HomeMy WebLinkAboutOrdinance 2010-019 Police & Fire Retirement Trust Fund Amendment V - _ 4( ORDINANCE NO.2010 -019
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
POLICE OFFICERS' AND FIREFIGHTERS'
RETIREMENT TRUST FUND; AMENDING AND RESTATING IN FULL, ORDINANCE NUMBER 91 -09, AS
SUBSEQUENTLY 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 of the City of Ocoee, 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herewith are hereby repealed.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 41 day of S ec bCr, 20Q.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
rL► r • By:
Beth Eikenberry, City Cler S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED September 12, 2010
READ FIRST TIME August 17, 2010
READ SECOND TIME AND ADOPTED
September 21, 2010
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS 5 day of (7c y r , 20 10
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By.
.`
��
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON SEPTEMBER 21, 2010, UNDER
AGENDA ITEM NO. 1L{ .
Ikow
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 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 subject to City discretion.
Average Final Compensation means one - twelfth (1/12) of the average Salary of the five
(5) best years of the last ten (10) years of Credited Service prior to Retirement, termination, or
death, 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. If no such designation is in effect, or if no person so designated is living, at the time of
death of the Member, the Beneficiary shall be the estate of the Member.
Board means the Board of Trustees, which shall administer and manage the System
herein provided and serve as trustees of the Fund.
City means City of Ocoee, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of service
as a 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
ow 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
-1-
Accumulated Contributions, if more than one - thousand dollars ($1,000.00), will be returned only
upon the written request of the Member and upon completion of a written election to receive a
cash lump sum or to rollover the lump sum amount on forms designated by the Board. Upon
return of 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 performs "Qualified Military
Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in
the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103 -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 of USERRA.
B. The Member returns 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.
C. The maximum credit for military service pursuant to this paragraph shall be five
(5) years.
D. This paragraph is intended to satisfy the minimum requirements of USERRA. To
the extent that this paragraph does not meet the minimum standards of USERRA,
as it may be amended from time to time, the minimum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits (other
than benefit accruals relating to the period of qualified military service) as if the Member had
resumed employment and then died while employed.
In the event that a Member of this 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.
-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 §633.35, Florida Statutes, and whose duty it
is to extinguish fires, to protect life and to protect property. The term includes all certified,
k,, 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 §943.1395, 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 as of the first day of the Plan Year shall be disregarded for any
purpose, including employee contributions or any benefit calculations. The annual compensation
of each member taken into account in determining benefits or employee contributions for any
Plan Year beginning on or after January 1, 2002, may not exceed $200,000, as adjusted for cost -
of- living increases in accordance with Code Section 401(a)(17)(B). Compensation means
compensation during the fiscal year. The cost -of- living adjustment in effect for a calendar year
applies to annual compensation for the determination period that begins with or within such
calendar year. If the determination period consists of fewer than 12 months, the annual
compensation limit is an amount equal to the otherwise applicable annual compensation limit
multiplied by a fraction, the numerator 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
-3-
applicable annual compensation limit in effect for that prior period. The limitation on
compensation for an "eligible employee" shall not be less than the amount which was allowed to
be taken into account hereunder as in effect on July 1, 1993. "Eligible employee' is an
individual who was a Member before the first Plan Year beginning after December 31, 1995.
Spouse means the lawful wife or husband of a Member or Retiree at the time benefits
become payable.
System means the City of Ocoee Municipal 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 of this ordinance are hereby
vested in a Board of Trustees. The Board of Trustees is hereby designated as the plan
administrator. The Board shall consist of five (5) Trustees, two of whom, unless otherwise
prohibited by law, shall be legal residents of the City, who shall be appointed by the Ocoee City
Commission, and two of whom shall be Members of the System, who shall be elected by a
majority of the Police Officers and Firefighters who are Members of the 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 four (4) year
term unless he or she sooner vacates the office. Each resident Trustee shall serve as Trustee for a
period of 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 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.
-4-
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 of the Board. A Trustee
shall have the right to recuse himself from voting as the result of a conflict of interest provided
that Trustee states in writing the nature of the conflict.
4. The Board shall engage such actuarial, accounting, legal, and other services as
shall be required to transact the business of the System. The compensation of all persons
engaged by the Board and all other expenses of the Board necessary for the operation of the
System shall be paid from the Fund at such rates and in such amounts as the Board shall agree.
5. The duties and responsibilities of the Board shall include, but not necessarily be
limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
B. To determine all questions relating to eligibility and membership.
C. To determine and certify the amount of all retirement allowances or other
benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required to
administer the System.
E. To distribute to Members, at regular intervals, information concerning the
System.
F. To receive and process all applications for benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other
expenditures arising through operation of the System and Fund.
H. To have performed actuarial studies and valuations, at least as often as
required by law, and make recommendations regarding any and all
changes in the provisions of the System.
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.
-5-
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 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 §280.02, Florida Statutes,
which depository with regard to such funds shall conform to and be bound by all of the
provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as
set forth herein, the Board may retain the services of a custodian bank, an investment advisor
registered under Investment Advisors Act of 1940 or otherwise exempt from such required
registration, an insurance company, or a combination of these, for the purposes of investment
decisions and management. Such investment manager shall have discretion, subject to any
guidelines as prescribed by the Board, in the investment of all Fund assets.
4. All funds and securities of the System may be commingled in the Fund, provided
that accurate records are maintained at all times reflecting the financial composition of the Fund,
including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the City, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the City showing a detailed listing of assets and a statement of all income
and disbursements during the year. Such income and disbursements must be reconciled with the
assets at the beginning and end of the year. Such report shall reflect a complete evaluation of
assets on both a cost and market basis, as well as other items normally included in a certified
audit.
-6-
6. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to said Fund, subject,
however, and in any event to the authority and power of the Ocoee City
,,. Commission to amend or terminate this Fund, provided that no
amendment or Fund termination shall ever result in the use of any assets
of this Fund except for the payment of regular expenses and benefits under
this System, except as otherwise provided herein. All contributions from
time to time paid into the Fund, and the income thereof, without
distinction between principal and income, shall be held and administered
by the Board or its agent in the Fund and the Board shall not be required to
segregate or invest separately any portion of the Fund.
B. All monies paid into or held in the Fund shall be invested and reinvested
by the Board and the investment of all or any part of such funds shall be
subject to the following:
(1) 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
may be invested and reinvested in such securities, investment
vehicles or property wherever situated and of whatever kind, as
shall be approved by the Board, including but not limited to
common or preferred stocks, bonds, and other evidences of
indebtedness or ownership. In no event, however, shall more than
twenty -five percent of the assets of the Fund at market value be
invested in foreign securities.
(2) The Board shall develop and adopt a written investment policy
statement setting forth permissible types of investments, goals and
objectives of investments and setting quality and quantity
limitations on investments in accordance with the
recommendations of its investment consultants. The investment
policy statement shall be reviewed by the Board at least annually.
(3) In addition, the Board may, upon recommendation by the Board's
investment consultant, make investments in group trusts meeting
the requirements of Internal Revenue Service Revenue Ruling 81-
100 or successor rulings or guidance of similar import, and while
any portion of the assets of the Fund are invested in such a group
trust, such group trust is itself adopted as a part of the System or
plan.
C. 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.
-7-
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 of the 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.
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.
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.
-8-
K. The Board shall sustain no liability whatsoever for the sufficiency of the
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 §414(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.
2. State Contributions.
Any monies received or receivable by reason of laws of the 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 of this 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 required City contribution, as shown by the applicable
actuarial valuation of the System.
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.
-9-
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.
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
actuarially reduced 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.
-10-
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 -half (701/2) or the calendar year in which the
Member terminates employment with the City.
SECTION 7. PRE - RETIREMENT DEATH.
1. Prior to Vesting or Eligibility for Retirement.
The Beneficiary of a deceased Member who was not receiving monthly benefits,
or who was not yet vested or eligible for early or normal retirement shall receive a refund of one
hundred percent (100 %) of the Member's Accumulated Contributions.
2. Deceased Members Vested or Eligible for Retirement with Spouse as Beneficiary.
This subsection 2. applies only when the Member's Spouse is the sole designated
Beneficiary. The Spouse Beneficiary of any Member who dies and who, at the date of his or her
death was vested or eligible for early or normal retirement, shall be entitled to a benefit as
follows:
A. 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 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.
-11-
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 70%2.
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 paid to the Spouse
Beneficiary's estate in a lump sum.
3. Deceased Members Vested or Eligible for Retirement with Non - Spouse
Beneficiary.
This subsection applies only when the Member's Spouse is not the Beneficiary or
is not the sole designated Beneficiary, but there is a surviving Beneficiary. The Beneficiary of
any Member who dies and who, at the date of his death was vested or eligible for early or normal
retirement, shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal or early retirement,
the Beneficiary will receive a benefit payable for ten (10) years. The
benefit will begin by December 31 of the calendar year immediately
following the calendar year in which the Member died. The benefit will
be calculated as for normal retirement based on the deceased Member's
Credited Service and Average Final Compensation and actuarially reduced
to reflect the commencement of benefits prior to the normal retirement
date.
B. If the deceased Member was eligible for normal or early retirement, the
Beneficiary will receive a benefit payable for ten (10) years, beginning on
the first day of the month following the Member's death. The benefit will
be calculated as for normal retirement based on the deceased Member's
Credited Service and Average Final Compensation as of the date of his
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.
41krr D. A Beneficiary, may, in lieu of any benefit provided for in A or B above,
elect to receive a refund of the deceased Member's Accumulated
Contributions.
E. If a surviving Beneficiary commences receiving a benefit under subsection
A or B above, but dies before all payments are made, the actuarial value of
the remaining benefit will be paid to the surviving Beneficiary's estate by
-12-
December 31 of the calendar year of the Beneficiary's death in a lump
sum.
F. If there 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 § 1.401(a)(9) -9 shall
determine the payment period for the calendar year benefits commence, if
necessary 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.
(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,
-13-
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
w 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:
i. 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;
iii. 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 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 health that is caused by
-14-
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
fir• 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:
i. 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;
ii. 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;
iii. Engaged in unsafe sexual practices or other high -
risk behavior, as identified by the Centers for
Disease Control or the Surgeon General of the
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.
(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 or public safety Member may
be required by the City to undergo the immunization or
-15-
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 of the 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
toire 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.
-16-
B. Injury or disease sustained while willfully and illegally participating in
rights, 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.
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 determines 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:
-17-
A. If the Retiree recovers from the disability the payment due next preceding
the date of such recovery, or
B. If the Retiree dies without recovering from disability 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 form 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 of forty -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.
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:
-18-
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 of the Retiree,
one hundred percent (100 %), 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 regulations.(See Q & 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 a joint 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 a joint 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 sentence, a Member may substitute a new joint pensioner for a
deceased joint pensioner. In the absence of proof of good health of the joint pensioner being
replaced, the actuary will assume that the joint pensioner has deceased for purposes of
calculating the new payment.
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
-19-
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. If the designated Beneficiary (or Beneficiaries) or joint pensioner dies
before the Member's Retirement under the System, the option elected will
be canceled automatically and a retirement income of the normal form and
amount will be payable to the Member upon his or her Retirement as if the
election had not been made, unless a new election is made in accordance
with the provisions of this Section or a new Beneficiary is designated by
the Member prior to his or her Retirement.
C. If both the Retiree and the Beneficiary (or Beneficiaries) designated by
Member or Retiree die before the full payment has been effected under
any option providing for payments for a period certain and life thereafter,
made pursuant to the provisions of subsection 1, the Board may, in its
discretion, direct that the commuted value of the remaining payments be
paid in a lump sum and in accordance with Section 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
(70 or the calendar year in which the Member terminates employment
with the City.
6. A Retiree may not change his or her retirement option after the date of cashing or
depositing his or her first retirement check.
7. Notwithstanding anything herein to the contrary, the Board in its discretion, may
elect to make a lump sum payment to a Member or a Member's Beneficiary in the event that the
total commuted value of the 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.
-20-
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.
1 `.. 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.
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. 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
-21-
extent as may be necessary to conform to the requirements of Code Section 415 for a qualified
retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan member may not receive an annual benefit that
exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the
applicable adjustments in Code Section 415(b) and subject to any additional limits that may be
specified in this System. For purposes of this Section, "limitation year" shall be the calendar
year.
2. Adjustments 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 actuarially equivalent amount (determined using the assumptions specified in
Treasury Regulation Section 1.415(b)- 1(c)(2)(ii)) that takes into account the death benefits under
the form of benefit.
3. 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).
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 adjustments;
B. thereafter, in any subsequent calendar year, a Member's annual benefit,
including any automatic cost of living increases, shall be tested under the
then applicable benefit limit including any adjustment 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.
1.►- 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.
-22-
5. Other Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty -two (62), the limit prescribed by this Section shall be reduced in
accordance with regulations issued by the Secretary of the Treasury
pursuant to the provisions of Code Section 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 adjustments 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 adjusted so that
it is actuarially equivalent to the benefit beginning at age sixty -five (65).
This adjustment shall be made in accordance with regulations promulgated
by the Secretary of the Treasury or his delegate.
6. Less than Ten (10) Years of Service.
The maximum retirement benefits payable under this Section to any Member who
has completed less than ten (10) years of Credited Service with the City shall be the amount
determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is
the number of the Member's years of Credited Service and the denominator of which is ten (10).
The reduction provided by this subsection cannot reduce the maximum benefit below 10 %. The
reduction provided for in this subsection shall not be applicable to disability benefits paid
pursuant to Section 8, or pre- retirement death benefits paid pursuant to Section 7.
7. Participation in Other Defined Benefit Plans.
The limit of this Section with respect to any Member who at any time has been a
member in any other defined benefit plan as defined in Code Section 414(j) maintained by the
City shall apply as if the total benefits payable under all City defined benefit plans in which the
Member has been a member were payable from one plan.
8. 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 if the benefits payable,
with respect to such Member under this System and under all other qualified defined benefit
hare 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.
-23-
9. Reduction of Benefits.
Reduction of benefits and/or contributions to all plans, where required, shall be
accomplished by first reducing the Member's benefit under any defined benefit plans in which
Member participated, such reduction to be made first with respect to the plan in which Member
most recently accrued benefits and thereafter in such priority as shall be determined by the Board
and the plan administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the Member participated, such reduction to be
made first with respect to the plan in which Member most recently accrued benefits and
thereafter in such priority as shall be established by the Board and the plan administrator for such
other plans provided, however, that necessary reductions may be made in a different manner and
priority pursuant to the agreement of the Board and the plan administrator of all other plans
covering such Member.
10. Service Credit Purchase Limits.
A. Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as
allowed in Section 26 and 28, then the requirements of this Section will be
treated as met only if:
(1) 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
(2) 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).
(3) For purposes of applying subparagraph (1), the System will not fail
to meet the reduced limit under Code Section 415(b)(2)(c) solely
by reason of this subparagraph (3), and for purposes of applying
subparagraph (2) the System will not fail to meet the percentage
limitation under Section 415(c)(1)(B) of the Code solely by reason
of this subparagraph (3).
B. For purposes of this subsection the term "permissive service credit" means
service credit —
(1) recognized by the System for purposes of calculating a Member's
benefit under the plan,
(2) which such Member has not received under the plan, and
(3) 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
lkirw
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
-24-
B.(2), may include service credited in order to provide an increased
benefit for service credit which a Member is receiving under the System.
C. For purposes of applying the limits in this subsection 10., only and for no
other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a calendar year,
except as noted below and as permitted by Treasury Regulations Section
1.415(c) -2, or successor regulations. Unless another definition of
compensation that is permitted by Treasury Regulations Section 1.415(c)-
2, or successor regulation, is specified by the System, compensation will
be defined as wages within the meaning of Code Section 3401(a) and all
other payments of compensation to an employee by an employer for which
the employer is required to furnish the employee a written statement under
Code Sections 6041(d), 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).
(1) However, for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
included in compensation but for an election under Code Sections
125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For calendar
years beginning after December 31, 2000, compensation will also
include any elective amounts that are not includible in the gross
income of the employee by reason of Code Section 132(0(4).
(2) For limitation years beginning on and after January 1, 2007,
compensation for the calendar year will also include compensation
paid by the later of 2'/2 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:
(a) 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
(b) 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.
(3) Back pay, within the meaning of Treasury Regulations Section
1.415(c)- 2(g)(8), shall be treated as compensation for the limitation
year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be
included under this definition.
D. Notwithstanding any other provision of law to the contrary, the Board may
modify a request by a Member to make a contribution to the System if the
-25-
amount of the contribution would exceed the limits provided in Code
Section 415 by using the following methods:
(1) 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).
(2) 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.
11. 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 January 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 apply to social
security benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
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 subject to
the specific provisions contained in this Section. The provisions of this
Section will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year.
B. Precedence. The requirements of this Section will take precedence over
any inconsistent provisions of the Plan.
C. TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Section other than this subsection 1.C., distributions
may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal
-26-
Responsibility Act (TEFRA) and the provisions of the plan that related to
Section 242(b)(2) of TEFRA.
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 or the calendar year in
which the Member 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 1/2, 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.
(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. 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. Death After Distributions Begin. If the Member dies after the required
distribution of benefits has begun, the remaining portion of the Member's
interest must be distributed at least as rapidly as under the method of
distribution before the Member's death.
-27-
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 with this Section.
If the Member's interest is distributed in the form of an annuity purchased
from an insurance company, distributions thereunder will be made in
accordance with the requirements of Section 401(a)(9) of the Code and
Treasury regulations. Any part 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 401(a)(9)
of the Code and Treasury regulations that apply to individual accounts.
3. Determination of Amount to be Distributed Each Year.
A. General 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 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 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., monthly. All of the Member's benefit
accruals as of the last day of the first distribution calendar year will be
included in the calculation of the amount of the annuity payments for
payment intervals ending on or after the Member's required beginning
date.
C. Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Member in a calendar year after the first
distribution calendar year will be distributed beginning with the first
payment interval ending in the calendar year immediately following the
calendar year in which such amount accrues.
-28-
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
)1111w rule under Treasury Regulation Section 1.401(a)(9) -6, Q &A -2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasury
Regulation Section 1.401- 1(b)(1)(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 of the Members' benefits received from the
retirement system.
5. Definitions.
A. Designated Beneficiary. The individual who is designated as the
beneficiary under the Plan and is the designated beneficiary under Section
401(a)(9) of the Code and Section 1.401(a)(9) -1, Q &A -4, of the Treasury
regulations.
B. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Member's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Member's required
beginning date. For distributions beginning after the Member's death, the
first distribution calendar year is the calendar year in which distributions
are required to begin pursuant to Section 7.
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 of the Fund be used for or diverted to any
purpose other than for their exclusive benefit.
2. No Reduction of Accrued Benefits.
No amendment or ordinance shall be adopted by the City Commission 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.
-29-
5. 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.
7. Vesting.
A. Member will be 100% vested in all benefits upon attainment of the Plan's
age and service requirements for the Plan's normal retirement benefit; and
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.
8. 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. § 1.401(a) -21.
9. Use of Forfeitures.
Forfeitures arising from terminations of service of Members shall serve only to
reduce future City contributions.
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.
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
-30-
transfer, merger or consolidation of government units, services or functions there shall be full
vesting (100 %) of benefits accrued to date of repeal and such benefits shall be nonforfeitable.
3. 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.
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 of the 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 single -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.
-31-
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.
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.
3. Exemption from Execution, Non - Assignability.
Except as otherwise provided by law, the pensions, annuities, or any other
benefits accrued or accruing to any person under the provisions of this ordinance and the
Accumulated Contributions and the cash securities in the Fund created under this ordinance are
hereby exempted from any state, county or municipal tax of the state and shall not be subject to
execution, attachment, garnishment or any legal process whatsoever and shall be unassignable.
SECTION 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.
r 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
-32-
or abetment of the following specified offenses, shall forfeit all rights and benefits under this
Pension Fund, except for the return of his or her Accumulated Contributions as of the date of
termination. Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
%,,,, 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
G. The committing on or after October 1, 2008, of any felony defined in
Section 800.04, Florida Statutes, against a victim younger than sixteen
(16) years of age, or any felony defined in Chapter 794, Florida Statutes,
against a victim younger than eighteen (18) years of age, by a public
officer or employee through the use or attempted use of power, rights,
privileges, duties, or position of his or her public office or employment
position.
2. Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury 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
-33-
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,
tip, 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 of their official duty as members of the
Board. The City reserves the right, in its sole discretion, to settle or not settle the claim at any
time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will
indemnify, defend and hold harmless any members of the Board from the judgment, execution,
or levy thereon.
2. This Section shall not be construed so as to relieve any insurance company or
other entity liable to defend the claim or liable for payment of the judgment or claim, from any
liability, nor does this Section waive any provision of law affording the City immunity from any
suit in whole or part, or waive any other substantive or procedural rights the City may have.
3. This Section shall not apply nor shall the City be responsible in any manner to
defend or pay for claims arising out of acts or omissions of members of the Board which
constitute felonies or gross malfeasance or gross misfeasance in office.
SECTION 24. FAMILY AND MEDICAL LEAVE ACT.
The fractional parts of the 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.
-34-
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 of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include:
any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated Beneficiary, or for a
specified period of ten (10) 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. 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); 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.
-35-
(2) Eligible Retirement Plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the Code; an individual
retirement annuity described in section 408(b) of the Code; an annuity
plan described in section 403(a) of the Code; effective January 1, 2002, an
eligible deferred compensation plan described in section 457(b) of the
Code which is maintained by an eligible employer described in section
457(e)(1)(A) of the Code and which agrees to separately account for
amounts transferred into such plan from this plan; effective January 1,
2002, an annuity contract described in section 403(b) of the Code; a
qualified trust described in section 401(a) of the Code; or effective
January 1, 2008, a Roth IRA described in Section 408A of the Code, that
accepts the distributee's eligible rollover distribution. This definition shall
also apply in the case of an eligible rollover distribution to the surviving
Spouse, an eligible retirement plan is an individual retirement account or
individual retirement annuity.
(3) Distributee: A distributee includes an employee or former employee. It
also includes, the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse. Effective
January 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:
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 IRAs. The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408(a) or
408(b) of the Code that is eligible to be rolled over.
-36-
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
`iii,, 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, or the years 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
Florida 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. 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 purchase of credit for prior service with the City of Ocoee and such credit shall count
for all purposes, including vesting.
5. In no event, however, may Credited Service be purchased pursuant to this Section
for prior service with any other 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 Section 15, subsection
11.B.
6. 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 may 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.
-37-
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 if the 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.
In lieu of terminating his employment as a Police Officer or Firefighter,
any Member who is eligible for normal retirement under the System may
elect to defer receipt of such service retirement pension and to participate
in the DROP.
B. Election to Participate.
A Member's election to participate in the DROP must be made in writing
in a time and manner determined by the Board and shall be effective on
the first day of the first calendar month which is at least fifteen (15)
business days after it is received by the Board.
C. Period of participation.
A Member who elects to participate in the DROP under subsection 2.B.,
shall participate in the DROP for a period not to exceed sixty (60) months
beginning on the date which the Member first becomes eligible for normal
retirement. An election to participate in the DROP shall constitute an
irrevocable election to resign from the service of the City at the time of
election into the DROP. A Member may participate only once.
-38-
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 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
-39-
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 terminates 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.D., 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.D.(2), a Member's
DROP Account under this subsection 3.B. shall be debited or
credited after each fiscal year quarter with either:
(a) Interest at an effective rate of six and one -half percent
(6.5 %) per annum compounded monthly on the prior
month's ending balance; or
(b) Earnings, determined as follows:
'411"0►' 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
-40-
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.(1)(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.F. Elections under this
paragraph shall be in writing and shall be made in such time or
manner as the Board shall determine.
-41-
(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.
err
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 of the DROP's assets shall be placed in the
Board. The members of the Board may appoint from their number such
subcommittees with such powers as they shall determine; may adopt such
r administrative procedures and regulations as they deem desirable for the
conduct of their affairs; may authorize one or more of their number or any
agent to execute or deliver any instrument or make any payment on their
behalf; may retain counsel, employ agents and provide for such clerical,
accounting, actuarial and consulting services as they may require in
-42-
carrying out the provisions of the DROP; and may allocate among
themselves or delegate to other persons all or such portion of their duties
under the DROP, other than those granted to them as Trustee under any
trust agreement adopted for use in implementing the DROP, as they, in
their sole discretion, shall decide. A Trustee shall not vote on any
question relating exclusively to himself.
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.
(1) The Trustees shall not incur any liability individually or on behalf
of any other individuals for any act or failure to act, made in good
faith in relation to the DROP or the funds of the DROP.
(2) Neither the Board nor any Trustee of the Board shall be
responsible for any reports furnished by any expert retained or
employed by the Board, but they shall be entitled to rely thereon as
well as on certificates furnished by an accountant or an actuary,
and on all opinions of counsel. The Board shall be fully protected
with respect to any action taken or suffered by it in good faith in
reliance upon such expert, accountant, actuary or counsel, and all
actions taken or suffered in such reliance shall be conclusive upon
any person with any interest in the DROP.
-43-
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 of the 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 whom he resides. Any
payment so made shall be a complete discharge of the liabilities of the
DROP for that benefit.
C. Information.
Each Member, Beneficiary or other person entitled to a
benefit, before any benefit shall be payable to him or on his account under
the DROP, shall file with the Board the information that it shall require to
establish his rights and benefits under the DROP.
D. Prevention of Escheat.
If the Board cannot ascertain the whereabouts of any
person to whom a payment is due under the DROP, the Board may, no
earlier than three (3) years from the date such payment is due, mail a
notice of such due and owing payment to the last known address of such
person, as shown on the records of the Board or the City. If such person
has not made written claim therefor within three (3) months of the date of
the mailing, the Board may, if it so elects and upon receiving advice from
counsel to the DROP, direct that such payment and all remaining
payments otherwise due such person be canceled on the records of the
DROP. Upon such cancellation, the DROP shall have no further liability
therefor except that, in the event such person or his Beneficiary later
notifies the Board of his whereabouts and requests the payment or
payments due to him under the DROP, the amount so applied shall be paid
to him in accordance with the provisions of the DROP.
-44-
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
■rr and filed with the Board in a time and manner determined by the
Board under rules uniformly applicable to all employees similarly
situated. The Board reserves the right to change from the time and
manner for making notifications, elections or designations by
Members under the DROP if it determines after due deliberation
that such action is justified in that it improves the administration of
the DROP. In the event of a conflict between the provisions for
making an election, notification or designation set forth in the
DROP and such new administrative procedures, those new
administrative procedures shall prevail.
(2) Each Member or Retiree who has a DROP Account shall be
responsible for furnishing the Board with his 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
ktitr 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 of law.
-45-
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 normal
retirement date. The total BAC -DROP period shall not exceed sixty (60)
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 of BAC -DROP entry, as described in Section
10, Optional Forms 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. Multiple requests to purchase Credited Service pursuant to this Section may be
made at any time prior to Retirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his 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.
*l o'"'' 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.
-46-
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.
1. 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 subject 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 System, shall
upon 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 of the
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 joint
pensioner selected upon initial retirement shall not be subject to change upon subsequent
retirement except as otherwise provided herein, but the Member may select a different optional
form and joint pensioner applicable to the subsequent retirement benefit.
3. 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 Early Retirement. Any Retiree who is retired under early retirement
pursuant to this System and who subsequently becomes an employee of the City in any capacity
shall discontinue receipt of benefits from the System. If by 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 of the 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 joint pensioner
selected upon initial retirement shall not be subject to change upon subsequent retirement except
-47-
as otherwise provided herein, but the member may select a different optional form and joint
pensioner applicable to the subsequent retirement benefit. Retirement pursuant to an early
retirement incentive program shall be deemed early retirement for purposes of this Section if the
Member was permitted to retire prior to the customary retirement date provided for in the System
at the time of retirement.
5. Reemployment of Terminated Vested Persons. Reemployed terminated vested
persons shall not be subject to the provisions of this Section until such time as they begin to
actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as
normal or early Retirees for purposes of applying the provisions of this Section and their status
as an early or normal Retiree shall be determined by the date they elect to begin to receive their
benefit.
6. DROP participants. Members or retirees who are or were in the deferred
retirement option plan shall, following termination of employment after DROP participation,
have the options provided for in this section for reemployment.
ksh\noc\ksh \ocoee \pfl05- 19- 10.rest
-48-