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HomeMy WebLinkAboutVII(A1&2) First Reading of Ordinance No. 99-33, and Ordinance No. 99-34 Agenda 10-05-99 Item VII A 1 & 2 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER Ocoee S.SCOTT VANDERGRIFT etc, � CITY OF OCOEE COMMISSIONERS w R a 150 N.LAKESHORE DRIVE DANNY HOWELL O SCOTT ANDERSON OCOEE,FLORIDA 34761-2258 RUSTY JOHNSON is (407)656-2322 NANCY J.PARKER Of G04o CITY MANAGER ELLIS SHAPIRO MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Ellis Shapiro City Manager DATE: September , 1999 RE: DROP PLAN ORDINANCES FOR POLICE/FIRE AND GENERAL EMPLOYEES PENSION FUNDS Approximately three (3) months ago both pension boards discussed the possibility of having Drop Plans put into each retirement plan. The attached proposed ordinances fully discuss what a Drop Plan is but as a generality it offers pension fund members alternatives to regular retirement methods. H. Lee Dehner will; be present at second reading and public hearings for these ordinances to answer any questions you may have about these ordinances. A review by staff of this idea resulted in us seeing no real negative effect on the City and therefore we respectfully recommend approval of these ordinances. Attachments c: H. Lee Dehner, Esq., Christiansen & Dehner Protect Ocaec s Water Resources ( LAW OFFICES CH ISTIANSEN&DEHNEtt,P.A. 63 SARASOTA CENTER BLVD. SUITE 107 Scorn R.CHRISTIANSEN SARASOTA,FLORIDA 34240 'b c; C`L I s; ' m ,)HO g](941)377-2200 H.LEE DEFINER `� L U ` FAx I (941)377-4848 September 13, 1999 Mr. Ellis Shapiro, City Manager City of Ocoee 150 N. Lakeshore Drive Ocoee, Florida 34761-2258 Re: City of Ocoee Municipal Police -Officers' and Firefighters' and General Employees' Retirement Trust Funds Dear Ellis: In accordance with our recent conference, I am enclosing DROP plans for the City of Ocoee Municipal Police Officers' and Firefighters' and General Employees' Retirement Trust Funds. `I will be happy to discuss them with you at any time, although I believe we have already discussed them thoroughly. If appropriate, please schedule these ordinances to go before the commission and notify me of the time as I will be happy to be present. By copy of this letter to the Boards' actuary, Foster&Foster, Inc., I am requesting that they provide you with a letter indicating that there is no cost associated with the adoption of these ordinances. As always, your courtesy and cooperation is appreciated. Yours very truly, H. Lee Dehner HLD/bm enclosures cc: Mike Reed, with enclosure Donald Carter, with enclosure Foster&Foster, Inc., with enclosures Agenda 10-05-99 Item VII A 1 ORDINANCE NO. 99-3 3 • 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, AS SUBSEQUENTLY AMENDED; ADDING SECTION 27, DEFERRED RETIREMENT OPTION PLAN; 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, as subsequently amended, is hereby amended by adding Section 27, Deferred Retirement Option Plan, to read as follows: SECTION 27. DEFERRED RETIREMENT OPTION PLAN. 1_. Definitions. As used in this Section 27, the following definitions apply:" As "DROP" -- The Ocoee Police Officers' and Firefighters' Deferred Retirement Option Plan. B, "DROP Account" --The account established for each DROP participant under subsection 3. 2.. Participation. Ay Eligibility to Participate. in lieu of terminating his employment as a Police Officer or Firefighter,. any Member who is eligible for normal retirement under the System may elect to defer receipt of such service retirement pension and to participate in the DROP provided that the election to participate in the DROP is made within twelve (12) months following the date on which the Member first becomes eligible for normal retirement, or for a Member who first reached eligibility for normal retirement prior to the effective date of this Section, the election to participate is made within twelve (12) months from the effective date of this Section. A Member who fails to make the election within such twelve (12) month limitation period shalL forfeit all rights to participate in the DROP. B, Election to Participate. A Member's election to participate in the DROP must be made in writing in a time and manner determined by the Board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. -1- • Period of participation. - A Member who elects to participate in the DROP under subsection 2.B., shall participate in the DROP for a period not to exceed sixty (60) months beginning on the date which the Member first becomes eligible for normal retirement. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the City at the time of election into the DROP. A Member may participate only once. Termination of Participation. (1) A Member participating in the DROP shall cease participating in by:• electing in writing, in a time and manner determined by the Board, to cease participating in the DROP; (b) continuing to be employed as a Police Officer or Firefighter at the end of his period of participation in the DROP as determined under subsection 2.C.; or terminating his employment as a Police Officer or Firefighter. Any election made under clause (a) shall be effective on the first day of the first calendar month which is at least fifteen (15) thpsiness days after it is received by the Board. (2) Upon the Member's termination of participation in the DROP, pursuant to subsection (1),(a) or (b) above, all amounts provided for in subsection 3.B., including monthly benefits and investment earnings and losses or interest, shall cease to be transferred from the System to his DROP Account. Any amounts remaining in his DROP Account shall be paid to him in accordance with the provisions of subsection 4. when he terminates his employment as a Police Officer or Firefighter. ,(3) A Member who elects to terminate his participation in the DROP under subsection 2.D. shall not be permitted to again become a participant in the DROP. E,. Effect of DROP Participation on the System. U) A Member's Credited Service and his accrued benefit under the System shall be determined on the date his election to participate in the DROP first becomes effective. The Member shall not accrue any additional Credited Service or any additional benefits under the System (except for any additional benefits provided under any cost-of-living adjustment in the System) while he is.a participant in the DROP. After a Member commences participation, he shall not be permitted to again contribute to the ystem nor shall he be eligible for disability or pre-retirement death benefits. No amounts shall be paid to a Member from the System while the Member is a participant in the DROP. Unless otherwise specified -2- in the System, if a Member terminates his participation in the DROP other than by terminating his employment as a Police Officer or Firefighter, no amounts shall be paid to him from the System until he terminates his employment as a Police Officer or Firefighter. Unless otherwise specified in the System, amounts transferred from the System to the Member's DROP Account shall be paid directly to the Member only on the termination of his employment as a Police Officer or Firefighter. Funding. A. Establishment of DROP Account. A DROP Account shall be established for each Member participating in the DROP. A Member's DROP 'Account shall consist of amounts transferred to the DROP under subsection 3.B., and earnings or interest on those amounts. Transfers From Retirement System. (1) As of the first day of each month of a,Member's period of participation in the DROP, the monthly retirement benefit he would have received under the System had he terminated his employment as a Police Officer or Firefighter and elected to receive monthly benefit payments thereunder shall be transferred to his DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.D., but in no event shall it continue past the date he terminates his employment as a Police Officer or Firefighter. () Except as otherwise provided in subsection 2.D.(2), a Member's DROP Account under this subsection 3.B. shall be debited or credited after each fiscal year quarter with either: (a) Interest at an effective rate of six and one-half percent (6.5%) per annum compounded monthly on the prior month's ending balance; or (b) Earnings, determined as follows: The average daily balance in a Member's DROP Account shall be credited or debited at a rate equal to the actual net rate of investment return realized by the System for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which the Member's DROP Account is invested by the Board net of brokerage commissions. transaction costs and management fees• Upon electing participation in the DROP, the Member shall elect to receive either interest or earnings on his account to be determined as provided above. The Member may, in writing, elect to change his election only once during his DROP participation. An election to change must be made prior to the -3- • •a3Eisa s,xagwaw alp of pa3nqu3stp oq hugs lun000v Jima alp 'apew Si uopetatsap kxuiogouag ou 3Y loops dew Axetagouag sp.' se uuoj leuopdo gons ut dtetoljouag stq o2 pied .oq Nut's 2un000v dOUG silt' 'pied st it auaq sit' axojoq sole xagwaW u jl •suopept2ax algeogdde s3T pee apop otp jo (0)(6)(u)Tot, uopoas ut pagixosap su opu 3 Jauaq tpeap luauaplout alp o21oaftins oq pegs kielopouag sit' o2 xa1eaxatp pug Jaqwolk alp alggid Alinuue otp '/Sxeto!Jauag otp sg asnods s,Jogwaw otp tpim icipluue xontAIns (%os) 3uaoxad kuU put'3utof patgilenb u 3ou Si popotos wxoJ'ittnuue alp jI •auiuua3ap nut's wog alp su xauuuw JO awp gons ut aputu aq plugs put' 2upum ut oq Tugs gdgx8exed snp xapun suopoalg -loop Amu xagwaw alp su uuoj lions ui antiCed Xiinuue paxg oiqumtojJoJuott asegoxnd o3 pasn oq uopngu3sip dOlG sit' letp 'agixosaxd !Tip pxeog alp su xauuew put awp tons ut 'koala 'xanamoq '/Cuw xagwow v •O•{, uopoasgns ut tpxoj 3as suotsinoxd xanollox ioaxip alp o3 3oaftlns `tuns dwnl gseo u ut apew oq Tugs 3un000d Jolla sit'Jo uopngixasip 'astM.tatpo s3oala xagwaw alp ssalun 1f uoungt r3sic Jo wxod •xa3gt axi3 xo xao3JO aotlod u SE 31.101.uifoldwa Jo uopeuptua3 sig o2 xoud dOUG oqi wag xagwaW e o2 pied oq pugs s3unowg ou -at tr uopoasgns to papinoxd SE 3d0oxg •xa3t'2!Jaxi3 JO xaot�JO aotlod a SE 3uawJcoldwa jo u09g4111101 sit' uodn •j uopoasgns spp Jo suotstnoxd otp g3im aouepx000u ut 3un000d aoua sig ut aoueleq alp aniaoax pegs xagwaw V •s3tgauag xoj AliligtZtig TV •3u0WAoldwg Jo uopetgwao j, uo s2un000v doua Jo uopngip3sic •aotnxas pa3ipax0 leuopippe anxoou aq !pm xou 'sluauaq 3iltqustp JO 1puap 3uawaxpa.t -axd xoj otgitila oq 3ou Tips limn uopedtopxud dOUQ Jo sx1a/C (s) anti xau.e s2uawaxudoG aotlod put' an i3t0 alp cq pa&oldwo Joquto d •s3uawaxedaG aotlod put' o.nd A3i3 alp cq paicoldwa st Jogwaw alp aligm popojioJ oq o3 anupuoo put' pa2toJxoJ oq putts s3unowe pa.uOJsuux3-uou Lions ilk •3un000u dOUG alp o3 pauojsuex3 oq s3 jouaq itg3uow !pm IOU '3s0103111 JO s&quxea tplm pa�igap xo pa3ipaxo oq xa2uol ou !pm 3un000d dOUG s,xaqutoW alp 'lug sxn000 xanat'ott'm 'uopedtopied dOUG Jo tpuow isig s,xaqutow alp tpim 2utuut2aq JO uopedtopxud jo uopessao 24moiloJ 3uawiced 3xau otp ipinn t'utuul2oq ua11 'sxeai (s) 0AJ xoj dOUG alp ut Supedtogxed xaue JO (e)(i)•Q•z uopoasgns o� 3uensxnd Jolla alp ut uopudtopxed asuao o3 2upoala xauue s2uawaxedaG wpm pee olid AK) alp cq padoldwa st xaqutow g dl •x011.1gg0.1td JO xaoym0 aotlod a se w ow/Coldwa sig sa3eutwxa3 JO saxpax 'sow xagwaysl alp xapu.puu aOaa alp ut wedtopxed g sT iagwaw alp opgm slgauaq 1cTt'3uow 3u pug 3saxat aio s2unueatpim pa2tgap JO pa3ipaxo oq /quo pugs 3un000d dOUG s,xequuow V trj •xauenb . . i Date of Payment of Distribution. U) Except as otherwise provided in this subsection 4., distribution of a Member's DROP. Account shall be made as soon as. administratively practicable following the Member's termination of employment. (2). In lieu of a distribution as described in paragraph (1) above, a Member may, in accordance with such procedures as the Board shall prescribe, elect to have the distribution of. his DROP Account made as of the first day of any month coincident with or following his termination of employment as a Police Officer or Firefighter; provided, however, payments shall be made before the .distribution date elected by the Member to the extent necessary to comply with the provisions of subsections 4.D. and 4.F. D.. Age Seventy and One-Half 70-1/21 Resuired Distribution. In no event shall the provisions of subsection 4. operate so as to allow the distribution of a Member's DROP Account to be later than the April 1 following the later of the calendar year in which he terminates his employment as a Police Officer or Firefighter or he attains age seventy and one-half (70-1/2). In the event a Member is required to receive payment while in service under the provisions of this subsection D., he shall receive one lump sum payment on or before his required beginning date equal to his entire DROP Account balance and annual lump sum - payments thereafter of amounts credited to his DROP Account during each calendar year. Upon the Member's subsequent termination of employment, payment of his DROP Account shall be made in accordance with the provisions of subsection 4.B. E,. Proof of Death and Right of Beneficiary or Other Person. The Board may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the value of a deceased Member's DROP Account as the Board may deem proper and its determination of the right of that Beneficiary or other person to receive payment shall be conclusive. E. Distribution Limitation. Notwithstanding any other provision of subsection 4., all distributions from the DROP shall conform to the regulations issued under Section 401(a)(9) of the Code, including the incidental death benefit provisions of Section 401(a)(9)(G) of the Code. Further, such regulations shall override any DROP provision that is inconsistent with Section 401(a)(9) of the Code. Direct Rollover of Certain Distributions. . This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the DROP to the contrary that would otherwise limit a distributee's election under this subsection, a distributee may elect, at the time and ' the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly.by the DROP to an eligible retirement plan specified by the distributee in a direct -5- -9- •d02IQ att Jo spun) agt JO dO'IQ att of uoptiax ut Inttl pool ut apuw 'tau of amutj xo tou Attu xoJ sunpintput xagto /Zug Jo jugaq uo xo Sttunpintput '2tltgtg Aut xnout tou Ruts saatsnxZ ag,b try 'Attitgtil Jo uotttttwfl 7 •stassu S1d02IQ all Jo Iuaugsanu! agt OOSIOAO osu nulls pttog ags •mtt atgtotidd atttuuad Iuatxa agt of pug put anisntouoo aq Rugs suogsanb patndstp /Cut Jo uoptutwxatap stt JO dO KL ant J.o uottutaxdxatut atp of SE piton ant Jo uogtutuuatap a4Z '(doaQ ant ut tutdtopiEd u aq of sastao itnpintpui /Cut gatgnn uo a3up att put d02IQ atp xapun atquiud igouaq Aui Jo tunowt put 11441 att 'uoptdtopxud d02IQ xoJ itttigtfftu s,unpintpU tut Jo uot1uutwxaaap of pattwti tou tnq 2utpniout) d02IG att taxdzatut•puu atutsuoo of kgaogtnt dxtuottaxostp anti' hugs pxuog at1 •ssatutsnq sti Jo uottotsuux3 an put: dODU Ott Jo uottt.t3stutwpt Ott xoJ sattu gsgqutso Tugs awit of own wag moll atp 'am ant Jo suoputttttit att of 3OalgnS 'soma Jo tuawgsgqutsg snnti otgtotiddt xagto 'Cut put: toed ant Jo suonaod atgtot'ddt alp `OpoJ an of tuunsxnd d02IQ ant xoJ pain xo patnqutstp aq o3 paxtnBax utup put 'suxntax uo9twxoJut 'stxodax `suottdtiosap Aaussaoau tit 'at dtw Osto ant SE 'satou07t utuawuxano2 attudoxddt ant g31A pain JO stunpiniput xatto put d02IQ ant ut ffutttdtottxtd saogwaw of patngwsip put paxudaxd aq of asnuo xo axtdaxd flogs•pxtog at.L •d02IQ ant Jo song-Null pure stasst aft Jo uotttnttn ant xoJ iLIESsaoau aq Attu su uaup tons uuoJ tuatuanuoo tut 'tda)t aq of asnEO xo 'daO)i hugs' pxuog ant put 'tun000d d02TQ s,aoquiaw goua ut saoutug iunpintpui ant ffutmogs spxoo0x ffuupniout 'dOdG an Jo uorttpuoo put uonwodo ant 2utnnogs spxooax 'pautttuttw aq of asnuo JO 'uputEw'tugs pxtog a4Z •slaodoU put spx000u 'stun000d itnpintpuI '- •Jiaswtg of itanisniOxa ut2utax uogsanb 'Cut uo aton toU Atts aatstuj V •nptoap tugs 'uottaxostp aios "tog) ut 'Eatp SE 'aoaa aft 2uquawatdwt ut asn xoJ patdopt tuatuaoa2u tstut dirt xapun aatstud, st watt of patutx2 0sogt uttp Join° 'dOaa aft xapun saitnp xtatt Jo uogxod tons xo tit suosxad xaupo of attt0iap JO saniaswatt uou.tt Ottooiu Atw put :dOlia ant Jo suotstnoxd Ott tno 2utkuEO uT axinboi cEw 1cagt su saatnxas 2uginsuoo put Tut. 0 nntot ' uttun000e 'uouaIO tuns xoJ apinoxd put stua2t 1cotdwa 'tasunoo utttax Attu :jugaq napuo tuawiud dui' aauw JO tuawtutsut 'uu xanttap JO atnoax0 of tuo2u but to xagwnu xtagt Jo axow JO auo azuottnt Atut :sxtujjt nap Jo tonpuoo an xoJ atgtxtsap woop Aatt su suot3utntax put saxnpaooxd anituxtstutwpe tons adopt Atw :autuuatap tags Aagt su sxanxod goes tptnt saottituwoogns bons xagwnu xta4t woxJ 3Utoddt duw pxtog aft 3o sxagwaui ats, •pxtog agt•ut paottd aq Tugs stasst s,d0>'Q all Jo tuawtsanut ant gut0Osxano Jo Sititgrsuodsax aft put dOZiG aft Jo suotstnoxd aft tno 2U1LUEo xo 411gisuodsax aft 'doaa ant Jo uottuxtstutwp>;uxauo attZ 'd02I1 ant s olstutwpd piton 'V •dOlU Jo uotiu ustutwpd 'aouax0Jax Act patt~todxoout tnaxag 'SZ uottoaS ut watsIS ant xapun papinoxd asinnxatto SE xanoiiOJ (2) Neither the Board nor any Trustee of the Board shall be responsible for any reports furnished by a y expert retained or employed by the Board, but they shall be entitled to rely thereon as well as on certificates furnished by an accountant or an actuary, and on all opinions of counsel. The Board shall be fully protected with respect to any action taken or suffered by it in good faith in reliance upon such expert, accountant, actuary or counsel, and all actions taken or suffered in such reliance shall be conclusive upon any person with any interest in the DROP. General Provisions. A,. Amendment of DROP. The DROP may be amended by an ordinance of the City at any time and from time to time, and retroactively if deemed necessary or appropriate, to amend in whole or in part any or all of the provisions of the DROP. However, except as otherwise provided by law, no amendment shall make it possible for any part of the DROP's funds to be used for, or diverted to, purposes other than for the exclusive benefit of persons entitled to benefits under the DROP No amendment shall be made which has the effect of decreasing the balance of the DROP Account of any Member. M. Facility of P.yment. If the Board shall find that a Member or other person entitled to a benefit under the DROP is unable to care for his affairs because of illness or accident or is a minor, the Board may direct that any benefit due him, unless claim shall have been made for the benefit by a duly appointed legal representative, be paid to his Spouse, a child, a parent or other blood relative, or to a person with whom he resides. Any payment so made shall be a complete discharge of the liabilities of the DROP for that benefit. Information. Each Member, Beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on his account under the DROP, shall file with the Board the information that it shall require to establish his rights and benefits under the DROP. 11 Prevention of Escheat. If the Board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the Board may. no earlier than three (3) years from the date such payment is due, mail a notice of such due and owing payment to the last known address of such person, as shown Qn the records of the Board or the City. If such person has not made written claim therefor within three (3) months of the date of the mailing, the Board may, if it so elects and upon receiving advice from counsel to the DROP, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the DROP. Upon such cancellation, the DROP shall have no further liability therefor except that, in the event such person or his Beneficiary later notifies the Board of his whereabouts and requests the payment or payments due to -7- •mui Jo suotsinoJd anoqu atl of luunsJnd 'sltjouaq dOUG utpnlout 'sli auaq luaWOJpa1 Jo aJnliaJJoJ of loatgns aq lum `pa&oidwa aitlm ZZ uogoas ut paquosap su paltuiuual st luawdoldwa asogm Jo esuajjo pagIoads E ltwwoo oqm sluEdto-p.Ed c oua •salnwis tpuoid '£LT£•ZII uogoas Jo anogE ZZ uogoas jo odoos all woJj sluudiopiud dOUQ anowa.z of patulsuoo aq Hugs uogoas sill ut futlloN •sl!Jauag luaw0Jp0U Jo a1nit0JJoa 'g •ioiluoo guts Mtpta t .io sallp all uutl Jatlu1 Ixal atii '¶oualsisuoout Jo itlin2tgw jo asEo all uI •ANo aouatuanuoo JoJ are LZ uopoas sill ut suopoasgns all jo s2utpEoq puu sapil aqL (70 •sloJluoo mui olquogddu Jail° ologm Idaoxa `upuold jo smut aril Japun paJalsiutwpu puu palEinga1 `panJlsuoo aq liEgs dOUQ al, tr.' •u0pon.gsuo3 mil aigEogddu cuE tq pa.inbaJ lualxa all of Idaoxa slassu Jatlo Jo sapunoas 'spun] A" 42im dO CI all lsiu nj of tiliguil JO Amp Auu anug ijEts piog all JOU Alta OLD Jalltau puu lun000d dOUQ s,JagwoN all 3o slassu atp wot� diuo plod aq ItEls dual all woJJ JagwaNl E of aiggAud slijauaq Ild •paaluEJEnD ION slpauag '3 •ssa.tppu stl Jo pampa all sOJpou aaJpaa Jo JogwojAI all sE own long jilun popuodsns aq ilim walo jo 2uiltuw 'pauJnla. Si ssa.ppu tons of pm saris paliun paijpJao Jo paJalsIfoI iq .pout Moat° iuu 3I Tutu saris paliun Pappao Jo paxalst2aJ cq poj Eut puu pJEog all of uanig ssaJppu tons lsui all lE wit of paloaxip Ji uan12 pawaap aq this Japunoiat aaxpall Jo JacpuoN E of uantff aq of paxtnboi aopou iiuv •ssaxppu stq ut sa1Btlo luanbasgns due puu ssaJppu lu0JJno sit tltm wog all guigsnunj JoJ algisuodsat ag lids lun000d dO2 G E sug °gm aaJpou JO JagwaN 4OEa •punaJd huts sa.tnpaoo.td anpE.rlstutwpu mau asoll `sainpaooJd anpEJlstutwpE mau tons pine dOUQ all ut t1Joj ;as uopuugisap JO uo2Eo1pou 'uopoala ut 2uptuw JoJ suotsinoxd all uaamlaq lotlJuoo E Jo luana atl uI •dOUQ atl 3o UopE.gstutwpu all sanoJdwt It 2Ell ut pogpsnf si uopou tons 2Etil UopEJagilap onp JOIJE sautuixalap It It dOIQ etl Japun sJogwow tcq suopEuAisap JO suopoala 'suopuogpou &upfew JoJ JauuEw puu amp atl wOJJ auEto saiUasaJ p1Eog al.L •palEnitg A IJEltwts saa1coidwa liE of olgeotiddE Aiuuoftun sopu Japun p.tEog atl tq pautuualap JouuEw puu awp E ut pIEog atl qgm popj pUE 21-41um ut apaw aq Hats dOU G all jo suotstno.d atl of luunsJnd Jagwow E Aq apEw suopEu2!sap Jo suopEo!Jpou 'suopoala AchIy •uopEogpoN 'suopoaig ual3UJ •dOUQ all Jo suotsrnoJd all pm 0oUEpJoo0E to wit of mud aq huts paiiddu os lunowu otp 'dOUQ all Japun wiq 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 , 1999. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, CityClerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED , 1999 READ FIRST TIME , 1999 READ SECOND TIME AND ADOPTED , 1999. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS day of 1999. CHRISTIANSEN&DEHNER, P.A. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1999 UNDER AGENDA ITEM NO. bm\ocoee\pf\09-10-99.ord -9 Agenda 10-05-99 Item VII A 2 ORDINANCE NO. 99-3 4 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 NO. 96-19, AS SUBSEQUENTLY AMENDED; ADDING SECTION 25, DEFERRED RETIREMENT OPTION PLAN; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN Eli FECTIVE 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, as subsequently amended, is hereby amended by adding Section 25, Deferred Retirement Option Plan, to read as follows: SECTION 25. DEFERRED RETIREMENT OPTION PLAN. .L. Definitions. As used in this Section 25, the following definitions apply:" A, "DROP" --The Ocoee General Employees' Deferred Retirement Option Plan. B, "DROP Account" —The account established for each DROP participant under subsection 3. Participation. AL Eligibility to Participate. In lieu of terminating his employment as a General Employee, any Member who is eligible for normal retirement under the System may elect to defer receipt of such service retirement pension and to participate in the DROP provided that the election to participate in the DROP is made within twelve (12) months following the date on which the Member first becomes eligible for normal retirement, or for a Member who first reached eligibility for normal retirement prior to the effective date of this Section, the election to participate is made within twelve (12) months from the effective date of this Section. A Member who fails to make the election within such twelve (12) month limitation period shall forfeit all rights to participate in the DROP. B,. Election to Participate. A Member's election to participate in the DROP must be made in writing in a time and manner determined by the Board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. -1- Period of participation. A Member who elects to participate in the DROP under subsection 2.B., Shall participate in the DROP for a period not to exceed sixty (60) months beginning on the date which the Member first becomes eligible for normal retirement. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the City at the time of election into the DROP. A Member may participate only once. D .. Termination of Participation. £) A Member participating in the DROP shall cease participating in the DROP by: 4a) electing in writing, in a time and manner determined by the Board, to cease participating in the DROP; (b) continuing to be employed as a General Employee at the end of his period of participation in the DROP as determined under subsection 2.C.; or terminating his employment as a General Employee. Any election made under clause (a) shall be effective on the first d.y of the first calendar month which is at least fifteen (15) business days after it is received by the Board. . Upon the Member's termination of participation in the DROP, pursuant to subsection (l),(a) or (b) above, all amounts provided for in subsection 3.B., including monthly benefits and investment earnings and losses or interest, shall cease to be transferred from the System to his DROP Account. Any amounts remaining in his DROP Account shall be paid to him in accordance with the provisions of subsection 4. when he terminates his employment as a General Employee. 1,3) A Member who elects to terminate his participation in the DROP under subsection 2.13. shall not be permitted to again become a participant in the DROP. Ey Effect of DROP Participation on the System. ) A Member's Credited Service and his accrued benefit under the System shall be determined on the date his election to participate in the DROP first becomes effective. The Member shall not accrue any additional Credited Service or any additional benefits. under the System (except for any additional benefits provided under any cost-of-living adjustment in the System) while he is a participant in the DROP. After a Member commences participation, he shall not be permitted to again contribute to the System nor shall he be eligible for disability or pre-retirement death benefits. (2) No amounts shall be paid to a Member from the System while the Member is a participant in the DROP. Unless otherwise specified -2- in the System, if a Member terminates his participation in the DROP other than by terminating his employment as a General Fmi . no ar- nts shall be paid to him from the System until he terminates his employment as a General Employee. Unless otherwise specified in the System, amounts transferred from the System to the Member's DROP Account shall be paid directly to the Member only on the termination of his employment as a General Employee. • Funding. A, Establishment of DROP Account. A DROP Account shall be established for each Member participating in the DROP. A Member's DROP Account shall consist of amounts transferred to the DROP under subsection 3.B., and earnings or interest on those amounts. I. Transfers From Retirement System. As of the first day of each month of a Member's period of participation in the DROP, the monthly retirement benefit he would have received under the System had he terminated his employment as a General Employee and elected to receive monthly benefit payments thereunder shall be transferred to his DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.D., but in no event shall it continue past the date he terminates his employment as a General Employee. al Except as otherwise provided in subsection 2.D.(2), a Member's DROP Account under this subsection 3 B. shall be debited or credited after each fiscal year quarter with either: ,a Interest at an effective rate of six and one-half percent (6.5%) per annum compounded monthly on the prior month's ending balance; or 1 Earnings, determined as follows: The average daily balance in a Member's DROP Account shall be credited or debited at a rate equal to the actual net rate of investment return realized by the System for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which the Member's DROP Account is invested by the Board net of brokerage commissions, transaction costs and management fees. Upon electing participation in the DROP, the Member shall elect to receive either interest or earnings on his account to be determined as provided above. The Member may, in writing, elect to change his• election only once during his DROP participation. An election to change must be made prior to the -3- •at sa s,xagwoN pawgi.usip aq giegs tun000d dO2IQ Ott 'apEw si uopeu2ts0p Liitogau0g ou JI loai0s flew fixetog0u0g stq su uuoj giuopdo. lions ut fixmtog0u0g siq of pied oq riegs Iun000y dO2IQ siq 'piEd st lgauaq siq axoJaq soip xaquayx jj ('ZY •suouilnai aigEoilddE sli puu °Pop ow 3o 0)(6)(M)1017 uopoog ui paquosap su altu ig0u0q tam l uaptout oq of looft ns aq ripgs fiiriog0u0g siq of i0geatow pue ioquiow ow aigisfiid 3inuuE 'fiistogau0g ow se asnodS s,xagwai\i ow trim filinuuE iontnxns (%00 luaoxad Aug puu iuiof paggEnb E aou St p0io0i0s uuoj filinuue owfI •0uituaolop Timis p.Eog otp se xauuEu io auq bons ut apew ag ilEgs puu &ptim ut ag hugs gdEaExEd stgi xapun suopoagg loop Aug Jogwaix otp sE uuoj Lions ut algEiEd AllnuuE paxg aigelp toJuou asEgoxnd posn aq uopnquisip dO2IQ siq iE44 'agixosaid Legs piBog ow se iauuEw puu 0uvgans ut loop '.Onamoq 'Amu xagw0Ji% d •O•y uopoasgns ut q�ioj. los suoisinoxd xOnoiiox )oaxip oqi o3 too lns `tuns dung gsl?o u ui apew oq LIEgs iun000y dO2IQ stq Jo uopngtusip 'asimxag3o slo0g0 xagw0j ow ss0iun flY •uoyingi usm Jo tuxog •r •a0fioidwg lmxaumO B sB auawfioldwa Jo uopEuiwiat stq of loud dOuQ ow wag xagwaw i of pied ag hugs siunotuB ou '.cut ttopoasgns ut papinoxd su idaoxg •oofioidwg iExau0O B se 3uawfiogdwa Jo uopeu!uuot sp.{ uodn •j7 uopoasgns sp.p jo suotsinoxd 0q3 g3im aOUBpxoOOB ut 3uno0od dmia stq ut aoumiug ow ani0o0x ibis i0gtuaysi y •s3g0u0g ioj aglgi tra 'V lu0wAogdug Jo uopeuittua,L uo slun000d dOuQ Jo uoungrgsic •aotnxa p03ipax0 puopippB 011100E oil 'gm xou 'sigauaq fi3iitgEstp io weal)iu0waipai-aid xoj oigtggo aq Lou rips 'pm uoi3BdiopxEo dO2iG jo slEafi (g) ang xaue fi3iO ow fiq pafiogdwo Jogut0ix y villp ow fig pafioldwa si iogwoJ, alit Origin p01t0110J aq of anupuoo puu pa3103ioJ aq pe4 winoui pa.uojsuE.u-uou ions Iry •3un000B dO I 0qt o3 pa.u0Jsue.q aq sigauaq fippuotu iiim iou lsax0ui xo s utuiE0 p0iigap xo paitpaxo aq io uog ou iiim Jun000d dOdEs,iagw0w ow lug sxn000 xanagoigm 'uopedio!3iEd dOua Jo glum is i9 s,xagtuo otp g3im ffuiuul2og xo uogBdioia.tEd Jo Uopess0o &tnmogloj 3uatuAed Ixau alp wim 2uiuut2og uagp 'smoS (g) ang io; dOdU ow ttt 2uplediolued Joue io (B)(g)•cut uopo0sgns o2 3uBnsind dOud atp ut uopediop ed asBao oa 2upoai0 loge 4D ow fiq pafioidwa S1f lagwayx B 3I •oo cogduig ratou0p B sB 3uaw1coidwa siq sa3Eutuu03 io saxpax 'soap xagwayi ow xage Pue dOdQ 0w ut uumdiopxed 1st xagway�atit aligm sigauaq figgpuotu put lsoio ut.io s&utu o ttp!At patigap Jo pa3ipato aq Apo wigs 1un000d dO21Q s,xagwoJA1 V '(£j •x01x1nb !trimorloJ otp 2utuutgaq anpo0JJa aq 'tugs puu xa3.tEnb E jo pua .. Date of Payment of Distribution. (1) Except as otherwise provided in this subsection 4., distribution of a Member's DROP Account shall be made as soon as administratively practicable following the Member's termination of employment. (2) In lieu of a distribution as described in paragraph (1) above, a Member may, in accordance with such procedures as the Board shall prescribe, elect to have the distribution of his DROP Account made as of the first day of any month coincident with or following his termination of employment as a General Employee; provided, however, payments shall be made before the distribution date elected by the Member to the extent necessary to comply with the provisions of subsections 4.D. and 4.F. a. Age Seventy and One-Half(70-1/2) Re.uired Distribution. In no event shall the provisions of subsection 4. operate so as to allow the distribution of a Member's DROP Account to be later than the April 1 following the later of the calendar year in which he tern inales_hi� employment as a General Employee or he attains age seventy and one- half (70-1/2). In the event a Member is required to receive payment while in service under the provisions of this subsection D., he shall receive one lump sum payment on or before his required beginning date equal to his entire DROP Account balance and annual lump sum payments thereafter of amounts credited to his DROP Account during each calendar year. Upon the Member's subsequent termination of employment, payment of his DROP Account shall be made in accordance with the provisions of subsection 4.B. E, Proof of Death and Right of Beneficiary or Other Person. The Board may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the value of a deceased Member's DROP Account as the Board may deem proper and its determination of the right of that Beneficiary or other person to receive payment shall be conclusive, E. Distribution Limitation. Notwithstanding any other provision of subsection 4., all distributions from the DROP shall conform to the regulations issued under Section 401(a)(9) of the Code, including the incidental death benefit provisions of Section 401(a)(9)(G) of the Code. Further, such regulations shall override any DROP provision that is inconsistent with Section 401(a)(9) of the Code. a. Direct Rollover of Certain Distributions. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the DROP to the contrary that would otherwise limit a distributee's election under this subsection, 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 by the DROP to an eligible retirement plan specified by the distributee in a direct -5- •slassu S o dO2IQ ogl 3O luawlsanut aip OOSJano oslu [tugs pJJog ai{,L •mul alquailddu &q palliuuod Iualxa otp of pugpuu anisnlouoo al pugs suotlsanb palndstp Auu Jo uoputt tualap slit Jo d02IQ alp Jo uopula1dtalui all of su p.itog all Jo tiopuutuualap au,. •(dOla aql ui luudiop.ud u aq of sasuoo Iunpiniput /Cue uo alup all puu d02ICI aul Japun alquicud 11Jauaq /uu Jo lunowu puu 114211 alp 'uopudtopJud dO 1U Joj gLgi2ga s,Iunptntput tut u ui I ui Q a SUO0 of k n.Lluoulnt; &Juuogaxostp anul Iluls p.uog als •ssauisnq slit Jo uopousutq alp puu d02IQ all Jo uoilugstuiwpu all JoJ sapu usilqulsa tiuls awp of awl wag p1uog all `dOIQ at[I 3o suopuliwil all of loaRinS •saln'Jo luawysggElsg '3 •smut oiquoilddu imp Attu puu l°V all Jo suop.od alquoilddu all 'apoD all of luunsind dOUQ alp JoJ poip Jo paingpasip aq of ponnbai ulup. puu 'swnlal uouutwojui 'sl.iodal 'suopduosap AJESS000u IIu 'oq Amu OSEO all SE 'satouagu lu3uawtuano2 aluudoJddg OLD ulinn pall Jo slunptniput Jaulo 'puu dO2IQ agl to t'upudiapaud siagwaw of palnqulslp puu paauda.zd oq of asnua Jo a.iudaxd hurts pJuog agi 'd02IQ all Jo sailtliqug puu slassu aril Jo-uopunlun aryl JoJ LJUSsao0U aq Attu sE ulup lion uiJoJ wawa/woo lit 'ldax aq of asnuo Jo 'daax ilugg' p1uog alp put 'lunoa0V dOl( s,JaquayAl laud ui saoutpq lunpiniput alp ffuinnogs spxoaaJ 2utpnloui 'douQ all Jo uopipuoo puu uopuxado all �uinnols splooal 'patipuptu. .aq of asnua Jo 'u1Eluiuw hugs pJuog ate •sl.iodaU puu sp100011 `slunoaod lunpinipuI '$ •JIaswil of lflanisnloxa ffutlulai uopsanb icuu uo alon lou Bugs aalstu1 v •aptaap liuls 'uopa1astp Nos mall Ui 'iCOyl SE 'dOUQ all tupuawaldwi lit asn.ioJ paldopu lu0wa0Jffu lsiul Acuu iapun OOISTLII su wall of paluuJff o'soul uuul Imp 4d02iG all Joplin sapnp mate Jo uopiod yaps Jo Ilu suosIad Jallo of alu2alap Jo soniiaswatp 2uowB aluaol1E Attu puu :dOUQ au3 Jo suoisinoJd all lino ffuILJ.iuo lit amnbaz Amu Raul su sOOIAJaS 2utllnsuoa puu-miunlou '&upunoaau 'luaualo tons JoJ aptnoxd puu sluo2u doldwa 'lasunoo uiul0J Amu .jp qoq atoll Ito luawdud Attu wpm Jo luawiwsut du Jantlap•Jo alnaaxa of luaffu Aug Jo Jagwnu Haul Jo 010w Jo olio azuoulnu Auto :smuJJE Jtall Jo lanpuoa all JoJ alquxisop wasp Mall su suouuln20J puu saxtipaooJd anqugsiuiwpu bans ldopu Attu .auptuolap [tugs Hall su sJannod lions ulim-saallnuwoogng lions Jagwnu Jiatp waglutoddu Amu p.uog aul Jo •siagwaul ays •pJuog alp ui paauld aq Hugs slassu s,d07IQ all Jo luawlsanui all ffutaasJono Jo Aimcguodsol all put dOIQ all Jo suotsino1d all lino 2uit(ubo JoJ 2iligisuods0J all 'dOIQ all Jo uopu1lstunupE IEJaua2 atl,L 'dOUG all sJalsiuiwPV p1uog „a 'd02IQ JO uoquxlsiuputpd •aaua10Ja1 dq palEJodJoaut - tgaJaq 'Et uopoos lit walsIS all Japun paprnoJd asyvuollo su Janollo.T D, Limitation of Liability. (1) The Trustees shall not incur . y liability individually or on behalf of any other individuals for any act or failure to act, made in good faith in relation to the DROP or the funds of the DROP. (2) Neither the Board nor any Trustee of the Board shall be responsible for any reports furnished by a y expert retained or employed by the Board, but they shall be entitled to rely thereon as well as on certificates furnished by an accountant or an actuary, and on all opinions of counsel. The Board shall be fully protected with respect to any action taken or suffered by it in good faith in reliance upon such expert, accountant, actuary or counsel, and all actions taken or suffered in such reliance shall be conclusive upon any person with any interest in the DROP. General Provisions. Amendment of DROP. The DROP may be amended by an ordinance of the City at any time and from time to time. and retroactively if deemed necessary or appropriate, to amend in whole or in part any or all of the provisions of the DROP. However, except as otherwise provided by law, no amendment shall make it possible for any part of the DROP's funds to be used for, or diverted to, purposes other than for the exclusive benefit of persnns. entitled to benefits under the DROP. No amendment shall be made which has the effect of decreasing the balance of the DROP Account of any Member. 13, Facility of Payment. If the Board shall find that a Member or other person entitled to a benefit under the DROP is unable to care for his affairs because of illness or accident or is a minor, the Board may direct that any benefit due him, unless claim shall have been made for the benefit by a duly appointed legal representative, be paid to his Spouse, a child, a parent or other blood relative, or to a person with whom he resides. Any payment so made shall be a complete discharge of the liabilities of the DROP for that benefit. C., Information. Each Member, Beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on his account under the DROP, shall file with the Board the information that it shall require to establish his rights and benefits under the DROP. f,. Prevention of Escheat. If the Board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the Board may, no earlier than three (3) years from the date such payment is due, mail a notice of such due and owing payment to the last known address of such person, as shown on the records of the Board or the City. If such person has not made written claim therefor within three (3)-months of the date of the mailing, -7- the Board may, if it so elects and upon receiving advice from counsel to the DROP, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the DROP. Upon such cancellation, the DROP shall have no further liability therefor except that, in the event such person or his Beneficiary later'notifies the Board of his whereabouts andsequests the payment or payments due to him under the DROP, the amount so applied shall be paid to him in accordance with the provisions of the DROP. E. Written Elections, Notification. (1), Any elections, notifications or designations made by a Member pursuant to the provisions of the DROP shall be made in writing and filed with the Board in a time and manner determined by the Board under rules uniformly applicable to all employees similarly situated. The Board reserves the right to change from the time and manner for making notifications, elections or designations by Members under the DROP if it determines after due deliberation that such action is justified in that it improves the administration of the DROP.' In the event of a conflict between the provisions for making an election, notification or designation set forth in the DROP and such new administrative procedures, those new administrative procedures shall prevail. ,(2) Each Member or Retiree who has a DROP Account shall be responsible for furnishing the Board with his current address and any subsequent changes in his address. Any notice required to be given to a Member or Retiree hereunder shall be deemed given if directed to him at the last such address given to the Board and mailed by registered or certified United States mail. If any check mailed by registered or certified United States mail to such address is returned, mailing of checks will be suspended until such time as the Member or Retiree notifies the Board of his address. Benefits Not Guaranteed. All benefits payable to a Member from the DROP shall be paid only from the assets of the Member's DROP Account and neither the City nor the Board shall have any duty or liability to furnish the DROP with any funds, securities or other assets except to the extent required by any applicable law. • Construction. (1) The DROP shall be construed, regulated and administered under the laws of Florida, except where other applicable law controls. (2) The titles and headings of the subsections in this Section 25 are for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control. IL Forfeiture of Retirement Benefits. Nothing in this Section shall be construed to remove DROP participants from the scope of Section 20 above or Section 112.3173, Florida -8- Statutes. DROP participants who commit a specified offense or whose employment is terminated as described in Section 20 while employed, will be subject to forfeiture of all retirement benefits, including DROP benefits, pursuant to the above provisions of law. 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 , 1999. APPROVED: ATTEST: CITY OF OCOEE, FLORIDA By: Jean Grafton, City Clerk S. Scott Vandergrift, Mayor (SEAL) ADVERTISED , 1999 READ FIRST TIME , 1999 READ SECOND TIME AND ADOPTED , 1999. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS ' day of , 1999. CHRISTIANSEN&DEHNER, P.A. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1999 UNDER AGENDA ITEM NO. bm\ocoee\gen\09-10-99.ord -9-