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HomeMy WebLinkAboutOrd. 91-08 ORDINANCE NO. 91- 08 . AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND; AMENDING AND RESTATING IN FULL ORDINANCE NUMBER 877; PROVIDING FOR DEFINITIONS; PROVIDING FOR PLAN MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENTi PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR PRE-RETIREMENT DEATH BENEFITS; PROVIDING FOR VESTING; PROVIDING FOR OPTIONAL FORMS OF BENEFITS; PROVIDING FOR BENEFICIARY BENEFITS; PROVIDING A CLAIMS PROCEDURE BEFORE BOARD DECISION; PROVIDING FOR A ROSTER OF RETIREES; PROVIDING AUTHORITY FOR RETAINING A BOARD ATTORNEY AND OTHER PROFESSIONALS; PROVIDING FOR MAXIMIUM PENSION BENEFITS; PROVIDING FOR COMMENCEMENT AND DISTRIBUTION OF BENEFITS; PROVIDING MISCELLANEOUS PRO- VISIONS; PROVIDING FOR REPEAL OR TERMINATION OF THE SYSTEM; PROVIDING FOR EXEMPTION FROM EXECUTION AND NON-ASSIGNABILITY; PROVIDING FOR PENSION VALIDITY; PROVIDING FOR FORFEIT- URE OF PENSION; PROVIDING FOR INDEMNIFICATION; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the city of Ocoee desires to amend and modify the existing pension plan applicable to the employees of the City of Ocoee in order to replace such pension plan in part with a General Employee's Retirement Trust Fundi and WHEREAS, the City of Ocoee desires to transfer a portion of the funds contained in the existing pension program into the General Employee's Retirement Trust Fund, such transfer not constituting a distribution to participants to the fund. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: Section 1. Authoritv. 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. The present Ordinance Number 877, adopted by the City commission of the City of Ocoee on May 6, 1986, is hereby amended and restated in full as set forth in THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND, a copy of which is attached hereto as Exhibit "A" and by this reference made a part hereof. Section 3. Conflicts. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict herewith are hereby repealed and rescinded. section 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not 4It affect the validity of the remaining portion hereto. section 5. Effective Date. This Ordinance shall become effective October 1, 1991. PASSED AND ADOPTED this ~ day of APPROVED: A1-+y , 1991. ATTEST: CITY OF OCOEE, FLORIDA (SEAL) ADVERTISED May 9 , 1991 READ FIRST TIME May 7 , 1991 READ SECOND TIME AND ADOPTED Jl1~ 0>( , 1991 FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FO~D LEGALITY this ~ day of Q;t , 1991. CHRISTIANSEN, DEHNER & WATTS, P.A. SBPy~.Cial counseflQl __ ~{. A_~V1 '-" " APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON MA-I J., , 1991 UNDER AGENDA TEM NO. V<!.... . public/mh4758 (3) (05/08/91) - 2 - l CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND . Section 1. DEFINITIONS. 1 . As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Accumulated Contribution means a Member's own contributions without interest. Act means the Employee Retirement Income Security Act of 1974 (P.L. 93- 406) as amended by the Retirement Equity Act of 1984 (P,L. 98-397) and any regulations issued thereunder by the Department of Labor and the Internal Revenue Service, as that Statute and these regulations shall be amended. Actuarial Equivalent means a benefit or amount of equal value, based upon the UP 1984 Mortality Table and an interest rate of eight (8%) per annum. Average Final Compensation means one-twelfth (1/12) of the average salary of the five (5) best years of the last ten (10) years of credited service prior to retirement, termination, or death. A year shall be twelve (12) consecutive months, Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been designated in writing by the Member and filed with the Board. If no such designation is in effect, or if no person so designated is living, at the time of death of the Member, the beneficiary shall be the estate of the Member. . Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as Trustees of the Fund. City means City of Ocoee, Florida. Page 1 of 40 Pages . . ~ means the Internal Revenue Code of 1986, as amended from time to time. Credited Service means the total number of years and fractional parts of years of service as a General Employee omitting intervening years or fractional parts of years when such General Employee may not be employed by the City. A General Employee may voluntarily leave his contribution in the Fund for a period of five (5) years after leaving the employ of the City pending the possibility of being rehired, and remaining employed for a period of not less than three (3) years, without losing credit for the time of active participation as a General Employee. If the General Employee does not remain employed for a period of three (3) years upon reemploy- ment within five (5) years, then the accumulated contribution will be returned. The years or fractional parts of years that a General Employee serves in the military service of the Armed Forces of the United States or the United States Merchant Marine, voluntarily or involuntarily, upon being granted leave by the City and separation from employment as a General Employee with the City, shall be added to his years of credited service provided that: A. The General Employee must return to his employment as a General Employee with the City within one (1) year from the date of his military discharge. B. The General Employee deposits into the Fund the same sum that Member would have contributed if he had remained a General Employee, plus an amount of interest that substantially approximates the amount earned by the Fund from the date of return to employment to the date of deposit. C. The maximum credit for military service shall be five (5) years. Page 2 of 40 Pages . . Effective Date means October 1, 1991. Fund means the Trust Fund established herein as part of the System. General Emolovee means any actively employed person in the regular full-time service of the City, including those in their initial probationary employment period, but not including certified police officers and certified firefighters, employed by the City. For purposes of this Pension System, the City Manager, Assistant City Manager and City Attorney shall not be deemed General Employees, and, therefore, shall not be Members of the Plan. Member means an actively employed General Employee who fulfills the prescribed participation requirements. Salary means the total monthly compensation reported on the General Employee's W-2 form plus all tax deferred items of income. Soouse means the lawful wife or husband of a Member at the time of pre- retirement death or retirement. System means the City of Ocoee Municipal General Employee's Retirement Trust Fund as contained herein and all amendments thereto. 2. Masculine Gender. The masculine gender, where used herein, unless the context specifically requires otherwise, shall include both the feminine and masculine genders. Section 2. MEMBERSHIP. 1. Conditions of Eligibilitv All General Employees as of the effective date, and all future new General Employees, shall become Members of this System as a condition of employment. The following employees, however, may, within ninety (90) days of the effective date of this ordinance or within ninety (90) days of the date of his Page 3 of 40 Pages . . employment, whichever is later, notify the Board and the city of his election not to be a member of the plan. Thereupon, it shall be the duty of the Board of Trustees to refund, from the Fund, the full amount without interest, withheld from such employee's salary and deposited in the Fund. Thenceforward, no withholding shall be made from his salary and all employees who have given such notice shall be banned from participating in the System. The employees who are eligible to opt out of the System are: a) Finance Director b) Public Works Director c) City Engineer d) Personnel and Human Relations Director e) Planning Director , f) City Clerk g) Chief Building Official h) Administrative Services Director 2. Membershio Each General Employee shall complete a form prescribed by the Board providing the following information: A. Acceptance of the terms and conditions of the Retirement System, and, B. Designation of a beneficiary or beneficiaries, and, 3. Change in Designation of Beneficiary A Member may from time to time change his designated beneficiary by written notice to the Board upon forms provided by the Board. Upon such change, the rights of all previously designated beneficiaries to receive any benefits under the System shall cease. Section 3. BOARD OF TRUSTEES. 1. The sole and exclusive administration of and responsibility for the proper operation of the retirement system and for making effective the provisions of this Page 4 of 40 Pages . . ordinance are hereby vested in a Board of Trustees consisting of five (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the municipality, who shall be appointed by the Ocoee City Commission, and two of whom shall be full-time General Employee Members of the system, who shall be elected by a majority of the General Employees who are Members of the system. The fifth Trustee shall be chosen for a two (2) year term by a majority of the previous four Trustees as provided for herein, and such person's name shall be submitted to the Ocoee City Commission. Upon receipt of the fifth person's name, the Ocoee City Commission shall, as a ministerial duty, appoint such person to the Board of Trustees as its fifth Trustee. The fifth Trustee shall have the same rights as each of the other four Trustees appointed or elected as herein provided and shall serve a two (2) year term unless the office is sooner vacated and may succeed him- self in office. Each resident Trustee shall serve as Trustee for a period of two (2) years, unless sooner replaced by the Ocoee City Commission at whose pleasure the Trustee shall serve, and may succeed himself as a Trustee. Each General Employee Trustee shall serve as Trustee for a period of two (2) years, unless he sooner leaves the employment of the City as a General Employee or otherwise vacates his office as Trustee, whereupon a successor shall be chosen in the same manner as the departing Trustee. Each General Employee may succeed himself in office. The Board of Trustees shall meet at least quarterly each year. Each Board of Trustees shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and descrip- tion. 2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The Secretary of the Board shall keep a complete minute book of the Pags 5 of 40 Pagss actions, proceedings, or hearings of the Board. The Trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by law. 3. Each Trustee shall be entitled to one vote on the Board. Three (3) . affirmative votes shall be necessary for any decision by the Trustees at any meeting of the Board. A Trustee shall have the right to recuse himself from voting as the result. of a conflict of interest provided that Trustee states in writing the nature of the conflict. 4. The Board of Trustees shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the Retirement System. The compensation of all persons engaged by the Board of Trustees and all other expenses of the Board necessary for the operation of the Retirement System shall be paid from the Fund at such rates and in such amounts as the Board of Trustees shall agree. 5. The duties and responsibilities of the Board of Trustees shall include, but not necessarily be limited to, the following: A. To construe the provisions of the System and determine all questions arising thereunder. B. To determine all questions relating to eligibility and participation. C. To determine and certify the amount of all retirement allowances or other benefits hereunder. D. To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the System. E. To distribute to Members, at regular intervals, information . concerning the System. Pege 6 of 40 Pages . . F. To receive and process all applications for participation and benefits. G. To authorize all payments whatsoever from the Fund, and to notify the disbursing agent, in writing, of approved benefit payments and other expenditures arising through operation of the System and Fund. H. To have performed actuarial studies and at least biennial valuations, and make recommendations regarding any and all changes in the provisions of the System. I. To perform such other duties as are specified in this Ordinance. Section 4. FINANCES AND FUND MANA GEMENT. Establishment and Ooeration of Fund. 1. As part of the System, there is hereby established the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, including the assets of the prior Municipal General Employee's Retirement Trust Fund. 2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board of Trustees. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authoriza- tion from the Board. 3. All funds and securities of the Municipal General Employee's Retirement Trust Fund may be deposited by the Board of Trustees with the Finance Director of the municipality, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he is liable for the safekeeping of funds for the municipality. However, any funds and securities so deposited with the Finance Director of the municipality shall be kept in a separate fund by the Finance Director Page 7 of 40 Pages or clearly identified as such funds and securities of the Municipal General Employee's Retirement Trust Fund. In lieu thereof, the Board of Trustees shall deposit the funds and securities of the Municipal General Employee's Retirement Trust Fund in a . qualified public depository as defined in ~280.02, Florida Statutes, which depository with regard to such funds and securities shall conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment advisor registered under Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all fund assets. 4. All funds and securities of the System may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: A. Current amounts of Accumulated Contributions of Members on both an individual and aggregate account basis, and B. Receipts and disbursements, and C. Benefit payments, and D. Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the City, and E. All interest, dividends and gains (or losses) whatsoever, and . F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. Page 8 of 40 Pages 5. An independent audit shall be performed annually by a certified public accountant for the most recent fiscal year of the City showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. , 6. The Board of Trustees shall have the following investment powers and authority: . . A. The Board of Trustees shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the Ocoee City Commission to amend or terminate this Trust, provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this System. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its Agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund. All monies paid into or held in the Pension Fund shall be invested and reinvested by the Board and the investment of all or any part of such funds shall be limited to: (1) Annuity and life insurance contracts of life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all of the participants in the B. Page 9 of 40 Pages . , . . C. Fund shall be entitled under the provisions of this Plan and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank or a savings/building and loan association insured by the Federal Deposit Insurance Corporation. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. (4) Bonds issued by the State of Israel. (5) Bonds, stocks, commingled funds administered by National or State Banks or evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia, provided that the corporation is traded on a nationally recognized Exchange and holds a rating in one of the three highest classifications by a major rating service, and if such investments are made in a pooled fund administered by a state or national bank, then the rating of each issue in the pooled fund shall hold a rating within the top three (3) rating classifications of a major rating service. The Board of Trustees 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 Psgs 10 of 40 Psges . . D. investments in common stock, capital stock and convertible bonds at cost exceed fifty percent (50%) of the assets of the Fund. The Board of Trustees may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the System. No person or entity shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his or its own negligence, willful misconduct or lack of good faith. The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Trust Fund. The Board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the Trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an E. F. G. Page 11 of 40 Pages . . H. owner with respect to stocks, bonds, or other investments comprising the Fund which it may deem to be to the best interest of the Fund to exercise. The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as Trustee under this Ordinance, can reasonably be taken or performed only after receipt by it from a Member, the City, or any other entity, of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it. Any overpayments or underpayments from the Fund to a Member or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board. Over payment shall be charged against payments next succeeding the correction. Underpayments shall be made up from the Trust Fund. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for. In any application to or proceeding or action in the courts, only the Board shall be a necessary party, and no Member or other I. J. K. L. Paga 12 of 40 Pages . M. person having an interest in the Fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. Any of the foregoing powers and functions reposed in the Board may be performed or carried out by the Board through duly authorized Agents, provided that the Board at all times maintains continuous supervision over the acts of any such Agent; provided further, that legal title to said Fund shall always remain in the Board of Trustees. Section 5. CONTRIBUTIONS. 1. Member Contributions. A. Amount. Members of the Retirement System shall be required to make regular contributions to the Fund in the amount of five percent (5%) of his salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board of Trustees at least monthly. The contributions made by each Member to the Fund shall be designated as employer contributions pursuant to ~414(h) of the Internal Revenue Code of 1986. 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 Plan, such contributions shall be considered to be Member contributions. B. Method. Such contributions shall be made by payroll deduction. 2. Citv Contributions. . So long as this System is in effect, the City shall make quarterly contributions to the Trust Fund in an amount equal to the difference in each year, Page 13 of 40 Pages . . betw~en the total aggregate Member contributions for the year and the total cost for the year, as shown by the most recent actuarial valuation of the system. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability over a forty (40) year period, commencing with the fiscal year in which the effective date of this system occurs. 3. Other. Private donations, gifts and contributions may be deposited to the Fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds arising from these sources may be used only for addi- tional benefits for Members, as determined by the Board, and may not be used to reduce what would have otherwise been required City contributions. Section 6. BENEFIT AMOUNTS AND ELIGIBILITY. 1. Normal Retirement Date. A Member's normal retirement date shall be the first day of the month coincident with, or the next following age sixty (60) regardless of the years of credited service. A Member may retire on his normal retirement date or on the first day of any month thereafter, and each Member shall become 100% vested in his accrued benefit on the Member's normal retirement date. Normal retirement under the Plan is retirement from employment with the City on or after the normal retirement date. 2. Normal Retirement Benefit A Member retiring hereunder on or after his normal retirement date shall receive a monthly benefit which shall commence on his Retirement Date 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 Page 14 of 40 Pages retirement benefit shall equal two percent (2%) of average final compensation, for each year of credited service. 3. Earlv Retirement Date A Member may retire on his early retirement date which shall be the first day of any month coincident with or next following the later of the attainment of age fifty (50) and the completion of five (5) years of credited service. Early retirement under the Plan is retirement from employment with the City on or after the early retirement date and prior to the normal retirement date. 4. Earlv Retirement Benefit A member retiring hereunder on his early retirement date may receive either a deferred or an immediate monthly retirement benefit payable for life as follows: . B. . A. A deferred monthly retirement benefit which shall commence on what would have been his normal retirement date had he remained a General Employee and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be determined in the same manner as for retirement as his normal retirement date except that credited service and average final compensation shall be determined as of his early retirement date; or An immediate monthly retirement benefit which shall commence on his early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in paragraph A above, which is actuarially reduced from the amount to which he would have been entitled had he retired on his normal retirement date and with the same number Page 15 of 40 Pages . of years of credited service as at the time his benefits commence and based on his average final compensation at that date. Section 7. PRE-RETIREMENT DEA TH. 1 . Prior to Vesting or Eligibilitv for Retirement. The beneficiary of a deceased Member who was not receiving monthly benefit payments, or who was not yet vested or eligible for retirement shall receive a refund of one hundred percent (100%) of the Member's Accumulated Contribu- tions., 2. Deceased General Emolovees Vested or Eligible for Retirement. For any actively employed Member who was vested or eligible for normal or early retirement as of his date of death, the benefit payable to beneficiary shall be that monthly amount which would have been payable had the deceased employee retired under normal or early retirement. Section 8. VESTING. If a Member terminates his employment with the City, either voluntarily or by discharge, and is not eligible for any other benefits under this System, Member shall be entitled to the following: 1. If the Member has less than five (5) years credited service upon termina- tion, the Member shall be entitled to a refund of his accumulated contribution or Member may leave it deposited with the Fund. 2. If the Member has five (5) or more years of credited service upon termination, the Member shall be entitled to a monthly retirement benefit that is the actuarial equivalent of the amount of such retirement income otherwise payable to him commencing at Member's otherwise normal or early retirement date, provided . he does not elect to withdraw his accumulated contributions and provided Member survives to his normal or early retirement date. Page 16 of 40 Pages . . . Section 9 OPTIONAL FORMS OF BENEFITS. 1. In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified herein, a General Employee, upon written request to the Board of Trustees and submission of evidence of good health (except that such evidence will not be required if such request is made at least three (3) years prior to the date of commencement of retirement income or if such request is made within six (6) months following the effective date of the Plan, if later), and subject to the approval of the Board of Trustees, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: A. A retirement income of a larger monthly amount, payable to the General Employee for his lifetime only. A retirement income of a modified monthly amount, payable to the General Employee during the joint lifetime of the General Employee and a dependent joint pensioner designated by the General Employee, and following the death of either of them, 100%, 66-2/3%, or 50% of such monthly amounts payable to the survivor for the lifetime of the survivor. Such other amount and form of retirement payments or benefits as, in the opinion of the Board of Trustees, will best meet the circumstances of the retiring General Employee. 2. The General Employee, upon electing any option of this Section, will designate the joint pensioner or beneficiary (or beneficiaries) to receive the benefit, if any, payable under the Plan in the event of Member's death, and will have the power to change such designation from time to time, but any such change shall be deemed a new election and will be subject to approval by the Board of Trustees. c. B. Page 1 7 of 40 Pages Such designation will name a joint pensioner or one or more primary beneficiaries where applicable. If a General Employee has elected an option with a joint pensioner or beneficiary and Member's retirement income benefits have commenced, Member . may thereafter change his designated joint pensioner or beneficiary, but only if the Board of Trustees consents to such change and if the joint pensioner last previously designated by Member is alive when he files with the Board of Trustees the request for such change. 3. The consent of a General Employee's joint pensioner or beneficiary to any such change shall not be required. 4. The Board of Trustees may request such evidence of the good health of the joint pensioner that is being removed as it may require and the amount of the retirement income payable to the General Employee upon designation of a new joint pensioner shall be actuarially redetermined taking into account the age and sex of the former joint pensioner, the new joint pensioner, and the General Employee. Each such designation will be made in writing on a form prepared by the Board of Trustees and on completion will be filed with the Board of Trustees. In the event that no designated beneficiary survives the General Employee, such benefits as are payable in the event of the death of the General Employee subsequent to his retirement shall be paid as provided in Section 10. 5. Retirement income payments shall be made under the option elected in accordance with the provisions of this Section and shall be subject to the following limitations: A. If a General Employee dies prior to his normal retirement date or early retirement date, whichever first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 7. . Page 18 of 40 Pages . . B. If the designated beneficiary (or beneficiaries) or joint pensioner dies before the General Employee's retirement under the Plan, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the General Employee upon his retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this Section or a new beneficiary is designated by the General Employee prior to his retirement and within ninety (90) days after the death of the beneficiary. If both the retired General Employee and the beneficiary (or beneficiaries) designated by Member die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of Subsection 1, the Board of Trustees may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Section 10. If a General Employee continues beyond his normal retirement date pursuant to the provisions of Section 6, Subsection 1, and dies prior to his actual retirement and while an option made pursuant to the provisions of this Section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the General Employee in the amount or amounts computed as if the General Employee had retired under the option on the date on which his death occurred. c. D. Page 19 of 40 Pages . . 6. A General Employee may not change his retirement option after the date of cashing or depositing his first retirement check. 7. Notwithstanding anything herein to the contrary, the Board in its discretion, may elect to make a lump sum payment to a Member or a Member's beneficiary in the event that the total commuted value of the remaining monthly income payments to be paid do not exceed Three Thousand Five Hundred Dollars ($3,500.00). Any such payment made to any person pursuant to the power and discretion confined upon the Board of Trustees by the preceding sentence shall operate as a complete discharge of all obligations under the Plan with regard to such Member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. Section 10. BENEFICIARIES. 1. Each General Employee may, on a form provided for that purpose, signed and filed with the Board of Trustees, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which may be payable in the event of his death; and each designation may be revoked by such General Employee by signing and filing with the Board of Trustees a new designation-of-beneficiary form. 2. If a deceased General Employee fails to name a beneficiary in the manner prescribed in Subsection 1, or if the beneficiary (or beneficiaries) named by a deceased General Employee predeceases the General Employee, the death benefit, if any, which may be payable under the Plan with respect to such deceased General Employee may be paid, in the discretion of the Board of Trustees, either to: A. The wife or dependent children of the General Employee; B. The dependent living parents of the General Employee; or C. Estate of the General Employee. Section 11. CLAIMS PROCEDURES BEFORE THE BOARD DECISION. PSgB 20 of 40 PsgBS 1. If any Member of the system has been: A. Placed on pension because the Member has served the required number of years to entitle him to a pension, or . B. Refused benefits under this Plan, and is dissatisfied with the amount of pension the Member is receiving, or believes that he should be entitled to benefits under the Plan, the Member may, in writing, request the Board to review his case. The Board shall review the case and enter such order thereon as it deems right and proper within sixty (60) days from receipt of such written request and the Board may extend the time for entering such order by an additional forty-five (45) days if it determines such time is necessary for discovery in full and adequate review. 2. In the event that the order from the Board denies the claim for a change in such benefits or denies the claim for benefits, the order of the Board shall be put in wri~ing. Such written order shall include: A. The specific reasons for the denial, including specific references to pertinent provisions of the retirement system on which such denial is based; B. A description of any additional material or information that the Board feels is necessary for the Member to perfect his claim, together with an explanation of why such material or information is necessary; and C. An explanation of the review procedure next open to the Member. Such review procedure shall provide that: . (1) Prior to such review, the Member or his duly authorized representative may review any pertinent documents includ- Page 21 of 40 Pages . (2) . ing Plan provisions, minutes of the meeting of the Board in which denial of the claim was originally recommended, and any other documents material to the case; After such review, the Member and/or his duly authorized representative shall submit their case in writing to the Board and request a hearing. Such submission shall be filed with the Board no later than ninety (90) days after the receipt of the order of the Board. Upon receipt of the written sub- mission by the Member, the Board shall schedule an oppor- tunity for a full and fair hearing of the issue within the next ninety (90) days, and such scheduled hearing shall be communicated in writing to the Member. The Member and/or his duly authorized representative may then appear at such scheduled hearing to present their case. The Board shall consider the facts presented at the scheduled hearing and shall, within thirty (30) days after such hearing, make a final ruling in writing on the request of the Member. The written decision shall include the reasons for such decision and, such decision shall be final. (a) The Chairman shall preside over the hearing and shall rule on all evidentiary and other legal questions that arise during the hearing. (b) Either party, the claimant or the Board, may file pleadings within the time limits set herein. Procedural motions are to be determined by the Chairman of the Board at any time. All parties are Page 22 of 40 Peges . . (c) to furnish copies of all pleadings to the opposing parties and exchange lists with names and addresses of witnesses expected to be called to testify at the hearing, as well as the list of exhibits that are intended to be introduced, at least forty-five (45) days prior to the hearing. Testimony of witnesses shall be under oath or affirmation. Depositions or affidavits shall not be admissable unless upon stipulation by all parties. The Chairman, any Member of the Board, the attorney for the Board, the claimant and the claimant's attorney, upon recognition by the Chairman, may direct questions to any witness during the proceedings. Each party shall have the right to present evidence relevant to the issues, to cross- examine witnesses, to impeach witnesses and to respond to the evidence presented against the party. Each party shall have the right to present any opening and closing arguments. Any party may secure the services of a court reporter to record the proceedings with the cost to be borne by the party requesting the court reporter or requesting the transcription of the proceedings. In all cases, unless otherwise provided in this Sec- tion, the burden of proof shall be on the claimant who seeks to draw his entitlement to a pension or increased pension benefits. PSg8 23 of 40 PSg8S . . 3. In all proceedings under Subsections 1 or 2 hereof, the Board shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at the proceedings provided for in each paragraph. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. Section 12. ROSTER OF RETIREES. The Secretary of the Board shall keep a record of all persons enjoying a pension under the provisions of this Ordinance in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Addi- tionally, the Secretary shall keep a record of all General Employees employed by the Municipality in such a manner as to show the name, address, date of employment and date such employment is terminated. Section 13. BOARD A TTORNEY AND PROFESSIONALS. The Board may employ independent legal counsel at the Pension Fund's expense for the purposes contained herein, together with such other professional, technical, or other advisors as the Board deems necessary. Section 14. MAXIMUM PENSION. 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 Plan shall not exceed the lesser of: A. $90,000 (or such lesser dollar amount as may be allowable for any calendar year pursuant to ~415(b) of the Internal Revenue Code, as adjusted in such calendar year for increases in the cost of living in accordance with regulations issued by the Secretary of the Treasury under ~415(d) of the Code), or Page 24 of 40 Pages . . B. 100% of the Member's average aggregate Compensation for the three (3) consecutive calendar years during which the General Employee was an active Member and had his highest aggregate compensation. "Compensation" shall mean the General Employee's total annual remuneration paid or accrued for personal services rendered to the City during the Plan Year as reported on the General Employee's W-2. 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; (2) Any other benefit not required under ~415(b)(2) of the Internal Revenue Code and Regulations thereunder to be taken into account for purposes of the limitation of ~415(b)(1) of the Internal Revenue Code. 2. Particioation in Other Defined Benefit Plans. The limitation of this Section with respect to any Member who at any time has been a Member in any other defined benefit Plan (as defined in ~414(j) of the Internal Revenue Code) maintained by the City shall apply as if the total benefits payable under all defined benefit plans in which the Member has been a Member were payable from one Plan. 3. Adiustments in Limitations. In the event the Member's retirement benefits become payable before age 62, the $90,000 limitation prescribed by this Page 25 of 40 Pages Section shall be reduced in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of ~415(b) of the Internal Revenue Code, but not less than $75,000. . In the event the Member's retirement benefit becomes payable before age fifty-five (55), the $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 Internal Revenue Code. If the Member's retirement benefit becomes payable after age sixty-five (65), for purposes of determining whether this benefit meets the limitation set forth in Subsection 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made using an assumed interest rate of five percent (5%) and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his delegate. 4. Less than Ten Years of Service. The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10) years of credited service with the City shall be the amount determined under Subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of the Member's years of credited service and the denominator of which is ten (10). 5. $10.000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limitations set forth in this Section if the benefits payable, with respect to such Member under this Plan and under all other qualified defined benefit pension plans to which the City contributes, do not exceed $10,000 for the applicable Plan Year and for any prior . Plan Year and the City has not at any time maintained a qualified defined contribution plan in which the Member participated. Pag8 26 of 40 Pag8s . . . 6. Accrued Benefit as of Effective Date. Notwithstanding the above limitations, if any Member as of the effective date hereof, has an accrued benefit as of that date that exceeds the above limitations, then such limitations shall equal such accrued benefit. However, no cost of living adjustments as provided in Subsection 9 below shall be applicable to the amount of retirement benefit so determined. 7. Member in Defined Contribution Plan. In any case where a Member under this Plan is also a Member in a "Defined Contribution Plan" as defined in ~414(i) of the Internal Revenue Code, maintained by the City, the sum of the "Defined Benefit Plan Fraction" and the "Defined Contribution Plan Fraction" (both as defined in ~415(e) of the Internal Revenue Code) shall not, subject to the restrictions and exceptions contained in ~2004 of the Act, exceed 1.0. 8. Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Member's benefit under any defined benefit plans in which Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be determined by the Trustees and the Plan Administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by the Trustees and the Plan Administrator for such other provided, however, that nec~ssary reductions may be made in a different manner and priority pursuant to the agreement of the Trustees and the Plan Administrator of all other plans covering such Member. Ps(}fI 27 of 40 Psgfls 9. Cost-of-Living Adiustments. The limitations as stated in Subsections 1, 2, 3, and 7 herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-Iiving adjustments prescribed by the Secretary of the . Treasury pursuant to ~415(d) of the Internal Revenue Code. 10. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension payable to a retiree who becomes a member of the Plan and who has not previously participated in such Plan, on or after January 1, 1980, shall not exceed 100 percent of his average final compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost- of-living increases or adjustments. B. No member of the Plan who is not now a member of such Plan shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from another retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. Section 15. COMMENCEMENT OF BENEFITS. , 1. Unless the Member otherwise elects, with such election being in writing and to the Trustees and specifying the form of retirement income and date on which the retirement income is to commence, the payment benefits under the Plan . to the Member shall commence not later than the 60th day after the close of the Plan Year in which the latest of the following events occur: Page 28 of 40 Pages . . A. The attainment by the Member of age 65; B. The 10th anniversary of the date on which the Member commenced participation in the Plan; or C. The termination of the Member's service with the City. 2. If the payment of a Member's retirement income cannot begin on the date required under Subsection 1 of this Section because the Trustees either cannot ascertain the amount of the Member's retirement income or cannot locate the Member after making reasonable efforts to do so, the payment of the Member's ben~fit shall begin not later than sixty (60) days after the date on which the amount can be ascertained or the Member is located, whichever is applicable. Any such payment shall be made retroactive to a date which is not earlier than the date on which the payment of the Member's benefit was scheduled to begin but which is not later than the date specified under Subsection 1 of this Section. Section 16. DISTRIBUTION OF BENEFITS. Notwithstanding any other provision of this Plan to the contrary, a form of retirement income payable from this Plan after the effective date of this ordinance, shall satisfy the following conditions: 1. If the retirement income is payable before the Member's death, A. It shall either be distributed or commence to the Member not later than April 1, of the calendar year following the later of the calendar year in which the Member attains age 70-1/2, or the calendar year in which Member retires, B. The distribution shall commence not later than the calendar year defined above; and a), shall be paid over the life of the Member or over the lifetimes of the Member and spouse, issue or depen- dent, or b), shall be paid over the period extending not beyond Page 29 of 40 Pages . . the life expectancy of the Member and spouse, issue or dependent. Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the Member dies before his entire interest in the Plan has been distributed, the remaining portion of such interest in the Plan shall be distributed no less rapidly than under the form of distribution in effect at the time of the Member's death. ,2. If the Member's death occurs before the distribution of his interest in the Plan has commenced, Member's entire interest in the Plan shall be distributed within five (5) years of Member's death, unless it is to be distributed in accordance with the following rules: A. The Member's remaining interest in the Plan is payable to his spouse, issue or dependent; B. The remaining interest is to be distributed over the life of the spouse, issue or dependent or over a period not extending beyond the life expectancy of the spouse, issue or dependent; and C. Such distribution begins within one year of the Member's death unless the Member's spouse, issue or dependent shall receive the remaining interest in which case the distribution need not begin before the date on which the Member would have attained age 70-1/2 and if the spouse, issue or dependent dies before the distribution to the spouse, issue or dependent begins, this Section shall be applied as if the spouse, issue or dependent were the Plan Member. Page 30 of 40 PIIges . Section 17. MISCELLANEOUS PROVISIONS. 1. Interest of Members in Pension Fund. At no time prior to the satisfaction of all liabilities under the Plan with respect to Members and their spouses or beneficiaries, shall any part of the corpus or income of the Pension Fund be used for or diverted to any purpose other than for their exclusive benefit. 2. Liauidation of Pension Fund Assets. A. In the event that contributions of the City are permanently discontinued or in the event that it becomes necessary for the City to discontinue the Plan, the Board of Trustees shall deter- mine a proposed date of termination and liquidate the Pension Fund, in accordance with the applicable requirements of the Act governing termination. The rights of affected Plan Members, joint annuitants, beneficiaries and surviving spouses to benefits accrued to the date of any such termination or discontinuance to the extent then funded shall become fully vested and nonfor- feitable and upon occurrence of such event, the City's aliquot share of the assets then remaining in the Pension Fund shall be allocated among the Members and their beneficiaries and administered and distributed at such time or times as is deter- mined by the Board of Trustees. B. Any reserves which shall be released as a result of the application of the provisions of Section 18, Subsection 3E, shall be added to the portion of the Pension Fund which is distributed as provided above to Members whose benefits are not restrict- ed, provided that in the event that all of the benefits accrued to such Members are fully provided for, such released reserves (or . Page 31 of 40 Pages . . C. any remaining portion thereof) shall be allocated to provide to the extent possible up to one hundred percent (100%) of the benefits otherwise cancelled pursuant to Section 18, Subsection 3E, allocating such remaining funds in proportion to the value of the benefits so cancelled. The Board of Trustees may in its discretion give effect to the provisions of the foregoing paragraphs A and B by the purchase of annuities, by continuing the Trust Fund in existence and making provisions thereunder for pension benefits, or by immediate distribution from the Trust Fund. If the assets of the Pension Fund applicable to any asset distribution priority category are insufficient to provide full benefits for all persons in such group, the benefits otherwise payable to such persons shall be reduced proportionately except as may otherwise be specified by regulations. If there is any balance remaining in the Pension Fund after all obligations to Plan Members, joint annuitants, beneficiaries and surviving spouses are met, such balance will revert to the City. The actuary shall calculate the allocation of the assets of the Pension Fund in accordance with the asset distribution priority category, and certify his calculations to the Fiduciaries. No liquidation of assets and payment of benefits (or provision therefore) shall actually be made by the Board of Trustees until after it is advised by the City in writing that applicable requirements, if any, of the Act governing termination of "General Employee Pension Benefit Plans" have been, or are Psge 32 of 40 Psges " . . being, complied with or that appropriate authorizations, waivers, exceptions or variances have been, or are being, obtained. 3. No amendment or ordinance shall be adopted by the City Commission of the City of Ocoee which shall have the effect of reducing the then vested accrued benefits of Members or a Member's beneficiaries. Section 18. REPEAL OR TERMINA nON OF SYSTEM. 1. This Ordinance establishing the System and Fund, and subsequent Ordinances pertaining to said System and Fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent Ordinance shall be amended or repealed in its application to any person benefiting hereun- der, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Member or beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be determined to be inadequate. 2. If this Ordinance shall be repealed, or if contributions to the System are discontinued, the Board shall continue to administer the System in accordance with the provisions of this Ordinance, for the sole benefit of the then Members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this Ordinance who are designated by any of said Members. In the event of repeal, or if contributions to the System are discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and the assets of the System shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof. 3. The following shall be the order of priority for purposes of allocating the assets of the System as of the date of repeal of this Ordinance, or if Psge 33 of 40 Psges . . . contributions to the System are discontinued with the date of such discontinuation bein,g determined by the Board. A. Apportionment shall first be made in respect of each retired General Employee receiving a retirement benefit hereunder on such date, each person receiving a benefit on such date on account of a retired (but since deceased) General Employee, and each General Employee who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the actuarial equivalent of such benefit, based upon the actu- arial assumptions in use for purposes of the most recent actuarial valuation, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportiona- tely reduced so that the aggregate of such reduced amounts will be equal to such asset value. B. If there be any asset value remaining after the apportionment under paragraph A, apportionment shall next be made in respect of each General Employee in the service of the City on such date who has completed at least ten (10) years of credited service and who is not entitled to an apportionment under paragraph A, in the amount required to provide the actuarial equivalent, as described in A above, of the accrued normal retirement benefit, based on the credited service and average monthly earnings as of such date, and each vested former Member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the accrued normal retirement benefit, . Page 34 of 40 Pages .. . . C. provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. If there be any asset value after the apportionments under paragraph A and B, apportionment shall be made in respect of each General Employee in the service of the City on such date who is not entitled to an apportionment under paragraphs A and B in the amount equal to Member's accumulated contributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. If there be any asset value remaining after the apportionments under paragraphs A, B, and C, apportionment shall lastly be made in respect of each General Employee included in paragraph C above to the extent of the actuarial equivalent, as described in paragraph A above, of the accrued normal retirement benefit, less the amount apportioned in paragraph C, based on the credited service and average monthly earnings as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. D. Page 35 of 40 Pages . . . . E. In the event that there be asset value remaining after the full apportionment specified in paragraphs A, B, C, and D, such excess shall be returned to the City, less return of the State's contributions to the State, provided that, if the excess is less than the total contributions made by the City and the State to the date of termination such excess shall be divided propor- tionately to the total contributions made by the City and the State. The allocation of the Fund provided for in this Subsection may, as decided by the Board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this Subsection. The Fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Trust may be continued in existence for purposes of subsequent distributions. If, at any time during the first ten (10) years after the effective date of this Ordinance, the System shall be terminated or the full current costs of the System shall not have been met, anything in the System to the contrary not- withstanding, City contributions which may be used for the benefit of anyone of the twenty-five (25) highest paid General Employee or Participant of the City on the effective date, whose anticipated annual retirement allowance provided by the City's contributions at Member's normal retirement date would exceed $1,500, shall not exceed greater of either a) $20,000, or b), an amount computed by multiplying the smaller of $10,000 or twenty percent (20%) of such General Employee's average annual earnings during his last five (5) years of service by the number of years of service since the effective date. In the event that it shall Page 36 of 40 Pages ... 'J hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this paragraph are not then necessary to qualify the System under the Internal Revenue Code, this paragraph . shall be ineffective without the necessity of further amendment of this Ordinance. 4. After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining fund revert to the general Fund of the City. Section 19. EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY. The pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the accumulated contribu- tions and the cash securities in the Fund created under this ordinance are hereby exempted from any state, county or municipal tax of the state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. Section 20. PENSION VALIDITY. The Board of Trustees shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. Said Board is empowered to purge the pension rolls of any person heretofore granted a pension under prior or existing law or heretofore granted under this ordinance if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prio~ or existing law been or who shall hereafter under this ordinance be erroneously, improperly or illegally classified. . Section 21. FORFEITURE OF PENSION. Pllge 37 of 40 Pllges " . . . Any General Employee who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this Pension Fund, except for the return of his accumulated contributions as of the date of termination. 1. Specified offenses are as follows: A. The committing, aiding or abetting of an embezzlement of public funds; B. The committing, aiding or abetting of any theft by a public officer or employee from employer; C. Bribery in connection with the employment of a public officer or employee; D. Any felony specified in Chapter 838, Florida Statutes; E. The committing of an impeachable offense. 2. The committing of any felony by a public officer or employee who willfully and with intent to defraud the public or the public agency, for which he acts or in which he is employed, of the right to receive the faithful performance of his duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his public office or employment position. A. Conviction shall be defined as follows: An adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on Page 38 of 40 Pages . · j ..f . . probation; or a conviction by the Senate of an impeachable offense. B. Court shall be defined as follows: Any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the Board of Trustees shall hold a hearing on which notice shall be given to the Member whose benefits are being considered for forfeiture. Said Member shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the Member shall be afforded a full opportunity to present his case against forfeiture. Any Member who has received benefits from the System in excess of his ,accumulated contributions after Member's rights were forfeited shall be required to pay back to the Fund the amount of the benefits received in excess of his accumulated contributions. The Board of Trustees may implement all legal action necessary to recover such funds. Section 22. INDEMNIFICA TION. 1. To the extent not covered by insurance contracts in force from time to time, the City shall indemnify and hold harmless members of the Board of Trustees from all personal liability for damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation, or threat of same, herein referred to as "claims", against these individuals because of acts or circumstances connected with or arising out of their official duty as members of the Board of Trustees. The City reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal from any Page 39 of 40 Pages ... . > . . . adverse judgment or ruling, and in either event will indemnify and hold harmless any members of the Board of Trustees from the judgment, execution, or levy thereon. 2. This Section shall not be construed so as to relieve any insurance company or other entity liable to defend the claim or liable for payment of the judg'ment or claim, from any liability, nor does this Section waive any provision of law affording the City immunity from any suit in whole or part, or waive any other substantive or procedural rights the City may have. 3. This Section shall not apply nor shall the City be responsible in any manner to defend or pay for claims arising out of acts or omissions of members of the Board of Trustees which constitute felonies or gross malfeasance or gross misfeasance in office. OcoBB.pfg\5-B-91.gBn Page 40 of 40 Pages