HomeMy WebLinkAboutItem #07 First Reading of Ordinance Regarding Approval of the Amended, Consolidated and Restated Ordinance for the City of Ocoee Municipal General Employees' Retirement Trust Fund
AGENDA ITEM COVER SHEET
Meeting Date: 6/16/09
Item # 1
Reviewed By: ~ it ~
Contact Name: James Carnicell. D~partment Directo ~ ~_ _ . ~{
Contact Number: 1032 City Manager: ~
SUbjec!:1iti1ApprOval of"thea:"''i''n'Oea;ticbhsolidiite"dtiigafrestated Of din a' nee for tge,G' f OcoeeMunicipal
General!::Ell1pI9yey~~Reti~YIn Fund.' ' . ,. 'i'%
Background Summary:
The Pension Board for the City of Ocoee Municipal General Employees' Retirement Trust Fund is governed
by Ordinance.
Issue:
Amendment to the General Employees' Pension Ordinance to include Internal Revenue Code changes and
changes to the Uniformed Services Employment and Reemployment Rights Act, to increase the term length
of the Board of Trustees from two years to four years, to require the two Board Members elected by
employees be vested, and to clarify certain language and consolidate and restate all previous Ordinance
amendments of the Plan into one document.
Recommendations
Staff respectfully recommends the Commission adopt the attached Ordinance for the City of Ocoee Municipal
General Employees' Retirement Trust Fund.
Attachments:
An Ordinance amendment as well as a summary of all the edits drafted by legal counsel for the General
Employees' Pension Board and an Actuarial Impact Statement.
Financial Impact:
Fiscal Year 2009-2010 the City's contribution to fund the changes will increase from 15.30% of payroll to
15.37% of payroll or approximately an additional $5,540.
Type of Item:
D Public Hearing
cgJ Ordinance First Reading
D Ordinance Second Reading
D Resolution
D Commission Approval
D Discussion & Direction
For Clerk's DeDf Use:
o Consent Agenda
o Public Hearing
o Regular Agenda
o Original DocumenUContract Attached for Execution by City Clerk
o Original DocumenUContract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
~~j;}-
D N/A
D N/A
D N/A
CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES'
RETIREMENT TRUST FUND
ACTUARIAL IMPACT STATEMENT
June 3, 2009
Attached hereto is a comparison of the. impact on the Total Required Contribution (per
Chapter 112. Florida Statutes), and the Required City Contributions, resulting from the
implementation of the following amendments:
1. Provide additional Credited Service for certain plan member(s) as follows:
Those Members who terminated employment with the City of Ocoee prior to
October 1, 1991 and became or will become reemployed on or after October 1 J
1991 shall be granted Credited Service for the total number of years and
fractional parts of years of service as a General Employee with the City of Ocoee
prior to October 1, 1991.
2. Provide that the Mayor and City Commissioners shall have a Plan entry date
equal to the date of election to office. The current ordinance provides a Plan
entry date which is the later of election to office and October 1, 1997.
Participant
Anderson, Scott
Hood, Gary
Johnson, Jr., Leon
Keller, Joel
Vandergrift, Scott
Current
Plan Entrv
10/01/1997
10/19/2005
10/01/1997
03/21/2006
10/01/1997
Adjusted
Plan Entrv
11/27/1995
10/19/2005
3/16/1988 (1)
3/21/2006
11/4/1988 (2)
(1) Mr. Johnson's current term in office began March 16, 1999. The adjusted
Plan entry date shown above accounts for 11 years of Credited Service
from 1986 through 1997.
(2) Mr. Vandergrift's current term in office began November 4, 1992. The
adjusted Plan entry date shown above accounts for 4years of Credited
Service from 1967-1969 and 1973-1975.
CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES'
RETIREMENT TRUST FUND
ACTUARIAL IMPACT STATEMENT
June 3, 2009
(Page 2)
The cost impact, determined as of October 1, 2008, as applicable to the plan/fiscal year
ending September 30,2010, is as follows:
Current
Proposed
Total Required Contribution
% of Total Annual Payroll
22.66%
22.73%
Member Contributions (Est.)
% of Total Annual Payroll
7.36%
7.36%
Balance from City *
% of Total Annual Payroll
15.30%
15.37%
The changes presented herein are in compliance with Part VII, Chapter 112, Florida
Statutes and Section 14, Article X of the State Constitution.
f ~O^-----
Patrick T. Donlan, EA, MAAA
Enrolled Actuary #08-6595
STATEMENT OF PLAN ADMINISTRATOR
The prepared information presented herein reflects the estimated cost of the
proposed improvement.
Chairman, Board of Trustees
Comparative Summary of Principal Valuation Results
proposed
10/1/2008
A. Participant Data
Number Included
Actives
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
DROP Retirees
Total
Total Annual Payroll
Payroll Under Assumed Ret. Age
Annual Rate of Payments to:
current
10/1/2008
189 189
47 47
5 5
39 39
0 0
0 0
280 280
$7,904,794 $7,904,794
7,904,794 7,904,794
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
DROP Retirees
683,105
28,300
369,638
o
o
B. Assets
Actuarial Value
Market Value
16,439,261
14,160,706
C. Liabilities
Present Value of Benefits.
Active Members
Retirement Benefits
Disability Benefits-.
Death Benefits
Vested Benefits
Refund of Contributions
Service Retirees
Beneficiaries
Terminated Vested
Disability Retirees
DROP Retirees
20,427,226
o
483,742
1,108,262
393,122
6,435,477
184,421
1,720,329
o
o
30,752,579
Total
683,105
28,300
369,638
o
o
16,439,261
14,160,706
20,281,472
o
482,280
1,108,215
393,122
6,435,477
184,421
1,720,329
o
o
30,605,316
proposed current
10/1/2008 10/1/2008
C. Liabilities - (Continued)
Present Value of Future Salaries 62,946,059 62,946,059
Present Value of Future Member Cant. 4,658,008 4,658,008
Normal Cost (Entry Age Normal)
Service Ret 1,249,450 1,251,209
Dis Benefits 0 0
Death Benefits 15,632 15,652
Vest Benefits 31.868 31 ,868
Refunds 28.727 28,727
Total Normal Cost 1,325.677 1,327,457
Present Value of Future Normal Costs 9,080,721 9,082,443
Actuarial Accrued Liability
Service Ret 12,005,283 11.857,834
Dis Benefits 0 0
Death Benefits 339,459 337,972
Vest Benefits 747,176 747,127
Refunds 239.712 239,712
Inactives 8,340,227 8,340,227
Total Actuarial Accrued Liability 21,671,858 21,522,873
Unfunded Actuarial Accrued Liability 5,232,597 5,083,612
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives 8,340,227 8,340,227
Actives 4,052,518 3,916,218
Member Contributions ~ .' 2,813,856 2,813,856
Total 15,206.600 15,070,301
Non-vested Accrued Benefits 573,909 573,909
Total Present Value Accrued 15,780,510 15,644,210
Benefits
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments 136,299
Assumption Changes 0
New Accrued Benefits 0
Benefits Paid 0
Interest 0
Other 0
Total: 136.299
proposed current
Valuation Date 10/1/2008 1 0/1/2008
Applicable to Fiscal Year Ending 9/30/2010 9/30/2010
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll. 17.44 17.46
Expected Adminstrative Expense
% of Total Annual Payroll* 0.60 0.60
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 30 years
(as of 10/1/08)
% of Total Annual Payroll* 4.69 4.60
Total Required Contribution
% of Total Annual Payroll. 22.73 22.66
Expected Member Contributions
% of Total Annual Payroll. 7.36 7.36
Expected City Contrib.
% of Total Annual Payroll* 15.37 15.30
* Contributions developed as of 10/1/08 are expressed as a percentage of projected
percentage of projected annual payroll at 10/1/08 of $7,904,794.
ACTUARIAL ASSUMPTIONS AND FUNDING METHODS
Assumptions
Mortality Rate
1983 Group Annuity Mortality Table.
I nterest Rate
8% per year compounded annually,
net of investment related expenses.
Retirement Aae
Age 60. Also, any member who has
reached Normal Retirement is
assumed to continue employment for
one additional year.
Early Retirement
Commencing with the earliest Early
Retirement Age (50), members are
assumed to retire with an immediate
subsidized benefit at the rate of 2% per
year.
Disability Rate
See table below (1202).
See table below (T-3).
Termination Rate
Salary Increases
6.0% per year until the assumed
retirement age; see table below.
Projected salary at retirement is
increased 20% to account for
non-regular compensation.
Payroll Increases
5.0% per year.
Administrative Expenses
$45,610 annually.
Current Salary
% Becoming Disabled % Terminating as a % of Salary
Aae Durina the Year Durina the Year at Aqe 60
20 0.051 % 50.0% 9.7%
30 0.058% 34.9% 17.4%
40 0.121% 3.8% 31.2%
50 0.429% 1.5% 55.8%
Fundina Methods
Entry Age Normal Actuarial Cost Method.
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2008-006)
Elioibilitv
Full-time employees who are classified
as General Employees participate as a
condition of employment.
Credited Service
Total years and fractional parts of years
of service with the City as a General
Employee.
Salarv
W-2 Compensation, plus tax-deferred,
tax-exempt, and tax-sheltered items of
income.
Averaoe Final Compensation
Average Salary for the 5 best years of
the 10 years immediately preceding
retirement or
termination.
Member Contributions
7.4% of Salary.
City Contributions
Remaining amount required in order to
pay current costs and amortize
unfunded past service cost, if any, over
30 years.
Normal Retirement
Date
Attainment of Age 60.
Benefit
3.0% of Average Final Compensation
times Credited Service. The maximum
benefit is 81 % of Average Final
Compensation.
Form of Benefit
Ten Year Certain and Life Annuity
(options available).
Earlv Retirement
Eligibility
Age 50 and 5 Years of Credited Service.
Benefit
Accrued benefit, actuarially reduced.
Vestino
Schedule
100% after 5 years of Credited Service.
Benefit Amount
Member will receive the vested portion
of his (her) accrued benefit payable at
the otherwise Early or Normal Retire-
ment Date.
Death Benefits
Pre-Retirement
Vested
Monthly accrued benefit payable to
designated beneficiary for 10 years.
Non-Vested
Refund of accumulated contributions
without interest.
Post-Retirement
Benefits payable to beneficiary in
accordance with option selected at
retirement.
Board of Trustees
a. Two City Commission appointees,
b. Two Members of the Plan elected by
the membership, and
c. Fifth Member elected by other 4 and
appointed by City Commission.
Deferred Retirement Option Plan
Eligibility
Within 12 months following satisfaction
of Normal Retirement requirements (age
60).
Deferred Retirement Option Plan (continued)
Participation
Rate of Return
Form of Distribution
Not more than 60 months.
At election of member (may change
once during DROP period) either: 1)
actual net rate of investment return (total
return net of brokerage commissions,
transaction costs, and management
fees), or 2) 6.5%. Earnings are credited
each fiscal quarter.
Cash lump sum (options available).
~
Law Offices
Christiansen & Dehner, P.A.
63 Sarasota Center Blvd. Suite 107 Sarasota, Florida 34240.941-377-2200. Fax 941-377-4848
May 5, 2009
VIA E-MAIL & UPS
Mr. Russ Wagner
Ocoee General Employees' Ret. Trust Fund
] 50 N. Lakeshore Drive
Ocoee, FL 3476]
Re: City of Ocoee Municipal General Employees' Retirement Trust Fund - Proposed
Ordinance
Dear Russ:
Enclosed please find a revised proposed ordinance amending and restating the City ofOcoee
Municipal General Employees' Retirement Trust Fund. It includes guidance from the Internal
Revenue Service, as well as other changes required by the Internal Revenue Code and Regulations
and changes to State law. Also included are the changes you requested as identified in my
correspondence dated April 29, 2009. The substantive changes are as follows:
] . Section 1, Definitions, is being amended for Internal Revenue Code (IRC) changes
and changes to the Uniformed Services Employment and Reemployment Rights Act
(USERRA), to amend the definitions of:
a. Actuarial Equivalent - IRC
b. Credited Service - USERRA; to provide credited service for those members
who terminated employment with the City of Ocoee prior to October], ] 99]
and who became or will become reemployed on or after October], ] 99]; to
provide credited service for Mayor and Commissioner members.
c. Salary - IRC
The definition of Act is being deleted because the provisions are included in the
definition of Code.
The definition of Member is being amended to provide for Mayor and Commissioner
members.
2. Section 2, Membership is being amended to clarify membership provisions for Mayor
and Commissioner members.
Mr. Russ Wagner
May 4, 2009
Page 2
3. Section 3, Board of Trustees, is being amended by limiting the two member trustee
positions to vested members and increasing the trustee terms to four years.
4. Section 5, Contributions, is being amended for clarification oflanguage to satisfy the
requirements of State Actuary.
S. Section 6, Benefit amounts and eligibility, is being amended to add subsection 6,
Required Distribution Date - IRC. This section is also being amended to provide for
Mayor and Commissioner Members.
6. Section 7, Pre-Retirement Death, is being amended to comply with IRC changes
regarding non-spouse beneficiaries.
7. Section 8, Vesting, is being amended to remove language which conflicts with the
new Section 24, Reemployment after retirement
8; Section 9, Optional Forms of Benefits, is being amended to:
a. Cite an appropriate Treasury Regulation - IRC
b. Add a new subsection 5 E - IRC
c. Amend subsection 7 - IRC
9. Section 11, Claims Procedures Before the Board, is being amended to provide
specific authority for the Board to adopt administrative claims procedures to be
utilized in handling claims made by members. The Board has already
administratively adopted "Operating Rules and Procedures".
1 O. Section 13, Board Attorney and Professionals is being deleted because the provisions
are included in the Board of Trustees Section.
11. Section 14, Maximum Pension, has been totally re-written to comply with IRC
changes.
12. Section 15, Minimum Distribution of Benefits, is being amended for IRe changes.
13. Section 16, Miscellaneous provisions, is being amended for changes to the IRC,
USERRA and general compliance language.
14. Section 17, Repeal or Termination of System, is being amended for IRC changes to
eliminate outdated language.
Mr. Russ Wagner
May 4,2009
Page 3
15. Section 18, Exemption from Execution, non-assignability, is being amended to add
the requirement that members who are involved in a divorce will provide a copy of
the proposed court order to the Board for review prior to submitting it to the Court.
This review will avoid the entry of an order requiring the plan to make payments to
an ex-spouse which are not legally permissible and avoid possible expenses to the
, Board in seeking the repeal of any such orders. This amendment also allows a retiree
to direct retirement benefit deductions for payments to the City or to insurance
companies for benefits such as health insurance, if permitted. This is a non-
mandatory, no-cost recommended amendment.
16. Section 20, Forfeiture of Pension, is being amended to include a recent amendment
to Section 112.3173, Florida Statutes, which is applicable to all Florida pension
plans.
17. Section 23, Direct Transfers of Eligible Rollover Distributions; Elimination of
Mandatory Distributions, is being amended to comply with IRC changes.
18. Section 24, Separation from Employment for Military Service, is being removed in
its entirety, as new revised language has been added to the definition of Credited
Service.
19. Section 24, Reemployment After Retirement, is a new provision setting forth the
provisions for reemployment after retirement to comply with required Internal
Revenue Service guidelines.
20. Section 25, Deferred Retirement Option Plan is being amended to incorporate the
changes necessary to comply with the provisions of the new proposed Section 24,
Reemployment After Retirement and to add a provision to provide for the inclusion
of an amount equal to any lump sum payments which would have been paid to a
member and included as salary for purposes of determining the member's accrued
benefit had he retired and not entered the DROP. This avoids a possible penalty for
entering the DROP rather than actually retiring at normal retirement.
21. Section 26, Prior Government Service, is being amended to allow multiple requests
to purchase credited service at any time prior to retirement.
22. Section 27, Military Service Prior to Employment, is being amended to allow
multiple requests to purchase credited service at any time prior to retirement.
Mr. Russ Wagner
May 4, 2009
Page 4
By copy of this letter to the Board's actuary, Foster & Foster, Inc., I am requesting that they
provide you with a letter indicating the cost, if any, associated with the adoption of this ordinance.
If you have any questions with regard to this ordinance, please feel free to give me a call.
7;:'
H. Lee Dehner
HLD\noc
enclosure
cc: Brad Heinrichs, with enclosures
Law Offices
Christiansen & Dehner, P.A.
63 Sarasota Center Blvd. Suite 107 Sarasota, Florida 34240.941-377-2200. Fax 941-377-4848
April 29, 2009
Mr. Russ Wagner
Planning Director
City of Ocoee
150 N. Lakeshore Drive
Ocoee, FL 34761-2223
Re: Changes You Requested to the City of Ocoee Municipal General Employee's
Retirement Trust Fund Restatement
Dear Russ:
Pursuant to your request, I am providing pages 3, 4, 5, 6, 11, 47 and 48 of the proposed
restatement with the changes requested in your 4/16/09 memo. In addition, as requested, I have
provided that no benefit may be received by a Mayor or Commissioner who has not served for nine
years of Credited Service.
The changes are in:
P. 3, Section 1, Credited Service
P. 4, Section 1, Credited Service
P. 5, Section 1, Member
P. 6, Section 2, 1.C., Conditions of Eligibility and Section 3, Board of Trustees
P. 11, Section 6.1., Normal Retirement Date and Section 3, Early Retirement Date
P. 47, Section 26, Prior Government Service
P. 48, Section 27, Military Service Prior to Employment
I have also included page 14 with the existing vesting provision. If these meet with your
approval, let me know and I will incorporate them into the restatement and copy Foster & Foster for
an actuarial analysis.
Yours very truly,
~6/~
H. Lee Dehner
HLD\noc
DICTATED BY MR. DEHNER
!3,UT SIGNED IN HIS ABSENCE
TO AVOID DELAY IN MAILING
ORDINANCE NO. 2009-
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 96-19, AS SUBSEQUENTLY AMENDED;
PROVIDING FOR DEFINITIONS; PROVIDING FOR
MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES;
PROVIDING FOR FINANCES AND FUND MANAGEMENT;
PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR
BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR
PRE-RETIREMENT DEATH BENEFITS; PROVIDING FOR
VESTING OF BENEFITS; PROVIDING OPTIONAL FORMS
OF BENEFITS; PROVIDING FOR BENEFICIARIES;
PROVIDING CLAIMS PROCEDURES; PROVIDING FOR A
ROSTER OF RETIREES; PROVIDING FOR A MAXIMUM
PENSION LIMITATION; PROVIDING FOR MINIMUM
DISTRIBUTION OF BENEFITS; PROVIDING
MISCELLANEOUS PROVISIONS; PROVIDING FOR
REPEAL OR TERMINATION OF THE SYSTEM;
PROVIDING FOR DOMESTIC RELATIONS ORDERS,
RETIREE DIRECTED PAYMENTS AND EXEMPTION FROM
EXECUTION AND NON-ASSIGNABILITY; PROVIDING FOR
PENSION VALIDITY; PROVIDING FOR FORFEITURE OF
PENSION UNDER CERTAIN CIRCUMSTANCES;
PROVIDING FOR INDEMNIFICATION AND DEFENSE OF
CLAIMS; PROVIDING FOR THE PURCHASE OF CREDITED
SERVICE FOR ABSENCES PURSUANT TO THE FAMILY
AND MEDICAL LEAVE ACT; PROVIDING FOR DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS
AND ELIMINATION OF MANDATORY DISTRIBUTIONS;
PROVIDING FOR REEMPLOYMENT AFTER
RETIREMENT; PROVIDING FOR A DEFERRED
RETIREMENT OPTION PLAN; PROVIDING FOR THE
PURCHASE OF CREDITED SERVICE FOR PRIOR
GOVERNMENT SERVICE; PROVIDING FOR MILITARY
SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR
THE PURCHASE OF CREDITED SERVICE FOR "AIR
TIME"; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE
DATE.
SECTION 1: Authority. The City Commission of the City of Ocoee has the authority to
adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter
166, Florida Statutes.
SECTION 2: The present ordinances numbers 96-19, 97-27, 99-34,2002-25,2005-015,
2006-004,2006-010,2007 -001, and 2008-08, adopted by the City Commission of the City ofOcoee,
are hereby amended and restated in full incorporating Federal law, the applicable provisions of the
Florida Statutes; and other amendments as set forth in THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND, a copy of which is attached hereto,
and by this reference made a part hereof.
SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 4. Severability. In the event any section, subsection, paragraph, sentence, clause,
phrase orword of this ordinance shall be held invalid by a court of competent jurisdiction, then such
invalidity shall not effect the remaining portions hereof.
SECTION 5. Effective Date. This ordinance shall take effect upon second reading and
adoption.
PASSED AND ADOPTED this day of ,2009.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
By:
S. Scott Vandergrift, Mayor
Beth Eikenberry, City Clerk
(SEAL)
ADVERTISED ,2009
READ FIRST TIME , 2009
READ SECOND TIME AND ADOPTED
,2009
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS DAY OF ,2009.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD ON
, 2009 UNDER AGENDA ITEM
Page 2
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 Contributions means a Member's own contributions without interest. For those
Members who purchase Credited Service with interest or at no cost to the System, any payment
representing the amount attributable to Member contributions based on the applicable Member
contribution rate, any payment representing interest and any required actuarially calculated payments
for the purchase of such Credited Service, shall be included in Accumulated Contributions.
M means the Employee Retiremwt Income Secmity Act of 1974 (P.L. 9J-40G) and any
le.gu1ations issued thclcundGl by the Departme.nt of Labor and the. hlteIllal Re.venuc Se.r vie.e., as that
Statute and these. le.gulations shall be. ame.nde.d.
Actuarial Equivalent means a benefit or amount of equal value, based upon the. 198J GlOUp
Annuity Mortality Table and an inter cst late of c.ight (8%) pCI annum determined on the basis of
actuarial equivalency using assumptions adopted by the Board such that benefit calculations are not
subiect to City discretion.
Average Final Compensation means one-twelfth (1/12) ofthe average Salary of the five (5)
best years ofthe 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.
Ifno such designation is in effect, or ifno 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.
Code 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 with Member contributions, when required, or effective October 1. 2006 as a
Mayor or a Commissioner. omitting intervening years or fractional parts of years when such Member
was not employed by the City as a General Employee or an elected official. A Member may
voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the
employ ofthe City pending the possibility of being rehired without losing credit for the time that he
or she was a Member ofthe System. Ifthe Member is not reemployed within five (5) years, then the
Accumulated Contributions will be returned upon written request ofthe Member. If a Member who
is not vested is not reemployed as a General Employee with the City ofOcoee within five (5) years,
his or her Accumulated Contributions, if one-thousand dollars ($1,000.00) or less, shall be returned.
If a Member who is not vested is not reemployed within five (5) years, his or her Accumulated
Contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon the written
request of the Member and upon completion of a written election to receive a cash lump sum or to
rollover the lump sum amount on forms designated by the Board. Upon return of his or her
Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and
terminated. Those Members who terminated employment with the City of Ocoee prior to October
Page 3
1. 1991 and who became or will become reemployed on or after October I, 1991 shall be granted
Credited Service for the total number of years and fractional parts of years of service as a General
Employee with the City of Ocoee prior to October 1. 1991.
The years or parts of a year that a member performs "Qualified Military Service" consisting
of voluntary or involuntary "service in the uniformed services" as defined in the Uniformed Services
Employment and Reemployment Rights Act (USERRA) (P.L.103-3S3), after separation from
employment as a General Employee to perform training or service, shall be added to his or her years
of Credited Service for all purposes, including vesting. provided that:
A. The Member is entitled to reemployment under the provisions ofUSERRA.
B. The Member returns to his or her employment as a General Employee within one (1)
year following the earlier of the date of his or her military discharge or his or her
release from service, unless otherwise required by USERRA.
C. The Member deposits into the Fund the same sum that the Member would have
contributed, if any. if he or she had remained a General Employee during his or her
absence. The maximum credit for military service pursuant to this subdivision shall
be five (5) years. The Member must deposit all missed contributions within a period
equal to three times the period of military service. but not more than five (5) years,
following re-employment or he or she will forfeit the right to receive credited service
for his or her military service pursuant to this paragraph.
D. This paragraph is intended to satisfy the minimum requirements ofUSERRA. To the
extent that this paragraph does not meet the minimum standards of USERRA. as it
may be amended from time to time. the minimum standards shall apply.
In the event a Member dies on or after January 1,2007, while performing USERRA Qualified
Military Service. the beneficiaries of the Member are entitled to any benefits (other than benefit
accruals relating to the period of qualified military service) as if the Member had resumed
employment and then died while employed.
In the event that a Member (except a Mayor or Commissioner Member) ofthis System has
also accumulated credited service in another pension system maintained by the City, or has a period
or periods of previous employment as a General Employee, but is not eligible to receive Credited
Service for this period or periods of previous employment for benefit calculation purposes, then such
other credited service shall be used in determining vesting as provided for in Section 8, and for
determining eligibility for early or normal retirement. Such other credited service will not be
considered in determining benefits under this System. Unless otherwise provided herein, only his
or her Credited Service and Salary under this System on or after his or her latest date of membership
in this System will be considered for benefit calculation. In addition, any benefit calculation for a
Member ofthis System who is or becomes eligible for a benefit from this System after he or she has
become a member of another pension system maintained by the City, shall be based upon the
Member's Average Final Compensation, Credited Service and benefit accrual rate as of the date the
Member ceases to be a General Employee.
Effective Date means October 1, 1991.
Fund means the trust fund established herein as part of the System.
General Employee 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.
Page 4
Member means an actively employed General Employee who fulfills the prescribed
membership requirements, and effective October 1, 2006, current and future Mayors and
Commissioners. Mayors and Commissioners are non-contributing members and shall have a normal
retirement date, an early retirement date and vesting applicable to them as provided for herein.
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.
Plan Year means the twelve (12) month period beginning October 1 and ending September
30 of the following year.
Retiree means a Member who has entered Retirement Status.
Retirement means a Member's separation from City employment with eligibility for
immediate receipt of benefits under the System.
Salary 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 oflimitations set forth in Section 401 (a)(17) ofthe Code shall be disregarded as of the first
day of the Plan Year shall be disregarded for any purpose, including employee contributions or any
benefit calculations. The annual compensation of each member taken into account in determining
benefits or employee contributions for any Plan Year beginning on or after January 1,2002, may not
exceed $200,000. as adjusted for cost-of-living increases in accordance with Code Section
401(a)(17)(B). Compensation means compensation during the fiscal year. The cost-of-living
adjustment in effect for a calendar year applies to annual compensation for the determination period
that begins with or within such calendar year. If the determination period consists of fewer than 12
months, the annual compensation limit is an amount equal to the otherwise applicable annual
compensation limit multiplied by a fraction. the numerator ofwhich is the number of months in the
short determination period, and the denominator of which is 12. If the compensation for any prior
determination period is taken into account in determining a Member's contributions or benefits for
the current Plan Year, the compensation for such prior determination period is subject to the
applicable annual compensation limit in effect for that prior period. 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.
Spouse means the lawful wife or husband of a Member or Retiree at the time benefits become
payable.
System means the City of Ocoee Municipal General Employee's Retirement Trust Fund as
contained herein and all amendments thereto.
SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
Subject to A. ofthis 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 of the System. Thereupon, it shall be the duty
Page 5
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 of the System are: City Manager,
Assistant City Manager and Directors.
B. Effective July 11,2009, the current 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 for those years. and fractional parts of years of service as an
elected official with the City, determined as if they had been Members ofthe
System on the latel ofOctobGl 1, 1997 or on the date they took office.
2. Membership.
Each Member shall complete a form prescribed by the Board providing for the
designation of a Beneficiary or Beneficiaries.
SECTION 3. BOARD OF TRUSTEES.
1. The sole and exclusive administration of and responsibility for the proper operation
of the System and for making effective the provisions ofthis ordinance are hereby vested in a Board
of Trustees. The Board of Trustees is hereby designated as the plan administrator. The Board of
Trustees shall consist of five (5) Trustees, two of whom, unless otherwise prohibited by law, shall
be legal residents of the City, who shall be appointed by the Ocoee City Commission, and two of
whom shall be full-time vested Members of the System, who shall be elected by a majority of the
General Employees who are Members ofthe System. The fifth Trustee shall be chosen 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) four (4) year term unless he or she sooner vacates the
office. Each resident Trustee shall serve as Trustee for a period oft\\lo (2) four (4) years, unless he
or she sooner vacates the office or is sooner replaced by the Ocoee City Commission at whose
pleasure he or she shall serve. Each Member Trustee shall serve as Trustee for a period of two (2)
four (4) years, unless he or she sooner leaves the employment of the City as a General Employee or
otherwise vacates his or her office as Trustee, whereupon a successor shall be chosen in the same
manner as the departing Trustee. Each Trustee may succeed himself or herself in office. The Board
shall establish and administer the nominating and election procedures for each election. The Board
shall meet at least quarterly each year. The Board 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 description.
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 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.
Page 6
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 ofthe Board. A Trustee shall have
the right to recuse himself or herself from voting as the result of a conflict of interest provided that
the Trustee complies with the provisions of Section 112.3143, Florida Statutes.
4. The Board shall engage such actuarial, accounting, legal, and other services as shall
be required to transact the business of the System. The compensation of all persons engaged by the
Board and all other expenses of the Board necessary for the operation of the System shall be paid
from the Fund at such rates and in such amounts as the Board shall agree.
5. The duties and responsibilities of the Board shall include, but not necessarily be
limited to, the following:
A. To construe the provisions ofthe System and determine all questions arising
thereunder.
B. To determine all questions relating to eligibility and membership.
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.
F. To receive and process all applications for 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 valuations at least as often as
required by law, and make recommendations regarding any and all changes
in the provisions of the System.
I. To perform such other duties as are required to prudently administer the
System.
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there exists 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. 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 of the City, acting in a ministerial capacity only,
Page 7
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
conform to and be bound by all ofthe 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 ofthese, 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.
S. 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 subject
to the following:
Page 8
(1) 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
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.
(2) The Board shall develop and adopt a written investment policy
statement setting forth permissible types of investments, goals and
objectives 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.
(3) 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.
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.
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.
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 ofthe Fund
to exercise.
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.
Page 9
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.
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.
1. The Board shall sustain no liability whatsoever for the sufficiency ofthe Fund
to meet the payments and benefits herein provided for.
1. 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.
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.
SECTION 5. CONTRIBUTIONS.
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 or her benefit
calculated and frozen at the time ofthe election. Ifno such election is made,
Member Contributions to the Fund shall continue.
Page 10
B. Method. Such contributions shall be made by payroll deduction.
2. City Contributions.
So long as this System is in effect, the City shall make quarterly contributions to the
Fund in an amount equal to the required city contribution. as shown by the applicable actuarial
valuation of the S;stem diffGrCl1ce in cadI year, beh"9cell the total aggregate Membcr contributions
for the year and tI e total cost for the year, as shown by tile most recent actuarial valuation oftlle
System. The total cost for any yeal shall be ddllted as tile total normal cost plus thc additional
amount sufficient to amortize the unfunded past ser v ice liability ove1 a thir ty (JO) year per iod,
comnlCl1Ging with the fiscal year ill wllich the Dffcctivc 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 additional 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 (except a Mayor or Commissioner Member) normal retirement date shall
be the first day of the month coincident with, or next following the attainment of age sixty (60)
regardless ofthe years of Credited Service. A Mayor or Commissioner Member's normal retirement
date shall be the first day of the month coincident with. or next following the attainment of age sixty
(60) and the completion of nine (9) years of Credited Service. A Member may retire on his or her
normal retirement date or on the first day of any month thereafter, and each Member shall become
100% vested in his or her accrued benefit on the Member's normal retirement date. Normal
retirement under the System 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 or her normal retirement date shall
receive a monthly benefit which shall commence on the first day ofthe month next following his or
her Retirement 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 retirement
benefit shall equal three percent (3%) of Average Final Compensation, for each year of Credited
Service, up to a maximum benefit not to exceed eighty-one percent (81 %) of Average Final
Compensation of the Member.
3. Early Retirement Date.
A Member (except a Mayor or Commissioner Member) may retire on his or her early
retirement date which shall be the first day of any month coincident with or next following the
attainment of age fifty (50) and the completion of five (5) years of Credited Service. A Mayor or
Commissioner Member may retire on his or her early retirement date which shall be the first day of
any month coincident with or next following the attainment of age fifty (50) and the completion of
nine (9) years of Credited Service. Early retirement under the System is Retirement from
employment with the City on or after the early retirement date and prior to the normal retirement
date.
Page 11
4. Early Retirement Benefit.
A Member retiring hereunder on his or her early retirement date may receive either
a deferred or an immediate monthly retirement benefit payable for life as follows:
A. A deferred monthly retirement benefit which shall commence on what would
have been his or her normal retirement date had he or she 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 or her normal
retirement date except that Credited Service and Average Final
Compensation shall be determined as of his or her early retirement date; or
B. An immediate monthly retirement benefit which shall commence on his or
her 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 or she would have
been entitled had he or she retired on his or her normal retirement date and
with the same number of years of Credited Service as at the time his or her
benefits commence and based on his or her Average Final Compensation at
that date.
5. Cost-of-Living Adjustment.
The monthly retirement benefit being paid to all Retirees and Beneficiaries who were
receiving benefits on June 15, 1997, shall be increased by ten percent (10%).
6. Required Distribution Date.
The Member's benefit under this Section must begin to be distributed to the Member
no later than April I of the calendar year following the later of the calendar year in which the
Member attains age seventy and one-half(70!h) or the calendar year in which the Member terminates
employment with the City.
SECTION 7. PRE-RETIREMENT DEATH.
1. Prior to Vesting or Eligibility for Retirement.
The Beneficiary of a deceased Member who was not receiving monthly benefits or
who was not yet vested or eligible for early or normal retirement shall receive a refund of one-
hundred percent (100%) of the Member's Accuri1U~ated Contributions.
2. Deceased Members Vested or Eligible for Retirement with Spouse as Beneficiary.
This subsection 2. applies only when the Member's Spouse is the sole designated
Beneficiary. The Spouse Beneficiary of any Member who dies and who, at the date of his or her
death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows:
A. Ifthe Member was vested, but not eligible for normal or early retirement, the
Spouse Beneficiary shall receive a benefit payable for ten years, beginning on
the date that the deceased Member would have been eligible for early or
normal retirement, at the option ofthe Spouse Beneficiary. The benefit shall
be calculated as for normal retirement based on the deceased Member's
Credited Service and Average Final Compensation as of the date of his or her
death and reduced as for early retirement, if applicable. The
Page 12
Spouse Beneficiary may also elect to receive an immediate benefit, payable
for ten years, which is actuarially reduced to reflect the commencement of
benefits prior to the early retirement date.
R If the deceased Member was eligible for normal or early retirement, the
Spouse Beneficiary shall receive a benefit payable for ten years, beginning on
the first day of the month following the Member's death or at the deceased
Member's otherwise normal retirement date, at the option of the Spouse
Beneficiary. The benefit shall be calculated as for normal retirement based
on the deceased Member's Credited Service and Average Final Compensation
as of the date of his or her death and reduced as for early retirement, if
applicable.
C. A Spouse Beneficiary may not elect an optional form of benefit, however, the
Board may elect to make a lump sum payment pursuant to Section te 2.,
subsection 7.
D. A Spouse Beneficiary may, in lieu of any benefit provided for in A or B
above, elect to receive a refund of the deceased Member's Accumulated
Contributions.
E. Notwithstanding anything contained in this Section to the contrary, in any
event. distributions to the Spouse Beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the
Member died, or by a date selected pursuant to the above provisions in this
Section that must be on or before December 31 of the calendar year in which
the Member would have attained 70Yz.
F. If the surviving Spouse Beneficiary commences receiving a benefit under
subsection A or B above, but dies before all payments are made, the actuarial
value ofthe remaining benefit will be paid to the Spouse Beneficiary's estate
in a lump sum.
~ Deceased Members Vested or Eligible for Retirement with Non-Spouse Beneficiary.
This subsection applies only when the Member's Spouse is not the Beneficiary or is
not the sole designated Beneficiary, but there is a surviving Beneficiary. The Beneficiary of any
Member who dies and who, at the date of his or her death was vested or eligible for early or normal
retirement. shall be entitled to a benefit as follows:
A. Ifthe Member was vested, but not eligible for normal or early retirement. the
Beneficiary will receive a benefit payable for ten (10) years. The benefit will
begin by December 31 of the calendar year immediately following the
calendar year in which the Member died. The benefit will be calculated as
for normal retirement based on the deceased Member's Credited Service and
Average Final Compensation and actuarially reduced to reflect the
commencement of benefits prior to the normal retirement date.
B. If the deceased Member was eligible for normal or early retirement. the
Beneficiary will receive a benefit payable for ten (10) years, beginning on the
first day of the month following the Member's death. The benefit will be
calculated as for normal retirement based on the deceased Member's Credited
Service and Average Final Compensation as of the date of his or her death
and reduced for early retirement, if applicable.
Page 13
C. A Beneficiary may not elect an optional form of benefit. however the Board
may elect to make a lump sum payment pursuant to Section 9.. subsection 7.
D. A Beneficiary. may. in lieu of any benefit provided for in A or B above. elect
to receive a refund of the deceased Member's Accumulated Contributions.
E. If a surviving Beneficiary commences receiving a benefit under subsection
A or B above. but dies before all payments are made. the actuarial value of
the remaining benefit will be paid to the surviving Beneficiary's estate by
December 31 of the calendar year of the Beneficiary's death in a lump sum.
F. Inhere is no surviving Beneficiary as of the Member's death. and the estate
is to receive the benefits. the actuarial equivalent of the Member's entire
interest must be distributed by December 31 ofthe calendar year containing
the fifth anniversary of the Member's death.
G. The Uniform Lifetime Table in Treasurv Regulations & 1.401(a)(9)-9 shall
determine the payment period for the calendar year benefits commence. if
necessary to satisfy the regulations.
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. Ifthe 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 MGhlbGI ofthG System whose position is tGllllinatGd, fO! w hatev GI I Gason,
but who I (,Jllains GIl1ployed by the City in somG othGI eapadt)', shall ha v G allletil eInelit bGliefits
aeGlUed up to thG date of sudl tGl miliation ulidGl this Systelil plGSGI v cd, pi 0 v id"d III:: O! sllG does hot
elect to withdlaw his or llel AeGUillUlated ContIibutiolis flom this SystO(l. Sudl aeGlUed Ictilelilclit
belicfits shall be payable at his 01 her othel wisG cady (leduGGd as fol Gady lctilenlwt) 01 liollilal
letilemclit date llGlcundGl, 01 latel, in aceOtdalice with the Plovisions of this SystWl.
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 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:
Page 14
A. A retirement income ofa 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 payments to the joint pensioner as a percentage of the
payments to the Retiree shall not exceed the applicable percentage provided
for in the applicable table in the Treasury regulations. (See 0 & A-2 of
1.401 (a )(9)-6)
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:
(1) Five (5) percent lump sum benefit with ninety-five (95) percent paid
under the normal form or as per A., B. or C. above.
(2) Ten (10) percent lump sum benefit with ninety (90) percent paid
under the normal form or as per A., B. or C. above.
(3) Fifteen (15) percent lump sum benefit with eighty-five (85) percent
paid under the normal form or as per A., B. or C. above.
(4) Twenty (20) percent lump sum benefit with eighty (80) percent paid
under the normal form or as per A., B. or C. above.
2. The Member, upon electing any option of this Section, will designate the joint
pensioner (subsection 1.B., above) or Beneficiary (or Beneficiaries) to receive the benefit, if any,
payable under the System in the event of Member's death, and will have the power to change such
designation from time to time. Such designation will name ajoint pensioner or one or more primary
Beneficiaries where applicable. If a Member has elected an option with a joint pensioner or
Beneficiary and Member's retirement income benefits have commenced, Member may thereafter
change his or her designated Beneficiary at any time, but may only change his or her joint pensioner
ifthe designated joint pensioner and the Member were married at the time of Member's Retirement
and are divorced subsequent thereto and the joint pensioner is alive at the time of the change.
3. The consent of a Member's or Retiree's joint pensioner or Beneficiary to any such
change shall not be required. The rights of all previously-designated Beneficiaries to receive benefits
under the System shall thereupon cease.
4. Upon change of a Retiree's Beneficiary or joint pensioner in accordance with this
Section, the Board shall adjust the Retiree's monthly benefit by application of actuarial calculations
to insure that the benefit paid is the Actuarial Equivalent ofthe Retiree's then-current benefit. Any
such Retiree shall pay the actuarial recalculation expenses and shall make repayment of any overage
ofpreviously-paid pension benefits as a result of said recalculations. Each request for a change will
Page 15
be made in writing on a form prepared by the Board and on completion will be filed with the Board.
In the event that no designated Beneficiary survives the Retiree, such benefits as are payable in the
event of the death of the Retiree subsequent to his or her Retirement shall be paid as provided in
Section 10.
S. 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 Member dies prior to his or her 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.
B. If the designated beneficiary (or beneficiaries) or joint pensioner dies before
the Member's Retirement under the System, the option elected will be
canceled automatically and a retirement income of the normal form and
amount will be payable to the Member upon his or her 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
Member prior to his or her Retirement.
C. If both the Retiree and the Beneficiary (or Beneficiaries) designated by
Member or Retiree 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 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.
D. If a Member continues beyond his or her normal retirement date pursuant to
the provisions of Section 6, subsection 1, and dies prior to his or her 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 Member in the amount or amounts computed
as if the Member had retired under the option on the date on which his or her
death occurred.
E. The Member's benefit under this Section must begin to be distributed to the
Member no later than April 1 of the calendar year following the later of the
calendar year in which the Member attains age seventv and one-half (70Yz)
or the calendar year in which the Member terminates employment with the
City.
6. A Retiree may not change his or her retirement option after the date of cashing or
depositing his or her 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 ilIcomG payments to be paid do not exceed Tlilee
Thousahd fi vC IIUl.dred Dollars ($3,500.00) monthly income payments to be paid do not exceed one
thousand dollars ($1.000.00). Any such payment made to any person pursuant to the power and
discretion confined upon the Board by the preceding sentence shall operate as a complete discharge
of all obligations under the System with regard to such Member and shall not be subject to review
by anyone, but shall be final, binding and conclusive on all persons.
Page 16
SECTION 10. BENEFICIARIES.
1. Each Member or Retiree may, on a form provided for that purpose, signed and filed
with the Board, designate a Beneficiary (or Beneficiaries) to receive the benefit, if any, which may
be payable in the event of his or her death. Each designation may be revoked or changed by such
Member or Retiree by signing and filing with the Board a new designation-of-beneficiary form.
Upon such change, the rights of all previously designated Beneficiaries to receive any benefits under
the System shall cease.
2. If a deceased Member or Retiree failed to name a Beneficiary in the manner
prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Member or
Retiree predeceased the Member or Retiree, the death benefit, if any, which may be payable under
the System with respect to such deceased Member or Retiree shall be paid to the estate of the
Member or Retiree.
SECTION 11. CLAIMS PROCEDURES BEFORE THE BOARD DECISION.
t: Claims of Affected Pel sons.
*: The Doard ofTlUstees shall gIant all initial healing upon receipt ofa ~littGn
request ("Claim"), on mattels ~ hieh affed the substantial rights ofan)' person
("Claimant"), including Mcmbcrs, Retirees, Deneficialics, 01 any pelson
affected by a decision ofthe Doald ofTrustccs.
B: The Doard shalllc'\iiew the Claim at an initial hUlling and entCi an Older
~ithin ninety (90) days fiom the date ofreccipt onhe Claim. Thc Doard rMY
extcnd the time fOl entering thG oldcr at an initial hearing fol an additional
ninety (90) days ifit detGllninGs such timc is nGCGSsary for full disGovcry and
adequate revie~. The GcnCial Counscl and thG Claimant may stipulate to
fmthGr extGnsions of time.
€: It shall be the function of tIle Gcneral Counscl, tllloughout thc clainls
plocedme, to assist the Doard in thc discovery and pI Gsel1tation of Gvidwcc
in Older to assure that the Doard recci vCS all rclevant infolmation prior to thc
Doard's dccision.
&- The Claimant shall have thc right to be reprcsentcd by counscl at any 01 all
times throughout thc claims procedure.
Z:- Initial lIearing.
*: At the initial hcaling, thc only evidencc to be considcred by the Doard shall
be documentary evidence contained in the pension file, including but not
limited to, cOllcspondcncc and evidence received pmsual1t to paragraph D.
B: Othel tIlan questions from the Trustees, thcle ~ill be no taking of additiol1al
ev idGneG at the initial hearing, except that the Clainlant w ill be affolded
fiftecn (15) minutes to make a pI esentation, which shall be limited to
eonll11cnts and/or arguments as to the evidence 01 infolmation aheady
contained in the pension file.
€: Upon c0l11plction ofthc review ofthc Claim at tI1C initial healing, the Doard
shall Cl1tGr an Oldel sctting forth its findings and conclusions on the Claim.
The written Older shall be provided to the Claimant. The ordel sllall include.
Page 17
B-:
tt7
The specific findings alid eon~lt~siolIs onhe Doal d, ilIcludin& specific
!efelelIees to pertinent Plovls!ons of tIle Systelu on ~LIGh such
eOlidusions are based,
A dcse.ription of any additionallilate.r ial 01 infonllati~1I tIlat tile DO~I d
!uay dee.m lle.cessary for the Claimant to pel ree.t Ius. 01 110 c;laIll?,
togethe.r with tIle. I easolIs ~ hy sue.h matellal 01 lllf-oullatIon IS
nece.ssary, and
An e.xplanation ofthe 1 ight to a full Ileal ilig on th~ Cla~l~l alld tile time
linlit in ~hie.h a full hearing must be lequested III ~lltIllg.
TIle dee.ision of the Doard at the initial he.Ctl illg sllall not be. final until aftel
the time.llas e.xpired to re.quest a full heal ing 01, if a full Le.arillg is I ~qucsted,
ulItil the Doald lllakcs a dee.ision at tIIC e.olIdusion oftLe. full11eallllg.
t21
ffl
3-:- Full lIearing.
-A::
B:-
€:
Any ClailIlant may 1 eque.st a fulllle.a.l ilig on the issues pleselIted to tile Doard
at an initial he.aling and upon wlue.h the. Doard has e.nte.le.d an oldcr as
plovided in subse.ction 2.C. above..
A full hearihg must be 1 e.que.sted by the Clai~nalit ~ ithin nilIet~ (90) days of
the ree.eipt ofthe DOa1d's order. The olde.r W III be de.cnled ree.el ve? tIuee (J)
days follo~ ing the. date it is lilailcd to Clainlant at the addl ess pr 0 v !ded to the
Boal d by Claimallt.
DpOll receipt of the lcquest for a fulllle.alilig and eonsidcril~g the aluount of
disco v cry W hidl might be. e.ondueted, the Doar d sllal} cstab hsh a date for ~he
full he.aring alld e.ausc notie.o to be. given to the. C~allilant. The full hcarUlg
shall bc held ~itIlin nille.ty (90) days floru tile rce.~lpt ofthc rcquest fr?lu tllo
Claimant. The full healing may be. postpone.d, If neee.ssaly alId WIth tile
consent oftIlc Claimant, to pelmit full diseovCly of tile facts.
Copics of all dOGUmcnts to be offcl cd. into e.v ide~le.e at the full ~l~al il!~,
ilic.luding depositions, alid a eOhlpkte ~ ItlIess hs~ ~ ltIl names and addr esses
of witncsses e.xpeete.d to bc called, shall be furhlshed to tile I?oald and the
Ge.lIer al Counsd by the Clailllant at least twenty (?O). days pllOI t? tile .full
healing. DOGUme.nts not fUInisll~d to tile Doard wltIun ~he prcsellbed tunc
limit may be exc.luded fI om ev ldence a~ the f~ll. lle.allllg If a I easOllablc
explanatioll is not pro v ided fo! the dc.lay In pro v ldmg the dOGUllIClJtS.
A Claimant 01 the General Connsc.l may obtain diseove.ly by deposition
and/or intellogatories Plior to tile full hearing. Vv'ritte.u lIoticc of any
depositions and/Ol intGllogatoliGs sllall bc givCli to tile GGnGlal Coullsd and
tho Claimant.
TIle costs of any dise.ovClY, GXCGpt discovGly Icqucstcd by the Doald 01 ~he
GOliclal Connsc.l, tile. appearaliGe of witncsses at the heaIillg, al1~ ~l~e maklllg
of a vClbatirll !ecOld of the proe.ecdillgs sllall bG tLG lesporl5lbIlrty of the
Claimant.
The Claimaht shall be lesponsible for the appealane.e of ally ~ itllesses ~ llieh
lie. or she wishes to lla~e testify at the healing. The Doald ~hall, LO~Gver,
have the powel to subpoena alid lequile the. attendallCG ofwltncsses alld tile
B-:
E:-
F:
6-:
Page 18
plOduction of documwts [or disc.overy Plior to and at tile plOeeedings
provided for herein. TIle Clail1lallt may request in writing tile issuahce of
5ubpoGllas by the Doard. A reasorlablc fee l1lay be cha1ged for tile issuance
of ahY subpoenas not to exceed tile fees set forth in rlorida Statutes.
H: Tcstimor(y at the [ullllearing rllay be subnlitted ill the f011l1 of a depositioh.
Depositions timely Sub111itted will be part of the 1ecord beforc tile Doald at
thG full hearing and will hOt be rGad in totality at tile fullllGarirlg, providGd
llowevel, that this docs not preclude tile Claimant or the Genelal Counsel
f101h readihg parts of depositiolls in an opehing 01 closing statwlcnt.
f: Illekvant and unduly repetitious evidGllce shall bc excluded.
:f: Any pelson who know ingly gi ves false testil1lOl1Y is guilty of a 111isdemeanor
of the first degree, purlishablc as plovided in Section 775.082 01 775.083,
Horida Statutes.
foE: The file. maintained by tile Doald is pal t oftllG lecold bcfore tllC Doald at the
full heal ihg.
b All ploccedihgs of the Doard shall be eonductcd in public.
M:- In eases concellling ah app1ieation for PGllsion behcfits, the burdGll of plOof,
except as othcrwise plovided by law, shall be 011 the C1aimarlt seekillg to
show entitlement to such bellefits.
N: hI eases concellling te11ilination of PGllsion benefits, the bur dell 0 f ploof shall
be on the Doard.
6:- Except as to those lCCOlds which arc exempted fiOlli the Plovisions of
Cllapter 119, rlolida Statutes, rlorida's Public. Record Law, lecOlds
maintaihed by tile Doald are opeh f01 ihspectioh and/ol COpyillg during
nOIlhal business hOUlS at a leasohable. cost fur the c.opying.
P:- Should a Claimaht lequesting an initial or fullllearing deeide to appeal any
decisioll madc by the Doald, wiHI lcspect to ahY mattGl conside.le.d at such
hearing, the Clairllclllt requestillg all initial 01 full healing ~ill heed a rccord
of the proceedings and may need to assure that a verbatlm leeord of the
proceedihg is made. The Claimant lequcsting all initial 01 full healihg will
be responsible. for obtainihg a court repOl te.l or OHle.l w isc lllaking a rccord of
tile p10cccdihgs beforc tllC Doard.
~ Thc decisions ofthc Doa1d aftel the requested full hearing sllall bc final and
bindillg.
R:- Withil1 fifteen (15) days aftcl making a dccision at tile fullllCc1r ihg, tile. Doar d
shall entel a final order setting f01th its findings and c.onclusiollS and a copy
of Hie ordel shall be prOvided to the Claimant.
S: Judicial rev iew of decisions of the Doard shall be. sought by the filihg of a
tilhcly petition fOl writ of eertiorali witll the Ckrk of tile. Cilcuit Court, ill tiIc
applOpliate county.
4:- Conduct oftllc rull IIca1in~.
Page 19
*: TIle Chaillllan shall Plesido OvGl thG healing and shall I ule 011 all evidel1tiary,
plOeedmal, and othel legal questiolls that a11so dming the. hearing. The.
Chaillllan'slUlings shallstalld unless overlUled by a majority onhe TlUste.e.s
plesent. The Chailluan sllall open tIle full healillg by explaining the
plOGedmes to be followed.
B:- The Claimant sllall have the light to be represented by counsel 01 be. sc1f-
le.plesented. The Genoal Counsel shall advisG the Doald.
€:- The. Claimant shall be allowe.d to make an opening statement not to e.xeeed
ten (10) minutes.
B: Te.stimony of witnesses shall be undel oath 01 affiIluation. Depositions and
affidavits shall be admissible.
fr The. Chaillllan, any Tl listee, the Genelal Counsel, the. Claimalit 01 the
Claimant's counsel, upon recognition by the Chaimlan, may dileet questions
to any witnG55 dming tIle proceedings.
F: Dither the Claimant or the Genoal Counsel sllall have the light to plesent
evidence relevant to the issues, to Gross examine witnesses, to impeaGh
witnesses and to 1 espOlld to the ev idenee pr esented.
6: The Claimant shall be pellilitted a dosing algument 110t to e.xceed fifteen (15)
minutes.
H:- The Doard shall delibclate J:l1d make a decision follow illg closillg argunlent
and thereaftcr entcr all Older as Plovided llelcin.
1., The Board shall establish administrative claims procedures to be utilized in
processing written requests ("claims"). on matters which affect the substantial rights of any person
("Claimant"), including Members. Retirees, Beneficiaries, or any person affected by a decision of
the Board.
2. 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 any proceedings provided for in the
Board's claims procedures. The Claimant may request in writing the issuance of subpoenas by the
Board. 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. Additionally, the Secretary shall keep a record of all Members
in such a manner as to show the name, address, date of employment and date of termination of
employment.
SECTION 13. BOARD ATTO&.~EY AND PROFESSIONALS RESERVED.
The Doard lllay employ independent legal Goullscl at the System's expense for the pm poses
contained heloin, together with such other PIOfc.s5ional, tedulieal, 01 othel advisols as the Doard
dGems necessary.
Page 20
SECTION 14. MAXIMUM PENSION.
t: Basic Lihlitation.
Subject to tIle adjustments heleinafter set forth, t1.e 111axihlUll1 alllount of ahllUal
letirement income payable witIllespect to a Membel undel this Syste111shall not exceed $lGO,OOO.
FOl pUlposes of applying thc above limitation, bel1efits payable ill any fo1111 other than
a stlaight Ii&- annuity ~itll no ancillary bCl1efits s1.all be adjustcd, as plovided by Tleasury
Rcgulatiol1s, so that SUdl bel1efits arc the Actuarial Equi valent of a straight lif~ anl1uity. For
pul poses of this Sectiol1, the follow il1g bel1cfits sllalll10t be takcn into account.
ft7 Any ancillary benefit which is hOt directly related to le.tilenlcnt
income benefits,
t27 Any othel benefit not required Ul1del S41S(b)(2) of the Code and
Regulations thercundel to be taken into aceOUl1t fOl pul poses of the
lill1itation of S415(b)(1) of tI.c Code.
2-: Participation in Othel Defil1ed Benefit Plans.
The limitation of this Section with lespcct to any Member ~ho at allY tinle has been
a Me.mbel in any othCl defil1cd benefit plal1 (as defined in S414U) of the Code) maintail1cd by tlle
City shall apply as iftIlc. total benefits payable under all defined benefit plans in w llidl tl.c Member
has beell a 11lembel wele payable, from one plan.
:3: Adiustnlcnts in Limitations.
In the evel1t the McmbCl's letirement benefits become payable befole age G2, tlle
$lGO,OOO lill1itation plesclibed by this Seetiol1 shall be ledueed in accordance ~itll RegulatiOlls
issued by the Secre.tary onhe Tl easury pUlsuant to tIle provisions of S415(b) ofthe Code so tllat such
lill1itation (as so reduced) equals an aunual benefit (begi1l11ing when sudlletilcment ineomc benefit
begins) whie.h is equivalent to a one hundred sixty thousand dollar ($lGO,OOO) a1111ual bGllGfit
beginning at age sixty-two (G2).
The reductions prOvided fOl in thG Plevious t~o paraglaphs shall not be applicable
to plc-re.tilement death be.nefits paid pUlsuant to Se.ction 7.
If tIle Membe.1 '5 retilemellt be.nefit becomes payable aftel age sixty-fi ve (G5), for
pul pose.s of dcte.llnining w hethel this benGfit 111eets tIle limitatiol1 se.t forth in su~sc~t~Ol~ 1 l~cr ~~l,
such benefit shall be. adjusted so that it is actualially e.quivalwt to the benefit begil1lling at age G5.
This adjustmcnt sllall be made ill accOldance with legulations plollmlgated by the Se.c.lctalY oftlle
Tle.asury 01 llis 01 1.0 dde.gate.
4: Less Ulan Ten Yeals ofSe.rvic.e.
The maXiluU1l11 etil C111wt bel1cfits payable unde.r this Seetiol1 to any Me111ber who lias
eOlllpleted le,ss than tell (10) yeals ofClcdited So vic.c with tIIC City s1.all be. tIIG a~l?~~:~ d~tcr~lin~~
ul1der subsection 1 ofthis Scction multiplied by a frac.tion, tIle nUll1elator of~hidl is tI.c.l1Umbel of
the MWlbe.l'S yeals ofCledited SC.l vice and the denominatOl of which is tell (10). TIle reduction
plO v ided fm ih tllis subsection sllalll10t bc applicablc to pi e-I etil G111cnt deaUl benefits paid pUlsuant
to Section 7.
Page 21
57 $10.000 Limit.
Not~itllstalldilig tIle fOlcgoing, tIle letilcment benefit payable ~ith lespeet to a
Membel shall be deemed not to exceed the limitations sct forth in this Section ifthe benefits payable,
with lespeet to such Membel undo this System and under all othel qualified defined benefit pension
plalis to which the City eontr ibutes, do not exceed $10,000 ful the applicable rlali Yeal and fOl any
pI iOl Plan Yeal and tIle City has not at any tinlc maintained a qualified dcfilied contribution plan in
~ hich the Member participated.
6: Reduction ofbcnefits.
Reduction of benefits and/or contributions to all plans, ~hele lequiled, shall be
accomplished by filst leducing the Member's benefit undel any defined bcncfit plans in ~hich
Membel participated, such lcduction to be madc first ~ith respect to the plan in which Membel most
leeently aeelUed benefits and thcleafter in such priOlity as shall be detelmined by the trustees and
the plan administratol of stich other plans, and next, by redticilIg 01 allocating excess fOlfeitmes fol
defined colJtribution plans in which the Menlbcl participated, such reduction to be made filSt ~ith
lespeet to the plan in ~hieh Membel most lecwtly acclUed benefits and tIlcleaftel in such Pliority
as sllall be established by tIle trustees and the plan administratol fOl such other plOvided, ho~cvel,
that necessary leductions may be made in a diffelent mannCl and Pliolity pursuant to thc agleement
ofthc tr tlstees and tIle plali adnlinistratol of all othel plans co"ering such Member.
=J-: Cost-oE-Li v in~ Adiustrilents.
The limitations as stated in Subsections 1,2, and J hClcin shall be adjustcd to thc time
payment of a benefit begins in aecoldance ~ith any eost-oE-li ving adjustments plesClibed by the
Seeretaly of the Tleasury pmsuant to ~415(d) ofthc Code.
8-: Additional Limitation on Pension Denefits.
Not~ithstanding anything helein to the contrary.
-A:: The nOlmal 1 Gtilcmcnt benefit or pension payable to a Retilec who becomes
a Membel of the Systcm and ~ho has not prcviously palticipated ili stlch
System, on or after J auuary 1, 1980, shall not excced 100 pel cent of his Olllel
A v el agc Pilial Compensation. lIo ~ e v el, nothing contailied in this Sectioli
sllall apply to supplclilental letilemcnt benc:.fits 01 to pcnsion ineleases
attributable to eost-oE-living incleases 01 adjustments.
B:- No member ofthe System shall be allowed to lecei ve a letirement benefit 01
pension ~ hich is in part 01 in ~ hole. based upon any sel v ice ~ itIlrespect to
which the Membel is aIr eady 1 ecei v ing, 01 ~ ill r eeei vein the futur e, a
letilcment benefit 01 pension fiom anothel letilcmcnt SyStClIl 01 plan. This
1 estr iction docs not apply to social secur ity benefits 01 fedel al belicfits under
Chaptel G7, Title 10, U.S. Code"
1. Basic Limitation.
Notwithstanding any other provisions of this System to the contrary, the Member
contributions paid to, and retirement benefits paid from. the System shall be limited to such extent
as may be necessary to conform to the requirements of Code Section 415 for a qualified retirement
plan. Before January 1. 1995. a plan member may not receive an annual benefit that exceeds the
limits specified in Code Section 415(b), subject to the applicable adjustments in that section. On and
after January 1. 1995, a plan member may not receive an annual benefit that exceeds the dollar
amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the applicable adjustments
Page 22
in Code Section 41S(b) and subiect to any additional limits that mav be specified in this System. For
purposes of this Section, "limitation year" shall be the calendar year.
2. Adiustments to Basic Limitation for Form of Benefit.
Ifthe form of benefit without regard to any benefit increase feature is not a straight
life annuity, then the Code Section 41S(b) limit applicable at the annuity starting date is reduced to
an actuarially equivalent amount (determined using the assumptions specified in Treasury Regulation
Section 1.415(b )-l( c )(2)(ii)) that takes into account the death benefits under the form of benefit.
J.:. Benefits Not Taken into Account.
For purposes of this Section, the following benefits shall not be taken into account
in applying these limits:
A. Any ancillary benefit which is not directly related to retirement income
benefits:
B. Any other benefit not required under 941S(b )(2) of the Code and Regulations
thereunder to be taken into account for purposes of the limitation of Code
Section 41S(b)(1 ).
4. COLA Effect.
Effective on and after January 1,2003, for purposes of applying the limits under Code
Section 41S(b) (the "Limit"). the following will apply:
A. A Member's applicable limit will be applied to the Member's annual benefit
in the Member's first calendar year of benefit payments without regard to any
automatic cost of living adiustments:
B. thereafter, in any subsequent calendar year, a Member's annual benefit,
including any automatic cost ofliving increases, shall be tested under the then
applicable benefit limit including any adiustment to the Code Section
41S(b)(1)(A) dollar limit under Code Section 415(d), and the regulations
thereunder: but
C. in no event shall a Member's benefit payable under the System in any
calendar year be greater than the limit applicable at the annuity starting date,
as increased in subsequent years pursuant to Code Section 415( d) and the
regulations thereunder.
Unless otherwise specified in the System, for purposes of applying the limits under
Code Section 415(b), a Member's applicable limit will be applied taking into consideration cost of
living increases as required by Section 415(b) of the Code and applicable Treasury Regulations.
~ Other Adiustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty-two (62), the limit prescribed by this Section shall be reduced in
accordance with regulations issued by the Secretary of the Treasury pursuant
to the provisions of Code Section 41S(b) of the Code, so that such limit (as
so reduced) equals an annual straight life benefit (when such retirement
income benefit begins) which is equivalent to a one hundred sixty thousand
dollar ($160,000) annual benefit beginning at age sixty-two (62).
Page 23
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service as a full-time employee of the police or fire department of
the Citv. the adiustments provided for in A. above shall not apply.
C. The reductions provided for in A. above shall not be applicable to pre-
retirement death benefits paid pursuant to Section 7.
D. In the event the Member's retirement benefit becomes payable after age sixty-
five (65), for purposes of determining whether this benefit meets the limit set
forth in subsection 1 herein, such benefit shall be adiusted so that it is
actuarially equivalent to the benefit beginning at age sixty-five (65). This
adiustment shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his or her delegate.
6. Less than Ten (10) 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). The reduction
provided by this subsection cannot reduce the maximum benefit below 10%. The reduction provided
for in this subsection shall not be applicable to pre-retirement death benefits paid pursuant to Section
L
L Participation in Other Defined Benefit Plans.
The limit 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 Code Section 414(i) maintained by the City
shall apply as if the total benefits payable under all City defined benefit plans in which the Member
has been a member were payable from one plan.
~ Ten Thousand Dollar ($10,000) Limit.
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Member shall be deemed not to exceed the limit set forth in this Section ifthe benefits payable, with
respect to such Member under this System and under all other qualified defined benefit pension plans
to which the City contributes. do not exceed ten thousand dollars ($10,000) for the applicable Plan
Year and for any prior Plan Year and the City has not any time maintained a qualified defined
contribution plan in which the Member participated.
9. 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 Board 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 Board and the plan administrator for such other plans provided,
however, that necessary reductions may be made in a different manner and priority pursuant to the
agreement of the Board and the plan administrator of all other plans covering such Member.
Page 24
ill Service Credit Purchase Limits.
A. Effective for permissive service credit contributions made in limitation years
beginning after December 3 L 1997. if a Member makes one or more
contributions to purchase permissive service credit under the System, as
allowed in Section 26 and 27. then the requirements of this Section will be
treated as met only if:
ill the requirements of Code Section 41S(b) are met. determined by
treating the accrued benefit derived from all such contributions as an
annual benefit for purposes of Code Section 415(b), or
ill the requirements of Code Section 41S( c) are met, determined by
treating all such contributions as annual additions for purposes of
Code Section 41S(c).
ill For purposes of applying subparagraph (1), the System will not fail
to meet the reduced limit under Code Section 41S(b )(2)( c) solely by
reason of this subparagraph (3), and for purposes of applying
subparagraph (2) the System will not fail to meet the percentage
limitation under Section 41S( c)(1 )(B) ofthe Code solely by reason of
this subparagraph (3).
B. For purposes of this subsection the term "permissive service credit" means
service credit-
ill recognized by the System for purposes of calculating a Member's
benefit under the plan,
ill which such Member has not received under the plan, and
ill which such Member may receive only bv making a voluntary
additional contribution, in an amount determined under the System,
which does not exceed the amount necessary to fund the benefit
attributable to such service credit.
Effective for permissive service credit contributions made in limitation years
beginning after December 31. 1997. such term may, if otherwise provided by
the System. include service credit for periods for which there is no
performance of service. and, notwithstanding clause B.(2), may include
service credited in order to provide an increased benefit for service credit
which a Member is receiving under the System.
C. For purposes of applying the limits in this subsection 10., only and for no
other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a calendar year. except
as noted below and as permitted by Treasury Regulations Section 1.415( c )-2.
or successor regulations. Unless another definition of compensation that is
permitted by Treasury Regulations Section 1.415( c )-2, or successor
regulation. is specified by the System, compensation will be defined as wages
within the meaning of Code Section 3401(a) and all other payments of
compensation to an employee by an employer for which the employer is
required to furnish the employee a written statement under Code Sections
6041(d), 60Sl(a)(3) and 6052 and will be determined without regard to any
rules under Code Section 3401(a) that limit the remuneration included in
Page 25
wages based on the nature or location of the employment or the services
performed (such as the exception for agricultural labor in Code Section
3401 (a)(2).
ill However. for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
included in compensation but for an election under Code Sections
12S(a). 402(e)(3)' 402(h)(1 )(B). 402(k). or4S7(b). For calendar years
beginning after December 31, 2000, compensation will also include
any elective amounts that are not includible in the gross income ofthe
emp10vee by reason of Code Section 132(f)( 4).
ill For limitation years beginning on and after January L 2007,
compensation for the calendar year will also include compensation
paid by the later of 212 months after an employee's severance from
employment or the end of the calendar year that includes the date of
the employee's severance from employment if:
ill the payment is regular compensation for services during the
employee's regular working hours, or compensation for
services outside the employee's regular working hours (such
as overtime or shift differential), commissions. bonuses or
other similar payments. and. absent a severance from
employment. the payments would have been paid to the
employee while the employee continued in employment with
the employer: or
.Qll the payment is for unused accrued bona fide sick. vacation or
other leave that the employee would have been able to use if
employment had continued.
ill Back pay, within the meaning of Treasury Regulations
Section 1.41S(c)-2(g)(8). shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back
pay represents wages and compensation that would otherwise be
included under this definition.
D. Notwithstanding any other provision of law to the contrary. the Board may
modify a request by a Member to make a contribution to the System if the
amount ofthe contribution would exceed the limits provided in Code Section
415 by using the following methods:
ill If the law requires a lump sum payment for the purchase of service
credit. the Board may establish a periodic payment deduction plan for
the Member to avoid a contribution in excess ofthe limits under Code
Sections 415(c) or 415(n).
ill Ifpayment pursuant to subparagraph (1) will not avoid a contribution
in excess of the limits imposed by Code Section 41S(c), the Board
may either reduce the Member's contribution to an amount within the
limits of that section or refuse the Member's contribution.
lL Additional Limitation on Pension Benefits.
Notwithstanding anything herein to the contrary:
Page 26
A. The normal retirement benefit or pension payable to a Retiree who becomes
a Member of the System and who has not previously participated in such
System, on or after January L 1980, shall not exceed one hundred percent
(100%) of his or her 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 ofthe System 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 a different employer's 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. MINIMUM DISTRIBUTION OF BENEFITS.
1. General Rules.
A. Effective Date. Effective as of January 1, 1989, the Plan will pay all benefits
in accordance with a good faith interpretation of the requirements of Code
Section 401(a)(9) and the regulations in effect under that section, as
applicable to a governmental plan within the meaning of Code Section
414(d). Effective on and after January L 2003. the Plan is also subiect to the
specific provisions contained in this Section. The provisions of this Section
will apply for purposes of determining required minimum distributions for
calendar years beginning with the 2003 calendar year.
B. Precedence. The requirements ofthis Section will take precedence over any
inconsistent provisions of the Plan.
€: Requirements of Treasury Regulatiolls Incorporated. All distlibutions
requiled under this Section will be deteuuined and made in aeeordalIec witII
the Treasury 1 Ggulations undel Section 401 (a)(9) of the Code.
&
c.
TEFRA Section 242(b )(2) Elections. Notwithstanding the other provisions
ofthis Section other than this subsection 1.&C., distributions may be made
under a designation made before January 1, 1984, in accordance with Section
242(b )(2) ofthe Tax Equity and Fiscal Responsibility Act (TEFRA) and the
provisions of the plan that related to Section 242(b)(2) ofTEFRA.
2. Time and Manner of Distribution.
A. Required Beginning Date. The Member's entire interest will be distributed,
or begin to be distributed, to the Member no later than the Member's required
beginning date which shall not be later than April 1 of the calendar year
following the later of the calendar year in which the Member attains age
seventy and one-half (70 Y2) or the calendar year in which the Member retires
unless other wise plovidcd Em in tIle Plan 01 lequiled by law terminates
employment with the City.
B. Death of Member Before Distributions Begin. If the Member dies before
distributions begin, the Member's entire interest will be distributed, or begin
to be distributed no later than as follows:
Page 27
€-:
D.
(1) If the Member's surviving spouse is the Member's sole designated
beneficiary, then distributions to the surviving spouse will begin by
December 31 ofthe calendar year immediately following the calendar
year in which the Member died, or by a date on or before December
31 ofthe calendar year in which the Member would have attained age
70 ~, if later, as the surviving spouse elects.
(2) Ifthe Member's surviving spouse is not the Member's sole designated
beneficiary, then, distributions to the designated beneficiary will
begin by December 31 ofthe calendar year immediately following the
calendar year in which the Member died.
(3) If there is no designated beneficiary as of September 30 of the year
following the year ofthe Member's death, the Member's entire interest
will be distributed by December 31 of the calendar year containing
the fifth anniversary of the Member's death.
(4) If the Member's surviving spouse is the Member's sole designated
beneficiary and the surviving spouse dies after the Member but before
distributions to the surviving spouse begin, this subsection 2.B., other
than subsection 2.B.(1), will apply as ifthe surviving spouse were the
Member.
For purposes of this subsection 2.B. and subsection 5., distributions
are considered to begin on the Member's required beginning date or,
if subsection 2.B.( 4) applies, the date of distributions are required to
begin to the surviving spouse under subsection 2.B.(1). If annuity
payments irrevocably commence to the Member before the Member's
required beginning date (or to the Member's surviving spouse before
the date distributions are required to begin to the surviving spouse
under subsection 2.B.(1)), the date distributions are considered to
begin is the date distributions actually commence.
c.
Form of Distribution. Unless the Member's interest is distributed in the form
of an annuity purchased from an insurance company or in a single sum on or
before the required beginning date, as of the first distribution calendar year
distributions will be made in accordance ofsubsoctiol1s J, 4 and 5 of with this
Section. If the Member's interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made
in accordance with the requirements of Section 401(a)(9) of the Code and
Treasury regulations. Any part ofthe Member's interest which is in the form
of an individual account described in Section 414(k) of the Code will be
distributed in a manner satisfying the requirements of Section 401 (a)(9) ofthe
Code and Treasury regulations that apply to individual accounts.
Page 28
3. Determination of Amount to be Distributed Each Year.
A. General Annuity Requirements. rfthe Member's interest is paid in the form
of annuity distributions under the Plan, payments under the annuity will
satisfy the following requirements:
(1) The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
(2) Thc distlibution period will be Ovel a life (or lives) 01 OvGl a peliod
certain not longel than thc period dcseribed in subsection 4 01 5. The
Member's entire interest must be distributed pursuant to Section 6,
Section 7. Section 8, or Section 9 (as applicable) and in any event
over a period equal to or less than the Member's life or the lives ofthe
Member and a designated beneficiary, or over a period not extending
beyond the life expectancy of the Member or of the Member and a
designated beneficiary. The life expectancy of the Member, the
Member's spouse. or the Member's beneficiary may not be
recalculated after the initial determination for purposes of
determining benefits.
ffl Once payments ha v c begun 0 vel a per iod certain, tIle per iod certain
will not be changed even if the period eeltain is shortel than the
maximum pelmitted.
t4J Payments will eithel be nonincleasing or increase only as fullows.
W By an annual percentage increase that docs hot exceed tIle
cumulative an:hual peleel1tagc increase in a eost-of-living
index that is based on Plices of all items and issued by the
Burcau of Labol Statistics 01 b)' a fixed annual inclease of
five perccnt 01 less.
W To tIle extel1t oftIlc leduetion in tIlC alllouht o[the MClIlbCl'S
payments to provide fO! a survivol benefit upon death, but
anI)' ifthe beneficiary whose life was being used to detennine
the distribution period described in subsection 4 dies or is no
longel the Mel1'1bel'S beneficiary ptllsuant to a qualified
domestic lelations OldcI within thc mcaning of Section
414(p).
te1 To plovide caslllcfunds of Accunmlatcd Contributions upon
the Mehlber's death.
td} To pay inclcased benefits that lesult fionl a Plan a1l1Chdnlent.
B. Amount Required to be Distributed by Required Beginning Date. The
amount that must be distributed on or before the Member's required
beginning date (or, if the Member dies before distributions begin, the date
distributions are required to begin under subscction 2.D. Section 7.) is the
payment that is required for one payment interval. The second payment need
not be made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods for
which payments are received, e.g., bi-monthly, monthly, sCl'ni-annually, 01
annually. All ofthe Member's benefit accruals as of the last day of the first
Page 29
distribution calendar year will be included in the calculation of the amount
of the annuity payments for payment intervals ending on or after the
Member's required beginning date.
C. Additional Accruals After First Distribution Calendar Year. Any additional
benefits accruing to the Member in a calendar year after the first distribution
calendar year will be distributed beginning with the first payment interval
ending in the calendar year immediately following the calendar year in which
such amount accrues.
<t.- Require.mwts fO! Annuity Dishibutions That Comnlcnce. DUling a MGI11be.I'S
LifetilllC.
-it:: Joint Life. Alllluities Wllel e. tIle De.nefieial y 15 Not tIle Mel11be.l'S Spouse. If
the. Menlber's inte.l cst is be.ing dish ibuted in tIle folm of a jOillt and SUI vi vor
annuity fO! tIle joint lives of tIle Member and a llonspouse beneficia1y,
annuity payments to be made on or afte.l the Melllbel's 1 equil cd begill11ing
date to thc designate.d behefieial y after the McmbCl's deatIl must hot at any
tillle e.xeeed tIle applicable. pelcentage of11le annuity payment fOl sudl pe.riod
that would have bcen payable. to the Meh1bel using tIle table sc.1 fortll ill
Q&A-2 of Section 1.401 (a)(9)-GT oEthe Treasury le.gulatiolls. lEthe fOl111 of
dishibntion cOlllbines ajoill1 and SUI vivO! a1111uity fol the. joint lives of the
Me.mbe.1 and a 1l01lSpouse. bClleficiary and a pe.l iod e.e.rtail1 alll1uity, the
lequiremcnts in thc ple.cedillg se.ntence will apply to ammity paymehts to be.
lJ1ade to the designated belleficialy after the expiration of the period ce.r tain.
B: re.l iod Certaill Anlluitios. UnIGss tho Mell1bCl 's spouse is the sole designate.d
be.ncficiary and the. folm of distribution is a peliod eCl tain and no life. annuity,
the. peliod ce.ltain fol an annuity distribution commencillg dUling the.
Membel's lifetime may not e.xeeed the. applicable distr ibutioll pel iod for the.
Member unde.l the. Unifolm Lifetime Table. se.t forth in Section 1.401 (a)(9)-9
of the. Tre.asUly le.gulations for the calendar yeal that cO!ltains the annuity
starting date.. If the annuity starting datc pr e.ce.des tIle ye.al ill w llieh tIle.
Me.mbelleaehes age 70, tIle appliutble. dishibution period fol the. Membe.r is
the distribution pe.liod for age 70 undcI the Unifo1l11 Lifetinle. Tablc se.t forth
ill Se.etion 1.401 (a)(9)-9 of the Tr easul)' legulations plus tIle e.xcess of 70
Ovel tIle age of the Melllbe.r as of tIle Membel's birthday in tIle. yeal that
contains tIle annuity starting date. If the M"mber's spouse is the. Me.mbe.l's
sole. designated beneficiary and the folm of dish ibution is a pel iod certain
and no life a1111uity, the. peliod certain may not e.xeeed tl.c longe.r of the
Member's applieable distr ibution pel iod, as detel mined ullde.r this subse.ction
4.D., 01 the joint life and last SUI v i v or e.xpeetancy of tIle MG1l1bGl and tIle.
Me.mber's spouse as dcter1l1ined tlllder the Joint and Last StlIvivor Table se.t
forth in SeGtion lAO 1 (a)(9)-9 ofthe. Tle.asU1Y regulatiohs, using the. Mell1bCl '5
and spouse.'s attailled ages as of the MembCl's and spouse.'s birtbdays in tIle.
eale.ndal ye.al that contains the. annuity statting date..
5: Re.quitwle.htS for Minimum Dishibutiol1s 'vVhe.le. Menlbel Dies Ddore Date.
Dist1ibutiohs Degin.
-it:: MWlbe1 SUI vive.d by Designated Dwefieia1y. Ifthe MembCl dies before the
date dishibution of his 01 hel intelest begins and the.re. is a desig,llate.d
bwcfieial)', the Member's entire inte1 cst w ill be. dish ibute.d, begil1nil1g no
lat"l tIlan tho time desel ibed in subsection 2.D.(1) 01 2.D .(2), 0 v 01 tIle. life of
the de.signated bellefieial y 01 0 v el a per iod ce.rtain not e.xee.e.dihg.
Page 30
ft1 Unle,ss the annuity starting date is befole tlle filSt distlibution
eale,ndal yeal, the life expectancy of the desigliated belieficiary
detelhlincd USilig the beneficiary's age as oftlle beneficiary's bil thday
in the calehdal yeal imlliediatcly follo~ing the calendal yeal oftk
Mellibel's death.
t21 If tlle all1iuity stal ting date is berol c tlle filst dish ibution ealendal
yeal, the liE" expc.ctancy of the dcsignated belieficiary detel mined
using the beneficiary's ag" as of tlle beneficiary's bil thday in the
calendal yeal the cOlltailis tlle annuity starting date.
-& No desie.nated Deneficiary. Iftlle MW1bel dics berole the date dishibutions
begin and thelc is no designated beheficiaryas of Septcmbel JO of tlle yeal
folIo ~ ing tlle yeal ofthe Membcl 's death, dish ibutioh ofthe Mcnlbel 's entil e
intelest ~ ill be eonlplctcd by Dcecmbel J 1 of the eale,ndal yea! eontaihihg
the fiftll all11iVelsary of the MCIIlbel's death.
€: Death of SUi v i v inl:!: Spouse Defole Distributions to SUi v i v ine. Spouse Dee.in.
If the Menlbel dies befolc. the date distIibution of llis intclest begins, tlle
Mell1bGl '5 SUI viving spouse is the Membcl's sole, designated bChcficiary, and
the SUI v i v ing spouse dies befOl e distIibutions to the SUI v i v ing spouse begili,
this subscction 5 w ill apply as if the SUI v i v ing spouse ~ el e tllC MelllbGl,
except that tlle till1e by ~ hich distl ibutions must begin ~ ill be dctenl1ined
without legald to subsection2.D.(1).
4. General Distribution Rules.
A. The amount of an annuity paid to a Member's beneficiary may not exceed the
maximum determined under the incidental death benefit requirement of Code
Section 401(a)(9)(G), and effective for any annuity commencing on or after
January 1. 2008. the minimum distribution incidental benefit rule under
Treasury Regulation Section 1.401(a)(9)-6, O&A-2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasury
Regulation Section 1.401-1 (b )(1)(1) or any successor regulation thereto. As
a result. the total death or disability benefits payable may not exceed 25% of
the cost for all ofthe Members' benefits received from the retirement system.
6:
~
Definitions.
A. Designated Beneficiary. The individual who is designated as the beneficiary
under the Plan and is the designated beneficiary under Section 40l(a)(9) of the
Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
B. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Member's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Member's required beginning
date. For distributions beginning after the Member's death, the first
distribution calendar year is the calendar year in which distributions are
required to begin pursuant to subscction 2.D Section 7.
Page 31
1-- --
€: Life Expectancy. Life expedalle}' as computed by use of the Single Life
Table in Section 1.401(.1)(9)-9 oftlle TreasUly regulations.
IT. Required Deginning Date. The date specified ill subsection 2.A.
SECTION 16. MISCELLANEOUS PROVISIONS.
1. Interest of Members in System.
All assets of the Fund are held in trust. and i!t no time prior to the satisfaction of all
liabilities under the System with respect to Retirees and Members and their Spouses or Beneficiaries,
shall any part of the corpus or income ofthe Fund be used for or diverted to any purpose other than
for their exclusive benefit.
2. No Reduction of Accrued Benefits.
No amendment or ordinance shall be adopted by the City Commission ofthe City of
Ocoee which shall have the effect of reducing the then vested accrued benefits of Members or a
Member's Beneficiaries.
3. Qualification of System.
It is intended that the System will constitute a qualified public pension plan under the
applicable provisions ofthe Code for a qualified plan under Code Section 401 (a) and a governmental
plan under Code Section 414(d), as now in effect or hereafter amended. Any modification or
amendment of the System may be made retroactively, if necessary or appropriate, to qualify or
maintain the System as a Plan meeting the requirements ofthe applicable provisions ofthe Code as
now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws,
as now in effect or hereafter amended or adopted, and the regulations issued thereunder.
4. Use of Forfeitures.
Forfeitures arising from terminations of service of Members shall serve only to reduce
future City contributions.
~ Prohibited Transactions.
Effective as ofJanuary L 1989, a Board may not engage in a transaction prohibited
by Code Section S03(b).
6. USERRA.
Effective December 12. 1994, notwithstanding any other provision of this System,
contributions, benefits and service credit with respect to qualified military service are governed by
Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act of
1994, as amended. To the extent that the definition of "Credited Service" sets forth contribution
requirements that are more favorable to the Member than the minimum compliance requirements,
the more favorable provisions shall apply.
7. Vesting.
A. Member will be 100% vested in all benefits upon attainment of the Plan's
age and service requirements for the Plan's normal retirement benefit: and
Page 32
B. A Member will be 100% vested in all accrued benefits. to the extent funded,
if the Plan is terminated or experiences a complete discontinuance of
employer contributions.
~ Electronic Forms.
In those circumstances where a written election or consent is not required by the Plan
or the Code, an oraL electronic, or telephonic form in lieu of or in addition to a written form mav be
prescribed by the Board. However. where applicable. the Board shall comply with Treas. Reg. &
1.401 (a)-21.
SECTION 17. REPEAL OR TERMINATION 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 hereunder, 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. Ifthis 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 ofthe 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 ofthe
System as ofthe date of repeal ofthis Ordinance, or if contributions to the System are discontinued
with the date of such discontinuation being determined by the Board.
A. Apportionment shall first be made in respect of each Retiree receiving a
retirement benefit hereunder on such date, each person receiving a benefit on
such date on account of a retired (but since deceased) Member, and each
Member 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, provided that, if such asset value be less than the aggregate of such
amounts, such amounts shall be proportionately reduced so that the aggregate
of such reduced amounts will be equal to such asset value.
B. Ifthere be any asset value remaining after the apportionment under paragraph
A, apportionment shall next be made in respect of each Member in the
service of the City on such date who is vested and who is not entitled to an
apportionment under paragraph A, in the amount required to provide the
Actuarial Equivalent of the vested portion of the accrued normal retirement
benefit (but not less than Accumulated Contributions), based on the Credited
Service and Average Final Compensation 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 vested portion of the accrued normal retirement
benefit (but not less than Accumulated Contributions), 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
Page 33
aggregate of such reduced amounts will be equal to such remaining asset
value.
C. If there be any asset value after the apportionments under paragraphs A and
B, apportionment shall be made in respect of each Member 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.
D. 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
Member included in paragraph C above to the extent of the Actuarial
Equivalent of the non-vested accrued normal retirement benefit, less the
amount apportioned in paragraph C, based on the Credited Service and
Average Final Compensation as of such date, provided that, if such remaining
asset value be less than the aggregate ofthe amounts apportioned hereunder,
such amounts shall be reduced so that the aggregate of such reduced amounts
will be equal to such remaining asset value.
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 proportionately 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 Fund may be continued in existence for purposes of subsequent
distributions.
If, at any time dUling the first tGn (10) years afto thG dfGGtivG datG oftIlc OldinancG
01 iginally Gstablishing this SystGm, thG System shall bG tGllllinated 01 the full CUll ent costs of the
SYStGlll shall not have been met, anything in the SYStG111 to tile contiary notwitIlstanding, City
eonhibutions which may be used EO! the bendit of anyone of the t~enty-five (25) higllest paid
Members on the dfccti ve date, ~hose anticipated anl1ualretircmGnt allo~ance providGd by tIle City's
eonhibutions at Me111bcr 's nonnalrGtirelnwt datG would excced $1,500, shall not exeeed thc gleater
of either a) $20,000, 01 b), an amount computed by multiplying the smallel of $1 0,000 01 twcnty
pGleent (20%) of such Member's average arulUal earnings duril1g his 01 IlG! last five (5) YGars of
ser v ice by the nUlubcl of yealS of sel v ice sincc the cffcGti ve date. hI tIle c'Vellt that it shall hcr eafto
be detelmined by statute, COul t decision, 1 tiling by the Commissioner of hltelnal Revenue, or
othCl wise, that tIle provisions of this palagraph alG not then nGcessary to qualify the System undGl
the Code, this pal agraph shall bG indfccti v c without the necessity of further anlel1dmwt of this
01 dinance.
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 funds revert to the
general fund of the City.
Page 34
SECTION 18. DOMESTIC RELATIONS ORDERS: RETIREE DIRECTED
PAYMENTS EXEMPTION FROM EXECUTION. NON-ASSIGNABILITY.
L Domestic Relations Orders.
A. Prior to the entry of any domestic relations order which affects or purports to
affect the System's responsibility in connection with the payment of benefits
of a Retiree. the Member or Retiree shall submit the proposed order to the
Board for review to determine whether the System may legallv honor the
order.
B. If a domestic relations order is not submitted to the Board for review prior to
entry of the order. and the Svstem is ordered to take action that it may not
legally take. and the System expends administrative or legal fees in resolving
the matter. the Member or Retiree who submits such an order will be required
to reimburse the System for its expenses in connection with the order.
2. Retiree Directed Payments.
The Board may. upon written request by a Retiree or by a dependent. when authorized
by a Retiree or the Retiree's Beneficiary. authorize the System to withhold from the monthly
retirement payment those funds that are necessary to pay for the benefits being received through the
City. to pay the certified bargaining agent ofthe City. to make payment to insurance companies for
insurance premiums and to make any payments for child support or alimony.
1:. Exemption from Execution. Non-Assignability.
Except as otherwise provided by law, the pensions, annuities, or any other benefits
accrued or accruing to any person under the provisions of this ordinance and the Accumulated
Contributions and the cash securities in the Fund created under this ordinance are hereby exempted
from any state, county or municipal tax ofthe state and shall not be subject to execution, attachment,
garnishment or any legal process whatsoever and shall be unassignable.
SECTION 19. PENSION VALIDITY.
The Board 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. The Board is empowered to purge the
pension rolls or correct the pension amount of any person heretofore granted a pension under prior
or existing law or any person hereafter granted a pension 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 prior or existing law been or who shall hereafter under this ordinance be erroneously,
improperly or illegally classified. Any overpayments or under payments shall be corrected and paid
or repaid in a reasonable manner determined by the Board.
SECTION 20. FORFEITURE OF PENSION.
1. Any Member who is convicted of the following offenses committed prior to
retirement, or whose employment is terminated by reason of his or her 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 or her Accumulated Contributions as of the date of termination.
Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
Page 35
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~
F. 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 or she
acts or in which he or she is employed, of the right to receive the faithful
performance of his or her duty as a public officer or employee, realizes or
obtains or attempts to obtain a profit, gain, or advantage for himself or herself
or for some other person through the use or attempted use of the power,
rights, privileges, duties or position of his or her public office or employment
position: or
G. The committing on or after October 1. 2008. of any felony defined in Section
800.04. Florida Statutes. against a victim younger than sixteen (16) years of
age. or any felony defined in Chapter 794. Florida Statutes. against a victim
younger than eighteen (18) years of age. by a public officer or employee
through the use or attempted use of power. rights. privileges. duties. or
position of his or her public office or employment position.
2. Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; ajury verdict of guilty when adjudication of guilt
is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable
offense.
3. Court shall be defined as 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 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 or her case against forfeiture.
4. Any Member who has received benefits from the System in excess of his or her
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 or her Accumulated Contributions. The
Board may implement all legal action necessary to recover such funds.
SECTION 21. INDEMNIFICATION.
1. To the extent not covered by insurance contracts in force from time to time, the City
shall indemnify, defend and hold harmless members of the Board 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 oftheir official duty as members ofthe Board. 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 adverse judgment or ruling, and in either event will indemnify, defend and
hold harmless any members of the Board 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 judgment or claim, from any liability,
Page 36
nor does this Section waive any provision oflaw 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 ofthe Board which constitute felonies
or gross malfeasance or gross misfeasance in office.
SECTION 22. FAMILY AND MEDICAL LEAVE ACT.
The fractional parts ofthe twenty- four (24) month period ending each March 1 that a Member
is on leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA) shall
be added to his or her Credited Service provided that:
1. The Member contributes to the Fund the sum that he or she would have contributed,
based on his or her Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he or she been a Member of the System for the fractional parts of the
twenty-four (24) months ending each March 1 for which he or she 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 periods of Credited Service.
2. The request for Credited Service for FMLA leave time for the twenty- four (24) month
period prior to each March 1 and payment of professional fees shall be made on or before March 31.
3. Payment by the Member of the required amount shall be made on or before April 30
for the preceding twenty-four (24) month period ending March 1 and shall be made in one lump sum
payment upon receipt of which Credited Service shall be issued.
4. Credited Service purchased pursuant to this section shall not count toward vesting.
SECTION 23. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS: ELIMINATION OF MANDATORY DISTRIBUTIONS.
1. Rollover Distributions.
A. General.
This Section applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the System to the contrary that would
otherwise limit a distributee's election under this Section, a distributee may
elect, at the time and in the manner prescribed by the Board, to have any
portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
B. Definitions.
(1) Eligible Rollover Distribution: An eligible rollover distribution is any
distribution of all or any portion ofthe balance to the credit ofthe distributee,
except that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and
the distributee's designated Beneficiary, or for a specified period often years
or more; any distribution to the extent such distribution is required under
section 401 (a)(9) of the Code; and the portion of any distribution that is not
Page 37
includible in gross income. Effective January L 2002. .1!ny portion of any
distribution which would be includible in gross income will be an eligible
rollover distribution if the distribution is made to an individual retirement
account described in section 408(a)~ to an individual retirement annuity
described in section 408(b)~ or to a qualified defined contribution plan
described in section 401(a) or 403(a) that agrees to separately account for
amounts so transferred (and earnings thereon), including separately
accounting for the portion of such distribution which is includibe in gross
income and the portion of such distribution which is includible in glOSS
inconlG and thc portion of such distribution which is not so includible : or on
or after J anuarv 1. 2007. to a qualified defined benefit plan described in Code
Section 401(a) or to an annuity contract described in Code Section 403(b).
that agrees to separately account for amounts so transferred (and earnings
thereon). including separately accounting for the portion of the distribution
that is includible in gross income and the portion ofthe distribution that is not
so includible. .
(2) Eligible Retirement Plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the Code~ an individual
retirement annuity described in section 408(b) ofthe Code~ an annuity plan
described in section 403(a) of the Code~ effective January 1. 2002. an
eligible deferred compensation plan described in section 457(b) of the Code
which is maintained by an eligible employer described in section
457(e)(I)(A) ofthe Code and which agrees to separately account for amounts
transferred into such plan from this plan~ Effective January 1. 2002. an
annuity contract described in section 403(b) of the Code~ or a qualified trust
described in section 401(a) of the Code: or effective January L 2008. a Roth
IRA described in Section 408A of the Code, that accepts the distributee's
eligible rollover distribution. This definition shall also apply in the case of
an eligible rollover distribution to the surviving Spouse.
(3) Distributee: A distributee includes an employee or former employee. In
addition, It also includes the employee's or former employee's surviving
~pouse is a dishibutGC with lcgard to the intGlcst of the Spouse and the
employees' or former employee's spouse or former spouse. Effective January
1. 2007. it further includes a nonspouse beneficiary who is a designated
beneficiarv as defined by Code Section 401 (a)(9)(E). However. a nonspouse
beneficiary may rollover the distribution only to an individual retirement
account or individual retirement annuity established for the purpose of
receiving the distribution and the account or annuity will be treated as an
"inherited" individual retirement account or annuity.
(4) Direct Rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund.
On or after January 1, 2002, the System will accept, solely for the purpose of
purchasing Credited Service as provided herein, permissible Member requested transfers of funds
from other retirement or pension plans, Member rollover cash contributions and/or direct cash
rollovers of distributions made on or after January 1,2002, as follows:
A. Transfers and Direct Rollovers or Member Rollover Contributions from
Other Plans. The System will accept either a direct rollover of an eligible
rollover distribution or a Member contribution of an eligible rollover
distribution from a qualified plan described in section 401 (a) or 403(a) ofthe
Code, from an annuity contract described in section 403(b) of the Code or
Page 38
from an eligible plan under section 457(b) of the Code which is maintained
by a state, political subdivision of a state, or any agency or instrumentality of
a state or political subdivision of a state. The System will also accept legally
permissible Member requested transfers of funds from other retirement or
pension plans.
B. Member Rollover Contributions from IRAs. The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408( a) or 408(b)
of the Code that is eligible to be rolled over al1d would otIler wise, be
includible ill glOSS inGomc.
3. Elimination of Mandatory Distributions.
Notwithstanding any other provision herein to the contrary, in the event this Plan
provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by law,
for an amount in excess of one-thousand dollars ($1,000.00), such distribution shall be made from
the Plan only upon written request of the Member and completion by the Member of a written
election on forms designated by the Board, to either receive a cash lump sum or to rollover the lump
sum amount.
SECTION 24. SEPARATION FROM EMPLOYMENT FOR MILITARY
SERYICE REEMPLOYMENT AFTER RETIREMENT.
TIle yGalS 01 pal ts of a ycal that a Membel ser ves in the military ser vicG of the Anlle,d POlees
of the, Unitcd States, the United States Melchallt Maline 01 the Ullited States Coast Guald,
voluntalily 01 in volulltar ill', after se,paration flom enlploynlcnt as a Genelal Employee, with the, City
to pe,lfolm tlaining or Se,l vice" and le,employmwt 011 01 after Dece,lllber 12, 1994, sllall be adde,d to
his 01 her ye,als ofCle:.dited Se,lviee, fOl all purpose,s, induding ve,sting, plovided tIlat.
-It Tile Gellelal Employe,e must rctml1 to his 01 hGl GlllploymGllt as a Gwe,lal ElJ1ploYGe
within one, (1) yeal fiom the earlie,r of the, date:. of his 01 hel1l1ilitalY disdlalge 01 his
or he,l Ide,ase, from sel vice.
&- The Gwoal Employce deposits ilJto the, PU11d the same:. sum tIlat the Membel would
have contributed ifhe 01 she, had remailledaGe.nelaIEmploye.e.dming his or hel
abswce,. The Gene,lal Employee must deposit all missed contributions within a
period equal to thrce (3) tillles the peliod ofl1lilitary Se,l vice, but not more, than five
(5) ye,als 01 he, 01 she:. ~ ill fur fcit the, 1 igllt to 1 e,cei v e, Cr e,ditcd Sel v ie,e fOl his 01 hel
military Se:.l v ice, pmsuant to this Section.
€: The maximunl credit ful IJIilitary Se,l vice pUlsuallt to this section shall be, fi ve (5)
years:-
9: hl Older to qualify [01 the pmdIase, ofCledited Se,l vie:.e:. pursuant to this Section, tIle
Ge,llelal Employee, must have beelJ dischargcd or lele:.ased [10111 service, ul1del
h0l101 able:. conditiolls.
fr This Se,ction is intended to meGt 01 e:.xcee,d the minilJ'1Um requile,mcnts of the
UlJifolllle,d Sel vice,s Employme:.nt and Re,wlploytl1Gl1t Rights Act (USE~~), (P.L.
103-353). To the e:.xte:.l1t that tIlis Section docs not meet tIle, lJ1inillluIll stal1dalds of
USERRA, as it may be ame,nde,d fr0111 tinle to time, the:. mil1illlU111 standalds sltall
apply:
L Any Retiree who is retired under this System. except for disability retirement as
previously provided for. may be reemployed by any public or private employer. except the City. and
may receive compensation from that employment without limiting or restricting in any way the
Page 39
retirement benefits payable under this system. Reemployment by the City shall be subiect to the
limitations set forth in this Section.
2. After normal retirement. Any retiree who is retired under normal retirement pursuant
to this system and who is reemployed by the city in any capacity. shall upon being reemployed.
continue receipt of retirement benefits during any such employment period. A retiree who returns
to work under the provisions ofthis section shall not be eligible for membership in this system. and.
therefore. shall not accumulate additional credited service for subsequent periods of employment
described in this section. shall not be required to make contributions to the system. nor shall he or
she be eligible for any other benefit other than the retiree's normal retirement benefit.
1:. Any Retiree who is retired under normal retirement pursuant to this System and who
is reemployed by the City after that retirement and. by virtue of that reemployment is ineligible to
participate in this System. shall. during the period of such reemployment. continue to receive
retirement benefits previously earned. Former DROP participants shall begin receipt of benefits
under these circumstances.
4. After early retirement. Any Retiree who is retired under early retirement pursuant
to this System and who subsequently becomes an employee of the City in any capacity. shall
discontinue receipt of benefits from the System until the earlier of termination of employment or
such time as the reemployed Retiree reaches the date that he or she would have been eligible for
normal retirement under this system had he or she continued employment and not elected early
retirement. "Normal retirement" as used in this subsection shall be the current normal retirement
date provided for under this System. A Retiree who returns to work under the provisions of this
Section shall not be eligible for membership in the System. and. therefore. shall not accumulate
additional Credited Service for subsequent periods of employment described in this section. shall
not be required to make contributions to the system. nor shall he or she be eligible for any other
benefit other than the Retiree's early retirement benefit when he or she again becomes eligible as
provided herein. Retirement pursuant to an early retirement incentive program shall be deemed early
retirement for purposes ofthis Section ifthe Member was permitted to retire prior to the customary
retirement date provided for in the System at the time of retirement.
~ Reemployment ofterminated vested persons. Reemployed terminated vested persons
shall not be subiect to the provisions ofthis section until such time as they begin to actually receive
benefits. Upon receipt of benefits. terminated vested persons shall be treated as normal or early
Retirees for purposes of applying the provisions of this section and their status as an early or normal
retiree shall be determined by the date they elect to begin to receive their benefit.
6. DROP Participants. Members or retirees who are or were in the Deferred Retirement
Option Plan shall. following termmation of employment after DROP participation. have the options
provided for in this section for reemployment.
SECTION 25. DEFERRED RETIREMENT OPTION PLAN.
I. 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.
2. Participation.
A. Eligibility to Participate.
Page 40
In lieu of terminating his or her 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.
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 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 or her permissible period of participation in the
DROP as determined under subsection 2.C.; or
(b) termination of his or her 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 or her DROP Account. Any amounts remaining in his or her
DROP Account shall be paid to him or her in accordance with the
provisions of subsection 4. when he or she terminates his or her
employment as a General Employee.
(3) A Member who terminate~ his or her 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.
(I) A Member's Credited Service and his or her accrued benefit under the
System shall be determined on the date his or her election to
participate in the DROP first becomes effective. For purposes of
determining the accrued benefit. the Member's Salary for the purposes
of calculating his or her Average Final Compensation shall include an
amount equal to any lump sum payments which would have been paid
to the Member and included as Salary as defined herein. had the
Member retired under normal retirement and not elected DROP
participation. Member contributions attributable to any lump sums
used in the benefit calculation and not actually received by the
Member shall be deducted from the first payments to the Member's
DROP Account. The Member shall not accme any additional
Page 41
Credited Service or any additional benefits under the System (except
for any additional benefits provided under any cost-of-living
adjustment for Retirees in the System) while he or she is a participant
in the DROP. After a Member commences participation, he or she
shall not be permitted to again contribute to the System nor shall he
or she be eligible for disability or pre-retirement death benefits~
except as provided for in Section 24. Reemployment After
Retirement.
(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 or her employment as a General
Employee, no amounts shall be paid to him or her from the System
until he or she terminates his or her 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 or her
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 System.
(1) As of the first day of each month of a Member's period of
participation in the DROP, the monthly retirement benefit he or she
would have received under the System had he or she terminated his
or her employment as a General Employee and elected to receive
monthly benefit payments thereunder shall be transferred to his or her
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 or she
terminates his or her employment as a General Employee.
(2) Except as otherwise provided in subsection 2.D.(2), a Member's
DROP Account under this subsection 3 .B. shall be debited or credited
after each fiscal year quarter with either:
(a) Interest at an effective rate of six and one-halfpercent (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
Page 42
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 or her account to be
determined as provided above. The Member may, in writing, elect to
change his or her election only once during his or her 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 fails to terminate employment after
participating in the DROP the permissible period of DROP
participation, then beginning with the Member's 1 st month of
employment following the last month of the permissible period of
DROP participation, whichevcl occms first, the Member's DROP
Account will no longer be credited or debited with earnings or
interest, nor will monthly benefits be transferred to the DROP
account. All such non-transferred amounts shall be forfeited and
continue to be forfeited while the Member is employed by the City~
and not cost-of-living adiustments shall be applied to the Member's
credit during such period of continued employment. 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 or she accrue additional Credited
Service. except as provided for Section 24. Reemployment After
Retirement.
4. Distribution of DROP Accounts on Termination of Employment.
A. Eligibility for Benefits.
A Member shall receive the balance in his or her DROP Account in
accordance with the provisions of this subsection 4. upon his or her
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 or her termination of employment as a General Employee.
B. Form of Distribution.
(1) Unless the Member elects otherwise, distribution of his or her DROP
Account shall be made in a cash lump sum, subject to the direct
rollover provisions set forth in subsection 4.F. A Membel may,
howe'Vcl, dect, in SUGh tillle and maUllel as the Doald sllall plesoibe,
that his DROP dish ibution be used to pmcllaSG a nOl1fm feitable fixcd
annuity payable in snell form as the MGmber 111ay dect. Elections
under this paragraph shall be in writing and shall be made in such
time or manner as the Board shall determine.
Page 43
(2) If a Member dies before his or her benefit is paid, his DROP Account
shall be paid to his Beneficiary in such optional form as his or her
Beneficiary may select. If no Beneficiary designation is made, the
DROP Account shall be distributed to the Member's estate.
C. Date of Payment of Distribution.
Except as otherwise provided in this subsection 4., distribution 0 fa 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, helein
ineOl por ated by 1 del enee.
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
ofthe Board may appoint from their number such subcommittees with such
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 ofthe 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.
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B. Individual Accounts. Records and Reports.
The Board shall maintain, 01 GausG to be nlaintained, 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, 01 Gause 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 GaUSG to be prGpared 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
Doald shall also Ovelsce thG investnlent of the DROP'S assGts.
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.
6. General Provisions.
A. Amendment of DROP.
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.
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B. Facility of Payment.
If the Doald sllall find that a Member or other person entitled to a benefit
under the DROP is unable to care for his or her affairs because of illness or
accident or is a minor, the Board may shall direct that any benefit due him or
hel, unless daim shall have beGll be made fOl the benefit by only to a duly
appointed legal representative, bG paid to llis SpOUSG, a dlild, a parent 01
othel blood relativG, or to a person with whonl he lesides. 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 her or on his or her account under the
DROP, shall file with the Board the information that it shall require to
establish his or her 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 System, direct
that such payment and all remaining payments otherwise due such person be
canceled on the records of the DROP System. Upon such cancellation, the
DROP System shall have no further liability therefor except that, in the event
such person or his or her Beneficiary later notifies the Board of his or her
whereabouts and requests the payment or payments due to him or her under
the DROP, the amount so applied shall be paid to him or her in accordance
with the provisions of the DROP.
E. Written Elections. Notification.
(1) Any elections, notifications or designations made by a Member
pursuant to the provisions of the DROP shall be made in writing and
filed with the Board in a time and manner determined by the Board
under rules uniformly applicable to all employees similarly situated.
The Board reserves the right to change from the time and manner for
making notifications, elections or designations by Members under the
DROP if it determines after due deliberation that such action is
justified in that it improves the administration of the DROP. In the
event of a conflict between the provisions for making an election,
notification or designation set forth in the DROP and such new
administrative procedures, those new administrative procedures shall
prevail.
(2) Each Member or Retiree who has a DROP Account shall be
responsible for furnishing the Board with his or her current address
and any subsequent changes in his or her address. Any notice
required to be given to a Member or Retiree hereunder shall be
deemed given if directed to him or her 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
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such address is returned, mailing of checks will be suspended until
such time as the Member or Retiree notifies the Board of his or her
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, incl uding
DROP benefits.
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 26. PRIOR GOVERNMENT SERVICE.
Unless otherwise prohibited by law, and except as provided for in Section 1, the years or
fractional parts of years that a Member (except a Mayor or Commissioner Member) previously
served as a full-time General Employee with the City of Ocoee during a period of previous
employment and for which period Accumulated Contributions were withdrawn from the Fund, or
the years and fractional parts of years that a member served as a General Employee for any other
municipal, county or special district department in the State of Florida or jurisdiction other than the
State of Florida, shall be added to his or her years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he or she would have contributed,
based on his or her Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he or she been a Member of this System for the years or fractional parts of
years for which he or she 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.
2. The lcquest shall be made only Ol1Ge and 111ade by tIle MClllbCl 011 01 bcfolC tIle latel
of eigl!tGGl1 (18) 1110nths from tIIC date of the Oldinallce adoptihg tIlis scction 01 eigl!teeh (18) 1110l1ths
flonl tltc datc ofthcil cnlploYlllc,nt ~ith the City ofOeocc. Multiple requests to purchase credited
service pursuant to this section may be made at any time prior to retirement.
Page 47
3. Payment by the Member of the required amount shall be made within six (6) months
of his or her request for credit, but not later than his or her retirement date, and shall be made in one
(1) lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section for jurisdictions other than the Ci ty ofOcoee,
when combined with credited service purchased pursuant to Section 27, Military Service Prior to
Employment, shall be five (5) years of Credited Service and shall count for all purposes, except
vesting. There shall be no maximum purchase of credit for prior service with the City of Ocoee and
such credit shall count for all purposes, including vesting.
5. In no event, however, may Credited Service be purchased pursuant to this Section for
prior service with any other governmental agency, if such prior service forms or will form the basis
of a retirement benefit or pension from another retirement system or plan as set forth in the
Maximum Pension Section of the plan document.
SECTION 27. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a Member (except a Mayor or Commissioner
Member) serves or has served on active duty in the military service of the Armed Forces of the
United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or
involuntarily and honorably or under honorable conditions, prior to first and initial employment with
the City shall be added to his or her years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he or she would have contributed,
based on his or her Salary and the Member contribution rate in effect at the time that the Credited
Seryice is requested, had he or she been a Member of this System for the years or fractional parts of
years for which he or she 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.
2. TIle lequest sllall be lllade oilly once. alid 111ade by MCillbel Oll 01 bcfolc thc late.1 of
eightccll (18) montIls flonl tIle cffccti ve date of the oldiilailce adoptiilg this seetioil 01 cigltteen (18)
IllOllths flOlll tIle datc of theil ell1ploynlcllt witll tIle City of Oeocc. Multiple requests to purchase
credited service pursuant to this section may be made at any time prior to retirement.
3. Payment by the Member of the required amount shall be made within six (6) months
of his or her request for credit, but not later than his or her retirement date, and shall be made in one
(1) lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section, when combined with credited service
purchased pursuant to Section 26, Prior Goyernment Service with jurisdictions other than the City
of Ocoee, shall be five (5) years.
S. Credited Service purchased pursuant to this Section shall count for all purposes,
except vesting.
SECTION 28. PURCHASE OF CREDITED SERVICE FOR AIR TIME.
Unless otherwise prohibited by law, any mMember (except a Mayor or Commissioner
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:
A. The member contributes to the fund the sum that he or she would have contributed
had he or she been a member of the system for the years or fractional parts of years
for which he or she 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
Page 48
for all professional seryices 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 of the 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
~ade 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 reI disability benefits. The maximum combined purchase under this
section and sections 26 and 27 shall be fiye (5) years.
ks h \noc\ococc\gen \0 5 -04 -09. ord
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