HomeMy WebLinkAboutOrdinance 99-33
ORDINANCE NO. 99-33
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
POLICE OFFICERS' AND FIREFIGIITERS'
RETIREMENT TRUST FUND, ADOPTED AND
RESTATED IN FULL BY ORDINANCE NO. 96-20, AS
SUBSEQUENTLY AMENDED; ADDING 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 vrn of the Constitution of the State of Florida and
Chapter 166, Florida Statutes.
SECTION 2: That Ordinance No. 96-20, adopting the amended and restated City of
Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, as subsequently
amended, is hereby amended by adding Section 27, Deferred Retirement Option Plan, to read
as follows:
SECTION 27.
DEFERRED RETIREMENT OPTION PLAN.
L Definitions.
As used in this Section 27, the following definitions apply:"
~ "DROP" -- The Ocoee Police Officers' and Firefighters' Deferred
Retirement Option Plan.
a. "DROP Account" -- The account established for each DROP participant
under subsection 3.
2.. Particioation.
~ E1i2ibilitv to ParticiDate.
~~e%~~~ti~gell~61~f~~~: a:etir~~~~~ ~!~~:~~r J;,~:;~~e;y
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.
a. Election to ParticiDate.
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.
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C. feriod of DarticiDation.
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
~
D... Termination of Particioation.
ill A Member participating in the DROP shall cease participating in
the DROP by:
(a) electing in writing, in a time and manner determined by
the Board, to cease participating in the DROP;
.(b) continuing to be employed as a Police Officer or
Firefighter at the end of hIS period of participation in the
DROP as determined under subsection 2.C.; or
W terminating his employment as a Police Officer or
Firefighter.
Any election made under clause (a) shall be effective on the first
da,y of the first calendar month which is at least fifteen (15)
IDlsiness days after it is received by the Board.
(2) IIpon the Member's termination of participation in the DROP,
pursuant to subsection (1),(a) or (b) above, all amounts provided
for in subsection 3.B., including monthly benefits and investment
earnings and losses or interest, shall cease to be transferred from
the System to his DROP Account. Any amounts remaining in his
DROP Account shall be paid to him in accordance with the
provisions of subsection 4. when he terminates his employment
as a Police Officer or Firefighter.
ill A Member who elects to terminate his participation in the DROP
under subsection 2.D. shall not be permitted to again become a
participant in the DROP.
E.. Effect of PROP 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
under the System (except for any additional benefits provided
~~:~;~t ci~t-ii;~iv~io~~stmA~e~ ~e ~:~~ ~~~::n~e~
~~~~a~g;~~:lls~~I6eO~~:igi:f~~e~:~birr~n o~o;~_~~:~~:~
death benefits.
(2) No amounts shall be paid to a Member from the System while the
Member is a participant in the DROP. Unless otherwise specified
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in the System, if a Member terminates his participation in the
DROP other than by terminating his employment as a Police
Officer or Firefighter, no amounts shall be paid to him from the
System until he terminates his employment as a Police Officer or
Firefighter. Unless otherwise specified in the System, amounts
transferred from the System to the Member's DROP Account
shall be paid directly to the Member only on the termination of
his employment as a Police Officer or Firefighter.
1.. Fundin2.
~ Establishment of DROP Account.
A DROP Account shall be established for each Member varticipating 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.
a. 'J"ransfers From 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
employment as a Police Officer or Firefighter and elected to
receive monthly benefit payments thereunder shall be transferred
to his DROP Account, except as otherwise provided for in
subsection 2.D.(2). A Member's period of participation in the
DROP shall be determined in accordance with the provisions of
subsections 2.C. and 2.D., but in no event shall it continue past
the date he terminates his employment as a Police Officer or
Firefighter.
(2) Except as otherwise provided in subsection 2.D.(2), a Member's
DROP Account under this subsection 3.B. shall be debited or
credited after each fiscal year qJlarter 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
~
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
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ill
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 employment as a Police Officer or Firefighter. If
a Member is employed by the City Fire and Police Departments
after electing to cease participatIOn in the DROP pursuant to
subsection 2.D.(1)(a) or after participating in the DROP for five
(5) years, then beginning with the next payment following
cessation of participation or beginning with the Member's 61st
month of DROP participation, whichever occurs first, the
Member's DROP Account will no longer be credited or debited
with earnings or interest, nor will monthly benefits be transferred
to the DROP account. All such non-transferred amounts shall be
forfeited and continue to be forfeited while the Member is
employed by the City Fire and Police D~partments. A Member
employed by the City Fire and Police Departments after five (5)
f DRQE .., 'n '11 t bJ ill.! 'bl ~
~:ti~~;:ent deathPa:c:ti::n: be~~fit~~O no~ ewn~ ~e O:c~~~
additional Credited Service.
~ Distribution of DROP Accounts on Termination of EmDlovment.
~ Eli2ibilitv for Benefits.
A Member shall receive the balance in his DROP Account in accordance
with the provisions of this subsection 4. upon his termination of
employment as a Police Officer or Firefighter. Exct4>t as provided in
subSection 4.D., no amounts shall be paid to a Member from the DROP
prior to his termination of employment as a Police Officer or Firefighter.
a. 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 qJlalified 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
jf~~i~i!;~~~ ~~fe~~n~f~~'ire~fi~~~ ~~~~~ti~~ ~aS~~
the DROP Account shall be distributed to the Member's estate.
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~ Date of Payment 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 day of any month coincident with or
following his termination of employment as a Police Officer or
Firefighter; 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
~
D... A2e Seventy and One-Half nO-l/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 Police Officer or Firefighter or he attains age seventy
and one-half (70-1/2). In the event a Member is reqJlired to receive
payment while in service under the provisions of this subsection D., he
shall receive one lump sum payment on or before his reqJlired beginning
date eqJlal 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
~lr;~;vf~~~:~tf ~~:e~~~~ ~~count shall be made in accordance
E.. Proof of Death and Ri2ht of Beneficiarv or Other Person.
The Board may require and rely upon such proof of death and such
~~~~~n~; aO~~:a~h~:~b~r~e~~tto~Ac~~~~~s ~~s~~:~d r~~~v~e~~
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.
G.... 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 contrary that would
th ' limi d' 'b ' I' d th. b . d' 'b
o erwIse t a Ism utee s e ectlOn un er IS su section, a Ism utee
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
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rollover as otherwise provided under the System in Section 25, herein
incOl:porated by reference.
s.... Administration of DROP.
~ Board Administers the DROP L
~: l~n;~i~1:~~~og~b~ea~:g: ~e~o~~~ili~b~/~v~~~~~~
~:~~~:nto~f ~: Dl?~' s :,s:;ts ~~a~~n~e E~~ed ~~i~en~~~~' s~~~
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
~e~~~ o~~e~:a~r~;~:;s;~s~ ~r~:s~~dp~~~~~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.
a. Individual 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 balances in each Member's DROP Account, and the Board
== f~rr ~:u~~:ti~~ ~1~e ~s~~v~jeli::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, an necessa(}'
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 ~p1icable laws.
.c.. Establishment of Rules.
SuQject to the limitations of the DROP, the Board from time to time shall
establish mles for the administration of the DROP and the transaction of
its business. The Board shall have discretionary authority to construe
and interpret the DROP (jncluding 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 qJlestions shall be conclusive and final to the extent
~~~tgp~~P~~~~~ law. The Board shall also oversee the investment
D... Limitation of Liability.
ill
~F~~=Si~~~~~fu~r ain' ~~~~~~~d~~~~~~inb:~~~
faith in relation to the DROP or the funds of the DROP.
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(2) Neither the Board nor any Trustee of the Board shall be
responsible for any reports furnished by any expert retained or
emplo.yed by the Board, but they shall be entitled to rely thereon
:~h=~ ~d ~~ ~:~~~: :~~~:~. bth:nB:~~3~~:beo~~
protected WIth respect to any action taken or suffered by it in
~~~:S:ii:jn~e~~~~~ ~~ :c~~~~Sina~~~~~:~~~~~~
conclusive upon any person with any interest in the DROP.
6... General Provisions.
~ Amendment of DROP.
The D~OP m~ 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:
:~eite~o:~~!~tf~: ~~e;~eof~:i~~cf?' slafu~d~ot~:~:~nlo:~~~
~~~it~1 t~b~~~~ss~n~~e~~~~~ .th~~x~~~~d~~e~~8fb~e~~~~
which has the effect of decreasing the balance of the DROP Account of
any Member.
a. 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 repre~entative, be paid to his Spouse, a child, a parent or other
:cied s~~~e~ :~~I~J&~~~~of~~~ilfti~~d~fili~rJRt~f~:~a~
benefit.
c.... InformatimL.
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
s~all,file with the Board the information that it shall reqJlire to establish
hIS nghts and benefits under the DROP.
D... Prevention of Escheat.
If the Bo~rd cannot ascertain the whereabouts of any person to whom a
payment IS due under the DROP, the Board may, no earlier than three
(3) ye~s 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 re~ords of the ~o~rd or the City. If such person ha~ not made
wrItten claim therefor WIthin three (3) months of the date of the mailing
the Board may,. if it so elects and llPon receiving advice from counsel t~
~~he~~Pdu~~~~~ ~~s~~b~ ~:~~i~ :dth:l~e~~~~n~fgth~b~cr~~
Upon such ~cellatIon, the DROP shall have no further liability therefor
except that,. m the event such person or his Beneficiary later notifies the
Board of hIS whereabouts and reqJlests the payment or payments due to
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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)
~:~:~tC~O~~ ;~~~~i:~n~/ili~B~oWih:llb~d~~Xe ain~~~
and filed with the Board in a time and manner determined bX 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
ft/~~l~:~'el~~~~,e:~ti~~!ti~~o;flj~~~~::~ :te ~~~~~:
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 fumishin~ the Board with his current address and
any subsequent changes m 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
~l: b6yre~~~r::edr ~~~~~~it~~~~Jes~~i~. ~;i1nio 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 N at 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, exc~t where other applicable law controls.
(2) The titles and headings of the subsections in this Section 27 are
~~ ~~~;~~~~ tho~ theIti~~ ~~she~~~~~~7 c~~~~~l~nsistency,
H.. Forfeiture of Retirement Benefits.
Nothing in this Section shall be construed to remove DROP participants
~~~te~~e ~~~ ~~J~:~~s ~\:~~:mi[ a S~~~iRel ~~f~~~: ~rP~h~~:
:1rl~ir:~~~~ ~fu~f:I~~ea~t:fl~~:~~eb~~~f~;' ~~i~di~P~~o~
benefits, pursuant to the above provisions of law.
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SECTION 3. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 4. Severability. In the event any section, subsection, paragraph, sentence,
clause, phrase or word of this ordinance shall be held invalid by a court of competent
jurisdiction, then such invalidity shall not affect the remaining portions hereof.
SECTION 5. Effective Date. This ordinance shall take effect upon second reading and
adoption.
PASSED AND ADOPTED this lil:a day of DC!. T ~ it e R , 1999.
ATTEST:
!1.lli~ JJ A II" JJLJ
Jean Grafton, City Clerk
M~~X"'N GttEEN Pte:T';CI'(. C~1Y CL.EA.I<.
(SEAL)
ADVERTISED Oc tober 7 , 1999
READ FIRST TIME October 5 ,1999
READ SECOND TIME AND ADOPTED
/)t'''tOlU!A... ,,, , 1999.
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
TillS \q T~ day of Ot.,\,QAI!R-, 1999.
CHRISTIANSEN & DEHNER, P .A.
s~
By; ~
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON OC!.TtJ 8.&'l. I q , 1999 UNDER
AGENDA ITEM NO. "VT I\.
bm\ocoee\pt\09-I0-99.ord
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