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HomeMy WebLinkAboutOrdinance 96-19 ORDINANCE NO. 2Q:l2 AN ORDINANCE OF THE CITY OF OCOER, FLORIDA, RELATING TO THE CITY OF OCOER MUNICIPAL, GENERAL EMPLOYEES' RETIREMENT TRUST FUND, AMENDING AND RESTATING IN FULL, ORDINANCE NUMBER 91-08, AS SUBSEQUENTLY AMENDED BY ORDINANCES NUMBER 91-27, 94-05, 94-08, 95-21 AND ORDINANCE NUMBER 95-29; PROVIDING FOR DEFINITIONS; PROVIDING FOR MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENT; PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND ELIGmILITY; PROVIDING FOR PRE- RETIREMENT DEATH BENEFITS; PROVIDING FOR VESTING OF BENEFITS; PROVIDING OPTIONAL FORMS OF BENEFITS; PROVIDING FOR BENEFICIARIES; PROVIDING CLAIMS PROCEDURES; PROVIDING FOR A ROSTER OF RETIREES; PROVIDING FOR A BOARD ATTORNEY AND PROFESSIONALS; PROVIDING FOR A MAXIMUM PENSION LIMITATION; PROVIDING FOR DISTRIBUTION OF BENEFITS; PROVIDING MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF THE SYSTEM; PROVIDING FOR EXEMYI10N FROM EXECUTION AND NON-ASSIGNABILITY; PROVIDING FOR PENSION VALIDITY; PROVIDING FOR FORFEITURE OF PENSION UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR INDEMNIFICATION AND DEFEi~SE OF CLAIMS; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR ABSENCES PURSUANT TO THE FAMILY AND MEDICAL LEA VE ACT; PROVIDING FOR DIRECT TRANSFERS OF ELIGmLE ROLLOVER DISTRmUTIONS; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE; 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: The present ordinances number 91-08, 91-27, 94-05, 94-08, 95-21 and 95-29, adopted by the City Commission of the City of Ocoee, are hereby amended and restated in full as set forth in THE CITY OF OCOER MUNICIPAL GENERAL EMPLOYEES' RE~IENT TRUST FUND, a copy of which is attached hereto, and by this reference made a part hereof. 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 .All ordinances or parts of ordinances in conflict herewith are hereby repealed.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 effect the remaining portions hereof. SECTION 5. Effective Date. This ordinance shall take effect upon second reading and adoption. PASSED AND ADOPTED this ~ ~ day of ~t..:1TJ(!,eL , 1996. ATTEST: APPROVED: CITY OF OCOEE, FLORIDA \ BY;;S$~U S. Scott Vandergrift, May r. (SEAL) ADVERTISED SePtember 19 , 1996 READ FIRST TIMESePt. 17 ,1996 READ SECOND TIME AND ADOPTED a,,'rtJl!cL ;1. , 1996 FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA APPROVED AS TO FORM ~ LEGALITY THIS a. day of OC/~ V, 1996. CHRISTIANSEN & DEHNER, P .A. Special Counsel By: if~~.ki ( APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON {) L TO A fr,e -< , 1996 UNDER AGENDA ITEM NO. ""S[ ~ ~. dm\ococe\gen\8-29-96g.ord Page 2 CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FCJf~m SECTION 1. DEFINITIONS. 1. As used herein, unless otherwise defined or required by the conoox1J:, the following words and phrases shall have the meaning indicated: Accumulated Contributions means a Member's own contributions without interest. For those Members who purchase Credited Service with interest or at no cost to th~ Sysrem~ any payment representing the amount attributable to Member contributions b~d OlITi the applicable Member contribution rate, interest and any required actuarially calculated payments for the purchase of such Credited Service, shall be included in Accumulated Contributions. Act means the Employee Retirement Income Security Act of 1974 (pL. 93-406) and any regulations issued thereunder by the Department of Labor and the Internal Revenue Service, as that Statute and these regulations shall be amended. Actuarial Equivalent means a benefit or amount of equal value, based upon the 1983 Group Annuity Mortality Table and an interest rate of eight (8 %) per annum. Average Final Compensation means one-twelfth (1/12) of the average Salary of the five (5) best years of the last ten (10) years of Credited Service prior to Retirement, termina- tion, or death. A year shall be twelve (12) consecutive months. Beneficiary means the person or persons entitled to receive benefits hereunder at the death of a Member who has or have been designated in writing by the Member and filed with the Board. If no such designation is in effect, or if no person so designated is living, at the time of death of the Member, the Beneficiary shall be the estate of the Member. Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as trustees of the Fund. City means City of Ocoee, Florida. Code means the Internal Revenue Code of 1986, as amended from time to time. Credited Service means the total number of years and fractional parts of years of service as a General Employee with Member contributions, when required, omitting intervening years or fractional parts of years when such Member was not employed by the City as a General Employee. A Member may voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the employ of the City pending the possibility of being rehired without losing credit for the time that he or she was a Member of the System. If the Member is not reemployed within five (5) years, then the Accumulated Contributions will be returned upon written request of the Member. Upon return of his or her Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and terminated. In the event that a Member of this System has also accumulated credited service in another pension system maintained by the .City, or has a period or periods of previous emJ?loyment as a General Employee, but is not eligible to receive Credited Service for this penod or periods of previous employment for benefit calculation purposes, then such other credited service shall be used in detennining vesting as provided for in Section 8, and for determining eligibility for early or nonnal retirement. Such other credited service will not Page 3 be considered in determining benefits under this System. Unless otherwise prmJjidi~rdl h~re;DJ, only his or her Credited Service and Salary under this System on or after his or heIr Jate,(1t 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 foX' ~ h(,~tlCJit from this System after he or she has become a member of another pension system rmW.lt9JirL(;;,Q. by the City, shall be based upon the Member's Average Final Compensation, Service and benefit accrual rate as of the date the Member ceases to be a General Employe;(~, The years or fractional parts of years that a General Employee previously served a~ a General Employee with the City of Ocoee durin~ a period of preVIOUS employment and for which period Accumulated Contributions were Withdrawn from the Fund, or for a ~riod of previous employment for which Credited Service has not been otherwise received for benefit calculation purposes, shall be added to his or her years of Credited Service provided that: 1. The General Employee contributes to the Fund the sum that he or she would have contributed had he or she been a member of the System for the years or fractional parts of years for which he or she is requesting credit plus amounts acroarially determined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services and administrative costs rendered to the Board in connection with the purchase of years of Credited Service. 2. The request shall be made only once and made by the General Employee on or before the later of twelve (12) months from the effective date of this ordinance or six (6) months from the date of his or her reemployment with the City as a General Employee, whichever is later. 3. Payment by the General Employee of the required amount shall be made within six (6) months of his or her request for credIt and shall be made in one lump sum payment upon receipt of which Credited Service shall be given. 4. There shall be no maximum credit under this section and all years of Credited Service added pursuant to this Section shall count for all purposes, includmg vesting. Effective Date means October 1, 1991. Fund means the trust fund established herein as part of the System. General Employee means any actively employed person in the regular full-time service of the City, including those in their imtial probationary employment period, but not including certified police officers and certified firefighters, employed by the City. For purposes of this System, the City Manager, Assistant City Manager and CIty Attorney shall not be deemed General Employees, and, therefore, shall not be Members of the System. Member means an actively employed General Employee who fulfills the prescribed membership requirements. Benefit improvements which, m the past, have been provided for by amendments to the System adopted by City ordinance, and any benefit improvements which might be made in the furore shall apply prospectively and shall not apply to Members who terminate employment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Plan Year means the twelve (12) month period beginning October 1 and ending September 30 of the following year. Retiree means a Member who has entered Retirement Staros. Page 4 Retirement means a Member's separation from City employment with immediate receipt of benefits under the System. Salary means the total compensation reported on the Member's W-2 form plu~ t::B!X defe~, tax sheltered or ~ exempt items of}nc<?me derived ~o~ e~ective empl~y~e;,; Jj&lynJll deductlons or salary reductlons. Compensatlon m excess of limitatlons set fomll ]X,. S:G;C:~U0L'll 401 (a)(17) of the Code shall be disregarded. The limitation on compeJru~id'::fr. ;!~!l II eligible employee II shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a Member before the first Plan Year beginning after December 31, 1995. Spouse means the lawful wife or husband of a Member or Retiree at the time benefits become payable. System means the City of Ocoee Municipal General Employee's Retirement Trust Fund as contained herein and all amendments thereto. SECTION 2. MEMBERSHIP. 1. Conditions of Eligibility . Subject to A. of this subsection, all General Employees as of the Effective Date, and all future new General Employees, shall become Members of this System as a condition of employment. A. The following employees, however, may, within ninety (90) days of his or her employment, notify the Board and the city of his or her election not to be a member of the System. Thereupon, it shall be the duty of the Board of Trustees to refund, from the Fund, the full amount without interest, withheld from such employee's salary and deposited in the Fund. Thenceforward, no withholding shall be made from his or her salary and all employees who have given such notice shall be banned from participating in the System. The employees who are eligible to opt out of the System are: a) Finance Director b) Public Works Director c) City Engineer d) Personnel and Human Relations Director e) Planning Director f) City Clerk g) Chief Building Official h) Administrative Services Director 2. Membership. Each General Employee shall complete a form prescribed by the Board pro- viding for the designation of a Beneficiary or Beneficiaries. SECTION 3. BOARD OF TRUSTEES. 1. The sole and exclusive administration of and responsibility for the proper operation of the System and for making effective the provisions of this ordinance are hereby vested in a Board of Trustees. The Board' of Trustees is hereby designated as the plan administrator. The Board of Trustees shall consist offive (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the City, who shall be appointed by the Ocoee City Conumssion, and two of whom shall be full-time Members of the System, Page 5 who shall be elected by a majority of the General Employees who are l\1e;;hliilbZ;:'ll8) System. The fifth Trustee shall be chosen by a majority of the :previous fom' _ provided for herein, and such person's name shall be subrmtted to the Ocooe City' Commission. Upon receipt of the fifth person's name, the Ocoee City Commi~s5F}[m ~)h;~JX? as a ministerial duty, appoint such person to the Board of Trustees as its fifth Trus~o Th~ fifth Trustee shall have the same rights as each of the other four Trustees appomre.i vJi elected as herein provided and shall serve a two (2) year term unless he or SJh~ SOOlI2lC~:; vacates the office. Each resident Trustee shall serve as Trustee for a period of two (2) years, unless he or she sooner vacates the office or is sooner replaced by the Ocoee City Commission at whose pleasure he or she shall serve each Member Trustee shall seNf, M Trustee for a period of two (2) years, unless he or she sooner leaves the employIDt;;1Tht of ili.~ City as a General Employee or otherwise vacates his or her office as Trustee, whereupon 2 successor shall be chosen in the same manner as the departing Trustee. Each Trustee ma.y succeed himself or herself in office. The Board shall establish and administer the nominating and election procedures for each election. The Board shall meet at least quarterly each Yem". The Board shall be a legal entity with, in addition to other powers and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and descrip- tion. 2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The Secretary of the Board shall keep a complete minute book of the actions, proceedings, or hearings of the Board. The Trustees shall not receive any compensation as such, but may receive expenses and per diem as provided by law. 3. Each Trustee shall be entitled to one vote on the Board. Three (3) affinnative votes shall be necessary for any decision by the Trustees at any meeting of the Board. A Trustee shall have the nght to recuse himself or herself from vOtIng as the result of a conflict of interest provided that the Trustee complies with the provisions of Section 112.3143, Ronda Statutes. 4. The Board shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the System. The compensation of all persons engaged by the Board and all other expenses of the Board necessary for the operation of the System shall be paid from the Fund at such rates and in such amounts as the Board shall agree. 5. The duties and responsibilities of the Board shall include, but not necessarily be limited to, the following: A. To construe the provisions of the System and determine all questions arising thereunder. B. To determine all questions relating to eligibility and membership. C. To determine and certify the amount of all retirement allowances or other benefits hereunder. D. To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the System. E. To distribute to Members, at regular intervals, information concerning the System. F. To receive and proCess all applications for benefits. Page 6 G. To authorize all payments whatsoever from the Fund, disbursing agent, in writing, of approved benefit payme[)):t~ expenditures arising through operation of the System and Fund. H. To have performed actuarial studies and valuations at least as often as required by law, and make recommendations regarding ;ffilt!\y @llld cill changes in the provisions of the System. 1. To perform such other duties as are required to prudently administer the System. SECTION 4. FINANCES AND FUND MANAGEMENT. Establishment and Operation of Fund. 1. As part of the System, there exists the Fund, into which shall be deposited all of the contributions and assets whatsoever attributable to the System, including the assets of the prior Municipal General Employee's Retirement Trust Fund. 2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in the Board. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent but only upon written authorization from the Board. 3. All funds of the Municipal General Employee's Retirement Trust Fund may be deposited by the Board with the Finance Director of the City, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he or she is liable for the safekeeping of funds for the City. However, any funds so deposited with the Finance Director of the City shall be kept in a separate fund br the Finance Director or clearly identified as such funds of the MUniCIpal General Employee s Retirement Trust Fund. In lieu thereof, the Board sh~a11~osit the funds of the Municipal General Employee's Retirement Trust Fund in a q . ed public depository as defined in 9280.02, Florida Statutes, which depository with regard to such funds shall conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibilities as set forth herein, the Board may retain the services of a custodian bank, an mvestment advisor registered under Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the Board, in the investment of all Fund assets . 4. All funds and securities of the System may be commingled in the Fund, provided that accurate records are maintained at all times reflecting the financial composition of the Fund, including accurate current accounts and entries as regards the following: A. Current amounts of Accumulated Contributions of Members on both an individual and aggregate account basis, and B. Receipts and disbursements, and C. Benefit payments, and D. Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the City, and E. All interest, dividends and gains (or losses) whatsoever, and Page 7 F. Such other entries as may be properly required so as \tCdJ and complete financial report of the Fund. S. An audit shall be performed annually by a certified public accountant f(OIt' 1tJh~ most recent fiscal year of the City showing a detailed listing of assets and a statemen.~ of aill. income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report sha.Jl1 a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. 6. The Board shall have the following investment powers and authority: A. The Board shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the Ocoee City Commission to amend or terminate this Fund, provided that no amendment or Fund tennination shall ever result in the use of any assets of this Fund except for the payment of regular expenses and benefits under this System, except as otherwise provided herein. All contributions from tune to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and administered by the Board or its agent in the Fund and the Board shall not be required to segregate or invest separately any portion of the Fund. B. All monies paid into or held in the Fund shall be invested and reinvested by the Board and the investment of all or any part of such funds shall be limited to: (1) Annuity and life insurance contracts with life insurance companies in amounts sufficient to provide, in whole or ~CJf1art, the benefits to which all of the Members in the Fund s be entitled under the provisions of this System and pay the initial and subsequent premium thereon. (2) Time or savings accounts of a national bank, a state bank or a savingslbuilding and loan association insured by the Federal Deposit Insurance Corporation. (3) Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States. (4) Bonds, stocks, mutual funds, commingled funds administered by National or State Banks or evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia, provided that the security of the corporation is traded on a nationally recognized exchange and holds a rating or ranking in one of the three highest classifications by a major rating or ranking service, and if such investments are made in a commingled fund administered by a state or national. bank, then the rating or ranking of each issue in the commingled fund shall hold a rating or ranking within the top three (3) rating or ranking classifications of a major rating or ranking service and international securities shall be permitted Page 8 in a mutual fund or commingled fund to the ex-reR1t plLiGvidloo li:OlL' in subsection 6.C. below. C. The Board shall not invest more than five percent (5%) of ~,SS~!i:;;;:;~j the common stock or capital stock of anyone issuing compaTIY 9 nor shall the ag~regate investme~t in ~y one ISSUing company eXC;~fxj[ fiv~ percent (5 %) of the outstanding capItal stock of that compID:!i); [!lor the aggregate of its investments in common stock, capital stock and convertible bonds at cost exceed fifty percent (50 %) of the assets of the Fund. The Board may invest up to ten percent (10%) of the totaJl fund asset value at cost in international securities in a mutlml fund or commingled fund. The Board shall provide a report to the City on the international investment experience, five years from the date this international investment authority is added to the System, in oarder for the City to consider the advisability of amending the System by increasing or decreasing the extent of international investments. D. The Board may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the System. E. The Board may cause any investment in securities held by it to be registered in or transferred into its name as Trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Fund. F. The Board is empowered, but is not required, to vote upon any stocks, bonds, or securitIes of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate m mergers, reorganizations, recapitaliza- tions, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the Trustees or with depositones designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the F~md which it may deem to be to the best interest of the Fund to exerCIse. G. The Board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. H. Where any action which the Board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as Trustee under this ordinance, can reasonably be taken or performed only after receipt by it from a Member, the City, or any other entity, of specific informa- tion, certification, direction or instructions, the Board shall be; free of liability in failing to take such action or perform such duty or function until such information, certification, direction or instructIon has been received by it. Page 9 1. Any overpayments or underpayments from the Fund '00 \BJ, Me:DtLbeli; Retiree or Beneficiary caused by errors of compUtalriiD!l'J :3mJ1. adjusted with interest at a rate per annum approved by the Board ]r1l such a manner that the Actuarial Equivalent of the benefit to whi(Ch Member, Retiree or Beneficiary was correctly entitled to, shall be p~d. Overpayments shall be .charged against pay:nents next sUlcceeding; thiS'; correctlon or collected ill another manner if prudent. Und~K]pj(illY1Yl(j);j:irsJ shall be made up from the Fund in a prudent manner. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided foj[" 0 In any application to or proceeding or action in the courts, only the Board shall be a necessary larty, and no Member or other person having an interest in the Fun shall be entitled to any notice or seX'Vi~ of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. Any of the foregoing {'owers and functions reposed in the Board may be performed or earned out by the Board through duly authorized agents, provided that the Board at all times maintains continuous supervision over the acts of any such a~ent; provided further, that legal title to said Fund shall always remain ill the Board. J. K. L. SECTION 5. CONTRIBUTIONS. 1. Member Contributions. A. Amount. Each Member of the System shall be required to make regular contributions to the Fund in the amount of five percent (5 %) of his or her Salary. Member contributions withheld by the City on behalf of the Member shall be deposited with the Board at least monthly. The contributions made by each Member to the Fund shall be designated as employer contributions pursuant to 9414(h) of the Code. Such designation is contingent upon the contributions being excluded from the Members' gross income for Federal Income Tax purposes. For all other purposes of the System, such contributions shall be considered to be Member contributions. B. Method. Such contributions shall be made by payroll deduction. 2. City Contributions. So long as this System is in effect, the City shall make quarterly contributions to the Fund in an amount equal to the difference in each year, between the total aggregate Member contributions for the year and the total cost for the year, as shown by the most recent actuarial valuation of the System. The total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability over a thirty (30) year period, commencing with the fiscal year in which the Effective Date of this System occurs. 3. Other. Private donations, gifts and contributions may be deposited to the Fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis. Page 10 Funds arising from these sources may be used only for additional benefits fOlE detennined by the Board, and may not be used to reduce what would Mve {lthC::j'v:i s:(,; required City contributions. SEcrION 6. BENEFIT AMOUNTS AND ELIGmILITY. 1. Nonnal Retirement Date. A Member's nonnal retirement date shall be the first day of th.Gi mOlJith coincident with, or next following age sixty (60) regardless of the years of Credited SeLviG€,;? A Member may retire on his or her nonnal retirement date or on the first day of any fj<Lonth. thereafter, and each Member shall become 100% vested in his or her accrued benefit on the Member's nonnal retirement date. Nonnal retirement under the System is Retirement from employment with the City on or after the nonnal retirement date. 2. Nonnal Retirement Benefit. A Member retiring hereunder on or after his or her nonnal retirement date shall receive a monthly benefit which shall commence on the first day of the month 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 two percent (2 %) of Average Final Compensation, for each year of Credited Service. 3. Early Retirement Date. A Member may retire on his or her early retirement date which shall be the first day of any month coincident with or next following the attainment of age fifty (50) and the completion of five (5) years of Credited Service. Early retirement under the System is Retirement from employment with the City on or after the early retirement date and prior to the nonnal retirement date. 4. Early Retirement Benefit. A Member retiring hereunder on his or her early retirement date may receive either a deferred or an immediate monthly retirement benefit payable for life as follows: A. A deferred monthly retirement benefit which shall comme;nce on what would have been his or her nonnal retirement date had he or she remained a General Employee and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be detennined in the same manner as for retirement as his or her nonnal retirement date except that Credited Service and Average Final Compensation shall be detennined as of his or her early retirement date; or B. An immediate monthly retirement benefit which shall commence on his or her early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as detennined in paragraph A above, which is actuarially reduced from the amount to which he or she would have been entitled had he or she retirt'~. on his or her nonnal retirement date and with the same number of years of Credited Service as at the time his or her benefits commence and based on his or her Average Final Compensation at that date. Page 11 SECTION 7. PRE-RETIREMENT DEATH. 1. Prior to Vesting or Eligibility for Retirement. The Beneficiary of a deceased Member who was not receiving monthly benefit'i or who was not yet vested or eligible for early or normal retirement shall receive a refund of one-hundred percent (100 %) of the Member's Accumulated Contributions. 2. Deceased Members Vested or Eligible for Retirement. The Beneficiary of any Member who dies and who, at the date of hiS) or rre1.' death was vested or eligible for early or normal retirement, shall be entitled to a benefit M follows: A. If the Member was vested, but not eligible for normal or early retirement, the Beneficiary shall receive a benefit payable for ten years, beginning on the date that the deceased Member would have been eligible for early or normal retirement, at the option of the Beneficiary. The benefit shall be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement, if applicable. The Beneficiary may also elect to receive an immediate benefit, payable for ten years, which is actuarially reduced to reflect the commencement of benefits prior to the early retirement date. B. If the deceased Member was eligible for normal or early retirement, the Beneficiary shall receive a benefit payable for ten years, beginning on the first day of the month following the Member's death or at the deceased Member's otherwise normal retirement date, at the option of the Beneficiary. The benefit shall be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation as of the date of his or her death and reduced as for early retirement, if applicable. C. A Beneficiary may not elect an optional form of benefit, however, the Board may elect to make a lump sum payment pursuant to Section 10, subsection 7. D. A Beneficiary may, in lieu of any benefit provided for in A or B above, elect to receive a refund of the deceased Member's Accumulated Contributions. SECTION 8. VESTING. If a Member terminates his or her employment with the City, 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. 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. 2. 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 Servic.e~ Average Page 12 t Final Compensation and the benefit accrual rate as of the date of termination, pay~bk; \.J) or her commencing at the Member's otherwise nonnal or early retirement date, provid~d r\!;'; or she does not elect to withdraw his or her Accumulated Contributions and provided the Member survives to his or her nonnal or early retirement date. If the Member does not withdraw his or her Accumulated Contributions and does not survive to his or her otherwise nonnal 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 Retirem~11t tmder Pre-Retirement Death. 3. Any vested Member of the System whose position is terminated, for whatever reason, but who remains employed by the City in some other capacity, shall have all retirement benefits accrued up to the date of such termination under this System preserved, provided he or she does not elect to withdraw his or her Accumulated ContributloTI1j from. this System. Such accrued retirement benefits shall be payable at his or her otherwise early (reduced as for early retirement) or nonnal retirement date hereunder, or later, in accordance; with the provisions of this System. SECTION 9. OPTIONAL FORMS OF BENEFITS. 1. In lieu of the amount and form of retirement income payable in the event of nonnal or early retirement as specified herein, a Member, upon written request to the Board, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: ' A. A retirement income of a larger monthly amount, payable to the Member for his or her lifetime only. B. A retirement income of a modified monthly amount, payable to the Member during the joint lifetime of the Member and a dependent joint pensioner designated by the Member, and following the death of either of them, 100%, 75%, 66-2/3%, or 50% of such monthly amounts payable to the survivor for the lifetime of the survivor. Except where the Retiree's joint pensioner is his or her Spouse, the present value of payments to the Retiree shall not be less than fifty percent (50 %) of the total. present value of payments to the Retiree and his or her joint penSIoner. C. If a Member retires prior to the time at which social security benefits are payable, he or she may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence and a reduced benefit thereafter in order to provide, to as great an extent as possible, a more level retirement allowance during the entire period of Retirement. The amounts payable shall be as recommended by the acmaries for the System, based upon the social security law in effect at the time of the Member's Retirement. 2. The Member, upon electing any option of this Section, will designate the joint ~nsioner (subsection l.B., above) or Beneficiary (or Beneficiaries) to receive the benefit, if any, payable under the System in the event of Member's death, and will have the power to change such designation from time to time. Such designation will name a joint pensioner or one or more primary Beneficiaries where.applicable. If a Member has elected an option with a joint pensioner or Beneficiary and Member's retirement income benefits have commenced, Member may thereafter change his or her designated Beneficiary at any time, but may only change his or her joint pensioner if the designated joint pensioner and the Page 13 Member were married at the time of Member's Retirement and are divorced thereto and the joint pensioner is alive at the time of the change. 3. The consent of a Member's or Retiree's joint pensioner or Benefic~ to any such change shall not be required. The rights of all previously-designated BeneficIaries to receive benefits under the System shall thereupon cease. 4. Upon change of a Retiree's Beneficiary or joint pensioner in accordance with this Section, the Board shall adjust the Retiree's monthly benefit by application of actuarial calculations to insure that the benefit paid is the Actuarial Equivalent of the Retiree's then- current benefit. Any such Retiree shall pay the actuarial recalculation expenses and shall make repayment of any overage of previously-paid pension benefits as a result. oLsaid recalculations. Each request for a change will be made in writing on a form prepared by the Board and on completion will be filed with the Board. In the event that no desigrmted Beneficiary survives the Retiree, such benefits as are payable in the event of the death of the Retiree subsequent to his or her Retirement shall be paId as provided in Section 10. 5. Retirement income payments shall be made under the option elected in accordance with the provisions of this Section and shall be subject to the following limitations: If the designated beneficiary (or beneficiaries) or joint pensioner dies before the Member's Retirement under the System, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the Member upon his or her Retirement as if the election had not been made, unless a new election is made in accordance with the provisions of this Section or a new Beneficiary is designated by the Member prior to his or her Retirement. If both the Retiree and the Beneficiary (or Beneficiaries) designated by Member or Retiree die before the full payment has been effected under any option providing for payments for a period certain and life there- after, made pursuant to the provisions of subsection 1, the Board may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with Section 10. If a Member continues beyond his or her normal retirement date pursuant to the provisions of Section 6, subsection 1, and dies prior to his or her actual retirement and while an option made pursuant to the provisions of this Section is in effect, monthly retirement income payments will be made, or a retirement benefit will be paid, under the option to a Beneficiary (or Beneficiaries) designated by the Member in the amount or amounts computed as if the Member had retired under the option on the date on which his or her death occurred. 6. A Retiree may not change his Qr her retirement option after the date of cashing or depositing his or her first retirement check. D. A. If a Member dies prior to his or her normal retirement date or early retirement date, whichever first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under Section 7. B. c. 7. Notwithstanding anything herein to the contrary, the Board in its discretion, may elect to make a lump sum payment to a Member or a Member's Beneficiary in the event Page 14 that the total commuted value of the remaining monthly income payments tiC>> ",,:DiiC exceed Three Thousand Five Hundred Dollars ($3,500.00). Any such paymeKn~ t:; person pursuant to the power and discretion confined upon the Board by the preceding sentence shall operate as a complete discharge of all obligations under the SY;S~ITjfil\;Z1id1 regard to such Member and shall not be subject to review by anyone, but shall b!(f; futal, binding and conclusive on all persons. SECTION 10. BENEFICIARIES. 1. Each Member or Retiree may, on a form provided for that purpose, illlgh'llGid md filed with the Board, designate a Beneficiary (or Beneficiaries) to receive the benefit, if any, which may be payable in the event of his or her death. Each designation may be revoked or changed by such Member or Retiree by signing and filing with the Board a new designation-of-beneficiary form. Upon such change, the rights of all previously deSJigM1hed Beneficiaries to receive any benefits under the System shall cease. 2. If a deceased Member or Retiree failed to name a Beneficiary in the manner prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Member or Retiree predeceased the Member or Retiree, the death benefit, if any, which may be payable under the System with respect to such deceased Member or Retiree shall be paid to the estate of the Member or Retiree. SECTION 11. CLAIMS PROCEDURES BEFORE THE BOARD DECISION. 1. Claims of Affected Persons. A. The Board of Trustees shall grant an initial hearing upon receipt of a written request ("Claim"), on matters which affect the substantial rights of any person ("Claimant"), including Members, Retirees, Beneficia- ries, or any person affected by a decision of the Board of Trustees. B. The Board shall review the Claim at an initial hearing and enter an order within ninety (90) days from the date of receipt of the Claim. The Board may extend the time for entering the order at an initial hearing for an additional ninety (90) days if it determines such time is necessary for full discovery and adequate review. The General Counsel and the Claimant may stipulate to further extensions of time. C. It shall be the function of the General Counsel, throughout the claims procedure, to assist the Board in the discovery and presentation of evidence in order to assure that the Board receives all relevant information prior to the Board's decision. D. The Claimant shall have the right to be represented by counsel at any or all times throughout the claims procedure. 2. Initial Hearing. A. At the initial hearing, the only evidence to be considered by the Board shall be documentary evidence contained in the pension file, including but not limited to, corr~spondence and evidence received pursuant to paragraph B. B. Other than questions from the Trustees, there will be no taking of additional eVIdence at the initial hearing, except that the Claimant will Page 15 be afforded fifteen (15) minutes to make a presentatioIlil, limited to comments and/or arguments as to the evidence or L"TfQJfIi'1IT21icioIm already contained in the pension file. C. Upon completion of the review of the Claim at the initial hem:rng, tb.e Board shall enter an order setting forth its findings and COlTildlUlSlliO;lill~ mil the Claim. The written order shall be provided to the ClaDrJfu1li1fll1t order shall include: (1) The specific findings and conclusions of the Board? md1!1lding specific references to pertinent provisions of the System on which such conclusions are based; (2) A description of any additional material or infonnation that the Board may deem necessary for the Claimant to perfect his 01' her Claim, together with the reasons why such material 01' infonnation is necessary; and (3) An explanation of the right to a full hearing on the Claim and the time limit in which a full hearing must be requested in writing. D. The decision of the Board at the initial hearing shall not be final until after the time has expired to request a full hearing or, if a full hearing is requested, until the Board makes a decision at the conclusion of the full hearing. 3. Full Hearing. A. Any Claimant may request a full hearing on the issues presented to the Board at an initial hearing and upon which the Board has entered an order as provided in subsection 2.C. above. B. A full hearing must be requested by the Claimant within ninety (90) days of the receipt of the Board's order. The order will be deemed received three (3) days following the date it is mailed to Claimant at the address provided to the Board by Claimant. C. Upon receipt of the request for a full hearing and considering the amount of discovery which might be conducted, the Board shall establish a date for the full hearing and cause notice to be given to the Claimant. The full hearing shall be held within ninety (90) days from the receipt of the request from the Claimant. The full hearing may be postponed, if necessary and with the consent of the Claimant, to permit full discovery of the facts. D. Copies of all documents to be offered into evidence at the TIlll hearing, including depositions, and a complete witness list with names and addresses of witnesses expected to be called, shall be furnished to the Board and the General Counsel by the Claimant at least twenty (20) days prior to the full h~aring. Documents not furnished to the 'Board within the prescribed time limit may be excluded from evidence at the full hearing if a reasonable explanation is not provided for the delay in providing the documents. Page 16 1. J. K. L. M. N. o. P. E. A Claimant or the General Counsel may obtain discovery by deposition and/or interrogatories prior to the full hearing. Written notice of any depositions and/or interrogatories shall be given to the General Counsel and the Claimant. F. The costs of any discovery, except discovery requested by the Board or the General Counsel, the appearance of witnesses at the hearing, and the makinS of a verbatim record of the proceedings shall be the responsibility of the Claimant. The Claimant shall be responsible for the appearance of any witnesses which he or she wishes to have testify at the hearing. The Board shall, however, have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at the proceedings provided for herein. The Claimant may request in writing the issuance of subpoenas by the Board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Ronda Statutes. Testimony at the full hearing may be submitted in the form of a deposition. Depositions timely submitted will be part of the record before the Board at the full hearing and will not be read in totality at the full hearing; provided however, that this does not preclude the Claimant or the General Counsel from reading parts of depositions in an opening or closing statement. Irrelevant and unduly repetitious evidence shall be excluded. Any person who knowingly gives false testimony is guilty of a misdemeanor of the first degree, punishable as provided in Section 775.082 or 775.083, Ronda Statutes. The file maintained by the Board is part of the record before the Board at the full hearing. All proceedings of the Board shall be conducted in public. In cases concerning an application for pension benefits, the burden of proof, except as otherwise provided by law, shall be on the Claimant seeking to show entitlement to such benefits. In cases concerning termination of pension benefits, the burden of proof shall be on the Board. G. H. Except as to those records which are exempted from the provisions of Chapter 119, Ronda Statutes, Florida's Public Record Law, records maintained by the Board are open for inspection and/or copying during normal business hours at a reasonable cost for the copying. Should a Claimant requesting an initial or full hearing decide to appeal any decision made by the Board, with respect to any matter considered at such hearing, the Claimant requesting an initial or full hearing will need a record of the proceedings and may need to assure that a verbatim record of the proceeding is made. The Claimant requesting an initial or full hearing will be responsible for obtaining a court Page 17 reporter or otherwise making a record of the proceedh"gi3 Board. Q. The decisions of the Board after the requested full hearing sh~JJl and binding. R. Within fifteen (15) days after making a decision at the full he:aumg, (110 Board shall enter a final order setting forth its findin&S and conclusions and a copy of the order shall be provided to the Claimant. S. Judicial review of decisions of the Board shall be sought by the fili.ll1g of a timely petition for writ of certiorari with the Clerk of the Circuit Court, in the appropriate county. 4. Conduct of the Full Hearing. A. The Chainnan shall preside over the hearing and shall rule on all evidentiary, procedural, and other legal questions that arise during the hearing. The Chairman's rulings shall stand unless overruled by a majority of the Trustees present. The Chairman shall open the full hearing by explaining the procedures to be followed. B. The Claimant shall have the right to be represented by counselor be self-represented. The General Counsel shall advise the Board. C. The Claimant shall be allowed to make an opening statement not to exceed ten (10) minutes. D. Testimony of witnesses shall be under oath or affirmation. Depositions and affidavits shall be admissible. E. The Chairman, any Trustee, the General Counsel, the Claimant or the Claimant's counsel, upon recognition by the Chairman, may direct questions to any witness during the proceedings. F. Either the Claimant or the General Counsel shall have the right to present evidence relevant to the issues, to cross examine witnesses, to impeach witnesses and to respond to the evidence presented. G. The Claimant shall be permitted a closing argument not to exceed fifteen (15) minutes. H. The Board shall deliberate and make a decision following closing argument and thereafter enter an order as provided herein. SECTION 12. ROSTER OF RETIREES. The Secretary of the Board shall keep a record of all persons enjoying a pension under the provisions of this ordinance in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all Members in such a manner as to show the name, address, date of employment and date of tennination of employment. Page 18 SECTION 13. BOARD ATTORNEY AND PROFESSIONAL~L The Board may employ independent legal counsel at the System's expense f011 the purposes contained herein, together with such other professional, technical, or oth~Ji as the Board deems necessary. SECTION 14. MAXIMUM PENSION. l. Basic Limitation. Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement income payable with respect to a Member under this System shall not exceed $90,000. For purposes of applying the above limitation, benefits payable in any fom other than a strai~ht life annuity with no ancillary benefits shall be adjusted, as provided by Treasury Regulanons, so that such benefits are the Actuarial Equivalent of a straight life annuity. For purposes of this Section, the following benefits shall not be taken into account: (1) Any ancillary benefit which is not directly related to retirement income benefits; (2) Any other benefit not required under 9415 (b )(2) of the Code and Regulations thereunder to be taken into account for purposes of the limitation of 9415(b)(1) of the Code. 2. Participation in Other Defined Benefit Plans. The limitation of this Section with respect to any Member who at any time has been a Member in any other defined benefit plan (as defined in 94140) of the Code) main- tained by the City shall apply as if the total benefits payable under all defined benefit plans in which the Member has been a member were payable from one plan. 3. Adjustments in Limitations. In the event the Member's retirement benefits become payable before age 62, the $90,000 limitation prescribed by this Section shall be reduced in accordance with Regula- tions issued by the Secretary of the Treasury pursuant to the provisions of 9415(b) of the Code, but not less than $75,000, if the benefit begins at or after age fifty-five (55). In the event the Member's retirement benefit becomes payable before age fifty- five (55), the $75,000 limitation shall be reduced from age fifty-five (55) in accordance with Regulations issued by the Secretary of the Treasury pursuant to the provisions of 9415(b) of the Code. The reductions provided for in the previous two paragraphs shall not be applicable to pre-retirement death benefits paid pursuant to Section 7. If the Member's retirement benefit becomes payable after age sixty-five (65), for purposes of determining whether this benefit meets the limitation set forth in subsection 1 herein, such benefit shall be adjusted so. that it is actuarially equivalent to the benefit beginning at age 65. This adjustment shall be made using an assumed interest rate of five percent (5 %) and shall be made in accordance with regulations promulgated by the Secretary of the Treasury or his or her delegate. Page 19 4. Less than Ten Years of Service. The maximum retirement benefits payable under this Section to :M].y Mtember who has completed less than ten (10) years of Credited Service with the City ~hQill. tlnle amount detennined under subsection 1 of this Section multiplied by a fraction, the j[Jilllir1ihE;;lf;a,~O:r of which is the number of the Member's years of Credited Service and the deru\Glf1fillirLC;;)j!)]i of which is ten (10). The reduction provided for in this subsection shall not b~ pre-retirement death benefits paid pursuant to Section 7. 5. $10.000 Limit. Notwithstanding the foregoing, the retirement benefit payable with 'respect to a Member shall be deemed not to exceed the limitations set forth in this Section if the benefits payable, with respect to such Member under this System and under <ill ollhex' qualified defined benefit pension plans to which the City contributes, do not exceed $10,000 for the applicable Plan Year and for any prior Plan Year and the City has not at any time maintained a qualified defined contributlon plan in which the Member participated. 6. Member in Defined Contribution Plan. In any case where a Member under this System is also a member in a "Defined Contribution Plan" as defined in ~414(i) of the Code, maintained by the City, the sum of the "Defined Benefit Plan Fraction" and the "Defined Contribution Plan Fraction" (both as defined in ~415(e) of the Code) shall not, subject to the restrictions and exceptions contained in ~2004 of the Act, exceed 1.0. This limitation is repealed effective January 1, 2000. 7. Reduction of benefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the Member's benefit under any defined benefit plans in which Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be detennined by the trustees and the plan administrator of such other plans, and next, by reducing or allo- cating excess forfeitures for defined contribution plans in which the Member participated, such reduction to be made first with respect to the plan in which Member most recently accrued benefits and thereafter in such priority as shall be established by the trustees and the plan administrator for such other provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the trustees and the plan administrator of all other plans covering such Member. 8. Cost-of-Living Adjustments. The limitations as stated in Subsections 1, 2, 3, and 6 herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to ~415(d) of the Code. 9. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the contrary: A. The nonnal retirement. benefit or pension payable to a Retiree who becomes a Member of the System and who has not previously participated in such System, on or after January 1, 1980, shall not exceed 100 percent of his or her Average Final Compensation. However, nothing contained in this Section shall apply to supplemental Page 20 retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. B. No member of the System shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the Member is already receiving, or will receive in the future, a retirement benefit or pension from another retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67, TItle 10, U.S. Code. SECTION 15. DISTRlBUfION OF BENEFITS. Notwithstanding any other provision of this System to the contrary, a form of retirement income payable from this System after the Effective Date of this ordinance, shall satisfy the following conditions: 1. If the retirement income is payable before the Member's death, A. It shall either be distributed or commence to the Member not later than April 1, of the calendar year following the later of the calendar year in which the Member attains age 70-1/2, or the calendar year in which Member retires, B. The distribution shall commence not later than the calendar year defined above; and a), shall be paid over the life of the Member or over the lifetimes of the Member and Spouse, issue or dependent, or b), shall be paid over the period extending not beyond the life expect- ancy of the Member and Spouse, issue or dependent. Where a form of retirement income payment has commenced in accordance with the preceding paragraphs and the Member dies before his or her entire interest in the System has been distributed, the remaining portion of such interest in the System shall be dIStributed no less rapidly than under the form of distribution in effect at the time of the Member's death. 2. If the Member's death occurs before the distribution of his or her interest in the System has commenced, Member's entire interest in the System shall be distributed within five (5) years of Member's death, unless it is to be distributed in accordance with the following rules: A. The Member's remaining interest in the System is payable to his or her Spouse, issue or dependent; B. The remaining interest is to be distributed over the life of the Spouse, issue or dependent or over a period not extending beyond the life expectancy of the Spouse, issue or dependent; and C. Such distribution begins within one year of the Member's death unless the Member's Spouse shall receive the remaining interest in which case the distribution need not begin before the date on which the Member would have attained age 70-1/2 and if the Spouse dies before the distribution to the Spouse begins, this Section shall be applied as if the Spouse were the Member. Page 21 SECTION 16. MISCELLANEOUS PROVISIONS. 1. Interest of Members in System. At no time prior to the satisfaction of all liabilities under the System respect to Retirees and Members and their Spouses or Beneficiaries, shall any part corpus or income of the Fund be used for or diverted to any purpose other th2illll exclusive benefit. 2. No Reduction of Accrued Benefits. No amendment or ordinance shall be adopted by the City Commission of the City of Ocoee which shall have the effect of reducing the then vested accrued benefi~ of Members or a Member's Beneficiaries. 3. Oualification of System. It is intended that the System will constirote a qualified public pension plan under the applicable provisions of the Code, as now in effect or hereafter amended. Any modification or amendment of the System may be made retroactively, if necessary OJ;:' appropriate, to qualify or maintain the System as a Plan meeting the requirements of the applicable provisions of the Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder. 4. Use of Forfeirores. Forfeirores arising from terminations of service of Members shall serve only to reduce future City contributions. SECTION 17. REPEAL OR TERMINATION OF SYSTEM. 1. This ordinance establishing the System and Fund, and subsequent ordinances pertaining to said System and Fund, may be modified, terminated, or amended, in whole or m part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the Member or Beneficiary shall not be affected thereby, except to the extent that the assets of the Fund may be deter- mined to be inadequate. 2. If this ordinance shall be repealed, or if contributions to the System are discontinued, the Board shall continue to administer the System in accordance with the provisions of this ordinance, for the sole benefit of the then Members, any Beneficiaries then receiving retirement allowances, and any furore persons entitled to receive benefits under one of the options provided for in this ordinance who are designated by any of said Members. In the event of repeal, or if contributions to the System are discontinued, there shall be full vesting (100 %) of benefits accrued to date of repeal and the assets of the System shall be allocated in an equitable manner to provide benefits on a proportionate basis to the persons so entitled in accordance with the provisions thereof. 3 . The following shall be the order of priority for purposes of allocating th~ C!ss~ts of the System as of the date of repeal of this Ordinance, or if contributions to the System are discontinued with the date of such discontinuation being determined by the Board. Page 22 A. Apportionment shall first be made in respect of each Retiree receiving a retirement benefit hereunder on such date, each person receiving a benefit on such date on account of a retired (but since deceased) Member, and each Member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the Actuarial Equivalent of such benefit, provided that, if such asset value be less than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. B. If there be any asset value remaining after the apportionment under paragraph A, apportionment shall next be made in respect of each Member in the service of the City on such date who is vested and who is not entitled to an apportionment under paragraph A, in the amount required to provide the Actuarial Equivalent of the vested portion of the accmed normal retirement benefit (but not less than Accumulated Contributions), based on the Credited Service and Average Final Compensation as of such date, and each vested former Member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount requIred to provide said Actuarial Equivalent of the vested portion of the accrued normal retire- ment benefit (but not less than Accumulated Contributions), provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be propor- tionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. C. If there be any asset value after the apportionments under paragraphs A and B, apportionment shall be made in respect of each Member in the service of the City on such date who is not entitled to an apportionment under paragraphs A and B in the amount equal to Member's Accumulated Contributions, frovided that, if such remaining asset value be less than the aggregate 0 the amounts apportioned here- under such latter amount shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. D. If there be any asset value remaining after the apportionments under paragraphs A, B, and C, apportionment shall lastly be made in respect of each Member included in paragraph C above to the extent of the Actuarial Equivalent of the non-vested accrued normal retirement bene- fit, less the amount apportioned in paragraph C, based on the Credited Service and Average Final Compensation as of such date, provided that, if such remaining asset value be less than the aggregate of the amounts apportioned hereunder, such amounts shall be reduced so that the aggregate of such reduced amounts will be equal to such remaining asset value. E. In the event that there be asset value remaining after the full apportionment specified in paragraphs A, B, C, and D, such excess shall be returned to the-City, less return of the State' s contribution~ tIP the State, provided that, if the excess is less than the total contributions made by the City and the State to the date of termination such excess shall be divided proportionately to the total contributions made by the City and the State. Page 23 The allocation of the Fund provided for in this Subsection may, as decided by the Board be carried out through the 'purchase of insurance company contracts to provide the benefits determined in accordance With this Subsection. The Fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Fund may be continued in existence for purposes of subsequent distributions. If, at any time during the first ten (10) years after the effective date of the ordinance originally establishing this System, the System shall be terminated or the full current costs of the System shall not have been met, anything in the System to the contrary notwithstanding, City contributions which may be used for the benefit of any one~of. the twenty-five (25) highest paid Members on the effective date, whose anticipated annual retire- ment allowance provided by the City's contributions at Member's normal retirement date would exceed $1,500, shall not exceed the greater of either a) $20,000, or b), an amount computed by multiplying the smaller of $10,000 or twenty percent (20%) of such Member's average annual earmngs during his or her last five (5) years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the Commissioner of Internal Revenue, or otherwise, that the provisions of this paragraph are not then necessary to qualify the System under the Code, this paragraph shall be ineffective without the necessity of further amendment of this ordinance. 4. After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied, then and only then shall any remaining funds revert to the general fund of the City. SECTION 18. EXE:MPI10N FROM EXECUTION. NON-ASSIGNABILITY. Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this ordinance and the Accumulated Contributions and the cash securities in the Fund created under this ordinance are hereby exempted from any state, county or municipal tax of the state and shall not be subject to executIon, attachment, garnishment or any legal process whatsoever and shall be unassignable. SECTION 19. PENSION VALIDITY. The Board shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. The Board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or any person hereafter granted a pension under this ordinance if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this ordinance be erroneously, improperly or illegally classified. Any overpayments or under payments shall be corrected and paid or repaid in a reasonable manner determined by the Board. SECTION 20. FORFEITURE OF PENSION. 1. Any Member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his or her admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this Pension Fund, except for the return of his or her Accumulated Contributions as of the date of termination. Specified offenses are as follows: Page 24 The committing, aiding or abetting of an embezzlement of public funds; The committing, aiding or abetting of any theft by a public officer or employee from employer; Bribery in connection with the employment of a public officer or employee; Any felony specified in Chapter 838, Florida Statutes; The committing of an impeachable offense. The committing of any felony by a public officer or employee who willfully and with intent to defraud the public or the public agency, for which he or she acts or in which he or she is employed, of the right to receive the faithful performance of his or her duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or herself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his or her public office or employment position. 2. Conviction shall be defined as an adjudication of guilt br. a court of competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of ~uilt is withheld and the accused is placed on probation; or a convictlon by the Senate of an rmpeachable offense. A. B. C. D. E. F. 3. Court shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice shall be given to the Member whose benefits are being considered for forfeiture. Said Member shall be afforded the right to have an attorney present. No formal rules of evidence shall apply, but the Member shall be afforded a full opportunity to present his or her case against forfeiture. 4. Any Member who has received benefits from the System in excess of his or her Accumulated Contributions after Member's rights were forfeited shall be required to pay back to the Fund the amount of the benefits received in excess of his or her Accumulated Contributions. The Board may implement all legal action necessary to recover such funds. SECTION 21. INDEMNIFICATION. 1. To the extent not covered by insurance contracts in force from time to time, the City shall indemnify, defend and hold harmless members of the Board from all personal liability for damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation, or threat of same, herein referred to as "claims", against these individuals because of acts or circumstances connected with or arising out of their official duty as members of the Board. The City reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will indemnity, defend and hold harmless any members of the Board from the judgment, execution, or levy thereon. 2. This Section shall not be construed so as to relieve any insurance company or other entity liable to defend the claim or liable for payment of the judgment or claim, from any liability, nor does this Section waive any provision of law affording the City immunity Page 25 from any suit in whole or part, or waive any other substantive or procedural .i.iglbl~ may have. 3. This Section shall not apply nor shall the City be responsible in WIllY F)fL;f!vi!L,\UP:;)i to defend or par for claims arising out of acts or omissions of members of the BOa1id w/:eJch constitute felomes or gross malfeasance or gross misfeasance in office. :i--l:>",,' 0.-IlI1Y SECTION 22. FAMILY AND MEDICAL LEAVE ACT. The fractional parts of the twenty-four (24) month period ending each March 1 that a Member is on leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA) shall be added to his or her Credited Service provided that: 1. The Member contributes to the Fund the sum that he or she would have contributed, based on his or her Salary and the Member contribution rate in effect at the time that the Credited Service is requested, had he or she been a Member of the System for the fractional parts of the twenty-four (24) months ending each March 1 for which he or she is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the Fund plus payment of costs for all professional services rendered to the Board in connection with the purchase of periods of Credited Service. 2. The request for Credited Service for FMLA leave time for the twenty-four (24) month period prior to each March 1 and payment of professional fees shall be made on or before March 31. 3. Payment by the Member of the required amount shall be made on or before April 30 for the preceding twenty-four (24) month period ending March 1 and shall be made in one lump sum payment upon receipt of which Credited Service shall be issued. 4. vesting. Credited Service purchased pursuant to this section shall not count toward SECTION 23. DIRECT TRANSFERS OF ELIGmLE ROLLOVER DISTRIBUfIONS. 1. General. This Section applies to distributions made on or after January 1, 1993. Notwithstanding any provision of the System to the contrary that would otherwise limit a distributee's election under this Section, a distributee may elect, at the time and in the manner prescribed by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 2. Definitions. A. Eligible Rollover Distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectan- cies) of the distributee and the distributee's designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under section 401 (a) (9) of the Code; Page 26 ~d the portion of any distribution that is not includible ill gross mcome. B. Eligible Retirement Plan: An eligible retirement plan is an individual retirement account described in section 408(a) of the Code, an individual retirement annuity described in section 408(b) of the Code, an annuity plan described in section 403(a) of the Code, or ~ q~ed trust described in section 401(a) of the Code, that accepts the distributee's eligible rollover distribution. However, in the case of an eli~ble rollover distribution to the surviving Spouse, an eligible retIrement plan is an individual retirement account or individual retirement annuity. C. Distributee: A distributee includes an employee or former employee. In addition, the employee's or former employee's surviving Spouse is a distributee with regard to the interest of the Spouse. D. Direct Rollover: A direct rollover is a 'payment by the plan to the eligible retirement plan specified by the dIstributee. SECTION 24. SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE. The years or parts of a year that a Member serves in the military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, after separation from employment as a General Employee with the City to perform training or service, and reemployment on or after December 12, 1994, shall be added to his or her years of Credited Service for all purposes, including vesting, provided that: A. The General Employee must return to his or her employment as a General Employee within one (1) year from the earlier of the date of his or her military discharge or his or her release from service. B. The General Employee deposits into the Fund the same sum that the Member would have contributed if he or she had remained a General Employee during his or her absence. The General Employee must deposit all missed contribu- tions within a period eg.ual to three (3) times the period of military service, but not more than five (5) years or he or she will forfeit the right to receive Credited Service for his or her military service pursuant to this Section. C. The maximum credit for military service pursuant to this section shall be five (5) years. D. In order to qualify for the purchase of Credited Service pursuant to this Section, the General Employee must have been discharged or released from service under honorable conditions. E. This Section is intended to meet or exceed the minimum requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (p.L. 103-353). To the exten.t that this Section does not meet the minimum standards ofUSERRA, as it may be amended from time to time, the minimum standards shall apply. dm\bm\ocoec\gen\11-26-96G .em Page 27