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HomeMy WebLinkAboutOrdinance 2008-006 Amending Gen Empl Retirement Fund w1 . ORDINANCE NO. 2008-006 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND, ADOPTED AND RESTATED IN FULL BY ORDINANCE NUMBER 96-19; AS SUBSEQUENTLY AMENDED; AMENDING SECTION 1, DEFINITIONS BY AMENDING THE DEFINITION OF "MEMBER" AND THE DEFINITION OF "SALARY"; AMENDING SECTION 2, MEMBERSHIP; AMENDING SECTION 4., FINANCES AND FUND MANAGEMENT; AMENDING SECTION 5, CONTRIBUTIONS; AMENDING SECTION 8., VESTING; AMENDING SECTION 9, OPTIONAL FORMS OF BENEFITS; AMENDING SECTION 25, DEFERRED RETIREMENT OPTION PLAN; ADDING A NEW SECTION 28, PURCHASE OF CREDITED SERVICE; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. 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: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 1, Definitions, buy amending the definition of "Member", to read as follows: Member means an actively employed General Employee who fulfills the prescribed membership requirements. and effective October 1. 2006. current and future Mayors and Commissioners. Benefit improvements which, in the past, have been provided for by amendments to the System adopted by City ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to Members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. . ~ means the total compensation (and travel stipend for the Mayor and Commissioners) reported on the Member's W-2 form plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions. Compensation in excess of limitations set forth in Section 401 (a)(17) of the Code shall be disregarded. The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a Member before the first Plan Year beginning after December 31, 1995. SECTION 3: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 2,Membersbip, to read as follows: SECTION 2. MEMBERSHIP. . 1. Conditions of Eligibility. Subject to A. of this subsection, all General Employees as ofthe Effective Date, and all future new General Employees, shall become Members of this System as a condition of employment. A. The following employees may notify the Board and the city of his or her election not to be a member ofthe System. 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, except as provided for in subparagraph B.. below. no withholding shall be made from his or her 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 ofthe System are: City Manager, Assistant City Manager and Directors. B. Effective July 1 L 2009. the City Manager shall be provided with five (5) years of Credited Service in the System at no cost to him and at such time shall be a vested Member and commence making Member Contributions in the amount of seven and four-tenths percent (7.4%) of his salary. C. Effective October 1. 2006. current and future Mayors and Commissioners. may elect to enter the System as non-contributory Members and receive Credited Service. determined as if they had been Members of the System on the later of October 1. 1997 or the date they took office. 2. Membership. Each Gcnclal Employee Member shall complete a form prescribed by the Board providing for the designation of a Beneficiary or Beneficiaries. SECTION 4: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 4, Finances and Fund Management, to read as follows: SECTION 4. FINANCES AND FUND MANAGEMENT. Establishment and Operation of Fund. 1. As part ofthe System, there exists the Fund, into which shall be deposited all ofthe 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. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board. 3. All funds of the Municipal General Employee's Retirement Trust Fund may be deposited by the Board with the Finance Director ofthe City, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the City. However, any funds so deposited with the Finance Director ofthe City shall be kept in a separate fund by the Finance Director or clearly identified as such funds of the Municipal General Employee's Retirement Trust Fund. In lieu thereof, the Board shall deposit the funds of the Municipal General Employee's Retirement Trust Fund in a qualified public depository as defined in 9280.02, Florida Statutes, which depository with regard to such funds shall Page 2 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 ofthe 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. 5. An 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 shall have the following investment powers and authority: A. The Board 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 Fund, 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, except as otherwise provided herein. 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. B. All monies paid into or held in the Fund shall be invested and reinvested by the Board and the investment of all or any part of such funds shall be linlitcd subiect to the following: . ill Notwithstanding any limitation provided for in the Florida Statutes to the contrary (unless such limitation may not be amended by local ordinance) or any limitation in prior city ordinances to the contrary. all monies paid into or held in the Fund may be invested and reinvested in such securities. investment vehicles or property wherever situated and of whatever kind. as shall be approved by the Page 3 . . B: Board. including but not limited to common or preferred stocks. bonds. and other evidences of indebtedness or ownership. In no event. however. shall more than ten percent of the assets of the Fund be invested in foreign securities. unless the Florida Statutes. are amended to remove or change or this mandatory restrictIOn. ill The Board shall develop and adopt a written investment policy statement setting forth permissible types of investments. goals and obiectives of investments and setting quality and quantity limitations on investments in accordance with the recommendations of its investment consultants. The investment policy statement shall be reviewed by the Board at least annually. and shall be followed by the Board in making its investment decisions. ill In addition. the Board may. upon recommendation by the Board's investment consultant. make investments in group trusts meeting the requirements of Internal Revenue Service Revenue Ruling 81-100 or successor rulings or guidance of similar import. and while any portion of the assets of the Fund are invested in such a group trust. such group trust is itself adopted as a part of the System or plan. (t1 Annuity and lifc inStlIa11Ce contracts with life, il1StlIa11ee companies in anlOUl1ts sufficimt to prOvide, in whole or in part, the benefits to whidl all of the Mell1bers ill the fund shall be. entitled tlllde.r tile provisions ofthis System and pay the initial and subsequent pre.miulll ther con. ffl Time or savings aecounts of a natiol1al bank, a statc bank or a sav ings/building and loall association il1stlIed by the fede1al Deposit InstlIanec Corporation. ffl Obligations of the United States or obligations gUa1antccd as to principal and interest by tIle gOve.1nmcnt ofthG United Statc,s. f41 Stocks, eommingkd funds administered by national 01 state ba11ks, nmttlal funds, intcll1ationalse.etlI ities and bonds 01 othe.1 e v idcncc,s of indebtedness, stlbject to the limitations prOvided fo1 ill subsection 6:€: e: Thc, DOald shall not invc,st rhore than fi"e percent (5%) of its assets in the common stock or capital stock of a11Y one issuing company, nor shall the agglCgate investm"nt in anyone issuing eompafrj' e.xGeed five percent (5%) of the outstanding capital stoek of that company, nor shall the aggregate of its in v est111ents ill common stock, capital stock and con v ertibk bonds at 11lMket exee\:.d seventy pcreent (70%) of the. assets of the ftlnd. The Doard may inv"st up to tw"nty pc.rec.nt (20%) of the total fund asse.t valuc, at cost in international seeuritic,s in a muttlal fund or con1nlil1gkd fund. The DOa1d shall pro v ide a report to the City on the international in vestment experience, fhe yeats from the. datc this intcrnational investment authority is added to the System, in order f01 the City to eonside1 the advisability of amending the. System by illCleasing 01 decreasing the. extent of international investme.nts. C. The Board 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. Page 4 E: D. 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 Fund. F: E. 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 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. 6-: F. 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. It.- G. 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. r. H. Any overpayments or underpayments from the Fund to a Member, Retiree or Beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board in such a manner that the Actuarial Equivalent of the benefit to which the Member, Retiree or Beneficiary was correctly entitled to, shall be paid. Overpayments shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the Fund in a prudent manner. :f-: 1. The Board shall sustain no liability whatsoever for the sufficiency ofthe Fund to meet the payments and benefits herein provided for. It L In any application to or proceeding or action in the courts, only the Board shall be a necessary party, and no Member or other 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. b K. 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. Page 5 SECTION 5: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 5, Contributions, subsection 1, Member Contributions, to read as follows: 1. Member Contributions. . A. Amount. Each Member of the System. except Mayors and Commissioners shall be required to make regular contributions to the Fund in the amount of seven and four-tenths percent (7.4%) of his or her Salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board at least monthly. The contributions made by each Member to the Fund shall be designated as employer contributions pursuant to S414(h) of the Code. Such designation is contingent upon the contributions being excluded from the Members' gross income for Federal Income Tax purposes. For all other purposes of the System, such contributions shall be considered to be Member contributions. Notwithstanding the preceding, when the Member's accrued benefit is equal to 81 % of Average Final Compensation. the Member may make a one time irrevocable election at anytime after the 81 % limit is met to discontinue making Member Contributions to the System and have his benefit calculated and frozen at the time of the election. If no such election is made. Member Contributions to the Fund shall continue. B. Method. Such contributions shall be made by payroll deduction. SECTION 6: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 8, Vesting, to read as follows: SECTION 8. VESTING. . If a Member terminates his or her employment with the City, either voluntarily or by discharge, and is not eligible for any other benefits under this System, the Member shall be entitled to the following: 1. If the Member has less than five (5) years Credited Service upon termination, the Member shall be entitled to a refund of his or her Accumulated Contributions or the Member may leave it deposited with the Fund. 2. lithe Member (except a Mayor or Commissioner Member) has five (5) or more years of Credited Service or if a Mayor or Commissioner Member has nine (9) or more years of Credited Service upon termination, the Member shall be entitled to a monthly retirement benefit, determined in the same manner as for normal or early retirement and based upon the Member's Credited Service, Average Final Compensation and the benefit accrual rate as of the date of termination, payable to him or her commencing at the Member's otherwise normal or early retirement date, provided he or she does not elect to withdraw his or her Accumulated Contributions and provided the Member survives to his or her normal or early retirement date. If the Member does not withdraw his or her Accumulated Contributions and does not survive to his or her otherwise normal or early retirement date, his or her designated Beneficiary shall be entitled to a benefit as provided herein for a deceased Member, vested or eligible for Retirement under Pre-Retirement Death. 3. Any vested Member ofthe System whose position is terminated, for whatever reason, but who remains employed by the City in some other capacity, shall have all retirement benefits accrued up to the date of such termination under this System preserved, provided he or she does not elect to withdraw his or her Accumulated Contributions from this System. Such accrued retirement Page 6 benefits shall be payable at his or her otherwise early (reduced as for early retirement) or normal retirement date hereunder, or later, in accordance with the provisions of this System. . SECTION 7: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 9, Optional Forms of Benefits, subsection 1., to read as follows: 1. In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified herein, a Member, upon written request to the Board, 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 Member for his or her lifetime only. B. A retirement income of a modified monthly amount, payable to the Member during the joint lifetime of the Member and a dependent joint pensioner designated by the Member, and following the death of either of them, 100%, 75%,66-2/3%, or 50% of such monthly amounts payable to the survivor for the lifetime ofthe survivor. Except where the Retiree's joint pensioner is his or her Spouse, the present value of payments to the Retiree shall not be less than fifty percent (50%) ofthe total present value of payments to the Retiree and his or her joint pensioner. C. If a Member retires prior to the time at which social security benefits are payable, he or she may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence and a reduced benefit thereafter in order to provide, to as great an extent as possible, a more level retirement allowance during the entire period of Retirement. The amounts payable shall be as recommended by the actuaries for the System, based upon the social security law in effect at the time ofthe Member's Retirement. D. A member may elect a percentage of benefit in a lump sum as follows: ill Five (5) percent lump sum benefit with ninety (95) percent paid under the normal form or as per A.. B. or C. above. ill Ten (10) percent lump sum benefit with ninety (90) percent paid under the normal form or as per A.. B. or C. above. ill Fifteen (15) percent lump sum benefit with ei~hty-five (85) percent paid under the normal form or as per A.. B. or C. above. ffi Twenty (20) percent lump sum benefit with eighty (80) percent paid under the normal form or as per A.. B. or C. above. . SECTION 8: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by amending Section 25, Deferred Retirement Option Plan, to read as follows: Page 7 SECTION 25. DEFERRED RETIREMENT OPTION PLAN. 1. Definitions. . As used in this Section 25, the following definitions apply:" A. "DROP" -- The Ocoee General Employees' Deferred Retirement Option Plan. B. "DROP Account" -- The account established for each DROP participant under subsection 3. Participation. 2. A. Eligibility to Participate. In lieu of terminating his employment as a General Employee, any Member who is eligible for normal retirement under the System may elect to defer receipt of such service retirement pension and to participate in the DROP P10vided that the, election to participate in the DROP is made within twelve (12) months following the date on whidl the. Me.mber filst becomes digib1e for normal r'tirement, or fol a Membe.r who first leaehed eligibility for normal ICti1ement priol to the dfee;tive date of this Section, the. de,etion to pa1iieipatc is made within twelve (12) months horn the effective date of this Section. A Me,mbel who fails to make the election within SUell twel ve (12) month limitation pe1iod shall forfeit all lights to pa11ieipate in the; DROP. B. Election to Participate. A Member's election to participate in the DROP must be made in writing in a time and manner determined by the Board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. C Period of participation. A Member who elects to participate in the DROP under subsection 2.B., shall participate in the DROP for a period not to exceed sixty (GO) eighty-four (84) months beginning on the date which the Member first becomes eligible for normal retirement. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the City at the time of election into the DROP. A Member may participate only once. D. Termination of Participation. (1) A Member's participation in the DROP shall cease at the earlier of: (a) the end of his permissible period of participation in the DROP as determined under subsection 2.C.; or . (b) termination of his employment as a General Employee. (2) Upon the Member's termination of participation in the DROP, pursuant to subsection(a) above, all amounts provided for in subsection 3.B., including monthly benefits and investment earnings and losses or interest, shall cease to be transferred from the System to his DROP Account. Any amounts remaining in his DROP Account Page 8 (3) . shall be paid to him in accordance with the provisions of subsection 4. when he terminates his employment as a General Employee. A Member who terminates his participation in the DROP under this subsection 2.D. shall not be permitted to again become a participant in the DROP. E. Effect of DROP Participation on the System. (1) A Member's Credited Service and his accrued benefit under the System shall be determined on the date his election to participate in the DROP first becomes effective. The Member shall not accrue any additional Credited Service or any additional benefits under the System (except for any additional benefits provided under any cost- of-living adjustment in the System) while he is a participant in the DROP. After a Member commences participation, he shall not be permitted to again contribute to the System nor shall he be eligible for disability or pre-retirement death benefits. (2) No amounts shall be paid to a Member from the System while the Member is a participant in the DROP. Unless otherwise specified in the System, if a Member's participation in the DROP is terminated other than by terminating his employment as a General Employee, no amounts shall be paid to him from the System until he terminates his employment as a General Employee. Unless otherwise specified in the System, amounts transferred from the System to the Member's DROP Account shall be paid directly to the Member only on the termination of his employment as a General Employee. 3. Funding. A. Establishment of DROP Account. A DROP Account shall be established for each Member participating in the DROP. A Member's DROP Account shall consist of amounts transferred to the DROP under subsection 3.B., and earnings or interest on those amounts. B. Transfers From Retirement Svstem. (1) . (2) As of the first day of each month of a Member's period of participation in the DROP, the monthly retirement benefit he would have received under the System had he terminated his employment as a General Employee and elected to receive monthly benefit payments thereunder shall be transferred to his DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.D., but in no event shall it continue past the date he terminates his employment as a General Employee. Except as otherwise provided in subsection 2.D.(2), a Member's DROP Account under this subsection 3 .B. shall be debited or credited after each fiscal year quarter with either: Page 9 (a) Interest at an effective rate of six and one-half percent (6.5%) per annum compounded monthly on the prior month's ending balance; or . (b) Earnings, determined as follows: The average daily balance in a Member's DROP Account shall be credited or debited at a rate equal to the actual net rate of investment return realized by the System for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which the Member's DROP Account is invested by the Board net of brokerage commissions, transaction costs and management fees. Upon electing participation in the DROP, the Member shall elect to receive either interest or earnings on his account to be determined as provided above. The Member may, in writing, elect to change his election only once during his DROP participation. An election to change must be made prior to the end of a quarter and shall be effective beginning the following quarter. (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. A Member's final DROP account value for distribution to the Member upon termination of participation in the DROP shall be the value of the account at the end of the quarter immediately preceding termination of participation plus any monthly periodic additions made to the DROP account subsequent to the end of the previous quarter and prior to distribution. If a Member is employed by the City after participating in the DROP for the permissible period of DROP participation, then beginning with the Member's 1st month of employment following the last month of DROP participation, 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. A Member employed by the City after the permissible period of DROP participation will still not be eligible for pre-retirement death or disability benefits, nor will he accrue additional Credited Service. 4. Distribution of DROP Accounts on Termination of Employment. A. Eligibility for Benefits. . A Member shall receive the balance in his DROP Account in accordance with the provisions of this subsection 4. upon his termination of employment as a General Employee. Except as provided in subsection 4.E., no amounts shall be paid to a Member from the DROP prior to his termination of employment as a General Employee. Page 10 . . B. Form of Distribution. (1) Unless the Member elects otherwise, distribution of his DROP Account shall be made in a cash lump sum, subject to the direct rollover provisions set forth in subsection 4.6: F. A Member may, however, elect, in such time and manner as the Board shall prescribe, that his DROP distribution be used to purchase a nonforfeitable fixed annuity payable in such form as the Member may elect. Elections under this paragraph shall be in writing and shall be made in such time or manner as the Board shall determine. If a Member dies before his benefit is paid, his DROP Account shall be paid to his Beneficiary in such optional form as his Beneficiary may select. If no Beneficiary designation is made, the DROP Account shall be distributed to the Member's estate. (2) C. Date ofPavment of Distribution. Except as otherwise provided in this subsection 4., distribution of a Member's DROP Account shall be made as soon as administratively practicable following the Member's termination of employment. Distribution of the amount in a Member's DROP account will not be made unless the Member completes a written request for distribution and a written election, on forms designated by the Board, to either receive a cash lump sum or a rollover of the lump sum amount. D. Proof of Death and Right of Beneficiary or Other Person. The Board may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the value of a deceased Member's DROP Account as the Board may deem proper and its determination of the right of that Beneficiary or other person to receive payment shall be conclusive. E. Distribution Limitation. Notwithstanding any other provision of this subsection 4., all distributions from the DROP shall conform to the "Minimum Distribution Of Benefits" provisions as provided for herein.. F. Direct Rollover of Certain Distributions. This subsection applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the DROP to the contrary, a distributee may elect to have any portion of an eligible rollover distribution paid in a direct rollover as otherwise provided under the System in Section 23, herein incorporated by reference. 5. Administration of DROP. A. Board Administers the DROP. The general administration of the DROP, the responsibility for carrying out the provisions of the DROP and the responsibility of overseeing the investment ofthe DROP's assets shall be placed in the Board. The members of the Board may appoint from their number such subcommittees with such Page 11 . powers as they shall determine; may adopt such administrative procedures and regulations as they deem desirable for the conduct of their affairs; may authorize one or more of their number or any agent to execute or deliver any instrument or make any payment on their behalf; may retain counsel, employ agents and provide for such clerical, accounting, actuarial and consulting services as they may require in carrying out the provisions of the DROP; and may allocate among themselves or delegate to other persons all or such portion of their duties under the DROP, other than those granted to them as Trustee under any trust agreement adopted for use in implementing the DROP, as they, in their sole discretion, shall decide. A Trustee shall not vote on any question relating exclusively to himself. Individual Accounts. Records and Reports. B. The Board shall maintain, or cause to be maintained, records showing the operation and condition of the DROP, including records showing the individual balances in each Member's DROP Account, and the Board shall keep, or cause to be kept, in convenient form such data as may be necessary for the valuation of the assets and liabilities of the DROP. The Board shall prepare or cause to be prepared and distributed to Members participating in the DROP and other individuals or filed with the appropriate governmental agencies, as the case may be, all necessary descriptions, reports, information returns, and data required to be distributed or filed for the DROP pursuant to the Code, the applicable portions of the Act and any other applicable laws. C. Establishment of Rules. Subject to the limitations of the DROP, the Board from time to time shall establish rules for the administration of the DROP and the transaction of its business. The Board shall have discretionary authority to construe and interpret the DROP (including but not limited to determination of an individual's eligibility for DROP participation, the right and amount of any benefit payable under the DROP and the date on which any individual ceases to be a participant in the DROP). The determination of the Board as to the interpretation of the DROP or its determination of any disputed questions shall be conclusive and final to the extent permitted by applicable law. The Board shall also oversee the investment of the DROP'S assets. D. Limitation of Liability. (1) The Trustees shall not incur any liability individually or on behalf of any other individuals for any act or failure to act, made in good faith in relation to the DROP or the funds of the DROP. (2) Neither the Board nor any Trustee of the Board shall be responsible for any reports furnished by any expert retained or employed by the Board, but they shall be entitled to rely thereon as well as on certificates furnished by an accountant or an actuary, and on all opinions of counsel. The Board shall be fully protected with respect to any action taken or suffered by it in good faith in reliance upon such expert, accountant, actuary or counsel, and all actions taken or suffered in such reliance shall be conclusive upon any person with any interest in the DROP. . Page 12 6. General Provisions. . . A. Amendment of DROP. B. The DROP may be amended by an ordinance ofthe City at any time and from time to time, and retroactively if deemed necessary or appropriate, to amend in whole or in part any or all of the provisions of the DROP. However, except as otherwise provided by law, no amendment shall make it possible for any part ofthe DROP's funds to be used for, or diverted to, purposes other than for the exclusive benefit of persons entitled to benefits under the DROP. No amendment shall be made which has the effect of decreasing the balance of the DROP Account of any Member. Facility of Payment. If the Board shall find that a Member or other person entitled to a benefit under the DROP is unable to care for his affairs because of illness or accident or is a minor, the Board may direct that any benefit due him, unless claim shall have been made for the benefit by a duly appointed legal representative, be paid to his Spouse, a child, a parent or other blood relative, or to a person with whom he resides. Any payment so made shall be a complete discharge of the liabilities of the DROP for that benefit. C. Information. Each Member, Beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on his account under the DROP, shall file with the Board the information that it shall require to establish his rights and benefits under the DROP. D. Prevention of Escheat. If the Board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the Board may, no earlier than three (3) years from the date such payment is due, mail a notice of such due and owing payment to the last known address of such person, as shown on the records of the Board or the City. If such person has not made written claim therefor within three (3) months of the date of the mailing, the Board may, if it so elects and upon receiving advice from counsel to the DROP, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the DROP. Upon such cancellation, the DROP shall have no further liability therefor except that, in the event such person or his Beneficiary later notifies the Board of his whereabouts and requests the payment or payments due to him under the DROP, the amount so applied shall be paid to him in accordance with the provisions of the DROP. E. Written Elections. Notification. (1) Any elections, notifications or designations made by a Member pursuant to the provisions of the DROP shall be made in writing and filed with the Board in a time and manner determined by the Board under rules uniformly applicable to all employees similarly situated. The Board reserves the right to change from the time and manner for making notifications, elections or designations by Members under the DROP if it determines after due deliberation that such action is justified in that it improves the administration of the DROP. In the Page 13 event of a conflict between the provisions for making an election, notification or designation set forth in the DROP and such new administrative procedures, those new administrative procedures shall prevail. . (2) Each Member or Retiree who has a DROP Account shall be responsible for furnishing the Board with his current address and any subsequent changes in his address. Any notice required to be given to a Member or Retiree hereunder shall be deemed given if directed to him at the last such address given to the Board and mailed by registered or certified United States mail. If any check mailed by registered or certified United States mail to such address is returned, mailing of checks will be suspended until such time as the Member or Retiree notifies the Board of his address. F. Benefits Not Guaranteed. All benefits payable to a Member from the DROP shall be paid only from the assets of the Member's DROP Account and neither the City nor the Board shall have any duty or liability to furnish the DROP with any funds, securities or other assets except to the extent required by any applicable law. G. Construction. (1) The DROP shall be construed, regulated and administered under the laws of Florida, except where other applicable law controls. (2) The titles and headings of the subsections in this Section 25 are for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control. H. Forfeiture of Retirement Benefits. Nothing in this Section shall be construed to remove DROP participants from the application of any forfeiture provisions applicable to the System. DROP participants shall be subject to forfeiture of all retirement benefits, including DROP benefits. I Effect of DROP Participation on Employment. Participation in the DROP is not a guarantee of employment and DROP participants shall be subject to the same employment standards and policies that are applicable to employees who are not DROP participants. SECTION 9: That Ordinance No. 96-19, adopting the amended and restated City of Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by adding a new Section 28, Purchase of Credited Service for Air Time, to read as follows: . SECTION 28. PURCHASE OF CREDITED SERVICE FOR AIR TIME. Unless otherwise prohibited by law. any member who has accrued at least five (5) years of credited service under this system shall be permitted to purchase up to five (5) years of additional credited service under this system for periods when there was no performance of service (" air time") provided that: Page 14 A. The member contributes to the fund the sum that he would have contributed had he been a member of the system for the years or fractional parts of years for which he is requesting credit plus amounts actuarially determined 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. . B. Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement. C. Payment by the member ofthe required amount shall be made within six (6) months of his or her request for credit. but. in any event. prior to retirement. and shall be made in one lump sum payment upon receipt of which credited service shall be gIven. D. Service purchased pursuant to this section shall count for all purposes except vesting and eligibility for disability benefits. The maximum combined purchase under this section and sections 26 and 27 shall be five (5) years. SECTION 10. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 11: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SECTION 12. Effective Date. This ordinance shall take effect upon adoption. PASSED AND ADOPTED this Jf2. day of ~, 2008. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA ;\\ (SEAL) ADVERTISED ~14:; 2008 READ FIRST TIME , 2008 . ~oh.SEr~ND TIME AND ADOPTED ,2008 Page 15 . . FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPR?ri5D AS T~ F9~ LEGALITY THIS day of ~ 2008 CHRISTIANSEN & DEHNER, P.A. Special Counsel By Ht'^^-O~ noc\ocoee\gen\O 1-07 -08.ord Page 16 APPROVED BY THE OCOEE CITY M IS ION AT A MEETING HELD ON 2008 UNDER AGENDA ITEM