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HomeMy WebLinkAboutItem #15 Second Reading of Proposed Ordinance Amending the City of Ocoee Municipal General Employees' Retirement Trust Fund%3� fIorido AGENDA ITEM COVER SHEET Meeting Date: September 17, 2013 Item # I Reviewed By: Russell B. Wagner, Chairman Contact Name: Ocoee General Employees' Department Director: Retirement Board Contact Number: (407) 905 -3157 City Manager: Subject: Proposed Ordinance Amending the City of Ocoee Municipal General Employees' Retirement Trust Fund Background Summary: The attached cover letter from Attorney H. Lee Dehner outlines amendments which are required to be made to the General Employees' Trust Fund Ordinance to conform to Federal Internal Revenue Code changes. These changes are mandatory to ensure the Plan's tax qualified status. Additionally, there are some actuarial modifications proposed. None of these changes are anticipated to have any financial costs to the City. Issue: Should the Mayor and City Commissioners adopt an Ordinance amending the City of Ocoee Municipal General Employees' Retirement Trust Fund? Recommendations The Ocoee General Employees' Retirement Board respectfully recommends that the Mayor and City Commissioners adopt the attached Ordinance amending the City of Ocoee Municipal General Employees' Retirement Trust Fund. Attachments: Letter from Attorneff, H. Lee Dehner, dated July 24, 2013 Ordinance mending Ordinance 2009 -020 Ordinance 2009 -020 Financial Impact: None Type of Item (please mark with an x') Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda X Ordinance Second Reading X Public Hearing Resolution Regular Agenda Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by N/A Law Offices Christiansen & Delmer, P.A. 63 Sarasota Center Blvd. Suite 107 Sarasota, Florida 34240 • 941- 377 -2200 • Fax 941 - 377 -4848 July 24, 2013 Mr. Robert D. Frank City of Ocoee 452 S. Lakewood Avenue Ocoee, FL 34761 Re: City of Ocoee Municipal General Employees' Retirement Trust Fund Dear Mr. Frank: As you know, I represent the Board of Trustees of the City of Ocoee Municipal General Employees' Retirement Trust Fund. Enclosed please find a proposed ordinance amending the City of Ocoee Municipal General Employees' Retirement Trust Fund, which is recommended by the Board for adoption by the City Commission. This ordinance amends Section I, Definitions to amend the definition of Credited Service, Section 4, Finances and Fund Management, and Section 14, Maximum Pension, to comply with recent changes to the Internal Revenue Code (IRC) relating to tax qualified pension plans such as this plan. These amendments clarify language required by the IRC and are mandatory amendments that must be made by September 30, 2013 to ensure the continuation of the plan's tax qualified status. With these additional changes, the pension plan will comply with all required applicable IRC changes and updates. In addition to the above mandatory changes, Section 1, Definitions is also being amended by amending the definition of Actuarial Equivalent to reflect the mortality table and interest rate currently being used by the plan's actuary. By copy of this letter to the plan's actuary, Foster & Foster, Inc., 1 am requesting that they provide you with a letter indicating that there is no cost associated with the adoption of this ordinance. If you or any member of your staff have any questions with regard to this ordinance, please feel free to give me a call. In addition, if you feel it would be appropriate for me to be present at the meeting at which this ordinance is considered by the City Commission, please contact my office to advise me of the date that the ordinance would be considered. Yours very truly, H. Lee Dehner HLD /ksh enclosure cc: Doug Lozen, with enclosure Russ Wagner, with enclosure ORDINANCE NO. 2013 -011 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND, ADOPTED BY ORDINANCE NUMBER 2009 -020; AS SUBSEQUENTLY AMENDED; AMENDING SECTION 1, DEFINITIONS BY AMENDING THE DEFINITIONS OF "ACTUARIAL EQUIVALENT" AND "CREDITED SERVICE "; AMENDING SECTION 4, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 14, MAXIMUM PENSION; 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 : That the City of Ocoee Municipal General Employees' Retirement Trust Fund adopted by Ordinance No. 2009 -020, as subsequently amended, is hereby further amended by amending Section 1, Definitions, by amending the definitions of "Actuarial Equivalent" and "Credited Service ", to read as follows: uivalent means a benefit or amount of equal value, determined on the basis of based upon the RP 2000 Combined Healthy Mortality fable and an interest rate of eight percent (8 %) per amlum This definition may 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. Credited Service means the total number of years and fractional parts of years of service as a General Employee with Member contributions, when required, or effective October 1, 2006 as a Mayor or a Commissioner, omitting intervening years or fractional parts of years when such Member was not employed by the City as a General Employee or an elected official. A Member may voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the employ of the City pending the possibility of being rehired without losing credit for the time that he or she was a Member of the System. If the Member is not reemployed within five (5) years, then the Accumulated Contributions will be returned upon written request of the Member. If a Member who is not vested is not reemployed as a General Employee with the City of Ocoee within five (5) years, his or her Accumulated Contributions, if one- thousand dollars ($1,000.00) or less, shall be returned. If a Member who is not vested is not reemployed within five (5) years, his or her Accumulated Contributions, if more than one- thousand dollars ($1,000.00), will be returned only upon the written request of the Member and upon completion of a written election to receive a cash lump sum or to rollover the lump sum amount on forms designated by the Board. Upon return of his or her Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and terminated. Those Members who terminated employment with the City of Ocoee prior to October 1, 1991 and who became or will become reemployed on or after October 1, 1991 shall be granted Credited Service for the total number of years and fractional parts of years of service as a General Employee with the City of Ocoee prior to October 1, 1991. Page 1 The years or parts of a year that a member performs "Qualified Military Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103 -353), after separation from employment as a General Employee to perform training or service, shall be added to his or her years of Credited Service for all purposes, including vesting, provided that: A. The Member is entitled to reemployment under the provisions of USERRA. B. The Member returns to his or her employment as a General Employee within one (1) year following the earlier of the date of his or her military discharge or his or her release from service, unless otherwise required by USERRA. C. The Member deposits into the Fund the same sum that the Member would have contributed, if any, if he or she had remained a General Employee during his or her absence. The maximum credit for military service pursuant to this subdivision shall be five (5) years. The Member must deposit all missed contributions within a period equal to three times the period of military service, but not more than five (5) years, following re- employment or lie or she will forfeit the right to receive credited service for his or her military service pursuant to this paragraph. D. This paragraph is intended to satisfy the minimum requirements of 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 (except a Mayor or Commissioner Member) of this System has also accumulated credited service in another pension system maintained by the City, or has a period or periods of previous employment as a General Employee, but is not eligible to receive Credited Service for this period or periods of previous employment for benefit calculation purposes, then such other credited service shall be used in determining vesting as provided for in Section 8, and for determining eligibility for early or normal retirement. Such other credited service will not be considered in determining benefits under this System. Unless otherwise provided herein, only his or her Credited Service and Salary under this System on or after his or her latest date of membership in this System will be considered for benefit calculation. In addition, any benefit calculation for a Member 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 General Employee. Page 2 shall be treated as compensation for purposes of applying the limits on annual additions under Section 415(c) of the Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner. SECTION 3 : That the City of Ocoee Municipal General Employees' Retirement Trust Fund adopted by Ordinance No. 2009 -020, as subsequently amended, is hereby further amended by amending Section 4, Finance and Fund Management, subsection 6.B.(3) to read as follows: (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 Reverie Ruling 81 -100 and Revenue Ruling _2011 -1 or successor rulings or guidance of similar import, and operated or maintained exclusively for the commingling and collective investment of monies provided that the finds in the group trust consist exclusively of trust assets held wider plans qualified under Section 401(a) of the Code, individual rrfirrrnPnt arrnllntc that are. exernnt Under Section 408(e) of the Code, eligible governmental plans that meet the requirements of Section 457(b) of the Code and governmental plans under 401(a)(24) of the Code For this purpose a trust includes a custodial account that is treated as a trust under Section 401(f) or under Section 457(g)(3) of the Code. W hile 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. SECTION 4 : That the City of Ocoee Municipal General Employees' Retirement Trust Fund adopted by Ordinance No. 2009 -020, as subsequently amended, is hereby further amended by amending Section 14, Maximum Pension, to read as follows: SECTION 14. MAXIMUM PENSION Basic Limitation Notwithstanding any other provisions of this System to the contrary, the Member contributions paid to, and retirement benefits paid from, the System shall be limited to such extent as may be necessary to conform to the requirements of Code Section 415 for a qualified retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a plan member may not receive an annual benefit that exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the applicable adjustments in Code Section 415(b) and subject to any additional limits that maybe specified in this System. For purposes of this Section, "limitation year" shall be the calendar year. For urposes of Code Section 415(b) the "annual benefit" means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) without regard to the benefit attributable to after -tax employee contributions (except pursuant to Code Section 415(n) and to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable" shall be detenmined in accordance with 'treasury Regulations. 2. Adjustments to Basic Limitation for Form of Benefit CIL l UV LLIal lally L LJU 1V Q1V111M t 1vldu{. --r -- -- -� - - - o - -- -- - -- _ benefits . If the benefit under the plan is other than the annual benefit described in subsection 1., then the benefit shall be adjusted so that it is the equivalent of the annual benefit using factors prescribed in Treasury Page 3 Regulations. If the form of the benefit without regard to any automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor armuity, then the preceding sentence is applied by either reducing the Code Section 415(b) limit applicable at the annuitv startina date or benefits under the form of benefit as follows: A. For a benefit paid in a form to which Section 417(e)(3) of the Code does not apply (generally, a monthly benefit), the actuarially equivalent straight life annuity benefit that is the greater of: The annual amount of the straight life annuit (cif any) payable to the Member under the Plan commencing at the same annuity starting date as the form of benefit to the Member, or The annual amount of the straight life amruity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the Member, computed using a five percent (5 %) interest assumption (or the applicable statutory interest assumption) and (i) for years prior to January 1, 2009, the applicable mortality tables described in Treasury Regulation Section 1.417(e)- I (d)(2) (Revenue Ruline 2001 -62 or any subseauent Revenue Rulinu tables described in Section 417(e)(3)(B) of the Code (Notice 2008 -85 or any subsequent Internal Revenue Service guidance implementing Section 417(e (3 )(B) of the Code); or B. For a benefit paid in a form to which Section 417(e )(3) of the Code applies . (generally, a lump sum benefit) the actuarially equivalent straight life annuity benefit that is the greatest of: The annual amount of the straight life annuity commencing at t the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table or tabular factor, specified in the Plan for actuarial experience; The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using a five and one half percent (5.5 %) interest assumption or the applicable statutory interest assumption and (i ) for years prior to January 1, 2009, the applicable mortality tables for the di stributio n under Treasury Regulation Section 1.417(e)- 1(d)(2) (the mortality table specified in Revenue Ruling 2001 -62 or any subsequent Revenue Ruling modifying the he applicable provisions of Revenue Ruling 2001 -62 ), and (ii) for vears after December 31. 2008. the annlicable mortality tables 417(e)(3)(B) of the Code); or The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e) 1(d)(3) (the 30-year Treasury rate ate (prior to January 1, 2007, Page 4 inQ the rate in effect for t alter January 1, 2007 using the rate in effect for the first day of f the Plan Year with a one -year stabilization period)) and (i) for years prior to January 1, 2009, the applicable mortality tables for the distribution under Treasury Regulation Section 1.417(e)- 1(d)(2) (the mortality table specified in Revenue Ruling 2001 -62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001 -62 , and (ii) for years after December 31 2008 the applicable mortality tables described in Section 417(e)(3 'B) of the Code (Notice 2008 -85 or any subsequent Internal Revenue Service guidance implementing Section 417(e)(3)(B)of the Code divided by 1.05. C. The actuary may adjust the 415(b) limit at the annuity starting date in accordance with subsections A. and B above. 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) and C. That portion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity 4. COLA Effect Effective on and after January 1, 2003, for purposes of applying the I imits 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 limitation year of benefit payments without regard to any automatic cost of living adjustments; B. thereafter, in any subsequent calendar limitation 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(4), and the regulations thereunder; but C. In no event shall a Member's benefit payable under the System in any calendar limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to Code Section 415(d) and the regulations thereunder. Unless otherwise specified in the System, for purposes of applying the limits under Code Section 415(b), a Member's applicable limit will be applied taking into consideration cost of living increases as required by Section 415(b) of the Code and applicable Treasury Regulations. Page 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 (5160,000) 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 pre - retirement death benefits paid pursuant to Section 7. D. In the event the Member's retirement benefit becomes payable after age sixty - five (65), for purposes of determining whether this benefit meets the limit set forth in subsection 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty -five (65). This adjustment shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate. 6. Less than Ten (1 0) Years of Participation or 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% of the limit determined without regard to this subsection The reduction provided for in this subsection shall not be applicable to pre - retirement death benefits paid pursuant to Section 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 4140) 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, Less Than Ten Years of Service Notwithstanding the- feregoing anything in this Section 14 , the retirement benefit payable with respect to a Member shall be deemed not to exceed the limit set forth in this subs ection 8. of Section 14 if the benefits payable, with respect to such Member under this System and under all other qualified defined benefit pension plans to which the City contributes, do not exceed ten thousand dollars ($10,000) for the applicable Plan -fir limitation year and for any prior Pl Yen, limitation year and the City has not any time maintained a qualified defined contribution plan in which the Member participated provided however, that if the Member has completed less than ten (10) years of Credited Service with the City, the limit under this subsection 8. of Section 14 shall be a reduced limit equal to ten thousand dollars ($10,000) multiplied by a fi - action, the numerator of which is the number of the Member's years of Credited Service and the denominator of which is ten Page 6 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 27, then the requirements of this Section will be treated as met only if. (1) the requirements of Code Section 415(b) arc 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). (j 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 . 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 benefit attributable to such service credit. Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such tern may, if otherwise provided by the System, include service credit for periods for which there is no performance of service, and, notwithstanding clause 13.(2), may include service credited in order to provide an increased benefit for service credit which a Member is receiving under the System. Page 7 11. Contribution Limits. e A. For purposes of applying the Code Section 415(c) limits in this subset 4+ which are incorporated by reference and for purposes of this subsection 11., only and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a calendar limitation year, except as noted below and as permitted by'freasury 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(x)(2). (1) However, for mar limitation 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 limitation 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(f)(4). (2) For limitation years beginning on and after January 1, 2007, compensation for the calendar limitation 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 calenda limitation 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 B. Notwithstanding any other provision of law to the contrary, the Board may modify a request by a Member to make a contribution to the System if the amount of the contribution would exceed the limits provided in Code Section 415 by using the following methods: Page 8 (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. C. if the annual additions for any Member for a limitation year exceed the limitation tinder Section 415(c) of the Code the excess annual addition will be corrected as permitted under the Employee Plans Compliance Resolution System (or similar IRS correction prog_raIR D. For limitation years b of this Code. ++ 12. Additional Limitation on Pension Benefits Notwithstanding anything herein to the contrary: a Member' 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 or her Average Final Compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost -of- living increases or adjustments. B. No Member ofthe System shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the Member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, 'Title 10, U.S. Code. SECTION 5 . 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 6 . Repeal of Ordinances All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 7 . Effective Date This ordinance shall be effective on the date of adoption. PASSED AND ADOP'T'ED this ATTEST: Beth Eikenberry, City Clerk day of 1 2013. Page 9 APPROVED: CfTY OF OCOEE, I'LORIDA I3y: S. Scott Vandergrift, Mayor (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALI`1'Y THIS day of , 2013 CHRISTIANSEN & DEHNER, P.A. Special Counsel By: ksh \ocoeeAaenW7- 19- 13.ord ADVERTISED READ FIRST TIME; 2013 2013 READ SECOND TIME AND ADOPTED , 2013 APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON 2013 UNDER AGENDA ITEM NO. Page 10 ORDINANCE NO. 2009 -020 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, RELATING TO THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND; AMENDING AND RESTATING IN FULL, ORDINANCE NUMBER 96 -19, AS SUBSEQUENTLY AMENDED; PROVIDING FOR DEFINITIONS; PROVIDING FOR MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENT; PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR PRE - RETIREMENT' DEATH BENEFITS; PROVIDING FOR VESTING OF BENEFITS; PROVIDING OPTIONAL FORMS OF BENEFITS; PROVIDING FOR BENEFICIARIES; PROVIDING CLAIMS PROCEDURES; PROVIDING FOR A ROSTER OF RETIREES; PROVIDING FOR A MAXIMUM PENSION LIMITATION; PROVIDING FOR MINIMUM DISTRIBUTION OF BENEFITS; PROVIDING MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF THE SYSTEM; PROVIDING FOR DOMESTIC RELATIONS ORDERS, RE'T'IREE DIRECTED PAYMENTS AND EXEMPTION FROM EXECUTION AND NON - ASSIGNABILITY; PROVIDING FOR PENSION VALIDITY; PROVIDING FOR FORFEITURE OF PENSION UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR INDEMNIFICATION AND DEFENSE OF CLAIMS; PROVIDING FOR THE PURCHASE OF CREDI'T'ED SERVICE FOR ABSENCES PURSUANT TO THE FAMILY AND MEDICAL LEAVE ACT; PROVIDING FOR DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS AND ELIMINATION OF MANDATORY DIS'T'RIBU'T'IONS; PROVIDING FOR REEMPLOYMENT AFTER RETIREMENT; PROVIDING FOR A DEFERRED RETIREMENT OPTION PLAN; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR PRIOR GOVERNMENT SERVICE; PROVIDING FOR MILITARY SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR "AIR TIME "; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. SECTION 1 : Authority The City Commission of the City of Ocoee has the authority to adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes SECTION 2 : The present ordinances numbers 96 -19, 97 -27, 99 -34, 2002 -25, 2005 -015, 2006 -004, 2006 -010, 2007 -001, and 2008 -08, adopted by the City Commission of the City of Ocoee, are hereby amended and restated in frill incorporating Federal law, the applicable provisions of the Florida Statutes and other amendments as set forth in THE CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND, a copy of which is attached hereto, and by this reference made a part hereof. SECTION 3 . Repeal of Ordinances All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 4 . Severability In the event any section, subsection, paragraph, sentence, clause, phrase or word of this ordinance shall be held invalid by a court of competent jurisdiction, then such invalidity shall not effect the remaining portions hereof. SECTION 5 . Effective Date This ordinance shall take effect upon second reading and adoption. PASSED AND ADOPTED this day of I , 2009. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA ikenberry, City Cler (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY THIS DAY OF J-u.t- , 2009. CHRISTIANSEN & DEFINER, P.A. Special Counsel By: S. Scott Vandergri , Mayor ADVERTISED L)un -e ! , 2009 READ FIRST TIME i lp f , 2009 READ SECOND TIM Y AND ADOPTED ��� , 2009 APPROVED BY THE OCOEE CITY COMMI SION AT A MEETING HELD ON • {' , 2009 UNDER AGENDA ITEM 40. CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND SECTION 1. DEFINITIONS 1. As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Accumulated Co means a Member's own contributions without interest. For those Members who purchase Credited Service with interest or at no cost to the System, any payment representing the amount attributable to Member contributions based on the applicable Member contribution rate, any payment representing interest and any required actuarially calculated payments for the purchase of such Credited Service, shall be included in Accumulated Contributions. Ac tuarial Equivalen means a benefit or amount of equal value, determined on the basis of actuarial equivalency using assumptions adopted by the Board such that benefit calculations are not subject to City discretion. Average Final C ompensati on means one - twelfth (1/12) of the average Salary of the five (5) best years of the last ten (l 0) years of Credited Service prior to Retirement, termination, or death. A year shall be twelve (12) consecutive months. Bene means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been designated in writing by the Member and filed with the Board. If no such designation is in effect, or if no person so designated is living, at the time of death of the Member, the Beneficiary shall be the estate of the Member. Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as trustees of the Fund. City means City of Ocoee, Florida. Code means the Internal Revenue Code of 1986, as amended from time to time. Credited Service means the total number of years and fractional parts of years of service as a General Employee with Member contributions, when required, or effective October 1, 2006 as a Mayor or a Commissioner, omitting intervening years or fractional parts of years when such Member was not employed by the City as a General Employee or an elected official. A Member may voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the employ of the City pending the possibility of being rehired without losing credit for the time that he or she was a Member of the System. If the Member is not reemployed within five (5) years, then the Accumulated Contributions will be returned upon written request of the Member. if a Member who is not vested is not reemployed as a General Employee with the City of Ocoee within five (5) years, his or her Accumulated Contributions, if one - thousand dollars ($1,000.00) or less, shall be returned. If a Member who is not vested is not reemployed within five (5) years, his or her Accumulated Contributions, 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 stun or to rollover the lump sum amount on forms designated by the Board. Upon return of his or her Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and terminated. Those Members who terminated employment with the City of Ocoee prior to October 1, 1991 and who became or will become reemployed on or after October 1, 1991 shall be granted Credited Service for the total number of years and fractional parts of years of service as a General Employee with the City of Ocoee prior to October 1, 1991. Tile years or parts of a year that a member performs "Qualified Military Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in the Page 3 Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103 -353), after separation from employment as a General Employee to perform training or service, shall be added to his or her years of Credited Service for all purposes, including vesting, provided that: A. The Member is entitled to reemployment under the provisions of USERRA. B. The Member returns to his or her employment as a General Employee within one (1) year following the earlier of the date of his or her military discharge or his or her release from service, unless otherwise required by USERRA. C. The Member deposits into the Fund the same sum that the Member would have contributed, if any, if he or she had remained a General Employee during his or her absence. The maximum credit for military service pursuant to this subdivision shall be five (5) years. The Member must deposit all missed contributions within a period equal to three times the period of military service, but not more than five (5) years, following re- employment or he or she will forfeit the right to receive credited service for his or her military service pursuant to this paragraph. D. This paragraph is intended to satisfy the minimum requirements 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 (except a Mayor or Commissioner Member) of this System has also accumulated credited service in another pension system maintained by the City, or has a period or periods of previous employment as a General Employee, but is not eligible to receive Credited Service for this period or periods of previous employment for benefit calculation purposes, then such other credited service shall be used in determining vesting as provided for in Section 8, and for determining eligibility for early or normal retirement. Such other credited service will not be considered in determining benefits under this System. Unless otherwise provided herein, only his or her Credited Service and Salary under this System on or after his or her latest date of membership in this System will be considered for benefit calculation. In addition, any benefit calculation for a Member 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 General Employee. Effective Da te means October 1, 1991. Fund means the trust fund established herein as part of the System. _Gener Employe e means any actively employed person in the regular full -time service of the City, including those in their initial probationary employment period, but not including certified police officers and certified firefighters, employed by the City. M ember means an actively employed General Employee who fulfills the prescribed membership requirements, and effective October 1, 2006, current and future Mayors and Commissioners. Mayors and Commissioners are non- contributing members and shall have a normal retirement date, an early retirement date and vesting applicable to them as provided for herein. Benefit improvements which, in the past, have been provided for by amendments to the System adopted by City ordinance, and any benefit improvements which might be made in the future shall apply prospectively and shall not apply to Members who terminate employment or Page 4 who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Pl an Year means the twelve (12) month period beginning October 1 and ending September 30 of the following year. Reti ree means a Member who has entered Retirement Status. R etirement means a Member's separation from City employment with eligibility for immediate receipt of benefits under the System. Salary means the total compensation (and travel stipend for the Mayor and Commissioners) reported on the Member's W -2 form plus all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions. Compensation in excess of 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 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. S ouse means the lawful wife or husband of a Member or Retiree at the time benefits become payable. System means the City of Ocoee Municipal General Employee's Retirement Trust Fund as contained herein and all amendments thereto. SECTION 2. MEMBERSHIP Con ditions of Eligibili Subject to A. of this subsection, all General Employees as of the Effective Date, and all future new General Employees, shall become Members of this System as a condition of employment. A. The following employees may notify the Board and the city of his or her election not to be a member of the System. Thereupon, it shall be the duty of the Board of Trustees to refund, from the Fund, the full amount without interest, withheld from such employee's salary and deposited in the Fund. Thenceforward, except as provided for in subparagraph B., below, no withholding shall be made from his or her salary and all employees who have given such notice shall be banned from participating in the System. The employees who are eligible to opt out of tile System are: City Manager, Assistant City Manager and Directors. Page 5 B. Effective July 11, 2009, the current City Manager shall be provided with five (5) years of Credited Service in the System at no cost to him and at such time shall be a vested Member and commence making Member Contributions in the amount of seven and four - tenths percent (7.4 %) of his salary. C. Effective October 1, 2006, current and future Mayors and Commissioners, may elect to enter the System as non - contributory Members and receive Credited Service for those years, and fractional parts of years of service as an elected official with the City, determined as if they had been Members of the System on the date they took office. 2. Membe rship. Each Member shall complete a form prescribed by the Board providing for the designation of a Beneficiary or Beneficiaries. SECTION 3. BOARD OF TRUSTEES I . 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 of Trustees shall consist of five (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the City, who shall be appointed by the Ocoee City Commission, and two of whom shall be full -time vested Members of the System, who shall be elected by a majority of the General Employees who are Members 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 General Employee or otherwise vacates his or her office as Trustee, whereupon a successor shall be chosen in the same manner as the departing Trustee. Each Trustee may succeed himself or herself in office. The Board shall establish and administer the nominating and election procedures for each election. The Board shall meet at least quarterly each year. The Board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. 2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The Secretary of the Board shall keep a complete minute book of the actions, proceedings, or hearings of the Board. The Trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by law. 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 or herself from voting as the result of a conflict of interest provided that the Trustee complies with the provisions of Section 1 12.3143, Florida S tat utes . 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. Page 6 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. To perform such other duties as are required to prudently administer the System. SECTION 4. FINANCES AND FUND MANAGEMENT Establishment a nd Operation of Fund 1. As part of the Systern, there exists the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, including the assets of the prior Municipal General Employee's Retirement Trust Fund. 2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board. 3. All funds of the Municipal General Employee's Retirement 'Trust Fund may be deposited by the Board with the Finance Director of the City, acting in a ministerial capacity only, 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 finds so deposited with the Finance Director of the City shall be kept in a separate fiend by the Finance Director or clearly identified as such funds of the Municipal General Employee's Retirement Trust Fund. In lieu thereof, the Board shall deposit the funds of the Municipal General Employee's Retirement "Trust Fund in a qualified public depository as defined in §280.02, Fl orida Statu tes, which depository with regard to such funds shall conform to and be bound by all of the provisions of Chapter 280, Florida Statute 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. Pagc 7 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 F. All interest, dividends and gains (or losses) whatsoever, and F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. S. An audit shall be performed annually by a certified public accountant for the most recent fiscal year of the City showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. 6. The Board shall have the following investment powers and authority: A. The Board shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the Ocoee City Commission to amend or terminate this Fund, provided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this System, except as otherwise provided herein. All contributions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund. B. All monies paid into or held in the Fund shall be invested and reinvested by the Board and the investment of all or an_y part of such funds shall be subject to the following: (1) Notwithstanding any limitation provided for in the Flo Statutes to the contrary (unless such limitation may not be amended by local ordinance) or any limitation in prior city ordinances to the contrary, all monies paid into or held in the Fund may be invested and reinvested in such securities, investment vehicles or property wherever situated and of whatever kind, as shall be approved by the Board, including but not limited to common or preferred stocks, bonds, and other evidences of indebtedness or ownership. In no event, however, shall more than ten percent of the assets of the Fund be invested in foreign securities, unless the Florida Statutes are amended to remove or change or this mandatory restriction. Page 8 (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 duality and quantity limitations on investments in accordance with the recommendations of its investment consultants. The investment policy statement shall be reviewed by the Board at least annually, and shall be followed by the Board in making its investment decisions. (3) In addition, the Board may, upon recommendation by the Board's investment consultant, make investments in group trusts meeting the requirements of Internal Revenue Service Revenue Ruling 81- 100 or successor rulings or guidance of similar import, and while any portion of the assets of the Fund are invested in such a group trust, such group trust is itself adopted as a part of the System or plan. C. The Board may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the System. D. The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund. E. The Board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the Trustees or with depositories designated thereby, to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the Fund which it may deem to be to the best interest of the Fund to exercise. F. The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. G. Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as Trustee under this ordinance, can reasonably be taken or performed only after receipt by it from a Member, the City, or any other entity, of specific information, certification, direction or instructions, the Board shall be free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instruction has been received by it. H. Any overpayments or underpayments from the Fund to a Member, Retiree or Beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board in such a manner that the Actuarial Equivalent of the benefit to which the Member, Retiree or Beneficiary was correctly entitled to, shall be paid. Overpayments shall Page 9 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. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for. 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. Member Contributions A. Amount Each Member of the System, except Mayors and Commissioners shall be required to make regular contributions to the Fund in the amount of seven and four - tenths percent (7.4 %) of his or her Salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board at least monthly. The contributions made by each Member to the Fund shall be designated as employer contributions pursuant to §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. Notwithstanding the preceding, when the Member's accrued benefit is equal to 81 % of Average final Compensation, the Member may make a one time irrevocable election at anytime after the 81% limit is met to discontinue making Member Contributions to the System and have his or her benefit calculated and frozen at the time of the election. If no such election is made, Member Contributions to the Fund shall continue. B. Method Such contributions shall be made by payroll deduction. 2. City - Co ntributions . 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. 3. Othe Private donations, gifts and contributions may be deposited to the Fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Funds arising from these sources may be used only for additional benefits for Members, as determined by the Board, and may not be used to reduce what would have otherwise been required City contributions. SECTION G. BENEFIT AMOUNTS AND ELIGIBILITY Normal Retirement Date Page 10 A Member's (except a Mayor or Commissioner Member) normal retirement date shall be the first day of the month coincident with, or next following the attainment of age sixty (60) regardless of the years of Credited Service. A Mayor or Commissioner Member's normal retirement date shall be the first day of the month coincident with, or next following the attainment of age sixty (60) and the completion of nine (9) years of Credited Service. A Member may retire on his or her normal retirement date or on the first day of any month thereafter, and each Member shall become 100% vested in his or tier 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. Normal Re 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 next following his or her Retirement and be continued thereafter during Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. The monthly retirement benefit shall equal three percent (3 %) of Average Final Compensation, for each year of Credited Service, up to a maximum benefit not to exceed eighty -one percent (81 %) of Average Final Compensation of the Member. Early Re Date. A Member (except a Mayor or Commissioner Member) may retire on his or her early retirement date which shall be the first day of any month coincident with or next following the attainment of age fifty (50) and the completion of five (5) years of Credited Service. A Mayor or Commissioner Member may retire on his or her early retirement date which shall be the first day of any month coincident with or next following the attainment of age fifty (50) and the completion of nine (9) years of Credited Service. Early retirement under the System is Retirement from employment with the City on or after the early retirement date and prior to the normal retirement date. 4. Early Retirement Be nefit . A Member retiring hereunder on his or her early retirement date may receive either a deferred or an immediate monthly retirement benefit payable for life as follows: A. A deferred monthly retirement benefit which shall commence on what would have been his or her normal retirement date had he or she remained a General Employee and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benett shall be determined in the same manner as for retirement as his or her normal retirement date except that Credited Service and Average Final Compensation shall be determined as of his or her early retirement date; or B. An immediate monthly retirement benefit which shall commence on his or her early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in paragraph A above, which is actuarially reduced from the amount to which he or she would have been entitled had he or she retired on his or her normal retirement date and with the same number of years of Credited Service as at the time his or her benefits commence and based on his or her Average Final Compensation at that date. Cost -of- Living Adjus The monthly retirement benefit being paid to all Retirees and Beneficiaries who were receiving benefits on June 15, 1997, shall be increased by ten percent (10 %). Page 11 6. Required Distribution Date. The Member's benefit under this Section must begin to be distributed to the Member no later than April I of the calendar year following the later of the calendar year in which the Member attains age seventy and one -half (70 or the calendar year in which the Member terminates employment with the City. SECTION 7. PRE - RETIREMENT DEATH Prior to V or Eli��ib for Retiremen 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 Memb Vested o E ligible for Retirement wi th Spou 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 retirement date, at the option of the Spouse Beneficiary. The benefit shall be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement, if applicable. C. A Spouse Beneficiary may not elect an optional form of benefit, however, the Board may elect to make a lump sum payment pursuant to Section 9, 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 Page 12 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. Deceased Members Vested or Eligible for Retirement with Non - Spouse Beneficiary This subsection applies only when the Member's Spouse is not the Beneficiary or is not the sole designated Beneficiary, but there is a surviving Beneficiary. The Beneficiary of any Member who dies and who, at the date of his or her death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows: A. If the Member was vested, but not eli for normal or early retirement, the Beneficiary will receive a benefit payable for ten (10) years. The benefit will begin by December 31 of the calendar year immediately following the calendar year in which the Member died. The benefit will be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation and actuarially reduced to reflect the commencement of benefits prior to the normal retirement date. B. if the deceased Member was eligible for normal or early retirement, the Beneficiary will receive a benefit payable for ten (10) years, beginning on the first day of the month following the Member's death. The benefit will be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced for early retirement, if applicable. C. A Beneficiary may not elect an optional form of benefit, however the Board may elect to make a lump sum payment pursuant to Section 9.. subsection 7. D. A Beneficiary, may, in lieu of any benefit provided for in A or B above, elect to receive a refund of the deceased Member's Accumulated Contributions. E. If a surviving Beneficiary commences receiving a benefit under subsection A or B above, but dies before all payments are made, the actuarial value of the remaining benefit will be paid to the surviving Beneficiary's estate by December 31 of the calendar year of the Beneficiary's death in a lump SLIM. 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 3l of the calendar year containing the fifth anniversary of the Member's death. G. The Uniform Lifetime 'fable 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. VES'T'ING If a Member terminates his or her employment with the City, either voluntarily or by discharge, and is not eligible for any other benefits under this System, the Member shall be entitled to the following: Page 13 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 (except a Mayor or Commissioner Member) has five (5) or more years of Credited Service or if a Mayor or Commissioner Member has nine (9) or more years of Credited Service upon termination, the Member shall be entitled to a monthly retirement benefit, determined in the same manner as for normal or early retirement and based upon the Member's Credited Service, Average Final Compensation and the benefit accrual rate as of the date of termination, payable to him or her commencing at the Member's otherwise normal or early retirement date, provided he or she does not elect to withdraw his or her Accumulated Contributions and provided the Member survives to his or her normal or early retirement date. If the Member does not withdraw his or her Accumulated Contributions and does not survive to his or her otherwise normal or early retirement date, his or her designated Beneficiary shall be entitled to a benefit as provided herein for a deceased Member, vested or eligible for Retirement under Pre - Retirement Death. SECTION 9. OPTIONAL FORMS OF BENEFITS 1. In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified herein, a Member, upon written request to the Board, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: A. A retirement income of a larger monthly amount, payable to the Member for his or her lifetime only. B. A retirement income of a modified monthly amount, payable to the Member during the joint lifetime of the Member and a dependent joint pensioner designated by the Member, and following the death of either of them, 100 %, 75 %, 66 -2/3 %, or 50% of such monthly amounts payable to the survivor for the lifetime of the survivor. Except where the Retiree's joint pensioner is his or her Spouse, the payments to the joint pensioner as a percentage of the payments to the Retiree shall not exceed the applicable percentage provided for in the applicable table in the Treasury regulations. See Q R A -2 of 1.401(a)(9) -6) C. if a Member retires prior to the time at which social security benefits are payable, he or she may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence and a reduced benefit thereafter in order to provide, to as great an extent as possible, a more level retirement allowance during the entire period of Retirement. The arnounts payable shall be as recommended by the actuaries for the System, based upon the social security law in effect at the time of the Member's Retirement. D. A member may elect a percentage of benefit in a lump sum as follows: (1) Five (5) percent lump sum benefit with ninety -five (95) percent paid under the normal form or as per A., B. or C. above. (2) Ten (10) percent lump surn benefit with ninety (90) percent paid under the normal form or as per A., B. or C. above. (3) Fifteen (15) percent lump surn benefit with eighty -five (85) percent paid under the normal form or as per A., B. or C. above. Page 14 (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. If a Member has elected an option with a joint pensioner or Beneficiary and Member's retirement income benefits have commenced, Member may thereafter change his or her designated Beneficiary at any time, but may only change his or her point pensioner if the designated joint pensioner and the Member were married at the time of Member's Retirement and are divorced subsequent thereto and the joint pensioner is alive at the time of the change. 3. The consent of a Member's or Retiree's joint pensioner or Beneficiary to any such change shall not be required. The rights of all previously - designated Beneficiaries to receive benefits under the System shall thereupon cease. 4. Upon change of a Retiree's Beneficiary or joint pensioner in accordance with this Section, the Board shall adjust the Retiree's monthly benefit by application of actuarial calculations to insure that the benefit paid is the Actuarial Equivalent of the Retiree's then - current benefit. Any such Retiree shall pay the actuarial recalculation expenses and shall make repayment of any overage of previously -paid pension benefits as a result of said recalculations. Each request for a change will be made in writing on a form prepared by the Board and on completion will be filed with the Board. In the event that no designated Beneficiary survives the Retiree, such benefits as are payable in the event of the death of the Retiree subsequent to his or her Retirement shall be paid as provided in Section 10. 5. Retirement income payments shall be made under the option elected in accordance with the provisions of this Section and shall be subject to the following limitations: A. If a Member dies prior to his or her normal retirement date or early retirement date, whichever first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 7. B. If the designated beneficiary (or beneficiaries) or joint pensioner dies before the Member's Retirement under the System, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the Member upon his or her Retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this Section or a new Beneficiary is designated by the Member prior to his or her Retirement. C. If both the Retiree and the Beneficiary (or Beneficiaries) designated by Member or Retiree die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant to the provisions of subsection 1, the Board may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Section 10. D. If a Member continues beyond his or her normal retirement date pursuant to the provisions of Section 6, subsection 1, and dies prior to his or her actual retirement and while an option made pursuant to the provisions of this Section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a Beneficiary (or Beneficiaries) designated by the Member in the amount or Page 15 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 1 /2) 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 ($1,000.00). Any such payment made to any person pursuant to the power and discretion confined upon the Board by the preceding sentence shall operate as a complete discharge of all obligations under the System with regard to such Member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. SECTION 10. BENEFICIARIES 1. Each Member or Retiree may, on a form provided for that purpose, signed and filed with the Board, designate a Beneficiary (or Beneficiaries) to receive the benefit, if any, which may be payable in the event of his or her death. Each designation may be revoked or changed by such Member or Retiree by signing and filing with the Board a new designation -of- beneficiary form. Upon such change, the rights of all previously designated Beneficiaries to receive any benefits under the System shall cease. 2. If a deceased Member or Retiree failed to name a Beneficiary in the manner prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Member or Retiree predeceased the Member or Retiree, the death benefit, if any, which may be payable under the System with respect to such deceased Member or Retiree shall be paid to the estate of the Member or Retiree. SECTION 11. CLAIMS PROCEDURES BEFORE THE BOARD DECISION I . The Board shall establish administrative claims procedures to be utilized in processing written requests ( "claims "), on matters which affect the substantial rights of any person ( "Claimant "), including Members, Retirees, Beneficiaries, or any person affected by a decision of the Board. 2. The Board shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at any proceedings provided for in the Board's claims procedures. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. SECTION 12. ROSTER OF RETIREES The Secretary of the Board shall keep a record of all persons enjoying a pension under the provisions of this ordinance in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all Page 16 Members in such a manner as to show the name, address, date of employment and date of termination of employment. SEC'T'ION 13. RESERVED SECTION 14. MAXIMUM PENSION Basic Limitat Notwithstanding any other provisions of this System to the contrary, the Member contributions paid to, and retirement benefits paid from, the System shall be limited to such extent as may be necessary to conform to the requirements of Code Section 415 for a qualified retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a plan member may not receive an annual benefit that exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the applicable adjustments 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 t B asic Limitation for F of Bene 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 (detennined using the assumptions specified in Treasury Regulation Section 1.41 5(b)- I (c)(2)(ii)) that takes into account the death benefits under the form of benefit. Benefi Not Taken into Accou 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). CO 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 Page 17 date, as increased in subsequent years pursuant to Code Section 415(d) and the regulations thereunder. Unless otherwise specified in the System, for purposes of applying the limits under Code Section 415(b), a Member's applicable limit will be applied taking into consideration cost of living increases as required by Section 415(b) of the Code and applicable "treasury Regulations. Ot her Adjustments i 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 pre - retirement death benefits paid pursuant to Section 7. D, In the event the Member's retirement benefit becomes payable after age sixty -five (65), for purposes of determining whether this benefit meets the limit set forth in subsection 1 herein, such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age sixty -five (65). This adjustment shall be made in accordance with regulations promulgated by the Secretary of the "Treasury or his or her delegate. 6. Less than Ten 0 0) Years of Service The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10) years of Credited Service with the City shall be the amount determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of the Member's years of Credited Service and the denominator of which is ten (10). The reduction provided by this subsection cannot reduce the maximum benefit below 10 %. The reduction provided for in this subsection shall not be applicable to pre - retirement death benefits paid pursuant to Section 7. Par ticipatio n i Other Defin 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 4140) maintained by the City shall apply as if the total benefits payable under all City defined benefit plans in which the Member has been a member were payable from one plan. Ten Thousand Dollar $10,000 Limit. Notwithstanding the foregoing, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limit set forth in this Section if the benefits payable, with respect to such Member under this System and under all other qualified defined benefit Page 18 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. 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 beginnting after December 31, 1997, if a Member makes one or more contributions to purchase permissive service credit under the System, as allowed in Section 26 and 27, then the requirements of this Section will be treated as met only if: (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 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 Page 19 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(f)(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'/> 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 amount of the contribution would exceed the limits provided in Code Section 415 by using the following methods: Page 20 (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 ofthe 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 Limita on Pension Be nefits. 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 or her Average Final Compensation. However, nothing contained in this Section shall apply to supplemental retirement benefits or to pension increases attributable to cost -of- living increases or adjustments. B. No Member 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 15. MINIMUM DISTRIBUTION OF BENEFITS 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. Preceden The requirements of this Section will take precedence over any inconsistent provisions of the Plan. C. TEF 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) ofthe'fax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that related to Section 242(b)(2) of TEFRA. 2. Time and Manner of Distributio A. Required Be e f ing Da 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 I of Pagc 21 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. D eath of Member Before Distributio 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 '' /z, 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.(l ), will apply as if the surviving spouse were the Member. For purposes of this subsection 2.13. and" subsection 5., distributions are considered to begin on the Member's required beginning date or, if subsection 2.B.(4) applies, the date of distributions are required to begin to the surviving spouse under subsection 2.B.(1). If annuity payments irrevocably commence to the Member before the Member's required beginning date (or to the Member's surviving spouse before the date distributions are required to begin to the surviving spouse under subsection 2_B.(1)) the date distributions are considered to begin is the date distributions actually commence. C. Death After Distributi Betyin 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 bet - ore the Member's death. D. Form of Distrib 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 Page 22 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. Determination of Amount to be Distributed Each Year A. Ge neral_ 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 8, or Section 9 (as applicable) and in any event over a period equal to or less than the Member's life or the lives of the Member and a designated beneficiary, or over a period not extending beyond the life expectancy of the Member or of the Member and a designated beneficiary. The life expectancy of the Member, the Member's spouse, or the Member's beneficiary may not be recalculated after the initial determination for purposes of determining benefits. B. A mount Required to be Distribut 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 F irst Distribution Calendar Year Any additional benefits accruing to the Member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. 4. 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 40 1 (a)(9)(G), and effective for any annuity commencing on or after January 1, 2008, the minimum distribution incidental benefit rule under Treasury Regulation Section 1.401(a)(9) -6, 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)(1) or any successor regulation thereto. As a result, the total death or disability benefits payable may not exceed 25% of the cost for all of the Members' benefits received from the retirement system. Pagc 23 Defin A. Designated Be 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. Distribu Calendar Yea r. 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 16. MISCELLANEOUS PROVISIONS Int erest of M 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 R eduction o f Accrue 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. Q of sy tem It is intended that the System will constitute a qualified public 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. 4. Use of Forfeitur Forfeitures arising from terminations of service of Members shall serve only to reduce future City contributions. Pro hibited T Effective as of January 1, 1989, a Board may not engage in a transaction prohibited by Code Section 503(b). U SERRA Page 24 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. Vest ing. 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. E lectronic 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. SEC'T'ION 17. REPEAL OR TERMINATION OF SYSTEM 1. This ordinance establishing the System and Fund, and subsequent ordinances pertaining to said System and Fund, ►nay be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Member or Beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be determined to be inadequate. 2. If this ordinance shall be repealed, or if contributions to the System are discontinued, the Board shall continue to administer the System in accordance with the provisions of this ordinance, for the sole benefit of the then Members any Beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this ordinance who are designated by any of said Members. In the event of repeal, or if contributions to the System are discontinued, there shall be full vesting (100 %) of benefits accrued to date of repeal and the assets of the System shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof. 3. The following shall be the order of priority for purposes of allocating the assets of the System as of the date of repeal of this Ordinance, or if contributions to the System are discontinued with the date of such discontinuation being determined by the Board. A. Apportionment shall first be made in respect of each Retiree receiving a retirement benefit hereunder on such date, each person receiving a benefit on such date on account of a retired (but since deceased) Member, and each Member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the Actuarial Equivalent of such benefit, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. Page 25 B. If there be any asset value remaining after the apportionment under paragraph A, apportionment shall next be made in respect of each Member in the service of the City on such date who is vested and who is not entitled to an apportionment under paragraph A, in the amount required to provide the Actuarial Equivalent of the vested portion of the accrued normal retirement benefit (but not less than Accumulated Contributions), based on the Credited Service and Average Final Compensation as of such date, and each vested former Member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said Actuarial Equivalent of the vested portion of the accrued normal retirement benefit (but not less than Accumulated Contributions), provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. C. If there be any asset value after the apportionments under paragraphs A and B, apportionment shall be made in respect of each Member in the service of the City on such date who is not entitled to an apportionment under paragraphs A and B in the amount equal to Member's Accumulated Contributions, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. D. If there be any asset value remaining after the apportionments under paragraphs A, B, and C, apportionment shall lastly be made in respect of each Member included in paragraph C above to the extent of the Actuarial Equivalent of the non - vested accrued normal retirement benefit, less the amount apportioned in paragraph C, based on the Credited Service and Average Final Compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. E. In the event that there be asset value remaining after the full apportionment specified in paragraphs A, B, C, and D, such excess shall be returned to the City, less return of the State's contributions to the State, provided that, if the excess is less than the total contributions made by the City and the State to the date of termination such excess shall be divided proportionately to the total contributions made by the City and the State. The allocation of the Fund provided for in this Subsection may, as decided by the Board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this Subsection. The Fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Fund may be continued in existence for purposes of subsequent distributions. 4. After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the City. SECTION 18. DOMESTIC RELATIONS ORDERS; RETIREE DIRECTED PAYMENTS EXEMPTION FROM EXECUTION, NON - ASSIGNABILITY Domestic Relations Orders Pagc 26 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 lionor 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. R etiree Dir ected Payments The Board may, upon written request by a Retiree or by a dependent, when authorized by a Retiree or the Retiree's Beneficiary, authorize the System to withhold from the monthly retirement payment those funds that are necessary to pay for the benefits being received through the City, to pay the certified bargaining agent of the City, to make payment to insurance companies for insurance premiums and to make any payments for child support or alimony. Exem _ tion fro E xecution, Non-Assign Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the Accumulated Contributions and the cash securities in the Fund created under this ordinance are hereby exempted from any state, county or municipal tax of the state and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. SECTION 19. PENSION VALIDITY The Board shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. The Board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or any person lereafter granted a pension under this ordinance if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this ordinance be erroneously, improperly or illegally classified. Any overpayments or under payments shall be corrected and paid or repaid in a reasonable manner determined by the Board. SEC'T'ION 20. FORFEITURE OF PENSION 1. Any Member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his or her admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this Pension Fund, except for the return of his or her Accumulated Contributions as of the date of termination. Specified offenses are as follows: A. The committing, aiding or abetting of an embezzlement of public funds; B. The committing, aiding or abetting of any theft by a public officer or employee from employer; Page 27 C. Bribery in connection with the employment of a public officer or employee; D. Any felony specified in Chapter 838, Flori Statu tes; E. The committing of an impeachable offense; F. The committing of any felony by a public officer or employee who willfully and with intent to defraud the public or the public agency, for which he or she acts or in which he or she is employed, of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his or her public office or employment position; or G. The committing on or after October 1, 2008, of any felony defined in Section 800.04, Florida Statutes, against a victim younger than sixteen (16) years of age, or any felony defined in Chapter 794, Florida Statutes, against a victim younger than eighteen (18) years of age, by a public officer or employee through the use or attempted use of power, rights, privileges, duties, or position of his or her public office or employment position. 2. Conviction shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; 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 21. INDEMNIFICA77ON 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. Page 28 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 22. 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 l and payment of professional fees shall be made on or before March 31. 3. Payment by the Member of the required amount shall be made on or before April 30 for the preceding twenty -four (24) month period ending March 1 and shall be made in one lump sum payment upon receipt of which Credited Service shall be issued. 4. Credited Service purchased pursuant to this section shall not count toward vesting. SECTION 23. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIB Roll over 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. R. Definit (1) Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated Beneficiary, or for a specified period often years or more; any distribution to the extent such distribution is required under section 401(a)(9) of the Code; and the portion of any distribution that is not includible in gross income. Effective January 1, 2002, any portion of any distribution which would be includible in gross income will be an eligible rollover distribution if the distribution is made to an individual retirement account described in section 408(a); to an individual retirement annuity described in section 408(b); to a qualified Page 29 defined contribution plan described in section 401(a) or 403(a) that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of such distribution which is includibe in gross income and the portion of such distribution which is not so includible ; or on or after January 1, 2007, to a qualified defined benefit plan described in Code Section 401(a) or to an annuity contract described in Code Section 403(b), that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible. . (2) Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code; an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) 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. (3) Distributee: A distributee includes an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employees' or former employee's spouse or former spouse. Effective January 1, 2007, it further includes a nonspouse beneficiary who is a designated 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. Rollovers or Tr into the Fund On or after January 1, 2002, the System will accept, solely for the purpose of purchasing Credited Service as provided herein, permissible Member requested transfers of funds from other retirement or pension plans, Member rollover cash contributions and /or direct cash rollovers of distributions made on or after January 1, 2002, as follows: A. Transfers and Direct Rollovers or Member Rollover Con fro Othe 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(x) of the Code, from an annuity contract described in section 403(6) 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. The System will also accept legally permissible Member requested transfers of funds from other retirement or pension plans. B_ Me mber Rol Co from IR As. The system will accept a Member rollover contribution of the portion of a distribution from an Page 30 individual retirement account or annuity described in section 408(a) or 408(b) of the Code that is eligible to be rolled over. Elimination of Mandatory Distributions. Notwithstanding any other provision herein to the contrary, in the event this Plan provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by law, for an amount in excess of one - thousand dollars ($1,000.00), such distribution shall be made from the Plan only upon written request of the Member and completion by the Member of a written election on forms designated by the Board, to either receive a cash lump sum or to rollover the lump sum amount. SECTION 24. REEMPLOYMENT AFTER RE'T'IREMENT 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 by the city in any capacity, shall upon being reemployed, continue receipt of retirement benefits during any such employment period. A retiree who returns to work under the provisions of this section shall not be eligible for membership in this system, and, therefore, shall not accumulate additional credited service for subsequent periods of employment described in this section, shall not be required to make contributions to the system, nor shall lie or she be eligible for any other benefit other than the retiree's normal 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, continue to receive retirement benefits previously earned. Former DROP participants shall begin receipt of benefits under these circumstances. 4. After early retirement. Any Retiree who is retired under early retirement pursuant to this System and who subsequently becomes an employee of the City in any capacity, shall discontinue receipt of benefits from the System until the earlier of termination of employment or such time as the reemployed Retiree reaches the date that he or she would have been eligible for normal retirement under this system had he or she continued employment and not elected early retirement. "Normal retirement" as used in this subsection shall be the current normal retirement date provided for wider this System. A Retiree who returns to work under the provisions of this Section shall not be eligible for membership in the System, and, therefore, shall not accumulate additional Credited Service for subsequent periods of employment described in this section, shall not be required to make contributions to the system, nor shall he or she be eligible for any other benefit other than the Retiree's early retirement benefit when he or she again becomes eligible as provided herein. Retirement pursuant to an early retirement incentive program shall be deemed early retirement for purposes of this Section if the Member was permitted to retire prior to the customary retirement date provided for in the System at the time of retirement. 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 Page 31 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. SECTION 25. DEFERRED RETIREMENT OPTION PLAN Definitions As used in this Section 25, the following definitions apply:" A. "DROP" -- The Ocoee General Employees' Deferred Retirement Option Plan. B. "DROP Account" -- The account established for each DROP participant under subsection 3. 2. Part icipation . A. Eligi to Participa In lieu of terminating his or her employment as a General Employee, any Member who is eligible for normal retirement under the System may elect to defer receipt of such service retirement pension and to participate in the DROP. B. Elect to Participate A Member's election to participate in the DROP must be made in writing in a time and manner determined by the Board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. C Period of participation A Member who elects to participate in the DROP under subsection 2.B., shall participate in the DROP for a period not to exceed eighty -four (84) months beginning on the date which the Member first becomes eligible for normal retirement. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the City at the time of election into the DROP. A Member may participate only once. D. Term ination of Part icipation . (1) A Member's participation in the DROP shall cease at the earlier of (a) the end of his or her permissible period of participation in the DROP as determined under subsection 2.C.; or Page 32 (b) termination of his or her employment as a General Employee. (2) Upon the Member's termination of participation in the DROP, pursuant to subsection(a) above, all amounts provided for in subsection 3.B., including monthly benefits and investment earnings and losses or interest, shall cease to be transferred from the System to his or her DROP Account. Any amounts remaining in his or her DROP Account shall be paid to him or her in accordance with the provisions of subsection 4. when he or she terminates his or her employment as a General Employee. (3) A Member who terminates his or her participation in the DROP under this subsection 2.D. shall not be permitted to again become a participant in the DROP. E. Effect o f DR Participa on the Sy stem. (1) A Member's Credited Service and his or her accrued benefit under the System shall be determined on the date his or her election to participate in the DROP first becomes effective. For purposes of determining the accrued benefit, the Member's Salary for the purposes of calculating his or her Average Final Compensation shall include an amount equal to any lump sum payments which would have been paid to the Member and included as Salary as defined herein, had the Member retired under normal retirement and not elected DROP participation. Member contributions attributable to any lump sums used in the benefit calculation and not actually received by the Member shall be deducted from the first payments to the Member's DROP Account. The Member shall not accrue any additional Credited Service or any additional benefits under the System (except for any additional benefits provided under any cost -of- living adjustment for Retirees in the System) while he or she is a participant in the DROP. After a Member commences participation, he or she shall not be permitted to again contribute to the System nor shall he or she be eligible for disability or pre - retirement death benefits, except as provided for in Section 24, Reemployment After Retirement. (2) No amounts shall be paid to a Member fi - om the System while the Member is a participant in the DROP. Unless otherwise specified in the System, if a Member's participation in the DROP is terminated other than by terminating his or her employment as a General Employee, no amounts shall be paid to him or her from the System until he or she terminates his or her employment as a General Employee. Unless otherwise specified in the System, amounts transferred from the System to the Member's DROP Account shall be paid directly to the Member only on the termination of his or her employment as a General Employee. Fund ing. A. Establishment of DROP Account Page 33 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. Tr ansfe rs From Retirement Sy stem. (1) As of the first day of each month of Member's period of participation in the DROP, the monthly retirement benefit he or she would have received under the System had he or she terminated his or her employment as a General Employee and elected to receive monthly benefit payments thereunder shall be transferred to his or her DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.D., but in no event shall it continue past the date he or she terminates his or her employment as a General Employee. (2) Except as otherwise provided in subsection 2.D.(2), a Member's DROP Account under this subsection 3.B. shall be debited or credited after each fiscal year quarter with either: (a) Interest at an effective rate of six and one -half percent (6.5 %) per annum compounded monthly on the prior month's ending balance; or (b) Earnings, determined as follows: The average daily balance in a Member's DROP Account shall be credited or debited at a rate equal to the actual net rate of investment return realized by the System for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which the Member's DROP Account is invested by the Board net of brokerage commissions, transaction costs and management fees. Upon electing participation in the DROP, the Member shall elect to receive either interest or earnings on his or her account to be determined as provided above. The Member may, in writing, elect to change his or her election only once during his or her DROP participation. An election to change must be made prior to the end of a quarter and shall be effective beginning the following quarter. (3) A Member's DROP Account shall only be credited or debited with earnings or interest and monthly benefits while the Member is a participant in the DROP. A Member's final DROP account value for distribution to the Member upon termination of participation in the DROP shall be the value of the account at the end of the quarter immediately preceding termination of participation plus any monthly periodic additions made to the DROP account Page 34 subsequent to the end of the previous quarter and prior to distribution. If a Member fails to terminate employment after participating in the DROP the permissible period of DROP participation, then beginning with the Member's 1 st month of employment following the last month of the permissible period of DROP participation, the Member's DROP Account will no longer be credited or debited with earnings or interest, nor will monthly benefits be transferred to the DROP account. All such non - transferred amounts shall be forfeited and continue to be forfeited while the Member is employed by the City, and not cost -of- living adjustments shall be applied to the Member's credit during such period of continued employment. A Member employed by the City after the permissible period of DROP participation will still not be eligible for pre- retirement death or disability benefits, nor will he or she accrue additional Credited Service, except as provided for Section 24, Reemployment After Retirement. 4. Distribution of D Ac o T ermina tion of Emplo ny lent A. Eli (;i for B enefits . A Member shall receive the balance in his or her DROP Account in accordance with the provisions of this subsection 4. upon his or her termination of employment as a General Employee. Except as provided in subsection 4.E., no amounts shall be paid to a Member from the DROP prior to his or her termination of employment as a General Employee. B. Form of Distribution (1) Unless the Member elects otherwise, distribution of his or her DROP Account shall be made in a cash lump sum, subject to the direct rollover provisions set forth in subsection 4.1 Elections under this paragraph shall be in writing and shall be made in such time or manner as the Board shall determine. (2) If a Member dies before his or her benefit is paid, his DROP Account shall be paid to his Beneficiary in such optional form as his or tier Beneficiary may select. If no Beneficiary designation is made, the DROP Account shall be distributed to the Member's estate. C. Date of Payment of Distribution Except as otherwise provided in this subsection 4., distribution of a Member's DROP Account shall be made as soon as administratively practicable following the Member's termination of employment. Distribution of the amount in a Member's DROP account will not be made unless the Member completes a written request for distribution and a written election, on forms designated by the Board, to either receive a cash lump sum or a rollover of the lump sum amount. D. Proof of Death and Right of Benefi or Ot her Person Page 35 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. I . Direct Rollover of Certain Distributions This subsection applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the DROP to the contrary, a distributee may elect to have any portion of an eligible rollover distribution paid in a direct rollover as otherwise provided under the System in Section 23. Administration of DROP A. Board Administers the DROP The general administration of the DROP, the responsibility for carrying out the provisions of the DROP and the responsibility of overseeing the investment of the DROP's assets shall be placed in the Board. The members of the Board may appoint from their number such subcommittees with such powers as they shall determine may adopt such administrative procedures and regulations as they deem desirable for the conduct of their affairs may authorize one or more of their number or any agent to execute or deliver any instrument or make any payment on their behalf, may retain counsel, employ agents and provide for such clerical, accounting, actuarial and consulting services as they may require in carrying out the provisions of the DROP, and may allocate among themselves or delegate to other persons all or such portion of their duties under the DROP, other than those granted to them as 'Trustee under any trust agreement adopted for use in implementing the DROP, as they, in their sole discretion, shall decide. A Trustee shall not vote on any question relating exclusively to himself. B. individual Accounts, Records and Reports The Board shall maintain, 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, in convenient form such data as may be necessary for the valuation of the assets and liabilities of the DROP. The Board shall prepare and distribute 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. Pagc 36 C. Es tablishment of Rul 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. 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 fin by an accountant or an actuary, and on all opinions of counsel. The Board shall be fully protected with respect to any action taken or suffered by it in good faith in reliance upon such expert, accountant, actuary_ or counsel, and all actions taken or suffered in such reliance shall be conclusive upon any person with any interest in the DROP. 6. General Provisions A. Amend of D ROP. 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. Facilit of f Pa If a Member or other person entitled to a benefit under the DROP is unable to care for his or her affairs because of illness or accident or is a minor, the Board shall direct that any benefit due him or her shall be made. Any payment so made shall be a complete discharge of the liabilities of the DROP for that benefit. C. Informatio Page 37 Each Member, Beneficiary or other person entitled to a benefit, before any benefit shall be payable to him or her or on his or her account under the DROP, shall file with the Board the information that it shall require to establish his or her rights and benefits under the DROP. D. Prevention of Escheat If the Board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the Board may, no earlier than three (3) years from the date such payment is due, mail a notice of such due and owing payment to the last known address of such person, as shown on the records of the Board or the City. If such person has not made written claim therefor within three (3) months of the date of the mailing, the Board may, if it so elects and upon receiving advice from counsel to the System, direct that such payment and all remaining payments otherwise due such person be canceled on the records of the System. Upon such cancellation, the System shall have no further liability therefor except that, in the event such person or his or her Beneficiary later notifies the Board of his or her whereabouts and requests the payment or payments due to him or her under the DROP, the amount so applied shall be paid to him or her in accordance with the provisions of the DROP. E. Written E lections, Notificatio (1) Any elections, notifications or designations made by a Member pursuant to the provisions of the DROP shall be made in writing and filed with the Board in a time and manner determined by the Board under rules uniformly applicable to all employees similarly situated. The Board reserves the right to change from the time and manner for making notifications, elections or designations by Members under the DROP if it determines after due deliberation that such action is justified in that it improves the administration of the DROP. In the event of a conflict between the provisions for making an election, notification or designation set forth in the DROP and such new administrative procedures, those new administrative procedures shall prevail. (2) Each Member or Retiree who has a DROP Account shall be responsible for furnishing the Board with his or her current address and any subsequent changes in his or her address. Any notice required to be given to a Member or Retiree hereunder shall be deemed given if directed to him or her at the last such address given to the Board and mailed by registered or certified United States mail. If any check mailed by registered or certified United States mail to such address is returned, mailing of checks will be suspended until such time as the Member or Retiree notifies the Board of his or her address. F. Benefits Not Guarantee 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 I3oard shall have any duty or liability to furnish the DROP Page 38 with any funds, securities or other assets except to the extent required by any applicable law. G. Con structio n_ (1) The DROP shall be construed, regulated and administered under the laws of Florida, except where other applicable law controls. (2) The titles and headings of the subsections in this Section 25 are for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control. H. Forfeiture of Retirement Benefits Nothing in this Section shall be construed to remove DROP participants from the application of any forfeiture provisions applicable to the System. DROP participants shall be subject to forfeiture of all retirement benefits, including DROP benefits. Effect of DROP Participat on Emplo Participation in the DROP is not a guarantee of employment and DROP participants shall be subject to the same employment standards and policies that are applicable to employees who are not DROP participants. SECTION 26. PRIOR GOVERNMENT SERVICE Unless otherwise prohibited by law, and except as provided for in Section 1, the years or fractional parts of years that a Member (except a Mayor or Commissioner Member) previously served as a full -time General Employee with the City of Ocoee during a period of previous employment and for which period Accumulated Contributions were withdrawn from the Fund, or the years and fractional parts of years that a member served as a General Employee for any other municipal, county or special district department in the State of Florida or jurisdiction other than the State of Florida, shall be added to his or her years of Credited Service provided that: 1. The Member contributes to the Fund the sum that lie or she would have contributed, based on his or her Salary and the Member contribution rate in effect at the time that the Credited Service is requested, had he or she been a Member of this System for the years or fractional parts of years for which he or she is requesting credit, plus amounts actuarially determined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of years of Credited Service. 2. Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement. 3. Payment by the Member of the required amount shall be made within six (6) months of his or her request for credit, but not later than his or her retirement date, and shall be made in one (1) lump sum payment upon receipt of which Credited Service shall be given. 4. The maximum credit under this Section for jurisdictions other than the City of Ocoee, when combined with credited service purchased pursuant to Section 27, Military Service Prior to Employment, shall be five (5) years of Credited Service and shall count for all purposes, Page 39 except vesting. There shall be no maximum purchase of credit for prior service with the City of Ocoee and such credit shall count for all purposes, including vesting. 5. In no event, however, may Credited Service be purchased pursuant to this Section for prior service with any other governmental agency, if such prior service forms or will form the basis of a retirement benefit or pension from another retirement system or plan as set forth in the Maximum Pension Section of the plan document. SEC'T'ION 27. MILITARY SERVICE PRIOR TO EMPLOYMENT The years or fractional parts of years that a Member (except a Mayor or Commissioner Member) serves or has served on active duty in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable conditions, prior to first and initial employment with the City shall be added to his or her years of Credited Service provided that: 1. The Member contributes to the Fund the sum that he or she would have contributed, based on his or her Salary and the Member contribution rate in effect at the time that the Credited Service is requested, had he or she been a Member of this System for the years or fractional parts of years for which he or she is requesting credit, plus amounts actuarially determined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of years of Credited Service. 2. Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement. 3. Payment by the Member of the required amount shall be made within six (6) months of his or her request for credit, but not later than his or her retirement date, and shall be made in one (1) lump sum payment upon receipt of which Credited Service shall be given. 4. The maximum credit under this Section, when combined with credited service purchased pursuant to Section 26, Prior Government Service with jurisdictions other than the City of Ocoee, shall be five (5) years. 5. Credited Service purchased pursuant to this Section shall count for all purposes, except vesting. SECTION 28. PURCHASE OF CRh;DITED SERVICE FOR AIR TIME Unless otherwise prohibited by law, any Member (except a Mayor or Commissioner Member) who has accrued at least five (5) years of credited service under this system shall be permitted to purchase up to five (5) years of additional credited service under this system for periods when there was no performance of service ( "air time ") provided that: A. The member contributes to the fund the sum that he or she would have contributed had he or she been a member of the system for the years or fractional parts of years for which lie or she is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the fund plus payment of costs for all professional services rendered to the board in connection with the purchase of years of credited service. B. Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement. Page 40 C. Payment by the member of the required amount shall be made within six (6) months of his or her request for credit, but, in any event, prior to retirement, and shall be made in one lump sum payment upon receipt of which credited service shall be given. D. Service purchased pursuant to this section shall count for all purposes except vesting. The maximum combined purchase under this section and sections 26 and 27 shall be five (5) years. Wih lnocAococcgcm05 -0 4 - 09.ord Pagc 41 Orlando Sentinel City Of Ocoee 150 N Lakeshore Drive CITY OF OCOEE OCOEE, FL 34761 -0000 Before the undersigned authority personally appeared Pam L. Davis /Tamela Vargas /Deborah M. Toney, who on oath says that s/he is the Legal Advertising Representative of Orlando Sentinel, a daily newspaper published in Orange County, Florida; that the attached copy of advertisement, being a Public Hearing in the matter of September 17, 2013, at 7:15 p.m, in the Orange County was published in said newspaper in the issue(s); of 09/05/13 Affiant further says that the said Orlando Sentinel is a newspaper published in said Orange County, Florida, and that the said newspaper has heretofore been continuously published in said Orange County, Florida, each week day and has been entered ag second -class mail matter at the post office in said Orange County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that s/he has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. _?-e foregoing instrument was acknowledged before me this day of September, 2013, Pam L. Davis /Tamela Vargas /Deborah M. Toney, who is personally known to me and who did take an oath. (S DEB M. TONEY NOTARY PUBLIC STATE OF FLORIDA o, Comm# DD938521 1il Expires 11/18 12013 GITf_UT DCDEE . TIIBLTC HEAWNG A Pu", Hearing before the Ocoee City Conn- mission will be held Tuesday, Septem- ber 17, 2013, at 7:15 p.m. or as soon thereafter as may be heard, in the Commission Chambers of City Hall at 150 North Lakeshore Drive, Ocoee, Florida, to consider the following: ORDINANCE N0. 2013 -012 AN ORDINANCE OF THE CITY OF OCOEE, FLORI. OA REVISING CHAPTER 54 OF THE CITY CODE; PROVIDING FOR APPLICABILITY AND SEVER - ABILITY; PROVIDING FOR CODIFICATION; PRO. VIDING AN EFFECTIVE DATE. ORDINANCE NO. 2013 -013 AN ORDINANCE OF THE CITY OF OCOEE. FLORI- DA, REVISING CHAPTER 108 OF THE CITY CODE; PROVIDING FOR APPLICABILITY AND SEVER - ABILITY; PROVIDING FOR CODIFICATION; PRO- VIDING AN EFFECTIVE DATE. ORDINANCE NO. 2013 -019 AN ORDINANCE OF THE CITY OF OCOEE, FLORI- DA, RELATING TO THE CITY OF OCOEE MUNICI- PAL POLICE OFFICERS' AND FIREFIGHTERS' RE- TIREMENT TRUST FUND; AMENDING ORDI- NANCE NUMBER 2DIO -019 AS SUBSEQUENTLY BY AMENbNG DEFINITION I OF "CREDITED AND I FUND A MANA I GEME SECTION , MENDING SEC T ION 15 MAXIMUM PENSION PROVIDING FOR ORDINANCES IN CONFLICT CTIEREWITH PROVIDING AN EFFECTIVE DATE. If a person decides to appeal any deci- sion made by the above City Commis- sion with respect to any matter consid- ered at such hearing, they will need a record of the proceedings, and for such purpose they may need to ensure that a verbatim record of the proceed- ings is made, which record includes the testimony and evidence upon which the appeal is to be based. All interested parties are invited to at- tend and be heard with respect to the above. In accordance with the Ameri- can5 w ith Disabilities Act, persons needing a special accommodation or an interpreter to participate in this Proceeding should contact the City Clerk's office at 407 905 -3105 at least two days prior to the date of hearing. Beth Eikenberry City Clerk COR1251761 9/5/2013 1251761