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Home My WebLink AboutVI (A07& 08) Second Reading 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 Ocoee Clt of Ocoee Item VII A 7 Item VII A 8 o ci Agenda 10-21-97Jean Grafton Item VIA7 o 150 NORTH LAKESHORE DRIVE City Clerk �' OCOEE, FLORIDA 34761-2258 f*of coao•`, (407)656-2322 Agenda 10-21-97 FAX(407) 656-5725 Item VIA 8 MEMORANDUM To: The Honorable Mayor and City Conunission 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 'A% of the existing multiplier, several members proposed that employees may be willing to share the cost with the City and raise the multiplier by ' % 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 Dehner, with Christiansen and Dehner, 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. 97-28, 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 Ocoee COMMISSIONERS O CITY OF OCOEE DANNYHOWELL •• lO 150 N. LAKESHORE DRIVE SCOTT ANDERSON R j SCOTT A.GLASS ( 1 ) OCOEE, FL.OR DA 34761-2258 NANCY J. PARKR (407)656-2322 CITY MANAGER ffp _15, J ELLIS SHAPIRO OF G00v MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: Wanda B. Horton, Finance Director 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 •1 CHRISTIANSEN & DEHNER, P.A. 2975 BEE RIDGE ROAD SCOTT R. CHRISTIANSEN SUITE C TELEPHONE H. LEE DEHNER SARASOTA, FLORIDA 34239 (941)922-0200 TELE(.()PIER (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. Your, eery truly, Ltek 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) , r o.tm nt. 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 (60%) 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 (5 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 Members 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 (2j%) 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: 5, 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. a n s -29-7.o d • 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 ORDNANCE NO. 96-20; AMENDING SECTION 4, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 5 CONTRIBUTIONS; AMENDING SECTION 6, BENEFIT AMOUNTS AND ELIGIBILITY;AMENDING SECTION S 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, ital stock and convertible securities at cost exceed fiftyi Sixty percent-(60%) 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 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 six- tenths percent (5 L%) 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 -and-one- ha1€three percent (2-.30 3.0%) 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 Five one-#tat€three percent (24 3.0%) 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 (24 3.0%) of his or her Average Final Compensatin 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_av_erage monthly wage, as defined in Chapter 440. ri to the disability pension_benefit shall be reduced so that the total monthly amour 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 (1Q) 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. 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 remaunng 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 October g , 1997 READ FIRST TIMDxtober 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. am1momNpn9- 97.a.d - 3 -