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HomeMy WebLinkAboutOrdinance 99-34 ORDINANCE NO. 99-34 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 NO. 96-191 AS SUBSEQUENTLY AMENDED; ADDING SECTION :l5, DEFERRED RETIREMENT OPfION PLAN; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT BEREWITII AND PROVIDING AN EFFECTIVE DATE. SECflON 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. SECflON 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 amended by adding Section 25, Deferred Retirement Option Plan, to read as follows: SECTION 25. DEFERRED RETIREMENT OPfION PLAN. L Definitions. As used in this Section 25, the following definitions apply:" ~ "DROP" -- The Ocoee General Employees' Deferred Retirement Option flaIh B... "DROP Account" -- The account established for each DROP participant under subsection 3. ~ Particioation. ~ Eli2ibilitv to Particioate. ~e~b~ro~~~:n~r;tl:ilo:~E~1r~~~r~~:n~~~d~~1 J;:~~~k~ ~ 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... ~lection to Particioate. 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. -1- C. Period of oarticioation. A Member who elects to participate in the DROP under subsection 2.B. shall participate in the DROP for a period not to exceed sixty (60) months beginning on the date which the Member first becomes eligible for normal retirement. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the City at the time of election into the DROP. A Member may participate only ~ ~ Termination of Particioation. ill A Member participating in the DROP shall cease participating in the DROP by: m (a) electing in writing, in a time and manner determined by the Board, to cease participating in the DROP; (b) continuing to be employed as a General Employee at the end of his period of participation in the DROP as determined under subsection 2. C.; or (c) terminating his employment as a General Employee. Any election made under clause (a) shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. Upon the Member's termination of participation in the DROP f~:i~~~bt~e~~~e3~~ g~i~~: 22:~I;~~~~\h~~~3t~e~~~~~ earnings and losses or interest, shall cease to be transferred from the System to his DROP Account. Any amounts remaining in his DROP Account shall be paid to him in accordance with the provisions of subsection 4. when he terminates his employment as a General Employee. A Member who elects to terminate his participation in the DROP under subsection 2.D. shall not be permitted to again become a participant in the DROP. (2) a. Effect of DROP Particioation on the Svstem. ill A Member's Credited Service and his accrued benefit under the System shall be determined on the date his election to participate in the DROP first becomes effective. The Member shall not accrue any additional Credited Service or any additional benefits ~~g:~ :~ ~~:Le:l~i~;~dj~~~~t a~d:~S~~~)~~ir:~~it:~ participant in the DROP. After a Member commences participation, he shall not be permitted to again contribute to the System nor shall he be eligible for disability or pre-retirement death benefits. (2) No amou!1ts shall.b.e pai~ to a Member from the System while the Member IS a partICIpant ill the DROP. Unless otherwise specified -2- in the System, if a Member terminates his participation in the DROP other than by terminating his employment as a General Emplo.yee, no amounts shall be paid to him from the System until he terminates his 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 employment as a General Employee. .1.. Fundinl!. ~ Establishment of DROP Account. A DROP Account shall be established for each Member :participating in the DROP. A Member's DROP Account shall conSIst of amounts transferred to the DROP under subsection 3.B., and earnings or interest on those amounts. B... Transfers Prom Retirement Svstem. ill 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 ~~~~b;~efi~ :ay~e~tsa~;~~d~:~h:nd b:I:~~e~eJeic,e~~ DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.D., but in no event shall it continue past the date he terminates his employment as a 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 ~'edited 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 chilly balance in a Member's DROP Account shall be credited or debited at a rate eq.ual to the actual net rate of investment return realized by the System for that quarter. "Net investment return" for the purpose of this ~~:;ea;?~ ~~~; :~~u~t~~~~:~ ~~~e ~o:r~c;et~f brokerage commissions, transaction costs and management ~ Upon electing participation in the DROP, the Member shall elect to receive either interest or earnings on his account to be ~termined as provided above. The Member may, in writing, ek~ ~ ~ n ~.. ~. ~ ~. :. ~ par. ci ati~ ~ ~n l~cti ~~~~h~~ re ~~~~ b ~Je rio~~ ~ -3- m 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 after the Member dies, retires or terminates his emplo.yment as a General Employee. If a Member ~:~~~~~u~~~ ~~gs:~~~I~~~~tl)(Jeo~s~K:~~r:~~~~g~ the DROP for five (5) years, then beginning with the next payment following cessation of participation or beginning with the Member's 61st month of DROP participation, whichever occurs first, the Member's DROP Account will no longer be credited or debited with earnings or interest, nor will monthly benefits be transferred to the DROP account. All such non-transferred amounts shall be forfeited and continue to be forfeited while the ~~~~~:sfi~~~y;~a~; :;rri~gp ~;~J~ne~~o~:g ~~t t: eligible for pre-retirement death or dIsability benefits, nor will he accrue additional Credited Service. ~ Pistribution of DROP Accounts on Termination of Emolovment. ~ Eli2ibilitv for Benefits. A Member shall receive the balance in his DROP Account in accordance with the provisions of this subsection 4. llPon his termination of employment as a General Employee. Exc~pt 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. ill 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 qJ1alified 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 40 I (a) (9) (G) of the Code and its applicable regulations. (2) If a Member dies before his benefit is paid, his DROP Account ~~i~ia~i~~~ ~ie~~n~r~~ire~fici~ &~:~ti~~ ~aS~~ the DROP Account shall be distributed to the Member's estate. -4- 1:.. Date of Pavment of Distribution. ill 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. (2) In lieu of a distribution as described in paragraph (1) above, a Member mar., in accordance with such procedures as the Board shall prescnbe, elect to have the distribution of his DROP Account made as of the first d~ 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. ~ A2e Seventy and One-Half 00-1/2) Reauired 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 (70-1/2). In the event a Member is reQ.J.lired to receive payment while in service under the provisions of this subsection D., he shall receive one lump sum payment on or before his required beginning date equal to his entire DROP Account balance and annual 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. a. Proof pf Death and Ri2ht of Beneficiarv or Other Person. The Board may require and rely lWon 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 subsection 4., all distributions from the DROP shall conform 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) of the Code. a Direct Rollover of Certain Distributions. This subsection applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the DROP to the contrat:y 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 -5- rollover as otherwise provided under the System in Section 23, herein incm:porated by reference. s.... Administration of DROP. ~ Board Administers the DROP. The general administration of the DROP, the responsibility for can:ying out the provisions of the DROP and the responsibility of overseeing the ~:~~~:ntoff ~: Dl~' s ~~~ts a~t;~~~e E~~ed ~i~en~~~:~. s~~~ subcommittees with such powers as they shall determine; m~ 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 m~ require ~e~~~g o~':le~;a~:~~~s~~~ ~r~P;u~dp~nal~f~~ti~~ under the DROP, other than those granted to them as Trustee under any trust agreement adQPted 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... !!!.dividual Accounts. Records and Reoorts. The Board shall maintain, or cause to be maintained, records showing the operation and condition of the DROP, including records showing the individual b~l~nces in each Member's DROP Account, and the Board ~~=f~rr ~:~~:ti~~ ~fP~ei~s~~~v~Jefu::ili:s s~f~~ag:O;~~: Board shall prepare or cause to be prepared and distributed to Members participating in the DROP and other individuals or filed with the appropriate governmental agencies, as the case may be, all necessary descriptions, reports, information returns, and data required to be distributed or filed for the DROP pursuant to the Code, the applicable portions of the Act and any other applicable laws. k 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 discretiona(y authority to construe and intet:pret 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 ~~~tgp~~P:~:~~ law. The Board shall also oversee the investment -6- ~ Limitation of Liability . ill ~~~=s~~t~~~~t%i ain' 1~~~tI~~~~d~~l~~~~~~:~~~ 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 e~rt retained or emplo.yed by the Board, but they shall be entitled to rely thereon :~h=~~ ~d ~~ ~l:~~~: :~~~~. bth:~~;3~~~n~eofun; protected with respect to any action taken or suffered by it in good faith in reliance upon such expert, accountant, actuat:}' 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. ~ 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 necessaI:}' or appropriate, to amend in whole or in part any or all of the provisions of the DROP. ~~eite~o:~bl~tf~: ~~~e;~eof~:it~o~' slafu~~ot:b:n~d~o:~~ diverted to, pu~oses o~er ~~ ~ th~~~:i! =e[g ~f ~~~ entitled to bene Its under the DROP. No amendment shall be made which has the effect of decreasing the balance of the DROP Account of any Member. B... Facilitv of Pavment. 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, BeneficiaI:}' 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 reqJlire to establish his rights and benefits under the DROP. ~ 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, -7- the Board may, if it so elects and upon receiving advice from counsel to ~~e~~Pdu:i~~~~ ~~s;:t~:K~l;J ~~dth:l~e~~~d~n~fgth~~~O~~ Upon such cancellation, the DROP shall have no further liability therefor except that, in the event such person or his Beneficiaty later notifies the Board of his whereabouts and reqJlests the pl:\Yment or payments due to him under the DROP, the amount so applied shall be paid to him in accordance with the provisions of the DROP. a. Written Elections. Notification. ill (2) Any elections, notifications or designations made by a Member pursuant to the provisions of the DROP shall be made in writini 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. Each Member or Retiree who has a DROP Account shall be responsible for furnishing the Board with his current address and any subsequent changes in his address. Any notice reqJlired 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 ~: b6yre~~~r:e~r ~~~~~~it~~~eS~~~. ~~~nio c~~~~ address is returned, mailing of checks will be suspended until such time as the Member or Retiree notifies the Board of his address. E.. 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. ill 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 ~~ ~~~;~~~~ ili~YtheIti:~ ~~s~e~~:~i;h~:r c~n~~lnsistency , lL. Forfeiture of Retirement Benefits. Nothing in this Section shall be construed to remove DROP participants from the scope of Section 20 above or Section 112.3173, Florida -8- Statutes. DROP participants who commit a specified offense or whose :1rl~~~~~~~ :~fu~:::ea~1:flc~~ti~~~t~~~~~ ~~i~di~pb~o~ benefits, pursuant to the above provisions of law. SECflON 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECflON 4. Severability. In the event any section, subsection, paragraph, sentence, clause, phrase or word of this ordinance shall be held invalid by a court of competent jurisdictIon, then such invalidity shall not affect the remaining portions hereof. SECflON 5. Effective Date. This ordinance shall take effect upon second reading and adoption. PASSED AND ADOPTED this l.J.:nL day of {J Co't 0 Q Ell., 1999. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA S$fi(~~ By. S. Scott Vandergrift, Mayor 'lJlp~JIU4NJ Jean Grafton, City Clerk t'\""'11'\t-l GAIU!N, A.c..u....O' C't.f'l e..u,1(. (SEAL) ADVERTISED October 7 , 1999 READ FIRST TIME OC tober 5 1999 , READ SECOND TIME AND ADOPTED Oc.:t OI\EA lq , 1999. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM AND LEGALITY TIllS ,q'rw day of Or:roQEQ. ,1999. By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON Oc..lCHlllt... lq ,1999 UNDER AGENDA ITEM NO. ""q'L B bm\ocoee\gen\09-I0-99.ont -9-