HomeMy WebLinkAboutItem V (A) Second Reading of Ordinances 2. Ord No. 94-05, re: Amending the General Employees' Retirement Trust Fund... AGENDA 4-19-94
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item V A 2
O\ Ocoee ' a.JLL I I VANLJtxA,turt
CITY OF OCOEE COMMISSIONERSJOHNSON
D. RUSTY JOI NSON
C 150 N.LAKESHORE DRIVE PAUL W.FOSTER
OCOEE FLORIDA 34761-2258 VERN COMBS
(414.
`;j.. .tV (407)656-2322 JIM GLEASON
fr
F G 000 QTY MANAGER
ELLIS SHAPIRO
TO: ELLIS SHAPIRO, CITY MANAGER
FR: PEGGY PSALEDAKIS, DIRECTOR PERSONNEL/EMPLOYEE RELATIONS '<k
DA: MARCH 31, 1994
SU: GENERAL EMPLOYEES' PENSION PLAN
I am requesting the attached documents submitted by the City of
Ocoee General Employees' Retirement Trust Fund Board members be
placed before the Mayor and Members of the Commission at the next
City Commission meeting of April 5, 1994 .
Two of the items listed are maintaining compliance with the Federal
Family and Medical Leave Act and the Internal Revenue Service . One
item affords employees the right to transfer from one Pension plan
to another without loss of credited service .
In item two (2) I have requested clarification from the Pension
Attorney as to the definition of Credited Service . I want to
ensure that our Personnel Rules or the proposed ordinance are not
in conflict .
I will report back to you if this is a problem.
614
LAW OFFICES
CHRISTIANSEN & DEHNER, P.A.
2975 BEE RIDGE ROAD
SCOTT R. CHRISTIANSEN SUITE C TELEPHONE
H. LEE DEHNER SARASOTA.FLORIDA 34239 (813)922-0200
TELECOPIER
(813)923-5683
March 23, 1994
Mr. Ellis Shapiro, City Manager
City of Ocoee
150 North Lakeshore Drive
Ocoee, Florida 34761
Re: General Employees' Pension Plan
Dear Mr. Shapiro:
As you know, we represent the Board of Trustees of the City of Ocoee General
Employees Retirement Trust Fund. The Board of Trustees would like to recommend to the
City certain changes to the General Employees' Pension Plan which are set forth in the
enclosed ordinance. Upon adoption, this ordinance would have the effect of amending the
pension plan as follows:
1. Section 1. The definition of Credited Service in the pension plan will be
amended to provide cross-credit for service as an employee of the City
between the General Employees' Pension Plan and the Police Officers' and
Firefighters' Pension Plan. This ordinance will allow a police officer or
firefighter who terminates his employment as police officer or firefighter and,
who becomes a general employee, to receive Credited Service in the General
Employees' Pension Plan for purposes of becoming vested in the plan and for
determining eligibility for early or normal retirement. The prior service would
not be included for purposes of determining benefits under the plan to which
the member has moved. Benefits would be determined under each plan based
only upon the Credited Service which a member accumulates while a member
of the general employees' plan or the police officers' and firefighters' plan.
2. Section 2 would permit a member who loses Credited Service as a result of
leave without pay pursuant to the Family and Medical Leave Act, to purchase
the lost service time. This section would merely allow a member to purchase
this Credited Service upon depositing sufficient funds in the plan such that
there is no actuarial cost to the plan in granting the Credited Service.
3. Section 3 adds a provision to the pension plan to permit direct transfers of
eligible rollover distributions. This language is mandated for inclusion in the
pension plan by the Internal Revenue Service. It allows a member who is
receiving a lump sum distribution from the pension plan to transfer his funds
to another pension plan or IRA.
None of the provisions in this ordinance would have any financial impact on the
pension plan and by copy of this letter I am requesting that the plan's actuary, Ward Foster,
provide you with a letter confirming this fact.
Mr. Ellis Shapiro, City Manager
March 23, 1994
Page 2
The Board of Trustees would appreciate it if this ordinance could be placed on an
upcoming agenda for consideration and approval by the City Commission. If you feel it is
necessary for me to be present to explain the ordinance I would be happy to do so.
If you have any further questions, please feel free to give me a call.
Yours v d y,
Scott R. Christiansen
SRC/jsc
enclosure
cc: Ward Foster
ORDINANCE 94- 05
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
AMENDING ORDINANCE 91-08, THE CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT
TRUST FUND BY AMENDING SECTION 1 TO PROVIDE
FOR CREDIT FOR VESTING FOR CREDITED SERVICE
ACCUMULATED IN OTHER CITY PENSION PLANS;
ADDING SECTION 23 TO PROVIDE FOR PURCHASE OF
CREDITED SERVICE FOR FAMILY MEDICAL LEAVE
TIME; ADDING SECTION 24 TO PROVIDE FOR DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS;
PROVIDING SEVERABILITY OF PROVISIONS,
REPEALING ALL ORDINANCES IN CONFLICT HERE-
WITH AND PROVIDING AN Err±CTIVE DATE.
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF l'Hh.
CITY OF OCOEE, FLORIDA, AS FOLLOWS:
SECTION 1. Ordinance 91-08, adopting the restated City of Ocoee Municipal
General Employees' Retirement Trust Fund is amended by amending Section 1, Definitions,
Credited Service, to add subsection D. and additional paragraph as follows:
D. The General Employee was discharged under honorable conditions.
In the event that a Member of this System has also accumulated credited service in
another pension system maintained by the City. then such other credited service shall be used
in determining vesting as provided for in Section 8. and for determining eligibility for early
or normal retirement. Such other credited service will not be considered in determining
benefits under this System. Only his Credited Service and Salary under this System on or
after his date of membership in this System will be considered for benefit calculation. In
addition, any benefit calculation for a Member of this System who is or becomes eligible for
a benefit from this System after he has become a member of another pension system
maintained by the City. shall be based upon the Member's Average Final Compensation.
Credited Service and benefit accrual rate as of the date the Member ceases to be a General
Employee.
SECTION 2. Ordinance 91-08, adopting the restated City of Ocoee Municipal
General Employees' Retirement Trust Fund is amended by adding Section 23, Family and
Medical Leave Act, to read as follows:
- 1 -
SECTION 23. 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 Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed,
based on his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a Member of the System for the fractional parts of the
twenty-four (24) months ending each March 1 for which he 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. Credited Service purchased pursuant to this section shall not count toward
vesting.
SECTION 3. Ordinance 91-08, adopting the restated City of Ocoee Municipal
General Employees' Retirement Trust Fund is amended by adding Section 24, Direct
Transfers of Eligible Rollover Distributions, to read as follows:
SECTION 24. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS.
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
- 2 -
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;
and the portion of any distribution that is not includible in gross
income.
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 a qualified
trust described in section 401(a) of the Code, that accepts the
distributee's eligible rollover distribution. However, in the case of an
eligible 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.
- 3 -
SECTION 4. Repeal of Ordinances. All ordinances or parts of ordinances in
conflict herewith are hereby repealed.
SECTION 5. 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 6. Effective Date. This ordinance shall take effect upon second reading
and adoption.
PASSED AND ADOPTED this day of , 1994.
APPROVED:
Al"1'hST: CITY OF OCOEE, FLORIDA
Jean Grafton, City Clerk By.S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED April 7 , 1994
READ FIRST TIME April 5 , 1994
READ SECOND TIME AND ADOPTED
, 1994
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day of , 1994.
CHRISTIANSEN & DEFINER, P.A.
Special Counsel
By:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD
ON , 1994 UNDER
AGENDA ITEM NO.
dmbeoe:6031694g.eed
- 4 -
The Orlando Sentinel __
NOTICE OF PUBLIC HEARING _....
Published Daily CITY OFOCOEE,:,'• '
Notice
s State sao the
of City Commissioners of the City of
Ocoee whit hold a public hearing In the
,tate of, tortba Comtetod at 125 during.Lakeshore Drive,Ocoee,Florida.d
$.S, a r session to be held on Apra 19,
COUNTY OF ORANGE 1994,al 7:30 p.m.,or as soon thereafter
as possible, in order to consider the
adoption of the follows ORDINANCE:
p pA AN OR
ORDINANCE
ONO 94-05 OF
Before the undersigned authority personally appeareiNNITA ROSn®® OCOEE, FLORIDA, AMENDING
who on oath sa S ORDINANCE 91-08,THE CITY OF
Y OCOEE MUNICIPAL GENERAL EM-
that he/she is the Legal AdvertisinaRe resentative of The Orlando Sentinel,a daily PLOYEES' RETIREMENT TRUST
newspaper at O R L A N DFUND BY AMENDING SECTION 1
' publishedin TO PROVIDE FOR CREDIT FOR
ORNE County, Florida; VESTING FOR CREDITED SER-
that the attached copy of advertisements being a T C PUJ IC H VICE ACCUMULATED IN OTHERCITY PENSION PLANS; ADDING
in the matter of OND- N O- 94-0S SECTION 23 TO PROVIDE FOR
PURCHASE OF CREDITED SER-
VICE FOR FAMILY MEDICAL
in the ORANGE Court, TO PROVIDE ADDING N ETRANS-
FERS was published in said newspaper in the issue;of 04/07/94 OF ELIGIBLE ROLLOVER
DISTRIBUTIONS;PROVIDING SEV-
ERABILITY OF PROVISIONS; RE-
PEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PRO-
VIDING AN EFFECTIVE DATE.
ffian further says that the said Orlando Sentinel is a newspaper published at Interested parties mayappear at the
O KL AN DO in said meeting and be heard respect to
ORANGE County, Florida, the proposed
�on.A�r�the�
y posed ordinance may be examined at
and that the said newspaper has heretofore been continuously published in City Hail, 150 N. Lakeshore Drive,
Ocoee, Florida, between the hours of
said ORANGE County, Florida, 8:00 a.m. and 5:00 p.m., Monday
each Week Da and has been entered as second-class mail matter at thepost through Friday.
Day NOTICE:Any person who desires to ap-
off lop in ORLANDO in said peal any decision made by Commission
ORANGE Count , Florida, with respect to any matter considered at
Y such meeting will need a record of the
for a period of one year next preceding the first publication of the attached proceedings and for such purpose may
ng
copy of advertisement; and affiant further says that he/she has neither paid �t irrethat verbatim record of
is made, which record
nor promised any person, firm or corporation any .iscount, rebate, includes the testimony and evidence
commission or refund for th- . rose of securi thiti /for s appealis based. Per-
ings
19s ..a ersemen// sons s withth disaWlities needing assistance
publication in the said newseape 1 I 1 to participate in any of these proceed-•
ings should contact the City Clerk's of-
I / fice 48 hours in advance of the meeting.
W V A ' A . 4.
I V 0.' Jean Grafton,City Clerk
The foregoing instrument was ack owled ed before me this dayof April 7,1994 t
9 9 9 7 oLsaaszoo2
APRIL , 19 9,43y u/ ; 'frti�F-'!:1 I )r,•;�,:,i. Apr.7,1994
who is personally known to me and who ikl(take an/o ti . (i ii 17
1 (Crit,C I', '' '114-/- ' -
(SEAL) •
plp�n►y�F{tk ELi7_AD�TI-I L HADDAD
14 Of
°- I iy Commission CC323402
7t f / * Expires Oct.13,1997
Bonded by HAI
-,40F ROP: 800-422-1555