Ordinance 2009-020 Amend. to Gen Emp Pension
ORDINANCE NO. 2009-020
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND;
AMENDING AND RESTATING IN FULL, ORDINANCE
NUMBER 96-19, AS SUBSEQUENTLY AMENDED;
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
ELIGIBILITY; 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 MAXIMUM
PENSION LIMITATION; PROVIDING FOR MINIMUM
DISTRIBUTION OF BENEFITS; PROVIDING
MISCELLANEOUS PROVISIONS; PROVIDING FOR
REPEAL OR TERMINATION OF THE SYSTEM;
PROVIDING FOR DOMESTIC RELATIONS ORDERS,
RETIREE DIRECTED PAYMENTS AND EXEMPTION
FROM EXECUTION AND NON-ASSIGNABILITY;
PROVIDING FOR PENSION VALIDITY; PROVIDING FOR
FORFEITURE OF PENSION UNDER CERTAIN
CIRCUMSTANCES; PROVIDING FOR
INDEMNIFICATION AND DEFENSE OF CLAIMS;
PROVIDING FOR THE PURCHASE OF CREDITED
SERVICE FOR ABSENCES PURSUANT TO THE FAMILY
AND MEDICAL LEAVE ACT; PROVIDING FOR DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS
AND ELIMINATION OF MANDATORY DISTRIBUTIONS;
PROVIDING FOR REEMPLOYMENT AFTER
RETIREMENT; PROVIDING FOR A DEFERRED
RETIREMENT OPTION PLAN; PROVIDING FOR THE
PURCHASE OF CREDITED SERVICE FOR PRIOR
GOVERNMENT SERVICE; PROVIDING FOR MILITARY
SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR
THE PURCHASE OF CREDITED SERVICE FOR “AIR
TIME”; 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 numbers 96-19, 97-27, 99-34, 2002-25, 2005-015,
2006-004, 2006-010, 2007-001, and 2008-08, adopted by the City Commission of the City of
Ocoee, are hereby amended and restated in full incorporating Federal law, the applicable
THE CITY OF
provisions of the Florida Statutes; and other amendments as set forth in
OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT 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]h day Of~, 2009.
ATTEST:
APPROVED:
CITY OF OCOEE, FLORIDA
BY:~
S. Scott Vandergri
+-
(SEAL)
ADVERTISED ~, 2009
READ FIRST TIME Illne ZI ,2009
READ SECOND TIME AND
ADOPTED ~, 2009
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS :::lnL DAY OF :fu..L.1 ,2009.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By: !1f'A~4
APPROVED BY THE OCOEE CITY
COMMI~SION ATJ..A MEETING HELD
ON ~ 2009 UNDER
AGENDA ITEM -Jll-.
J
CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND
SECTION 1. DEFINITIONS
.
1. As used herein, unless otherwise defined or required by the context, 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 the System, any
payment representing the amount attributable to Member contributions based on the applicable
Member contribution rate, any payment representing interest and any required actuarially
calculated payments for the purchase of such Credited Service, shall be included in Accumulated
Contributions.
Actuarial Equivalent means a benefit or amount of equal value, determined on the basis
of actuarial equivalency using assumptions adopted by the Board such that benefit calculations
are not subject to City discretion.
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, termination, 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, or effective October 1, 2006
as a Mayor or a Commissioner, omitting intervening years or fractional parts of years when such
Member was not employed by the City as a General Employee or an elected official. 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. If a Member who is not vested is not reemployed as a General Employee with the City
of Ocoee within five (5) years, his or her Accumulated Contributions, if one-thousand dollars
($1,000.00) or less, shall be returned. If a Member who is not vested is not reemployed within
five (5) years, his or her Accumulated Contributions, if more than one-thousand dollars
($1,000.00), will be returned only upon the written request of the Member and upon completion
of a written election to receive a cash lump sum or to rollover the lump sum amount on forms
designated by the Board. Upon return of his or her Accumulated Contributions, all of his or her
rights and benefits under the System are forfeited and terminated. Those Members who
terminated employment with the City of Ocoee prior to October 1, 1991 and who became or will
become reemployed on or after October 1, 1991 shall be granted Credited Service for the total
number of years and fractional parts of years of service as a General Employee with the City of
Ocoee prior to October 1, 1991.
The years or parts of a year that a member performs "Qualified Military Service"
consisting of voluntary or involuntary "service in the uniformed services" as defined in the
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Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353),
after separation from employment as a General Employee to perform training or service, shall be
added to his or her years of Credited Service for all purposes, including vesting, provided that:
A. The Member is entitled to reemployment under the provisions of USERRA.
B. The Member returns to his or her employment as a General Employee within one
(1) year following the earlier of the date of his or her military discharge or his or
her release from service, unless otherwise required by USERRA.
C. The Member deposits into the Fund the same sum that the Member would have
contributed, if any, if he or she had remained a General Employee during his or
her absence. The maximum credit for military service pursuant to this
subdivision shall be five (5) years. The Member must deposit all missed
contributions within a period equal to three times the period of military service,
but not more than five (5) years, following re-employment or he or she will forfeit
the right to receive credited service for his or her military service pursuant to this
paragraph.
D. This paragraph is intended to satisfy the minimum requirements of USERRA. To
the extent that this paragraph does not meet the minimum standards of USERRA,
as it may be amended from time to time, the minimum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits (other
than benefit accruals relating to the period of qualified military service) as if the Member had
resumed employment and then died while employed.
In the event that a Member (except a Mayor or Commissioner 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 employment as a General Employee, but is not eligible to receive
Credited Service for this period or periods of previous employment for benefit calculation
purposes, 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. Unless otherwise
provided herein, only his or her Credited Service and Salary under this System on or after his or
her latest 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 or she 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.
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 initial probationary employment period, but not including
certified police officers and certified firefighters, employed by the City.
Member means an actively employed General Employee who fulfills the prescribed
membership requirements, and effective October 1, 2006, current and future Mayors and
Commissioners. Mayors and Commissioners are non-contributing members and shall have a
normal retirement date, an early retirement date and vesting applicable to them as provided for
herein. 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
Page 4
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 Status.
Retirement means a Member's separation from City employment with eligibility for
immediate receipt of benefits under the System.
Salary 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 as of the first
day of the Plan Year shall be disregarded for any purpose, including employee contributions or
any benefit calculations. The annual compensation of each member taken into account in
determining benefits or employee contributions for any Plan Year beginning on or after January
1, 2002, may not exceed $200,000, as adjusted for cost-of-living increases in accordance with
Code Section 401(a)(17)(B). Compensation means compensation during the fiscal year. The
cost-of-living adjustment in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year. If the determination period
consists of fewer than 12 months, the annual compensation limit is an amount equal to the
otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which
is the number of months in the short determination period, and the denominator of which is 12.
If the compensation for any prior determination period is taken into account in determining a
Member's contributions or benefits for the current Plan Year, the compensation for such prior
determination period is subject to the applicable annual compensation limit in effect for that prior
period. 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.
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 may 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, 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 of the System are: City
Manager, Assistant City Manager and Directors.
Page 5
B. Effective July 11, 2009, the current 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 for those years, and fractional parts of years of service as
an elected official with the City, determined as if they had been Members
of the System on the date they took office.
2. Membership.
Each Member shall complete a form prescribed by the Board providing 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 of five (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 Commission, and two of whom shall be full-time vested Members of the System,
who shall be elected by a majority of the General Employees who are Members of the System.
The fifth Trustee shall be chosen by a majority of the previous four Trustees as provided for
herein, and such person's name shall be submitted to the Ocoee City Commission. Upon receipt
of the fifth person's name, the Ocoee City Commission shall, as a ministerial duty, appoint such
person to the Board of Trustees as its fifth Trustee. The fifth Trustee shall have the same rights
as each of the other four Trustees appointed or elected as herein provided and shall serve a four
(4) year term unless he or she sooner vacates the office. Each resident Trustee shall serve as
Trustee for a period of four (4) 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 serve as Trustee for a period of four (4) years, unless he or she sooner leaves the
employment of the City as a General Employee or otherwise vacates his or her office as Trustee,
whereupon a successor shall be chosen in the same manner as the departing Trustee. Each
Trustee may 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 year. 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 description.
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) affirmative
votes shall be necessary for any decision by the Trustees at any meeting of the Board. A Trustee
shall have the right 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, Florida 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.
Page 6
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.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other
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 any and all
changes in the provisions of the System.
I. 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 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 §280.02, 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 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.
Page 7
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
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
subject to the following:
(1) 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 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.
Page 8
(2) The Board shall develop and adopt a written investment
policy statement setting forth permissible types of investments,
goals and objectives 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.
(3) 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.
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.
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.
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.
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.
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.
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
Page 9
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.
I. The Board shall sustain no liability whatsoever for the sufficiency of the
Fund to meet the payments and benefits herein provided for.
J. 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.
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.
SECTION 5. CONTRIBUTIONS.
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 §414(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 or
her 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.
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 required city contribution, as shown by the applicable
actuarial valuation of the System.
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. Funds
arising from these sources may be used only for additional benefits for Members, as determined
by the Board, and may not be used to reduce what would have otherwise been required City
contributions.
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY.
1. Normal Retirement Date.
Page 10
A Member's (except a Mayor or Commissioner Member) normal retirement date
shall be the first day of the month coincident with, or next following the attainment of age sixty
(60) regardless of the years of Credited Service. A Mayor or Commissioner Member’s normal
retirement date shall be the first day of the month coincident with, or next following the
attainment of age sixty (60) and the completion of nine (9) years of Credited Service. A Member
may retire on his or her normal retirement date or on the first day of any month thereafter, and
each Member shall become 100% vested in his or her accrued benefit on the Member's normal
retirement date. Normal retirement under the System is Retirement from employment with the
City on or after the normal retirement date.
2. Normal Retirement Benefit.
A Member retiring hereunder on or after his or her normal 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 three percent (3%) of Average Final Compensation, for each year
of Credited Service, up to a maximum benefit not to exceed eighty-one percent (81%) of
Average Final Compensation of the Member.
3. Early Retirement Date.
A Member (except a Mayor or Commissioner 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. A
Mayor or Commissioner 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 nine (9) 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
normal 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 commence on what
would have been his or her normal 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 determined in the same manner as for retirement as his or her
normal retirement date except that Credited Service and Average Final
Compensation shall be determined 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 determined in paragraph
A above, which is actuarially reduced from the amount to which he or she
would have been entitled had he or she retired on his or her normal
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.
5. Cost-of-Living Adjustment.
The monthly retirement benefit being paid to all Retirees and Beneficiaries who
were receiving benefits on June 15, 1997, shall be increased by ten percent (10%).
Page 11
6. Required Distribution Date.
The Member's benefit under this Section must begin to be distributed to the
Member no later than April 1 of the calendar year following the later of the calendar year in
which the Member attains age seventy and one-half (70½) or the calendar year in which the
Member terminates employment with the City.
SECTION 7. PRE-RETIREMENT DEATH.
1. Prior to Vesting or Eligibility for Retirement.
The Beneficiary of a deceased Member who was not receiving monthly benefits
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 with Spouse as Beneficiary.
This subsection 2. applies only when the Member’s Spouse is the sole designated
Beneficiary. The Spouse Beneficiary of any Member who dies and who, at the date of his or her
death was vested or eligible for early or normal retirement, shall be entitled to a benefit as
follows:
A. If the Member was vested, but not eligible for normal or early retirement,
the Spouse 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 Spouse 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 Spouse 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
Spouse 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
Spouse 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 Spouse Beneficiary may not elect an optional form of benefit, however,
the Board may elect to make a lump sum payment pursuant to Section 9,
subsection 7.
D. A Spouse 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.
E. Notwithstanding anything contained in this Section to the contrary, in any
event, distributions to the Spouse Beneficiary will begin by December 31
of the calendar year immediately following the calendar year in which the
Member died, or by a date selected pursuant to the above provisions in this
Section that must be on or before December 31 of the calendar year in
which the Member would have attained 70½.
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F. If the surviving Spouse Beneficiary commences receiving a benefit under
subsection A or B above, but dies before all payments are made, the
actuarial value of the remaining benefit will be paid to the Spouse
Beneficiary's estate in a lump sum.
3. Deceased Members Vested or Eligible for Retirement with Non-Spouse
Beneficiary.
This subsection applies only when the Member's Spouse is not the Beneficiary or
is not the sole designated Beneficiary, but there is a surviving Beneficiary. The Beneficiary of
any Member who dies and who, at the date of his or her death was vested or eligible for early or
normal retirement, shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal or early retirement,
the Beneficiary will receive a benefit payable for ten (10) years. The
benefit will begin by December 31 of the calendar year immediately
following the calendar year in which the Member died. The benefit will
be calculated as for normal retirement based on the deceased Member's
Credited Service and Average Final Compensation and actuarially reduced
to reflect the commencement of benefits prior to the normal retirement
date.
B. If the deceased Member was eligible for normal or early retirement, the
Beneficiary will receive a benefit payable for ten (10) years, beginning on
the first day of the month following the Member's death. The benefit will
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 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 9.,
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.
E. If a surviving Beneficiary commences receiving a benefit under subsection
A or B above, but dies before all payments are made, the actuarial value of
the remaining benefit will be paid to the surviving Beneficiary's estate by
December 31 of the calendar year of the Beneficiary's death in a lump
sum.
F. If there is no surviving Beneficiary as of the Member's death, and the
estate is to receive the benefits, the actuarial equivalent of the Member's
entire interest must be distributed by December 31 of the calendar year
containing the fifth anniversary of the Member's death.
G. The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9 shall
determine the payment period for the calendar year benefits commence, if
necessary to satisfy the regulations.
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:
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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 (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.
SECTION 9. OPTIONAL FORMS OF BENEFITS.
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 of the survivor. Except where the Retiree's
joint pensioner is his or her Spouse, the payments to the joint pensioner as
a percentage of the payments to the Retiree shall not exceed the applicable
percentage provided for in the applicable table in the Treasury regulations.
See Q & A-2 of 1.401(a)(9)-6)
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 of the Member's Retirement.
D. A member may elect a percentage of benefit in a lump sum as follows:
(1) Five (5) percent lump sum benefit with ninety-five (95) percent
paid under the normal form or as per A., B. or C. above.
(2) Ten (10) percent lump sum benefit with ninety (90) percent paid
under the normal form or as per A., B. or C. above.
(3) Fifteen (15) percent lump sum benefit with eighty-five (85) percent
paid under the normal form or as per A., B. or C. above.
Page 14
(4) Twenty (20) percent lump sum benefit with eighty (80) percent
paid under the normal form or as per A., B. or C. above.
2. The Member, upon electing any option of this Section, will designate the joint
pensioner (subsection 1.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 Member were married at the time of
Member's Retirement and are divorced subsequent 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 Beneficiary 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 of said 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 designated 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:
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. 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.
C. 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 thereafter,
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.
D. 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
Page 15
amounts computed as if the Member had retired under the option on the
date on which his or her death occurred.
E. The Member's benefit under this Section must begin to be distributed to
the Member no later than April 1 of the calendar year following the later
of the calendar year in which the Member attains age seventy and one-half
(70½) or the calendar year in which the Member terminates employment
with the City.
6. A Retiree may not change his or her retirement option after the date of cashing or
depositing his or her first retirement check.
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 that the
total commuted value of the monthly income payments to be paid do not exceed one thousand
dollars ($1,000.00). Any such payment made to any 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 System with regard to such Member and shall not be subject to review by
anyone, but shall be final, binding and conclusive on all persons.
SECTION 10. BENEFICIARIES.
1. Each Member or Retiree may, on a form provided for that purpose, signed and
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 designated 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. The Board shall establish administrative claims procedures to be utilized in
processing written requests ("claims"), on matters which affect the substantial rights of any
person ("Claimant"), including Members, Retirees, Beneficiaries, or any person affected by a
decision of the Board.
2. The Board shall have the power to subpoena and require the attendance of
witnesses and the production of documents for discovery prior to and at any proceedings
provided for in the Board's claims procedures. 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 Florida Statutes.
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
Page 16
Members in such a manner as to show the name, address, date of employment and date of
termination of employment.
SECTION 13. RESERVED.
SECTION 14. MAXIMUM PENSION.
1. Basic Limitation.
Notwithstanding any other provisions of this System to the contrary, the Member
contributions paid to, and retirement benefits paid from, the System shall be limited to such
extent as may be necessary to conform to the requirements of Code Section 415 for a qualified
retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan member may not receive an annual benefit that
exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the
applicable adjustments in Code Section 415(b) and subject to any additional limits that may be
specified in this System. For purposes of this Section, "limitation year" shall be the calendar
year.
2. Adjustments to Basic Limitation for Form of Benefit.
If the form of benefit without regard to any benefit increase feature is not a
straight life annuity, then the Code Section 415(b) limit applicable at the annuity starting date is
reduced to an actuarially equivalent amount (determined using the assumptions specified in
Treasury Regulation Section 1.415(b)-1(c)(2)(ii)) that takes into account the death benefits under
the form of benefit.
3. Benefits Not Taken into Account.
For purposes of this Section, the following benefits shall not be taken into account
in applying these limits:
A. Any ancillary benefit which is not directly related to retirement
income benefits;
B. Any other benefit not required under §415(b)(2) of the Code and
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b)(1).
4. COLA Effect.
Effective on and after January 1, 2003, for purposes of applying the limits under
Code Section 415(b) (the "Limit"), the following will apply:
A. A Member's applicable limit will be applied to the Member's annual
benefit in the Member's first calendar year of benefit payments without
regard to any automatic cost of living adjustments;
B. thereafter, in any subsequent calendar year, a Member's annual benefit,
including any automatic cost of living increases, shall be tested under the
then applicable benefit limit including any adjustment to the Code Section
415(b)(1)(A) dollar limit under Code Section 415(d), and the regulations
thereunder; but
C. in no event shall a Member's benefit payable under the System in any
calendar year be greater than the limit applicable at the annuity starting
Page 17
date, as increased in subsequent years pursuant to Code Section 415(d)
and the regulations thereunder.
Unless otherwise specified in the System, for purposes of applying the limits
under Code Section 415(b), a Member's applicable limit will be applied taking into consideration
cost of living increases as required by Section 415(b) of the Code and applicable Treasury
Regulations.
5. Other Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty-two (62), the limit prescribed by this Section shall be reduced in
accordance with regulations issued by the Secretary of the Treasury
pursuant to the provisions of Code Section 415(b) of the Code, so that
such limit (as so reduced) equals an annual straight life benefit (when such
retirement income benefit begins) which is equivalent to a one hundred
sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two
(62).
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service as a full-time employee of the police or fire department
of the City, the adjustments provided for in A. above shall not apply.
C. The reductions provided for in A. above shall not be applicable to pre-
retirement death benefits paid pursuant to Section 7.
D. In the event the Member's retirement benefit becomes payable after age
sixty-five (65), for purposes of determining whether this benefit meets the
limit set forth in subsection 1 herein, such benefit shall be adjusted so that
it is actuarially equivalent to the benefit beginning at age sixty-five (65).
This adjustment shall be made in accordance with regulations promulgated
by the Secretary of the Treasury or his or her delegate.
6. Less than Ten (10) Years of Service.
The maximum retirement benefits payable under this Section to any Member who
has completed less than ten (10) years of Credited Service with the City shall be the amount
determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is
the number of the Member's years of Credited Service and the denominator of which is ten (10).
The reduction provided by this subsection cannot reduce the maximum benefit below 10%. The
reduction provided for in this subsection shall not be applicable to pre-retirement death benefits
paid pursuant to Section 7.
7. Participation in Other Defined Benefit Plans.
The limit 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 Code Section 414(j) maintained by the
City shall apply as if the total benefits payable under all City defined benefit plans in which the
Member has been a member were payable from one plan.
8. Ten Thousand Dollar ($10,000) Limit.
Notwithstanding the foregoing, the retirement benefit payable with respect to a
Member shall be deemed not to exceed the limit set forth in this Section if the benefits payable,
with respect to such Member under this System and under all other qualified defined benefit
Page 18
pension plans to which the City contributes, do not exceed ten thousand dollars ($10,000) for the
applicable Plan Year and for any prior Plan Year and the City has not any time maintained a
qualified defined contribution plan in which the Member participated.
9. 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 determined by the Board
and the plan administrator of such other plans, and next, by reducing or allocating 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 Board and the plan administrator for such
other plans provided, however, that necessary reductions may be made in a different manner and
priority pursuant to the agreement of the Board and the plan administrator of all other plans
covering such Member.
10. Service Credit Purchase Limits.
A. Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as
allowed in Section 26 and 27, then the requirements of this Section will be
treated as met only if:
(1) the requirements of Code Section 415(b) are met, determined by
treating the accrued benefit derived from all such contributions as
an annual benefit for purposes of Code Section 415(b), or
(2) the requirements of Code Section 415(c) are met, determined by
treating all such contributions as annual additions for purposes of
Code Section 415(c).
(3) For purposes of applying subparagraph (1), the System will not fail
to meet the reduced limit under Code Section 415(b)(2)(c) solely
by reason of this subparagraph (3), and for purposes of applying
subparagraph (2) the System will not fail to meet the percentage
limitation under Section 415(c)(1)(B) of the Code solely by reason
of this subparagraph (3).
B. For purposes of this subsection the term "permissive service credit" means
service credit—
(1) recognized by the System for purposes of calculating a Member's
benefit under the plan,
(2) which such Member has not received under the plan, and
(3) which such Member may receive only by making a voluntary
additional contribution, in an amount determined under the
System, which does not exceed the amount necessary to fund the
benefit attributable to such service credit.
Effective for permissive service credit contributions made
in limitation years beginning after December 31, 1997, such term may, if
otherwise provided by the System, include service credit for periods for
which there is no performance of service, and, notwithstanding clause
Page 19
B.(2), may include service credited in order to provide an increased
benefit for service credit which a Member is receiving under the System.
C. For purposes of applying the limits in this subsection 10., only and for no
other purpose, the definition of compensation where applicable will be
compensation actually paid or made available during a calendar year,
except as noted below and as permitted by Treasury Regulations Section
1.415(c)-2, or successor regulations. Unless another definition of
compensation that is permitted by Treasury Regulations Section 1.415(c)-
2, or successor regulation, is specified by the System, compensation will
be defined as wages within the meaning of Code Section 3401(a) and all
other payments of compensation to an employee by an employer for which
the employer is required to furnish the employee a written statement under
Code Sections 6041(d), 6051(a)(3) and 6052 and will be determined
without regard to any rules under Code Section 3401(a) that limit the
remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for
agricultural labor in Code Section 3401(a)(2).
(1) However, for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be
included in compensation but for an election under Code Sections
125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For calendar
years beginning after December 31, 2000, compensation will also
include any elective amounts that are not includible in the gross
income of the employee by reason of Code Section 132(f)(4).
(2) For limitation years beginning on and after January 1, 2007,
compensation for the calendar year will also include compensation
paid by the later of 2½ months after an employee's severance from
employment or the end of the calendar year that includes the date
of the employee's severance from employment if:
(a) the payment is regular compensation for services during the
employee's regular working hours, or compensation for
services outside the employee's regular working hours
(such as overtime or shift differential), commissions,
bonuses or other similar payments, and, absent a severance
from employment, the payments would have been paid to
the employee while the employee continued in employment
with the employer; or
(b) the payment is for unused accrued bona fide sick, vacation
or other leave that the employee would have been able to
use if employment had continued.
(3) Back pay, within the meaning of Treasury Regulations Section
1.415(c)-2(g)(8), shall be treated as compensation for the limitation
year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be
included under this definition.
D. Notwithstanding any other provision of law to the contrary, the Board may
modify a request by a Member to make a contribution to the System if the
amount of the contribution would exceed the limits provided in Code
Section 415 by using the following methods:
Page 20
(1) If the law requires a lump sum payment for the purchase of service
credit, the Board may establish a periodic payment deduction plan
for the Member to avoid a contribution in excess of the limits
under Code Sections 415(c) or 415(n).
(2) If payment pursuant to subparagraph (1) will not avoid a
contribution in excess of the limits imposed by Code Section
415(c), the Board may either reduce the Member's contribution to
an amount within the limits of that section or refuse the Member's
contribution.
11. Additional Limitation on Pension Benefits.
Notwithstanding anything herein to the contrary:
A. The normal 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 one hundred
percent (100%) of his or her Average Final Compensation. However,
nothing contained in this Section shall apply to supplemental 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 a different employer's
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. MINIMUM DISTRIBUTION OF BENEFITS.
1. General Rules.
A. Effective Date. Effective as of January 1, 1989, the Plan will pay all
benefits in accordance with a good faith interpretation of the requirements
of Code Section 401(a)(9) and the regulations in effect under that section,
as applicable to a governmental plan within the meaning of Code Section
414(d). Effective on and after January 1, 2003, the Plan is also subject to
the specific provisions contained in this Section. The provisions of this
Section will apply for purposes of determining required minimum
distributions for calendar years beginning with the 2003 calendar year.
B. Precedence. The requirements of this Section will take precedence over
any inconsistent provisions of the Plan.
C. TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Section other than this subsection 1.C., distributions
may be made under a designation made before January 1, 1984, in
accordance with Section 242(b)(2) of the Tax Equity and Fiscal
Responsibility Act (TEFRA) and the provisions of the plan that related to
Section 242(b)(2) of TEFRA.
2. Time and Manner of Distribution.
A. Required Beginning Date. The Member's entire interest will be
distributed, or begin to be distributed, to the Member no later than the
Member's required beginning date which shall not be later than April 1 of
Page 21
the calendar year following the later of the calendar year in which the
Member attains age seventy and one-half (70 ½) or the calendar year in
which the Member terminates employment with the City.
B. Death of Member Before Distributions Begin. If the Member dies before
distributions begin, the Member's entire interest will be distributed, or
begin to be distributed no later than as follows:
(1) If the Member's surviving spouse is the Member's
sole designated beneficiary, then distributions to the surviving
spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Member
died, or by a date on or before December 31 of the calendar year in
which the Member would have attained age 70 ½, if later, as the
surviving spouse elects.
(2) If the Member's surviving spouse is not the Member's sole
designated beneficiary, then, distributions to the designated
beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Member
died.
(3) If there is no designated beneficiary as of September 30 of the year
following the year of the Member's death, the Member's entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Member's death.
(4) If the Member's surviving spouse is the Member's sole designated
beneficiary and the surviving spouse dies after the Member but
before distributions to the surviving spouse begin, this subsection
2.B., other than subsection 2.B.(1), will apply as if the surviving
spouse were the Member.
For purposes of this subsection 2.B. and subsection 5.,
distributions are considered to begin on the Member's required
beginning date or, if subsection 2.B.(4) applies, the date of
distributions are required to begin to the surviving spouse under
subsection 2.B.(1). If annuity payments irrevocably commence to
the Member before the Member's required beginning date (or to
the Member's surviving spouse before the date distributions are
required to begin to the surviving spouse under subsection 2.B.(1)),
the date distributions are considered to begin is the date
distributions actually commence.
C. Death After Distributions Begin. If the Member dies after the required
distribution of benefits has begun, the remaining portion of the Member's
interest must be distributed at least as rapidly as under the method of
distribution before the Member's death.
D. Form of Distribution. Unless the Member's interest is distributed
in the form of an annuity purchased from an insurance company or in a
single sum on or before the required beginning date, as of the first
distribution calendar year distributions will be made in accordance with
this Section. If the Member's interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder
will be made in accordance with the requirements of Section 401(a)(9) of
the Code and Treasury regulations. Any part of the Member's interest
Page 22
which is in the form of an individual account described in Section 414(k)
of the Code will be distributed in a manner satisfying the requirements of
Section 401(a)(9) of the Code and Treasury regulations that apply to
individual accounts.
3. Determination of Amount to be Distributed Each Year.
A. General Requirements. If the Member's interest is paid in the form of
annuity distributions under the Plan, payments under the annuity will
satisfy the following requirements:
(1) The annuity distributions will be paid in periodic payments made
at intervals not longer than one year.
(2) The Member's entire interest must be distributed pursuant to
Section 6, Section 7, Section 8, or Section 9 (as applicable) and in
any event over a period equal to or less than the Member's life or
the lives of the Member and a designated beneficiary, or over a
period not extending beyond the life expectancy of the Member or
of the Member and a designated beneficiary. The life expectancy
of the Member, the Member's spouse, or the Member's beneficiary
may not be recalculated after the initial determination for purposes
of determining benefits.
B. Amount Required to be Distributed by Required Beginning Date. The
amount that must be distributed on or before the Member's required
beginning date (or, if the Member dies before distributions begin, the date
distributions are required to begin under Section 7.) is the payment that is
required for one payment interval. The second payment need not be made
until the end of the next payment interval even if that payment interval
ends in the next calendar year. Payment intervals are the periods for
which payments are received, e.g., monthly. All of the Member's benefit
accruals as of the last day of the first distribution calendar year will be
included in the calculation of the amount of the annuity payments for
payment intervals ending on or after the Member's required beginning
date.
C. Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Member in a calendar year after the first
distribution calendar year will be distributed beginning with the first
payment interval ending in the calendar year immediately following the
calendar year in which such amount accrues.
4. General Distribution Rules.
A. The amount of an annuity paid to a Member's beneficiary may not exceed
the maximum determined under the incidental death benefit requirement
of Code Section 401(a)(9)(G), and effective for any annuity commencing
on or after January 1, 2008, the minimum distribution incidental benefit
rule under Treasury Regulation Section 1.401(a)(9)-6, Q&A-2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasury
Regulation Section 1.401-1(b)(1)(I) or any successor regulation thereto.
As a result, the total death or disability benefits payable may not exceed
25% of the cost for all of the Members' benefits received from the
retirement system.
Page 23
5. Definitions.
A. Designated Beneficiary. The individual who is designated as the
beneficiary under the Plan and is the designated beneficiary under Section
40l(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.
B. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Member's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Member's required
beginning date. For distributions beginning after the Member's death, the
first distribution calendar year is the calendar year in which distributions
are required to begin pursuant to Section 7.
SECTION 16. MISCELLANEOUS PROVISIONS
.
1. Interest of Members in System.
All assets of the Fund are held in trust, and at no time prior to the satisfaction of
all liabilities under the System with respect to Retirees and Members and their Spouses or
Beneficiaries, shall any part of the corpus or income of the Fund be used for or diverted to any
purpose other than for their 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 benefits of Members or
a Member's Beneficiaries.
3. Qualification of System.
It is intended that the System will constitute a qualified public pension plan under
the applicable provisions of the Code for a qualified plan under Code Section 401(a) and a
governmental plan under Code Section 414(d), as now in effect or hereafter amended. Any
modification or amendment of the System may be made retroactively, if necessary or
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 Forfeitures.
Forfeitures arising from terminations of service of Members shall serve only to
reduce future City contributions.
5. Prohibited Transactions.
Effective as of January 1, 1989, a Board may not engage in a transaction
prohibited by Code Section 503(b).
6. USERRA.
Page 24
Effective December 12, 1994, notwithstanding any other provision of this System,
contributions, benefits and service credit with respect to qualified military service are governed
by Code Section 414(u) and the Uniformed Services Employment and Reemployment Rights Act
of 1994, as amended. To the extent that the definition of "Credited Service" sets forth
contribution requirements that are more favorable to the Member than the minimum compliance
requirements, the more favorable provisions shall apply.
7. Vesting.
A. Member will be 100% vested in all benefits upon attainment of the Plan's
age and service requirements for the Plan's normal retirement benefit; and
B. A Member will be 100% vested in all accrued benefits, to the extent
funded, if the Plan is terminated or experiences a complete discontinuance
of employer contributions.
8. Electronic Forms.
In those circumstances where a written election or consent is not required by the
Plan or the Code, an oral, electronic, or telephonic form in lieu of or in addition to a written form
may be prescribed by the Board. However, where applicable, the Board shall comply with
Treas. Reg. § 1.401(a)-21.
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 in
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 determined 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 future 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 the assets 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.
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.
Page 25
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 accrued
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 retirement 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 proportionately 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, provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder 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 benefit, 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 contributions to 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.
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.
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. DOMESTIC RELATIONS ORDERS; RETIREE DIRECTED
PAYMENTS EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY.
1. Domestic Relations Orders.
Page 26
A. Prior to the entry of any domestic relations order which affects or purports
to affect the System's responsibility in connection with the payment of
benefits of a Retiree, the Member or Retiree shall submit the proposed
order to the Board for review to determine whether the System may
legally honor the order.
B. If a domestic relations order is not submitted to the Board for review prior
to entry of the order, and the System is ordered to take action that it may
not legally take, and the System expends administrative or legal fees in
resolving the matter, the Member or Retiree who submits such an order
will be required to reimburse the System for its expenses in connection
with the order.
2. Retiree Directed Payments.
The Board may, upon written request by a Retiree or by a dependent, when
authorized by a Retiree or the Retiree's Beneficiary, authorize the System to withhold from the
monthly retirement payment those funds that are necessary to pay for the benefits being received
through the City, to pay the certified bargaining agent of the City, to make payment to insurance
companies for insurance premiums and to make any payments for child support or alimony.
3. Exemption 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:
A. The committing, aiding or abetting of an embezzlement of public
funds;
B. The committing, aiding or abetting of any theft by a public officer
or employee from employer;
Page 27
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes;
E. The committing of an impeachable offense;
F. 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; or
G. The committing on or after October 1, 2008, of any felony defined in
Section 800.04, Florida Statutes, against a victim younger than sixteen
(16) years of age, or any felony defined in Chapter 794, Florida Statutes,
against a victim younger than eighteen (18) years of age, by a public
officer or employee through the use or attempted use of 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 by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of
guilt is withheld and the accused is placed on probation; or a conviction by the Senate of an
impeachable offense.
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
indemnify, 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 from any
suit in whole or part, or waive any other substantive or procedural rights the City may have.
Page 28
.
3. This Section shall not apply nor shall the City be responsible in any manner to
defend or pay for claims arising out of acts or omissions of members of the Board which
constitute felonies or gross malfeasance or gross misfeasance in office.
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. Credited Service purchased pursuant to this section shall not count toward
vesting.
SECTION 23. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; ELIMINATION OF MANDATORY DISTRIBUTIONS
1. Rollover Distributions.
A. General.
This Section applies to distributions made on or after January 1, 2002.
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.
B. Definitions.
(1) 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 expectancies)
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. Effective
January 1, 2002, any portion of any distribution which would be includible
in gross income will be an eligible rollover distribution if the distribution
is made to an individual retirement account described in section 408(a); to
an individual retirement annuity described in section 408(b); to a qualified
Page 29
defined contribution plan described in section 401(a) or 403(a) that agrees
to separately account for amounts so transferred (and earnings thereon),
including separately accounting for the portion of such distribution which
is includibe in gross income and the portion of such distribution which is
not so includible ; or on or after January 1, 2007, to a qualified defined
benefit plan described in Code Section 401(a) or to an annuity contract
described in Code Section 403(b), that agrees to separately account for
amounts so transferred (and earnings thereon), including separately
accounting for the portion of the distribution that is includible in gross
income and the portion of the distribution that is not so includible. .
(2) 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; effective January 1, 2002, an
eligible deferred compensation plan described in section 457(b) of the
Code which is maintained by an eligible employer described in section
457(e)(1)(A) of the Code and which agrees to separately account for
amounts transferred into such plan from this plan; Effective January 1,
2002, an annuity contract described in section 403(b) of the Code; a
qualified trust described in section 401(a) of the Code; or effective
January 1, 2008, a Roth IRA described in Section 408A of the Code, that
accepts the distributee's eligible rollover distribution. This definition shall
also apply in the case of an eligible rollover distribution to the surviving
Spouse.
(3) Distributee: A distributee includes an employee or former employee. It
also includes the employee's or former employee's surviving spouse and
the employees' or former employee's spouse or former spouse. Effective
January 1, 2007, it further includes a nonspouse beneficiary who is a
designated beneficiary as defined by Code Section 401(a)(9)(E).
However, a nonspouse beneficiary may rollover the distribution only to an
individual retirement account or individual retirement annuity established
for the purpose of receiving the distribution and the account or annuity
will be treated as an "inherited" individual retirement account or annuity.
(4) Direct Rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund.
On or after January 1, 2002, the System will accept, solely for the purpose of
purchasing Credited Service as provided herein, permissible Member requested transfers of
funds from other retirement or pension plans, Member rollover cash contributions and/or direct
cash rollovers of distributions made on or after January 1, 2002, as follows:
A. Transfers and Direct Rollovers or Member Rollover Contributions from
Other Plans. The System will accept either a direct rollover of an eligible
rollover distribution or a Member contribution of an eligible rollover
distribution from a qualified plan described in section 401(a) or 403(a) of
the Code, from an annuity contract described in section 403(b) of the Code
or from an eligible plan under section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state. The System
will also accept legally permissible Member requested transfers of funds
from other retirement or pension plans.
B. Member Rollover Contributions from IRAs. The system will accept a
Member rollover contribution of the portion of a distribution from an
Page 30
individual retirement account or annuity described in section 408(a) or
408(b) of the Code that is eligible to be rolled over.
3. Elimination of Mandatory Distributions.
Notwithstanding any other provision herein to the contrary, in the event this Plan
provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by
law, for an amount in excess of one-thousand dollars ($1,000.00), such distribution shall be made
from the Plan only upon written request of the Member and completion by the Member of a
written election on forms designated by the Board, to either receive a cash lump sum or to
rollover the lump sum amount.
SECTION 24. REEMPLOYMENT AFTER RETIREMENT
.
1. Any Retiree who is retired under this System, except for disability retirement as
previously provided for, may be reemployed by any public or private employer, except the City,
and may receive compensation from that employment without limiting or restricting in any way
the retirement benefits payable under this system. Reemployment by the City shall be subject to
the limitations set forth in this Section.
2. After normal retirement. Any retiree who is retired under normal retirement
pursuant to this system and who is reemployed by the city in any capacity, shall upon being
reemployed, continue receipt of retirement benefits during any such employment period. A
retiree who returns to work under the provisions of this section shall not be eligible for
membership in this system, and, therefore, shall not accumulate additional credited service for
subsequent periods of employment described in this section, shall not be required to make
contributions to the system, nor shall he or she be eligible for any other benefit other than the
retiree's normal retirement benefit.
3. Any Retiree who is retired under normal retirement pursuant to this System and
who is reemployed by the City after that retirement and, by virtue of that reemployment is
ineligible to participate in this System, shall, during the period of such reemployment, continue
to receive retirement benefits previously earned. Former DROP participants shall begin receipt
of benefits under these circumstances.
4. After early retirement. Any Retiree who is retired under early retirement
pursuant to this System and who subsequently becomes an employee of the City in any capacity,
shall discontinue receipt of benefits from the System until the earlier of termination of
employment or such time as the reemployed Retiree reaches the date that he or she would have
been eligible for normal retirement under this system had he or she continued employment and
not elected early retirement. “Normal retirement” as used in this subsection shall be the current
normal retirement date provided for under this System. A Retiree who returns to work under the
provisions of this Section shall not be eligible for membership in the System, and, therefore,
shall not accumulate additional Credited Service for subsequent periods of employment
described in this section, shall not be required to make contributions to the system, nor shall he
or she be eligible for any other benefit other than the Retiree's early retirement benefit when he
or she again becomes eligible as provided herein. Retirement pursuant to an early retirement
incentive program shall be deemed early retirement for purposes of this Section if the Member
was permitted to retire prior to the customary retirement date provided for in the System at the
time of retirement.
.
5. Reemployment of terminated vested personsReemployed terminated vested
persons shall not be subject to the provisions of this section until such time as they begin to
Page 31
actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as
normal or early Retirees for purposes of applying the provisions of this section and their status as
an early or normal retiree shall be determined by the date they elect to begin to receive their
benefit.
6. DROP Participants. Members or retirees who are or were in the Deferred
Retirement Option Plan shall, following termination of employment after DROP participation,
have the options provided for in this section for reemployment.
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.
2. Participation.
A. Eligibility to Participate.
In lieu of terminating his or her 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.
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
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 or her permissible
period of participation in the DROP as determined under
subsection 2.C.; or
Page 32
(b) termination of his or her 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 or her DROP Account. Any amounts remaining
in his or her DROP Account shall be paid to him or her in
accordance with the provisions of subsection 4. when he or she
terminates his or her employment as a General Employee.
(3) A Member who terminates his or her 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 or her accrued benefit under
the System shall be determined on the date his or her election to
participate in the DROP first becomes effective. For purposes of
determining the accrued benefit, the Member's Salary for the
purposes of calculating his or her Average Final Compensation
shall include an amount equal to any lump sum payments which
would have been paid to the Member and included as Salary as
defined herein, had the Member retired under normal retirement
and not elected DROP participation. Member contributions
attributable to any lump sums used in the benefit calculation and
not actually received by the Member shall be deducted from the
first payments to the Member's DROP Account. 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 for Retirees in the
System) while he or she is a participant in the DROP. After a
Member commences participation, he or she shall not be permitted
to again contribute to the System nor shall he or she be eligible for
disability or pre-retirement death benefits, except as provided for
in Section 24, Reemployment After Retirement.
(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 or her employment as a
General Employee, no amounts shall be paid to him or her from
the System until he or she terminates his or her 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 or her employment as a General Employee.
3. Funding.
A. Establishment of DROP Account.
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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 System.
(1) As of the first day of each month of a Member's period of
participation in the DROP, the monthly retirement benefit he or
she would have received under the System had he or she
terminated his or her employment as a General Employee and
elected to receive monthly benefit payments thereunder shall be
transferred to his or her 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 or she terminates his or her employment
as a General Employee.
(2) 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:
(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
or her account to be determined as provided above. The Member
may, in writing, elect to change his or her election only once
during his or her 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
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subsequent to the end of the previous quarter and prior to
distribution. If a Member fails to terminate employment after
participating in the DROP the permissible period of DROP
participation, then beginning with the Member's 1st month of
employment following the last month of the permissible period 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, and not cost-of-living
adjustments shall be applied to the Member's credit during such
period of continued employment. 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 or she accrue additional Credited Service, except as
provided for Section 24, Reemployment After Retirement.
4. Distribution of DROP Accounts on Termination of Employment.
A. Eligibility for Benefits.
A Member shall receive the balance in his or her DROP
Account in accordance with the provisions of this subsection 4. upon his
or her 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 or her termination of employment as a General
Employee.
B. Form of Distribution.
(1) Unless the Member elects otherwise, distribution of his or her
DROP Account shall be made in a cash lump sum, subject to the
direct rollover provisions set forth in subsection 4.F. Elections
under this paragraph shall be in writing and shall be made in such
time or manner as the Board shall determine.
(2) If a Member dies before his or her benefit is paid, his DROP
Account shall be paid to his Beneficiary in such optional form as
his or her Beneficiary may select. If no Beneficiary designation is
made, the DROP Account shall be distributed to the Member's
estate.
C. Date of Payment 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.
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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.
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 of the DROP's assets shall be placed in the
Board. The members of the Board may appoint from their number such
subcommittees with such 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.
B. Individual Accounts, Records and Reports.
The Board shall maintain, 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, in
convenient form such data as may be necessary for the valuation of the
assets and liabilities of the DROP. The Board shall prepare and distribute
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.
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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.
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.
6. General Provisions.
A. Amendment of DROP.
The DROP may be amended by an ordinance of the 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 of the 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.
B. Facility of Payment.
If a Member or other person entitled to a benefit under the
DROP is unable to care for his or her affairs because of illness or accident
or is a minor, the Board shall direct that any benefit due him or her shall
be made. Any payment so made shall be a complete discharge of the
liabilities of the DROP for that benefit.
C. Information.
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Each Member, Beneficiary or other person entitled to a
benefit, before any benefit shall be payable to him or her or on his or her
account under the DROP, shall file with the Board the information that it
shall require to establish his or her 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 System, direct that such payment and all remaining
payments otherwise due such person be canceled on the records of the
System. Upon such cancellation, the System shall have no further liability
therefor except that, in the event such person or his or her Beneficiary later
notifies the Board of his or her whereabouts and requests the payment or
payments due to him or her under the DROP, the amount so applied shall
be paid to him or her 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 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 or her current address
and any subsequent changes in his or her address. Any notice
required to be given to a Member or Retiree hereunder shall be
deemed given if directed to him or her 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 or her 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
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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 26. PRIOR GOVERNMENT SERVICE
.
Unless otherwise prohibited by law, and except as provided for in Section 1, the years or
fractional parts of years that a Member (except a Mayor or Commissioner Member) previously
served as a full-time General Employee with the City of Ocoee during a period of previous
employment and for which period Accumulated Contributions were withdrawn from the Fund, or
the years and fractional parts of years that a member served as a General Employee for any other
municipal, county or special district department in the State of Florida or jurisdiction other than
the State of Florida, shall be added to his or her years of 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 this System for the years or
fractional parts of years 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
years of Credited Service.
2. Multiple requests to purchase credited service pursuant to this section may be
made at any time prior to retirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his or her request for credit, but not later than his or her retirement date, and shall be
made in one (1) lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section for jurisdictions other than the City of
Ocoee, when combined with credited service purchased pursuant to Section 27, Military Service
Prior to Employment, shall be five (5) years of Credited Service and shall count for all purposes,
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except vesting. There shall be no maximum purchase of credit for prior service with the City of
Ocoee and such credit shall count for all purposes, including vesting.
5. In no event, however, may Credited Service be purchased pursuant to this Section
for prior service with any other governmental agency, if such prior service forms or will form the
basis of a retirement benefit or pension from another retirement system or plan as set forth in the
Maximum Pension Section of the plan document.
SECTION 27. MILITARY SERVICE PRIOR TO EMPLOYMENT
.
The years or fractional parts of years that a Member (except a Mayor or Commissioner
Member) serves or has served on active duty 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 and honorably or under honorable conditions, prior to first and initial
employment with the City shall be added to his or her years of 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 this System for the years or
fractional parts of years 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
years of Credited Service.
2. Multiple requests to purchase credited service pursuant to this section may be
made at any time prior to retirement.
3. Payment by the Member of the required amount shall be made within six (6)
months of his or her request for credit, but not later than his or her retirement date, and shall be
made in one (1) lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section, when combined with credited service
purchased pursuant to Section 26, Prior Government Service with jurisdictions other than the
City of Ocoee, shall be five (5) years.
5. Credited Service purchased pursuant to this Section shall count for all purposes,
except vesting.
SECTION 28. PURCHASE OF CREDITED SERVICE FOR AIR TIME.
Unless otherwise prohibited by law, any Member (except a Mayor or Commissioner
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:
A. The member 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 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.
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C. Payment by the member of the 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. The maximum combined purchase under this section and sections 26 and
27 shall be five (5) years.
ksh\noc\ocoee\gen\05-04-09.ord
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