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HomeMy WebLinkAboutItem #14 Second Reading of Ordinance - Amending the City of Ocoee Police Officers' & Firefighters' Trust Fund center of Good LJ ~ AGENDA ITEM COVER SHEET Meeting Date: September 21,2010 Item # \ L\ Contact Name: Contact Number: Charles J. Brown 407.905.3163 Reviewed By: Department Director: City Manager: Charles J. Brown Subject: Proposed Ordinance Amending the Police Officers' & Firefighters' Retirement Trust Background Summary: The Pension Board for the City of Ocoee Police and Fire Retirement Trust Fund is governed by ordinance. Issue: Amendment to the Police and Fire Pension Ordinance to include the Pension Protection Act of 2006 and subsequent regulations and guidance from the IRS, as well as other changes to the Internal Revenue Code and Regulations, changes to the State law and the adoption of Chapter 2009-07, Laws of Florida. Letter from Lee Dehner, P.A. summarizing proposed changes. Recommendations: It is the recommendation of the Police and Fire Pension board that the attached Ordinance amendment by approved as proposed. Attachments: An Ordinance amendment drafted by legal counsel for the Police and Fire Pension Board and Actuarial report of No Impact from Foster & Foster Actuarial Consultants Financial Impact: No Financial impact as stated by Foster and Foster Actuarial Consultants Type of Item: (please mark with an "x") Public Hearing Ordinance First Reading ~ Ordinance Second Reading Resolution _ Commission Approval Discussion & Direction For Clerk's Deaf Use: _ Consent Agenda _ Public Hearing _ Regular Agenda ~ Original DocumenUContract Attached for Execution by City Clerk _ Original DocumenUContract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by 0 Reviewed by legal counsel for P&F Pension Trust N/A N/A N/A Foster&Fos( )rINC. Actuarial Consultants for Retirement Programs June 23,2010 Mr. Pete Prior, Plan Administrator Benefits USA 3810 Inverrary Blvd., Ste 303 Lauderhlll, FL 33319 ~'~;~(:civ.:',( Re: City of Ocoee Police Officers' and Firefighters' Retirement Trust Fund JUN ~.~ 6 2010 l:,L~..I.0f1t<. TJ" "'.' '. \.It Dear Pete: In response to H. Lee Dehner's letter dated June 10, 2010, we have reviewed the proposed Ordinance, Identified on page 52 as ksh\noc\ksh\ocoee\pf\05-19- 10.rest, amending the Plan to include changes resulting from recent amendments to the Internal Revenue Code which apply to tax qualified pension plans, In addition to changes with the adoption of the Pension Protection Act of 2006 and Chapter 2009-97, Laws of Florida. We have determined that its adoption will have no impact on the assumptions used In determining the funding requirements of the program. Because the changes do not result In a change in the valuation results, it is our opinion that a formal Actuarial Impact Statement is not required In support of its adoption. However, since the Division of Retirement must be aware of the current provisions of all public pension programs, it Is recommended that you send a copy of this letter and a copy of the fully executed Ordinance to each of the following offices: Mr. Keith Brinkman Division of Retirement Bureau of Local Retirement Systems P. O. Box 9000 Tallahassee, FL 32315-9000 Ms. Patricia Shoemaker Division of Retirement Municipal Police and Fire Pens.ion Trust Funds P.O. Box 3010 Tallahassee, FL 32315-3010 If you have any questions, please let me know. Sincerely, ~ D uglas H. Lozen cc: H. Lee Dehner, Board Attorney 13420 Parker Commons Blvd., Suite 104 . Fort Myers, Florida 33912 . 239-433-5500 . Fax 239-481-0634. www.foster-foster.com ORDINANCE NO. AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELA TING TO THE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND; AMENDING AND RESTATING IN FULL, ORDINANCE NUMBER 91-09, AS SUBSEQUENTL Y AMENDED; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SECTION 1: Authority. The City Commission of the City of Ocoee has the authority to adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2: The present ordinances number 91-09,94-06 and 94-07, adopted by the City Commission ofthe City ofOcoee, are hereby amended and restated in full as set forth in THE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND, a copy of which is attached hereto, and by this reference made a part hereof. SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4. Severability. In the event any section, subsection, paragraph, sentence, clause, phrase or word of this ordinance shall be held invalid by a court of competent jurisdiction, then such invalidity shall not affect the remaining portions hereof. SECTION 5. Effective Date. This ordinance shall take effect upon second reading and adoption. PASSED AND ADOPTED this_ day of ,20_ APPROVED: A TTEST: CITY OF OCOEE, FLORIDA By: S. Scott Vandergrift, Mayor Beth Eikenberry, City Clerk (SEAL) ADVERTISED READ FIRST TIME READ SECOND TIME AND ADOPTED FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS_dayof ,20_. CHRISTIANSEN & DEHNER, P.A Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 20_ UNDER AGENDA ITEM NO. CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND SECTION 1. DEFINITIONS. 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, only that portion of any payment representing interest and any required actuarially calculated payments for the purchase of such Credited Service, shall be included in Accumulated Contributions. Actuarial Equivalent means dct"lluinc.d on th" basis of actualial "qui vakllGj USilIg assUll1ptions adopted by th" Doald such that b"ndit cakulations alC not subject to City DisclGtioll. a benefit or amount of equal value, based upon the RP2000 Combined Healthy Mortality Table (unisex) and an interest rate of eight (8%) per annum. This definition may only be amended by the City pursuant to the recommendation of the Board using assumptions adopted by the Board with the advice of the plan's actuary, such that actuarial assumptions are not subiect to City discretion. Average Final Compensation means one-twelfth (1/12) ofthe average Salary ofthe five (5) best years of the last ten (10) years of Credited Service prior to Retirement, termination, or death, or the career average as a full-time Police Officer or Firefighter, whichever is greater. A year shall be twelve (12) consecutive months. Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been designated in writing by the Member and filed with the Board. Ifno such designation is in effect, or ifno person so designated is living, at the time of death of the Member, the Beneficiary shall be the estate of the Member. Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as trustees of the Fund. City means City of Ocoee, Florida. Code means the Internal Revenue Code of 1986, as amended from time to time. Credited Service means the total number of years and fractional parts of years of service as a Police Officer or Firefighter with Member contributions, when required, omitting intervening years or fractional parts of years when such Member was not employed by the City as a Police Officer or Firefighter. A Member may voluntarily leave his or her Accumulated Contribution in the Fund for a period of five (5) years after leaving the employ of the Police or Fire Department pending the possibility of being reemployed as a Police Officer or Firefighter, without losing credit for the time that he or she was a Member of the System. If a vested Member leaves the employ of the Police or Fire Department, his or her Accumulated Contributions will be returned upon his or her written request. If a Member who is not vested is not reemployed as a Police Officer or Firefighter with the Police or Fire Department 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 Accumulated Contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon the written request of the Member and upon completion of -1- 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 a Member's Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and terminated. Upon any reemployment, a Police Officer or a Firefighter shall not receive credit for the years and fractional parts of years of service for which he has withdrawn his Accumulated Contributions from the Fund, unless the Police Officer or Firefighter repays into the Fund the contributions he has withdrawn, with interest, as determined by the Board, within ninety (90) days after his reemployment. The years or fractional parts of a year that a Member SGr vGS in thG military SGr v ice of thG Armed POle"s oftll" United States, thc UnitGd StatGs M"rGhant MalinG 01 the United StatGs Coast Guald, volU11tarily 01 involuntalily, 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.1 03-353) after separation from employment as a Police Officer or Firefighter with the City 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. :A:B. The Member nmst-return~ to his or her employment as a Police Officer or Firefighter within one (1) year from the earlier of the date of his or her military discharge or his or her release from service, unless otherwise required by USERRA. D. Th" Mcmber is entitled to reemployment under thG plOvisions of thG UniOOllllGd SGlviGGS Employmwt and RccnlploYl1lcnt Rights Aet (USERRA), (P.L. 103-353). C. The maximum credit for military service pursuant to this paragraph shall be five (5) years. D. This paragraph is intended to satisfvthe minimum requirements ofUSERRA. 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 ofthis System has also accumulated Credited Service in another pension system maintained by the City, then such other Credited Service shall be used in determining vesting as provided for in Section 9, and for determining eligibility for early or normal retirement. Such other Credited Service will not be considered in determining benefits under this System. Only his or her Credited Service and Salary under this System on or after his or her date of membership in this System will be considered for benefit calculation. In addition, any benefit calculation for a Member of this System who is or becomes eligible for a benefit from this System after he or she has become a member of another pension system maintained by the City, shall be based upon the Member's Average Final Compensation, Credited Service and benefit accrual rate as of the date the Member ceases to be a Police Officer or Firefighter. [frecti v e DatG mGans thG datG Oh which tIlis 01 diliallcc bGcoruGs d&eti v e. -2- Firefighter means an actively employed full-time person employed by the City, including his or her initial probationary employment period, who is certified as a Firefighter as a condition of employment in accordance with the provisions of 9633.35, Florida Statutes, and whose duty it is to extinguish fires, to protect life and to protect property. The term includes all certified. supervisory. and command personnel whose duties include. in whole or in part. the supervision. training, guidance. and management responsibilities of full-time firefighters. part-time firefighters. or auxiliary firefighters but does not include part-time firefighters or auxiliary firefighters. Fund means the trust fund established herein as part of the System. Member means an actively employed Police Officer or Firefighter who fulfills the prescribed membership requirements. Benefit improvements which, in the past, have been provided for by amendments to the System adopted by City ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to Members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Plan Year means the twelve (12) month period beginning October 1 and ending September 30 of the following year. Police Officer means an actively employed full-time person, employed by the City, including his or her initial probationary employment period, who is certified as a Police Officer as a condition of employment in accordance with the provisions of 9943 .1395, Florida Statutes, who is vested with authority to bear arms and make arrests, and whose primary responsibility is the prevention and detection of crime or the enforcement of the penal, traffic, or highway laws of the State of Florida. 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 for services rendered to the City as a Police Officer or Firefighter reported on the Member's W -2 form. excluding pay for police officers' extra duty details. plus all tax deferred or tax sheltered items of income derived from elective employee payroll deductions or salary reductions. Compensation in excess of the limitations set forth in Section 401 (a)(17) of the Code shall be disl egalded as of the first day ofthe 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 J anuarv 1. 2002. may not exceed $200.000. as adjusted for cost-of-living increases in accordance with Code Section 401(a)(l7)(B). Compensation means compensation during the fiscal year. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. If the determination period consists of fewer than 12 months. the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction. the numerator 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 subject to the applicable annual compensation limit in effect for that prior period. The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a Member before the first Plan Year beginning after December 31, 1995. -3- 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 Police Officers' and Firefighters' Retirement Trust Fund as contained herein and all amendments thereto. SECTION 2. MEMBERSHIP. 1. Conditions of Eligibility. All Police Officers and Firefighters as of October 1, 1991, and all future new Police Officers and Firefighters, shall become Members of this System as a condition of employment. 2. Membership. Each Police Officer or Firefighter shall complete a form prescribed by the Board providing for the designation of a Beneficiary or Beneficiaries. SECTION 3. BOARD OF TRUSTEES. 1. The sole and exclusive administration of and responsibility for the proper operation of the System and for making effective the provisions ofthis ordinance are hereby vested in a Board of Trustees. The Board of Trustees is hereby designated as the plan administrator. The Board shall consist offive (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 Members of the System, who shall be elected by a majority of the Police Officers and Firefighters 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 t\Vo (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 Police Officer or Firefighter 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 in office. DROP participants can be elected as but not vote for elected trustees. 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. 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 from voting as the result of a conflict of interest provided that Trustee states in writing the nature ofthe conflict. -4- 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 ofthe System and Fund. H. To have performed actuarial studies and valuations, at least as often as required by law, and make recommendations regarding any and all changes in the provisions of the System. I. To perform such other duties as are required to prudently administer the System. SECTION 4. FINANCES AND FUND MANAGEMENT. Establishment and Operation of Fund. 1. As part of the System, there exists the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, including the assets of any prior Municipal Police Officers' and Firefighters' 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 Police Officers' and Firefighters' Retirement Trust Fund may be deposited by the Board with the Finance Director of the City, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the City. However, any funds so deposited with the Finance Director of the -5- City shall be kept in a separate fund by the Finance Director or clearly identified as such funds of the Municipal Police Officers' and Firefighters' Retirement Trust Fund. In lieu thereof, the Board shall deposit the funds of the Municipal Police Officers' and Firefighters' Retirement Trust Fund in a qualified public depository as defined in g280.02, Florida Statutes, which depository with regard to such funds shall conform to and be bound by all ofthe provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an investment advisor registered under Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination ofthese, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all Fund assets. 4. All funds and securities 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. D. All mouies paid into 011ldd ill the fund shall be invested dud 1cilivcsted by tile Doal d a(ld tIle ill v estlllelit of all 01 My pal t of sueh fu(lds shall be limited ~ -6- (I) AllI1uity alid life il1SUIal1GC colltIacts ~ith lifc insUlallce, colllpallie,s in alllounts suffiGiGl1t to plovide" in wllole 01 in palt, the bCl1efits to which all of tbe Melllbcls ill tk [nlid sllall bc clititkd Ulldcl tIlC pI0 v isioliS oftllis Sy StGl1I and pay tbc il1itial alld .subscqucnt pi CIlli um tllCI con. (2) Tillie 01 saviIlgs ac.coullts ofa Ilatiollal balik, a state baIlk illsUlcd by tIIC Balik II1SUIallCC [Ulld 01 a saviligs/buildillg alid loan associatioll ili5Uled by tIIC Savillgs Association InsUlal1ce [Ulld V\<bicll is adnliliistucd by the redeIal Deposit II1SUlallCe COlpOlatiol1 01 a state 01 f-cdelal charteIcd clcdit unioli V\<hosc sLale accounts ale insUled by tile National CIcdit Uliiol1 Shalc InSUlaliCC PUIld. (3) ObligatiOlls of tk Ullited Statcs 01 obligatiolis gualallteed as to plillcipal aIld illtClCSt by tLe govelliIllcnt of tile Uliitcd States. (4) Bonds issued by the State, oflslael. (5) Stocks, cOInlhiligled funds adlllinisteIed by national 01 state ballks, IlIutual fUllds and bOl1ds 01 othel C v idellGcs of illdebtcdne,ss, pIO v ided that- (a) Execpt as Plovided ili paIaglapb (b), all ilidi vidually llcld equity and debt secUlities alld all equity aIld de,bt secUlitics ili a eOlllItliliglcd ollllutual fUlid I1IUSt be issued 01 gnal alitce,d by a e,olporatioli olganil.cd undcl tk laV\s of the Uliite,d States, any state, 01 oIgaliiz:cd te,llitOly of tIle Uliited Statcs, 01 tbe Dish ie,t of COluIllbia. (b) Up to tCII pel celit (10%) of the assets in tile PUlld Ihay bc iIlVC:StGd ill fOI cigli SCGUI ities. (c) Tllc Boald sllallliot invest nlOIC tLan fivc pelGCIlt (5%) of its asscts ili tIlC eon11I10II stock, capital stock, 01 COIl vel tible SCGUl itiGs of any OliC issuilig cOnlpany, 1101 sllall tk aggl (gate ill v estIllclit in ali) Oli(,; issuilig COIllpaliy exce,e,d fi v C pe,l GClit (5%) of the, outstalldiIlg capital stock of that COnlpaliy, 1101 sllall tk aggl cgate of its ili v cstnlGl1ts ill COIllIIIOIi stock, capital stock and collvcltibk sccUlitics at IlIaIkct excced sevcnty pelccnt (70%) oftllc asse,ts ofthc rUlid. 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 subiect to the following: ill Notwithstanding any limitation provided for in Chapter 185 and 175. 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 mav 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 -7- no event however. shall more than twenty-five percent of the assets of the Fund at market value be invested in foreign securities. ill The Board shall develop and adopt a written investment policy statement setting forth permissible types of investments. goals and obiectives of investments and setting quality and quantity limitations on investments in accordance with the recommendations of its investment consultants. The investment policy statement shall be reviewed by the Board at least annually. ill In addition. the Board may. upon recommendation by the Board's investment consultant make investments in group trusts meeting the requirements ofIntemal 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. At least once every three (3) years, and more often as determined by the Board, the Board shall retain a professionally qualified independent consultant, as defined in Sections 175.071 and 185.06, Florida Statutes, to evaluate the performance of all current investment managers and make recommendations regarding the retention of all such investment managers. These recommendations shall be considered by the Board at its next regularly scheduled meeting. D. 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 ofthe System. E. Neither the Board nor any Trustee shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his or its own negligence, willful misconduct or lack of good faith. F. 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. G. 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. -8- H. 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. I. 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. J. 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. K. The Board shall sustain no liability whatsoever for the sufficiency ofthe Fund to meet the payments and benefits herein provided for. M. 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 shall be required to make regular contributions to the Fund in the amount of seven and six tenths percent (7.6%) of his or her Salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board immediately after each pay period. 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. B. Method. Such contributions shall be made by payroll deduction. -9- 2. State Contributions. Any monies received or receivable by reason oflaws ofthe State of Florida, for the express purpose of funding and paying for retirement benefits for Police Officers and Firefighters of the CIty shall be deposited in the Fund comprising part ofthis System immediately and under no circumstances more than five (5) days after receipt by the City. 3. 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. diffrIenee in Gadl YGal, be.tween the total aggiGgatG MembGI contiibutions fol thG jGal, plus state. conttibutions [01 SUdI yeal, and the total cost fol thG yeal the required Citvcontribution, as shown by the most IGeent applicable actuarial valuation ofthe System. ThG total cost fOI any YGal shall be defined as the totalnollual cost plus the additional anlount sufficient to amoitizG thG unfunded past SCl v ice liabili ty as pi 0 v ide.d in r al t VII of Chapt"l 112, fololida Statutes. 4. 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 normal retirement date shall be the first day of the month coincident with, or next following the earlier of the completion of twenty-five (25) years of Credited Service, regardless of age, or the attainment of age fifty-five (55) and the completion of ten (10) 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 of the month coincident with or 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 and one-half percent (3.5%) of Average Final Compensation, for each year of Credited Service. 3. Early Retirement Date. A 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 forty-five (45) and the completion of five (5) 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. -10- 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 determined based upon his or her actual years of Credited Service 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 on 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, determined based upon his or her actual years of Credited Service; 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, reduced by three percent (3%) for each year to age 50 and actuariallyreduced from age 50 to age 45, by which the commencement of benefits precedes the date which would have been the Member's normal retirement date determined based upon his actual years of credited service. 5. Supplemental Benefit. Effective October 1,2004, all current and future retirees and effective October 1, 2008 only those who retired prior to October 1,2008, retired under the early or normal retirement provision, their joint pensioners or beneficiaries, shall receive a supplemental benefit in the amount of two hundred dollars ($200) per month reduced as for early retirement if applicable. Disability retirees and vested terminated persons shall not receive this supplement. 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-halfOOY2) orthe calendar vear in which the Member terminates employment with the City. SECTION 7. PRE-RETIREMENT DEATH. 1. Prior to Vesting or Eli gibilitv 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%) ofthe 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 If the 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 -11- normal retirement, 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. The 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 or early 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 10, subsection 7. D. A Spouse Beneficiary may, in lieu of any benefit provided for in A or B above, elect to receive a refund of the deceased Member's Accumulated Contributions. E. Notwithstanding anything contained in this Section to the contrary. in any event, distributions to the Spouse Beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Member died. or by a date selected pursuant to the above provisions in this Section that must be on or before December 31 of the calendar year in which the Member would have attained 70Yz. F. If the surviving Spouse Beneficiary commences receiving a benefit under subsection A or B above. but dies before all payments are made. the actuarial value of the remaining benefit will be paidto the Spouse Beneficiary's estate in a lump sum. .1 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 Beneficiarv. The Beneficiary of any Member who dies and who. at the date of his 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 [or normal retirement based on the deceased Member's Credited Service and A verage Final Compensation and actuarially reduced to reflect the commencement of benefits prior to the normal retirement date. B. If the deceased Member was eligible for normal or early retirement. the Beneficiary will receive a benefit payable for ten (10) years. beginning on the first day of the month following the Member's death. The benefit will be -12- calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his death and reduced for early retirement. if applicable. C. A Beneficiary may not elect an optional form of benefit. however the Board may elect to make a lump sum payment pursuant Section 10. 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 Beneficiarv's estate by December 31 of the calendar year of the Beneficiary's death in a lump sum. F. Inhere is no surviving Beneficiary as of the Member's death. and the estate is to receive the benefits. the actuarial equivalent of the Member's entire interest must be distributed by December 31 of the calendar year containing the fifth anniversary of the Member's death. G. The Uniform Lifetime Table in Treasury Regulations & 1.40 l( a)(9)-9 shall determine the payment period for the calendar year benefits commence. if necessarv to satisfy the regulations. SECTION 8. DISABILITY. 1. Disability Benefits In-Line of Duty. Any Member who shall become totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer or Firefighter, which disability was directly caused by the performance of his or her duty as a Police Officer or Firefighter, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to three and one-half percent (3.5%) of his or her Average Final Compensation multiplied by the total years of Credited Service, but in any event the minimum amount paid to the Member shall be forty-two percent (42%) of the Average Final Compensation of the Member. Terminated persons, either vested or non- vested, are not eligible for disability benefits, except that those terminated by the City for medical reasons may apply for a disability within thirty (30) days after termination. 2. In-Line of Duty Presumptions. A. Presumption. Any condition or impairment of health of a Member caused by hypertension or heart disease shall be presumed to have been suffered in line of duty unless the contrary is shown by competent evidence, provided that such Member shall have successfully passed a physical examination upon entering into such service,' including a cardiogram for Police Officer Members, which examination failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance. B. Additional Presumption. The presumption provided for in this subparagraph B. shall apply only to those conditions described in this subparagraph B. that are diagnosed on or after January 1, 1996. -13- (1) Definitions. As used in this subsection 2.B., the following definitions apply: (a) "Body fluids" means blood and body fluids containing visible blood and other body fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the Centers for Disease Control, apply. For purposes of potential transmission of meningococcal meningitis or tuberculosis, the term "body fluids" includes respiratory, salivary, and sinus fluids, including droplets, sputum, and saliva, mucous, and other fluids through which infectious airborne organisms can be transmitted between persons. (b) "Emergency rescue or public safety Member" means any Member employed full time by the City as a firefighter, paramedic, emergency medical technician, law enforcement officer, or correctional officer who, in the course of employment, runs a high risk of occupational exposure to hepatitis, meningococcal meningitis, or tuberculosis and who is not employed elsewhere in a similar capacity. However, the term "emergency rescue or public safety Member" does not include any person employed by a public hospital licensed under Chapter 395, Florida Statutes, or any person employed by a subsidiary thereof. (c) "Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A, hepatitis non-B, hepatitis C, or any other strain of hepatitis generally recognized by the medical community. (d) "High risk of occupational exposure" means that risk that is incurred because a person subject to the provisions of this subsection, in performing the basic duties associated with his or her employment: 1. Provides emergency medical treatment in a non- health-care setting where there is a potential for transfer of body fluids between persons; II. At the site of an accident,. fire, or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids; Ill. Engages in the pursuit, apprehension, and arrest of law violators or suspected law violators and, in performing such duties, may be exposed to body fluids; or IV. Is responsible for the custody, and physical restraint when necessary, of prisoners or inmates within a prison, jail, or other criminal detention facility, while on work detail outside the facility, or while being -14- transported and, in performing such duties, may be exposed to body fluids. ( e) "Occupational exposure," in the case of hepatitis, meningococcal meningitis, or tuberculosis, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection. (2) Presumption. Any emergency rescue or public safety Member who suffers a condition or impairment of heal th that is caused by hepatitis, meningococcal meningitis, or tuberculosis, that requires medical treatment, and that results in total or partial disability or death shall be presumed to have a disability suffered in the line of duty, unless the contrary is shown by competent evidence; however, in order to be entitled to the presumption, the Member must, by written affidavit as provided in Section 92.50, Florida Statutes, verify by written declaration that, to the best of his or her knowledge and belief: (a) In the case of a medical condition caused by or derived from hepatitis, he has not: 1. Been exposed, through transfer of bodily fluids, to any person known to have sickness or medical conditions derived from hepatitis, outside the scope of his employment; 11. Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with his present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for hepatitis, which tests failed to indicate the presence of hepatitis; Ill. Engaged in unsafe sexual practices or other high-risk behavior, as identified by the Centers for Disease Control or the Surgeon General ofthe United States or had sexual relations with a person known to him to have engaged in such unsafe sexual practices or other high-risk behavior; or IV. Used intravenous drugs not prescribed by a physician. (b) In the case of meningococcal meningitis, in the 10 days immediately preceding diagnosis he or she was not exposed, outside the scope of his or her employment, to any person known to have meningococcal meningitis or known to be an asymptomatic carrier of the disease. (c) In the case of tuberculosis, in the period of time since the Member's last negative tuberculosis skin test, he or she has not been exposed, outside the scope of his or her employment, to any person known by him or her to have tuberculosis. -15- (3) Immunization. Whenever any standard, medically recognized vaccine or other form of immunization or prophylaxis exists for the prevention of a communicable disease for which a presumption is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies established by the Advisory Committee on Immunization Practices of the U.S. Public Health Service, an emergency rescue orpublic safety Member may be required by the City to undergo the immunization or prophylaxis unless the Member's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the Member's health. Absent such written declaration, failure or refusal by an emergency rescue or public safety Member to undergo such immunization or prophylaxis disqualifies the Member from the benefits of the presumption. (4) Record of Exposures. The City shall maintain a record of any known or reasonably suspected exposure of an emergency rescue or public safety Member in its employ to the disease described in this section and shall immediately notify the Member of such exposure. An emergency rescue or public safety Member shall file an incident or accident report with the City of each instance of known or suspected occupational exposure to hepatitis infection, meningococcal meningitis, or tuberculosis. (5) Required medical tests; preemployment physical. In order to be entitled to the presumption provided by this section: (a) An emergency rescue or public safety Member must, prior to diagnosis, have undergone standard, medically acceptable tests for evidence ofthe communicable disease for which the presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection, or, in the case of hepatitis infection. This paragraph does not apply in the case of meningococcal meningitis. (b) On or after June 15, 1995, an emergency rescue or public safety Member may be required to undergo a preemployment physical examination that tests for and fails to reveal any evidence of hepatitis or tuberculosis. 3. Disability Benefits Not-In-Line of Duty. Any Member with ten (10) years or more Credited Service who shall become totally and permanently disabled to the extent that he or she is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer or Firefighter, which disability is not directly caused by the performance of his or her duties as a Police Officer or Firefighter shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to three and one-half percent (3.5%) of his or her Average Final Compensation multiplied by the total years of Credited Service. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the City for medical reasons may apply for disability within thirty (30) days after termination. -16- 4. Conditions Disqualifying Disability Benefits. Each Member who is claiming disability benefits shall establish, to the satisfaction of the Board, that such disability was not occasioned primarily by: A Excessive or habitual use of any drugs and/or intoxicants, or narcotics. B . Injury or disease sustained whil e will full y and ill egall y parti cipating in ri ghts, riots and/or civil insurrections or while committing a crime. C. Injury or disease sustained while serving in any branch of the Armed Forces. D. Injury or disease sustained after his or her employment as a Police Officer or Firefighter with the City of Ocoee shall have terminated. E. For Police Officer Members, injury or disease sustained while working for anyone other than the City and arising out of such employment. 5. Physical Examination Requirement. A Member shall not become eligible for disability benefits until and unless he or she undergoes a physical examination by a qualified physician or physicians and/or surgeon or surgeons, who shall be selected by the Board for that purpose. The Board shall not select the Member's treating physician or surgeon for this purpose except in an unusual case where the Board determines that it would be reasonable and prudent to do so. Any Retiree receiving disability benefits under provisions of this ordinance may be periodically re-examined by a qualified physician or physicians and/or surgeon or surgeons who shall be selected by the Board, to determine if such disability has ceased to exist. If the Board finds that the Retiree is no longer permanently and totally disabled to the extent that he or she is unable to render useful and efficient service as a Police Officer or Firefighter, the Board shall recommend to the City that the Retiree be returned to performance of duty as a Police Officer or Firefighter, and the Retiree so returned shall enjoy the same rights that he or she had at the time he or she was placed upon pension. In the event the Retiree so ordered to return shall refuse to comply with the order within thirty (30) days from the issuance thereof, he or she shall forfeit the right to his or her pension. The cost of the physical examination and/or re-examination of the Member claiming or Retiree receiving disability benefits shall be borne by the Fund. All other reasonable costs as determined by the Board incident to the physical examination, such as, but not limited to, transportation, meals, hotel accommodations, shall be borne by the Fund. If the Police Officer or Firefighter recovers from disability and reenters the service of the City as a Police Officer or Firefighter, his or her service will be deemed to have been continuous, but the period beginning with the first month for which he or she received a disability retirement income payment and ending with the date he or she reentered the service of the City will not be considered as Credited Service for the purposes of the System. The Board shall have the power and authority to make the final decisions regarding all disability claims. -17- 6. Disability Payments. The monthly benefit to which a Member is entitled in the event of the Member's disability retirement shall be payable on the first day of the first month after the Board of Trustees detennines such entitlement. However, the monthly retirement income shall be payable as of the date the Board determined such entitlement, and any portion due for a partial month shall be paid together with the first payment. The last payment will be: A If the Retiree recovers from the disability pI i01 to his 01 Itc.! HOllnall e.til e.lllGllt date, the payment due next preceding the date of such recovery, or B. If the Retiree dies without recovering from disability 01 attaih5 his 01 hGI 1l01lnallGti1Gl1lGnt date. whik, still disabled, the payment due next preceding his or her death or the 120th monthly payment, whichever is later. Provided, however, the disability Retiree may select, at any time prior to the date on which benefit payments begin, an optional form of benefit payment as described in Section 10, subsection 1.A. or 1.B., which shall be the Actuarial Equivalent of the normal fonn of benefit. 7 . Workers' Compensation. When a Retiree is receiving a disability pension and workers' compensation benefits pursuant to Florida Statute Chapter 440, for the same disability, and the total monthly benefits received from both exceed one hundred percent (100%) of the Member's average monthly wage, as defined in Chapter 440, Florida Statutes, the disability pension benefit shall be reduced so that the total monthly amount received by the Retiree does not exceed one hundred percent (100%) of such average monthly wage. The amount of any lump sum workers' compensation payment shall be converted to an equivalent monthly benefit payable for ten (10) Years Certain by dividing the lump sum amount by 83.9692. Notwithstanding the foregoing, in no event shall the disability pension benefit be reduced below the greater offorty-two percent (42%) of Average Final Compensation and two percent (2%) of Average Final Compensation times years of Credited Service. SECTION 9. VESTING. If a Member terminates his or her employment with the Police or Fire Department, 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. If the Member has five (5) 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 Member's otherwise normal or early retirement date, determined based upon his or her actual year of Credited Service, provided he or she does not elect to withdraw his or her Accumulated Contributions and provided Member survives to his or her otherwise 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. -18- J. All)' Y estcd :?vfGmb('l of the S)'St\.IH tv bOSG positioll is tellllil1atGd, fOl tv hatGY GIl caSOll, but who 1 clllaillS cluploYGd by th(, City ill S0111G OtllGl capacity, shall ha Y (, alII ctil Cn1wt bCIKfits acu (lcd up to thc datc of such tCI1l1il1atioll und\.l this Sy5tGm PICS(,l yed, PlOY idGd hc 01 51lG dOGS 110t elect to withdIatv llis olllel Accumulatcd Contlibutiolls flOlll tllis S)'~tcm. Such ae(,!Uc,d lctil(,lll(,llt bCl1(,fits sllall b(, payable. at llis 01 hel oth\.lwi6e caily (l(,duccd as fOI (,aily lctil(,lliGl1t) 01 1l01l1lal I ctilGm(,llt datc hGICdhdcl, 01 latcl, ill aC(.Qldc:1l1cG with thG ployisiollS of this System. SECTION 10. 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: A. A retirement income of a larger monthly amount, payable to the Retiree for his or her lifetime only. B. A retirement income of a modified monthly amount, payable to the Retiree during the lifetime of the Retiree, and following the death ofthe Retiree, one hundred percent (1 00%), seventy-five percent (75%), sixty-six and two-thirds percent (66-2/3%), or fifty percent (50%) of such monthly amounts payable to a joint pensioner for his or her lifetime. 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 regu1ations.(See 0 & A-2 of 1.401 (a)(9)-6) C. Such other amount and form of retirement payments or benefits as, in the opinion of the Board, will best meet the circumstances of the retiring Member. A lump sum benefit will be approved by the Board only in accordance with subsection 7 of this Section 10. D. A member may elect a percentage of benefit in a lump sum as follows: (1) Five (5) percent lump sum benefit with ninety-five (95) percent paid under the normal form or as per A, B. or C. above. (2) Ten (10) percent lump sum benefit with ninety (90) percent paid under the normal form or as per A, B. or C. above. (3) Fifteen (15) percent lump; sum benefit with eighty-five (85) percent paid under the normal form or as per A., B. or C. above. (4) Twenty (20) percent lump sum benefit with eighty (80) percent paid under the normal form or as per A, B. or C. above. 2. The Member, upon electing any option of this Section, will designate the joint pensioner (subsection 1.B. above) or Beneficiary (or Beneficiaries) to receive the benefit, if any, payable under the System in the event of Member's death, and will have the power to change such designation from time to time. Such designation will name ajoint pensioner or one or more primary Beneficiaries where applicable. A Member may change his or her beneficiary at any time. If a Member has elected an option with ajoint pensioner and the Member's retirement income benefits have commenced, the Member may thereafter change his or her designated Beneficiary at any time, but may only change his or her joint pensioner twice. Subject to the restriction in the previous -19- sentence, a Member may substitute a new joint pensioner for a deceased joint pensioner. In the absence of proof of good health of the ioint pensioner being replaced, the actuary will assume that the ioint pensioner has deceased for purposes of calculating the new pavrnent. 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 joint pensioner in accordance with this Section, the amount of the retirement income payable to the Retiree shall be actuarially redetermine to take into account the age of the former joint pensioner, the new joint pensioner and the Retiree and to ensure that the benefit paid is the Actuarial Equivalent of the Retiree's then-current benefit at the time of the change. Any such Retiree shall pay the actuarial recalculation expenses. Each request for a change will 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 11. 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 of the remaining payments be paid in a lump sum and in accordance with Section 11. 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 (70Yz) -20- 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 lllolithly bendlt amount i5 k55 than one hundled dollal5 ($100.00) 01 the total GOlllnluted value of the lell1.ailiihg l11ont111y incollle paylllents to be. paid do not exceed fi. ve. thousand dollals ($5,000.00) total commuted value of the monthly income payments to be paid do not exceed one thousand dollars ($1,000). Any such payment made to any person pursuant to the power and discretion conferred upon the Board by the preceding sentence shall operate as a complete discharge of all obligations under the System with regard to such Member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. SECTION 11. 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 by such Member or Retiree by signing and filing with the Board a new designation-of-beneficiary form. Upon such change, the rights of all previously designated Beneficiaries to receive any benefits under the System shall cease. 2. If a deceased Member or Retiree failed to name a Beneficiary in the manner prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Member or Retiree predeceased the Member or Retiree, the death benefit, if any, which may be payable under the System with respect to such deceased Member or Retiree shall be paid to the estate of the Member or Retiree and the board, in its discretion, may direct that the commuted value of the remaining monthly income benefits be paid in a lump sum. 3. Any payment made to any person pursuant to this Section shall operate as a complete discharge of all obligations under the System with regard to the deceased Member and any other persons with rights under the System and shall not be subject to review by anyone but shall be final, binding and conclusive on all persons ever interested hereunder. SECTION 12. CLAIMS PROCEDURES. 1. The Board shall establish administrative claims procedures to be utilized in processing written requests ("claims"), on matters which affect the substantial rights of any person ("Claimant"), including Members, Retirees, Beneficiaries, or any person affected by a decision of the Board. 2. The Board shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at any proceedings provided for in the Board's claims procedures. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. -21- SECTION 13. REPORTS TO DIVISION OF RETIREMENT. Each year and no later than March 15th, the Board shall file an Annual Report with the Division of Retirement containing the documents and information contained in Sections 175.261 and 185.221, Florida Statutes. SECTION 14. 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 and Retirees in such a manner as to show the name, address, date of employment and date of termination of employment. SECTION 15. MAXIMUM PENSION. 1. Dasie Limitation. Subject to the adjustments hGleinaftel set faIth, the. nlaximulll amount of annual lcti1e.lIlWt inwme. payable ~ ith Ie.spe..et to a Me!lIbe.r unde! this Systwl 5hall not e..xeee.d olle..llundr cd ~ixty thousand dollars ($1 GO,OOO.OO). fOI 'pU! poses of applying the.. abov dirliitatioli, bGlldits payable.. in any f01l11 other than a stlaight life. annuity with no alleillalY bwe..fit5 shall be.. adjuste..d, as provide..d by Tle.aSUly Regulations, so that such bcne.fits are the Actu<l!ial cquivale..nt of a st!aight lif(, alinuity. for pul pose..s of tllis Se.etion, the follow ing bwe..fits shall not be. takc..n ilito account. (1) Any ancillary bwefit which is not dile..etly lc..lated to letile..mc..nt income bCIl.e..fits, (2) Any oHlc! bwe..fit not le..quired unde..! S415(b)(2) of the Code and Regulations the..leundGI to bc takell into aewunt for pUlposes of the 1il1litatioll of S415(b)(1) of the Code. 2. Par tieipat;oll in Othel De..fined Dwefit Plalls. The limitatioli of tllis Section ~ ith r cspee..t to ally Me..mbel who at any time has be..ell a ulerliber irl any Othe..l define.d benefit Plan (as de..fined in S414U) o[the.. Code) lIl.aintained by thc City sllall apply as if the. total bGIle..fit5 payablc. ulldcl all de..fill.e..d be..ndit plans in which the Membcl ha5 be.cli a nlellibe..l we..!e payable frolll. one plan. J. Adil1strlle.llts ill Limitatiolls. A. Ill. the event the.. Mcrnbel's le..tironlc..nt belie.fits bew!ue payable bc..fole. age sixty-two (G2), the. one. hundled sixty thousalld dollars ($lGO,OOO.OO) limitation ple..s~llbed by this Sc,ction sllall be reduced ill aceordMlee.. with Re.gu1ation5 issue..d by the Scere..tary ofthe Tlcasury pu!sualit to the plOY isiollS of S415(b) of the Code, but not le..5S than se..vcnty-five. thousand dollals ($75,000), ifthe bGncfit begill5 at 01 aftel age fifty-fi ve (55). 111 tIle ev e..llt the. MembGl's rGtilemcnt bc..ne.fit bCCOllle.~ payable bc..forc age, fifty fi vG (55), the se..v e.l1ty-fi ve.. thousand dollal ($75,000) limitatioll shall be.. I educed froll.1 age fifty-fIve (55) in dCWld<lnce with Regulations i55ued by the SGGlctalY of the Treasury PUlsudlit to tIle.. plovisiollS of S415(b) of the.. Code. -22- D. III the event the M\..lubel's bellefit is based on at least fiftcen (15) years of Ccditcd SClviee, tIle adjustulellts Plovided ful ill A. above shall not apply. C. Tlleledudiolls Plovided ful in A. above shall not be applicable to disability benefits paid pUlsuant to Section 8, 01 ple-lctilelUent death b(.llefits paid pUlSUallt to See-tion 7. D. In tIIC (.vGllt th(. MGlubGl'Slc.til(.lU(.llt benefit be-comes payable aftcl age- sixty- five (G5), fol pulposes of det('lmining whethel this bencfit meds the limitation sd forth in Subse-dioll 1 helCill, SUdl benefit sllall be adjustcd so that it is aduarially eq ui valcllt to the benefit beginning at age sixty-fi v (. (G5). This aJj ustnl(.nt shall b(. made. USillg an a5sume.d int('lest late. of fi ve pel cent (5%) and sllall bc 111adc in ae-coldanc(. with legulations Plomulgated by the Secr ctary 0 f the Tl easul y 01 his 01 h('l ddcgatc. 4. L(.5s than Ten YcalS ofSelvice. Thcmaximum lctil(.ment bene.fits payable undel this Sedion to ally Mcnlbcl who has completed kss than tell (10) ye.alS ofCleditcd Sel v ice. with the City shall bc the amount cletellnincd undel Subsection 1 of this Section multiplied by a [1 action, the llUll1elatol of which is th(. numbel of the M(.ulbel's }'ealS of Cr edited Sel v iee alld the dvnominatol of w hiGh is ten (10). The 1 cductiOll plovid"d fol in this stlbsedion shall not be. applicable to disability benefits paid pUlsuant to Section 8, 01 Pi e-l etil elllcnt death bCllcfi ts paid 11 Ulsuant to Section 7. 5. $10,000 Limit. Notwith~tanding the fOlegoing, th(. letilement benefit payable with lesped to a MCll1bcI shall be dcemed not to exceed the limitations set forth in this Section ifthe bel1efits payabk, with I espect to such Menlbcl Ulldel this System and undel all othel qualified defined be.ne.fit PWSiOll plans to which the City contI ibutes, do not eAceed $10,000 fOI the applicable Plan Yeal and fOl allY pliol Plan Y cal alld the City has not at any till1e nlaintained a qualified dcfilled cOlltlibution plall in whic.ll the Membcl padicipated. G. Membel in Dcfined Conti ibution Plan. III any case w llel e a Membel Ulld\..l this System is also a nle.nlbel ill a "Defined Contributioll Plan" as dcfincd in S414(i) o[ the. Code, maintained by tIle City, the SuuI of the "Defined Dcnefit Plal1 Plaetioll." and the "Defined COlltribution Plan fraGtioll" (both as defilled iu s415(e) of the Code) shall not, subject to the IestlictioM and exceptions contailll~,d in S2004 of the Act, eAced 1.0. This limitation is 1 (.pealcd GffGe.tive Jall.Ual)' 1,2000. 7. Redudion ofbenef'its. Reduction of bene.fits alld/ol contlibutions to all plans, whelc lequiled, shall be accomplished by fi15t I educin::; the M(.lnbel '5 ben(.fit undel allY defincd benefit pIMS in which Membel pal ticipated, such 1 eduction to be;, made filst with 1 esped to the plan in which Merl1bel most 1 ecelltly aCCl ued benefits and thereaftel in SUell pliOlity as shall be dc.telluiucd by tIle Doald alld the plall aJminis11 atol of such othcl plans, alld nCAt, by 1 educillg 01 allocating, excess for fei tUl es for dcfilled COlltI ibutioll plans ill v\i hieh the Member pal ticipated, such I eduction to be made filSt with 1 esped to the plan in which MeUlbe1 rllost I eeently aGGl tled benefits alld theleaftel ill such pI iOl ity as shall be estab1ishe-d by tile DO<lld ilIld the plan adnlinistlatol fOl such othe1 plalls provided, howe-vcl, that neCeSSM)! ledaetions ilia}' be 111ade ill a different Hlanne-1 and priolity pUlsuant to the a::;leement of the Doald ahd the- plan administ1cltol of all othel plans covGliug Such MC1lLbel. -23- 8. Cost-of-Li v ild!. Adiustl11GlltS. ThG lil11itatiollS as statGd ill Subscdiol1s 1,2, J, and G hClein shall be adjusted to tIle till1e payl11Gllt ofa benefit begins in aeeoldalleG WitIl any cost-oF-living, adjustl11Gnts pleselibed by the SeGlctalY ofthG Tlea5(uy p(l1suant to S415(d) oftlle Code. 9. Additiollal Lilliitatioll 011 ren5iol1 Del1Gfits. Not withstanding anything hel Gill to tll~ conti ary. A. Thc nOllna1retilelllent benGfit 01 PWSiOll payable. to a Rctilce ~llo becoll1es a MWlbGl of the SyStGll1 and who lias not pleviously paltieipated in sueh SY5tell1, on 01 aftGI JanudlY 1, 1980, ..,hallnot exceed 100 pCI ewt of his 01 her AvGlag,e final C0111pGnsation. 1I0wo\-el, nothing eOlltained in this S~etioli shall apply to Suppklllental letilGl11ent bweuts 01 to pension il1elGasGS attIibutablc to cost-oF-Ii v ing inGl eaSGS 01 adj ustmwts. D. No MGmbGI onhe SystGm shall bc allowGd to leceive a letilGl11wt bel1efit 01 pwsion w hieh is in pal t 01 ill whole. based upon any SCI v ice ~ ith I esped to wllich the. MGl11bcI is alleady IccGivine" 01 willlGceivc in the. futule, a letil GmGnt benefit 01 pel1sion flom a diffelcnt Gmploycl'.5 IGtil Cll1wt systcm 01 p1all. This I est! ietioll docs not apply to sOGial SCClU ity b~ncfit.., 01 f,dcl.11 bencfits under Chaptel 67, TitlG 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 in Code Section 415(b) and subiect to any additional limits that may be specified in this System. For purposes of this Section, "limitation year" shall be the calendar year. 2. Adiustments to Basic Limitation for Form of Benefit. If the form of benefit without regard 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 actuariallyequivalent amount (determined using the assumptions specified in Treasury Regulation Section 1.415(b )-l( c)(2)(ii)) that takes into account the death benefits under the form of benefit. ~ Benefits Not Taken into Account. For purposes of this Section, the following benefits shall not be taken into account in applying these limits: A. Any ancillary benefit which is not directly related to retirement income benefits: B. Any other benefit not required under &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 ). -24- 4. COLA Effect. Effective on and after January 1,2003, 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 starting date, as increased in subsequent years pursuant to Code Section 415(d) and the regulations thereunder. Unless otherwise specified in the System, for purposes of applying the limits under Code Section 415(b). a Member's applicable limit will be applied taking into consideration cost of living increases as required by Section 415(b) of the Code and applicable Treasury Regulations. ~ Other Adiustments in Limitations. A In the event the Member's retirement benefits become payable before age sixty-two (62). the limit prescribed by this Section shall be reduced in accordance with regulations issued by the Secretary 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). 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 adiustments provided for in A above shall not apply. C. The reductions provided for in A. above shall not be applicable to disability benefits pursuant to Section 8, or pre-retirement death benefits paid pursuant to Section 7. D. In the event the Member's retirement benefit becomes payable after age sixty- five (65), for purposes of determining whether this benefit meets the limit set forth in subsection 1 herein. such benefit shall be adiusted so that it is actuarially equivalent to the benefit beginning at age sixty-five (65). This adiustment shall be made in accordance with regulations promulgated bv the Secretary of the Treasury or his delegate. 6. Less than Ten (10) Years of Service. The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10) years of Credited Service with the City shall be the amount determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of the Member's years of Credited Service and the denominator of which is ten (10). The reduction -25- provided by this subsection cannot reduce the maximum benefit below 10%. The reduction provided for in this subsection shall not be applicable to disability benefits paid pursuant to Section 8. or pre- retirement death benefits paid pursuant to Section 7. L. Participation in Other Defined Benefit Plans. The limit of this Section with respect to any Member who at any time has been a member in any other defined benefit plan as defined in Code Section 414(i) maintained by the City shall apply as if the total benefits payable under all City defined benefit plans in which the Member has been a member were payable from one plan. ~ Ten Thousand Dollar ($10,000) Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limit set forth in this Section ifthe benefits payable, with respect to such Member under this System and under all other qualified defined benefit pension plans to which the City contributes. do not exceed ten thousand dollars ($10,000) for the applicable Plan Year and for any prior Plan Year and the City has not any time maintained a qualified defined contribution plan in which the Member participated. 9. Reduction of Benefits. Reduction of benefits and/or contributions to all plans. where required. shall be accomplished by first reducing the Member's benefit under any defined benefit plans in which Member participated. such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be determined by the Board and the plan administrator of such other plans. and next, by reducing or allocating excess forfeitures for defined contribution plans in which the Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by the Board and the plan administrator for such other plans provided, however. that necessary reductions may be made in a different manner and priority pursuant to the agreement ofthe Board and the plan administrator of all other plans covering such Member. ~ Service Credit Purchase Limits. A. Effective for permissive service credit contributions made in limitation years beginning after December 3 L 1997. if a Member makes one or more contributions to purchase permissive service credit under the System. as allowed in Section 26 and 28. 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 subparaQ;raph (2) the System will not fail to meet the percentage -26- limitation under Section 415( c) (1 )(8) of the Code solely by reason of this subparagraph (3). R 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 R(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 app1ving the limits in this subsection 10., only and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a calendar year, except as noted below and as permitted by Treasury Regulations Section 10415( 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 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)(l )(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 2 Y2 months after an employee's severance from employment or the end of the calendar year that includes the date of the employee's severance from employment if: -27- W 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 ill 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 10415( c)-2( g)(8). shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition. D. Notwithstanding any other provision of law to the contrary, the Board may modify a request by a Member to make a contribution to the System if the amount ofthe contribution would exceed the limits provided in Code Section 415 by using the following methods: ill If the law requires a lump sum payment for the purchase of service credit the Board may establish a periodic payment deduction plan for the Member to avoid a contribution in excess of the 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. lL. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A The normal retirement benefit or pension payable to a Retiree who becomes a Member of the System and who has not previously participated in such System, on or after J anuarv 1, 1980, shall not exceed one hundred percent (100%) of his Average Final Compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. B. No Member of the 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 applv to social security benefits or federal benefits under Chapter 67. Title 10, U.S. Code. -28- SECTION 16. MINIMUM DISTRIBUTION OF BENEFITS. 1. General Rules. A. Effective Date. Effective as of January 1, 1989, the Plan will pay all benefits in accordance with a good faith interpretation of the requirements of Code Section 401(a)(9) and the regulations in effect under that section. as applicable to a governmental plan within the meaning of Code Section 414( d). Effective on and after January 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 of this Section will take precedence over any inconsistent provisions of the Plan. C. Rc-C!uil\"lllellts of TIC-MUly Rq~,ulatloll.s InGOlpolated. All di5tl~butiol1s lequllcd und"l tills Section will be ddelmlned ahd lllade in aeeOldaneG ~ith the TlcasUlY legulatiolls dndel Sectio1l401(a)(9) of tile Code. 9 C. TEFRA Section 242(b )(2) Elections. Notwithstanding the other provisions of this Section other than this subsection 1.9 C., distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b )(2) ofthe Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that related to Section 242(b)(2) ofTEFRA. 2. Time and Manner of Distribution. A Required Beginning Date. The Member's entire interest will be distributed, or begin to be distributed, to the Member no later than the Member's required beginning date which shall not be later than April 1 of the calendar year following the later of the calendar year in which the Member attains age seventy and one-half (70 Y2) or the calendar year in which the Member retires dllkss OthGIV\1i6G plovidGd fOI ill the Plall 01 lequiled by law terminates employment with the City. B. Death of Member Before Distributions Begin. If the Member dies before distributions begin, the Member's entire interest will be distributed, or begin to be distributed no later than as follows: (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 of the 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 ~, 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 of the calendar year immediately following the calendar year in which the Member died. -29- (3) If there is no designated beneficiary as of September 30 of the year following the year of the 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 if the surviving spouse were the Member. For purposes of this subsection 2.B. and subsectioh 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. e 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 ofsubseetiol15 J, 4 ahd 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 40 I (a)(9) of the Code and Treasury regulations. Any part of the 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. 3. Determination of Amount to be Distributed Each Year. A General All11uity 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 distIibutioh peliod ~ill be Ove.1 a life. (01 lives) 01 OvCI a pCliod eel taiiJ hot 100lgel tItan tile pGI iod de.seI ibed ill subseetioh 4 01 5. (J) Once payllleIJts llave begUlI OvCI a peliod eeltaiiJ, tk peliod eGltain ~ill 110t be ehaIlged evell if tk pCliod cGltail1 is S11011e.1 thal1 the 111axilllUllI pCI11litte.d. -30- (4) raylllcllts will citheI be 1I0llillClcasillg, 01 illclca5e ollly as follo\"s. (a) Dy all allllual pucentage illGleasc that docs IIOt exceed tllc cUlllulati vG aIJllual pGI GClltage incI ease ill it cost-of-li V illg iIldc.x dlat is bascd 011 pi ices of all itcnls and issued by the DUIc.au of LabOJ Statistics OJ by a fixed al1l1ual iIlcIeasc of fi vc. pClcelJt 01 lcss. (b) To the extwt oftllc leductioll ill tte anloUIlt of the MelllbeI's paynlcl1ts to plovide- f'OI a SUI vivol bellcfit UPOJI deadl, but only. if tIle bc.lleficim y V\ hose life was beil1g used to detellllillc the distIibutioll pel iod desCl ibed ill subseetiol1 4 dies 01 is 110 IOllgo the MeIllbcl's bel1cficiaIY pUIsuallt to a qualified dOIIK.stic Iclatiolls OJdcI within thc 11ICal1iIIg of Scction 414(p). (G) To plovidc caslllc.fullds of AeeUIllulated COlltl ibutiolls UPOII the MCl1lbu's death. (d) To pay il1el cased bellefits tllat I c.sult ft 0111 a rlall alllClldl1lellt. ill The Member's entire interest must be distributed pursuant to Section 6, Section 7, Section 9, or Section 10 (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. 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 subsce'Lioll 2.D. Section 7) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-1I101Itllly, monthly, sCl1li-aIlllually, 01 alJllually. All of the Member's benefit accruals as of the last day of the first distribution calendar year will be incl uded 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. 4. Rcquil Clllellts fOJ Al1l1uity Distl ibutiolls Tllat COI1Jlllcl1ec DUl ild2. a Mel1lbG!'s Lifctilllc. -31- 5. Joint Lif~ A:lI:uiti(,s V~ThGl~ th(, ~Gl~di.Gial y Is Not tIle M('ll1bC1's Spouse. If thG 1-~GI11DGl S Il1t~1 ~st l~ bGll1g dlStlIbute.d ill tIIG fOull of a joint alld Sol v i v or allnu~ty fOl the. jOlllt II v GS of thG MGlnbcA al1d a 110nspous(, bcnGficial ~lIl",ly pay",e.u!> to be luilde on u' ail" the Meu,be," 'Gqui"J begihu;,;~ .ate. to the. deslgl1at~d bcneficial j aftel thG Me.nlbGI's dGath nlust not at all 1;lOe eAGeed the dj~phG.h Ie p" Gentd"e of the /un< ui I y Pd y",GIlt f", 'dGh p,,; o~ t 1at would hdV'.G neGll payable. to tk MGlllbGl using thG tabk set fOlth in Q&~-2 ?fSGGtlOn.1.401~a~(9)-GT ofthG TleaSUly IGbolations. Ifthe fOll11 of dlStllbutIOIl COll1bl11GS a j0ll1t and S~I v i v 01 aunuity fal tIle joint Ii v GS of the rvku~b"'l al1d.a 11onSpOUsG bwefiGlal'y and a peliod ce.ltain annuity the lequl1Cluellts ll1.the pre(,eding 5.e.11tellee will apply to anl10ity payll1el1 s' ~ G madG to thG deslgllatGd benefielalY aftel thG Ghpilatioll of the PGliod ~G;~~l. P('liod ':GI taill AIllwitiGs. U~lk~s th~ M.GmbGI's spous(, is the sole desigllated bWGfiGI.aly alld t1:(. fa1l11 of dlStlIb~tlOll.1S a P('l iod GGI tail1 al1d no 1ifG anl1uity, thG ~('Il?d. e.e.~ tam fOl an allnUlty dlStl ibutioll e.omm('llcing dUl il g !~ Manoe.1 s ltfGtllllG Inay not Gx(,e.Gd thG applicable dish ibution pe. iod fo tl~e He b d t1 LI '1:. L'I:.' , 1 1 lG v m e.1 an el 11(, unl1?lIll LI1GtUilG Tank set fulth ill Se.ction 1.401 (a)(9)-9 of H:e. T1 e.a;')u(y I egulatlons fOI thG cale.ndal )1(,al tIlat cOlltains thG a 11 aity stal tmg date.. If thG anl1uity sta~ting da.t(, 1?1ec~dGs thG y(,al in whi:l~ Itl MWl.bcl.,1 G<t~hGS a~e 70, the applle.abk dlstlIbutIon pe,l iod fOl tIle MWlbe.:~s !h(, dlst~ lthltlon p",iIod fOI ag(, 70 undel the Ullifullll LifGtime. T.mlc set f01th 111 Section 1.401(")(9)-9 ofthG TlcasulY Ie.gulations plus thG excess of70 OvGI ~he. agG of tI~e Mw~bGI as of the MGIl1.bC1's bilthday in th(, year tLat GOl1tallls. the. Mnulty sta~ tll1g datG. If the MGmbel'S SpOUSG is tllG Mmlbu's sole. dGSI?=>llate.d b.Gtlefi(,laty and the. foun of dist1ibution is a period celtain and 110 l/f" M~1Ult.Y' tl.1'" p,ui?d c(,lt.ain Inay not Gxc(,cd thG longel of the Me,mbel s appl.lcab.k dlstlIoutlOn pGllod, as dctumilled Ul1d(,1 this subsGction 4.D., 01 ~h(.joll1t ltfG and l~st sUivivOl eXpGc.ta11Gy ofthG MGIllbGl alld thG Melll?GI s sl?ouse as deteull111Gd ul1del t11G Joil1t al1d Last SUI \- i vOl Table se.t fOltl1111 Se.e.~lOn 1..401 (a)(9)-9 of die TleasulY IGgulations, using tile MI..IHbGI '5 al1d spouse s attal11cd ag.es as of thG 1vklllbGI's alld SpOUSG'5 biltIldays in tIle eale.l1daI yGal tIlat contaulS thG annuity stal tini; date. R~qu.i,Ie.II.!Gl1ts fOI. MillilllUll1 Dishibutiol1s V/helG Mmlbe.1 Dies Ddole D t DIstrmutlol1s DGg.II1. a e A. D. A. MGmb~1 ~?I v~ vGd by ~G5i~natGd.nc.nefiGial y. Ifthc Member diet> bdOle the, date, dl~tilnutlOn of hIS ,0 h~1 lI.ltGlest be,gills and thGI C i5 a dGsigliatcd bCI1eue.laly, thG MWlbGI s e.llt1l e IIlte.r Gst w ill be distr ibuted bG~im i latel tI1al1 thG timG dGse,libcd ill 5ubsec.tiol12 D (1) 01 2 D (2) ~ e tI I t~~ l~~ tl d' " . . .., V I Ie I e 0 IG ('slgnatcd oe.l1c.fiGlal)l 01 0 v (,1 d pGl iod e.(,1 taiu not e.xe.eGding. (1) DIlleS5 the, anlluity staltinb delte, is bdole the ~ t ~i ~1.~ . Ga1cnd~1 yGal: the l~fG Gxp~e.taney of thG de.sibna~~d b~n~fi~i~; ?e.tGlIllInGd U511lg the.DGnGfi~lal y'~ ag,e as ofthe be.IIGfie.i,h )I'S bil thday III tll~ e,a}Gndal yUh lillil1edlatc.ly follow illg tIlG Gale.l1d"1 yGal of tile MGllioel'S death. (2) If tIlG aml~ity staltiug date, is bdOle the. fil:,t di~;1i~ fo 1 1 ~ ye~'H, the life, Gxp~c.ta~le'y of the, desibl~atGd b~lJ(,fie.ia~; ~;t~~1~1:~;~ USllig thG be.11eu(,laIY s. age as of the DCllGfiGlaly's birtllday in the ca1cndal YG.lI die GOlltallls the clll1wity stal ting date.. -32- D. No designated Dendleiary. If the Melubel dies berole the date distlibutiollS begin and thele is no designated beneficialy as of Sept em bel 30 of the yeal follo~ i!lg the yeal of the Membel 's death, dish ibution onhe Mw!bel 's mtil e intG! Gst will bG completed by DGeGll1bGl J 1 of the ealendal yeal containing the fifth annivw:;alY of the MembG1's death. C. Death OfSUl v i v inl,;. Spouse Ddol e Distributions to Sur v i v ing. Spouse DGgill. If the McmbGr dies befoIe the date dist!;butioll of his intelest bGgillS, tl!G Melilbel's SUI v i v ;llg !>pouse is the MGlhbGl's sole designate-d beneficiary, and the SUI v i v ing !>pouse dics bcfol e distributioHs to the. SUI v i v ing spouse bObin, this subscC-tion 5 will apply as iftlle s111vivillg spouse were the Membel, excGpt that the time by which dish ibutions must begin w ill be dctcuuined without !egald to subsection 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 1. 2008. the minimum distribution incidental benefit rule under Treasury Regulation Section 10401 (a)(9)-6. 0&A-2. B. The death and disability benefits provided by the Plan are limited by the incidental benefit rule set forth in Code Section 40 l( a )(9)( G) and Treasury Regulation Section 1.401-1 (b)(1)(I) 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. 62. 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 subsection 2.D. Section 7. C. Life EApcctal1c\'. Li.& e.ApeGta.!lcy as computed by use of the Single Life, Table in Scction 1.401 ((1)(9)-9 of thc Tleasury regulations. D. Requiled Deg.illl1ild~. Date. The date specified in subsection 2.A. SECTION 17. 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 ofthe Fund be used for or diverted to any purpose other than for their exclusive benefit. -33- 2. No Reduction of Accrued Benefits. No amendment or ordinance shall be adopted by the City Commission of the City of Ocoee which shall have the effect of reducing the then vested accrued benefits of Members or a Member's beneficiaries. 3. Qualification of System. It is intended that the System will constitute a qualified pension plan under the applicable provisions of the 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 of the Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder. . ~ Prohibited Transactions. Effective as of January 1, 1989, a Board may not engage in a transaction prohibited by Code Section 503(b ). 6. USERRA. Effective December 12, 1994, notwithstanding any other provision of this System, contributions, benefits and service credit with respect to qualified military service are governed by Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act of 1994. as amended. To the extent that the definition of "Credited Service" sets forth contribution requirements that are more favorable to the Member than the minimum compliance requirements, the more favorable provisions shall apply. 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 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. & 1.40 l( a )-21. 4- 2. Use of Forfeitures. Forfeitures arising from terminations of service of Members shall serve only to reduce future City contributions. -34- SECTION 18. 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 benefitting 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 detwllilied to be inadequate. 2. If this ordinance shall be repealed, or if contributions to the System are discontinued or if there is a transfer, merger or consolidation of government units, services or functions as provided in Chapter 121, florida Statutes, the Board shall continue to administer the System in accordance with the provisions of this ordinance, for the sole benefit of the then Members, any Beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this Ordinance who are designated by any of said Members. In the event of repeal, discontinuance of contributions, or transfer, merger or consolidation of government units, services or functions there shall be full vesting (1 00%) of benefits accrued to date of repeal and the. assets of the SysteJ.:u shall be allocated in an equitable manner to plOv ide- benefits Oil a pIOpOi tlonate basis to the pel sons so entitled in accordance ~ ith the Plovisions thelcof such benefits shall be nonforfeitable. J. The follow ing shall be the oldel ofpiiolity fOl pal pOSGS of allocating thG assets of the SystGm as of the date oflGpeal ofthis oldinance, 01 if eontIibutions to tk Systeh1 ale diseontinaGd with the date of such discontinuation being deteiulinGd by the Doald. A. APPoltionment shall filst be made in leSpeGt of each Retire-e leceiving a lctiremGnt or disability bGnefit hercundGI Oil such datG, each pelS01l1eeei v ilig a benefit Oli such date on account of a letiled 01 di:>abkd (but since dGeeased) MelilbGI, and Gach Meinbel who has, by such datc, becollie eligible for nOlhla1letilemellt bat has not yet letiled, an amount which is the Aetuaiia1 Equi valent of such benefit, plov ided that, if such asset value be IGssthan thc agglegate of such amounts, SUell Mlounts shall bG ploportionately ledueed so that the agglegatG of Such rcdueGd amoants will be equal to such asset value. D. IEthel e bG any asset v a1uG 1 emaining aftel thG apportionment undel pal agiaph A, apportionment shall nGxt be madG in leSpGet of Gaeh ~kmbel in the sel vieG ofthG City on such datG who is vGstGd and who is not entitled to an appoitioillllGnt andGl paiaglaph A, in the alllount requiled to plovide tIie Aetualial Equivalent OftI1G vested pOition OftIIG aeelUGd nOlma11etilelllcnt benefit (but i10t less than Accumulated Contributions), based on the CleditGd SeiviGG and AV"lagG final Compensation as ofsueh date, and each vestc.d fOlmei MOl1bGI then entitled to a dGfcll ed benefit who has 110t, by SUdl date, begunleGGiving bend!t payillwts, in thG amount IGquiled to plovide said Actuarial Equi valent of the vested pOl tion ofthe aGel UGd nOllllalIctilGnlent benefit (but not les:> than Aeeatlialated Contlibutions), plO v ided that, if such ll:auaining asSGt valaG bG less than the agglegate ofthG allloUllts appOltionGd helGU11del, sl1dl 1attGl amoullts 5hall be plOpoltioliately reduced so that the aggl GgatG of such 1 Gduced al1101111ts w ill be Gqual to SUdl I emainiilg asset value:- C. IfthelG bG My assGt value after the appoltionmGnts unde! palaglaphs A and D, appOi t10iHllGnt shall bG l11ade in lespeet of Gach ~kmbel iu thG 5ei v iGe of the City 011 sl1eh date who is not entitled to an appOI tionulwt under palagiaphs A and D in th" amount equal to Men1bel's AGCUlilulated -35- COlll1ibutiollS, Plovided that, if sue.h Iemainillg assc.t value be less tLan tIle agglegate of the alHoclIlts apPoltioned heleundel such lattel amodnt shall be plopoitiohatdy ledueed so that the a~glegate of such Icduced dtllOunts will be equal to such r cmailli11g asset value. D. If thue bc any asset value lcnlaining aftcr the appoltionnlwts Ulldcr pal a~l aphs A, B, and C, appOl tiOll1Hent shall lastly be IHade iHl espect of each McmbGl iHduded ill pala~laph C above to tIlC extcnt of thc AGtualia1 Equivalent of the don-vested acelued nOlma11etilemwt benefit, less the amount apPoltioned ill palaglaph C, based on the Credited SGlviee and A vClage. final Conlpensation as of such date, plO v ided that, ifsudl1C1l1aining assct value bc less than the aggregate of the al110Ullts apportioned hereunder, such amounts shall be 1 educed so that the aggrGgate of such 1 educed amounts w ill be eq ual to such r ell1aining asset val tic. E. In the eve.llt that thele be asset value Iemaining aftel the full apportionlHellt spec.ified in palaglaphs A, B, C, and D, such cxccss shall be letulned to the City, less lc.tmn ofth(. State,'s codtIibutio11s to thG StatG, plovidGd that, if the exee.,ss is IGss than the total contributions IHade., by the City and the State to the date. of te.,lminatioll Such excess shall be., di v ided ProPOl tionatdy to thG total conti ibutions IHade Ly thG City and the State. ThG alloeatioll of the fund provided fol in this Subse.,etion Blay, as deeide.d by the Board be e.arlie.d out thlough the. purchase of insuianee COlllpan)l contiae.b to provide. the. beue.fits dGtclluined ill ae.eoldance with this SubseGtion. The., fund maJ be., distributed in one SU1l1 to the peisons e.,utitIed to sa.id bwefits 01 the., distii~Lltion n~ay be ~all ic? out in ~~eh ~tll~r_ cq ui~a~l~ ~;:~~~~~ as thc Boald may dllee.t. Thc rund IHay DC contInued lH CAlstwee fOi pm pose.,s of subscqocnt distr ibutiohs. If, at any tilllG during the., filst ten (10) ye.,als afte.,l the., cffGetive date of the., ordinancG oliginally establishing this SyStGlll, the System shall bc te.,lminated 01 the full ~~~~;e~t e~~t5 o~~: Syste.~l1 s~lall hot. have b~en IllGt, anything in the Syste.,m to the contra:! ~?t_w}1~~t~1~~ing, ~i~~ contubutIolls w 11leh IlIay DC used fO! the benefit of anyone of the t w e.,llty- fi v C (25) hlghe.,st pmd JviGmbe.,ls 011 the., cffcGti ve date." whose antie.ipate.,d arlnLlal ic.tire.,lJ1wt allo wance PlOY ided by tIle., City's COlltlibutiollS at Jvkmbe.,l's nOlmallctile.,mwt date V\1ould cxeeed $1,500, shall not eAceed the gieateI of eithGl a) $20,000, 01 b), an alllount computed by multiplying the s11lallcl of$lO,OO?, ?l' tw~n~~ peleGnt (20%) of such ~kmbe.,1'5 avelage annual eaulings dming h~~ or he. 1~5t ~v~ ~~) ~:i:Z: ~cr v ice by ~lle n~mbel ofye.,ars of SGi v.i~e sinGe .the ~ffecti \Ie date. .In .the event that i~ ~l~ll hct'Gaft~I: DC dctellullled DY statute, e.OUl t dee.lsIon, 1 ulUlg oy the Commls51011e.,1 0 f Intewal R~"-enue, ~~ othel wise, that the pro v is ions of this palagraph arc not then ne.,eessary to qualify the SYStcnl ~l:~~~ the Code, this palaglaph shall be., i11effGe.ti ve without the necessity of ftu thel amGndlilGnt of this oldinalle.G. 4. Afte.l all tIle ve.ste.d and aeer ue.d bGllGfits pi 0 v ided 11e.l eundel ha v e. bGGll paid alid afteI all Ot11e.l liabilities havG been satisfied, then and only thw shall any lcmailling funds IGvGrt to the gellela1 fund of tIle. City. ~ The fund shall be distributed in accordance with the following procedures: A The Board shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits after taking into account the expenses of such distribution. The Board shall inform the City if additional assets are required. in which event the City shall continue to financially support the Plan until all nonforfeitable benefits have been funded. -36- B. The Board shall determine the method of distribution of the asset value, whether distribution shall be by payment in cash, by the maintenance of another or substituted trust fund, by the purchase of insured annuities. or otherwise, for each firefighter or police officer entitled to benefits under the plan as specified in subsection C. C. The Board shall distribute the asset value as ofthe date of termination in the manner set forth in this subsection, on the basis that the amount required to provide any given retirement income is the actuarially computed single-sum value of such retirement income, except that if the method of distribution determined under subsection B. involves the purchase of an insured annuity, the amount required to provide the given retirement income is the single premium payable for such annuity. The actuarial sin~:1e-sum value may not be less than the firefighter's or police officer's Accumulated Contributions to the Plan, with interest if provided by the Plan, less the value of any plan benefits previously paid to the firefighter or police officer. D. If there is asset value remaining after the full distribution specified in subsection C., and after the payment of any expenses incurred with such distribution, such excess shall be returned to the City, less return to the State of the State's contributions, provided that. if the excess is less than the total contributions made by the City and the State to date of termination of the Plan, such excess shall be divided proportionately to the total contributions made by the City and the State. E. The Board shall distribute, in accordance with subsection B.. the amounts determined under subsection C. If. after twenty-four (24) months after the date the Plan terminated or the date the Board received written notice that the contributions thereunder were being permanently discontinued, the City or the Board of the Fund affected has not complied with all the provisions in this Section, the Florida Department of Management Services will effect the termination of the Fund in accordance with this Section. SECTION 19. DOMESTIC RELATIONS ORDERS: RETIREE DIRECTED PAYMENTS: EXEMPTION FROM EXECUTION. NON-ASSIGN ABILITY. 1. 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. -37- 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 as permitted by Chapter 175 and 185, Florida Statutes, and to make any payments for child support or alimony. 2}. Exemption from Execution, Non-Assignability. Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the Accumulated Contributions and the cash securities in the Fund created under this ordinance are hereby exempted from any state, county or municipal tax ofthe state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. SECTION 20. 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 underpayments shall be corrected and paid or repaid in a reasonable manner determined by the Board. SECTION 21. 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 ofthe 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; 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 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 -38- 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, ril?:hts, privileges, duties, or position of his or her public office or employment position. 2. Conviction shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; ajury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an impeachable offense. 3. Court shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice shall be given to the Member whose benefits are being considered for forfeiture. Said Member shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the Member shall be afforded a full opportunity to present his or her case against forfeiture. 4. Any Member who has received benefits from the System in excess of his or her Accumulated Contributions after Member's rights were forfeited shall be required to pay back to the Fund the amount of the benefits received in excess of his or her Accumulated Contributions. The Board may implement all legal action necessary to recover such funds. SECTION 22. CONVICTION AND FORFEITURE: FALSE. MISLEADING OR FRAUDULENT STATEMENTS. 1. It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit from the System. 2. A person who violates subsection 1. commits a misdemeanor of the first degree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes. 3. In addition to any applicable criminal penalty, upon conviction for a violation described in subsection 1, a Member or Beneficiary of the System may, in the discretion of the Board, be required to forfeit the right to receive any or all benefits to which the person would otherwise be entitled under the System. For purposes of this subsection, "conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. SECTION 23. 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. -39- 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, 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 of the Board which constitute felonies or gross malfeasance or gross misfeasance in office. SECTION 24. 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 25. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. 1. Rollover Distributions. A. General. This Section applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the System to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. B. Definitions. (1) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion ofthe balance to the credit 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) ofthe distributee and -40- the distributee's designated Beneficiary, or for a specified period often ilQl 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 includible in gross income. Any Effective January 1. 2002. any portion of any distribution which would be includible in gross income as after-tax employee contributions 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 includible in gross income and the portion of such distribution which 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 of the 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) ofthe 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)(l)(A) of the Code and which agrees to separately account for amounts transferred into such plan from this plan; effective January L 2002. an annuity contract described in section 403(b) of the Code; or a qualified trust described in section 401 (a) of the Code: or effective January L 2008. a Roth IRA described in Section 408A of the Code, that accepts the distributee's eligible rollover distribution. This definition shall also apply in the case of an eligible rollover distribution to the surviving Spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. (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 distributcc with rcgald to tIlC intcr cst of the Spouse and the employee's or former employee's spouse or former spouse. EffectiveJanuary 1. 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 Member rollover cash contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as follows: -41- A. 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 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. B. Member Rollover Contributions from lRAs. 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 ovet alld would othcr wise be includible ill ~IOSS illcome. 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 26. PRIOR POLICE OR FIRE SERVICE. Unless otherwise prohibited by law, and except as provided for in Section 1, the years or fractional parts of years that a Police Officer or Firefighter previously served as a Police Officer or Firefighter with the City of Ocoee during a period of previous employment and for which period Accumulated Contributions were withdrawn from the Fund, ortheyears and fractional parts of years that a Member served as a Firefighter or Police Officer for any other municipal, county or special district fire department or special law enforcement department in the State of Florid a or jurisdiction other than the State of Florida, shall be added to his or her years of Credited Service provided that: 1. The Police Officer or Firefighter contributes to the Fund an actuarially determined amount such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of years of Credited Service. 2. The lequest shall be 111ade only once and Inade by the Membel O~t ?~ bef?~~~~~~~~:~~ (18) 1110nths fioln the cffcd~ ve datc of the oldill<111Ce adop~il1~ ~ll~~ f)l5?,~i:i~l~ ~1 e~:l:::n t!. ~~ l~~~~t~s flOm the date of his 01 hel clllployhlwt o. leemploYlllwt with the City Police 01 file Dcpaltmcl1t, whichevel is later. Multiple requests to purchase Credited Service pursuant to this Section may be made at any time prior to Retirement. 3. Payment by the Police Officer or Firefighter of the required amount shall be made within six (6) months of his or her request for credit and shall be made in one (1) lump sum payment to the Board, upon receipt of which Credited Service shall be given. 4. The maximum credit under this Section for jurisdiction other than with the city of Ocoee when combined with credited service purchased pursuant to Section 28, Military Service Prior to Employment, shall be five (5) years of Credited Service and shall count for all purposes, except vesting and eligibility for not-in-line of duty disability benefits. There shall be no maximum -42- purchase of credit for prior service with the City of Ocoee and such credit shall count for all purposes, including vesting. ~ In no event, however, may Credited Service be purchased pursuant to this Section for prior service with any other municipal, county or special district fire department or special law enforcement department, 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 MaximUlll Pcnsioli sec.tion of YOU! plali dOCuIlIcnt Section 15, subsection 11.B. ~ For purposes of determining credit for prior service as a Firefighter as provided for in this Section. in addition to service as a Firefighter in this State, credit mav be purchased by the Member in the same manner as provided above for federaL other state. county or municipal service if the prior service is recognized by the Division of State Fire MarshaL as provided under Chapter 633. Florida Statutes. or the Firefighter provides proof to the Board that such service is equivalent to the service required to meet the definition of a Firefighter under Section 1. 7. For purposes of determining credit for prior service as a Police Officer as provided for in this Section, in addition to service as a Police Officer in this State, credit may be purchased by the Member in the same manner as provided above for federal. other state, county or municipal service ifthe prior service is recognized by the Criminal Justice Standards and Training Commission within the Department of Law Enforcement, as provided under Chapter 943, Florida Statutes. or the Police Officer provides proof to the Board that such service is equivalent to the service required to meet the definition of a Police Officer under Section 1. SECTION 27. DEFERRED RETIREMENT OPTION PLAN. 1. Definitions. As used in this Section 27, the following definitions apply:" A. "DROP" -- The Ocoee Police Officers' and Firefighters' Deferred Retirement Option Plan. B. "DROP Account" -- The account established for each DROP participant under subsection 3. 2. Participation. A. Eligibility to Participate. -43- B. Election to Participate. A Member's election to participate in the DROP must be made in writing in a time and manner determined by the Board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. C. Period of participation. A Member who elects to participate in the DROP under subsection 2.B., shall participate in the DROP for a period not to exceed sixty (60) months beginning on the date which the Member first becomes eligible for nonnal 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 participating in the DROP shall cease participating in the DROP by: (a) electing in writing, in a time and manner determined by the Board, to cease participating in the DROP; (b) continuing to be employed as a Police Officer or Firefighter at the end of his period of participation in the DROP as determined under subsection 2.C.; or ( c) terminating his employment as a Police Officer or Firefighter. Any election made under clause (a) 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. (2) Upon the Member's termination of participation in the DROP, pursuant to subsection (1),(a) or (b) above, all amounts provided for in subsection 3.B., including monthly benefits and investment earnings and losses or interest, shall cease to be transferred from the System to his DROP Account. Any amounts remaining in his DROP Account shall be paid to him in accordance with the provisions of subsection 4. when he terminates his employment as a Police Officer or Firefighter. (3) A Member who elects to terminate his participation in the DROP under subsection 2.D. shall not be permitted to again become a participant in the DROP. E. Effect of DROP Participation on the System. (1) A Member's Credited Service and his accrued benefit under the System shall be determined on the date his election to participate in the DROP first becomes effective. For purposes of determining the accrued benefit. the Member's Salary for the purposes of calculating his Average Final Compensation shall include an amount equal to any -44- 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 Credited Service or any additional benefits under the System (except for any additional benefits provided under any cost-of-living adjustment in the System) while he is a participant in the DROP. After a Member commences participation, he shall not be permitted to again contribute to the System nor shall he be eligible for disability or pre-retirement death benefits, except as provided for in Section 29. (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 tenninates his participation in the DROP other than by terminating his employment as a Police Officer or Firefighter, no amounts shall be paid to him from the System until he terminates his employment as a Police Officer or Firefighter. Unless otherwise specified in the System, amounts transferred from the System to the Member's DROP Account shall be paid directly to the Member only on the termination of his employment as a Police Officer or Firefighter. 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 would have received under the System had he terminated his employment as a Police Officer or Firefighter and elected to receive monthly benefit payments thereunder shall be transferred to his DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.0., but in no event shall it continue past the date he terminates his employment as a Police Officer or Firefighter. (2) Except as otherwise provided in subsection 2.0.(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-half percent (6.5%) per annum compounded monthly on the prior month's ending balance; or -45- (b) Earnings, determined as follows: The average daily balance in a Member's DROP Account shall be credited or debited at a rate equal to the actual net rate of investment return realized by the System for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which the Member's DROP Account is invested by the Board net of brokerage commissions, transaction costs and management fees. Upon electing participation in the DROP, the Member shall elect to receive either interest or earnings on his account to be determined as provided above. The Member may, in writing, elect to change his election only once during his DROP participation. An election to change must be made prior to the end of a quarter and shall be effective beginning the following quarter. (3) A Member's DROP Account shall only be credited or debited with earnings or interest and monthly benefits while the Member is a participant in the DROP and after the Member dies, retires or terminates his employment as a Police Officer or Firefighter. If a Member is employed by the City Fire and Police Departments after electing to cease participation in the DROP pursuant to subsection 2.D.(l)(a) or after participating in the DROP for five (5) years, then beginning with the next payment following cessation of participation or beginning with the Member's 61st month of DROP participation, whichever occurs first, the Member's DROP Account will no longer be credited or debited with earnings or interest, nor will monthly benefits be transferred to the DROP account. All such non- transferred amounts shall be forfeited and continue to be forfeited while the Member is employed by the City Fire and Police Departments. A Member employed by the City Fire and Police Departments after five (5) years of DROP participation will still not be eligible for pre-retirement death or disability benefits, nor will he accrue additional Credited Service, except as provided for in Section 29. 4. Distribution of DROP Accounts on Termination of Employment. A Eligibility for Benefits. A Member shall receive the balance in his DROP Account in accordance with the provisions of this subsection 4. upon his termination of employment as a Police Officer or Firefighter. Except as provided in subsection 4.D., no amounts shall be paid to a Member from the DROP prior to his termination of employment as a Police Officer or Firefighter. B. Form of Distribution. (1) Unless the Member elects otherwise, distribution of his DROP Account shall be made in a cash lump sum, subject to the direct rollover provisions set forth in subsection 4.6..E. A 1-kmbGl may, -46- hOv\'e.ve.l, de.d, i1l6ueh ti1l1G elhd lllallllGi as tile. DOilrd shall ple.S~libG, that his DROP distiibutioli be.l1sed to flUidlelse. it honfolfGitabk fixed itlllluity payabk ill such mUll as the !vkrllbGl ll:lay e.ket. Elections under this paragraph shall be in writing and shall be made in such time or manner as the Board shall detennine. (2) If a Member dies before his benefit is paid, his DROP Account shall be paid to his Beneficiary in such optional form as his Beneficiary may select. If no Beneficiary designation is made, the DROP Account shall be distributed to the Member's estate. 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 25, herein incorporated by reference. 5. Administration of DROP. A Board Administers the DROP. The general administration of the DROP, the responsibility for carrying out the provisions of the DROP and the responsibility of overseeing the investment ofthe DROP's assets shall be placed in the Board. The members of the Board may appoint from their number such subcommittees with such powers as they shall determine; may adopt such administrative procedures and regulations as they deem desirable for the conduct of their affairs; may -47- 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 oftheir 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. B. Individual Accounts, Records and Reports. The Board shall maintain, or cause to be maintained, records showing the operation and condition of the DROP, including records showing the individual balances in each Member's DROP Account, and the Board shall keep, or cause to be kept, in convenient form such data as may be necessary for the valuation of the assets and liabilities of the DROP. The Board shall prepare or cause to be prepared and distributed to Members participating in the DROP and other individuals or filed with the appropriate governmental agencies, as the case may be, all necessary descriptions, reports, information returns, and data required to be distributed or filed for the DROP pursuant to the Code, the applicable portions of the Act and any other applicable laws. C. Establishment of Rules. Subject to the limitations of the DROP, the Board from time to time shall establish rules for the administration of the DROP and the transaction of its business. The Board shall have discretionary authority to construe and interpret the DROP (including but not limited to determination of an individual's eligibility for DROP participation, the right and amount of any benefit payable under the DROP and the date on which any individual ceases to be a participant in the DROP). The determination of the Board as to the interpretation of the DROP or its determination of any disputed questions shall be conclusive and fInal to the extent permitted by applicable law. The Board shall also oversee the investment of the DROP'S assets. D. . Limitation of Liability. (l) 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 ofthe 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. -48- 6. General Provisions. A Amendment of DROP. The DROP may be amended by an ordinance of the City at any time and from time to time, and retroactively if deemed necessary or appropriate, to amend in whole or in part any or all of the provisions of the DROP. However, except as otherwise provided by law, no amendment shall make it possible for any part ofthe DROP's funds to be used for, or diverted to, purposes other than for the exclusive benefit of persons entitled to benefits under the DROP. No amendment shall be made which has the effect of decreasing the balance of the DROP Account of any Member. B. Facility of Payment. If the Board shall find that a Member or other person entitled to a benefit under the DROP is unable to care for his affairs because of illness or accident or is a minor, the Board may direct that any benefit due him, unless claim shall have been made for the benefit by a duly appointed legal representative, be paid to his Spouse, a child, a parent or other blood relative, or to a person with whorn he resides. Any payment so made shall be a complete discharge of the liabilities ofthe DROP for that benefit. C. Information. Each Member, Beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or on his account under the DROP, shall file with the Board the information that it shall require to establish his rights and benefits under the DROP. D. Prevention of Escheat. If the Board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the Board may, no earlier than three (3) years from the date such payment is due, mail a notice of such due and owing payment to the last known address of such person, as shown on the records of the Board or the City. If such person has not made written claim therefor within three (3) months of the date of the mailing, the Board may, if it so elects and upon receiving advice from counsel to the DROP, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the DROP. Upon such cancellation, the DROP shall have no further liability therefor except that, in the event such person or his Beneficiary later notifies the Board of his whereabouts and requests the payment or payments due to him under the DROP, the amount so applied shall be paid to him in accordance with the provisions of the DROP. E. Written Elections, Notification. (1) Any elections, notifications or designations made by a Member pursuant to the provisions of the DROP shall be made in writing and filed with the Board in a time and manner determined by the Board under rules uniformly applicable to all employees similarly situated. The Board reserves the right to change from the time and manner for making notifications, elections or designations by Members under the -49- DROP if it determines after due deliberation that such action is justified in that it improves the administration of the DROP. In the event of a conflict between the provisions for making an election, notification or designation set forth in the DROP and such new administrative procedures, those new administrative procedures shall prevail. (2) Each Member or Retiree who has a DROP Account shall be responsible for furnishing the Board with his current address and any subsequent changes in his address. Any notice required to be given to a Member or Retiree hereunder shall be deemed given if directed to him at the last such address given to the Board and mailed by registered or certified United States mail. If any check mailed by registered or certified United States mail to such address is returned, mailing of checks will be suspended until such time as the Member or Retiree notifies the Board of his address. F. Benefits Not Guaranteed. All benefits payable to a Member from the DROP shall be paid only from the assets of the Member's DROP Account and neither the City nor the Board shall have any duty or liability to furnish the DROP with any funds, securities or other assets except to the extent required by any applicable law. G. Construction. (1) The DROP shall be construed, regulated and administered under the laws of Florida, except where other applicable law controls. (2) The titles and headings of the subsections in this Section 27 are for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control. H. Forfeiture of Retirement Benefits. Nothing in this Section shall be construed to remove DROP participants from the scope of Section 22 above or Section 112.3173, Florida Statutes. DROP participants who commit a specified offense or whose employment is terminated as described in Section 22 while employed, will be subject to forfeiture of all retirement benefits, including DROP benefits, pursuant to the above provisions oflaw. I. Effect of DROP Participation on Employment. Participation in the DROP is not a guarantee of employment and DROP participants shall be subject to the same employment standards and policies that are applicable to employees who are not DROP participants. J. BAC-DROP. In lieu of participation in the DROP, a Member may elect to participate in an actuarially equivalent BAC-DROP to a date of the Member's choosing, provided that the date is not further back than the Member's nonnal retirement date. The total BAC-DROP period shall not exceed sixty (60) -50- months and shall provide an immediate partial lump sum distribution, payable to the Member's DROP Account. The lump sum shall be the accrued benefit, determined as if the Member had entered the DROP retroactively, as described above, accumulated with interest at the annual fixed rate of 6.5%. The Member may choose an actuarially equivalent form of benefit at the time ofBAC-DROP entry, as described in Section 10, Optional Fonns of Benefits. Member contributions shall be returned for the period of the BAC-DROP participation. A Member electing the BAC-DROP shall terminate employment not later than the first day of the month following his election to participate in the BAC-DROP. The Board's authority and power for administration of the BAC-DROP shall be the same as those provided for in the DROP. SECTION 28. MILITARY SERVICE PRIOR TO EMPLOYMENT. The years or fractional parts of years that a Firefighter or Police Officer serves or has served on active duty in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable conditions, prior to first and initial employment with the City Fire Department or City Police Department shall be added to his years of Credited Service provided that: 1. The Member contributes to the Fund an actuarially determined amount so that the crediting of the purchased service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of years of Credited Service. 2. The ieque~t shall be Inade only Ollee and IlladG by tIle MGmbGi Oil 01 bGfOiG GighteGn (18) 111011ths flOlll the e,[fceti v c date of the oidiuancc adopting thi~ Section 01 e~lltcGn 118) l~Oll~lS floln thG datG of his ewp10)'lllcnt with thG City rile DGpaltlllwt 01 City Police DGpaltlilGnt, wllidlGvGi islatcl. Multiple requests to purchase Credited Service pursuant to this Section may be made at any time prior to Retirement. 3. Payment by the Member ofthe required amount shall be made within six (6) months of his request for credit and shall be made in one (1) lump sum payment to the Board, 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 Police or Fire Service, for jurisdiction 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 and eligibility for not-in-line of duty disability benefits. SECTION 29. REEMPLOYMENT AFTER RETIREMENT. 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 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 as a Firefighter or Police Officer after that Retirement and, by virtue of that reemployment, is eligible to participate in this Svstem, shall upon -51- being reemployed discontinue receipt of benefits. Upon reemployment the Retiree shall be deemed to be fully vested and the additional Credited Service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final Retirement. Calculations of benefits upon Retirement shall be based upon the benefit accrual rate, Average Final Compensation, and Credited Service as of that date and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, Average Final Compensation (based only on the subsequent employment period), and Credited Service as ofthe date of subsequent retirement The amount of any death or disability benefit received as a result of a subsequent period of employment shall be reduced by the amount of accrued benefit eligible to be paid for a prior period of employment. The optional form of benefit and any ioint pensioner selected upon initial retirement shall not be subiect to change upon subsequent retirement except as otherwise provided herein, but the Member may select a different optional form and ioint pensioner applicable to the subsequent 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 discontinue receipt of benefits during any subsequent employment period. 4. After Earl Retirement. An Retiree who is retired under earl retirement ursuant to this System an who subsequently becomes an employee of the City in any capacity shall discontinue receipt of benefits from the System. Ifby virtue of that reemployment the Retiree is eligible to participate in this System, the Retiree shall be deemed to be fully vested and the additional Credited Service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final Retirement. Calculations of benefits upon retirement shall be based upon the benefit accrual rate, Average Final Compensation, Credited Service and early retirement reduction factor as of that date and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, Average Final Compensation (based only on the subsequent employment period), and Credited Service as ofthe date of subsequent retirement. The amount of any death or disability benefit received as a result of a subsequent period of employment shall be reduced by the amount of accrued benefit eligible to be paid for a prior period of employment. The optional form of benefit and any ioint pensioner selected upon initial retirement shall not be subiect to change upon subsequent retirement except as otherwise provided herein, but the member may select a different optional form and ioint pensioner applicable to the subsequent retirement benefit. Retirement pursuant to an early retirement incentive program shall be deemed early retirement for purposes ofthis Section ifthe Member was permitted to retire prior to the customary retirement date provided for in the System at the time of retirement. 5. Reem 10 ent of Terminated Vested Persons. Reem 10 ed terminated vested personsshall not be sub'ect to the provisions 0 t is SectIOn untIl such time as they begin to actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as normal or early Retirees for purposes of applying the provisions of this Section and their status as an early or normal Retiree shall be determined by the date thev elect to begin to receive their benefit. 6. DROP participants. Members or retirees who are or were in the deferred retirement option plan shall, following termination of employment after DROP participation, have the options provided for in this section for reemployment. ksh\noc\ksh\ocoee\pf\05-19-10.rest -52- --" ~y of Advertisement (that ran in the print media) Date Published and Media Name JI+ I orangetixtra I' Orland,? Sentinel Sunday, September 12, 2010 w Advertisement or Article CITY Of OCOEE . PUBUC HEARING A Public H..ring before the Oc... City Com- minion will be held Tuesday, Sep.tember 21. 2010, at 7: 15 p.m. or os soo~ thereof. fer as may be heard, in the Commission Chambers of City Hall at 150 North Lakeshore Drive, Ocoee;..-Florida. to consider the following:" , OR PRDVl I If 0 person decides to appeal any deci- sion made bY the above City Commis~ sian with respect to any matter consid. ered at such hearing, they wlll'need 0 record .of the' proceedings, and for such purpose they may need to ensure that a verbatim record of the proceedings is ; mode, which record Includes the testl- many end evidence upon"which the ap- peal is to be based. (,.;". -y-.~ . All Interested parties ore I~vlted to ot- tend and.be heard with. respect to the above. In accordance with the Ameri- cans with Disabilities Act" persons needing a special accommodation or an interpreter to participote in this pro- ceeding should contact the City Clerk's . office-at 407-905-3105 at least 48' hours prior .to .the date of hearing. Beth EikenberrY City Clerk OLS1083356 09112n0l0