HomeMy WebLinkAboutVI (C) Second Reading of Ordinance No. 2002-13, Amendment to Police Officers and Firefighters' Retirement Trust Fund Agenda 4-16-2002
Item V I C
Ocoee Police Department
175 N. Bluford Avenue • Ocoee, FL 34761 • (407) 656-1518 • Fax (407) 656-021 R
TO: The Honorable Mayor and Board of City Commissioners
FROM: Tony Wilson, Chairperson Police & Fire Retirement Trust Fund"Tha
DATE: March 12, 2002
SUBJECT: ORDINANCE FOR POLICE OFFICERS & FIREFIGHTERS
RETIREMENT TRUST FUND
STAFF REPORT
This Ordinance has been requested by the Police & Fire Board of Trustees. This Ordinance
amends and brings the plan into compliance with the Economic and Tax Relief Reconciliation
Act of 2001 and adds additional prior service buyback opportunities.
A teller is en route from Foster and Foster, Actuaries for the Pension Board, stating that there
will be no impact to the City in the adoption of this Ordinance as any cost increase to the fund
shall he funded by the individual requesting any buyback Attorney Dehner will make himself
available to answer any questions regarding this Ordinance at the second reading.
It is respectfully recommended that the Honorable Mayor and Board of City Commissioners
approve the adoption of this Ordinance allowing buy back opportunities for members of
Police Officers & Firefighters Retirement Trust Fund.
FOSTER & FOSTER, INC.
s laa remones,
6290 CORPORATE COURT, C-201
TELEPHONE FORT MYERS, FLORIDA 33919 FACSIMILE
(941) 433-5500 (941) 481-0634
March 19, 2002
Capt. Tony Wilson, Chairman
City of Ocoee Police Officers'
and Firefighters' Pension Board
150 North Lakeshore Drive
Ocoee, FL 34761
Re: Police Officers' and Firefighters'
Retirement Trust Fund
Dear Tony:
In response to Lee Dehner's letter dated February 26, 2002, we have reviewed the
proposed ordinance amending the plan by bringing it into compliance with the
provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, and
adding a new Section 28, Military Service Prior To Employment. We have determined
that its adoption will have no financial impact on the funding requirements to the
program.
Because the changes do not result in a financial impact on the funding requirements, it
is our opinion that a formal Actuarial Impact Statement is not required in support of its
adoption. However, since the Division of Retirement must be aware of the current
provisions of all public pension programs, it is recommended that you send a copy of
this letter and a copy of the fully executed Ordinance to each of the following offices:
Mr. Charles Slavin Patricia Shoemaker
Bureau of Local Retirement Systems Municipal Police and Fire
Division of Retirement Pension Trust Funds
Cedars Executive Center, Bldg. C Division of Retirement
2639 North Monroe Street P.O. Box 3010
-Tallahassee, FL 32399-1560 Tallahassee, FL 32315-3010
If you have any questions, please let me know.
Sincerely,
\Idu-
Patrick T. Donlan
PTD/hja
cc: H. Lee Dehner, Board Attorney
James P. Gleason, City Manager rj")/
•
C)M �Y
LAW OFFICES
CHRISTIANSEN & DEttNER, P.A.
63 SARASOTA CENTER BLVD.
SUITE 107
SCOT] B.CHRISnANSEV SARASOTA, FLORIDA 34240 PHONE:(941)377-2200
H.LEE DINNER FAx: (941)377-4848
February 26, 2002
Mr. James P. Gleason
City Manager
City of Ocoee
150 N. Lakeshore Drive
Ocoee, FL 34761-2258
Re: City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund
Dear Jim:
As directed at the last meeting of the Board of Trustees of the designated pension plan,
enclosed please find a proposed ordinance for the City of Ocoee Municipal Police Officers' and
Firefighters' Retirement Tnist Fund which brings the plan into compliance with the Economic
and Tax Relief Reconciliation Act of 2001 and adds additional prior service buy-back
opportunities. Please set this ordinance for first and second reading before the City
Commission.
By copy of this letter, I am requesting that Ward Foster prepare a letter of no impact
and forward it to you.
If you have any questions, please do not hesitate to contact me.
Yours very truly,
H. Lee Dehner
HLD\noc
Enclosure
cc: Tony Wilson, with enclosure
Ward Foster, with enclosure
3- I-oz
ORDINANCE NO. 2002-13
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL POLICE
OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST
FUND; AMENDING ORDINANCE NUMBER 96-20, AS
SUBSEQUENTLY AMENDED; AMENDING SECTION 1,
DEFINITIONS, TO AMEND THE DEFINITION OF
"ACCUMULATED CONTRIBUTIONS"; AMENDING
SECTION 15, MAXIMUM PENSION; AMENDING SECTION
25, DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS; AMENDING SECTION 26, PRIOR
POLICE AND FIRE SERVICE; ADDING A NEW SECTION
28, MILITARY SERVICE PRIOR TO EMPLOYMENT;
PROVIDING FOR SEVERABILITY OF PROVISIONS;
REPEALING ALL ORDINANCES LN 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 further amended by amending Section 1, Definitions, amend the definition
of`Accumulated Contributions", to read as follows:
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 purtivu of any payment representing the amount athibutablc to Mwub„I
w„t.ibutionn based ou thb applicable M„,,,b,,. cotdiibutiou .atu interest and any
t€quired a t jelly calculated payments for the purchase of ch r dit d ervice, shall
be included in Accumulated Contributions.
SECTION 1: 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 further amended by amending Section 15, Maximum Pension, subsection 1.
Basic Limitation and subsection 3, Adjustments in Limitations, paragraph A., to read as follows:
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 System shall not exceed
$90,660 one hundred sixty thousand dollars ($160 000.001.
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;
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(2) Any other benefit not required under §415(b)(2) of the Code and Regula-
tions thereunder to be taken into account for purposes of the limitation of
§415(b)(1) of the Code.
3. Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty-two (62), the ninety one hundred sixty thousand dollar ($90,006)
($160 000.00) limitation prescribed by this Section shall be reduced in
accordance with Regulations issued by the Secretary of the Treasury pur-
suant to the provisions of§415(b) of the Code, but not less than seventy-
five thousand dollars ($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 seventy-five dollar ($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 Code.
SECTION 4: 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 further amended by amending Section 25, Direct Transfers of Eligible
Rollover Distributions, to read as follows:
SECTION 25. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBi1TIONS.
1. Rollover Distributions
A. General.
This Section applies to distributions made on or after January 1, -1993
1CX12. 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.
B Definitions.
(1) 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 expectancies) 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. Any portion of any distribution which would be
includible in gross income will be an eligible rollover distribution
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if the distribution is made to an individual retirement account
described in section 408(a) to an individual retirement annuity
described in section 408(b) or to a qualified defined contribution
plan described in section 401(a) or 403(a) that grees to separately
account for amounts so transferred in u i r se amate1
accounting for the portion of such distribution which is includible
irrgross income and the portion of such distribution which is not
so includible
lk 12) 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, an eligible deferred compensation plan described in section
457(b) of the Code which is maintained by an elioihle employer
described in section 457(e)(11(A) of the Code and which agrees
to separately account for amounts transferred into such plan from
this plan an annuity contract described in section 403(b) of the
Code, or a qualified trust described in section 401(a) of the Code,
that accepts the distributee's eligible rollover distribution.
Ilow���y This definition shall also apply 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.
€- 13) Distributes: A distrihutee includes an employee or former
employee. In addition, the employee's or former employee's
surviving Spouse is a distrihutee with regard to the interest of the
Spouse.
0 (41 Direct Rollover: A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund
On or after January 1. 2002 the System will accent Member rollover cash
contributions and/or direct cash rollovers of distributions made on or after January 1. 2002
as follows:
A. Direct Rollovers or Member Rollover Contributions from Other Plans
The System will accept either a direct rollover of an eligible rollover
distribution or a Member contribution of an eligible rollover distribution
from a qualified plan described in section 401(a) or 403(a) of the Code
from an annuity contract described in section 403(b) of the Code or from
an eligible plan under section 457(h) of the Code which is maintained by
a state political subdivision of a state or any agency or instrumentality
of a state or political subdivision of a state
& Member Rollover Contributions from IRAs. The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408(a) or
408(b) of the Code that is eligible to he rolled over and would otherwise
e includible in gross income,
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SECTION 5: 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 further amended by amending Section 26, Prior Police or Fire Service, to read
as follows:
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, or the years and
fractional parts of years that a Member served as a Firefighter or Police Officer for any other
i " ipall,S9untty or i ial district fire department or specal law enforcement department m
the State of Florida or jurisdiction other than the State of Florida shall be added to his or her
years of Credited Service provided that:
1. The Police Officer or Firefighter contributes to the Fund an actuarially
determined amount
and cu,diibutiou laic in LffLit at tlic mac. that the Ci Lilted Sei vice i5 Iignest d,
lie ui bin. io ieyuuetiug c.Ldit plus amounts actnaiially ClacimiaL.LI 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 years of Credited Service.
2. The request shall be made only once and made by the Pulici. Officer ui
Fiiofightm Member on or before the Into of i....lvL- eighteen (12) (18) months from the
effective date of the ordinance adopting this provision or six(6) eighteen (18) months from the
date of his or her employment or reemployment with the City Police or Fire Department,
whichever is later.
3. 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 (11 lump
sum payment to the Board, upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section for jurisdiction other than with the ci y
of Ocoee when combined with credited service purchased pursuant to Section 28 Military
Service Prior to Employment shall be uu. (I) five (51 years of Credited Service and shall
count for all purposes, except vesting and eligibility for not-in-line of duty disability
benefits. There shall be no maximum purchase of credit for prior service with the City of
Ocoee and such credit shall count for all purposes. including vesting_
In no event however may Credited Service he purchased pursuant to this
Section for prior service with any other municipal county or special district fire department
or special law enforcement department if such prior service forms or will form the basis of a
retirement benefit or pension from another retirement system or plan as set forth in Maximum
Pension section of your plan document
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SECTION 6: 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 further amended by adding a new Section 26, Prior Police or Fire Service,
to read as follows:
SECTION 28 MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a Firefighter or Police Officer serves or has
served on active duty 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
and honorably or under honorable conditions prior to first and initial employment with the
city Fire Department or City Police Department shall he added to his years of Credited Service
provided that
1 The Member contributes to the Fund an actuarially determined amount so that
the crediting of the purchased 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
years of Credited Service
2. The request shall be made on once and made by the Member on or before
eighteen (l8) mondts from the effective dat of the ordinance adoptng this Section or eicrhteen
f 181 months from the date of his employment with the City Fire Department or City Police
Department whichever is later
I Payment by the Member of the_required amount shall be made within six (61
months of his request for credit and shall be made in one (ll lump sum payment to the Board
upon receipt of which Credited Service shall be given
4 The maximum credit under this Section when combined with credited service
purchased pursuant to Section 26 Prior Police or Fire Service for jurisdiction other than the
city of Ocoee shall be five (5) years.
credited Service purchased pursuant to this Section shall count for all purposes
except vesting and eligihili y for not-in-line of duty disability benefits_
SECTION 7. Repeal of Ordinances All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION S. Sevetability. 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 9. Effective Date. This ordinance shall take effect upon second reading and
adoption.
PASSED AND ADOPTED this day of , 2002.
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APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
By:
Jean Grafton, City Clerk S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED
READ FIRST TIME
READ SECOND TIME AND ADOPTED
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day of , 2002.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON , 2002, UNDER
AGENDA ITEM NO.
floc\oaoee\pQo1-30-02-ord
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