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HomeMy WebLinkAboutItem V (A) Second Reading of Ordinances 3. Ord No. 94-06, re: Amending the Police Officers' & Firefighters' Retirement Trust Fund... AGENDA 4-19-94 "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item V A 3 •cbee 1 5,\.%° CITY OF OCOEE RU MMLSSI° P STY JOHNSON C 150 N.LAKESHORE DRIVE PAUL W.FOSTER Cs OCOEE FLORIDA 34761-2258 VERN COMBS ��1 `�v (407)6562322 JIM GLEASON ,.• lF4 Op0000 `� MY MANAGER ECUS SHAPIRO TO: ELLIS SHAPIRO, CITY MANAGER / i FR: PEGGY PSALEDAKIS, DIRECTOR PERSONNEL/EMPLOYEE RELATIONS DA: MARCH 31, 1994 SU: POLICE OFFICERS' AND FIREFIGHTERS' PENSION PLAN I am requesting the attached documents submitted by the City of Ocoee Police Officers' and Firefighters' 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 . Three of the items listed are maintaining compliance with the Federal Family and Medical Leave Act, the Internal Revenue Service and the Americans With Disabilities Act . One item affords employees the right to transfer from one Pension plan to another without loss of credited service. In item one (1) 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. SSth • LAA 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 25, 1994 Mr. Ellis Shapiro, City Manager City of Ocoee 150 North Lakeshore Drive Ocoee, Florida 34761 Re: Police Officers' and Firefighters' Pension Plan Dear Mr. Shapiro: As you know, we represent the Board of Trustees of the City of Ocoee Police Officers' and Firefighters' Retirement Trust Fund. The Board of Trustees would like to recommend to the City certain changes to the Police Officers' and Firefighters' 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 Police Officers' and Firefighters' Pension Plan and the General Employees' Pension Plan. This ordinance will allow a general employee who terminates his employment as general employee and, who becomes a police officer or firefighter, to receive Credited Service in the Police Officers' and Firefighters' 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 police officers' or firefighters' plan or the general employees' plan. 2. Sections 2 and 3 amend the membership and disability sections of the pension plan to provide that any member who has a physical condition which preexists his employment with the City will not be permitted to receive a disability pension from the pension plan for a disability which results from the preexisting condition. This recommended change results partly from the new requirements set forth in the Americans With Disabilities Act which may require the City to hire a police officer or firefighter in spite of the fact that he may have a preexisting condition which later may form the basis of a disability claim. 3. Section 4 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. Mr. Ellis Shapiro, City Manager March 25, 1994 Page 2 4. Section 5 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. 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. You;sele etroe) Scott R. Christiansen SRC/jsc enclosure cc: Ward Foster ORDINANCE 94- 06 AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA, AMENDING ORDINANCE 91-09, THE CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND BY AMENDING SECTION 1 TO PROVIDE FOR CREDIT FOR VESTING FOR CREDITED SERVICE ACCUMULATED IN OTHER CITY PENSION PLANS; AMENDING SECTIONS 2 AND 8 OF THE RESTATED PLAN, TO PROVIDE FOR AN EXCLUSION FROM DISABILITY BENEFITS FOR NEW MEMBERS FOR DISABILITIES RESULTING FROM PRE- EXISTING CONDITIONS; ADDING SECTION 25 TO PROVIDE FOR PURCHASE OF CREDITED SERVICE FOR FAMILY MEDICAL LEAVE TI E; ADDING SECTION 26 TO PROVIDE FOR DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; PROVIDING SEVERA- BILITY OF PROVISIONS, REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFEC- TIVE DATE. NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF [Eh CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION 1. Ordinance 91-09, adopting the restated City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund is amended by amending Section 1, Definitions, Credited Service, to add subsection D. and additional paragraph as follows: D. The Police Officer or Firefighter 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 9. and for determining eligibility for early or normal retirement. Such other credited service will not be considered in determining benefits under this System. Only his 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. - 1 - Credited Service and benefit accrual rate as of the date the Member ceases to be a Police Officer or Firefighter. SECTION 2. Ordinance 91-09, adopting the restated City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund is amended by amending Section 2, Membership, to read as follows: SECTION 2. MEMBERSHIP. 1. Conditions of Eligibility A All Police Officers and Firefighters as of the Effective Date, and all future new Police Officers and Firefighters, shall become members of this system as a condition of employment. B All future new Police Officers and Firefighters shall be required to complete a medical examination as prescribed by the City. Based upon medical evidence of a pre-existing adverse health condition, resulting from the prescribed examination or other records or medical history. the Board may declare any Member ineligible for disability benefits hereunder, as related to such pre-existing condition. Each declaration shall be reflected in the minutes of the meeting of the Board at which such declaration was formally adopted or established by the Board. 2. Membership Each Police Officer or Firefighter shall complete a form prescribed by the Board providing the following information: BA. Designation of a Beneficiary or Beneficiaries, and, G . A certified sworn statement as to prior medical and psychological history. and - 2 - C.,. A written release and waiver of right to privacy permitting the Board to obtain, discuss and distribute all medical records to the Board, the Board attorney, and any medical professionals retained by the Board. 3. Change in Designation of Beneficiary A Member may from time to time change his designated Beneficiary by written notice to the Board upon forms provided by the Board. Upon such change the rights of all previously designated Beneficiaries to receive any benefits under the System shall cease. SECTION 3. Ordinance 91-09, adopting the restated City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund is amended by amending Section 8, Disability, subsections 1, 2, 3 and 4 to read as follows: Section 8. DISABILITY. 1. Disability Benefits On-Duty. Each Police Officer or Firefighter Any Member who shall have become totally and permanently disabled lean active Member of the Ocoee Police or Firc Department to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer or Firefighter, which disability was directly caused by the performance of his duty as a Police Officer or Firefighter, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to two and one- half percent (2.5%) of his Average Final Compensation multiplied by the total years of Credited Service, but in any event the minimum amount paid to the Member shall be forty- two percent (42%) of the Average Final Compensation of the Member. Any condition or impairment of health of a Police Officer or Firefighter Member caused by tuberculosis, hypertension or heart disease shall be presumed to have been suffered in line of duty unless the contrary is shown by competent evidence, provided that such Police Officer or Firefighter Member shall have successfully passed a physical examination upon entering into such service, including cardiogram, which examination failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance. 2. Disability Benefits Off-Duty. Every Police Officer and Fircfightcr Any Member Pens:len-Fund-Systemwith ten (10) years or more Credited Service who shall have become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Police Officer or Firefighter, which disability is not directly caused by the performance of his duties as a Police Officer or Firefighter shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to two and one-half percent (2.5%) of his Average Final Compensation multiplied by the total years of Credited Service, but in any event the minimum amount paid to the Member shall be twenty-five percent (255) of the Average Final Compensation of the Member. 3. Conditions Disqualifying Disability Benefits. Each Police Officcr or Firefighter Member who is claiming disability benefits shall establish, to the satisfaction of the Board, that such disability was 4 occasioned primarily by: A. Excessive or habitual use of any drugs and/or intoxicants, alcohol. B. Injury or disease sustained while willfully and illegally participating in rights, riots and/or civil insurrections. C. Injury or disease sustained while committing a crime. D. Injury or disease sustained while serving in any branch of the Armed Forces. E. Injury or disease sustained after his employment as a Police Officer or Firefighter with the City of Ocoee shall have terminated. - 4 - F. Willful, wanton or intentional conduct or gross negligence of the Member. Q, Injury or disease sustained by the Member while working for anyone other than the City and arising out of such employment. H. A condition pre-existing the Police Officer's or Firefighter's membership in the System. No Member shall be entitled to a disability pension. whether in line of duty or not in line of duty. because of or due to the aggravation of a specific injury. impairment or other medical condition pre-existing at the time of membership in the System. provided that such pre-existing condition and its relationship to a later injury, impairment or other medical condition be established by competent substantial evidence. Nothing herein shall be construed to preclude a disability pension to a Member who, after membership in the System, suffers an injury, impairment or other medical condition different from some other injury. impairment. or other medical condition existing at or prior to said membership. 4. Physical Examination Requirement. A Police Officer or Firefighter Member shall not become eligible for disability benefits until and unless he undergoes a physical examination by a qualified physician or physicians and/or surgeon or surgeons, who shall be selected by the Board for that purpose. The Board shall not select the Member's treating physician or surgeon for this purpose except in an unusual case where the Board determines that it would be reasonable and prudent to do so. Any Police Officer or Firefighter receiving disability benefits under provisions of this ordinance may be periodically re-examined by a qualified physician or physicians and/or surgeon or surgeons who shall be selected by the Board, to determine if such dis- - 5 - ability has ceased to exist. If the Board finds that the retiree is no longer permanently and totally disabled to the extent that he is unable to render useful and efficient service as a Police Officer or Firefighter, the Board shall recommend to the City that the retiree be returned to performance of duty as a Police Officer or Firefighter, and the retiree so returned shall enjoy the same rights that Member had at the time he or she was placed upon pension. In the event the retiree so ordered to return shall refuse to comply with the order within thirty (30) days from the issuance thereof, Member shall forfeit the right to his pension. The cost of the physical examination and/or re-examination of the Police Officer er Firc fig and/or tc- Member claiming retiree receiving disability benefits shall be b borne by the Fund. All other reasonable costs as determined by the Board incident to the physical examination, such as, but not limited to, transportation, meals, hotel accommodations, shall be borne by the Beard Fund. If the Police Officer or Firefighter recovers from disability and reenters the service of the City as a Police Officer or Firefighter, his service will be deemed to have been continuous, but the period beginning with the first month for which he received a disability retirement income payment and ending with the date he reentered the service of the City will not be considered as Credited Service for the purposes of the Plan System. The Board shall have the power and authority to make the final decisions regarding all disability claims. SECTION 4. Ordinance 91-09, adopting the restated City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund is amended by adding Section 25, Family and Medical Leave Act, to read as follows: SECTION 25. 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: - 6 - 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 5. Ordinance 91-09, adopting the restated City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund is amended by adding Section 26, Direct Transfers of Eligible Rollover Distributions, to read as follows: SECTION 26. 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 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. - 7 - 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. - 8 - SECTION 6. Repeal of Ordinances. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 7. 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 8. Effective Date. This ordinance shall take effect upon second reading and adoption. PASSED AND ADOPTED this day of , 1994. APPROVED: ATl'EST: 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 & DEHNER, P.A. Special Counsel By: APPROVED BY THE OCOEE CITY COMMISSION AT A MEETING HELD ON , 1994 UNDER AGENDA ITEM NO. dmV ooes 0316940:ad - 9 - , The Orlando Sentinel __ NOTICE OF PUBLIC HEARING— Published Daily Notice is owOFOCQEE $6 3.60 Ida scare saa,t. to Floc- of C -..__...._�.:ereby �ths Board. City Comnbtioners'.of.the,city of ' Ocoee will hold a public hearing in the tate of frortba Community Center located at 125 N S.S- Lakeshore Drive,Ocoee'Florida during a regular session to be held on April 19, COUNTY OF ORANGE 11esa$at7:30 p.m.,or as soon thereafter ble, In order to consider the adoption of the followsrrp ORDINANCE: j_IANCTA 'tp.'n ''h 5 AN OR ORDINANCE E NO.9408 F THE CITY OF Before the undersigned authority personally appeared a OCOEE, FI-ORIDA, AMENDING , who on oath says ORDINANCE 91-09,THE CITY OF OCOEE MUNICIPAL POLICE OFFI- that he/she is the Legal Advertising Representative of The Orlando Sentinel, a daily CERS'AND FIREFIGHTERS' RE- newspaper published at ORLANDO in TIREMENT TRUST FUND BY ORANGE County, Florida; AMENDING SECTION 1 TO PRO- VIDE FOR CREDIT FOR VESTING that the attached coy of advertisement being a NOTICE OF P ll 3 L I C H FOR CREDrTED SERVICE ACCU- in the matter of ORD. N 0• 94-06 MULATED IN OTHER CITY PEN- SION PLANS; AMENDING SEC- TION 2 AND 8 OF THE RESTATED in the ORANGE Court, C LU PROVIDE D SABILIETX- was published in said newspaper in the issue; of 04/117/94 FOR ENEFI S FOLTiNSR EW MEMBERS RESULING FROM PRE-EXISTING CONDI- TIONS; ADDING SECTION 25 TO PROVIDE FOR PURCHASE OF CREDITED SERVICE FOR FAMILY Affiant further says that the said Orlando Sentinel is a newspaper published at MEDISECTION 26 ATO PROVIDE FOR DI- ORLANDO , N 2 - 0 RL A ND 0in said RECT TRANSFERS OF EUGIBLE ORANGE County, Florida, ROLLOVDNG�SEVER�BIUTTYYI.OFPRov°i- and that the said newspaper has heretofore been continuously published in SIGNS IREPEALINGNFuAU.ORDIN- said ORANGE County, Florida, ANCEAND PROVIDING AN EFFECTIVE each Week Day and has been entered as second-class mail matter at the post DATE. office in ORLANDO in said Interested parties may appear at the meeting and be heard with respect to ORANGE County, Florida, posed ordinance maybe tin a for a period of one year next preceding the first publication of the attached City Hall, 150 N. Lakeshore Drive, copy of advertisement; and affiant further says that he/she has neither paid Ocoee, Florida. between the hours of A 8:00 a.m. and 5:00 p.m., Monday nor promised any person, firm or corporation any di unt, rebate, through Friday. commission or refund forte rpose of securl g this a rtisement f r NOTICE:Any person who desires to ap- peal any decision made by Commission publication in the said new pape . (��}— with respect to any matter considered at wuk �J r 'v such proceedingsgar will suchh record of the need to ensure that a verbatimrecorpurpose may f The foregoing instrument was acv owledged before me this 7 day of the Proceeding is made.which record includes the testimony and evidence APRIL 19 94, y F r. -�,, upon which the appeal is based. Per- sons with disabilities needing assistance who is personallyknown to me and w id take n nth(` ' . to participate in of tinge /1.1� !, 4 I' -. fice 48 8 gof- of tiderkroceed- ings should contact the Obi n .t:Al�,cs April 7,1994 (SEAL) ao' ELuICETH IJHADDAo OLS4482003 Apr.7,1994 My Commission CC323402 _.- * ;t'.A 9 * Expires Oct.13,1997 • Bondod by HAI Jr tit of oz. 800-422-1555 • r p