HomeMy WebLinkAbout2013-015 Police Officers' & Firefighters' Retirment Trust Fund - CBA ChangesORDINANCE NO. 2013-015
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
POLICE OFFICERS' AND FIREFIGHTERS'
RETIREMENT TRUST FUND; AMENDING ORDINANCE
NUMBER 2010 -019, AS SUBSEQUENTLY AMENDED;
AMENDING SECTION 1, DEFINITIONS, AMENDING THE
DEFINITION OF "SALARY "; AMENDING SECTION 5,
CONTRIBUTIONS; AMENDING SECTION 6, BENEFIT
AMOUNTS AND ELIGIBILITY; AMENDING SECTION 8,
DISABILITY; AMENDING SECTION 27, DEFERRED
RETIREMENT OPTION PLAN; 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 Ordinance No. 2010 -019, adopting the amended and restated City of
Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently
amended, is hereby further amended by amending Section 1, Definitions, amending the
definition of "Salary ", to read as follows:
Salary means the total compensation for services rendered to the City as a Police Officer
or Firefighter reported on the Member's W -2 form, plus all tax deferred or tax sheltered items of
income derived from elective employee payroll deductions or salary reductions excluding pay
for police officers' extra duty details and employers contribution into the Voluntary Employee
Benefit Account (VEBA). excluding pay fiaF pol offiEersextfa -mo details — all tax
deferred of tax sheltefed items of income derived 4om elective emp!Oyee pa�'FOII dedtietiOnS OF
salary feduetions. Any paid time off unused at the time of termination of employment with the
City of Ocoee as a Police Officer or Firefighter will not be used in the pension credit calculation.
For service earned on or after October 1, 2012, Salary shall not include more than three hundred
(300) hours of overtime per calendar year. Provided however, in any event payments for
overtime in excess of three hundred (300 ) hours per year accrued as of October 1, 2012 and
attributable to service earned prior to the October 1, 2012, may still be included in Salary for
pension purposes even if the payment is not actually made until on or after October 1 2012.
Compensation in excess of the limitations set forth in Section 401(a)(] 7) 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
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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.
SECTION 3 . That Ordinance No. 2010 -019, adopting the amended and restated City of
Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently
amended, is hereby further amended by amending Section 5, Contributions, subsection 1.,
Member Contributions and subsection 3., City Contributions, to read as follows:
Member Contributions
A. Amount Each Member of the System shall be required to make regular
contributions to the Fund Effective September 17, 2013 Police Officer
Members and Firefighter Members shall make contributions in the amount
of . en anu d' six te nths pefeent ( eight percent (8 %) of his or her
Salary. Member contributions withheld by the City on behalf of the
Member shall be deposited with the Board immediately after each pay
period. The contributions made by each Member to the Fund shall be
designated as employer contributions pursuant to §414(h) of the Code.
Such designation is contingent upon the contributions being excluded
from the Members' gross income for Federal Income Tax purposes. For
all other purposes of the System, such contributions shall be considered to
be Member contributions.
3. Citv Contributions.
So long as this System is in effect, the City shall make quarterly contributions to
the Fund in an amount equal to the required City contribution, as shown by the applicable
actuarial valuation of the System but in any event, not less than twelve percent (12 %) of the
payroll of the bargaining unit Members
SECTION 4 . That Ordinance No. 2010 -019, adopting the amended and restated City of
Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently
amended, is hereby further amended by amending Section 6, Benefit Amounts and Eligibility,
subsection 2., Normal Retirement Benefit, to read as follows:
2. Normal Retirement Benefit
A Member retiring hereunder on or after his or her normal retirement date shall
receive a monthly benefit which shall commence on the first day of the month coincident with or
next following his or her Retirement and be continued thereafter during Member's lifetime,
ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any
event. The monthly retirement benefit shall equal three and one -half percent (3.5 %) of Average
Final Compensation, for each year of Credited Service up to a maximum benefit not to exceed
ninety -one perc ent (91%) of Average Final Compensation of the Member hired on or after
October 1. 2012.
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SECTION 5 . That Ordinance No. 2010 -019, adopting the amended and restated City of
Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently
amended, is hereby further amended by amending Section 8, Disability, subsection 1., Disability
Benefits In -Line of Duty, and subsection 3., Disability Benefits Not -In -Line of Duty, to read as
follows:
Disability Benefits In -Line of Duty
Any Member who shall become totally and permanently disabled to the extent
that he or she is unable, by reason of a medically determinable physical or mental impairment, to
render useful and efficient service as a Police Officer or Firefighter, which disability was directly
caused by the performance of his or her duty as a Police Officer or Firefighter, shall, upon
establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to
three and one -half percent (3.5 %) of his or her Average Final Compensation multiplied by the
total years of Credited Service up to a maximum benefit not to exceed ninety -one percent (91 %)
of Average Final Compensation of the Member hired on or after October 1 2012 but in any
event the minimum amount paid to the Member shall be forty -two percent (42 %) of the Average
Final Compensation of the Member. Terminated persons, either vested or non - vested, are not
eligible for disability benefits, except that those terminated by the City for medical reasons may
apply for a disability within thirty (30) days after termination.
3. Disability Benefits Not -In -Line of Duty
Any Member with ten (10) years or more Credited Service who shall become
totally and permanently disabled to the extent that he or she is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service as a Police
Officer or Firefighter, which disability is not directly caused by the performance of his or her
duties as a Police Officer or Firefighter shall, upon establishing the same to the satisfaction of the
Board, be entitled to a monthly pension equal to three and one -half percent (3.5 %) of his or her
Average Final Compensation multiplied by the total years of Credited Service up to a maximum
benefit not to exceed ninety -one percent (91%) of Average Final Compensation of the Member
hired on or after October 1, 2012 Terminated persons, either vested or non - vested, are not
eligible for disability benefits, except that those terminated by the City for medical reasons may
apply for a disability within thirty (30) days after termination.
SECTION 6 . That Ordinance No. 2010 -019, adopting the amended and restated City of
Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently
amended, is hereby further amended by amending Section 27, Deferred Retirement Option Plan,
subsection 3. Funding, to read as follows:
(2) Except as otherwise provided in subsection 2.D.(2), a Member's
DROP Account under this subsection 3.13. shall be debited or
credited after each fiscal year quarter with either:
(a) For Members who enter the DROP prior to October 1
2012, i nterest at an effective rate of six and one -half
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percent (6.5 %) per annum compounded monthly on the
prior month's ending balance;
For Members who enter the DROP on or after October 1
2012 interest at an effective rate of two percent (2 %) 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 account to be
determined as provided above. The Member may, in writing, elect
to change his election only once during his DROP participation.
An election to change must be made prior to the end of a quarter
and shall be effective beginning the following quarter.
SECTION 7 . Repeal of Ordinances All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 8 . 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 9 . Effective Date This ordinance shall take effect upon second reading and
adoption.
PASSED AND ADOPTED this t�`day of 2013.
ATTEST:
Be�ikenberi y, City Cler
APPROVED:
CITY OF OCOEE, FLORIDA
By:
S. Scott Vandergrift, Mayor
(SEAL)
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ADVERTISED ; y
READ FIRST TIM
READ SECOND TIME AADD ADOPT D
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
_
THIS n day of ` -�� , 2013.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON -,c \'1 ,2013 UNDER
AGENDANO. t
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