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HomeMy WebLinkAbout2017-032 Police Officers' and Firefighters' Retirement Trust Fund ORDINANCE NO. 2017-032 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 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 30, Supplemental Benefit Component for Special Benefits; Chapters 175 and 185 Share Accounts, to read as follows: SECTION 30. SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL BENEFITS; CHAPTERS 175 AND 185 SHARE ACCOUNTS. FIREFIGHTERS. There is hereby established an additional plan component, for Firefighter Members, 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. POLICE OFFICERS. There is also hereby established an additional plan component, for Police Officer Members, 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 Chapter 185, Florida Statutes, premium tax monies for each plan year which are allocated to this supplemental component as provided for in Section 185.35, Florida Statutes. Amounts allocated to this supplemental component ("Share Plan") shall be further allocated to the members and DROP participants as follows: 1. Individual Member Share Accounts. The Board shall create individual "Member Share Accounts" for all actively employed Police Officer plan Members and Police Officer DROP participants and maintain appropriate books and records showing the respective interest of each Member or DROP participant hereunder. Each Member or DROP participant shall have a Member Share Account for his share of the Chaster 185 Florida Statutes tax revenues described above forfeitures and income and expense adjustments relating thereto. The Board shall maintain separate Member Share Accounts, however, the maintenance of separate accounts is for accounting purposes only and a segregation of the assets of the trust fund to each account shall not be required or permitted. -1- 2. Share Account Funding. A. Individual Member Share Accounts shall be established as of September 30, 2017 for all Members and DROP participants who were actively employed as of October 1,2016. Individual Member Share Accounts shall be credited with an allocation as provided for in the following subsection 3. of any premium tax monies which have been allocated to the share plan for that Plan Year,beginning with the Plan Year ending September 30, 2017. B. Any forfeitures as provided in subsection 4., shall be used as part of future allocations to the individual Member Share Accounts in accordance with the formula set forth in subsection 3.A. 3. Allocation of Monies to Share Accounts. A. Allocation of Chapter 185 Contributions, Llj Effective as of September 30, 2017, the amount of any premium tax monies allocated to the share plan,including the initial allocation set forth in paragraph(2)below,shall be allocated to individual Member Share Accounts as provided for in this subsection. Members retiring (or entering DROP) on or after October 1, 2016 and prior to September 30, 2017 shall receive an allocation. In addition, all premium tax monies allocated to the Share Plan in any subsequent Plan Year shall also be allocated as provided for in this subsection. Available premium tax monies shall be allocated to individual Member Share Accounts at the end of each Plan Year on September 30 (a"valuation date"). (2) Initial Allocation. Accumulated premium tax revenues in the amount of $193,673.55 shall be allocated in the initial allocation on September 30, 2017. Only members and DROP participants with at least one year of credited service on May 31, 2017 shall receive a share of this initial allocation of accumulated premium tax revenues. The amount to be allocated to the share account of each member or DROP participant who is eligible for an allocation shall be an amount equal to a fraction of the total amount, the numerator of which shall be the individuals total full months of Credited Service as of May 31, 2017, and the denominator of which shall be the sum of the total months of Credited Service as of May 31,2017, of all individuals to whom allocations are being made. For purposes of this paragraph, Credited Service shall not include purchased service for pre- employment military service or prior fire service with another employer. 01 On each subsequent valuation date after September 30, 2017,each current actively employed Member of the plan not participating in the DROP,each DROP participant and each Retiree who retires or DROP participant who has terminated DROP participation in the Plan Year ending on the valuation date (including each disability retiree), or Beneficiary of a deceased Member(not including terminated vested persons)who is otherwise eligible for an allocation as of the valuation date shall receive a share allocation based on an allocation method to be determined. -2- 4) Re-employed Retirees shall be deemed new employees and shall receive an allocation based solely on the Credited Service in the reemployment period. B. Allocation of Investment Gains and Losses. On each valuation date, each individual Member Share Account shall be adjusted to reflect the net earnings or losses resulting from investments during the year. The net earnings or losses allocated to the individual Member Share Accounts shall be the same percentage which is earned or lost by the total plan investments, including realized and unrealized gains or losses,net ofbrokerage commissions,transaction costs and management fees. Net earnings or losses are determined as of the last business day of the fiscal year,which is the valuation date,and are debited or credited as of such date. For purposes of calculating net earnings or losses on a Member's share account pursuant to this subsection, brokerage commissions, transaction costs, and management fees for the immediately preceding fiscal year shall be determined for each year by the investment consultant pursuant to contracts with fund managers as reported in the custodial statement. The investment consultant shall report these annual 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. C. Allocation of Costs, Fees and Expenses. On each valuation date, each individual Member Share Account shall be adjusted to allocate its pro rata share of the costs, fees and expenses of administration of the Share Plan. These fees shall be allocated to each individual Member Share Account on a proportionate basis taking the costs, fees and expenses of administration of the Share Plan as a whole multiplied by a fraction, the numerator of which is the total assets in each individual Member Share Account(after adding the annual investment gain or loss)and the denominator of which is the total assets of the fund as a whole as of the same date. D. No Right to Allocation, The fact of allocation or credit of an allocation to a Member's Share Account by the Board shall not vest in any Member, any right, title, or interest in the assets of the trust or in the Chapter 185,Florida Statutes tax revenues exce.t at the time or times, to the extent, and suslect to t e terms and conditions provided in this Section. E. Members and DROP participants shall be provided annual statements setting forth their share account balance as of the end of the Plan Year. 4. Forfeitures. Any Member who has less than five (5) years of Credited Service and who is not otherwise eligible for payment of benefits after termination of employment with the City as provided for in subsection 5. shall forfeit his individual Member Share Account. Forfeited amounts shall be included and used as part of the Chapter 185 tax revenues for future allocations to individual -3- Member Share Accounts on each valuation date in accordance with the formula set forth in subsection 3.A. 5. Eligibility For Benefits, Any Member(or his Beneficiary)who terminates employment as a Police Officer or Firefighter with the City or who dies,upon application filed with the Board, shall be entitled to be paid the value of his individual Member Share Account, subject to the following criteria: A. Retirement Benefit. (1) A Member shall be entitled to one hundred percent (100%) of the value of his share account upon normal or early Retirement pursuant to Section 6,or if the Member enters the DROP,upon termination of employment. () Such payment shall be made as provided in subsection 6. B. Termination Benefit. W In the event that a Member's employment as a Police Officer or Firefighter is terminated by reason other than retirement, death or disability,he shall be entitled to receive the value of his share account only if he is vested in accordance with Section 9. (2) Such payment shall be made as provided in subsection 6. C. Disability Benefit (1) In the event that a Member is determined to be eligible for either an in-line of duty disability benefit pursuant to Section 8, subsection 1. or a not-in-line of duty disability benefit pursuant to Section 8, subsection 3., he shall be entitled to one hundred percent(100%) of the value of his share account. gj Such payment shall be made as provided in subsection 6. D. Death Benefit. (1) In the event that a Member or DROP participant dies while actively employed as a Police Officer or Firefighter, one hundred percent (100%)of the value of his Member Share Account shall be paid to his designated Beneficiary as provided in Section 7. Such payment shall be made as provided in subsection 6. 6. Payment of Benefits. If a Member or DROP participant terminates employment for any reason or dies and he or his Beneficiary is otherwise entitled to receive the balance in the Member's share account,the Member's share account shall be valued by the plan's actuary on the next valuation date as provided for in subsection 3. above, following termination of employment. Payment of the calculated share account balance shall be payable as soon as administratively practicable following the valuation date, but not later than one hundred fifty(150)days following the valuation date and shall be paid in one lump sum payment. No optional forms of payments shall be permitted. -4- 7. Benefits Not Guaranteed. All benefits payable under this Section 30 shall be paid only from the assets accounted for in individual Member Share Accounts. Neither the City nor the Board shall have any duty or liability to furnish any additional funds, securities or other assets to fund share account benefits. Neither the Board nor any Trustee shall be liable for the making,retention,or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Member Share Account balances,except due to his or its own negligence,willful misconduct or lack of good faith. All investments shall be made by the Board subject to the restrictions otherwise applicable to fund investments. 8. Notional Account. - � k The Member Share Account is a notional account, used only for the purpose of calculation of the share 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 or DROP participant until the Member's or DROP participant's termination from employment. The Member or DROP participant has no control over the investment of the share account. 9. No Employer Discretion. The share account benefit is determined pursuant to a specific formula which does not involve employer discretion. 10. Maximum Additions. Notwithstanding any other provision of this Section, annual additions under this Section shall not exceed the limitations of Section 415(c)of the Code pursuant to the provisions of Section 15, subsection 11. 11. IRC Limit. The share account distribution, along with other benefits payable from the System, is subject to limitation under Internal Revenue Code Section 415(b). 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 day of J i�iy1 f9&' , 2017. -5- APPROVED: ATTEST: CITY OF OCOEE,FLORIDA lAk./EBy: j , .`� Melanie Si bitt, City Clerk Rusty Joh,s i `ayor (SEAL) ADVERTISEDpy��' 0 , 2017 READ FIRST T ME pytm b€r 7 ,2017 READ SECOND TIME AND ADOPTED e-len-,? &r 5 , 2017 DER AGENDA ITEM NO. / FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE,FLORIDA APPROVED AS TO FM AND LEGALITY THIS S- day of DEC—. , 2017. SHUFFIELD,LOWMAN & WILSON By: •ity Attorn- ksh\ocoee\pf\07-28-17.ord -6-