HomeMy WebLinkAboutItem #10 Second Reading of Ordinance Regarding Approval of the Amended, Consolidated and Restated Ordinance for GERTF
AGENDA ITEM COVER SHEET
Meeting Date: 7/07/09
Item # /0
Reviewed By:
Department Director: ~ a~tv
City Manager: ~
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Contact Name:
Contact Number:
James Carnicella
1032
Background Summary:
The Pension Board for the City of 0coee Municipal General Employees' Retirement Trust Fund is governed
by 0rdinance.
Issue:
Amendment to the General Employees' Pension 0rdinance 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:
o Public Hearing
o Ordinance First Reading
~ Ordinance Second Reading
o Resolution
o Commission Approval
o Discussion & Direction
For Clerk's Deaf Use:
o Consent Agenda
o Public Hearing
o Regular Agenda
o Original Document/Contract Attached for Execution by City Clerk
o Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by ( )
~4tJ-
o N/A
o N/A
o 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,
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 Entry
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 currentterm 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 planlfiscal 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.
t~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 current
10/1/2008 10/1/2008
A. Participant Data
Number Included
Actives 189 189
Service Retirees 47 47
Beneficiaries 5 5
Terminated Vested 39 39
Disability Retirees 0 0
DROP Retirees 0 0
Total 280 280
Total Annual Payroll $7,904,794 $7,904,794
Payroll Under Assumed Ret. Age 7,904,794 7,904,794
Annual Rate of Payments to:
Service Retirees 683,105 683,105
Beneficiaries 28,300 28,300
Terminated Vested 369,638 369,638
Disability Retirees 0 0
DROP Retirees 0 0
B. Assets
Actuarial Value 16,439,261 16,439,261
Market Value 14,160,706 14,160,706
C. Liabilities
Present Value of Benefits.
Active Members
Retirement Benefits 20,427,226 20,281,472
Disability Benefits .. 0 0
Death Benefits 483,742 482,280
Vested Benefits 1,108,262 1,108,215
Refund of Contributions 393,122 393,122
Service Retirees 6,435,477 6,435,477
Beneficiaries 184,421 184,421
Terminated Vested 1,720,329 1,720,329
Disability Retirees 0 0
DROP Retirees 0 0
Total 30,752,579 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 Cont. 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 r" 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
I nactives 8,340,227 8,340,227
Actives 4,052,518 3,916.218
Member Contributions t f 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 10/1/2008
Applicable to Fiscal Year Ending 9/30/2010 9/30/201 0
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.
Interest Rate
8% per year compounded annually,
net of investment related expenses.
Retirement Aqe
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
Aoe Durino the Year Durino the Year at Aoe 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%
Fundinq Methods
Entry Age Normal Actuarial Cost Method.
Eliqibilitv
Credited Service
Salary
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 2008-006)
Full-time employees who are classified
as General Employees participate as a
condition of employment.
Total years and fractional parts of years
of service with the City as a General
Employee.
W-2 Compensation, plus tax-deferred,
tax-exempt, and tax-sheltered items of
income.
Average Salary for the 5 best years of
the 10 years immediately preceding
retirement or
termination.
Averaqe Final Compensation
Member Contributions
City Contributions
Normal Retirement
Date
Benefit
Form of Benefit
7.4% of Salary.
Remaining amount required in order to
pay current costs and amortize
unfunded past service cost, if any, over
30 years.
Attainment of Age 60.
3.0% of Average Final Compensation
times Credited Service. The maximum
benefit is 81 % of Average Final
Compensation.
Ten Year Certain and Life Annuity
(options available).
Earlv Retirement
Eligibility
Age 50 and 5 Years of Credited Service.
Benefit
Accrued benefit, actuarially reduced.
VestinQ
Schedule
100% after 5 years of Credited Service.
Benefit Amount
Member will receive the vested portion
of his (her) accrued benefit payable at
the othelWise 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 cif 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 941-377A848
May 5,2009
VIA E-MAIL & UPS
Mr. Russ Wagner
Ocoee General Employees' Ret. Trust Fund
150 N. Lakeshore Drive
Ocoee, FL 34761
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 of Ocoee
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:
1. 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 ofOcoee prior to October 1,1991
and who became or will become reemployed on or after October 1, 1991; 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.
5. 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".
10. 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 IRC 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.
:;z;::'
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
BUT 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 FORA 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: Authoritv. The City Commission of the City of Ocoee has the authority to
adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter
166, Florida Statutes.
SECTION 2: The present 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 conniet
herewith are hereby repealed.
SECTION 4. Severability. In the event any section, subsection, paragraph, sentence, clause,
phrase or word of this ordinance shall be held invalid by a court of competent jurisdiction, then such
invalidity shall not 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 DA Y 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 11leal1S tllG Dl1lploYGC RctilWIGJ1t Incomc SCGUlity AGt of 1974 (P.L. 93 40G) and allY
legulatiohs issucd tllGlCtllldCl by thc Departl1lGl1t ofLabOl alld the hltclnal RCvGllue SCl vicc, as that
Statutc and thcSG lcgulations shall be al11Gndcd.
Actuarial Equivalent means a benefit or amount of equal value, based UpOll tIIC 1983 GlOUp
Ahl1uity MOl tality Table alld an intclcst late of cight (8%) pCl 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 of the last ten (10) years of Credited Service prior to Retirement, termination, or death.
A year shall be twelve (12) consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder at the death
of a Member who has or have been designated in writing by the Member and filed with the Board.
If no such designation is in effect, or if no person so designated is living, at the time of death of the
Member, the Beneficiary shall be the estate of the Member.
Board means the Board of Trustees, which shall administer and manage the System herein
provided and serve as trustees of the Fund.
City means City of Ocoee, Florida.
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 of the City pending the possibility of being rehired without losing credit for the time that he
or she was a Member ofthe System. If the 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 of Ocoee 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, ifmore 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 ofOcoee prior to October
Page 3
1, 1991 and who became or will become reemployed on or after October 1, 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 L 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.I03-353), 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, ifhe 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 of US ERR A. To the
extent that this paragraph does not meet the minimum standards ofUSERRA, 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) of this 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 ofthe 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 I 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) of the Code shall bc dislegaldcd 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 adiusted 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
adiustment 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 of which 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 subiect 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 ifthey had been Members of the
System Oll the latel of Oc.tober 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
ofthe 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 of two (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 of the 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.
1. 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 ofthe 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 offunds for the City. However, any funds so deposited with the Finance Director of the
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. ill 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 ~280.02, Florida Statutes, which depository with regard to such funds shall
conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill
its investment responsibilities as set forth herein, the Board may retain the services of a custodian
bank, an investment advisor registered under Investment Advisors Act of 1940 or otherwise exempt
from such required registration, an insurance company, or a combination of these, for the purposes
of investment decisions and management. Such investment manager shall have discretion, subject
to any guidelines as prescribed by the Board, in the investment of all Fund assets.
4. All funds and securities of the System may be commingled in the Fund, provided that
accurate records are maintained at all times reflecting the financial composition of the Fund,
including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the City, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the City showing a detailed listing of assets and a statement of all income and
disbursements during the year. Such income and disbursements must be reconciled with the assets
at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on
both a cost and market basis, as well as other items normally included in a certified audit.
6. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to said Fund, subject, however,
and in any event to the authority and power of the Ocoee City Commission
to amend or terminate this Fund, provided that no amendment or Fund
termination shall ever result in the use of any assets of this Fund except for
the payment of regular expenses and benefits under this System, except as
otherwise provided herein. All contributions from time to time paid into the
Fund, and the income thereof, without distinction between principal and
income, shall be held and administered by the Board or its agent in the Fund
and the Board shall not be required to segregate or invest separately any
portion of the Fund.
B. All monies paid into or held in the Fund shall be invested and reinvested by
the Board and the investment of all or any part of such funds shall be 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 ofInternal 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 of the 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 System diffclelleG ill cadi year, betwew the total agglegate MClllbGl eOl1tlibutiol1s
fOl the yeal and the total cost fur tIIG yeal, as sho~n by the nlost lecent actuarial valuation of the
SYStClll. ThG total cost fOl al1Y yeal sllall be ddil1cd as tIIG total hOlmal cost plus tIle additiol1al
anloUllt suffieiGht to amortizG the uhfunded past sel v ice liability 0 v el a tIlirty (JO) year pel iod,
eommel1cing with the fiseal yeal in whidl the DffGctive Date of this System OCCUIS.
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 ofthe 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-LivinI?: 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 1 of the calendar year following the later of the calendar year in which the
Member attains age seventy and one-half(70Y2) 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 Accumulated 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 ofthe 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.
B. 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 tB .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 ofthe 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.
3. 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. If the 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 actuariall y 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. If there is no surviving Beneficiary as ofthe 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 Treasury 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 Membo ofthe System whose position is tGllllil1ated, fOl w hatGvCll cason,
but who lemaills employed by the City in some othel c.apacity, shallllave allrGtilcmcht benefits
aCGluGd up to thG date ofsuc11 termination uhdel tllis System pleSGl ved, Plovided he 01 she docs 110t
elect to withdla~ llis 01 hel Accumulated Conhibutions flom this System. Such aGel ucd 1 GtilGnlellt
benefits shall be payable at his 01 110 otho wise Gady (lcduced as EO! cady lctilemellt) 01 nOllllal
letilenlGllt date heleundel, 01 lato, il1 accordance with the plovisiol1s of this SystGl1l.
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 of a larger monthly amount, payable to the Member for
his or her lifetime only.
B. A retirement income ofa 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 ofthem, 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
1.40 1( 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 of the
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, ifany,
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 of the Retiree's then-current benefit. Any
such Retiree shall pay the actuarial recalculation expenses and shall make repayment of any overage
of previously-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.
5. Retirement income payments shall be made under the option elected in accordance
with the provisions of this Section and shall be subject to the following limitations:
A. If a 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. Ifthe 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 ofthe 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 seventy and one-half (70Yl)
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 lemail1ing monthly ihCOl1lC payments to be paid do not excGGd Tlllce
ThousalId Pi ve IIUl1dl cd Dollals ($J,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 subj ect 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 ifthe 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.
-r. Claims of Affected Persons.
* The Doald ofTwstces shall gIant an initial healing upon lcceipt of a ~Iittell
I equest ("Clai111"), on matters w hieh affect the substantial 1 ights of any POSOII
("Claimant"), including Membels, Retirees, Dendieialies, 01 allY pelsoll
affectcd by a decision of the DoaId of Trustees.
B:- Thc Doald shall review the Claim at an initial healing and wto an Oldel
withilI ninety (90) days flOm the datG oflcceipt ofthe Claim. Tile Doard may
extend the time fOl mteling the Oldel at an initial hear il1g ful an additional
ninety (90) days ifit detcllllincs such tithe is necessary fOl full discovely and
adequate leview. The GeneIal Counsel al1d the Claimant may stipulate to
furthel extensions oftime.
€: It shall be the function of tile Genelal Counsel, tIuoughout the elaims
plocedUle, to assist thc Doald il1 the discovery and plesentation of evidence
il1 oldel to assmc tIlat the Doald lecei ves alllekvant infollIlatiol1 pliOl to the
Doald's decision.
B:- The Claimant shall havG the right to be IepIesellted by COUlISel at any 01 all
times tIuoughout the claims plOeedme.
Z: Initial Ilear ing.
* At the initial healing, the only evidcnce to be considered by the Doard shall
be documentary evidence contained in the pension file, including but 110t
lililited to, COli espondel1GG and e v idelIce 1 ecei v ed pUlSUal1t to pal agr aph D.
B:- Othel than questions hom the Twstees, thele will be no taking ofadditiolIal
evidence at the initial hearing, except that the Clainlal1t will be affuided
fifteen (15) minutes to make a pleselltation, wllieh shall be lilIlited to
comments and/Ol algumGnts as to the evidence 01 infumlation aheady
contailIcd in the pension file.
€: Upon Gompktion ofthe review ofthe Claim at the initial healiIlg, tile Doald
shall mtel an Oldel settilIg forth its findings al1d cOl1clusiolIs on the Clail1l.
The w 1 i!ten or dGl shall be plO v ided to the Claimant. The 01 do shall il1clude.
Page 17
t+1
ThG speGifie fil1dillgs ,\lId conclusiollS oftllc Doald, illcludillg specific
IdclGilCeS to pe11inent plovisiol1s of the Systel11 on which such
Gonclusiolls ale based,
t21
A de,SGl iptiol1 of al1Y additiollalmatGI ial 01 ihfO!l11atiol1 tI.at tile Doald
may dGGilI ncCeSSaly fOl tIle, Claimant to pGl feet his 01 llel CIail1l,
togetIlel with tile 1 casOI1S why SUGh lllatel ial 01 infOlmatioll is
l1eeGssar y, and
ffl
An Gxplanatioll ofthG right to a full healing on tI.e Clainl alld the tillle
limit ill wI.iGh a full he,alillg lllUSt bG IGquGstcd ill wliting.
B: The decisioll of the, Doal d at tIle illitiallleal il1g shall llot be final until aftcr
the time has expiled to lequest a fullllealing 01, if a full healil1g iSlequestcd,
ulltil thG Doald makGs a decisioll at tIle conclusioll oftllG fullllealil1g.
:3-:- full Ileal illg.
* Any Claimal1t may request a full hearing on the issues plesented to tIIC Doald
at an il1itial llearing al1d upon wllieh the, Doald has entelcd an Oldcl as
plovided ill subseetiol1 2.C. above.
&- A fullllcar il1g must be 1 equestGd by thc Claimant w itllin ninety (90) days of
the rGeeipt ofthe Doald's Older. The older will be deemed leeeivcd tInee (J)
days follow ing the, date it is maikd to Clainlant at tIIG addl GSS pl 0 v ided to tI.c
Doard by Clainlant.
€: Upon receipt of tile lcquest fO! a full healing and eOl1sidelil1g the al1'lOUl1t of
discovery whicllmight be, eonduGte,d, thG Doard shall e,stablish a date fOl tile
fullllGaring al1d caUSG 110tiee to bG givGll to the Clailllant. The full healing
sllall be Ilcld withill nine,ty (90) dayS ft0l11 thG lcceipt oftIlG lcquest fLOlll tIIC
Clairl1ant. The full hGaling I1lay be, postponed, if neCeSSaly and with the
COhSwt of thG Claimant, to pGunit full disco v GrY of tIle, facts.
B: Copie,s of all dOGUments to be offel cd into G v idencG at the full Ileal illg,
il1duding depositiolls, alld a COlllpkte, witllGsslist witIlllallles al1d addleSSGS
of witnesses expeGted to be called, 5hall bc ftllllished to the Doar d al1d the
Cene,ral COUl1sel by tile, Claimal1t at lcast twenty (20) days pi iOl to the full
hear ing. DoGtlments not ftllnishcd to tile Doald within the presClibe,d time
lil1rit I1ray be. excluded flOlll e,videl1ce, at the, fulllle,alil1g if a leasOllable
explal1atiol1 is not plovided for the delay in ploviding thG documents.
fr A Claimal1t or thG CenGlal Counsel may obtain discovo)' by deposition
and/ol intellogatolies pliOl to the, full llearing. Wlittcn 110ticG of any
depositions and/Ol intGIIogatOlies shall be, givGll to tIle GGl1elal COUlIScl and
the Claimallt.
F: Tile costs of any disGOvGIJ, e,XGGpt diseovGry lequcsted by the Doald 01 the
Gwel al COUl1sel, the appGal al1ce of w itne,sse,s at the Ileal illg, al1d tile 111aking
of a vGlbatim lecOld of the plOcecdil1gs shall be the, lesponsibility of the
Clainlallt.
6:- ThG Claimant shall be 1 e,sponsible fol the appeal allCG of allY w itllesscs w llieh
lie Ol she wislles to have, testify at the he,aling. The Doald shall, however,
lla v e tIle po w Cl to subpoena al1d 1 equil e, the, atte,hdal1ce of w itllesse,s alId tile
Page 18
1:
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It
t:-
M:
N7
6;
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It
57
tr.
plOduGtion of do~ummts fO!. discovery prior t'? and. ~t tI.e plOeecdings
plO v ided fOl IIGl G1l1. The Clalmant may 1 equest 111 \';< llt1l1g the lSSUal1Ce of
subpocnas by the Doald. A leasohable feG lllay be dlalgGd fOl the issual1ce
of any subpoenas not to exceed the fees set forth in flOlida Statutes.
Testimol1Y at the full hGalillg may be submitted il1 thG follll ofa depositioll.
Depositiol1s timdy subl1litted \'9ill bG.part o~the leCOld before. the Doar.d at
tile full heal ing and \';< ill not be 1 ead in totality at tile fullllealillg, pl 0 vided
I10WevGl, that this docs not Pledude tile Clailllant or the Genetal Counsel
nom reading parts of dGPositiolls ill an opening 01 dosing statenlmt.
III ekval1t and ullduly rGpetitious evidmce shall bG Gxdudcd.
AllY pC1S0l1 \'9 ho kIlO \';< ingly gi ves false testimollY is guilty of a 1l1isdellleanor
of thG fiJ5t degleG, pUl1ishabk as provided ill Sectiol1 775.082 01 775.08J,
flOl ida Statutes.
TIIG file I1lailItailled by tile Doard is pat1 of the tecold bdole the Doald at tile
full Ileal illg.
All plOGeedings of the Doard sllall be conducted in public.
In cases concerning an applicatiol1 fO! PGllsion bmefits, th~ bUl dell of plOof,
eXGGpt as othel \'9 ise plO v ided by la\'9, shall bG on tllC Clallllal1t seeklllg to
sho\'9 mtitkment to SUdl bmefits.
hi Gases concGlning tOlllinatioll ofpensiol1 belle fits, the bmden OfPlOofsllall
be on the Doard.
Exeept as to those recolds \'9hicI. arc exempted fronl the plovisiol1s of
Chaptel 119, florida Statutes, flOlid~ls Pub.lic Rec/ord La~, lcco~ds
maintained by thG Doald alc OpGII fO! IllspectIon an~/ol COPYlllg dUllllg
nOllllal busil1ess homs at a reasonable cost fOl the cOPY1l1g.
Should a Claimallt 1 equestillg an initial 01 full heal illg decide to appeal any
decisioll made by the Doard, \'9ith lespect to any mattel eonsideled at such
healing, the Clailllant lequesting an initial 01 full hGalillg ~illlIced a lecord
of tile Ploceedings and may .l1eed to asstll.e that .a .v~lbatllll lCGOl~ of tI?e
plOceeding is madG. ~h~ Clall1lallt lequestlllg an 111lt~al 01 fu.ll healing \,;<lll
bG lespollsibk fOl obtallllllg a court leportel 01 otIlel \'91Se 1I1aklllg a leCOld of
the proceedil1gs bdOlC the Doald.
Tllc decisions of the Doald aftcl tIIG 1 equested fullllealing shall be filial alld
bihdillg.
Withil1 fiftcGll (15) days aftcl I1lakillg, a deGisiol1 at tile fulllleating, tile Doald
shall wtGl a fil1al older sGtting forth its fil1dings al1d cOlldusions and a copy
of the Oldcl shall be plovidcd to thG Claimallt.
ludicialleview of decisions of the Doald shall be sought by the filillg of a
timdy petition for \'V lit of ccrtiolal i \'9 ith the Clok ofthe Cilcuit Com t, ill the
appl Opt iate county.
4: COl1duct of the full Ileal ing.
Page 19
-It Tile Chaillllall shall P1Gside over tIle Ileal illg ahd sllalll ulc 011 all evidentiary,
pl oGedUl ai, and othCl kgal que.stiol1s that al ise dUl ing tIle heal ing. TIIG
Cllaillllan's 1 ulil1gs shall stand unkss 0 vell ulcd by a majority ofthe Tl ustees
pl eswt. TIle Chaillllan shall opcn tile full heal il1g by explaining tile
plOeedUles to be fullowed.
&- The Claimant shall have the light to be represented by counsel 01 be self-
1 cpr esented. ThG Gel1el al COUlIscl sllall ad v isc the Doal d.
€:- The Clainlant shall be allowed to makG ah opel1ing statelllellt not to exceed
teh (10) mil1utes.
8:- Te.stinlony of w itl1esses shall be. undCl oath 01 affillllation. DcpositiohS al1d
affida v its shall be. adll1issible.
fr Tile Chailman, any TlUstee, the GehGlal Counsel, the Claihlal1t 01 tIle
Claimal1t's counsel, upohrecognition by the Chail111an, may direct questiohs
to allY witl1ess dming tile ploceedil1gs.
F: EitllGl the Claimant 01 the Gweral Coullsel sllall have tile light to pleswt
evidence rekvallt to the issues, to cross GXanlille \\'itnesses, to illlpeacI.
w itnesse.s and to 1 espOlld to tile e v idenGe pl esented.
6-:- The Clai111ant sllall be pellllitted a closing algUlllGl1t 110t to exceed fifteeh (15)
minutes.
It Thc Doald shall dc.1iberate ahd make a dccisiol1 following c.10Sillg aq~ulllent
and theleafto entel all oldel as provided hGIGin.
L 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 ATTORNEY AND PROFESSIONALS RESERVED.
Tile Doard l11ay Gmploy indcpehdent legal counsc.1 at the SYStWI'S expense fm the pmposes
contail1ed hoein, togethel WitII SUGh Otlle.l plOfessiollal, ted11liGal, 01 otllel advisOls as tIle Doald
deGms hecessary.
Page 20
SECTION 14. MAXIMUM PENSION.
t-: Dasie Limitation.
Subject to tIle adjustments hGl(jnaftel set fi:)l th, the maXil1lUlu amoullt of al1nual
1 ailGlllelJt incollle payabk with 1 espeGt to a MembGl ul1do this SYStWI sllallllot exceed $1 GO,OOO.
J70l pUl poses of apply ing tlle abo v e lilJlitation, behefits payabk il1 allY fOllJl Otll" thalI
a stlaigllt Ii&, al1nuity with no ancillary benefits shall be adjusted, as provided by Tleasmy
Regulatiolls, 50 that such benefits ale the Aetualial Equivalent of a stlaight life alIlluity. J701
purposes of this Seetioll, the following bGllefits shall not be takel1 into aeeoullt.
ft1 Any al1eillary bellcfit which is 1I0t dil eetly 1 elated to 1 ail elJ1wt
income benefits,
(21 Any othel bOlcfit not lequired Ul1dCl S415(b)(2) of the Code alld
RegulatiolIs tllel cundel to be taken into aeeoulIt fal pUl poses of tile
linlitatiol1 of g415(b)(1) ofthG Code.
2: Paltieipation ilI Otllel Defined Dehefit Plalls.
Tile lilJlitatiolI of this SeGtiol1 with lespect to any Menlbel ~Ilo at allY tinle lias beel1
a MelubGl ill any othCl defined bwefit plan (as defil1ed in S414U) of the Code) lJlaintaihcd by tile
City shall apply as iftlle total benefits payabk Ul1del all dGfined benefit plal1s il1 ~ llidl tlle Mehlbel
lias been a nlelhbel wele payabk fiom one plan.
:3-:- Adiusthlwts in Lil11itations.
In tIle evellt tIle Mel11bel's letilel11ent benefits bGCOlJle payable befal cage G2, tlle
$1 GO,OOO limitation pl eSCI ibed by this Seetiol1 sllall be 1 cduced il1 aceOl danG(, \'v itll RegulatiOlls
issued by tl.G Seel etal) ofthe Tl Gasur y ptllsuallt to tlle plO v isions of S415(b) ofthe Code so that such
limitation (as 50 1 educed) equals all annual benefit (beginnillg wilen SUdl letilcmwt il1eomc belle fit
begil1s) which is cquiva1cllt to a onG hundled sixty thousal1d dollal ($lGO,OOO) anllual bwefit
begil111il1g at age sixty-two (G2).
The leductiol1s plovided for in the previous two palaglaphs sllallnot be applicable
to pl C-l ail GiJlent death bwefits paid pmsuallt to SGCtiOlI 7.
If the Membel's letilcment bellefit beC0111eS payable aftel age sixty-fi ve (G5), fOl
purposes of deto111inil1g ~llahel this bellefit Iheets the liluitatioll set fortII in subseGtiol1 1 llelein,
such bwefit sllall be adjusted 50 that it is actualially equivakl1t to the bOlcfit begil1llil1g at age G5.
Tllis adjushJlent sllall be made in accOldahGe witIIIGgulations plonlulgated by the SeGletaly of the
Tl easul) 01 llis 01 110 ddcgate.
4: Less thall Tell Y Gal s of SGl v ice.
Tl.G IJlaximtllJll etil eluent benefits payabk undel tllis Sectioll to ally MOubel w 110 has
GOIJlpkted kss thal1 ten (10) yeals ofCleditcd Sel vicG with the City shall bc the aluOUiJt dGtelluil1ed
ulIdel subsection 1 of this Sectionluultiplied by a flaction, the nUmCl<l:tOl of~hiGh is tile l1ull1bo of
tIle Menlbel's yeals of CleditGd So vice and thG denoluihatOl of whiGh is tell (10). The leduction
plovided fal in tllis subscctiol1 shallllot be appliGabk to pIG-lGtilemwt death bwcfits paid pUlsuant
to Section 7.
Page 21
5: $10,000 LiIllit.
NotwitI.standil1g the fOlegoing, the letilGlllent bCl1cfit payable with leSpeGt to a
Membel shall be dcenlGd 110t to eXGeGd thG limitations set forth in this Section ifthe benefits payable,
with respect to such Membel undel this SYStClll and UndGl all OthCl qualificd defil1ed belIefit pelIsiolI
plans to w hidl thc City conti ibutes, do 110t exceed $10,000 fO! thG applicable Plan Year al1d rO! any
pl iOl Plall Yeal and the City has not at any tinle mailItaincd a qualified ddined eontI ibution plan ill
whiell the Membel participated.
&: Reductiol1 ofbcndits.
Reductioll of benefits al1d/O! eontributiolls to all plans, whele requiled, shall be
aecomplished by filSt leduGilIg tile MChlbGl'S benefit undel any defilIed belIefit plalIs ill wllidl
MCl1lbeI partiGipated, such 1 eduction to be madG filSt with 1 Gspect to thG plall il1 which MenlbGl 1I10St
lecently aGGlUed bcnefits and theleaftcl in such PliOlity as shall be detGlllliIled by the tlUstees and
the plal1 adlIlinistI atOl of such otheI plans, and I1Gxt, by 1 educing 01 alloGating eXGess [01 fcitUl es [01
defilIed conti ibution plalIs in which the Membel participated, SUdl 1 eduction to be lIl<tde filSt with
1 espect to the plal1 in w llidl Mcmbel most r eCGlItly acclUGd bcnefits and tiler cartel ill sueh pr iOl ity
as shall be established by the tlUstees al1d the plan adwinistratO! [01 suell otIlel Plovided, howevel,
tIlat lIecessary leductiol1SlIlay be made in a diffclent nlal111Cl al1d Pliority pUlsuant to tile aglewlcnt
of tIle tlUstGeS ahd the plan adUlilIistratOl of all othel plans covGling sueh Membcl.
7-: Cost-of-Li v ing AdiustIl1ents.
Thc lilllitations as stated il1 SubsectiolIs 1,2, alld J herein shall be adjustcd to the tinlC
paymcnt of a benefit begins il1 accordanGe with any Gost-of-liv il1g adjustIJlcnts plesclibed by tllC
Seeletaly of the TleasUl) pUlsuant to ~415(d) ofthc CodG.
&:- Additiol1al LilIlitation on PelIsion DcnGfits.
Notwithstanding anythilIg llereih to tile contrary.
* Tile nOllnallctilGlllcnt benefit 01 pension payable, to a Rctilee who becomes
a MGlllbel of the System and who lias 110t pIGviously participated in SUell
SystelIl, 011 01 aftGl JalIUaly 1, 1980, shall not exceGd 100 pel cent o[his 01 her
Avclage filial Compcnsation. IIOWGvGl, nothilIg GOl1tained in tIlis Scction
shall apply to supple,mental IGtilcnlent benefits 01 to pcnsiolI ineleases
attIibutable to cost-oF-living increascs 01 adjustlllents.
B: No membGl o[thG SYStGIJl sllall be allowed to rCGGive a letirelllelIt bellcfit or
pwsiol1 which is in part 01 in whole, basGd UpOlI al1Y selvice witIllespcGt to
which the MenlbGl is ahGady receiving, 01 will rGceive il1 thG futUle, a
letilel1lent bwefit or pCllsion flOlll alIothGl IGtilemcht SYStcnl or plan. This
lestIiction docs not apply to soGialscGtlrity benefits 01 fcdelal belIefits ulIdcr
Cllaptel G7, Title, 10, U.S. Code.
.L 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 L 1995, a plan member may not receive an annual benefit that exceeds the
limits specified in Code Section 415(b), subiect to the applicable adiustments in that section. On and
after January L 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), subiect to the applicable adiustments
Page 22
in Code Section 415(b) and subiect to any additional limits that maybe 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.
If the form of benefit without ref?:ard to any benefit increase feature is not a straight
life annuity, then the Code Section 415(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 )-1 (c )(2)(ii)) that takes into account the death benefits under the form of benefit.
1, Benefits Not Taken into Account.
For purposes of this Section, the following benefits shall not be taken into account
in applving these limits:
A. Any ancillary benefit which is not directly related to retirement income
benefits;
B. Any other benefit not required under &415(b )(2) of the Code and Regulations
thereunder to be taken into account for purposes of the limitation of Code
Section 415(b)(1 ).
4. COLA Effect.
Effective on and after January L 2003, for purposes of applying the limits under Code
Section 415(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
415(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 startinf?: 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 ofthe Treasury pursuant
to the provisions of Code Section 415(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 City, the adjustments 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 adjusted so that it is
actuarially equivalent to the benefit beginning at age sixty-five (65). This
adjustment shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his or her delegate.
~ 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 ofthis 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
7.
7. 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(j) maintained by the City
shall apply as ifthe 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 31, 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 415(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 415( c) are met, determined by
treating all such contributions as annual additions for purposes of
Code Section 415(c).
ill For purposes of applying subparagraph (1), the System will not fail
to meet the reduced limit under Code Section 415(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 415(c)(1 )(B) of the 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 by 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 bv 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), 6051(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
125(a).402(e)(3), 402(h)(1)(B), 402(k), or 457(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
employee 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 ofthe calendar year that includes the date of
the employee's severance from employment if:
Uti 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
fQ} 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 1.415( 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 of1aw 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 If payment pursuant to subparagraph (1) will not avoid a contribution
in excess of the limits imposed by Code Section 415( 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.
~ 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 ofJanuary L 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 1. 2003, the Plan is also subiect to the
specific provisions contained in this Section. The provisions ofthis 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 Trcasury Regulations Il1eOlpOIated. All distlibutions
lcquiled undel tllis Section will be detGllllincd and made in aeeOldalIce with
the TleaSUIy legulations undel Scctiol1 401 (a)(9) of the Code.
fr.
C.
TEFRA Section 242(b )(2) Elections. Notwithstanding the other provisions
of this Section other than this subsection 1.fr.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 Yz) or the calendar year in which the Member retires
unless othel wise Plovided fOl in tIle Plan OI lequiled by la~ 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
€-:
(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 of the calendar year in which the Member would have attained age
70 Y2, if later, as the surviving spouse elects.
(2) If the 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.
D.
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 of subsections J, 4 and 5 ofwith 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 40 1 (a)(9) of the
Code and Treasury regulations that apply to individual accounts.
Page 28
3. Determination of Amount to be Distributed Each Year.
A. General Annuity Requirements. If the 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) The distribution peliod will be over a life (01 lives) 01 ovel a peliod
eel tain not longel than the pel iod deso ibed in subscctioll 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 of the
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 OnGe payments have begul1 OvO a peliod eertain, tile poiod Ger1ail1
will not be dlangcd GvGll if thG PGliod certain is sllortel tllal1 the
nlaximum pGlll1itted.
t41 Payments will Githel be 110nincreasing 01 il10easc Oldy as follo~s.
fa} ny all annual po GGlltage ino case tllat docs 1l0t eXGeed the
cumulative annual perGentage il1eleaSe in a cost-of-living
index that is basGd on pl iGes of all itenls and issued by the
nureau of LabOl StatistiGS 01 by a fixed ammal illclease of
fi v e pel Gent 01 less.
tb:} To the extent of the reduGtion in the anlount of the Mcnlbel's
payments to plovide for a SurvivOl benefit upon deatll, but
only if the bGlldlGiary ~hose life was being used to detelll1ine
the distribution period described in subseGtion 4 dies or is 110
longer tile Membel's benefiGiar)i pursuant to a qualified
d0111estiG Idations Older within the 111eal1ing of Section
414(p ).
te) To plO vide Gash refunds of AGcumulated COlltl ibutiol1s UpOl1
the Membel's death.
td1 To pay inGreased bOlefits that lesult flOlll a Plan amel1dlllent.
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 subseGtion 2.n. 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, senli-al111Ually, 01
al1nually. All of the 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.
~ RequilWlents fOl Annuity DistlibutiolIs That COlllnlcnGe DurilIg a Membel '5
LifctilJ1e.
-it Joint Life Al1nuitics Vv'here the Owefieialy Is Not tile Membel's Spouse. If
the Member's intelcst is beil1g dishibuted in tile fo"n of a joilIt alId sur v i vOl
anl1uity fOl the jOilJt Ii v es of thG Menlbel and a lIonspouse belIefieiary,
alffiuity paymcnts to be, made, on 01 aftcl the Membel '5 lequired beginning
date to the designated beneficial)' after the Membo's death must 110t at any
tinle exceed tile applicable. perccntage of the annuity paymelIt fOl SUdl pel iod
that would have bew payable to the Mernbe,! usillg the table set forth in
Q&A-2 of SCGtiolI 1.401 (a)(9)-GT ofthe Treasur y regulations. If tile [011I1 of
dishibutiolI eonlbilIes a joint ahd sUlvivOl anl1uit)' fOl the joint lives ofthG
MelllbGl and a nOllspouse belIeficiary alId a pCliod Geltail1 al1lJuity, tIIC
I CqUil emcnts in tile pl eceding swtelIce w ill apply to anl1uit)' paymcnts to be
lllade to the desiglIated bel1efieiary aftel the expilation of the pCliod certailI.
B: PCliod Certain Arlnuities. Unle,ss the Membcl's spouse is the sole, desigl1ated
belIeficiar y and the fOllll of dish ibutiol1 is a per iod eGrtain and no life aIUlUity,
the po iod ccrtain fOl an annuity dish ibutioll conUnenGilIg dur il1g the
Merllbcr'slifetinle may not cxcecd the applicable, dishibutiol1 period fOl the
MCl1lber tlllder tile Unifollu LifetilJ1c Table set forth in Scction 1.401 (.1)(9)-9
of the Tleasury regulatiol1s fOl thc calel1dal yeal tIlat contains the al1nuity
startil1g date. If the annuity staliing date Pleeedes tIle yeal ill wllicll the
MWlbelleaehes age 70, tile applicable dishibutiol1 peliod fOl the Mell1bcl is
tile dishibution poiod for age 70 under the UnifoInI Lifctinle Table set forth
ill Sectiol1 1.401 (a)(9)-9 of tile Tl easury 1 egulatiol1s plus tile excess of 70
o v e,l thc age of the Menlbe,l as of the Me,mbel's birtllday ill tile :real tIlat
contains tile alUluity starting date. If the MWlbe!'s spOUSC is the Membel's
sole designated bcneficiary and the fOlln of dish ibution is a pel iod certail1
and 110 life annuity, the peliod eeltail1 may not GXGeed tIIC 100lgel of tile
MCl1lbel'S applicable distr ibution pel iod, as detellnined Ul1del tIlis subsectiol1
4.D., 01 tile joint life and last sur vi vOl expeGtancy of the Melllber and tI.c
MenlbGl'S spouse as dctcllnil1Gd under the Joint and Last SUl vivOl Table set
forth in Seetioll 1.401 (a)(9)-9 ofthe Tl(~asmy 1 egulations, usil1g the Membel's
and spouse,'s attaincd ages as of tile Melllber's al1d spouse's birthdays ill tile
ealendal yeal that eontail1s tile a1111tlity starting date.
5-:- RequilenKl1ts fOl Minimum Dishibutions Whele Membel Dies Oefole Date
Dish ibutiol1s OegilI.
-it MGnlbel Sur vi ved by Designated OelIeficiary. If tile Melllbel dies bdOle tI.e
date distribution of his 01 he! intGlest begins and thele is a designated
beneficiary, the Member's entire interest will be distributed, begil1llil1g 110
latel than the time desGlibed in subsectiol1 2.0.(1) 01 2.D.(2), Ovo tile life, of
tile designated belleficiary 01 OvCl a period eertailI 110t exeeedil1g.
Page 30
6:
ftJ Unkss the annuity starting date is bdolG tile filst dishibution
eakndal yeal, the life, expectancy of the dGsigl1ated bendkialy
dGtGlnlilled using the belIefiGiary's age as ofthe beneficiary's bil11lday
in the Gakndal yeal immediatdy following the eakndal yeal of tile
Membel's death.
tz7 If the alllltlity starting date is bcfol G tIle filSt dish ibution eakndal
yeal, the life, cxpeetaney of the dGsigllated bcnefieialy dGtelluined
using the beneficialy'S age as of thG benefieialY's biltI.day in tile
ealondal ,eal tile contains the annuity sta11ing date.
fr No designated DGlleficiary. If the Membcl dies bcfOle tI.e datG dishibutions
begih al1d thGle is no desiglIated bcnefieiaryas of Septclllbel JO of tIle yCal
following thc yeal ofthe Membel '5 death, dishibution oftlle Mcmbel's entile
into est w ill be eonlpktcd by Deeenlbel J 1 of tile Gakndal yeal GOlltail1ing
tile fifth anl1ivelsary oftllG Membel's deatII.
€:- DeatII ofStll v i v il1g Spouse DcfOle Dishibutions to Sm v i v il1g. Spouse Degih.
If the Membel dics befOl G tile date dish ibutiolI of his intel cst begilIs, tI.e
Membo's Stll v i v ing spouse is the MelIlbo '5 sole dcsigiIated belIefieiary, alId
the Stll v i v ing spouse dies bdOl c distl ibutions to tile SUl v i v ilIg spouse begih,
tIlis subsection 5 w ill apply as if the SUI v i v ing spouse w 01 e the MelIlbcl,
except that the tilllC by w hieh distributions nlust begin w ill be detellnil1cd
without legal d to subseetion 2.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 L 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.
~
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) ofthe
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 subscetiol1 2.D Section 7.
Page 31
E-: Life Expectancy. Life expectancy as computed by use of the Single Life
Table ill Section 1.401 (a)(9)-9 of the Tl easUl Y 1 egulatiol1s.
& RequilGd Degildling Datc. The date specified il1 subsectioll 2.A.
SECTION 16. MISCELLANEOUS PROVISIONS.
1. Interest of Members in System.
All assets of the Fund are held in trust, and at 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 of the 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 of the applicable provisions ofthe Code as
now in effect or hereafter amended, or any other applicable provisions ofthe 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 of January 1, 1989, a Board may not engage in a transaction prohibited
by Code Section 503(b ).
~ 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.
L. 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 may be
prescribed by the Board. However, where applicable, the Board shall comply with Treas. Reg. 9
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. If this ordinance shall be repealed, or if contributions to the System are discontinued,
the Board shall continue to administer the System in accordance with the provisions of this
ordinance, for the sole benefit of the then Members, any Beneficiaries then receiving retirement
allowances, and any future persons entitled to receive benefits under one 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 of the
System as ofthe date of repeal of this 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 ofthe 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, ifsuch
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
A verage Final Compensation as of such date, provided that, if such remaining
asset value be less than the aggregate of the amounts apportioned hereunder,
such amounts shall be reduced so that the aggregate of such reduced amounts
will be equal to such remaining asset value.
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 al1Y tin Ie dUl iug the filSt tCll (10) yealS aftcl the effecti v e datc of tile 01 dinance
01 igillally establishing this System, thc SystGm shall be tCll1linatcd 01 the full CUll ent costs of the
System shall not have beel1 met, anything in the System to thc COl1tlalY 1l0twithstalldil1g, City
eontIibutiolls which may be used for thc benefit of allY onc of the t\\-ellty-five (25) highest paid
MGlllbelS 011 tile effccti ve date, ~ llose anticipated annualletilemcllt allowanGG plO v ided by the City's
eOl1tI ibutiol1s at l\klubel's nOlmalldilCl1lent date ~ould cxcced $1,500, shall not exceed the gleatel
of eithel a) $20,000, 01 b), an amOUl1t Gomputcd by I1lultiplying thG s111allcl of $1 0,00001 tWCl1ty
peleent (20%) of such Mewbel's avelage al1l1ual eamings durilIg his 01 hel last five (5) years of
seJ vice by tile number ofyeals ofsCJ vice sil1ce the effective datG. hl the evCl1t that it shall heleaftel
be detGl111il1cd by statute, court dccision, wling by the COmljlissionel of Internal Revcnue, or
othelwise, tIlat tile provisiol1S of this palaglaph ale not thcn ncccssary to qualify tIIC Systenl undcr
tile Code, this palagJaph shall be ineffcctivc ~ithout thc neccssity offurthcl alJlendl1lent 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 legally 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 System 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 of the 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 of the 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 ofaspecified
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 of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and
the distributee's designated Beneficiary, or for a specified period 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. ~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
ilIcome and tIle portion of SUdl dish ibution w hieh is not so includible : or on
or after January 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) of the 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) of the 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) ofthe Code: or effective January 1. 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 dish ibutee with legal d to the intc.l cst of tIIG Spouse and the
employees' or former employee's spouse or former spouse. Effective January
L 2007, it further includes a nonspouse beneficiary who is a designated
beneficiary 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) of the
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 and would OtIIO wise be
ilIcludibk il1 glOSS il1come.
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
SERVICE REEMPLOYMENT AFTER RETIREMENT.
The years 01 parts of a yeal that a Membel SCl ves in the nlilitary sel v iee of the An/led POlees
of the Ullited States, the Ullited States Melehant Maline 01 the United States Coast Guald,
voltmtalily 01 involUlltalily, after sepalation flom employtllcnt as a Genelal Enlployee with tIIG City
to pel fol 111 tr ailIing 01 sel v iee, and 1 eemploymwt 011 01 after Decembel 12, 1994, sllall be added to
his 01 her years ofCiedited Service fO! all pUlposes, il1cluding vGsting, plovidcd tIlat.
-it TIle GelIel al Enlployee l/lUSt letulll to his 01 hel cmploymGllt as a Gel1el al El/lployec
~itIlin one (1) yGal flonl the eaIliel of tile date of his 01 hGl nlilitary discIlalge 01 his
01 her 1 cleasc fl om sel v iGc.
B:- The GelIclal ElIlployee dcposits into tile PUlld the sanle sum that tile Melllbcl would
have eontlibuted ifhe 01 she had IGlllained a Gcnelal Employee dUlihg his 01 hel
absence. The Genoal Employce hlUst dGPosit all nlissed contributions ~ itI.in a
poiod cqual to tIuee (J) times the PGliod of military sel vice, but hOt mOle thall five
(5) years or he 01 she ~ill forfeit the light to leeGive Clcdited Selviee folllis 01 hel
milital y sel v ice pUlsuant to tIlis Seetiol1.
€: TIle hlaxilllUlll eledit fOl militaly sel viec pUlSUal1t to tIlis seetiol1 shall be fi ve (5)
years;
&- In Oldel to qualify fol the pUlehase ofCledited Ser viGG pUlsuant to this ScctiOlI, the
Gellelal Employce must have been dischalged or lckascd frOlll sel vice Ul1del
hOllOlabk conditions.
fr This Section is intended to 1I1eet 01 exeecd the minimum lcquilelllents of the
Ul1ifon.ocd Sel viees EnlploytllCl1t al1d Reel1lploymcnt Rights Act (USDR.U), (P.L.
10J-J5J). To thc extent that this SGetiolI does not meet tile nlinilllUl/l standards of
USER.~, as it may be anlcndcd from time to tilllG, tile lllihimulll stalldalds sllall
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 of this 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.
~ 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 of this Section if the 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 ofthis 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 Partici ants. Members or retirees who are or were in the Deferred Retirement
Option Plan sha , 0 owmg termmation of employment after DROP participation, have the options
provided for in this section for reemployment.
SECTION 25. DEFERRED RETIREMENT OPTION PLAN.
1. Definitions.
As used in this Section 25, the following definitions apply:"
A. "DROP" -- The Ocoee General Employees' Deferred Retirement Option Plan.
B. "DROP Account" -- The account established for each DROP participant
under subsection 3.
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.
(1) 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 accrue 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
----l
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
Glllployed 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, INllichevo OCCtllS 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 emplovrnent. 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 Emplovrnent.
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 lIlay,
ho IN e v 0, elect, in SUGh time alId mall1lCl as thc Doal d shall pl eSCl ibc,
tIlat llis DROP distribution bG used to pmellasc a 110l1folfcitable fixed
ammity payable in sudl folin as tIIC Membel lIlay deGt. 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 of a Member's
DROP Account shall be made as soon as administratively practicable
following the Member's termination of employment. Distribution of the
amount in a Member's DROP account will not be made unless the Member
completes a written request for distribution and a written election, on forms
designated by the Board, to either receive a cash lump sum or a rollover of
the lump sum amount.
D. Proof of Death and Right of Beneficiary or Other Person.
The Board may require and rely upon such proof of death and such evidence
of the right of any Beneficiary or other person to receive the value of a
deceased Member's DROP Account as the Board may deem proper and its
determination of the right of that Beneficiary or other person to receive
payment shall be conclusive.
E. Distribution Limitation.
Notwithstanding any other provision of this subsection 4., all distributions
from the DROP shall conform to the "Minimum Distribution of Benefits"
provisions as provided for herein.
F. Direct Rollover of Certain Distributions.
This subsection applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the DROP to the contrary, a distributee
may elect to have any portion of an eligible rollover distribution paid in a
direct rollover as otherwise provided under the System in Section 23, hCleil1
illGOlpolatcd by IdcIGllCe.
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 of the DROP's assets shall be placed in the Board. The members
of the 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 of the DROP; and
may allocate among themselves or delegate to other persons all or such
portion of their duties under the DROP, other than those granted to them as
Trustee under any trust agreement adopted for use in implementing the
DROP, as they, in their sole discretion, shall decide. A Trustee shall not vote
on any question relating exclusively to himself.
Page 44
B. Individual Accounts, Records and Reports.
The Board shall maintain, 01 GausG to be hlailltained, 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 01 Gause to be plGpalGd 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. 1ne
Doald shall also OvelSGG the ilIvestl11GUt of the DROP'S assets.
D. Limitation of Liability.
(1) The Trustees shall not incur any liability individually or on behalf of
any other individuals for any act or failure to act, made in good faith
in relation to the DROP or the funds of the DROP.
(2) Neither the Board nor any Trustee of the Board shall be responsible
for any reports furnished by any expert retained or employed by the
Board, but they shall be entitled to rely thereon as well as on
certificates furnished by an accountant or an actuary, and on all
opinions of counsel. The Board shall be fully protected with respect
to any action taken or suffered by it in good faith in reliance upon
such expert, accountant, actuary or counsel, and all actions taken or
suffered in such reliance shall be conclusive upon any person with
any interest in the DROP.
6. General Provisions.
A. Amendment of DROP.
The DROP maybe amended by an ordinance ofthe City at anytime 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.
Page 45
B. Facility of Payment.
If the Doald shall 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, Ul1kss dainl shall Ilave been be made fOl the bellefit by only to a duly
appointed legal representative, bc paid to his Spouse., a e.hild, a palwt 01
OtllGl blood lclative, 01 to a pelSOI1 with whom 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
ofthe 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
prevai 1.
(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
Page 46
J
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, exeept 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 partieipants 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 polieies
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 I, 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 eosts for all professional
services rendered to the Board in connection with the purchase of years of Credited Service.
2. Tile lequcst sllall be l11ade olIly onGe and lllade by tile I\kl11bel DlI 01 bdOle tI.c. latGl
of eiglltcw (18) 11101Itlls [10m tile date of tile Oldil1al1ee adoptillg tIlis seGtiolI 01 eiglltGeI1 (18) nlolltIls
1'10111 tile date ofthGil wlplOYl11GlIt witll tile City ofOGocc. Multiple requests to purchase eredited
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 City 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 ofOcoee and
such credit shall count for all purposes, including vesting.
5. In no event, however, may Credited Serviee 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. MIL IT ARY 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 Forees 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
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 purehase of years of Credited Serviee.
2. Tile leque5t 51lall be l11ade 01.1)' Ollee al1d lllade by Melllbel 01101 bcfOle tile latCl of
eigllteell (18) I1lontl15 f10111 tile eff-ceti ve date of the oldill<tllCC adopting tllis scCtiOll 01 dglltecll (18)
l11ontll5 fl0111 the date of tllcil elllplo}ll1cllt with tile City of Ococc. Multiple requests to purehase
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 Government Service with jurisdictions other than the City
of Ocoee, shall be five (5) years.
5. 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 serviee 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 eontributes 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 eosts
Page 48
for all professional services rendered to the board in connection with the purchase of
years of credited service.
B. Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement.
C. Payment by the member 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
glven.
D. Service purchased pursuant to this section shall count for all purposes exeept vesting.
al1d eligibility for disability bChefits. The maximum combined purchase under this
section and sections 26 and 27 shall be five (5) years.
ksh \noc\ococe\gcn \0 5 -04 -09. ord
Page 49
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
Oeoee General Employces' Ret. Trust Fund
150 N. Lakeshore Drive
Ocoee, FL 34761
Re: City of Ocoee Municipal Gencral 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 Serviee, as well as other changes required by the Internal Revenue Code and Rcgulations
and changes to State law. Also included are the changcs YOll requested as identified in my
eorrespondence dated April 29,2009. The substantive changes are as follows:
1. Seetion I, Definitions, is being amended for Intcrnal Revenue Code (I RC) ehanges
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 ofOeoee prior to October 1, 1991
and who beeame or will become reemployed on or after October 1, 1991: 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 dcfinition 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.
5. 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 eomply with IRC ehanges
regarding non-spouse beneficiaries.
7. Seetion 8, Vesting, is being amended to remove language which conf1iets with the
new Seetion 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 Proeedures 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 Proeedures".
I 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 IRC 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 sueh orders. This amendment also allows a retiree
to direet retirement benefit deductions for payments to the City or to insurance
eompanies 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 Seetion 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 aecrued
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. Seetion 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;:Y'
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 ofOcoee
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
BUT SIGNED IN HIS ABSENCE
TO AVOID DELAY IN MAILING
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