HomeMy WebLinkAboutOrdinance 2002-25
ORDINANCE NO. 20-02 - 25
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND,
ADOPTED AND RESTATED IN FULL BY ORDINANCE
NUMBER 96-19; AS SUBSEQUENTLY AMENDED;
AMENDING SECTION 1, DEFINITIONS BY AMENDING
THE DEFINITIONS OF "ACCUMULATED
CONTRIBUTIONS" AND "CREDITED SERVICE;
AMENDING SECTION 14, MAXIMUM PENSION;
AMENDING SECTION 23, DIRECT TRANSFERS OF
ELIGIBLE ROLLOVER DISTRIBUTIONS; AMENDING
SECTION 25, DEFERRED RETIREMENT OPTION PLAN;
ADDING A NEW SECTION 26, PRIOR GOVERNMENT
SERVICE; ADDING A NEW SECTION 27, MILITARY
SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR
SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
SECTION 1: Authority. The City Commission of tbe City of Ocoee bas the authority
to adopt tbis ordinance pursuant to Article VIII of tbe Constitution of tbe State of Florida and
Chapter 166, Florida Statutes.
SECTION 2: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
hereby further amended by amending Section 1, Definitions, by amending the definition of
Accumulated Contributions and the definition of Credited Service, to read as follows:
Accumulated Contributions means a Member's own contributions without interest. For those
Members who purchase Credited Service with interest or at no cost to the System, any payment
representing the amount attributable to Member contributions based on the applicable Member
contribution rate, any payment re:presenting interest and any required actuarially calculated payments
for the purchase of such Credited Service, shall be included in Accumulated Contributions.
Credited Service means the total number of years and fractional parts of years of service as
a General Employee with Member contributions, when required, omitting intervening years or
fractional parts of years when such Member was not employed by the City as a General Employee.
A Member may voluntarily leave his or her contribution in the Fund for a period offive (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.
Upon return of his or her Accumulated Contributions, all of his or her rights and benefits under the
System are forfeited and terminated.
In the event that a 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 e~ploymeD:t for benefit. calculati~n p~oses, then such other ~r~dited ~e.rv.i~e shall be used
in determmmg vestmg as prOVIded for m SectIon 8, and for determmmg elIgIbIlIty for early or
normal retirement. Such other credited service will not be considered in determining benefits under
this System. Unless oth~rwise provided herein, only his 0; h.er C~edited Serv~ce and Sa~ary under
this System on or after hIS or her latest date of membershIp m thIS System WIll be conSIdered for
benefit calculation. In addition, any benefit calculation for a Member of this System who is or
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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.
TIle. }"a...~ 01 fiaGtional pents ofye.u5 that a CencIAl Employee pl"V iOI1~ly 5"1 ~ed as A General
Employ" with tli, City of Oeo,e. dnIing A p'-liod of pIG,ioU5 "wpluJulcut And [01 whieh peliod
Accmnulatcd Conhibntions wele withd:1a~Jl flom th, Fmld, 01 fOl A reliod of pl"viou~ employment
fOI whk,h Credited S"'l v~CG has not be"'ll othcrwi~e Ice,iv c.d fOl bCh<..fit Gakulatioll pUlpOb",~, shall
be added to his 01 hel yeal~ ofCJGditcd Sc.uke plovided that.
1. The a<'llclal Emplo}'" eOlkh;bl1t,s to tl1" Fund the ~t1:m that he 01 she. would ha"
c..oJJhibut,d had he 01 she bC"ll a hle.mber ofth" S)'ste.m fOI tIl" )'ecub 01 flAc.t~Olud part~ of years for
which he 01 ~he. is lequG5ting 'IGdit plus amounts a"tn.uially det\.uuiued 5u,,11 that tit, 'Ieditillg of
Se.l v lG<" do,~ not JGsult in an)' co~t to the. Fund plus pa)'IUc.nt of co~ts faJ all plo&.~siollal ~"I v ie(;5 Mid
administlativG GOStSIChd"l",d to the DOald ill eOll1lCGtion with the pwehase ofyeals ofC",ditcd
SCI v ice.
2. The IcqUe.st shall be. made only OIl" and made by the Ccnelal Emplo)'ee Oil 01 beJOle
the latel oftwGlve (12) montIls fionl the effective datc of this o!dinanee 01 six (6) nlonths flom the
date of his 01 hel leemploYTuent with tile City as a Cenwll Elnployee, whidl"e.1 is latcl.
J. Payhlcnt by tile aellclal Employ"", oCthe. JGquiIed amount ShAll be. mad" ~ithin st>.
(&) hlOl1ths of his 01 he.1 leque.st [01 credit enId shall be. mad, in one lwnp SWll payme...t upOu lc",e~pt
of whic.h CIedited Se.I vice shall be gi yen.
4. Thcle shall be no maximum eledit unde! this section and all ye.us of Credited SeI vice
add,d pwsuant to this Sec.tion shall count [01 all purpose.~, ;Ildtld~n~ vGstihg.
SECTION 3: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
bereby further amended by amending Section 14, Maximum Pension, to read as follows:
SECTION 14. MAXIMUM PENSION.
Basic Limitation.
Subject to the adjustments hereinafter set forth, the maximum amount of annual
retirement income payable with respect to a Member under this System shall not exceed $90,000
$160.000.00.
For purposes of applying the above limitation, benefits payable in any form other than
a straight life annuity with no ancillary benefits shall be adjusted, as provided by Treasury
Regulations, so that such benefits are the Actuarial Equivalent of a straight life annuity. For
purposes ofthis Section, the following benefits shall not be taken into account:
Any ancillary benefit which is not directly related to retirement
income benefits;
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 ~415(b){1) of the Code.
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2. Participation in Other Defined Benefit Plans.
The limitation 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 g4l4(j) of the Code) maintained by the
City shall apply as if the total benefits payable under all defined benefit plans in which the Member
has been a member were payable from one plan.
3. Adiustments in Limitations.
In the event the Member's retirement benefits become payable before age 62, the
$90,000 $160.000.00 limitation prescribed by this Section shall be reduced in accordance with
Regulations issued by the Secretary of the Treasury pursuant to the provisions of g415(b) of the
Code, bat not IC5s than $75,000, iethe. be.HGfit bG~;1Is at 01 AftCl A~G fifty-fi~G (55).
hI the. Gve.ut the M'mb'I'SIGtilcIllGnt bGhcfit becomes payable bdolc age fifty-five
(55), thG $75,000 limitation shall be leduced flom A5" fifty-fi ~e. (55) ill aCGold~lOC w it11 Regtllations
isstle.d by the. SOCIGta.&) ofal(; TIGASury PWStlant to the plovisiolls of ~415(b) ofthe Code so that such
~~i.t~~ion ~~ so.~~~c~d) equals an annual benefit 9'esinnin& when such retirement income benefit
___I_J w Lh C __Ulvalent to a one hundred SIxty thousand dollar ($160.000) annual benefit
beginning at age sixty-two (62).
The reductions provided for in the previous two paragraphs shall not be applicable
to pre-retirement death benefits paid pursuant to Section 7.
If the Member's retirement benefit becomes payable after age sixty-five (65), for
purposes of determining whether this benefit meets the limitation set forth in subsection I herein,
such benefit shall be adjusted so that it is actuarially equivalent to the benefit beginning at age 65.
This adjustment shall be made using an assumed il1tc'le.St lat" of fi vC percent (5%) and shall bG mlKk
in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate.
4 Less than Ten 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 for in this subsection shall not be applicable to pre-retirement death benefits paid pursuant
to Section 7.
'i $10.000 Limit.
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Member shall be deemed not to exceed the limitations set forth in this Section 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 c~ntributes, do not e,xceed ~ 1 O,~OO for the .applicable Plan Y ~ar ~d for ~y
prior Plan Year and the CIty has not at any tIme maIntamed a qualIfied defined contnbutlOn plan m
which the Member participated.
6:- M\;<lnbGl ill Ddin,d COlihibntion Plan.
hI All) (,ASC ~h"lG a M"ulb"l nndGl this Sy~t".j~ is al~ ~ ~l~~e.~ ill ~ "D~~l~~d
C~}:~~tlti01I Plan" AS dGf"?-cd ,lu ~414(~> of the. Cod". InA;l11ta111ed by t~G Sl~, ~~':. !~:n,"~ -,tl:'~
II I d De.llcfit Plan FlaGtloll' and th" D"f.llcd COhtubutIon PIAU FIA"tlOl~ ~~ ~~~~~c~ u~
9415(,,) oHhG Cod,,). 5h~ll.no~, s~jc,t to,th71~!tl~~t~O~s ~~ :~;~~us contained in g2004 ofthG
AGt, e.xCGcd 1.8. ThI5 lum~tJvu lS l~p"akd "ff"dLV'" :J....lttat')' t, 2666.
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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 trustees 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 trustees and the plan administrator for such other provided, however,
that necessary reductions may be made in a different manner and priority pursuant to the agreement
ofthe trustees and the plan administrator of all other plans covering such Member.
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Cost-of-Living Adjustments.
The limitations as stated in Subsections 1,2, .allil3, and-6 herein shall be adjusted to
the time payment of a benefit begins in accordance with any cost-of-living adjustments prescribed
by the Secretary of the Treasury pursuant to ~415( d) of the Code.
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Additional Limitation on Pension Benefits.
Notwithstanding anything herein to the contrary:
A. The normal retirement benefit or pension payable to a Retiree who becomes
a Member of the System and who has not previously participated in such
System, on or after January I, 1980, shall not exceed 100 percent 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 another 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 4: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
hereby further amended by amending Section 23, Direct Transfers of Eligible Rollover
Distributions, to read as follows:
SECTION 23. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS.
Rollover Distributions.
A. General.
This Section applies to distributions made on or after January 1, t993 2.Q.Q2.
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 eligi~le rollover ~is~butio.n pa~d directly to an eligible
retirement plan specIfied by the dIstnbutee m a dIrect rollover.
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Distributee: A distributee includes an employee or former employee.
In addition, the employee's or former employee's surviving Spouse is
a distributee with regard to the interest of the Spouse.
Direct Rollover: A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund.
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Definitions.
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Eligible Rollover Distribution: An eligible rollover distribution is
any distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not
include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the
life (or life expectancy) of the distributee or the joint lives (or joint
life expectancies) of the distributee and the distributee's designated
Beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under section
401(a)(9) of the Code; and the portion of any distribution that is not
includible in gross income. Any portion of any distribution which
would be includible in gross income will be an eligible rollover
distribution if the distribution is made to an individual retirement
account described in section 408(a). to an individual retirement
annuity described in section 408(b) or to a qualified defined
contribution plan described in section 401(a) or 403(a) that agrees to
seJlarately account for amounts so transferred. including s~arately
accounting for the portion of such distribution which is includible in
gross income and the portion of such distribution which is not so
includible.
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, an eligible
deferred compensation plan described in section 457Cb) of the Code
which is maintained by an eligible employer described in section
457(e)(1)(A) ofthe Code and which agrees to separately account for
amounts transferred into such plan from this plan. an annuity contract
described in section 403(b) of the Code. or a qualified trust described
in section 401(a) of the Code, that accepts the distributee's eligible
rollover distribution. IIOWCvCI, This definition shall also apply in the
case of an eligible rollover distribution to the surviving Spouse;-an
"litihlc, IGtilClncnt plan is en} individual IctiIcmcnt acconnt 01
illdividnallethcnlent enlnnity.
On or after January 1. 2002. the System will accept. solely for the pw:pose of
purchasing Credited Service as. provided herein. permissible Member ~eQu~sted transfer~ of funds
f;~m ~ther retirement or penSIon plans. Member rollover cash contnbutlOns and/or dIrect cash
rollovers of distributions made on or after January 1. 2002. as follows:
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distribution from a qualified plan described in section 401 (a) or 403(a) ofthe
Code. from an annuity contract described in section 403(b) of the Code or
from an eligible plan under section 457(b) of the Code which is maintained
by a state, political subdivision of a state. or any agency or instrumentality of
a state or political subdivision of a state. The System will also acce,pt leially
permissible Member requested transfers of funds from other retirement or
pension plans.
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~:~~:~ ~~:~~~ir c~~~J~~ti~~n~f ~~~ p~~~ Jr~ di~~d~u~~~ ~~~ta~
individual retireme~t ac~o';lI1t or annuity described in section 408(a) or 408(b)
of the Code that IS elIgIble to be rolled over and would otherwise be
includible in gross income.
SECTION 5: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
hereby further amended by amending Section 25, Deferred Retirement Option Plan, to read
as follows:
SECTION 25.
DEFERRED RETIREMENT OPTION PLAN.
1. Definitions.
As used in this Section 25, the following definitions apply:"
A. "DROP" -- The Ocoee General Employees' Deferred Retirement Option Plan.
B. "DROP Account" -- The account established for each DROP participant
under subsection 3.
2. Participation.
A Eligibility to Participate.
In lieu ofterminating his 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
provided that the election to participate in the DROP is made within twelve
(12) months following the date on which the Member first becomes eligible
for normal retirement, or for a Member who first reached eligibility for
normal retirement prior to the effective date of this Section, the election to
participate is made within twelve (12) months from the effective date of this
Section. A Member who fails to make the election within such twelve (12)
month limitation period shall forfeit all rights to participate in the DROP.
B. Election to Participate.
A Member's election to participate in the DROP must be made in writing in
a time and manner determined by the Board and shall be effective on the first
day of the first calendar month which is at least fifteen (15) business days
after it is received by the Board.
C Period of participation.
A Member who elects to participate in the DROP under subsection 2.B., shall
participate in the DROP for a period not to exceed sixty (60) months
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beginning on~e date which the M.ember first becomes eligible for normal
retirement. election to participate in the DROP shall constitute an
irrevocable el tion to resign from the service of the City at the time of
election into e DROP. A Member may participate only once.
D. Termination of Participation.
e Member's termination of participation in the DROP,
purs t to subsection (tt.(a) orib} above, all amounts provided for
in sub ection 3.B., including monthly benefits and investment
earnin and losses or interest, shall cease to be transferred from the
Syst to his DROP Account. Any amounts remaining in his DROP
Acco t shall be paid to him in accordance with the provisions of
subsec ion 4. when he terminates his employment as a General
Emplo ee.
A Me~er who dccts to terminate~ his participation in the DROP
under . subsection 2.D. shall not be permitted to again become a
partici ant in the DROP.
E. Effect ofDROiP Participation on the System.
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(1)
A ~~t~r~ .~tl~~~t~~f participa~ion in the DROP shall cease
pattlGI bng 1 at the earher of:
fa} I~~~~~~:~~~;t~~i;~h~~ i~~:~~oP1dGdUihed by the
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continuing to be employed a5 a Gencul :employee at the end
of his permissible period of participation in the DROP as
determined under subsection 2.C.; or
Itcnninating termination of his employment as a General
Employee.
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(2)
(3)
(1)
A Me ber's Credited Service and his accrued benefit under the
Syste shall be determined on the date his election to participate in
the DR: P first becomes effective. The Member shall not accrue any
additio al Credited Service or any additional benefits under the
Syste (except for any additional benefits provided under any cost-
of-livi g adjustment in the System) while he is a participant in the
DROP After a Member commences participation, he shall not be
permi to again contribute to the System nor shall he be eligible for
disabil ty or pre-retirement death benefits.
No am unts shall be paid to a Member from the System while the
Memb r is a participant in the DROP. Unless otherwise specified in
the Sy tem, if a Member'~ terminat,s his participation in the DROP
i other than by terminating his employment as a General
Emplo ee, no amounts shall be paid to him from the System until he
termin tes his employment as a General Employee. Unless otherwise
specifi d in the System, amounts transferred from the System to the
(2)
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Members DROP Account shall be paid directly to the Member only
on the termination of his employment as a General Employee.
3. Funding.
A Establishment of DROP Account.
A DROP Account shall be established for each Member participating in the
DROP. A Members DROP Account shall consist of amounts transferred to
the DROP under subsection 3.B., and earnings or interest on those amounts.
B. Transfers From Retirement System.
As of the first day of each month of a Member's period of
participation in the DROP, the monthly retirement benefit he would
have received under the System had he terminated his employment as
a General Employee and elected to receive monthly benefit payments
thereunder shall be transferred to his DROP Account, except as
otherwise provided for in subsection 2.0.(2). A Member's period of
participation in the DROP shall be detennined in accordance with the
provisions of subsections 2.C. and 2.0., but in no event shall it
continue past the date he terminates his employment as a General
Employee.
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 I 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.
A Member's DROP Account shall only be credited or debited with
earnings or interest and monthly benefits while the Member is a
participant in the DROP and afte! the Mcmb'l dies, (,tiles 01
te(1l.inat'5 his (,.Hploymc.lt as A CcncIal Employee. 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
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end of the quarter immediately preceding termination of participation
plus any monthly periodic additions made to the DROP account
subsequent to the end of the previous Quarter and prior to distribution.
If a Member is employed by the City after elccting to ccase
participation in the DROP pwo>...6.1lt to subscction 2.0.(1 )(4) 01 aftei
participating in the DROP for five (5) )"6.15 the permissible period of
DROP participation, then b...~llliH~ vv;th. tIle ncxt payment following
cessation of participation 01 beginning with the Member's 6tst jg
month of employment followin~ the last month of DROP
participation, whidl~vGr OeCl:1iS hlo>t, 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. A Member
employed by the City after fiv" (5) ,eals the permissible period of
DROP participation will still not be eligible for pre-retirement death
or disability benefits, nor will he accrue additional Credited Service.
4. Distribution of DROP Accounts on Termination of Employment.
A Eligibility for Benefits.
A Member shall receive the balance in his DROP Account in accordance with
the provisions ofthis subsection 4. upon his termination of employment as
a General Employee. Except as provided in subsection 4.D., no amounts
shall be paid to a Member from the DROP prior to his termination of
employment as a General Employee.
B. Form of Distribution.
(1) Unless the Member elects otherwise, distribution of his DROP
Account shall be made in a cash lump sum, subject to the direct
rollover provisions set forth in subsection 4.G. A Member may,
however, elect, in such time and manner as the Board shall prescribe,
that his DROP distribution be used to purchase a nonforfeitable fixed
annuity payable in such form as the Member may elect. Elections
under this paragraph shall be in writing and shall be made in such
time or manner as the Board shall determine. If the annuity form
selected is not a qualified joint and fifty percent (50%) survivor
annuity with the Member's Spouse as the Beneficiary, the annuity
payable to the Member and thereafter to his Beneficiary shall be
subject to the incidental death benefit rule as described in Section
401 (a)(9)(G) of the Code and its applicable regulations.
If a Member dies before his benefit is paid, his DROP Account shall
be paid to his Beneficiary in such optional form as his Beneficiary
may select. If no Beneficiary designation is made, the DROP
Account shall be distributed to the Member's estate.
C. Date of Payment of Distribution.
Except as otherwise provided in this subsection 4., distribution of a
Member's DROP Account shall be made as soon as administratively
practicable following the Member's termination of employment.
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(2) In lieu of a distribution as described in paragraph (1) above, a
Member may, in accordance with such procedures as the Board shall
prescribe, elect to have the distribution of his DROP Account made
as of the first day of any month coincident with or following his
termination of employment as a General Employee; provided,
however, payments shall be made before the distribution date elected
by the Member to the extent necessary to comply with the provisions
of subsections 4.D. and 4.F.
D. Age Seventy and One-Half (70-1/2) Required Distribution.
In no event shall the provisions of subsection 4. operate so as to allow the
distribution of a Member's DROP Account to be later than the April 1
following the later of the calendar year in which he terminates his
employment as a General Employee or he attains age seventy and one-half
(70-112). In the event a Member is required to receive payment while in
service under the provisions ofthis subsection D., he shall receive one lump
sum payment on or before his required beginning date equal to his entire
DROP Account balance and armual lump sum payments thereafter of
amounts credited to his DROP Account during each calendar year. Upon the
Member's subsequent termination of employment, payment of his DROP
Account shall be made in accordance with the provisions of subsection 4.B.
E. Proof of Death and Right of Beneficiazy or Other Person.
The Board may require and rely upon such proof of death and such evidence
of the right of any Beneficiary or other person to receive the value of a
deceased Member's DROP Account as the Board may deem proper and its
determination of the right of that Beneficiary or other person to receive
payment shall be conclusive.
F. Distribution Limitation.
Notwithstanding any other provision of subsection 4., all distributions from
the DROP shall confonn to the regulations issued under Section 401(a)(9) of
the Code, including the incidental death benefit provisions of Section
401 (a)(9)(G) of the Code. Further, such regulations shall override any DROP
provision that is inconsistent with Section 401(a)(9) ofthe Code.
G. Direct Rollover of Certain Distributions.
This subsection applies to distributions made on or after January I, t993
2QQ2. Notwithstanding any provision ofthe DROP to the contrary that would
otherwise limit a distributee's election under this subsection, 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 by the DROP to an
eligible retirement plan specified by the distributee in a direct rollover as
otherwise provided under the System in Section 23, herein incorporated by
reference.
5. Administration of DROP.
A. Board Administers the DROP.
The general administration of the DROP, the responsibility for carrying out
the provisions of the DROP and the responsibility of overseeing the
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investment of the DROP's assets shall be placed in the Board. The members
ofthe Board may appoint from their number such subcommittees with such
powers as they shall detennine; 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, or cause to be maintained, records showing the
operation and condition of the DROP, including records showing the
individual balances in each Member's DROP Account, and the Board shall
keep, or cause to be kept, in convenient form such data as may be necessary
for the valuation of the assets and liabilities of the DROP. The Board shall
prepare or cause to be prepared and distributed to Members participating in
the DROP and other individuals or filed with the appropriate governmental
agencies, as the case may be, all necessary descriptions, reports, infonnation
returns, and data required to be distributed or filed for the DROP pursuant to
the Code, the applicable portions ofthe Act and any other applicable laws.
C. Establishment of Rules.
Subject to the limitations of the DROP, the Board from time to time shall
establish rules for the administration of the DROP and the transaction of its
business. The Board shall have discretionary authority to construe and
interpret the DROP (including but not limited to determination of an
individual's eligibility for DROP participation, the right and amount of any
benefit payable Wlder the DROP and the date on which any individual ceases
to be a participant in the DROP). The determination of the Board as to the
interpretation of the DROP or its determination of any disputed questions
shall be conclusive and final to the extent permitted by applicable law. The
Board shall also oversee the investment of the DROP'S assets.
D. Limitation of Liability.
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.
Neither the Board nor any Trustee ofthe Board shall be responsible
for any reports furnished by any expert retained or employed by the
Board, but they shall be entitled to rely thereon as well as on
certificates furnished by an accountant or an actuary, and on all
opinions of cOWlsel. 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.
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6. General Provisions.
A. Amendment of DROP.
The DROP may be amended by an ordinance of the City at any time and from
time to time, and retroactively if deemed necessary or appropriate, to amend
in whole or in part any or all of the provisions of the DROP. However,
except as otherwise provided by law, no amendment shall make it possible
for any part of the DROP's funds to be used for, or diverted to, purposes other
than for the exclusive benefit of persons entitled to benefits under the DROP.
No amendment shall be made which has the effect of decreasing the balance
of the DROP Account of any Member.
B. Facility of Payment.
If the Board shall find that a Member or other person entitled to a benefit
under the DROP is unable to care for his affairs because of illness or accident
or is a minor, the Board may direct that any benefit due him, unless claim
shall have been made for the benefit by a duly appointed legal representative,
be paid to his Spouse, a child, a parent or other blood relative, or to a person
with whom he resides. Any payment so made shall be a complete discharge
of the liabilities of the DROP for that benefit.
C. Information.
Each Member, Beneficiary or other person entitled to a benefit, before any
benefit shall be payable to him or on his account under the DROP, shall file
with the Board the information that it shall require to establish his rights and
benefits under the DROP.
D. Prevention of Escheat.
If the Board cannot ascertain the whereabouts of any person to whom a
payment is due under the DROP, the Board may, no earlier than three (3)
years from the date such payment is due, mail a notice of such due and owing
payment to the last known address of such person, as shown on the records
of the Board or the City. If such person has not made written claim therefor
within three (3) months of the date of the mailing, the Board may, if it so
elects and upon receiving advice from counsel to the DROP, direct that such
payment and all remaining payments otherwise due such person be canceled
on the records of the DROP. Upon such cancellation, the DROP shall have
no further liability therefor except that, in the event such person or his
Beneficiary later notifies the Board of his whereabouts and requests the
payment or payments due to him under the DROP, the amount so applied
shall be paid to him in accordance with the provisions ofthe DROP.
E. Written Elections. Notification.
(1)
Any elections, notifications or designations made by a Member
pursuant to the provisions of the DROP shall be made in writing and
filed with the Board in a time and manner determined by the Board
under rules uniformly applicable to all employees similarly situated.
The Board reserves the right to change from the time and manner for
making notifications, elections or designations by Members under the
DROP if it detennines after due deliberation that such action is
justified in that it improves the administration of the DROP. In the
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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 AccoWlt shall be
responsible for furnishing the Board with his current address and any
subsequent changes in his address. Any notice required to be given
to a Member or Retiree hereunder shall be deemed given if directed
to him at the last such address given to the Board and mailed by
registered or certified United States mail. If any check mailed by
registered or certified United States mail to such address is returned,
mailing of checks will be suspended until such time as the Member
or Retiree notifies the Board of his address.
F. Benefits Not Guaranteed.
All benefits payable to a Member from the DROP shall be paid only from the
assets of the Member's DROP Account and neither the City nor the Board
shall have any duty or liability to furnish the DROP with any funds, securities
or other assets except to the extent required by any applicable law.
G. Construction.
The DROP shall be construed, .regulated and administered under the
laws of Florida, except where other applicable law controls.
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.
Nothin~;u ti';~ SGction shall b" ,-,on~tlacd to l'-'iUVV(. DROP partidp.mts fiom
the scope. o[Section 20 above. or ScGtion 112.3173, Florida Statntc.s. DROP
participAnts who e.omnlit a spce.ified offGnse. 01 whose. e.1I1plo)'ulent j~
terminated AS described in See.tion 20 while employed, will be. sl1bj"t to
fOIfdtme of all JctiJe.htcnt b"ud-;t~, ;ildl:1ding DROP bendits, pW5uant to the
abole prOvisions of lll:~. Nothin~ 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 subiect to forfeiture of
all retirement benefits. including DROP benefits.
I Effect of DROP Particioation on Emolovment.
Participation in the DROP is not a guarantee of employment and DROP
participants shall be subiect to the same employment standards and policies
that are applicable to employees who are not DROP participants.
SECTION 6: Tbat Ordinance No. 96-19, adopting tbe amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
hereby further amended by adding a new Section 26, Prior Government Service, to read as
follows:
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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 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
!TIember served as a. Gene~al ~mpl?yee for any other municipal. co~ty or special district de.partment
m the State ofFlonda or lUnsdlctlOn other than the State ofFlonda. shall be added to his years of
Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed. based
on his Salary and the Member contribution rate in effect at the time that the Credited Service is
requested. had he been a Member of this System for the years or fractional parts of years for which
he is requestin~ 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. The request shall be made only once and made by the Member on or before the later
of eighteen (18) months from the date of the ordinance adopting this section or eighteen (18) months
from the date of their employment with the City ofOcoee.
~ Payment by the Member of the required amount shall be made within six (6) months
of his request for credit. but not later than his 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 iurisdictions other than the City ofOcoee.
when combined with credited service purchased pursuant to Section 27. Military Service Prior to
Employment. shall be five (5) years of Credited Service and shall count for all pUl:poses. 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 pUl::poses. including vesting.
~ 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.
SECTION 7: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is
hereby further amended by adding a new Section 27, Military Service Prior to Employment,
to read as follows:
SECTION 27. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a 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 years of Credited
Service provided that:
L The Member contributes to the Fund the sum that he would have contributed. based
on his Salary and the Member contribution rate in effect at the time that the Credited Service is
requested. had he been a Member of this System for the years or fractional parts of years for which
he 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 Credit cd Scrvice.
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L The request shall be made only once and made by Member on or before the later of
ei~teen (18) months from the effective date of the ordinance adoptin~ this section or eighteen (18)
months from the date of their employment with the City ofOcoee.
3... Pa,yment by the Member of the required amount shall be made within six (6) months
of his request for credit. but not later than his retirement date. and shall be made in one (1) lump ~~
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 iurisdictions other than the City
ofOcoee. shall be five (5) years.
.i. Credited Service purchased pursuant to this Section shall count for all put:Poses.
except vesting.
SECTION 8. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 9. 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 sball not effect the remaining portions hereof.
SECTION 10. Effective Date. This ordinance shall take effect upon adoptions.
PASSED AND ADOPTED this r.:t ij, day of IJ 0 rJ6h1&:t, 2002
ATTEST:
APPROVED:
CITY OF OCOEE, FLORIDA
B~-~
S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED November 7, 2002
READ FIRST TIME Nov. S ,2002
READ SEC~ND TIME AND ADOPTED
~Uf~~ 2002
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE. FLORIDA
APPRQ}:"ED AS TO FORM AND LEGALITY
THIS.l.L day off~\"v, 2002
15
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
.." (~ '
By: .~. rfJ \.-{ -( ~_ ~ Cl/\,~~l-L~
v
noc\ocoee\gen \09-23 -02. ord
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD ON
Al()/~q ,2002 UNDER AGENDA ITEM
NO. (A '- .
.--
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