HomeMy WebLinkAboutVII(A7&A8) Ordinance No. 97-27, Amending General Employee Retirement Trust Fund Ordinance No. 96-19 Ordinance No. 97-28, Amending Police Officers' /Firefighters' Retirement Trust Fund Ordinance No. 96-20 Agenda 10-7-97 Agenda 10-7-97
City of Ucoeem `'IIA7 Item VII A 8
Ocoee • y
a�.n Jean Grafton
c I 150 NORTH LAKESHORE DRIVE
City Clerk
!�„yf�4��\�`,`�C� OCOEE, FLORIDA 34761-2258
cf G000 (407)656-2322
FAX(407) 656-5725
MEMORANDUM
To: The Honorable Mayor and City Commission
From: Jean Grafton, City Clerk
Date: September 18, 1997
Re: Ordinance No. 97-27, Amending General Employees' Retirement Trust Fund and
Ordinance No. 97-28, Amending Police Officers' and Firefighters' Retirement
Trust Fund
The current Pension Plans were put into effect in 1991 with employee participation as a
condition of employment. Currently employees contribute 5% of their pre-tax salary monthly
and the City contributes the balance necessary to fund the Plan. Trustees were cautioned in
their early training to exercise restraint with increasing benefits, particularly until the assets
exceeded $2M in each fund. This year both Funds passed that mark by a comfortable margin,
and during this past year both Pension Boards have been working toward increasing the
benefits for the respective Plans. A decision was made early in the year to request
authorization for an increase in the multiplier, and rather than limit the increase to 1/4% of the
existing multiplier, several members proposed that employees may be willing to share the cost
with the City and raise the multiplier by 1/2% instead. A poll of the membership resulted in an
overwhelming majority agreeing to increase their contributions to make up their half of the
cost as follows: General Employees from 5% of their salary to 7.4% and Police
Officers/Firefighters from 5% to 7.6%. The result would be an increase in the multiplier
from 2% to 2.5% for General Employees and from 2.5% to 3.% for Police/Fire. Also,
General Employees Trustees voted to give a cost of living increase of 10% to all retirees and
beneficiaries who are receiving monthly benefits from that fund on June 15, 1997.
The investment limitations for both funds have been amended in accordance with the advice of
the investment advisors. Also, the Police/Fire Trustees voted to add a workers' compensation
and social security offset against the plan's disability benefits, as permitted by a recent Florida
Supreme Court decision. _
The Trustees and Lee Definer, with Christiansen and Definer, counsel to both boards, will be
present October 21, 1997 for the second reading and public hearing to answer any questions.
ACTION NEEDED
At the October 21, 1997 second reading and public hearing, please adopt Ordinance No. 97-
27, amending the General Employees' Retirement Trust Fund, and Ordinance No. 97-29,
amending the Police Officers' and Firefighters' Retirement Trust Fund and authorize the
Mayor and City Clerk to execute.
"PRIDE OF WEST ORANGE"
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE MAYOR•COMMISSIONER
S.SCOTT VANDERGRIFT
Of
OcoeeCOMMISSIONERS
CITY OF OCOEE DANNY HOWELL
150 N.LAKESHORE DRIVE SCOTT ANDERSON
SCOTT A.GLASS
OCOEE,FLORIDA 34761-2258 NANCY J.PARKER
(407)656-2322CITY MANAGER
ELLIS SHAPIRO
MEMORANDUM
•
TO: The Honorable Mayor and Board of City Commissioners
FROM: Wanda B. Horton, Finance Director c=mod
DATE: October 3, 1997
RE: General Employees' Retirement Trust Fund and Police Officers' and
Firefighters Retirement Trust Fund- Funding for Fiscal Year 1998
The pension boards for the above referenced plans requested an increase in the multiplier for the
plans of.5% and a cost of living adjustment of 10% for retirees currently receiving benefits.
Funding for the proposed changes in the above referenced plans is included in the budget for
Fiscal year 1997/1998 as determined by the actuary.
LAW OFFICES TMI L f
AUG 2 2 1997
CHRISTIANSEN & DEHNER, P.A.
2975 BEE RIDGE ROAD B :
SCOTT R. CHRISTIANSEN SUITE C TELIiPHONE-
H. LEE DEFINER SARASOTA, FLORIDA 34239 (941)922-0200
TELECOPIER
(941) 923-5683
August 20, 1997
Mr. Ellis Shapiro, City Manager
City of Ocoee
150 North Lakeshore Drive
Ocoee, Florida 34761
Re: Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund
Ocoee Municipal General Employees' Retirement Trust Fund
Dear Ellis:
In accordance with the direction of the Boards of Trustees of the designated plans at
their meetings on August 6, 1997, I am enclosing proposed ordinances amending each
pension plan, along with the revised actuarial impact statements from the plans' actuary,
Ward Foster.
The general employees' ordinance has been updated from the one previously
submitted in that the member contribution rate has been increased to 7.4 percent, the benefit
accrual rate has been increased to 2.5 percent and changes were made with respect to
investment limitations in accordance with the advice of the investment advisors.
The police officers' and firefighters' ordinance has been updated from the one
previously submitted by adding a workers' compensation and social security offset against
the plan's disability benefits, as permitted by a recent Florida Supreme Court decision.
Also, investment limitations have been amended in accordance with the advice of the
investment advisors.
If you approve, the Boards request that these be set for consideration by the City
Commission as soon as possible. If you or any member of your staff would like to discuss
any of the provisions set forth in these ordinances, please do not hesitate to contact me.
Thank you for your courtesy and cooperation in working with us on these matters.
Yours/Very truly,
CCU^
H. Lee Dehner
HLD/dm
enclosures
cc: Jean Grafton, with enclosure \/ •
Mike Reed, with enclosure
Ward Foster, with enclosures
ORDINANCE NO. 97- 27
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND,
ADOPTED AND RESTATED IN FULL BY ORDINANCE
NUMBER 96-19; AMENDING SECTION 4, FINANCES AND
FUND MANAGEMENT, AMENDING SECTION 5,
CONTRIBUTIONS, AMENDING SECTION 6, BENEFIT
AMOUNTS AND ELIGIBILITY; 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: That Ordinance No. 96-19, adopting the amended and restated City
of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 4, Finances and Fund Management, subsection 6.B.(4), and subsection
6.C., to read as follows:
6. B. (4) 9
• .below:
Stocks, commingled funds administered by national or state banks.
mutual funds, international securities and bonds or other evidences
of indebtedness, subject to the limitations provided for in
subsection 6.C.
6. C. The Board 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 %) sixty percent (6Q%)
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.
SECTION 3: That Ordinance No. 96-19, adopting the amended and restated City
of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 5, Contributions,subsection 1,Member Contributions,to read as follows:
1. Member Contributions.
A. Amount. Each Member of the System shall be required to make regular
contributions to the Fund in the amount of five seven and four-tenths
percent (3 7.4%) of his or her Salary. Member contributions withheld by
the City on behalf of the Member shall be deposited with the Board 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.
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 System, such contributions shall be considered to be
Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
SECTION 4: That Ordinance No. 96-19, adopting the amended and restated City
of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 6, Benefit Amounts and Eligibility, subsection 2, Normal Retirement
Benefit, to read as follows:
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 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.,5%) of Average Final Compensation,
for each year of Credited Service.
SECTION 5: That Ordinance No. 96-19, adopting the amended and restated City
of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 6, Benefit Amounts and Eligibility, to add subsection 5, Cost-of-Living
Adjustment, to read as follows:
Cost-of-Living Adjustment.
The monthly retirement benefit being paid to all Retirees and Beneficiaries who
were receiving benefits on June 15. 1997, shall be increased by ten percent (10%).
SECTION 6. Repeal of Ordinances. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
SECTION 7. 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 effect the remaining portions hereof.
SECTION 8. Effective Date. This ordinance shall take effect retroactively on
October 1, 1997 except that Section 4 and Section 5 shall take effect retroactively on June
15, 1997.
Page 2
PASSED AND ADOPTED this day of , 1997.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
By:
Jean Grafton, City Clerk S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED October 9 , 1997
READ FIRST TIME October 7 , 1997
READ SECOND TIME AND ADOPTED
, 1997
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day of , 1997.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON , 1997 UNDER
AGENDA ITEM NO.
amsciA9.29.97.�
Page 3
ORDINANCE NO. 97- 28
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
POLICE OFFICERS' AND FIREFIGHTERS'
RETIREMENT TRUST FUND, ADOPTED AND
RESTATED IN FULL BY ORDINANCE NO. 96 20;
AMENDING SECTION 4, FINANCES AND FUND
MANAGEMENT; AMENDING SECTION 5,
CONTRIBUTIONS; AMENDING SECTION 6, BENEFIT
AMOUNTS AND ELIGIBILITY;AMENDING SECTION 8,
DISABILITY; 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: That Ordinance No. 96-20, adopting the amended and restated
City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, is
hereby amended by amending Section 4, Finances and Fund Management, subsection
6.C., to read as follows:
C. The Board shall not invest more than five percent (5%) of its assets in
the common stock, 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 securities at cost exceed fifty
sixty percent-00%) of the assets of the Fund.
SECTION 3: That Ordinance No. 96-20, adopting the amended and restated
City of Ocoee Municipal Police Officers' and Firefighters Retirement Trust Fund, is
hereby amended by amending Section 5, Contributions, subsection 1, Member
Contributions, to read as follows:
1. Member Contribution.
A. Amount. Each Member of the System shall be required to make
regular contributions to the Fund in the amount of Ave seven and six-
tenths percent (5 7 f%) of his or her Salary. Member contributions
withheld by the City on behalf of the Member shall be deposited with
the Board 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. 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 System,
such contributions shall be considered to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
- 1 -
SECTION 4: That Ordinance No. 96-20, adopting the amended and restated
City of Ocoee Municipal Police Officers' and Firefighters Retirement Trust Fund, is
hereby amended by amending Section 6, Benefit Amounts and Eligibility, subsection 2,
Normal Retirement Benefit, to read as follows:
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
coincident with or next following his or her Retirement 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 twoe-one-
€ three percent (MO IQ%) of Average Final Compensation, for each year of Credited
Service.
SECTION 5: That Ordinance No. 96-20, adopting the amended and restated
City of Ocoee Municipal Police Officers' and Firefighters Retirement Trust Fund, is
hereby amended by amending Section 8, Disability, subsection 1, Disability Benefits In-
Line of Duty, and subsection 3, Disability Benefits Not-in-Line of Duty, and by adding
subsection 7., Benefit Offsets, to read as follows:
1. Disability Benefits 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 establishin the same to the satisfaction of the Board, be entitled to
a monthly pension equal to two-enter three percent (24 3®Q%) 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.
3. Disability Benefits Not-In-Line of Duty.
Any Member with ten (10) years or more Credited Service who shall become
totally and permanently disabled to the extent that he or she is unable, by reason of a medi-
cally 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 performance 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 three
percent (2S L0%) of his or her Average Final Compensation multiplied by the total years
of Credited Service,. , •
. Terminated
persons, ei er vested or non-vested, are not eligible for disability benefits.
7 Benefit Offsets,.
When a Retiree is receiving a disability pension and workers' compensation
benefits pursuant to Florida Statute Chapter 440 or Social Security disability benefits. for the
same disability. and the total monthly benefits received from each combined exceed 100%
-2 -
of the Member's average monthly wage. as defined in Ch: 441 Flori,_ , -
disability pension benefit shall be reduced so that the total monthly amount receiv- . y the
Retiree does not exceed 100% of such average monthly wage. The amount of any lump sum
workers' compensation payment shall be converted to an equivalent monthly benefit payable
for ten (10) Years Certain by dividing the lump sum amount by 83.9692.
SECTION 6. Repeal of Ordinances. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
SECTION 7, r il' . In the event any section, subsection, paragraph,
sentence, clause, phrase or wor of this ordinance shall be held invalid,by a court of
competent jurisdiction, then such invalidity shall not affect the remaining portions
hereof.
SECTION 8. effective Date. This ordinance shall take effect retroactively on
October 1, 1997 except that Section 4 and Section 5 shall take effect retroactively on
June 15, 1997.
PASSED AND ADOPTED this day of , 1997.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
Jean Grafton, City Clerk By.S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED Or thb r 9 , 1997
READ FIRST TIMB)ctober 7 , 1997
READ SECOND TIME AND ADOPTED
, 1997
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day of , 1997.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON , 1997 UNDER
AGENDA ITEM NO.
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