HomeMy WebLinkAboutItem 09 First Reading of Ordinance Amending the City of Ocoee Police Officer’s and Firefighters’ Retirement Trust Fund
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: February 20, 2024
Item #: 9
Contact Name: Melanie Sibbitt Department Director: Melanie Sibbitt
Contact Number: Ext. 1026 City Manager: Robert Frank
Subject: First Reading of Ordinance Amending the City of Ocoee Police Officer’s and
Firefighters’ Retirement Trust Fund Section 27 – Deferred Retirement Option Plan. (Pension
Board Attorney Herrera)
Background Summary:
The Police & Firefighters’ Retirement Board’s Actuaries and Consultants, Foster & Foster, reviewed and
approved the proposed ordinance following the City Commission ratification of the Ocoee Professional
Firefighters Union, I.A.F.F. Local 3623, Collective Bargaining Agreement. This ordinance includes an
amendment to Section 27 – Deferred Retirement Option Plan, extending the maximum DROP participation
period for Firefighter members from 60 months to 96 months, effective October 1, 2023, starting from the
member's initial eligibility for Normal Retirement, which is also specified within the Collective Bargaining
Agreement.
Foster & Foster has concluded that implementing these changes will not affect the funding requirements of the
program as they do not alter the valuation results. Therefore, a formal Actuarial Impact Statement is deemed
unnecessary to support the adoption of these amendments.
Issue:
Should the Honorable Mayor and City Commissioners adopt an Ordinance amending Section 27 – Deferred
Retirement Option Plan which increases the maximum DROP participation period for Firefighter members from
60 months to 96 months, beginning on the date which the member first becomes eligible for Normal
Retirement?
Recommendations:
The Ocoee Police & Firefighters’ Retirement Board’s Actuaries and Consultants Foster & Foster respectfully
recommends that the Honorable Mayor and City Commissioners adopt the attached Ordinance amending the
City of Ocoee Police Officers’ & Firefighters’ Retirement Trust Fund, to incorporate changes already specified
within the Collective Bargaining Agreement. Adoption of the proposed changes will have no impact on the
assumptions used in determining the funding requirements of the pension program.
Attachments:
1. Ordinance
2. Foster & Foster Impact Letter Dated January 25, 2024
Page 183 of 309
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
Financial Impacts:
None, as indicated in the attached letter from Douglas Lozen of Foster & Foster.
Type of Item: First Reading
Page 184 of 309
1
ORDINANCE NO.
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 2010-019, AS
SUBSEQUENTLY AMENDED; AMENDING 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 the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended,
is hereby further amended by amending Section 27, Deferred Retirement Option Plan, to
read as follows:
SECTION 27. DEFERRED RETIREMENT OPTION PLAN.
[…]
2. Participation
A. [no change]
B. [no change]
C. Period of participation.
1.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
Page 185 of 309
2
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.
2. Effective October 1, 2023, a Firefighter Member shall
be eligible to participate in the DROP for a period not
to exceed ninety-six (96) months beginning on the date
which the Member first becomes eligible for normal
retirement.
a. A Firefighter Member who entered the DROP
prior to October 1, 2023 and has not reached
their maximum DROP participation period of 60
months as of October 1, 2023, may, in
accordance with the conditions specified below,
elect to extend their maximum DROP
participation period from sixty (60) months to
ninety-six (96) months. Upon approval by the
Board, a Member's election to extend
participation in the DROP shall extend the
Member's DROP participation period as if the
maximum participation period upon entry into
the DROP was 96 months (e.g. adding 36
months to the initial 60-month maximum DROP
participation period). For Members who elect to
extend their maximum DROP participation, the
following conditions shall apply to any such
extension of DROP participation:
i. The election shall be irrevocable;
ii. The Member must, in writing, (1) agree to
terminate employment at the end of the
extended DROP participation period, and
(2) submit an irrevocable, unconditional
letter of resignation prior to extending the
DROP, which resignation shall be
effective on the date the DROP
participation period ends (which shall be
the earlier of the termination of the
member's employment, for any reason,
or the last day of the extended maximum
DROP participation period); and
Page 186 of 309
3
iii. The Member must elect to extend the
DROP participation period and submit
the written requirements noted above
prior to the end of the member's initial 60
month DROP participation period. In the
event a Member who is eligible to extend
his/her maximum DROP participation
period does not timely elect to do so, the
Member's DROP participation period
shall not be extended, and the maximum
DROP participation period shall remain
60 months.
3. For a DROP participant who fails to terminate city
employment at the expiration of the 96-month
maximum DROP participation period, such Member
shall be deemed not to be retired, the DROP election
shall be null and void, and the Member shall have no
accumulated DROP benefits. Retirement System
membership shall be reestablished retroactively to the
original date of the commencement of the DROP, and
the Member shall be required to pay to the Retirement
System the Member contributions as if they had
continued service to the city, and the city contributions
during the period such Member participated in the
DROP, plus an interest rate equal to the annual
assumed investment return during each year the
Member participated in the DROP.
[…]
3. Funding
A. [no change]
B. Transfers From Retirement System
[…]
(3) A Member's DROP Account shall only be credited or
debited with earnings or interest and monthly benefits
while the Member is a participant in the DROP and
after the Member dies, retires or terminates his
employment as a Police Officer or Firefighter. If a
Page 187 of 309
4
Member is employed by the City Fire and Police
Departments after electing to cease participation in the
DROP pursuant to subsection 2.D.(1)(a) or after
participating in the DROP for five (5) years, then
beginning with the next payment following cessation of
participation or beginning with the Member's 61st
month of DROP participation, whichever occurs first,
the Member's DROP Account will no longer be credited
or debited with earnings or interest, nor will monthly
benefits be transferred to the DROP account. All such
non-transferred amounts shall be forfeited and
continue to be forfeited while the Member is employed
by the City Fire and Police Departments. A Member
employed by the City Fire and Police Departments
after five (5) years of DROP participation will still not be
eligible for pre-retirement death or disability benefits,
nor will he accrue additional Credited Service, except
as provided for in Section 29. Notwithstanding,
effective October 1, 2023, for all Firefighter Members
who elect to participate in the DROP for eight (8) years,
then beginning with the next payment following
cessation of participation or beginning with the
Member’s 97th month of DROP participation, whichever
occurs first, the Member’s DROP account will no longer
be credited or debited with earnings or interest, nor will
monthly benefits be transferred to their DROP account.
All such non-transferred amounts shall be forfeited and
continue to be forfeited while the Member remains
employed by the City as a Firefighter.
[…]
SECTION 4. Repeal of Ordinances. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
SECTION 5. 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.
Page 188 of 309
5
SECTION 6. Effective Date. This Ordinance shall become effective upon
passage; however, the provisions of this Ordinance that are specified to take effect as of
a date certain shall take effect as of the date specified herein.
Page 189 of 309
6
PASSED AND ADOPTED this ____ day of _________________, 2024.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
MELANIE SIBBITT RUSTY JOHNSON, MAYOR
CITY CLERK
(SEAL)ADVERTISED , 2024
READ FIRST TIME , 2024
READ SECOND TIME AND ADOPTED
, 2024
UNDER AGENDA ITEM NO.
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day of , 2024.
FISHBACK DOMINICK
By:
Richard Geller, City Attorney
Page 190 of 309
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 · (239) 433-5500 · Fax (239) 481-0634 · www.foster-foster.com
January 25, 2024
VIA EMAIL
Board of Trustees
City of Ocoee
Police Officers’ and Firefighters’ Pension Board
c/o Ms. Livia Guiliani
3810 Inverrary Blvd, Suite 303
Lauderhill, FL 33319
Re: City of Ocoee Police Officers’ and Firefighters’ Retirement Trust Fund
Dear Board:
We have reviewed the proposed ordinance amending the plan as follows:
- Effective October 1, 2023, an increase in the maximum DROP participation period for Firefighter
members from 60 months to 96 months, beginning on the date which the member first becomes
eligible for Normal Retirement.
We have determined that the adoption of the proposed changes will have no impact on the assumptions
used in determining the funding requirements of the program. Because the changes do not result in a
change in the valuation results, 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:
The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial
opinions contained herein.
If you have any questions, please let me know.
Sincerely,
Douglas H. Lozen, EA, MAAA
Mr. Keith Brinkman
Bureau of Local Retirement Systems
Division of Retirement
3189 S. Blair Stone Rd.
Tallahassee, FL 32301
Mr. Steve Bardin
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
3189 S. Blair Stone Rd.
Tallahassee, FL 32301
Page 191 of 309