whose benefits are being considered for forfeiture. Said Member shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the Member shall be afforded a full opportunity to present his or her case against forfeiture. 4. Any Member who has received benefits from the System in excess of his or her Accumulated Contributions after Member's rights were forfeited shall be required to pay back to the Fund the amount of the benefits received in excess of his or her Accumulated Contributions. The Board of Trustees may implement all legal action necessary to recover such funds. -38- SECTION 24 23, INDEMNIFICATION. I. To the extent not covered by insurance contracts in force from time to time, the City shall indemnify, defend and hold harmless members of the Board of Trnatces from all personal liability for damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation, or threat of same, herein referred to as "claims", against these individuals because of acts or circumstances connected with or arising out of their official duty as members of the Board of Trustccs. The City reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will indemnify, defend and hold harmless any members of the Board of Truatcca from the judgment, execution, or levy thereon. 2. This Section shall not be construed so as to relieve any insurance company or other entity liable to defend the claim or liable for payment of the judgment or claim, from any liability, nor does this Section waive any provision of law affording the City immunity from any suit in whole or part, or waive any other substantive or procedural rights the City may have. 3. This Section shall not apply nor shall the City be responsible in any manner to defend or pay for claims arising out of acts or omissions of members of the Board of Trustccs which constitute felonies or gross malfeasance or gross misfeasance in office. SECTION 25 24. FAMILY AND MEDICAL LEAVE ACT. The fractional parts of the twenty-four (24) month period ending each March 1 that a Member is on leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA) shall be added to his or her Credited Service provided that: 1. The Member contributes to the Fund the sum that he or she would have contributed, based on his or her Salary and the Member contribution rate in effect at the time that the Credited Service is requested, had he or she been a Member of the System for the fractional parts of the twenty-four (24) months ending each March 1 for'which he or she is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of periods of Credited Service. 2 The request for Credited Service for FMLA leave time for the twenty-four (24) month period prior to each March 1 and payment of professional fees shall be made on or before March 31. 3. Payment by the Member of the required amount shall be made on or before April 30 for the preceding twenty-four (24) month period ending March 1 and shall be made in one lump sum payment upon receipt of which Credited Service shall be issued. 4. Credited Service purchased pursuant to this section shall not count toward vesting. • -39- SEION 25. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER ISTRI.B T'IONS. 1. General. This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the System 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 Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 2. Definitions. A. Eligible Rollover Distribution: An eligible rollover distribution is 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: 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 expectan- cies) of the distributee and the distributee's designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includible in gross income. B. Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, or a qualified trust described in section 401(a) of the Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eligible rollover distribution to the surviving Spouse, an elide retirement plan is an individual retirement account or individual retirement annuity. C. Distributee: A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving Spouse is a distributee with regard to the interest of the Spouse. D. Direct Rollover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. SECTION 26. PRIOR POLICE OR FIRE SERVICE Unless otherwise prohibited by law, and except as provided for in Section 1, the years or fractional parts of years that a Police Officer or Firefighter previously served as a Police Officer or Firefighter with the City of Ocoee during a period of previous employment and for which period Accumulated Contributions were withdrawn from the Fund, shall be added to his or her years of Credited Service provided that:. 1. The Police Officer or Firefighter contributes to the Fund the sum that he or she would have contributed. based on his or her Salary and the Member contribution rate in -40- effect at the time that the Credited Service is requested. had he or she been a Member of this System for the years or fractional parts of years for which he or she is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the Fund plus payment of cosh for all professional services rendered to the Board in connection with the purchase of years of Credited Service. 2 The request shall be made only once and made by the Police Officer or Firefighter on or before the later of twelve (12) months from the effective date of the ordinance adopting this provision or six (6) months from the date of his or her employment or reemployment with the City Police or Fire Department. whichever is Iater. 2, Payment by the Police Officer or Firefighter of the required amount shall be made within six (6) months of his or her request for credit and shall be made in one lump sum payment to the Board, upon receipt of which Credited Service shall be given, 4 The maximum credit under this Section shall be one (1) year of Credited Service and shall count for all purposes, including vesting. dm\ocoee1pt182996pt.otd -41-