Ordinance 2008-006 Amending Gen Empl Retirement Fund
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ORDINANCE NO. 2008-006
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND,
ADOPTED AND RESTATED IN FULL BY ORDINANCE
NUMBER 96-19; AS SUBSEQUENTLY AMENDED;
AMENDING SECTION 1, DEFINITIONS BY AMENDING
THE DEFINITION OF "MEMBER" AND THE
DEFINITION OF "SALARY"; AMENDING SECTION 2,
MEMBERSHIP; AMENDING SECTION 4., FINANCES AND
FUND MANAGEMENT; AMENDING SECTION 5,
CONTRIBUTIONS; AMENDING SECTION 8., VESTING;
AMENDING SECTION 9, OPTIONAL FORMS OF
BENEFITS; AMENDING SECTION 25, DEFERRED
RETIREMENT OPTION PLAN; ADDING A NEW
SECTION 28, PURCHASE OF CREDITED SERVICE;
PROVIDING FOR SEVERABILITY OF PROVISIONS;
REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH AND PROVIDING AN EFFECTIVE DATE.
SECTION 1: Authoritv. The City Commission of the City of Ocoee has the
authority to adopt this ordinance pursuant to Article VIII of the Constitution of the State
of Florida and Chapter 166, Florida Statutes.
SECTION 2: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 1, Definitions, buy amending the definition of "Member", to read as
follows:
Member means an actively employed General Employee who fulfills the prescribed
membership requirements. and effective October 1. 2006. current and future Mayors and
Commissioners. Benefit improvements which, in 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 future 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.
.
~ means the total compensation (and travel stipend for the Mayor and
Commissioners) reported on the Member's W-2 form plus all tax deferred, tax sheltered or tax
exempt items of income derived from elective employee payroll deductions or salary reductions.
Compensation in excess of limitations set forth in Section 401 (a)(17) of the Code shall be
disregarded. The limitation on compensation for an "eligible employee" 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.
SECTION 3: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 2,Membersbip, to read as follows:
SECTION 2. MEMBERSHIP.
.
1. Conditions of Eligibility.
Subject to A. of this subsection, all General Employees as ofthe Effective Date, and
all future new General Employees, shall become Members of this System as a condition of
employment.
A. The following employees may notify the Board and the city of his or her
election not to be a member ofthe 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, except as provided for in subparagraph B.. below. 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 ofthe System
are: City Manager, Assistant City Manager and Directors.
B. Effective July 1 L 2009. the City Manager shall be provided with five (5) years
of Credited Service in the System at no cost to him and at such time shall be a vested Member and
commence making Member Contributions in the amount of seven and four-tenths percent (7.4%)
of his salary.
C. Effective October 1. 2006. current and future Mayors and Commissioners.
may elect to enter the System as non-contributory Members and receive Credited Service.
determined as if they had been Members of the System on the later of October 1. 1997 or the date
they took office.
2. Membership.
Each Gcnclal Employee Member shall complete a form prescribed by the Board
providing for the designation of a Beneficiary or Beneficiaries.
SECTION 4: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 4, Finances and Fund Management, to read as follows:
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part ofthe System, there exists the Fund, into which shall be deposited all ofthe
contributions and assets whatsoever attributable to the System, including the assets of the prior
Municipal General Employee's Retirement Trust Fund.
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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 ofthe 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 ofthe
City shall be kept in a separate fund by the Finance Director or clearly identified as such funds of
the Municipal General Employee's Retirement Trust Fund. In lieu thereof, the Board shall deposit
the funds of the Municipal General Employee's Retirement Trust Fund in a qualified public
depository as defined in 9280.02, Florida Statutes, which depository with regard to such funds shall
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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 investment 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 ofthe 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
F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the City showing a detailed listing of assets and a statement of all 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 shall reflect 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
termination 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 time 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 linlitcd
subiect to the following:
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ill
Notwithstanding any limitation provided for in the Florida Statutes to
the contrary (unless such limitation may not be amended by local
ordinance) or any limitation in prior city ordinances to the contrary.
all monies paid into or held in the Fund may be invested and
reinvested in such securities. investment vehicles or property
wherever situated and of whatever kind. as shall be approved by the
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.
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B:
Board. including but not limited to common or preferred stocks.
bonds. and other evidences of indebtedness or ownership. In no
event. however. shall more than ten percent of the assets of the Fund
be invested in foreign securities. unless the Florida Statutes. are
amended to remove or change or this mandatory restrictIOn.
ill
The Board shall develop and adopt a written investment policy
statement setting forth permissible types of investments. goals and
obiectives of investments and setting quality and quantity limitations
on investments in accordance with the recommendations of its
investment consultants. The investment policy statement shall be
reviewed by the Board at least annually. and shall be followed by the
Board in making its investment decisions.
ill In addition. the Board may. upon recommendation by the Board's
investment consultant. make investments in group trusts meeting the
requirements of Internal Revenue Service Revenue Ruling 81-100 or
successor rulings or guidance of similar import. and while any portion
of the assets of the Fund are invested in such a group trust. such
group trust is itself adopted as a part of the System or plan.
(t1 Annuity and lifc inStlIa11Ce contracts with life, il1StlIa11ee companies in
anlOUl1ts sufficimt to prOvide, in whole or in part, the benefits to
whidl all of the Mell1bers ill the fund shall be. entitled tlllde.r tile
provisions ofthis System and pay the initial and subsequent pre.miulll
ther con.
ffl Time or savings aecounts of a natiol1al bank, a statc bank or a
sav ings/building and loall association il1stlIed by the fede1al Deposit
InstlIanec Corporation.
ffl Obligations of the United States or obligations gUa1antccd as to
principal and interest by tIle gOve.1nmcnt ofthG United Statc,s.
f41 Stocks, eommingkd funds administered by national 01 state ba11ks,
nmttlal funds, intcll1ationalse.etlI ities and bonds 01 othe.1 e v idcncc,s of
indebtedness, stlbject to the limitations prOvided fo1 ill subsection
6:€:
e:
Thc, DOald shall not invc,st rhore than fi"e percent (5%) of its assets in the
common stock or capital stock of a11Y one issuing company, nor shall the
agglCgate investm"nt in anyone issuing eompafrj' e.xGeed five percent (5%)
of the outstanding capital stoek of that company, nor shall the aggregate of
its in v est111ents ill common stock, capital stock and con v ertibk bonds at
11lMket exee\:.d seventy pcreent (70%) of the. assets of the ftlnd. The Doard
may inv"st up to tw"nty pc.rec.nt (20%) of the total fund asse.t valuc, at cost in
international seeuritic,s in a muttlal fund or con1nlil1gkd fund. The DOa1d
shall pro v ide a report to the City on the international in vestment experience,
fhe yeats from the. datc this intcrnational investment authority is added to the
System, in order f01 the City to eonside1 the advisability of amending the.
System by illCleasing 01 decreasing the. extent of international investme.nts.
C.
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.
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E: D. 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: E. 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 in mergers, reorganizations, recapitalizations, 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 depositories 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 Fund which it may deem to be to the best interest of the Fund
to exercise.
6-: F. 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.
It.- G. 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 information, 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.
r. H. Any overpayments or underpayments from the Fund to a Member, Retiree or
Beneficiary caused by errors of computation shall be adjusted with interest
at a rate per annum approved by the Board in such a manner that the
Actuarial Equivalent of the benefit to which the Member, Retiree or
Beneficiary was correctly entitled to, shall be paid. Overpayments shall be
charged against payments next succeeding the correction or collected in
another manner if prudent. Underpayments shall be made up from the Fund
in a prudent manner.
:f-: 1. The Board shall sustain no liability whatsoever for the sufficiency ofthe Fund
to meet the payments and benefits herein provided for.
It L In any application to or proceeding or action in the courts, only the Board
shall be a necessary party, and no Member or other person having an interest
in the Fund shall be entitled to any notice or service of process. Any
. judgment entered in such a proceeding or action shall be conclusive upon all
persons.
b K. Any of the foregoing powers and functions reposed in the Board may be
performed or carried out by the Board through duly authorized agents,
provided that the Board at all times maintains continuous supervision over
the acts of any such agent; provided further, that legal title to said Fund shall
always remain in the Board.
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SECTION 5: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 5, Contributions, subsection 1, Member Contributions, to read as follows:
1. Member Contributions.
.
A.
Amount. Each Member of the System. except Mayors and Commissioners
shall be required to make regular contributions to the Fund in the amount of
seven and four-tenths percent (7.4%) 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 S414(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.
Notwithstanding the preceding, when the Member's accrued benefit is equal
to 81 % of Average Final Compensation. the Member may make a one time
irrevocable election at anytime after the 81 % limit is met to discontinue
making Member Contributions to the System and have his benefit calculated
and frozen at the time of the election. If no such election is made. Member
Contributions to the Fund shall continue.
B. Method. Such contributions shall be made by payroll deduction.
SECTION 6: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 8, Vesting, to read as follows:
SECTION 8. VESTING.
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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. lithe Member (except a Mayor or Commissioner Member) has five (5) or more years
of Credited Service or if a Mayor or Commissioner Member has nine (9) or more years of Credited
Service upon termination, the Member shall be entitled to a monthly retirement benefit, determined
in the same manner as for normal or early retirement and based upon the Member's Credited Service,
Average Final Compensation and the benefit accrual rate as of the date of termination, payable to
him or her commencing at the Member's otherwise normal or early retirement date, provided he or
she does not elect to withdraw his or her Accumulated Contributions and provided the Member
survives to his or her normal or early retirement date. If the Member does not withdraw his or her
Accumulated Contributions and does not survive to his or her otherwise normal or early retirement
date, his or her designated Beneficiary shall be entitled to a benefit as provided herein for a deceased
Member, vested or eligible for Retirement under Pre-Retirement Death.
3. Any vested Member ofthe 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 Contributions from this System. Such accrued retirement
Page 6
benefits shall be payable at his or her otherwise early (reduced as for early retirement) or normal
retirement date hereunder, or later, in accordance with the provisions of this System.
.
SECTION 7: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 9, Optional Forms of Benefits, subsection 1., to read as follows:
1. In lieu of the amount and form of retirement income payable in the event of normal
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 ofthe 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%) ofthe 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 actuaries
for the System, based upon the social security law in effect at the time ofthe
Member's Retirement.
D. A member may elect a percentage of benefit in a lump sum as follows:
ill Five (5) percent lump sum benefit with ninety (95) percent paid under
the normal form or as per A.. B. or C. above.
ill Ten (10) percent lump sum benefit with ninety (90) percent paid
under the normal form or as per A.. B. or C. above.
ill Fifteen (15) percent lump sum benefit with ei~hty-five (85) percent
paid under the normal form or as per A.. B. or C. above.
ffi Twenty (20) percent lump sum benefit with eighty (80) percent paid
under the normal form or as per A.. B. or C. above.
. SECTION 8: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by
amending Section 25, Deferred Retirement Option Plan, to read as follows:
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SECTION 25. DEFERRED RETIREMENT OPTION PLAN.
1.
Definitions.
.
As used in this Section 25, the following definitions apply:"
A. "DROP" -- The Ocoee General Employees' Deferred Retirement Option Plan.
B. "DROP Account" -- The account established for each DROP participant
under subsection 3.
Participation.
2.
A. Eligibility to Participate.
In lieu of terminating his employment as a General Employee, any Member
who is eligible for normal retirement under the System may elect to defer
receipt of such service retirement pension and to participate in the DROP
P10vided that the, election to participate in the DROP is made within twelve
(12) months following the date on whidl the. Me.mber filst becomes digib1e
for normal r'tirement, or fol a Membe.r who first leaehed eligibility for
normal ICti1ement priol to the dfee;tive date of this Section, the. de,etion to
pa1iieipatc is made within twelve (12) months horn the effective date of this
Section. A Me,mbel who fails to make the election within SUell twel ve (12)
month limitation pe1iod shall forfeit all lights to pa11ieipate in the; DROP.
B. Election to Participate.
A Member's election to participate in the DROP must be made in writing in
a time and manner determined by the Board and shall be effective on the first
day of the first calendar month which is at least fifteen (15) business days
after it is received by the Board.
C Period of participation.
A Member who elects to participate in the DROP under subsection 2.B., shall
participate in the DROP for a period not to exceed sixty (GO) eighty-four (84)
months beginning on the date which the Member first becomes eligible for
normal retirement. An election to participate in the DROP shall constitute an
irrevocable election to resign from the service of the City at the time of
election into the DROP. A Member may participate only once.
D. Termination of Participation.
(1) A Member's participation in the DROP shall cease at the earlier of:
(a) the end of his permissible period of participation in the DROP
as determined under subsection 2.C.; or
.
(b)
termination of his employment as a General Employee.
(2) Upon the Member's termination of participation in the DROP,
pursuant to subsection(a) above, all amounts provided for in
subsection 3.B., including monthly benefits and investment earnings
and losses or interest, shall cease to be transferred from the System to
his DROP Account. Any amounts remaining in his DROP Account
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(3)
.
shall be paid to him in accordance with the provisions of subsection
4. when he terminates his employment as a General Employee.
A Member who terminates his participation in the DROP under this
subsection 2.D. shall not be permitted to again become a participant
in the DROP.
E. Effect of DROP Participation on the System.
(1) A Member's Credited Service and his accrued benefit under the
System shall be determined on the date his election to participate in
the DROP first becomes effective. The Member shall not accrue any
additional Credited Service or any additional benefits under the
System (except for any additional benefits provided under any cost-
of-living adjustment in the System) while he is a participant in the
DROP. After a Member commences participation, he shall not be
permitted to again contribute to the System nor shall he be eligible for
disability or pre-retirement death benefits.
(2) No amounts shall be paid to a Member from the System while the
Member is a participant in the DROP. Unless otherwise specified in
the System, if a Member's participation in the DROP is
terminated other than by terminating his employment as a General
Employee, no amounts shall be paid to him from the System until he
terminates his employment as a General Employee. Unless otherwise
specified in the System, amounts transferred from the System to the
Member's DROP Account shall be paid directly to the Member only
on the termination of his employment as a General Employee.
3. Funding.
A. Establishment of DROP Account.
A DROP Account shall be established for each Member participating in the
DROP. A Member's DROP Account shall consist of amounts transferred to
the DROP under subsection 3.B., and earnings or interest on those amounts.
B. Transfers From Retirement Svstem.
(1)
.
(2)
As of the first day of each month of a Member's period of
participation in the DROP, the monthly retirement benefit he would
have received under the System had he terminated his employment as
a General Employee and elected to receive monthly benefit payments
thereunder shall be transferred to his DROP Account, except as
otherwise provided for in subsection 2.D.(2). A Member's period of
participation in the DROP shall be determined in accordance with the
provisions of subsections 2.C. and 2.D., but in no event shall it
continue past the date he terminates his employment as a General
Employee.
Except as otherwise provided in subsection 2.D.(2), a Member's
DROP Account under this subsection 3 .B. shall be debited or credited
after each fiscal year quarter with either:
Page 9
(a) Interest at an effective rate of six and one-half percent (6.5%)
per annum compounded monthly on the prior month's ending
balance; or
.
(b)
Earnings, determined as follows:
The average daily balance in a Member's DROP Account
shall be credited or debited at a rate equal to the actual net
rate of investment return realized by the System for that
quarter. "Net investment return" for the purpose of this
paragraph is the total return of the assets in which the
Member's DROP Account is invested by the Board net of
brokerage commissions, transaction costs and management
fees.
Upon electing participation in the DROP, the Member shall elect to
receive either interest or earnings on his account to be determined as
provided above. The Member may, in writing, elect to change his
election only once during his DROP participation. An election to
change must be made prior to the end of a quarter and shall be
effective beginning the following quarter.
(3) A Member's DROP Account shall only be credited or debited with
earnings or interest and monthly benefits while the Member is a
participant in the DROP. A Member's final DROP account value for
distribution to the Member upon termination of participation in the
DROP shall be the value of the account at the end of the quarter
immediately preceding termination of participation plus any monthly
periodic additions made to the DROP account subsequent to the end
of the previous quarter and prior to distribution. If a Member is
employed by the City after participating in the DROP for the
permissible period of DROP participation, then beginning with the
Member's 1st month of employment following the last month of
DROP participation, the Member's DROP Account will no longer be
credited or debited with earnings or interest, nor will monthly benefits
be transferred to the DROP account. All such non-transferred
amounts shall be forfeited and continue to be forfeited while the
Member is employed by the City. A Member employed by the City
after the permissible period of DROP participation will still not be
eligible for pre-retirement death or disability benefits, nor will he
accrue additional Credited Service.
4. Distribution of DROP Accounts on Termination of Employment.
A.
Eligibility for Benefits.
.
A Member shall receive the balance in his DROP Account in accordance with
the provisions of this subsection 4. upon his termination of employment as
a General Employee. Except as provided in subsection 4.E., no amounts shall
be paid to a Member from the DROP prior to his termination of employment
as a General Employee.
Page 10
.
.
B. Form of Distribution.
(1)
Unless the Member elects otherwise, distribution of his DROP
Account shall be made in a cash lump sum, subject to the direct
rollover provisions set forth in subsection 4.6: F. A Member may,
however, elect, in such time and manner as the Board shall prescribe,
that his DROP distribution be used to purchase a nonforfeitable fixed
annuity payable in such form as the Member may elect. Elections
under this paragraph shall be in writing and shall be made in such
time or manner as the Board shall determine.
If a Member dies before his benefit is paid, his DROP Account shall
be paid to his Beneficiary in such optional form as his Beneficiary
may select. If no Beneficiary designation is made, the DROP
Account shall be distributed to the Member's estate.
(2)
C. Date ofPavment of Distribution.
Except as otherwise provided in this subsection 4., distribution of a Member's
DROP Account shall be made as soon as administratively practicable
following the Member's termination of employment. Distribution of the
amount in a Member's DROP account will not be made unless the Member
completes a written request for distribution and a written election, on forms
designated by the Board, to either receive a cash lump sum or a rollover of
the lump sum amount.
D. Proof of Death and Right of Beneficiary or Other Person.
The Board may require and rely upon such proof of death and such evidence
of the right of any Beneficiary or other person to receive the value of a
deceased Member's DROP Account as the Board may deem proper and its
determination of the right of that Beneficiary or other person to receive
payment shall be conclusive.
E. Distribution Limitation.
Notwithstanding any other provision of this subsection 4., all distributions
from the DROP shall conform to the "Minimum Distribution Of Benefits"
provisions as provided for herein..
F. Direct Rollover of Certain Distributions.
This subsection applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the DROP to the contrary, a distributee
may elect to have any portion of an eligible rollover distribution paid in a
direct rollover as otherwise provided under the System in Section 23, herein
incorporated by reference.
5.
Administration of DROP.
A. Board Administers the DROP.
The general administration of the DROP, the responsibility for carrying out
the provisions of the DROP and the responsibility of overseeing the
investment ofthe DROP's assets shall be placed in the Board. The members
of the Board may appoint from their number such subcommittees with such
Page 11
.
powers as they shall determine; may adopt such administrative procedures
and regulations as they deem desirable for the conduct of their affairs; may
authorize one or more of their number or any agent to execute or deliver any
instrument or make any payment on their behalf; may retain counsel, employ
agents and provide for such clerical, accounting, actuarial and consulting
services as they may require in carrying out the provisions of the DROP; and
may allocate among themselves or delegate to other persons all or such
portion of their duties under the DROP, other than those granted to them as
Trustee under any trust agreement adopted for use in implementing the
DROP, as they, in their sole discretion, shall decide. A Trustee shall not vote
on any question relating exclusively to himself.
Individual Accounts. Records and Reports.
B.
The Board shall maintain, or cause to be maintained, records showing the
operation and condition of the DROP, including records showing the
individual balances in each Member's DROP Account, and the Board shall
keep, or cause to be kept, in convenient form such data as may be necessary
for the valuation of the assets and liabilities of the DROP. The Board shall
prepare or cause to be prepared and distributed to Members participating in
the DROP and other individuals or filed with the appropriate governmental
agencies, as the case may be, all necessary descriptions, reports, information
returns, and data required to be distributed or filed for the DROP pursuant to
the Code, the applicable portions of the Act and any other applicable laws.
C. Establishment of Rules.
Subject to the limitations of the DROP, the Board from time to time shall
establish rules for the administration of the DROP and the transaction of its
business. The Board shall have discretionary authority to construe and
interpret the DROP (including but not limited to determination of an
individual's eligibility for DROP participation, the right and amount of any
benefit payable under the DROP and the date on which any individual ceases
to be a participant in the DROP). The determination of the Board as to the
interpretation of the DROP or its determination of any disputed questions
shall be conclusive and final to the extent permitted by applicable law. The
Board shall also oversee the investment of the DROP'S assets.
D. Limitation of Liability.
(1) The Trustees shall not incur any liability individually or on behalf of
any other individuals for any act or failure to act, made in good faith
in relation to the DROP or the funds of the DROP.
(2)
Neither the Board nor any Trustee of the Board shall be responsible
for any reports furnished by any expert retained or employed by the
Board, but they shall be entitled to rely thereon as well as on
certificates furnished by an accountant or an actuary, and on all
opinions of counsel. The Board shall be fully protected with respect
to any action taken or suffered by it in good faith in reliance upon
such expert, accountant, actuary or counsel, and all actions taken or
suffered in such reliance shall be conclusive upon any person with
any interest in the DROP.
.
Page 12
6. General Provisions.
.
.
A.
Amendment of DROP.
B.
The DROP may be amended by an ordinance ofthe City at any time and from
time to time, and retroactively if deemed necessary or appropriate, to amend
in whole or in part any or all of the provisions of the DROP. However,
except as otherwise provided by law, no amendment shall make it possible
for any part ofthe DROP's funds to be used for, or diverted to, purposes other
than for the exclusive benefit of persons entitled to benefits under the DROP.
No amendment shall be made which has the effect of decreasing the balance
of the DROP Account of any Member.
Facility of Payment.
If the Board shall find that a Member or other person entitled to a benefit
under the DROP is unable to care for his affairs because of illness or accident
or is a minor, the Board may direct that any benefit due him, unless claim
shall have been made for the benefit by a duly appointed legal representative,
be paid to his Spouse, a child, a parent or other blood relative, or to a person
with whom he resides. Any payment so made shall be a complete discharge
of the liabilities of the DROP for that benefit.
C. Information.
Each Member, Beneficiary or other person entitled to a benefit, before any
benefit shall be payable to him or on his account under the DROP, shall file
with the Board the information that it shall require to establish his rights and
benefits under the DROP.
D. Prevention of Escheat.
If the Board cannot ascertain the whereabouts of any person to whom a
payment is due under the DROP, the Board may, no earlier than three (3)
years from the date such payment is due, mail a notice of such due and owing
payment to the last known address of such person, as shown on the records
of the Board or the City. If such person has not made written claim therefor
within three (3) months of the date of the mailing, the Board may, if it so
elects and upon receiving advice from counsel to the DROP, direct that such
payment and all remaining payments otherwise due such person be canceled
on the records of the DROP. Upon such cancellation, the DROP shall have
no further liability therefor except that, in the event such person or his
Beneficiary later notifies the Board of his whereabouts and requests the
payment or payments due to him under the DROP, the amount so applied
shall be paid to him in accordance with the provisions of the DROP.
E. Written Elections. Notification.
(1)
Any elections, notifications or designations made by a Member
pursuant to the provisions of the DROP shall be made in writing and
filed with the Board in a time and manner determined by the Board
under rules uniformly applicable to all employees similarly situated.
The Board reserves the right to change from the time and manner for
making notifications, elections or designations by Members under the
DROP if it determines after due deliberation that such action is
justified in that it improves the administration of the DROP. In the
Page 13
event of a conflict between the provisions for making an election,
notification or designation set forth in the DROP and such new
administrative procedures, those new administrative procedures shall
prevail.
.
(2)
Each Member or Retiree who has a DROP Account shall be
responsible for furnishing the Board with his current address and any
subsequent changes in his address. Any notice required to be given
to a Member or Retiree hereunder shall be deemed given if directed
to him at the last such address given to the Board and mailed by
registered or certified United States mail. If any check mailed by
registered or certified United States mail to such address is returned,
mailing of checks will be suspended until such time as the Member
or Retiree notifies the Board of his address.
F. Benefits Not Guaranteed.
All benefits payable to a Member from the DROP shall be paid only from the
assets of the Member's DROP Account and neither the City nor the Board
shall have any duty or liability to furnish the DROP with any funds, securities
or other assets except to the extent required by any applicable law.
G. Construction.
(1) The DROP shall be construed, regulated and administered under the
laws of Florida, except where other applicable law controls.
(2) The titles and headings of the subsections in this Section 25 are for
convenience only. In the case of ambiguity or inconsistency, the text
rather than the titles or headings shall control.
H. Forfeiture of Retirement Benefits.
Nothing in this Section shall be construed to remove DROP participants from
the application of any forfeiture provisions applicable to the System. DROP
participants shall be subject to forfeiture of all retirement benefits, including
DROP benefits.
I Effect of DROP Participation on Employment.
Participation in the DROP is not a guarantee of employment and DROP
participants shall be subject to the same employment standards and policies
that are applicable to employees who are not DROP participants.
SECTION 9: That Ordinance No. 96-19, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, is hereby amended by adding
a new Section 28, Purchase of Credited Service for Air Time, to read as follows:
. SECTION 28. PURCHASE OF CREDITED SERVICE FOR AIR TIME.
Unless otherwise prohibited by law. any member who has accrued at least five (5) years of
credited service under this system shall be permitted to purchase up to five (5) years of additional
credited service under this system for periods when there was no performance of service (" air time")
provided that:
Page 14
A.
The member contributes to the fund the sum that he would have contributed had he
been a member of the system for the years or fractional parts of years 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 years
of credited service.
.
B.
Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement.
C. Payment by the member ofthe required amount shall be made within six (6) months
of his or her request for credit. but. in any event. prior to retirement. and shall be
made in one lump sum payment upon receipt of which credited service shall be
gIven.
D. Service purchased pursuant to this section shall count for all purposes except vesting
and eligibility for disability benefits. The maximum combined purchase under this
section and sections 26 and 27 shall be five (5) years.
SECTION 10. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 11: If any section, subsection, sentence, clause, phrase of this ordinance, or
the particular application thereof shall be held invalid by any court, administrative agency,
or other body with appropriate jurisdiction, the remaining section, subsection, sentences,
clauses, or phrases under application shall not be affected thereby.
SECTION 12. Effective Date. This ordinance shall take effect upon adoption.
PASSED AND ADOPTED this Jf2. day of ~, 2008.
ATTEST:
APPROVED:
CITY OF OCOEE, FLORIDA
;\\
(SEAL)
ADVERTISED ~14:; 2008
READ FIRST TIME , 2008
.
~oh.SEr~ND TIME AND ADOPTED
,2008
Page 15
.
.
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPR?ri5D AS T~ F9~ LEGALITY
THIS day of ~ 2008
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By Ht'^^-O~
noc\ocoee\gen\O 1-07 -08.ord
Page 16
APPROVED BY THE OCOEE CITY
M IS ION AT A MEETING HELD ON
2008 UNDER AGENDA ITEM