HomeMy WebLinkAboutItem #09 First Reading of Ordinance Amending the City of Ocoee Municipal Police Officers’ and Firefighters’ Retirement Trust Fund Reflecting Changes Made by Fire and Police Collective Bargaining Agreements t I
ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: May 2, 2017
Item # 9
Reviewed By: 14,
Contact Name: Charles J. Brown Department Director: Chief
Contact Number X 3022 City Manager: Rob Frank rie
Subject: First Reading of Ordinance Amending the City of Ocoee Municip-I-Police Officers'
and Firefighters' Retirement Trust Fund Reflecting Changes Made by Fire and Police
Collective Bargaining Agreements
Background Summary:
The Pension Board for the City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund is
governed by City of Ocoee Ordinances and State Statutes. Changes to the Police and Fire pension benefits
were agreed upon in the Collective Bargaining Agreements of the Police and Fire Unions with the City of
Ocoee. The Pension Ordinance must be amended to reflect the agreed upon changes, state law and Internal
Revenue Service regulations.
Issue:
Amendments to the Police Officers' and Firefighters' Pension Ordinance to include the following changes:
-Amendment stating leave conversions of unused accrued leave shall not be applied to Credited Service.
-Amend the definition of Actuarial Equivalent to define the interest rate as equal to the investment return
assumption set forth in the Actuarial Valuations Report approved by the board.
-Amendment to DROP (Deferred Retirement Option Plan) for investment option net losses to be no less
than zero percent return for Police Officers.
-Add provision to DROP defining it as Not a separate retirement plan.
- Establishment of a Supplemental Benefit Component for Special Benefits; Chapter 175 and 185 Share
Accounts funded solely and entirely by 175 and 185 premium tax monies for each plan year.
See attached chart for benefit changes.
Recommendations
Staff respectfully recommends the Commission adopt the changes as amended in the attached Ordinance for
the City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund.
Attachments:
Draft Ordinance Amendment drafted by legal counsel for the City of Ocoee Municipal Police Officers' and
Firefighters' Retirement Trust Fund Pension Board, the Actuarial Report from Foster and Foster and a
comparison chart of changes (forthcoming).
Financial Impact:
Actuarial Report (forthcoming).
Type of Item: (please mark with an"x")
Public Hearing For Clerk's Dent Use:
x Ordinance First Reading Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
Commission Approval
Discussion 8 Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. n N/A
Reviewed by 0 111 N/A
There are no new finical impacts to the City of Ocoee.
2
Comparison of changes to the City of Ocoee Municipal
Police Officers' and Firefighters Retirement Fund
Police Fire
Hired after Hired after Hired after Hired after
10/01/2015- ordinance 10/01/2015- ordinance
ordinance change ordinance change
change approval change approval
approval approval
Normal retirement/percentage 3.5%AFC 3.25%AFC 3.25%AFC 3.25%AFC
cap per year per year per year per year
91%cap* 81.25%AFC 81.25%AFC 81.25%AFC
Cap Cap Cap
Disability- In Line of Duty Greater of Greater of Greater of Greater of
3.5%AFC 3.25%AFC 3.25%AFC 3.25%AFC
per year or per year or per year or per year or
42%AK 55%AFC 42%AFC 42%AK but
but no more no more
than 82.25% than 82.25%
AFC AFC
Disability- Not in Line of Duty W/10 or W/10 or w/10 or w/ 10 or
more years' more years' more years' more years'
service-3.5% service- service- service -
AFC per 3.25%AFC 3.25%AFC 3.25%AFC
year per year per year per year
91%Cap 81.25%Cap 81.25%Cap 81.25%Cap
Vesting 5 years 7 years 7 years 7 years
* Reflects changes made for employees hired on or after October 1, 2012.
ORDINANCE NO.
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 BY AMENDING
THE DEFINITIONS OF "ACTUARIAL EQUIVALENT",
"CREDITED SERVICE", "FIREFIGHTER" AND
"SPOUSE"; AMENDING SECTION 4, FINANCES AND
FUND MANAGEMENT; AMENDING SECTION 6,
BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING
SECTION 8, DISABILITY; AMENDING SECTION 9,
VESTING; AMENDING SECTION 10, OPTIONAL FORMS
OF BENEFITS; AMENDING SECTION 15, MAXIMUM
PENSION; AMENDING SECTION 26, PRIOR POLICE OR
FIRE SERVICE; AMENDING SECTION 27, DEFERRED
RETIREMENT OPTION PLAN; ADDING SECTION 30,
SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL
BENEFITS; CHAPTERS 175 AND 185 SHARE ACCOUNTS;
PROVIDING FOR SEVERABILITY OF PROVISIONS;
REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH AND PROVIDING AN EFFECTIVE DATE.
SECTION 1. Authority. The City Commission of the City of Ocoee has the authority to
adopt this ordinance pursuant to Article VIII of the Constitution of the State of Florida and
Chapter 166, Florida Statutes.
SECTION 2. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 1, Definitions, by amending the definitions of"Actuarial
Equivalent", "Credited Service", "Firefighter" and"Spouse", to read as follows:
* * *
Actuarial Equivalent means a benefit or amount of equal value, based upon the RP2000
Combined Healthy Unisex Mortality Table(unisex) and an interest rate of eight (8%) per annum
equal to the investment return assumption set forth in the last actuarial valuation report approved
by the Board. This definition may only be amended by the City pursuant to the recommendation
of the Board using assumptions adopted by the Board with the advice of the plan's actuary, such
that actuarial assumptions are not subject to City discretion.
* * *
Credited Service means the total number of years and fractional parts of years of service
as a Police Officer or Firefighter with Member contributions, when required, omitting
intervening years or fractional parts of years when such Member was not employed by the City
as a Police Officer or Firefighter. A Member may voluntarily leave his or her Accumulated
Contribution in the Fund for a period of five (5) years after leaving the employ of the Police or
Fire Department pending the possibility of being reemployed as a Police Officer or Firefighter,
without losing credit for the time that he or she was a Member of the System. If a vested
Member leaves the employ of the Police or Fire Department, his or her Accumulated
Contributions will be returned upon his or her written request. If a Member who is not vested is
not reemployed as a Police Officer or Firefighter with the Police or Fire Department within five
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(5) years,his or her Accumulated Contributions, if one-thousand dollars ($1,000.00) or less, shall
be returned. If a Member who is not vested is not reemployed within five (5) years, his
Accumulated Contributions, if more than one-thousand dollars ($1,000.00), will be returned only
upon the written request of the Member and upon completion of a written election to receive a
cash lump sum or to rollover the lump sum amount on forms designated by the Board. Upon
return of a Member's Accumulated Contributions, all of his or her rights and benefits under the
System are forfeited and terminated. Upon any reemployment, a Police Officer or a Firefighter
shall not receive credit for the years and fractional parts of years of service for which he has
withdrawn his Accumulated Contributions from the Fund, unless the Police Officer or Firefighter
repays into the Fund the contributions he has withdrawn, with interest, as determined by the
Board, within ninety(90)days after his reemployment.
The years or fractional parts of a year that a Member performs "Qualified Military
Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in
the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353)
after separation from employment as a Police Officer or Firefighter with the City to perform
training or service, shall be added to his or her years of Credited Service for all purposes,
including vesting, provided that:
A. The Member is entitled to reemployment under the provisions of USERRA.
B. The Member returns to his or her employment as a Police Officer or Firefighter
within one (1) year from the earlier of the date of his or her military discharge or
his or her release from service, unless otherwise required by USERRA.
C. The maximum credit for military service pursuant to this paragraph shall be five
(5) years.
D. This paragraph is intended to satisfy the minimum requirements of USERRA. To
the extent that this paragraph does not meet the minimum standards of USERRA,
as it may be amended from time to time, the minimum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits (other
than benefit accruals relating to the period of qualified military service) as if the Member had
resumed employment and then died while employed.
Beginning January 1, 2009, to the extent required by Section 414(u)(12) of the Code, an
individual receiving differential wage payments (as defined under Section 3401(h)(2) of the
Code) from an employer shall be treated as employed by that employer, and the differential wage
payment shall be treated as compensation for purposes of applying the limits on annual additions
under Section 415(c) of the Code. This provision shall be applied to all similarly situated
individuals in a reasonably equivalent manner.
Leave conversions of unused accrued paid time off shall not be permitted to be applied
toward the accrual of Credited Service either during each Plan Year of a Member's employment
with the City or in the Plan Year in which the Member terminates employment.
In the event that a Member of this System has also accumulated Credited Service in
another pension system maintained by the City, then such other Credited Service shall be used in
determining vesting as provided for in Section 9, and for determining eligibility for early or
normal retirement. Such other Credited Service will not be considered in determining benefits
under this System. Only his or her Credited Service and Salary under this System on or after his
or her date of membership in this System will be considered for benefit calculation. In addition,
any benefit calculation for a Member of this System who is or becomes eligible for a benefit
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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 Police Officer or Firefighter.
Firefighter means an actively employed full-time person employed by the City, including
his or her initial probationary employment period, who is certified as a Firefighter as a condition
of employment in accordance with the provisions of §633.35 408, Florida Statutes, and whose
duty it is to extinguish fires, to protect life and to protect property. The term includes all
certified, supervisory, and command personnel whose duties include, in whole or in part, the
supervision, training, guidance, and management responsibilities of full-time firefighters, part-
time firefighters, or auxiliary firefighters but does not include part-time firefighters or auxiliary
firefighters.
Spouse means the lawful wife or husband of a Member's or Retiree's spouse under
applicable law at the time benefits become payable.
SECTION 3. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 4, Finance and Fund Management, subsection 6.b.(3), to
read as follows:
6. B. (3) In addition, the Board may, upon recommendation by the Board's
investment consultant, make investments in group trusts meeting
the requirements of Internal Revenue Service Revenue Ruling 81-
100,and Revenue Ruling 2011-1, IRS Notice 2012-6 and Revenue
Ruling 2014-24 or successor rulings or guidance of similar import,
and operated or maintained exclusively for the commingling and
collective investment of monies, provided that the funds in the
group trust consist exclusively of trust assets held under plans
qualified under Section 401(a) of the Code, individual retirement
accounts that are exempt under Section 408(e) of the Code, eligible
governmental plans that meet the requirements of Section 457(b)
of the Code, and governmental plans under 401(a)(24) of the Code.
For this purpose, a trust includes a custodial account or separate
tax favored account maintained by an insurance company that is
treated as a trust under Section 401(f) or under Section 457(g)(3)
of the Code. While any portion of the assets of the Fund are
invested in such a group trust, such group trust is itself adopted as
a part of the System or Plan.
(4) Anv collective or common group trust to which assets of
the fund are transferred pursuant to subsection (3) shall be
adopted by the board as part of the plan by executing
appropriate participation, adoption agreements, and/or trust
agreements with the group trust's trustee.
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(b) The separate account maintained by the group trust for the
plan pursuant to subsection (3) shall not be used for, or
diverted to, any purpose other than for the exclusive benefit
of the members and beneficiaries of the plan.
(c) For purposes of valuation, the value of the separate account
maintained by the group trust for the plan shall be the fair
market value of the portion of the group trust held for the
plan, determined in accordance with generally recognized
valuation procedures.
SECTION 4. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 6, Benefit Amounts and Eligibility, subsections 1,Normal
Retirement Date and 2,Normal Retirement Benefit, to read as follows:
1. Normal Retirement Age and Date.
A Member's normal retirement date shall be the first day of the month coincident
with, or next following the earlier of the completion of twenty five (25) years of Credited
Service, regardless of age, or the attainment of age fifty five (55) and the completion of ten (10)
years of Credited Service. A Member may retire on his or her normal retirement date or on the
first day of any month thereafter, and each Member shall become 100% vested in his or her
accrued benefit on the Member's normal retirement date. Normal retirement under the System
A Member's normal retirement age is the earlier of the completion of twenty-five
(25) years of Credited Service, regardless of age, or the attainment of age fifty-five (55) and the
completion of ten (10) years of Credited Service. Each Member shall become one hundred
percent (100%) vested in his accrued benefit at normal retirement age. A Member's normal
retirement date shall be the first day of the month coincident with or next following the date the
Member retires from the City after attaining normal retirement age.
2. Normal Retirement Benefit.
A. Firefi_liter Members.
(1) A For Member's hired prior to October 1, 2015 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 percent (91%) of
Average Final Compensation of the Member hired on or after
October 1, 2012.
(2) For Member's hired on or after October 1, 2015 a Member retiring
hereunder on or after his or her normal retirement date shall
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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 durin• Member's lifetime ceasin•
upon death, but with one hundred twenty (120) monthly payments
guaranteed in any event. The monthly retirement benefit shall
equal three and one quarter percent (3.25%)of Average Final
Compensation, for each year of Credited Service, up to a
maximum benefit not to exceed eighty-one and one quarter percent
(81.25%)of Average Final Compensation.
B. Police Officer Members.
(I) For Member's hired prior to May 16, 2017 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.
(2) For Member's hired on or after May 16, 2017 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 durin_ Member's lifetime ceasin•
upon death, but with one hundred twenty (120) monthly payments
guaranteed in any event. The monthly retirement benefit shall
equal three and one quarter percent (3.25%)of Average Final
Compensation, for each year of Credited Service, up to a
maximum benefit not to exceed eighty-one and one quarter percent
(81.25%) of Average Final Compensation.
e « e
SECTION 5. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 8, Disability, subsections 1, Disability Benefits In-Line of
Duty and 3, Disability Benefits Not-In-Line of Duty, 7, Workers' Compensation, to read as
follows:
1. Disability Benefits In-Line of Duty.
A. Firefighter Members.
(1) Any Member hired prior to October 1, 2015 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 Pollee
O€fteer-er 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
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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 Memos—hind on or after October I, 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. Notwithstanding the previous
sentence, if a Member is terminated by the City for medical
reasons, the terminated person may apply for a disability benefit if
the application is filed with the Board within thirty (30) days from
the date of termination. If a timely application is received, it shall
be processed and the terminated person shall be eligible to receive
a disability benefit if the Board otherwise determines that he is
totally and permanently disabled as provided for above.
(2) Any Member hired on or after October 1, 2015 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 Firefighter,
which disability was directly caused by the performance of his or
her duty as a Firefighter, shall, upon establishing the same to the
satisfaction of the Board, be entitled to a monthly pension equal to
three and one quarter percent (3.25%) of his or her Average Final
Compensation multiplied by the total years of Credited Service, up
to a maximum benefit not to exceed eighty-one and one quarter
percent (81.25%) of Average Final Compensation of the Member
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. Notwithstanding the previous
sentence, if a Member is terminated by the City for medical
reasons, the terminated person may apply for a disability benefit if
the application is filed with the Board within thirty (30) days from
the date of termination. If a timely application is received, it shall
be processed and the terminated person shall be eligible to receive
a disability benefit if the Board otherwise determines that he is
totally and permanently disabled as provided for above.
B. Police Officer Member�
(I) Any Member hired prior to May 16, 2017 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, which
disability was directly caused by the performance of his or her duty
as a Police Officer, 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
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. Notwithstanding the previous
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sentence, if a Member is terminated by the City for medical
reasons, the terminated person may apply for a disability benefit if
the application is filed with the Board within thirty (30) days from
the date of termination. If a timely application is received, it shall
be processed and the terminated person shall be eligible to receive
a disability benefit if the Board otherwise determines that he is
totally and permanently disabled as provided for above.
(2) Any Member hired on or after May 16, 2017 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, which disability was directly caused by the performance of
his or her duty as a Police Officer, shall, upon establishing the
same to the satisfaction of the Board, be entitled to a monthly
pension equal to three and one quarter percent (3.25%) of his or
her Average Final Compensation multiplied by the total years of
Credited Service, up to a maximum benefit not to exceed eighty-
one and one quarter percent (81.25%) of Average Final
Compensation of the Member, but in any event the minimum
amount paid to the Member shall be fifty-five percent (55%) of
the Average Final Compensation of the Member. Terminated
persons, either vested or non-vested, are not eligible for disability
benefits. Notwithstanding the previous sentence, if a Member is
terminated by the City for medical reasons, the terminated person
may apply for a disability benefit if the application is filed with the
Board within thirty (30) days from the date of termination. If a
timely application is received, it shall be processed and the
terminated person shall be eligible to receive a disability benefit if
the Board otherwise determines that he is totally and permanently
disabled as provided for above.
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3. Disability Benefits Not-In-Line of Duty.
A. Firefi titer Members.
(1) Any Member hired prior to October 1, 2015 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 benefitsxeept
that those terminated by the City for medical r asons may apply
for a disability within thirty (30) days after termination.
Notwithstanding the previous sentence, if a Member is terminated
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by the City for medical reasons, the terminated person may apply
for a disability benefit if the application is filed with the Board
within thirty (30) days from the date of termination. If a timely
application is received, it shall be processed and the terminated
person shall be eligible to receive a disability benefit if the Board
otherwise determines that he is totally and permanently disabled as
provided for above.
(2) Any Member hired on or after October 1, 2015 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 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 quarter percent (3.25%) of his or
her Average Final Compensation multiplied by the total years of
Credited Service, up to a maximum benefit not to exceed eighty-
one and one quarter percent (81.25%) of Average Final
Compensation of the Member. Terminated persons, either vested
or non-vested, are not eligible for disability benefits.
Notwithstanding the previous sentence, if a Member is terminated
by the City for medical reasons, the terminated person may apply
for a disability benefit if the application is filed with the Board
within thirty (30) days from the date of termination. If a timely
application is received, it shall be processed and the terminated
person shall be eligible to receive a disability benefit if the Board
otherwise determines that he is totally and permanently disabled as
provided for above.
B. Police Officer Members
(1) Any Member hired prior to May 16, 2017 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, which disability is
not directly caused by the performance of his or her duties as a
Police Officer 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. Notwithstanding the previous sentence, if a
Member is terminated by the City for medical reasons, the
terminated person may apply for a disability benefit if the
application is filed with the Board within thirty (30) days from the
date of termination. If a timely application is received, it shall be
processed and the terminated person shall be eligible to receive a
disability benefit if the Board otherwise determines that he is
totally and permanently disabled as provided for above.
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(2) Any Member hired on or after May 16, 2017 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, which disability is
not directly caused by the performance of his or her duties as a
Police Officer shall, upon establishing the same to the satisfaction
of the Board, be entitled to a monthly pension equal to three and
one quarter percent (3.25%) of his or her Average Final
Compensation multiplied by the total years of Credited Service,up
to a maximum benefit not to exceed eighty-one and one quarter
percent (81.25%) of Average Final Compensation of the Member
but in any event the minimum amount paid to the Member shall be
fifty-five percent (55%) of the Average Final Compensation of the
Member. Terminated persons, either vested or non-vested, are not
eligible for disability benefits. Notwithstanding the previous
sentence, if a Member is terminated by the City for medical
reasons,the terminated person may apply for a disability benefit if
the application is filed with the Board within thirty (30) days from
the date of termination. If a timely application is received, it shall
be processed and the terminated person shall be eligible to receive
a disability benefit if the Board otherwise determines that he is
totally and permanently disabled as provided for above.
♦ # k
7. Workers' Compensation.
When a Retiree is receiving a disability pension and workers' compensation
benefits pursuant to Florida Statute Chapter 440, for the same disability, and the total monthly
benefits received from both exceed one hundred percent (100%) of the Member's average
monthly wage, as defined in Chapter 440, Florida Statutes, the disability pension benefit shall be
reduced so that the total monthly amount received by the Retiree does not exceed one hundred
percent (100%) of such average monthly wage. The amount of any lump sum workers'
compensation payment shall be converted to an equivalent monthly benefit payable for ten (10)
Years Certain by dividing the lump sum amount by 83.9692. Notwithstanding the foregoing, in
no event shall the disability pension benefit be reduced below the greater of forty-two percent
(42%) of Average Final Compensation and two and three quarters percent (2.75%) of Average
Final Compensation times years of Credited Service.
SECTION 6. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 9,to read as follows:
SECTION 9. VESTING.
If a Member terminates his or her employment with the Police or Fire Department, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. For Firefighter Members hired prior to October 1 2015.
1-A. If the Member has less than five (5) years Credited Service upon
termination, the Member shall be entitled to a refund of his or her
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Accumulated Contributions or the Member may leave it deposited with the
Fund.
2 B. If the Member has five (5) or more years of Credited Service upon
termination, the Member shall be entitled to a monthly retirement benefit,
determined in the same manner as for normal or early retirement and
based upon the Member's Credited Service, Average Final Compensation
and the benefit accrual rate as of the date of termination,payable to him or
her commencing at Member's otherwise normal or early retirement date,
determined based upon his or her actual year of Credited Service, provided
he or she does not elect to withdraw his or her Accumulated Contributions
and provided Member survives to his or her otherwise normal or early
retirement date. If the Member does not withdraw his or her Accumulated
Contributions and does not survive to his or her otherwise normal or early
retirement date, his or her designated Beneficiary shall be entitled to a
benefit as provided herein for a deceased Member, vested or eligible for
retirement under Pre-Retirement Death.
2. For Firefighter Members hired on or after October 1. 2015.
A. If the Member has less than seven (7) years Credited Service upon
termination, the Member shall be entitled to a refund of his or her
Accumulated Contributions or the Member may leave it deposited with the
Fund.
B. If the Member has seven (7) or more years of Credited Service upon
termination, the Member shall be entitled to a monthly retirement benefit
determined in the same manner as for normal or early retirement and
based upon the Member's Credited Service, Average Final Compensation
and the benefit accrual rate as of the date of termination, payable to him or
her commencing at Member's otherwise normal or early retirement date
determined based upon his or her actual year of Credited Service, provided
he or she does not elect to withdraw his or her Accumulated Contributions
and provided Member survives to his or her otherwise normal or early
retirement date. If the Member does not withdraw his or her Accumulated
Contributions and does not survive to his or her otherwise normal or early
retirement date, his or her designated Beneficiary shall be entitled to a
benefit as provided herein for a deceased Member, vested or eligible for
retirement under Pre-Retirement Death.
3. For Police Officer Members hired ori,r t. Ma 16 2017.
A. If the Member has less than five (5) years Credited Service upon
termination, the Member shall be entitled to a refund of his or her
Accumulated Contributions or the Member may leave it deposited with the
Fund.
B. If the Member has five (5) or more years of Credited Service upon
termination, the Member shall be entitled to a monthly retirement benefit
determined in the same manner as for normal or early retirement and
based upon the Member's Credited Service, Average Final Compensation
and the benefit accrual rate as of the date of termination, payable to him or
her commencing at Member's otherwise normal or early retirement date
determined based upon his or her actual year of Credited Service,provided
he or she does not elect to withdraw his or her Accumulated Contributions
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and provided Member survives to his or her otherwise normal or early
retirement date. If the Member does not withdraw his or her Accumulated
Contributions and does not survive to his or her otherwise normal or early
retirement date, his or her designated Beneficiary shall be entitled to a
benefit as provided herein for a deceased Member, vested or eligible for
retirement under Pre-Retirement Death.
4. For Police Officers Membershired on or after Mav 16. 2017
A. If the Member has less than seven (7) years Credited Service upon
termination, the Member shall be entitled to a refund of his or her
Accumulated Contributions or the Member may leave it deposited with the
Fund.
B. If the Member has seven (7) or more years of Credited Service upon
termination, the Member shall be entitled to a monthly retirement benefit
determined in the same manner as for normal or early retirement and
based upon the Member's Credited Service, Average Final Compensation
and the benefit accrual rate as of the date of termination, payable to him or
her commencing at Member's otherwise normal or early retirement date.
determined based upon his or her actual year of Credited Service,provided
he or she does not elect to withdraw his or her Accumulated Contributions
and provided Member survives to his or her otherwise normal or early
retirement date. If the Member does not withdraw his or her Accumulated
Contributions and does not survive to his or her otherwise normal or early
retirement date, his or her designated Beneficiary shall be entitled to a
benefit as provided herein for a deceased Member, vested or eligible for
retirement under Pre-Retirement Death.
SECTION 7. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 10, Optional Forms of Benefits, subsection 1.D., to read
as follows:
> r +
1. D. A member may elect a percentage of benefit in a lump sum as follows:
(1) Five (5) percent of the total actuarial equivalent value of the
benefit paid as a lump sum benefit with the remaining ninety-five
(95) percent paid under the normal form or as per A., B. or C.
above.
(2) Ten (10) percent of the total actuarial equivalent value of the
benefit paid as a lump sum benefit with the remaining ninety (90)
percent paid under the normal form or as per A., B. or C. above.
(3) Fifteen (15) percent of the total actuarial equivalent value of the
benefit paid as a lump; sum benefit with the remaining eighty-five
(85) percent paid under the normal form or as per A., B. or C.
above.
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(4) Twenty (20) percent of the total actuarial equivalent value of the
benefit paid as a lump sum benefit with the remaining eighty (80)
percent paid under the normal form or as per A., B. or C. above.
* * *
SECTION 8. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 15, Maximum Pension, subsections 6, Less than Ten (10)
Years of Participation or Service, 12, Additional Limitation on Pension Benefits and adding
subsection Effect of Direct Rollover on 415(b) Limit, to read as follows:
* * *
6. Less than Ten(10) Years of Participation or Servicc.
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 participation shall be the
amount determined under subsection l of this Section multiplied by a fraction, the numerator of
which is the number of the Member's years of Credited Service participation and the
denominator of which is ten (10). The reduction provided by this subsection cannot reduce the
maximum benefit below 10% of the limit determined without regard to this subsection. The
reduction provided for in this subsection shall not be applicable to pre-retirement disability
benefits paid pursuant to Section 8., or pre-retirement death benefits paid pursuant to Section 7.
* * *
12. B. No Member of the System shall be allowed to receive a retirement benefit
or pension which is in part or in whole based upon any service with
respect to which the Member is already receiving, or will receive in the
future, a retirement benefit or pension from a different employer's
retirement system or plan. This restriction does not apply to social
security benefits or federal benefits under Chapter 671223, Title 10, U.S.
Code.
13. Effect of Direct Rollover on 415(b Limit.
If the plan accepts a direct rollover of an employee's or former employee's benefit
from a defined contribution plan qualified under Code Section 401(a)which is maintained by the
employer, any annuity resulting from the rollover amount that is determined using a more
favorable actuarial basis than required under Code Section 417(e) shall be included in the annual
benefit for purposes of the limit under Code Section 415(b).
SECTION 9. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 26, Prior Police or Fire Service, subsection 5, to read as
follows:
* * *
5. In no event, however, may Credited Service be purchased pursuant to this Section
for prior service with any other municipal, county or special district fire department or special
law enforcement department, 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 Section 15, subsection
4-1-12.B.
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SECTION 10. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 27, Deferred Retirement Option Plan, to read as follows:
SECTION 27. DEFERRED RETIREMENT OPTION PLAN.
1. Definitions.
As used in this Section 27, the following definitions apply:"
A. "DROP" -- The Ocoee Police Officers' and Firefighters' Deferred
Retirement Option Plan.
B. "DROP Account" -- The account established for each DROP participant
under subsection 3.
C. "Total Return of the Assets" -- For purposes of calculating earnings on a
Member's DROP Account pursuant to subsection 3.B.(2)(b)., for each
fiscal year quarter, the percentage increase (or decrease) in the interest and
dividends earned on investments, including realized and unrealized gains
(or losses), of the total Plan assets.
2. Participation.
A. Eligibility to Participate.
In lieu of terminating his employment as a Police Officer or Firefighter,
any Member who is eligible for normal retirement under the System may
elect to defer receipt of such service retirement pension and to participate
in the DROP.
B. 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
beginning on the date which the Member first becomes eligible for normal
retirement. An election to participate in the DROP shall constitute an
irrevocable election to resign from the service of the City at the time of
election into the DROP. A Member may participate only once.
D. Termination of Participation.
(1) A Member participating in the DROP shall cease participating in
the DROP by:
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(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
(c) terminating his employment as a Police Officer or
Firefighter.
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.
(2) Upon 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.
(3) 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 DROP Participation on the System.
(1) 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. For purposes of determining
the accrued benefit, the Member's Salary for the purposes of
calculating his Average Final Compensation shall include an
amount equal to any lump sum payments which would have been
paid to the Member and included as Salary as defined herein, had
the Member retired under normal retirement and not elected DROP
participation. Member contributions attributable to any lump sums
used in the benefit calculation and not actually received by the
Member shall be deducted from the first payments to the Member's
DROP Account. The Member shall not accrue any additional
Credited Service or any additional benefits under the System
(except for any supplemental benefit payable to DROP participants
or any additional benefits provided under any cost-of-living
adjustment for Retirees in the System) while he is a 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, except as
provided for in Section 29.
(2) No amounts shall be paid to a Member from the System while the
Member is a participant in the DROP. Unless otherwise specified
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
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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.
3. Funding.
A. 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 3.11, and earnings or interest on
those amounts.
B. Transfers From Retirement System.
(1) 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 . - . .. - with either:
(a) For Members who enter the DROP prior to October 1,
2012, interest at an effective rate of six and one-half
percent (6.5%) per annum compounded monthly
determined on the last business day of the prior month's
ending balance and credited to the Member's DROP
Account as of such date (to be applicable to all current and
future DROP participants);
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 determined on the last
business day of the prior month's ending balance and
credited to the Member's DROP Account as of such date
(to be applicable to all current and future DROP
participants); or
(b) Earnings, to be credited or debited to the Member's DROP
Account, determined as of the last business day of each
fiscal year quarter and debited or credited as of such date
determined as follows:
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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 but not less than zero percent (0%) for
Police Officer Member's. "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.
For purposes of calculating earnings on a Member's
DROP Account pursuant to this subsection 3.B.(2)(b).
brokerage commissions, transaction costs, and management
fees shall be determined for each quarter by the investment
consultant pursuant to contracts with fund managers as
reported in the custodial statement. The investment
consultant shall report these quarterly contractual fees to
the Board. The investment consultant shall also report the
net investment return for each manager and the net
investment return for the total Plan assets.
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.
(3) A Member's DROP Account shall only be credited or debited with
earnings or interest and monthly benefits while the Member is a
participant in the DROP 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 Departments. A Member employed by the City Fire and
Police Departments after five (5) years of DROP participation will
still not be eligible for pre-retirement death or disability benefits,
nor will he accrue additional Credited Service, except as provided
for in Section 29.
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 of this subsection 4. upon his termination of
employment as a Police Officer or Firefighter. Except as provided in
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subsection 4.D., no amounts shall he paid to a Member from the DROP
prior to his termination of employment as a Police Officer or Firefighter.
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. F. Elections under
this paragraph shall be in writing and shall be made in such time or
manner as the Board shall determine.
(2) If a Member dies before his 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.
Distribution of the amount in a Member's DROP account will not be made
unless the Member completes a written request for distribution and a
written election, on forms designated by the Board, to either receive a cash
lump sum or a rollover of the lump sum amount.
D. Proof of Death and Right of Beneficiary 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.
E. Distribution Limitation.
Notwithstanding any other provision of this subsection 4., all distributions
from the DROP shall conform to the "Minimum Distribution of Benefits"
provisions as provided for herein.
F. Direct Rollover of Certain Distributions.
This subsection applies to distributions made on or after January I, 2002.
Notwithstanding any provision of the DROP to the contrary, a distributee
may elect to have any portion of an eligible rollover distribution paid in a
direct rollover as otherwise provided under the System in Section 25,
herein incorporated by reference.
5. Administration of DROP.
A. Board Administers the DROP.
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The general administration of the DROP, the responsibility for carrying
out the provisions of the DROP and the responsibility of overseeing the
investment of the DROP's assets shall be placed in the Board. The
members of the Board may appoint from their number such
subcommittees with such powers as they shall determine; may adopt such
administrative procedures and regulations as they deem desirable for the
conduct of their affairs; may authorize one or more of their number or any
agent to execute or deliver any instrument or make any payment on their
behalf; may retain counsel, employ agents and provide for such clerical,
accounting, actuarial and consulting services as they may require in
carrying out the provisions of the DROP; and may allocate among
themselves or delegate to other persons all or such portion of their duties
under the DROP, other than those granted to them as Trustee under any
trust agreement adopted for use in implementing the DROP, as they, in
their sole discretion, shall decide. A Trustee shall not vote on any
question relating exclusively to himself.
B. Individual Accounts, Records and Reports.
The Board shall maintain, 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, 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.
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 under the DROP and the date on which any individual
ceases to be a participant in the DROP). The determination of the Board
as to the interpretation of the DROP or its determination of any disputed
questions shall be conclusive and final to the extent permitted by
applicable law. The Board shall also oversee the investment of the
DROP'S assets.
D. Limitation of Liability.
(1) The Trustees shall not incur any liability individually or on behalf
of any other individuals for any act or failure to act, made in good
faith in relation to the DROP or the funds of the DROP.
(2) Neither the Board nor any Trustee of the Board shall be
responsible for any reports furnished by any expert retained or
employed by the Board, but they shall be entitled to rely thereon as
well as on certificates furnished by an accountant or an actuary,
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and on all opinions of counsel. The Board shall be fully protected
with respect to any action taken or suffered by it in good faith in
reliance upon such expert, accountant, actuary or counsel, and all
actions taken or suffered in such reliance shall be conclusive upon
any person with any interest in the DROP.
6. General Provisions.
A. The DROP Is Not a Separate Retirement Plan.
Instead, it is a program under which a Member who is eligible for normal
retirement under the System may elect to accrue future retirement benefits
in the manner provided in this section 27 for the remainder of his
employment, rather than in the normal manner provided under the plan.
Upon termination of employment, a Member is entitled to a lump sum
distribution of his or her DROP Account balance or may elect a rollover.
The DROP Account distribution is in addition to the Member's monthly
benefit.
B. Notional Account.
The DROP Account established for such a Member is a notional account
used only for the purpose of calculation of the DROP distribution amount.
It is not a separate account in the System. There is no change in the
System's assets, and there is no distribution available to the Member until
the Member's termination from the DROP. The Member has no control
over the investment of the DROP Account.
C. No Employer Discretion.
The DROP benefit is determined pursuant to a specific formula which
does not involve employer discretion.
D. IRC Limit.
The DROP Account distribution, along with other benefits payable from
the System, is subject to limitation under Internal Revenue Code Section
415(6).
A E. 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 F. 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,
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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 G. 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.
I3 H. 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 of the DROP.
E I. 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 determines after due deliberation
that such action is justified in that it improves the administration of
the DROP. In the event of a conflict between the provisions for
making an election, notification or designation set forth in the
DROP and such new administrative procedures, those new
administrative procedures shall prevail.
(2) Each Member or Retiree who has a DROP Account shall be
responsible for furnishing the Board with his current address and
any subsequent changes in his address. Any notice required to be
given to a Member or Retiree hereunder shall he 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.
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F J. 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 K. Construction.
(1) The DROP shall be construed, regulated and administered under
the laws of Florida, except where other applicable law controls.
(2) The titles and headings of the subsections in this Section 27 are for
convenience only. In the case of ambiguity or inconsistency, the
text rather than the titles or headings shall control.
11 L. Forfeiture of Retirement Benefits.
Nothing in this Section shall be construed to remove DROP participants
from the scope of Section 22 above or Section 112.3173, Florida Statutes.
DROP participants who commit a specified offense or whose employment
is terminated as described in Section 22 while employed, will be subject to
forfeiture of all retirement benefits, including DROP benefits, pursuant to
the above provisions of law.
1 M. Effect of DROP Participation on Employment.
Participation in the DROP is not a guarantee of employment and DROP
participants shall be subject to the same employment standards and
policies that are applicable to employees who are not DROP participants.
J 7. BAC-DROP.
In lieu of participation in the DROP, for Members who elect on or after October
1, 2012 to participate in an actuarially equivalent BAC-DROP to a date of the
Member's choosing, provided that the date is not further back than the Member's
normal retirement date. The total BAC-DROP period shall not exceed sixty (60)
months and shall provide an immediate partial lump sum distribution, payable to
the Member's DROP Account. The lump sum shall be the accrued benefit,
determined as if the Member had entered the DROP retroactively, as described
above, accumulated with interest at the annual fixed rate of 2%. The Member
may choose an actuarially equivalent form of benefit at the time of BAC-DROP
entry, as described in Section 10, Optional Forms of Benefits. Member
contributions shall be returned for the period of the BAC-DROP participation. A
Member electing the BAC-DROP shall terminate employment not later than the
first day of the month following his election to participate in the BAC-DROP.
The Board's authority and power for administration of the BAC-DROP shall be
the same as those provided for in the DROP.
SECTION 11. That the City of Ocoee Municipal Police Officers' and Firefighters'
Retirement Trust Fund adopted by Ordinance No. 2010-019, as subsequently amended, is hereby
further amended by amending Section 30, Supplemental Benefit Component for Special
Benefits; Chapters 175 and 185 Share Accounts,to read as follows:
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SECTION 30. SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAI
ENEFITS: CHAPTERS 175 AND 185 SHARE ACCOUNTS.
There is hereby established an additional plan component to provide special benefits in
the form of a supplemental retirement, termination, death and disability benefits to be in addition
to the benefits provided for in the previous Sections of this Plan, such benefit to be funded solely
and entirely by Chapters 175 and 185, Florida Statutes, premium tax monies for each plan year
which are allocated to this supplemental component as provided for in Section 175.351 and
185.35, Florida Statutes. Amounts allocated to this supplemental component ("Share Plan")
shall be further allocated to the members and DROP participants in a manner to be agreed upon.
SECTION 11. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 12. 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 13. Effective Date. This ordinance shall take effect upon second reading and
adoption.
PASSED AND ADOPTED this_day of , 2017.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
By:
Melanie Sibbitt, City Clerk Rusty Johnson, Mayor
(SEAL) ADVERTISED ,2017
READ FIRST TIME , 2017
READ SECOND TIME AND ADOPTED
, 2017
UNDER AGENDA ITEM NO.
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE,FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day of , 2017.
CHRISTIANSEN& DEHNER,P.A.
By:
Special Counsel
ksh\otos\004-07-I'Lord
-22-