Item #07 First Reading of Ordinance Amending the City of Ocoee Police Officers' & Firefighters' Trust Fund
AGENDA ITEM COVER SHEET
Meeting Date: August 17, 2010
Item # 1
Contact Name:
Contact Number:
Charles J. Brown
407.905.3163
Reviewed By:
Department Director:
City Manager:
Subject: Proposed Ordinance Amending the Police Officers' & Firefighters
Background Summary:
The Pension Board for the City of Ocoee Police and Fire Retirement Trust Fund is governed by ordinance.
Issue:
Amendment to the Police and Fire Pension Ordinance to include the Pension Protection Act of 2006 and
subsequent regulations and guidance from the IRS, as well as other changes to the Internal Revenue Code and
Regulations, changes to the State law and the adoption of Chapter 2009-07, Laws of Florida. Letter from Lee
Dehner, P.A. summarizing proposed changes.
Recommendations:
It is the recommendation of the Police and Fire Pension board that the attached Ordinance amendment by
approved as proposed.
Attachments:
An Ordinance amendment drafted by legal counsel for the Police and Fire Pension Board and Actuarial report of
No Impact from Foster & Foster Actuarial Consultants
Financial Impact:
No Financial impact as stated by Foster and Foster Actuarial Consultants
Type of Item: (please mark with an "x")
Public Hearing
-L Ordinance First Reading
Ordinance Second Reading
Resolution
Commission Approval
Discussion & Direction
For Clerk's Deot Use:
_ Consent Agenda
_ Public Hearing
Regular Agenda
~ Original DocumenUContract Attached for Execution by City Clerk
_ Original DocumenUContract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by 0
Reviewed by legal counsel for P&F Pension Trust
N/A
N/A
N/A
Law Offices
Christiansen & Dehner, P~A~
63 Sarasota Center Blvd. Suite 107 Sarasota, Florida 34240 . 941-377-2200 . Fax 941-377-4848
June 10,20 I 0
Mr. Charlie Brown
Ocoee Police Off. & Firefighters' Ret. Trust Fund
175 N. Bluford Avenue
Ocoee, Florida 34761
Re: City of Ocoee Police Officers' & Firefighters' Retirement Trust Fund - Proposed
Ordinance
Dear Charlie:
Enclosed please find a proposed ordinance amending the City of Ocoee Police Officers' &
Firefighters' Retirement Trust Fund, which is recommended for adoption by the City Commission.
With the adoption of the Pension Protection Act of 2006 and subsequent regulations and guidance
from the Internal Revenue Service, as well as other changes to the Internal Revenue Code and
Regulations, changes to State law and the recent adoption of Chapter 2009-97, Laws of Florida, the
following amendments to the pension plan are proposed:
I. Section 1, Definitions, is being amended for Internal Revenue Code (IRC) changes
and changes to the Uniformed Services Employment and Reemployment Rights Act
(USERRA), to amend the definitions of:
a. Actuarial Equivalent - IRC
b. Credited Service - USERRA
c. Firefighter - 2009-97 LOF
d. Salary - added language to exclude pay for police officers' extra duty details
and IRC
2. Section 3, Board of Trustees, is being amended to increase the terms of office for the
members of the board from two years to four years. This is an optional proposed
change. 2009-97 LOF
3. Section 4, Finances and Fund Management, is being amended to allow the fund to
invest up to 25% of the fund's assets at market value in foreign securities, as
permitted by Chapter 175 and 185, Florida Statutes, and expanded investment
authority. 2009-97 LOF
Mr. Charlie Brown
June 10,2010
Page 2
4. Section 5, Contributions, is being amended for clarification oflanguage to satisfy the
requirements of the actuary for the State of Florida.
5. Section 6, Benefit amounts and eligibility, is being amended to add subsection 6.,
Required Distribution Date. - IRC
6. Section 7, Pre-Retirement Death, is being amended to comply with IRC changes
regarding non-spouse beneficiaries.
7. Section 8, Disability, is being amended to comply with Chapter 175 and 185, Florida
Statutes, and to clarifY the conditions under which a disabled retiree may be recalled
to duty.
8. Section 9, Vesting, has been amended to remove language which conflicts with the
newer Section 29., Reemployment After Retirement.
9. Section 10, Optional Forms of Benefits, has been amended to:
a. Cite an appropriate Treasury Regulation - IRC
b. Amend subsection 2. - Recommended by Plan Actuary
c. Add a new subsection E. - IRC
d. Amend subsection 7. - IRC
10. Section 15, Maximum Pension, has been totally re-written to comply with lRC
changes.
11. Section 16, Minimum Distribution of Benefits, is being amended for lRC changes.
12. Section 17, Miscellaneous provisions, is being amended for changes to the IRC,
USERRA and Chapter, Florida Statutes, general compliance language.
13. Section 18, Repeal or Termination of System, is being amended for IRC changes to
eliminate outdated language and to comply with recent legislative changes to the
termination language. 2009-97 LOF
14. Section 19, Exemption from Execution, non-assignability, is being amended to add
the requirement that members who are involved in a divorce will provide a copy of
the proposed court order to the Board for review prior to submitting it to the Court.
This review will avoid the entry of an order requiring the plan to make payments to
an ex-spouse which are not legally permissible and avoid possible expenses to the
Board in seeking the repeal of any such orders. This amendment also allows a retiree
to direct retirement benefit deductions for payments to the City or to insurance
companies for benefits such as health insurance, as permitted by Chapter 175 and
185, Florida Statutes. This is a non-mandatory, no-cost recommended amendment.
Mr. Charlie Brown
June 10,2010
Page 3
15. Section 21, Forfeiture of Pension, is being amended to include a recent amendment
to Section 112.3173, Florida Statutes, which is applicable to all Florida pension
plans.
16. Section 25, Direct Transfers of Eligible Rollover Distributions; Elimination of
Mandatory Distributions, is being amended to comply with IRC changes.
17. Section 26, Prior Police or Fire Service, is being amended to allow for multiple
requests to purchase Credited Service and to correct a section reference, as well as
provide for the no cost buy-back of prior police or fire service for federal and other
state, county or municipal service under certain conditions. A buy-back for prior
police or fire service within the State of Florida is currently in the plan. 2009-97
LOF
18. Section 27, Deferred Retirement Option Plan, has been amended to remove the 12
month election window, as well as add a provision to provide for the inclusion of an
amount equal to any lump sum payments which would have been paid to a member
and included as salary for purposes of determining the member's accrued benefit had
he retired and not entered the DROP. This avoids a possible penalty in the
calculation of the benefit if a member enters the DROP rather than actually retiring
at normal retirement. This section is also being amended to remove unnecessary
language regarding distribution of DROP account funds.
19. Section 28, Military Service Prior to Employment, is being amended to allow for
multiple requests to purchase Credited Service.
By copy of this letter to the Board's actuary, Foster & Foster, Inc., I am requesting that they
provide you with a letter indicating the cost, if any, associated with the adoption of this ordinance.
If you have any questions with regard to this ordinance, please feel free to give me a call.
If you or any member of your staff have any questions with regard to this ordinance, please
feel free to give me a call. In addition, if you feel it would be appropriate for me to be present at the
meeting at which this ordinance is considered by the City Commission, please contact my office to
advise me of the date that the ordinance would be considered.
Yours very truly,
--:LXv
H. Lee Dehner
I-ILD/ksh
enclosure
e-copy:
Douglas Lozen, with enclosure
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL POLICE
OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST
FUND; AMENDING AND RESTATING IN FULL,
ORDINANCE NUMBER 91-09, AS SUBSEQUENTLY
AMENDED; 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 ofthe State of Florida and Chapter
166, Florida Statutes.
SECTION 2: The present ordinances number 91-09,94-06 and 94-07, adopted by the City
Commission of the City ofOcoee, are hereby amended and restated in full as set forth in THE CITY
OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' 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 affect the remaining portions hereof.
SECTION 5. Effective Date. This ordinance shall take effect upon second reading and
adoption.
PASSED AND ADOPTED this_ day of ,20_.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
Beth Eikenberry, City Clerk
By:
S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED
READ FIRST TIME
READ SECOND TIME AND ADOPTED
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS _ day of , 20_.
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
By:
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD ON
, 20_ UNDER
AGENDA ITEM NO.
CITY OF OCOEE
MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS'
RETIREMENT TRUST FUND
SECTION 1. DEFINITIONS.
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, only that portion
of 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 dGtGulliuGd 011 the, basis of aGtdalial Gqu.i vakile,} using
asstlillpti011S adopted by the DOald sue,h that bGilefit GalGUlatioll~ are, 110t subjGct to City Dise,l et~on.
a benefit or amount of equal value. based upon the RP2000 Combined Healthy Mortality Table
(unisex) and an interest rate of eight (8%) per annum. This definition may only be amended bv the
City pursuant to the recommendation ofthe Board using assumptions adopted bv the Board with the
advice of the pIan's actuary. such that actuarial assumptions are not subiect to City discretion.
Average Final Compensation means one-twelfth (1/12) of the average Salaryofthe five (5)
best years of the last ten (10) years of Credited Service prior to Retirement, termination, or death,
or the career average as a full-time Police Officer or Firefighter, whichever is greater. 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 Police Officer or Firefighter with Member contributions, when required, omitting intervening years
or fractional parts of years when such Member was not employed by the City as a Police Officer or
Firefighter. A Member may voluntarily leave his or her Accumulated Contribution in the Fund for
a period of five (5) years after leaving the employ of the Police or Fire Department pending the
possibility of being reemployed as a Police Officer or Firefighter, without losing credit for the time
that he or she was a Member of the System. If a vested Member leaves the employ of the Police or
Fire Department, his or her Accumulated Contributions will be returned upon his or her written
request. If a Member who is not vested is not reemployed as a Police Officer or Firefighter with the
Police or Fire Department 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 Accumulated Contributions, ifmore than one-thousand dollars
($1,000.00), will be returned only upon the written request of the Member and upon completion of
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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 a Member's Accumulated Contributions, all of his or her
rights and benefits under the System are forfeited and terminated. Upon any reemployment, a Police
Officer or a Firefighter shall not receive credit for the years and fractional parts of years of service
for which he has withdrawn his Accumulated Contributions from the Fund, unless the Police Officer
or Firefighter repays into the Fund the contributions he has withdrawn, with interest, as determined
by the Board, within ninety (90) days after his reemployment.
The years or fractional parts of a year that a Member sel ye.s ill the. miEtary SGl y iCG of thG
AUlled fOlces oftllG United Statcs, thG Ullitcd States Melchant Mal~nG or thG U:litGd States Coast
Guald, YOluutalily 01 inyolulltalily, performs "Qualified Military Service" consisting ofvoluntary
or involuntary "service in the uniformed services" as defined in the Uniformed Services Employment
and Reemployment Rights Act (USERRA) (P.L.I03-353) after separation from employment as a
Police Officer or Firefighter with the City 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.
1\:8. The Member 11'l't!St1'eturn~ to his or her employment as a Police Officer or Firefighter
within one (1) year from the earlier of the date of his or her military discharge or his
or her release from service. unless otherwise required by USERRA.
D. ThG MembGl is Gntitkd to IeeuiploylllGllt tlJ1dGl tIle pray isions of the Uu~founed
Sel y ices Employllle!lt and Reelllploymellt Rights Act (USERRA), (r.L. 103-J5J).
C. The maximum credit for military service pursuant to this paragraph shall be five (5)
years.
D. This paragraph is intended to satisfy the minimum requirements ofUSERRA. To the
extent that this paragraph does not meet the minimum standards ofUSERRA. 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 relatinl]: 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 of this System has also accumulated Credited Service in another
pension system maintained by the City, then such other Credited Service shall be used in determining
vesting as provided for in Section 9, and for determining eligibility for early or normal retirement.
Such other Credited Service will not be considered in determining benefits under this System. Only
his or her Credited Service and Salary under this System on or after his or her 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 Police Officer or Firefighter.
EffGdiye Date III cans the date 011 which this oId~nallCG becomes cffGct~ve.
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Firefi ghter means an actively employed full-time person employed by the City, including his
or her initial probationary employment period, who is certified as a Firefighter as a condition of
emplo;:nent in accordance :vith the provisions of 9633.35, Florida Statutes, and whose duty it is to
extmgUIsh fires, to protect hfe and to protect property. The term includes all certified, supervisory.
an~ command personnel whose duties include, in whole or in part, the supervision, training,
gUIdance, and management responsibilities of full-time firefighters, part-time firefighters. or
auxiliary firefighters but does not include part-time firefighters or auxiliary firefighters.
Fund means the trust fund established herein as part of the System.
Member means an actively employed Police Officer or Firefighter who fulfills the prescribed
membership requirements. Benefit improvements which, in the past, have been provided for by
amendments to the System adopted by City ordinance, and any benefit improvements which might
be made in the future shall apply prospectively and shall not apply to Members who terminate
employment or who retire prior to the effective date of any ordinance adopting such benefit
improvements, unless such ordinance specifically provides to the contrary.
Plan Year means the twelve (12) month period beginning October 1 and ending September
30 of the following year. .
Police Officer means an actively employed full-time person, employed by the City, including
his or her initial probationary employment period, who is certified as a Police Officer as a condition
of employment in accordance with the provisions of 9943 .1395, Florida Statutes, who is vested with
authority to bear arms and make arrests, and whose primary responsibility is the prevention and
detection of crime or the enforcement of the penal, traffic, or highway laws of the State of Florida.
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 for services rendered to the City as a Police Officer or
Firefighter reported on the Member's W -2 form, excluding pay for police officers' extra dutv details,
pIus all tax deferred or tax sheltered items of income derived from elective employee payroll
deductions or salary reductions. Compensation in excess of the limitations set forth in Section
401 (a)(17) of the Code shall be d~51"galdcd 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 Januarv 1,2002, mav not exceed $200,000, as adiusted 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. Ifthe 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 subiect 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 PIan Year
beginning after December 31, 1995.
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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 Police Officers' and Firefighters' Retirement
Trust Fund as contained herein and all amendments thereto.
SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
All Police Officers and Firefighters as of October 1, 1991, and all future new Police
Officers and Firefighters, shall become Members of this System as a condition of employment.
2. Membership.
Each Police Officer or Firefighter 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 ofthis ordinance are hereby vested in a Board
of Trustees. The Board of Trustees is hereby designated as the plan administrator. The Board shall
consist offive (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal residents
of the City, who shall be appointed by the Ocoee City Commission, and two of whom shall be
Members of the System, who shall be elected by a majority of the Police Officers and Firefighters
who are Members of the System. The fifth Trustee shall be chosen by a majority ofthe 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 two (2) four (4) year term unless he or she sooner vacates the office. Each resident
Trustee shall serve as Trustee for a period oft'iVO (2) 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 oft~o (2) four (4) years, unless he
or she sooner leaves the employment of the City as a Police Officer or Firefighter 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 in office. DROP participants can be
elected as but not vote for elected trustees. 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 from voting as the result of a conflict of interest provided that Trustee
states in writing the nature of the conflict.
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4. The Board shall engage such actuarial, accounting, legal, and other services as shall
be required to transact the business of the System. The compensation of all persons engaged by the
Board and all other expenses of the Board necessary for the operation of the System shall be paid
from the Fund at such rates and in such amounts as the Board shall agree.
5. The duties and responsibilities of the Board shall include, but not necessarily be
limited to, the following:
A. To construe the provisions of the System and determine all questions arising
thereunder.
B. To determine all questions relating to eligibility and membership.
C. To determine and certifY the amount of all retirement allowances or other
benefits hereunder.
D. To establish uniform rules and procedures to be followed for administrative
purposes, benefit applications and all matters required to administer the
System.
E. To distribute to Members, at regular intervals, information concerning the
System.
F. To receive and process all applications for benefits.
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 ofthe 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 any prior
Municipal Police Officers' and Firefighters' Retirement Trust Fund.
2. The actual custody and supervision of the Fund (and assets thereof) shall be vested
in the Board. Payment ofbenefits 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 Police Officers' and Firefighters' 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 offunds for the City. However, any funds so deposited with the Finance Director ofthe
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City shall be kept in a separate fund by the Finance Director or clearly identified as such funds of
the Municipal Police Officers' and Firefighters' Retirement Trust Fund. In lieu thereof, the Board
shall deposit the funds of the Municipal Police Officers' and Firefighters' Retirement Trust Fund in
a qualified public depository as defined in S280.02, Florida Statutes, which depository with regard
to such funds shall conform to and be bound by all ofthe 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 ofthese,
for the purposes of investment decisions and management. Such investment manager shall have
discretion, subject to any guidelines as prescribed by the Board, in the investment of all Fund assets.
4. All funds and securities ofthe System may be commingled in the Fund, provided that
accurate records are maintained at all times reflecting the financial composition of the Fund,
including accurate current accounts and entries as regards the following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the City, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the City showing a detailed listing of assets and a statement of all income and
disbursements during the year. Such income and disbursements must be reconciled with the assets
at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on
both a cost and market basis, as well as other items normally included in a certified audit.
6. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to' said Fund, subject, however,
and in any event to the authority and power of the Ocoee City Commission
to amend or terminate this Fund, provided that no amendment or Fund
termination shall ever result in the use of any assets of this Fund except for
the payment of regular expenses and benefits under this System, except as
otherwise provided herein. All contributions from time to time paid into the
Fund, and the income thereof, without distinction between principal and
income, shall be held and administered by the Board or its agent in the Fund
and the Board shall not be required to segregate or invest separately any
portion of the Fund.
D. All mOn~G6 paid iHto 01 held in the r urld shall be in vested and 1 G~n v ,sted by
HiG Doald arid the. ill v GsbnGnt of all 01 ci.liy p= t of SUGh fuuds 611.111 be limited
t\J.
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(I) AlUluity and life illSUl anee COllt! acts with life illSWallCC eOlllpallies ill
anlounts sufficicIlt to pi 0 v idc, ill ~ llolc or ill pa11, tbc bCllcfits to
which all of thc Mcnlbcls ill tLc fUl1d shall bc cntitled urldGl tbc
pi 0 v isiolls oftIlis Sy stenl al1d pay tIle initial and subsequcllt pH:l11i unl
tb(.l COli.
(2) Tilue or sa v il1gs aCCOUl1ts of a lIatiollal bank, a state bank illswed by
tile Dank InsUl allCC fund 01 a sa v ings/buildil1g alld loan assoeiatioll
illSUICd by tLc Savillgs Association Il1sural1cc fUl1d wllicll is
adlui1liste1cd by tLc fcderal Deposit Insurance CorpOlatioll 01 a state
01 ['Cdclal cllartCled eledit Ullioll whose s11ale aceoullts ale illswcd by
tLc National Clcdit Uniol1 Sbalc InSU1ancc fUl1d.
(3) ObligatiolIs of tIle UlIited States 01 obligations gua1anteed as to
plincipal and intelest by tLc govellllllent oftLc Unitcd States.
(4) DOllds issued by tIle State ofIslael.
(5) Stocks, eOlllnlinglcd fUl1ds adlllil1isteted by l1atiol1al 01 state banks,
nlutual furlds and bonds 01 OtIICl C v idellecs of illdebtcd1less, plO v ided
that:-
(a) Exccpt as Plovided ill palag1apll (b), all illd;vidually Ildd
cquity and debt sccwities alld all equity al1d debt securities ill
a GOlllUlillgled Ollllutual fund 111USt be issued 01 gUalalltecd by
a GOrpOl ation olganiz.ed undcl tk laws oftLc Ullited States,
any state 01 olganized tenitory of the Ullitcd States, 01 tIle
Distl iet of Coluulbia.
(b) Up to ten pelCel1t (10%) of tIle asscts in tLc fund lllay bc
ill v csted ill ['01 cign seeLll ities.
(c) Tbc Doald sllalll10t illvest luOle tllan five perC(.11t (5%) of its
assets ill the eOl11111011 stock, Gapital stock, 01 COil vel tib1c
seGur itics of any OlIC issuil1g COlllpany, 1101 sllall tIle aggl egate
in vCstl11Cllt ill anyone issuil1g GOtllpany ex Geed fi ve pel CGll1
(5%) of tIle outstalldillg Gapital stoek of tilat GOu1pal1y, 1101
sllall tIle aggl Ggate of its in v e.stnKIlts ill GOl11111011 stock,
capital stoGk and COlI Vel tible seGUr ities at 111.11 kct c.<ceed
seventy pelccnt (70%) of the assets of tk fund.
B. All monies paid into or held in the Fund shall be invested and reinvested bv
the Board and the investment of all or any part of such funds shall be subiect
to the following:
ill Notwithstanding anv limitation provided for in Chapter 185 and 175.
Florida Statutes to the contrary (unless such limitation may not be
amended by local ordinance) or anv limitation in prior city ordinances
to the contrary. all monies paid into or held in the Fund mav be
invested and reinvested in such securities. investment vehicles or
property wherever situated and ofwhatever 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
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no event. however. shall more than twenty-five percent of the assets
of the Fund at market value be invested in foreign securities.
ill The Board shall develop and adopt a written investment policy
statement settinf?: forth permissible types of investments. goals and
obiectives of investments and setting quality and quantity limitations
on investments in accordance with the recommendations of its
investment consultants. The investment policy statement shall be
reviewed by the Board at least annually.
ill In addition. the Board mav. upon recommendation bv 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 lp"oup trust. such
group trust is itself adopted as a part of the System or plan.
C. At least once every three (3) years, and more often as determined by the
Board, the Board shall retain a professionally qualified independent
consultant, as defined in Sections 175.071 and 185.06, Florida Statutes, to
evaluate the performance of all current investment managers and make
recommendations regarding the retention of all such investment managers.
These recommendations shall be considered by the Board at its next regularly
scheduled meeting.
D. The Board may retain in cash and keep unproductive of income such amount
of the Fund as it may deem advisable, having regard for the cash
requirements ofthe System.
E. Neither the Board nor any Trustee shall be liable for the making, retention or
sale of any investment or reinvestment made as herein provided, nor for any
loss or diminishment of the Fund, except that due to his or its own
negligence, willful misconduct or lack of good faith.
F. 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.
G. 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.
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H. 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.
I. 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.
J. Any overpayments or underpayments from the Fund to a Member, Retiree or
Beneficiary caused by errors of computation shall be adjusted with interest
at a rate per annum approved by the Board in such a manner that the
Actuarial Equivalent of the benefit to which the Member, Retiree or
Beneficiary was correctly entitled to, shall be paid. Overpayments shall be
charged against payments next succeeding the correction or collected in
another manner if prudent. Underpayments shall be made up from the Fund
in a prudent manner.
K. The Board shall sustain no liability whatsoever for the sufficiency of the Fund
to meet the payments and benefits herein provided for.
M. 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 shall be required to make regular
contributions to the Fund in the amount of seven and six tenths percent
(7.6%) of his or her Salary. Member contributions withheld by the City on
behalf of the Member shall be deposited with the Board immediately after
each pay period. 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 ofthe System, such contributions shall be considered to be Member
contributions.
B. Method. Such contributions shall be made by payroll deduction.
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2. State Contributions.
Any monies received or receivable by reason of laws of the State of Florida, for the
express purpose of funding and paying for retirement benefits for Police Officers and Firefighters
of the City shall be deposited in the Fund comprising part of this System immediately and under no
circumstances more than five (5) days after receipt by the City.
3. 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. diffG1weG in each yeal, bctweGll the. total aggregate Membel
eOiltlibutiollS fOl the yeal, plus state COlltributious fOl sueh yeal, and the total eost fOl the year the
required City contribution, as shown by the most 1 eeent applicable actuarial valuation of the System.
The total eost fOl ally y(,a1 shall be defill(,d as the total nOulial cost plus the add~tional arnount
6ufficielit to alilortize the unfUl1dcd past SCl v iG~ liability a5 plO v ided in r al t 'VII of Chaptel 112,
rIOlida Statute.s.
4. 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.
A Member's normal retirement date shall be the first day of the month coincident
with, or next following the earlier of the completion of twenty- five (25) years of Credited Service,
regardless of age, or the attainment of age fifty-five (55) and the completion of ten (10) 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 coincident with or
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 and one-half percent (3.5%) of Average Final
Compensation, for each year of Credited Service.
3. Early Retirement Date.
A Member may retire on his or her early retirement date which shall be the first day
of any month coincident with or next following the attainment of age forty-five (45) and the
completion of five (5) years of Credited Service. Early retirement under the System is Retirement
from employment with the City on or after the early retirement date and prior to the normal
retirement date.
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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 determined based upon his or her
actual years of Credited Service 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 on 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,
determined based upon his or her actual years of Credited Service; 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,
reduced by three percent (3%) for each year to age 50 and actu ari ally reduced
from age 50 to age 45, by which the commencement of benefits precedes the
date which would have been the Member's normal retirement date determined
based upon his actual years of credited service.
5. Supplemental Benefit.
Effective October 1,2004, all current and future retirees and effective October
1, 2008 only those who retired prior to October 1, 2008, retired under the early or normal retirement
provision, their joint pensioners or beneficiaries, shall receive a supplemental benefit in the amount
of two hundred dollars ($200) per month reduced as for early retirement if applicable. Disability
retirees and vested terminated persons shall not receive this supplement.
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(70Y2) or the calendar year in which the Member terminates
employment with the City.
SECTION 7. PRE-RETIREMENT DEATH.
1. Prior to Vesting or Eligibilitv 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
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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 A verage 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 or early 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 10,
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 Beneficiarv will begin bv 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 vear in which
the Member would have attained 70Y2.
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 paidto the Spouse Beneficiarv's estate
in a lump sum.
~ Deceased Members Vested or Eligible for Retirement with Non-Spouse Beneficiarv.
This subsection applies only when the Member's Spouse is not the Beneficiary or is
not the sole designated Beneficiarv, but there is a surviving Beneficiarv. The Beneficiarv of anv
Member who dies and who, at the date of his death was vested or eligible for earlv or normal
retirement. shall be entitled to a benefit as follows:
A. If the Member was vested, but not eligible for normal or earlv retirement. the
Beneficiary will receive a benefit pavable for ten (10) years. The benefit will
begin bv 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
A verage final Compensation and actuariallv 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) vears, beginning on the
first day of the month following the Member's death. The benefit will be
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calculated as for normal retirement based on the deceased Member's Credited
Service and Average Final Compensation as of the date of his death and
reduced for early retirement, if applicable.
C. A Beneficiary may not elect an optional form of benefit, however the Board
mav elect to make a lump sum payment pursuant Section 10, subsection 7.
D. A Beneficiary, may, in lieu of any benefit provided for in A or B above, elect
to receive a refund of the deceased Member's Accumulated Contributions.
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 bv 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. DISABILITY.
1. Disability Benefits In-Line of Dutv.
Any Member who shall become totally and permanently disabled to the extent that
he or she is unable, by reason of a medically determinable physical or mental impairment, to render
useful and efficient service as a Police Officer or Firefighter, which disability was directly caused
by the performance of his or her duty as a Police Officer or Firefighter, shall, upon establishing the
same to the satisfaction of the Board, be entitled to a monthly pension equal to three and one-half
percent (3.5%) of his or her Average Final Compensation multiplied by the total years of Credited
Service, but in any event the minimum amount paid to the Member shall be forty-two percent (42%)
of the Average Final Compensation of the Member. Terminated persons, either vested or non-
vested, are not eligible for disability benefits, except that those terminated by the City for medical
reasons may apply for a disability within thirty (30) days after termination.
2. In-Line of Duty Presumptions.'
A. Presumption. Any condition or impairment of health of a Member caused by
hypertension or heart disease shall be presumed to have been suffered in line
of duty unless the contrary is shown by competent evidence, provided that
such Member shall have successfully passed a physical examination upon
entering into such service,' including a cardiogram for Police Officer
Members, which examination failed to reveal any evidence of such condition;
and provided further, that such presumption shall not apply to benefits
payable or granted in a policy of life insurance or disability insurance.
B. Additional Presumption. The presumption provided for in this subparagraph
B. shall apply only to those conditions described in this subparagraph B. that
are diagnosed on or after January 1, 1996.
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(1) Definitions. As used in this subsection 2.B., the following definitions
apply:
(a) "Body fluids" means blood and body fluids containing visible
blood and other body fluids to which universal precautions for
prevention of occupational transmission of blood-borne
pathogens, as established by the Centers for Disease Control,
apply. For purposes of potential transmission of
meningococcal meningitis or tuberculosis, the term "body
fluids" includes respiratory, salivary, and sinus fluids,
including droplets, sputum, and saliva, mucous, and other
fluids through which infectious airborne organisms can be
transmitted between persons.
(b) "Emergency rescue or public safety Member" means any
Member employed full time by the City as a firefighter,
paramedic, emergency medical technician, law enforcement
officer, or correctional officer who, in the course of
employment, runs a high risk of occupational exposure to
hepatitis, meningococcal meningitis, or tuberculosis and who
is not employed elsewhere in a similar capacity. However,
the term "emergency rescue or public safety Member" does
not include any person employed by a public hospitallicensed
under Chapter 395, Florida Statutes, or any person employed
by a subsidiary thereof.
(c) "Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A,
hepatitis non-B, hepatitis C, or any other strain of hepatitis
generally recognized by the medical community.
(d) "High risk of occupationai exposure" means that risk that is
incurred because a person subject to the provisions of this
subsection, in performing the basic duties associated with his
or her employment:
1. Provides emergency medical treatment in a non-
health-care setting where there is a potential for
transfer of body fluids between persons;
11. At the site of an accident, fire, or other rescue or
public safety operation, or in an emergency rescue or
public safety vehicle, handles body fluids in or out of
containers or works with or otherwise handles needles
or other sharp instruments exposed to body fluids;
111. Engages in the pursuit, apprehension, and arrest of
law violators or suspected law violators and, in
performing such duties, may be exposed to body
fluids; or
IV. Is responsible for the custody, and physical restraint
when necessary, of prisoners or inmates within a
prison, jail, or other criminal detention facility, while
on work detail outside the facility, or while being
-14-
transported and, in performing such duties, may be
exposed to body fluids.
( e) "Occupational exposure," in the case of hepatitis,
meningococcal meningitis, or tuberculosis, means an
exposure that occurs during the performance of job duties that
may place a worker at risk of infection.
(2) Presumption. Any emergency rescue or public safety Member who
suffers a condition or impairment of health that is caused by hepatitis,
meningococcal meningitis, or tuberculosis, that requires medical
treatment, and that results in total or partial disability or death shall
be presumed to have a disability suffered in the line of duty, unless
the contrary is shown by competent evidence; however, in order to be
entitled to the presumption, the Member must, by written affidavit as
provided in Section 92.50, Florida Statutes, verify by written
declaration that, to the best of his or her knowledge and belief:
(a) In the case of a medical condition caused by or derived from
hepatitis, he has not:
1. Been exposed, through transfer of bodily fluids, to any
person known to have sickness or medical conditions
derived from hepatitis, outside the scope of his
employment;
11. . Had a transfusion of blood or blood components,
other than a transfusion arising out of an accident or
injury happening in connection with his present
employment, or received any blood products for the.
treatment of a coagulation disorder since last
undergoing medical tests for hepatitis, which tests
failed to indicate the presence of hepatitis;
111. Engaged in unsafe sexual practices or other high-risk
behavior, as identified by the Centers for Disease
Control or the Surgeon General ofthe United States or
had sexual relations with a person known to him to
have engaged in such unsafe sexual practices or other
high-risk behavior; or
IV. Used intravenous drugs not prescribed by a physician.
(c)
In the case of meningococcal meningitis, in the 10 days
immediately preceding diagnosis he or she was not exposed,
outside the scope of his or her employment, to any person
known to have meningococcal meningitis or known to be an
asymptomatic carrier of the disease.
In the case of tuberculosis, in the period of time since the
Member's last negative tuberculosis skin test, he or she has
not been exposed, outside the scope of his or her employment,
to any person known by him or her to have tuberculosis.
(b)
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(3) Immunization. Whenever any standard, medically recognized
vaccine or other form of immunization or prophylaxis exists for the
prevention of a communicable disease for which a presumption is
granted under this section, if medically indicated in the given
circumstances pursuant to immunization policies established by the
Advisory Committee on Immunization Practices of the U.S. Public
Health Service, an emergency rescue or public safety Member may be
required by the City to undergo the immunization or prophylaxis
unless the Member's physician determines in writing that the
immunization or other prophylaxis would pose a significant risk to
the Member's health. Absent such written declaration, failure or
refusal by an emergency rescue or public safety Member to undergo
such immunization or prophylaxis disqualifies the Member from the
benefits of the presumption.
(4) Record of Exposures. The City shall maintain a record of any known
or reasonably suspected exposure of an emergency rescue or public
safety Member in its employ to the disease described in this section
and shall immediately notifY the Member of such exposure. An
emergency rescue or public safety Member shall file an incident or
accident report with the City of each instance of known or suspected
occupational exposure to hepatitis infection, meningococcal
meningitis, or tuberculosis.
(5) Required medical tests; preemployment physical. In order to be
entitled to the presumption provided by this section:
(a) An emergency rescue or public safety Member must, prior to
diagnosis, have undergone standard, medically acceptable
tests for evidence of the communicable disease for which the
presumption is sought, or evidence of medical conditions
derived therefrom, which tests fail to indicate the presence of
infection, or, in the case of hepatitis infection. This paragraph
does not apply in the case of meningococcal meningitis.
(b) On or after June 15, 1995, an emergency rescue or public
safety Member may be required to undergo a preemployment
physical examination that tests for and fails to reveal any
evidence of hepatitis or tuberculosis.
3. Disability Benefits Not-In-Line of Duty.
Any Member with ten (10) years or more Credited Service who shall become totally
and permanently disabled to the extent that he or she is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service as a Police Officer
or Firefighter, which disability is not directly caused by the performance of his or her duties as a
Police Officer or Firefighter shall, upon establishing the same to the satisfaction of the Board, be
entitled to a monthly pension equal to three and one-half percent (3.5%) of his or her Average Final
Compensation multiplied by the total years of Credited Service. Terminated persons, either vested
or non-vested, are not eligible for disability benefits, except that those terminated by the City for
medical reasons may apply for disability within thirty (30) days after termination.
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4. Conditions Disqualifying Disability Benefits.
Each Member who is claiming disability benefits shall establish, to the satisfaction
of the Board, that such disability was not occasioned primarily by:
A. Excessive or habitual use of any drugs and/or intoxicants, or narcotics.
B. Injury or disease sustained while willfully and illegally participating in rights,
riots and/or civil insurrections or while committing a crime.
C. Injury or disease sustained while serving in any branch of the Armed
Forces.
D. Injury or disease sustained after his or her employment as a Police Officer or
Firefighter with the City of Ocoee shall have terminated.
E. For Police Officer Members, injury or disease sustained while working for
anyone other than the City and arising out of such employment.
5. Phvsical Examination Requirement.
A Member shall not become eligible for disability benefits until and unless he or she
undergoes a physical examination by a qualified physician or physicians and/or surgeon or surgeons,
who shall be selected by the Board for that purpose. The Board shall not select the Member's
treating physician or surgeon for this purpose except in an unusual case where the Board determines
that it would be reasonable and prudent to do so.
Any Retiree receiving disability benefits under provisions of this ordinance may be
periodically re-examined by a qualified physician or physicians and/or surgeon or surgeons who shall
be selected by the Board, to determine if such disability has ceased to exist. If the Board finds that
the Retiree is no longer permanently and totally disabled to the extent that he or she is unable to
render useful and efficient service as a Police Officer or Firefighter, the Board shall recommend to
the City that the Retiree be returned to performance of duty as a Police Officer or Firefighter, and
the Retiree so returned shall enjoy the same rights that he or she had at the time he or she was placed
upon pension. In the event the Retiree so ordered to return shall refuse to comply with the order
within thirty (30) days from the issuance thereof, he or she shall forfeit the right to his or her pension.
The cost ofthe physical examination and/or re-examination of the Member claiming
or Retiree receiving disability benefits shall be borne by the Fund. All other reasonable costs as
determined by the Board incident to the physical examination, such as, but not limited to,
transportation, meals, hotel accommodations, shall be borne by the Fund.
If the Police Officer or Firefighter recovers from disability and reenters the service
of the City as a Police Officer or Firefighter, his or her service will be deemed to have been
continuous, but the period beginning with the first month for which he or she received a disability
retirement income payment and ending with the date he or she reentered the service of the City will
not be considered as Credited Service for the purposes of the System. .
The Board shall have the power and authority to make the final decisions regarding
all disability claims.
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6. Disability Pavrnents.
The monthly benefit to which a Member is entitled in the event of the Member's
disability retirement shall be payable on the first day of the first month after the Board of Trustees
determines such entitlement. However, the monthly retirement income shall be payable as of the
date the Board determined such entitlement, and any portion due for a partial month shall be paid
together with the first payment. The last payment will be:
A. Ifthe Retiree recovers from the disability pi i01 to his 01 I1G1 nOdual I dit G111Gllt
date, the payment due next preceding the date of such recovery, or
B. If the Retiree dies without recovering from disability or attains his 01 hel
nounal rctill...111~11t date.. whik still disabled, the payment due next preceding
his or her death or the l20th monthly payment, whichever is later.
Provided, however, the disability Retiree may select, at any time prior to the date on
which benefit payments begin, an optional form of benefit payment as described in Section 10,
subsection l.A. or 1.B., which shall be the Actuarial Equivalent of the normal form of benefit.
7. Workers' Compensation.
When a Retiree is receiving a disability pension and workers' compensation benefits
pursuant to Florida Statute Chapter 440, for the same disability, and the total monthly benefits
received from both exceed one hundred percent (100%) of the Member's average monthly wage, as
defined in Chapter 440, Florida Statutes, the disability pension benefit shall be reduced so that the
total monthly amount received by the Retiree does not exceed one hundred percent (100%) of such
average monthly wage. The amount of any lump sum workers' compensation payment shall be
converted to an equivalent monthly benefit payable for ten (10) Years Certain by dividing the lump
sum amount by 83.9692. Notwithstanding the foregoing, in no event shall the disability pension
benefit be reduced below the greater offorty-two percent (42%) of Average Final Compensation and
two percent (2%) of Average Final Compensation times years of Credited Service.
SECTION 9. VESTING.
If a Member terminates his or her employment with the Police or Fire Department, either
voluntarily or by discharge, and is not eligible for any other benefits under this System, the Member
shall be entitled to the following:
1. If the Member has less than five (5) years Credited Service upon termination, the
Member shall be entitled to a refund of his or her Accumulated Contributions or the Member may
leave it deposited with the Fund.
2. If the Member has five (5) or more years of Credited Service upon termination, the
Member shall be entitled to a monthly retirement benefit, determined in the same manner as for
normal or early retirement and based upon the Member's Credited Service, Average Final
Compensation and the benefit accrual rate as of the date of termination, payable to him or her
commencing at Member's otherwise normal or early retirement date, determined based upon his or
her actual year of Credited Service, provided he or she does not elect to withdraw his or her
Accumulated Contributions and provided Member survives to his or her otherwise normal or early
retirement date. Ifthe 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.
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J. AllY v estGd MGIUbel oft11c Sy&tGlll ~ h05G position is tGdli.illatcd, EOI ~ hatev Gl 1 Ga5011
but '.'vho IGlnai1l5 employecl by thG City ill SOlne OthGl capacity, shall have allletilGulent bGllefit~
aGel ucd up to thc date 0 f such tGduil1atioll Unclel this S y6tGm pI GSGl '" cd, Pl0 v iclGd he 01 she dOGS not
elect to ~ithdra...'V h~5 or hGl ACGuuwlatecl COl1tributio115 Gom this System. Such acclUcd lctilGmellt
bGl.lGfits shall bG payable at his 01 hGr othGlwi5G cady (lGduGccl as fOl Gally retirement) or nOllnal
letrlement datc hereundGl, or latel, ill accoldallCc ~ith the plovic>~ons ofthi& SYStGlll.
SECTION 10. OPTIONAL FORMS OF BENEFITS.
1. In lieu of the amount and form of retirement income payable in the event of norma 1
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 Retiree for
his or her lifetime only.
B. A retirement income of a modified monthly amount, payable to the Retiree
during the lifetime of the Retiree, and following the death ofthe Retiree, one
hundred percent (1 00%), seventy-five percent (75%), sixty-six and two-thirds
percent (66-2/3%), or fifty percent (50%) of such monthly amounts payable
to a joint pensioner for his or her lifetime. 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 0 & A-2 of 1.401(a)(9)-6)
C. Such other amount and form of retirement payments or benefits as, in the
opinion of the Board, will best meet the circumstances of the retiring
Member. A lump sum benefit will be approved by the Board only in
accordance with subsection 7 of this Section 10.
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.
(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. A Member may change his or her beneficiary at any time. If a
Member has elected an option with a joint pensioner and the Member's retirement income benefits
have commenced, the Member may thereafter change his or her designated Beneficiary at any time,
but may only change his or her joint pensioner twice. Subject to the restriction in the previous
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sentence, a Member may substitute a new joint pensioner for a deceased joint pensioner. In the
absence of proof of good health of the ioint pensioner being replaced. the actuary will assume that
the ioint pensioner has deceased for purposes of calculating the new pavrnent.
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 joint pensioner in accordance with this Section, the
amount of the retirement income payable to the Retiree shall be actuarially redetermine to take into
account the age ofthe former joint pensioner, the new joint pensioner and the Retiree and to ensure
that the benefit paid is the Actuarial Equivalent of the Retiree's then-current benefit at the time of
the change. Any such Retiree shall pay the actuarial recalculation expenses. 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 ofthe Retiree subsequent to his or her Retirement shall be paid as
provided in Section 11.
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. Ifthe 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 I, 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 11.
D. If a Member continues beyond his or her normal retirement date pursuant to
the provisions of Section 6, subsection I, and dies prior to his or her actual
retirement and while an option made pursuant to the provisions of this
Section is in effect, monthly retirement income payments will be made, or a
retirement benefit will be paid, under the option to a Beneficiary (or
Beneficiaries) designated by the Member in the amount or amounts computed
as if the Member had retired under the option on the date on which his or her
death occurred.
E. The Member's benefit under this Section must begin to be distributed to the
Member no later than April 1 of the calendar vear following the later of the
calendar year in which the Member attains age seventy and one-half (70'l2)
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or the calendar year in which the Member terminates employment with the
Citv.
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 mOllthly
benefit amoul1t i5 less tha1l one hundle,d dolla1s ($100.00) 01 the, total coml1lutGd value of thG
1 G1naillillg monthly income payments to be paid do not Gxceed fi vG thousand dollals ($5,000.00) total
commuted value of the monthly income payments to be paid do not exceed one thousand dollars
($ 1,000). Any such payment made to any person pursuant to the power and discretion conferred
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 11. 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 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 and the board, in its discretion, may direct that the commuted value of the
remaining monthly income benefits be paid in a lump sum.
3. Any payment made to any person pursuant to this Section shall operate as a complete
discharge of all obligations under the System with regard to the deceased Member and any other
persons with rights under the System and shall not be subject to review by anyone but shall be final,
binding and conclusive on all persons ever interested hereunder.
SECTION 12. CLAIMS PROCEDURES.
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.
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SECTION 13. REPORTS TO DIVISION OF RETIREMENT.
Each year and no later than March 15th, the Board shall file an Annual Report with the
Division of Retirement containing the documents and information contained in Sections 175.261 and
185.221, Florida Statutes.
SECTION 14. ROSTER OF RETIREES.
The Secretary of the Board shall keep a record of all persons enjoying a pension under the
provisions of this Ordinance in which it shall be noted the time when the pension is allowed and
when the same shall cease to be paid. Additionally, the Secretary shall keep a record of all Members
and Retirees in such a manner as to show the name, address, date of employment and date of
termination of employment.
SECTION 15. MAXIMUM PENSION.
1. Basic Limitation.
Subject to the adjustments hG1Ginaftel set forth, the maX~ll1Um amount of annual
re-tirGille.nt income payable ~ ith respect to a Member unde,r this SYStGlll shall not Gxceed one. hundred
6ixty thousarld dollars ($1 GO,OOO.OO).
fOl pur poses of applyirlg the abo ~dirnitation, bCrlGfits payablc in any form other than
a straight life. arinuity \l9ith no ancill=y be.1lGfits sLall be adjust,d, as 11rOvidGd by Tre.asury
RGgulations, so that suell ben, fits ale the, Actuarial equivalent of a sttaight life arl1wity. for
purposes of th~s Scetion, the:: folIo ~ ing benefits shallllot bG taken irItO acc.ourIt.
(1)
Any arleillary L"llefit v9 hieh ~s hot dil ecny r dated to retir cment
ineornG benGfits,
(2)
fulY othGr benGfit not lGquired under S415(b)(2) of thG Code and
Regulatious the.r\"LUldel to be. taken into aeeourit for pur poses of the
Erllitatioll of S415(b)(1) of the Code.
2. Palticipatioll in Othcr Defined Benefit Plans.
The limitation of this SGction w it11 1 e611GGt to any MGrlibGI ~ ho at any time has b""rl
a me.mbcr ~!l arly Onl"r defined berlefit PIM (as d"fincd in S414U) of the CodG) maintain"d by tIle
City slrall apply as iithe total berlefIts payable. urIder all d"fined b"rlGfit plans in which the M"mbc:;r
has been a me-r1Ib"r ~ere payable. from Olle pIan.
J. Adi ustlll"nts in Limitatiorls.
A. Ll th" e~~llt the MGmbGr's rGtilGment benefits beGomc payablc beJorG age
6~Aty-two (G2), thG Orl(. hundled sixty thousand dolla16 ($IGO,OOO.OO)
limitatioll plGselibGd bJ' this Section shall be lcdueGd in accordance with
RegulatiorlS is,',ueJ by th" Secretary of the Treasulj pursuant to the PlOY isiohS
of s415(b) of the, Cod" 'uut not kss than s"~ehty-fivG thousand dollars
($75,000), ifthe, benefit beg~ll,', at 01 aftel age fifty-five (55). Ll the C~Gnt the
Member's re,t~lelllc.nt b"llGfit becomes payable. bdore agG fifty-five. (55), the
sevGllty-fi ve thousand dollar ($75,000) limitatior1 shall bG rGdue,Gd flOln age
fIfty-fivG (55) ~n aGc.ordanc.e ~ith Ret;ulatiolls i5sued by the SceletalY of the
TleasurJ pUrsuant to the plov;siollS of s415(b) ofthG Code..
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D. In the. e.vCl1t the MembGr's bGHGfit is basGd on at least fifteen (15) ye.a15 of
CrGditGd Se.l vicG, tIIG adjust111Gllts plovidGd fO! in A. abovG sllallllOt apply.
C. The. reductions plovidGd fOl in A. abovG shallllOt be applicable to disability
benefits paid pursuant to SGction 8, or plc-lGtirGlllGnt dGath bGHefits paid
pUlsuant to SGCtiOll 7.
D. In thG Gv c.nt thG Me.hlbG1's rGtilemc.nt bGHcfit bGGOm~5 payable aftcr agG 5~Xty-
fivG (G5), for pmposcs of dGteunining whGthGr this bGHefit meets the
limitatioll set foIth ~11 Subscction 1 her Gin, such benefit shall bG adjusted 50
that it is actuarially equi valent to thG bGncfit bGginning at age. sixty-fi v e. (G5).
This adju;:,tlllGnt shall be madG using an assumed intGrest rate offivG pelecnt
(5%) and shall be madG in accoldallCG with lcgulations plolllulgated by the
SCGlGtar)' ofthG TIGaSUly 01 h~5 or hel ddcgatG.
4. LGs5 thall TGll '(GalS ofSGlvicG.
ThG maXlllltl1111GtilGmGnt benGLts payable. under this Section to any Mcnlbel who has
eomple.tGd le.ss than ten (10) )iGars ofCGditcd Sa v ice with the City shall be the amount dGtGlIllincd
undGl SubsGGtion 1 oftl1is Se,ctio11 multipliGd by a fraGtion, thG nUmGlatol of VlIlliGh is thG number
of the MGmbel'5 yGars ofCleditGd SGrviGG and thG d~liomi11atol of which is ten (10). The IGduGtion
pro v idcd fol ill this sub5Getion shall not be applicable. to disability bc.ncfits pa~d PUlSUallt to Section
8,01 ple-1Gtire.ment death bGnefits paid pUlsuant to Sectioll 7.
5. $10,000 Limit.
Notwithstandillg the [olG&oing, thG le,tilGlnent benefit payable w~th lCSp('ct to a
MGlllbGl shall be dGGllled not to GXGGed the limitatiolls set fodh ill this SeGtion iEthe bGncfits payabk,
with leSpGct to such M~lnbel under this SyStGlil and UndGl all othGr qnalifiGd defined bGllefit p(,nsion
pla.llS to which thG City conti ibutes, do not GXGce.d $10,000 fol the applicable. Plan '(Gar and fOl any
priol Plah Yedl d..Lid the City has 110t at any timG 11laillta~.uGd a qualifiGd define.d contribution plall ill
wh~Gh thG Me,lllbGr paltiGipatGd.
G. MelllbGr in Defined COlitr ibution PIan.
III allY GasG WhGle a MGmbGl und~l this SystGln is also a lilembGl in a "DdinGd
COI1tribution Plan" as definGd in S414(i) of thG CodG, maintainGd by the City, thG SUln of the
"DeLIled Dellefit Plan fraction" and the "Defil1Gd COlltribution Plan f71action" (both as de,finGd in
S415(G) ofthc Code) shall not, subjGct to the rGstlictions and Gxceptiom GontainGd in S2004 ofthe
Act, GXCGGd 1.0. Thisl~lllitation is IGpeakd c.f&ctive JanUaly 1,2000.
7. Reduction ofbGHGfits.
RGduction of bGllGfits and/ol cOlltribut~ohS to all plallS, whGre IGquirGd, shall bG
aCGompl~shGd by filst rGducing thG Me.111bGl'S bGnGfit unde.l ,illy de.fincd benvfit plalls i11 whic.h
MGmbGl pal tiGipate,d, such 1 Gdu.::.tiOll to be madG fil st w itll 1 espect to the, piali in which MembGl most
IGCGiltly acclued bGnefits alld thGle,aftGl ill such pliolity as shall bG dete.lll1incd by the, Doald ahd tile
plan administlatol of such othel plMs, alld 11e,<.1, by IGdaGing or allocating exccss fOrfC.~Ul~S ~?,r
defwGd GOutribution plans in wh~Gh the MG1ilbel pd..Lticipatcd, such lcductioll to be made first with
lcspect to the plan ~11 wh~ch ~iGmb\...l 1110st lccelltly accltled bGllcfits alld thcreaftel in such p~lOl~~
as shall be establ~shed by thc Doald and the. plan adllliulstratol fOI such other plalls Plovided,
howevGl, that llGeCSSd..Ly rcduction.s Inay be madc in a diffGrwt lllallllCl and priority pmsaant to the
agrCGllleut oftlle Doald alid the, plan administrator of all othel plalls Gcvcling such MGmbel.
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8. Cost-of-Livill~ Adiustmel1ts.
. The limitations as stated iil Subsections 1,2, J, aLld G hGlein shall be adjusted to the
tunc payment of a bcnd1t begiLls in aeeoLdaucc vV ith aLly cost-of-li v iug adj ustmcnts pleseL~bed by
the SCClctdL)' o[the Treasury pursuMt to S4l5(d) of the Code.
9. Additional L~mitation on reLlsioll Dcnefits.
Not~ithstallding anj1:hing herein to the eOLltIaI)'.
A. The nOdl1alretiLCllleilt beLlefit OL peL1Sioll payable to a RetiLee ~ho becomes
a Member of the S)'stem and who has not previously participated in such
SysteLll, on or after January 1, 1980, shall ilOt exceed 100 per eeL1t o[l1is OL lLeI
AvGLa.ge r~nal COL1LpeLlsatioil. IIovvevel, nothing contained in this Section
shall apply to supplemeLltal retireillent bcndlts or to pGnSiOLl inGIeases
attributable to eo&t-of-li v iug increases or adj ustmc.nts.
D. No tvkmber o[the Systelll shall be allow cd to Ieec~ ve a ret~H_ment benefit or
peIlsioLl w bieh is in paL t 01 in w hole based upon any se1 v ice with L espect to
~hich the MeLllbeL is already Lecciving" or willle.eeive. ~il the. future., a
Le.tirGHlent benefit OL pCLlsion frollL a difreLe.nt "Luplo}er' s Lctirel11"Llt Syste111
or plaLt. This LestLiction docs not apply to soeialseGU1ity belle fits OL fcde.ral
benefits unde1 Chapter G7, T~t1c 10, U.S. Code.
.L 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 4l5(b), subiect to the applicable adiustments in that section. On and
after January 1. 1995, a plan member mav not receive an annual benefit that exceeds the dollar
amount specified in Code Section 415(b)(1 )( A) ($160,000), subiect to the applicable adiustments
in Code Section 415(b) and subiect to anv additional1imits that mav be specified in this Svstem. For
purposes of this Section, "limitation year" shall be the calendar vear.
2. Adiustments to Basic Limitation for Form of Benefit.
If the form of benefit without regard to anv benefit increase feature is not a straight
life annuitv, 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.
~ 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 directlv related to retirement income
benefits;
B. Anv 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 ).
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4. COLA Effect.
Effective on and after January 1. 2003, for purposes ofapplving 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 vear of benefit payments without re1?ard to any
automatic cost of living adjustments:
B. thereafter, in any subsequent calendar year, a Member's annual benefit.
including any automatic cost ofliving increases, shall be tested under the then
applicable benefit limit including any adiustment 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 anv
calendar year be greater than the limit applicable at the annuity starting 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.
~ Other Adiustments in Limitations.
A. In the event the Member's retirement benefits become pavable 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 adiustments provided for in A. above shall not apply.
C. The reductions provided for in A. above shall not be applicable to disabilitv
benefits pursuant to Section 8, or pre-retirement death benefits paid pursuant
to Section 7.
D. In the event the Member's retirement benefit becomes payable after age sixtv-
five (65), for purposes of determining whether this benefit meets the limit set
forth in subsection 1 herein, such benefit shall be adiusted so that it is
actuariallv equivalent to the benefit beginning at age sixty-five (65). This
adiustment shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his 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 bv 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
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provided bvthis subsection cannot reduce the maximum benefit below 10%. The reduction provided
for in this subsection shall not be applicable to disability benefits paid pursuant to Section 8. or 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 anv other defined benefit plan as defined in Code Section 414(i) 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.
~ 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 pension plans
to which the City contributes, do not exceed ten thousand dollars ($10,000) for the applicable Plan
Year and for anv 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 pIan 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.
~ Service Credit Purchase Limits.
A. Effecti ve for permissive service credit contributions made in limitation years
beginning after December 3 L 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as
allowed in Section 26 and 28, then the requirements of this Section will be
treated as met only if:
ill
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
ill
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).
ill
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
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limitation under Section 415( c) (1 )(B) of the Code solely by reason of
this subparal?l"aph (3).
B. For purposes of this subsection the term "permissive service credit" means
service credit-
ill recognized by the System for purposes of calculatinf? a Member's
benefit under the plan,
ill which such Member has not received under the plan, and
ill 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 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 1.41S( 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 emplover is
required to furnish the employee a written statement under Code Sections
6041(d), 60Sl(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).
ill 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
12S(a). 402( e)(3). 402(h)(l )(B). 402(k), or 457(b). Forcalendaryears
beginning after December 31, 2000, compensation will also include
any elective amounts that are not includible in the m-oss income of the
employee by reason of Code Section 13 2(f)( 4 ).
ill For limitation years beginning on and after January 1. 2007,
compensation for the calendar year will also include compensation
paid by the later of 211 months after an employee's severance from
emplovment or the end of the calendar year that includes the date of
the employee's severance from employment if:
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ill 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
ilil 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.
ill 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 oflaw to the contrary. the Board mav
modify a request by a Member to make a contribution to the System if the
amount ofthe contribution would exceed the limits provided in Code Section
415 by using the following methods:
ill 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 ofthe limits under Code
Sections 415(c) or 415(n).
ill 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.
1.1. 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
(] 00%) of his 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 ofthe 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.
-28-
SECTION 16. MINIMUM DISTRIBUTION OF BENEFITS.
1. General Rules.
A. Effective Date. Effective as of J anuarv 1. 1989. the PIan will pav 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 L 2003. the Plan is also subiect to the
specific provisions contained in this Section. The provisions ofthis 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. RGquilGlllGntS of TIG.l5U1"y Re.g.ulatiohs L1C01pOl atcd. All dishibutiol1s
r eq uil cd tll1dGl this Sedioil w ill be detelmiilGd and {hade. in aeeOl dance ~ ith
th~ TIGJ.6thJ IGgulatiolls undGl Scction 401 (a)(9) of the Code.
17 C. TEFRA Section 242(b )(2) Elections. Notwithstanding the other provisions
of this Section other than this subsection 1.17 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) ofTEFRA.
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 the calendar year
following the later of the calendar year in which the Member attains age
seventy and one-half (70 Y2) or the calendar year in which the Member retires
U11kss othcdvi"G provided fOl ill the. Plan 01 requiled by law 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 Y2, 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 ofthe calendar year immediately following the
calendar year in which the Member died.
-29-
(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. alld subscction 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.( I). 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.(l)), the date distributions are considered to
begin is the date distributions actually commence.
C.
e 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 of subscctiolls J, 4- alld 5 of 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 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 40 I (a)(9) ofthe
Code and Treasury regulations that apply to individual accounts.
3. Determination of Amount to be Distributed Each Year.
A. General Nll1uity 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:
(I) The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
(2) Thc distlibutioll pCliod ~ill bc Ove.l a life. (Ot livc.s) 01 OvCI a pCliod
celtaill not longel dlall thc pel iod dc.se.1 ibc.d ill subsec.tiol1 4- 01 5.
(J) OIlCe. payl1lcnts havc bCgUll OvCI a pe.liod cCttain, tLc pCliod certain
~ ill llOt be. challgcd C v en if the po iod certain is shortel thall thc
111axill1ulll PClluitted.
-30-
(4) Paylllcllts ~ill citlIc.l bc nOllillclcasillg 01 illclcasc 'Only as f'OlIo\.\-s.
(a) Dy an altllual pc.JccIJtagc inclcasc tllat d'Ocs 110t excced tlIc.
cUlllulati vC at111ual pelccntagc illclcasc il1 a cost-'Of-li villo
i11dcx tllat is based '011 Pliccs of all itGllls and issued by th~
Dtllcau 'Of Lab'Ol Statistics 01 by a fixed alUlual inelcase 'Of
five PUCCllt 01 less.
(b) T'O tlIc. extent ofdlC leduetiol1 ill tIle anl'Otlllt 'Ofthc ?v1cnlbCl's
paynlcllts to p1'Ovide f01 a sUlviv'Ol bel1cfit up'On death, but
'Onlyifdle belleficiarj ~hose life was bei11g used t'O deteJluille
tIle dish ibuti'Ol1 pel iod desc1 ibed ill subsccti'On 4 dies '01 is 11'0
10lJgel tIle MembcI '$ bCl1eficiary pUIsuallt t'O a qualified
d'Olucstie Iclati'Olls Oldu ~ithilJ the 11lca11illg of Sectioll
414(p).
(c) To p1'Ovide caslllcfullds 'Of Acctllllulated COlltlibutiolls Up'Oll
the ?v1cl1lbe1'S deadl.
(d) T'O pay i11cleased benefits tLat result from a Plan anlc.ndnlclJt.
ill The Member's entire interest must be distributed pursuant to Section
6, Section 7. Section 9, or Section 10 (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 beneficiarv, 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 subscctiolJ 2.D. 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., bi-nlonthly, monthly, sClIIi-alJI1Ually, '01
ahlmally. 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. RcquilGluC.l1tS fat Alllluitv Distlibuti'Olls Tllat C'OI1JIllCl1eC DUlil1~ a MembCl's
Lifctiluc.
-31-
A. Joint Life AnllUities VnlelO the Dweficial y Is Not the Membel's Spouse. If
tl 11 I 1 ,. . b' d. '1 d' I fi f.
IG IVlell.lOc,l 5 llltGlest LS el1lg lstuoute III t lG 01111 0 a JOillt alld SUI v i v 01
.l.Lliluity fOI tIle joint Lives of the Membel and a nonspouse bGlldieialY
. b '
alulUlty paymGllt.s to e made on 01 aftel the MGlllbGI's Icqulred begi1ll11nO
date to the designated bGLle.fi(,iary aftGI thG MWlbe.I'S death must not at any
time. Gxceed thG al-lpliGable l-IGlcGntagG OftI1G a.tumity paymGllt fOI such PGliod
that would have bGel1 paya'ule to thG Membel using the table SGt tolth in
Q&A-2 ofSedioll1.401(a)(9)-GT ofthG Tleasmy IGgulatlolls. IfthG fOlln of
distlibution combine.s ajoillt and 5divivol MUlUity tol thGjoint livGS of the
MGlnbGr alld a ll01lSpOUSe. bWGficial)i and a PGliod eGltail1 alUlUit)', the
requilements in thG preceding SGntence. will apply to annuity paymGllts to be
made to tile. dGslbLlated bGndlcid.J.Y aftel the Gxpilatioll ofthe PGliod eel tail1.
D. rGliod CGl tain NulUitie.s. Unless the Membe.I's .spouse is the sole designated
bweficial)' and thG touu of distlamtioll is a PGliod eel tain and no Ii&. allllUity,
the peliod cedaill Eor au aLlnuity distlibutioll eommeae.ing dming the
Me.mbe,l's lifGtilnc alay IlOt GheGGd the, appEeable distriLutioLl p~liod fOI the
Membcr under the Uaifoull LifGtiule, Table sGt forth in Se.ctiolll.401(a)(9)-9
of thG TleasulY legalatiol1s EoI the caknd,u yeal that eOlltail1s the alumity
starting dab:.. If thc .i..Luldity stalting date Plcccdes the. yeill ill whidl the
Member 1 caches age 70, the. applicable distlibution pel iod fOI the MClllbel is
the dishibution peliod tol age 70 ulldel the. Unifollll Lifdillle Table:. sct forth
in Se.ction 1.401(a)(9)-9 of the. TleasUlY Icgulations plus the eACe.ss of 70
Ovel the age. of the M~l~lbcl a" of the. MGmber's birthday ill the year that
eOlltaills the (1.ilJ:luity stalting Jate. Ifthc MelllbGl's spoase, is thG Mem'uGl'S
sole desi~llated be,nefici<uY and the. folm of distribution is a peliod C~;i~i~
and 110 life annuity, the peliod cCltaul illay IlOt exceed thG 10llgGI of the
Membel's ap~licabk distlibation pe.riod, as de.telllliued undel this subse~t~~n
4.D., 01 the jOillt lifG alld last suJ. v i VOL cx.peetane.y of the Membel and the
Member's .spouse as dGte11n~llc.d andel the Joint and Last SUi vivol ~abl~ ~~!
fOI th Ul Section 1.401 (.1)(9)-9 oHlle Tie.asu0 legulatioLls, asillg the Member's
alLd spoase's attailled age.s as of the MeHlbel's and spouse's birthdays in the
ealelldaJ. yeal that contains the all.llaity st<'U tiJ.lg date.
5. Reyuilemellts fOl Millilnl1iu Distlibl1tions \\11eJ.e Mcmbel Dies DcfOle Date
Di.stlibutions Def?in.
A.
Meulb~J. ~al v ~ ved by ~esi~natcd.Dcne.fiG~a1): Ifthe Mell1~e~ die.s ~be.~re ~~~
date dlstubutlon of hl,s 0 hel ultelest oegJ.l1" and thele 15 a deSl191atcd
bene.ficia<y, the. MeJ.nLcl's eutil e intc'r est w ill be dish i'uutGd, beg~~li;~~ ~~
latel than the time. deselibed illsubseetioL12.D.(1) 01 2.D.(2), Ovel the Ii&. of
tile. desigJ.late.d belleficid.J.Y or OV~J. a period eeclain not eXGe:.eding.
(1)
Unkss the:. <llumity stalting date is before ~le fi~st ~ist:i~~~i~
ea.klldal )'Gal, the life e:.ApeGtaUG) of the dc..siglla:tGd bGIlGfi.eiary
det~lhlined USillg the be.neL.~iaJ. y'.s age:. as oELhe bGnGfieiacy' 05 biJ. thday
in tIle caleLlJar :year iJ.Lllllediatcly follo~ ing the.. ealendai yeal of the
MeJ.ubel'" death.
(2)
If tIle aiuluity sta.tiing date is bc.fOle th~ ~l~t di~~li~~i~~ ::~~Z~~
ye~l, the. life eAp~ctaJ.ley of the de.5ibJ.~atcd b~n\,,~Gi~y 1d~t"J.l.llil~~~
uShlf:, the beuGfiGl<hj's age as of the. DGJ.lGfielary 5 butllday ill the
calcJ.ldal ye.al the GOLltaius the aiumitj sial tiJ.lg datc.
-32-
D. No des;%nated DeneJieiary. lEthe Melllbel dies beJole the date distlibutions
begin ,hl.d there is 110 dGsignated bCl1efieiary as of S"ptGmbel 30 of the year
fullo ~ ing the yeal o[the Melnbei's death, distlibution o[the Membel's entilc
inter cst w ill be cOl11pleted by DecGmbel J 1 of the cakndal ye.ai contain~i1 0
the fifth <11J11ivG1SaiJ oftl1e Membei's death. t:>
C. Death ofSa1vi v ing. Spouse Ddore Distlibutiol1s to SUi v i v il1~ Spoase De~~ll.
If the Meillbel dies 'befule the date distlibatiotl of hi6 ~11tele.$t begills, the
Membds SUI v i v~ilg spoase is the MembG!'s sole designated benefieialY, and
the SUi v i v ing spouse dies bcfol e di6tribations to the SUi v i v ing spouse begin,
this .subsection 5 ~ill apply as if th" sUlviv~i1g spouse wele the Membel,
eAcept that the time by which distlibutions must beg~n ~ill be dGteunilied
without legald to subsectiol1 2.D.(l).
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 commencinf?: on or after
Januarv L 2008. the minimum distribution incidental benefit rule under
Treasury Regulation Section 1.40I(a)(9)-6. O&A-2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 40I(a)(9)(G) and Treasury
Regulation Section 1.401-1 (b)( 1 )(1) or any successor regulation thereto. As
a result. the total death or disability benefits payable may not exceed 25% of
the cost for all ofthe Members' benefits received from the retirement system.
62. Definitions.
A.
Designated Beneficiarv. The individual who is designated as the beneficiary
under the Plan and is the designated beneficiary under Section 40l( a)(9) ofthe
Code and Section 1.401(a)(9)-I, 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 subsectiou 2.D. Section 7.
C.
Life [xpectMCy. Life. expeGtd11Cy as coulputed by use of the Single Life
Table ~1~ Section 1.401(<1)(9)-9 of the Treasury legalatiolls.
D.
Requiled De~~lluin2. Date. The date specified in subseGt~oll 2.A.
SECTION 17. 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 ofthe corpus or income ofthe Fund be used for or diverted to any purpose other than
for their exclusive benefit.
-33-
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 Svstem.
It is intended that the System will constitute a qualified 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. .
~ Prohibited Transactions.
Effective as of January L 1989. a Board mav not engage in a transaction prohibited
by Code Section 503(b ).
Q" USERRA.
Effective December 12. 1994. notwithstanding any other provision of this Svstem.
contributions. benefits and service credit with respect to qualified military service are governed bv
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.
1.:. 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.
~ 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 mav be
prescribed bv the Board. However. where applicable. the Board shall comply with Treas. Reg. &
1.40](a)-21.
42. Use of Forfeitures.
Forfeitures arising from terminations of service of Members shall serve only to reduce
future City contributions.
-34-
SECTION 18. 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 benefitting 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. extwt that the as.set~ of the fund may be detell11iued to be illadequate.
2. If this ordinance shall be repealed, or if contributions to the System are discontinued
or if there is a transfer, merger or consolidation of government units, services or functions as
provided in Chapter 121, florida Statutes, 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, discontinuance of contributions, or transfer,. merger or
consolidation of government units, services or functions there shall be full vesting (1 00%) ofbenefits
accrued to date of repeal and the MsetS ofth<::, System shall be: allocated ill an equitable mailll<-l to
plO v ide benefits on a plOportionate basis to the. persons so entitled in accordance with the pI 0 9 isiollS
thu cof such benefits shall be nonforfeitable.
3. The follow iug shall be the orde:r of pliority fOl pur poses of allocating the assGts of the
SyStGlll as of the datc of lcpc.al of this ordillancc, 01 if contlibations to thc System ale discontinued
with thc datc of such ~iscolltinuation bcil1g dCh"unined by thc Doa...d.
A. Apportioruncllt shall first be. madc ill Icspcet of each Retilec leeciving a
lctirGlllcnt 01 disability bcncfit hGleundGl on such date, caeh pGIsonleeci v ing
a bwcfit 011 ~ach date on account of a letired 01 disabled (but since dcccased)
Melllbcr, Md cach MGrl1be:l who has, by such date, become digible for
nowlalleti1cmcnt but ha~ not yet letired, an amount whieh is thc Actuarial
[qui v alellt of such bwcfit, P10 ~ idcd that, if such a~Set value bc leSSthful tIIC
aggJ.egatc of such amoants, such amounts .shall be plopoltiollatcly rcdaccd so
that thG aggregate of Such reduee.d adlOunts will bG equal to such asset value..
D. IfthGle. be aily asset value lenlaining aftel thG apportiollincnt undGl pa...a~aph
A, appOltiolunent shall ncxt bc lllade ill lespect of each Meulba in the
SGI v iCG of the City 011 SUGh date vv ho is vestGd and ~ ho is not cntitled to an
appoltiolullwt uuda palaglaph A, in the amOullt lcquiled to pro~ide ~:
Actaal ial Dq ui valent of the vested POl tiOll of the aeer ued nouilalr etilGmGll t
bwefit (but 110t less than ACGUmalatcd Contributiolls), based on the Cleditcd
Sel vice a11d Avelage rillal Compcnsation as of such date, and each vested
foullGr Melilbel then wtitlcd to a defcrr cd bel1efit ~ ho has not, by such date,
begun rccGi v ing bGllefit payillGllts, in the amount lequiled to plOY ide sai~
Actuarial [quivalcnt of the vested pOltion ofthG aCGlued normalletirGlllent
benefit (b ut not kss tharl Accl1malated Contrlbutioll5 ), P10 v idc.d that, if such
1 Giilaining asset valuc be ks~ than thc ag~egate of the amoullts appoltiollCd
hCleUlldGl, ;:)udllattGl ,uilOUlitS shall b<:. tHOPoltiouatdy IcJuGGd 50 tl1.1t th<:.
agglegatc of sue.h leducGd atHOulltS will be equal to Such lelllain~llg a.sset
valtte:-
C. IfthGle bG allY asset value aRe! the. a.ppoltiolUllClltS Ul1dGl palagraphs A and
D, ap~ol tiolllllent sllall bc lllad~ ill 1 cspeG~ of each MC~~Gl ~~ t~l~ ~~~ v !,e~,1~~
.
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~llh~
b~U'"'&t (1ut ~lot less- - . m , vW ~ raM rIIrttl n.lle.u,
r el.Milling asset val dG be less thM the, ag~ GgatG. of t~G, aU10~l1ts ~~~O~~l~l~~~
hG1GUudu, su..,h lattel a.J.ilOUlltS shallD': p\OpOdlOllatcly lcduc-ed .s~ that ~~
aggregatc of Wdl reduced a.lHOdnts mll DG equal to such IGlllarnl1ig asset
value:
If thcre:. bG My as.:.Gt value aftG, t~lG appodiolllnGl1t~ und~l p~l<l.~aphs ~ a~~
D, app.olti01ll11ellt shall bc lnad~ 111 re5peG~ of-,G~eh ~km~~~ ;~~ ~~~~ 5~~:~~ ~!
thc CIty Ou such datc. ~ho IS uot clltltled to ~(l.. aPfO~I01~~~~~ ~l:~~
para!:,laphs A and D III thGdulount eqaal to MGwDGl s ftcctIululated
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COlltll'uu:tlons, plO v ided that, if sudllcmalnlllg asse.t v aIde. be. less than the
aggle.g~tG of the aUlocHlt.s appoltiollGd hGl GuildG! sudllattGI amount sl~all b~
plOpod1011atdy IGdaGe.d so that tIle aggle.gatc of such leduced dulOUlit.S w~ll
be e.qual to such leulaillillg asset value.
D. If tI1Gl c be. allY a5sd value. 1 eJ.naini!lg aftcI the, appol tiOlUlle.J.lts undcr
pal agl aph.s A, D, all~ C, apportiolllllGlit .shall lastly be. mad" i~~IS~p(.~t ~~ ea~l~
Membel lllcluded 11.1 palagtaph C .move to the extent of the AGtudlial
[q ui valent of ~he. no~- v csted aeGJ.tled 1 nOl.l.nal Ictire.lllellt .be~lenfit, less th~
amoant a.1?POl troJ.le.d 111 p~lagraph C, Msed on .the Cled~ted SCI v ie~ ~J.~~
A v GragcT lllal COlllpGnsatIoll as of such date" PlO v ldcd that, If SUC~l ~ ellla'n~ng
assd valae be lG.ss than the: aggrcgate onIle allloallts aPPoltioned hereu~ldcr,
sueh anlOtlllts shall be. ledueed 50 tllat the, aggtegate. of such leducc.d amoullts
will be equal to such Ic.mal11l11g a5sd value.
E. III the. G v wt tIlat thGl G bG assd val UG I Gmail1illg aftGl the full appol tion1nen t
specified ill p<haglaphs A, D, C, c:l1ld D, such cx.ce~: ~han be I~t~lned to the
City, le~s le.tUdl ofthG State's cOJ.l~!ib~tiol1s to the Statc.'j~?y~i~~~ tl~a~, ~:t~:
exc(,ss IS less tllan thG total contdbutrons madG by the CIty and the Sta:te-to
diG dat" of t"dllillatiou .such (,xcess shall be divided propoltionatdy to the
total GOllt!ibutions lllad" b, the Cty Md the. State.
Tl~ allocation of the. Y; dnd plO v ide.d for ~11 dlis Subse.e.tioJ.1 llwy, as dce.idG~ b, ~~~
~~~~.~~ ~ui::e~~:.t nuoagl,. the l'",dl=< vf ;'''",,,,,,e 'V<CPUll) ~utcue~ t~ ~'O' idG the ".~~~~;
~~~~~r: a: dan(,,, WIth tIllS SubsedlOn. Th(, rand lllay b" dr~tII!,t1t~d r~ ~~ ~~lI: ~ ~~~
p~, ili~'D~~~~~ tu "id Lcnd;ts v, n" db!' ibulioll j~' J b~ ~ar ~~~~:l in ~~d:~ ~'i~: ~~';'.:;:.:~:.;~~
a a)' dlI('('t. The fUl1d lnay be. e.ontlilued Ul c.Xlstellce for purposes of subseqoent
distlibutions.
If, ~~y tilTIe durillg the first t"ll (10) )'ea15 aft"l th~ eff~~tiv;:e ?<l:e ~:~l: ~,:!i~~~~
S~~:ll~ ~ob;,,;~~ tlJ, 3,stem, th< 3),to", ~h~ b~ t~.~n~~~ ~~ i;: ~~~ ~i:h:,'t ~~ ~~
:~~ ;!~~:~ '~l:.~h:~ ~e,,, laG!, ull)tl,ing in 1h< ~Y,k~ tv ~.~ e~:~~:::~~~w;f:;;11'~;;~~' ~~~~
~l~~~::> ;;;~ff.; ",. he ",cJ fo, tllG bGb.fit uf ~'J Obe vftho ~"'onty-fi~: ~:~l ~~~
~~~l~~"~ti ~:~~l~~ ~1 G;i y ~ dat", w llos~ antiGipatcd aullualrctilclilGJ.lt ~ll~ W~~ll~~ P~? ~ ~~~~ ~{,~~l~ Si~;;~
~~~; ]~~'~)"$ ClaDo', s nUl mal, d" 0,,, Gat dldc :' u uld eAGe.A $1,500; sJ;,,d~ a<;t ~~~~~ ~~~~~:
~~~~:~'~~~o,:; ~' ~' lUJ lUJ,Om,l ,v"'puted oJ "lUlbpl~",g ~'~ ~,~'~~:' ~:~I~,~e2 ~{::~
;~: ~~~ C::;~e' ~: ;~~' ~;,nbo,'s U ,e~ ugo .n,,~,'u c%"i?g~ ~~,g ::~ v~;:~~ l~~ ~~ ~) ?,~~ :
f,';; d~~'::~d" I ,0 """ 0 L,".'GdIn,Gth< ~fc~b, ;:date. . In .~~<. ~' ':;'t ~:."~ ~~rh:."~~;
~~ ~~1~1l~~~)' ~~~' COUlt dGe.151011, lallJ.ig oy the CO~l~!ssroIl:~ ~~ ~~:~~ ~:~lli~~, ~~
tl~~c~Y" ~~.:' :~; . '~~t~us vf nil, p~'", .ph ." "ot t1~a nccc'~u, y ;~ q~~h~ ~:~ ~::~t~::' ~,~:
c, t ! agr 11all be l1ic.ffce.tlvC wIthout th" n('(('551ty offththel amendment of thIS
oldillaJ.lce..
;. ~~~~t~~ ve.sted and aGe.ld"d be.nefits plovide.d hClcdnd(,l h~ve ~ee,i~ p:i~ :~~:~~~
all othe liabili . "11 sat~5fiGd, theJ.! and only th(ll .shall a.lly IGlliaill~!lg fUllds I('~Clt to the
gell'-lal fund o[th(, Cty.
1, The fund shall be distributed in accordance with the following procedures:
A. The Board shall determine the date of distribution and the asset value
re~uired to fund all the nonforfeitahle benefits after taking into account the
ex~enses of such distribution. The Board shall inform the City if additional
assets are required, in which event the City shall continue to financially
support the Plan until all nonforfeitable benefits have been funded.
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B. The Board shall determine the method of distribution of the asset value.
whether distribution shall be by payment in cash. by the maintenance of
another or substituted trust fund. by the purchase of insured annuities. or
otherwise. for each firefighter or police officer entitled to benefits under the
plan as specified in subsection C.
C. The Board shall distribute the asset value as of the date oftermination in the
manner set forth in this subsection. on the basis that the amount required to
provide any given retirement income is the actuarially computed single-sum
value of such retirement income. except that if the method of distribution
determined under subsection B. involves the purchase of an insured annuity.
the amount required to provide the given retirement income is the single
premium payable for such annuity. The actuarial single-sum value may not
be less than the firefighter's or police officer's Accumulated Contributions
to the Plan. with interest if provided by the Plan. less the value of any pIan
benefits previously paid to the firefighter or police officer.
D. If there is asset value remaining after the full distribution specified in
subsection C.. and after the payment of any expenses incurred with such
distribution. such excess shall be returned to the City. less return to the State
of the State's contributions. provided that. if the excess is less than the total
contributions made by the City and the State to date of termination of the
Plan. such excess shall be divided proportionately to the total contributions
made by the City and the State.
E. The Board shall distribute. in accordance with subsection B.. the amounts
determined under subsection C.
If. after twenty-four (24) months after the date the Plan terminated or the date the Board
received written notice that the contributions thereunder were being permanently discontinued. the
City or the Board of the Fund affected has not complied with all the provisions in this Section. the
Florida Department of Management Services will effect the termination of the Fund in accordance
with this Section.
SECTION 19. DOMESTIC RELATIONS ORDERS: RETIREE DIRECTED
PAYMENTS: EXEMPTION FROM EXECUTION. NON-ASSIGN ABILITY.
1. Domestic Relations Orders.
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.
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2. Retiree directed payments.
The board may. upon written request by a retiree or by a dependent, when authorized
bv a retiree or the retiree's beneficiary. authorize the system to withhold from the monthly retirement
pavrnent those funds that are necessary to pay for the benefits beinl?: received through the city. to pay
the certified bargaining agent of the city. to make pavrnent to insurance companies for insurance
premiums as permitted by Chapter 175 and 185, Florida Statutes, and to make any payments for
child support or alimony.
z ;2.. Exemption from Execution, Non-Assil!nabilitv.
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 20. 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 underpayments shall be corrected and paid
or repaid in a reasonable manner determined by the Board.
SECTION 21. 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;
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 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
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G. The committing on or after October 1.2008, of any felony defined in Section
800.04, Florida Statutes, a\?ainst a victim younger than sixteen (16) years of
age, or any felony defined in Chapter 794, Florida Statutes, against a victim
youn\?er than eil?:hteen (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 22. CONVICTION AND FORFEITURE: FALSE. MISLEADING OR
FRAUDULENT STATEMENTS.
1. It is unlawful for a person to willfully and knowingly make, or cause to be made, or
to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or
misleading oral or written statement or withhold or conceal material information to obtain any
benefit from the System.
2. A person who violates subsection 1. commits a misdemeanor of the first degree,
punishable as provided in Section 775.082 or Section 775.083, Florida Statutes.
3. In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection 1, a Member or Beneficiary of the System may, in the discretion of the
Board, be required to forfeit the right to receive any or all benefits to which the person would
otherwise be entitled under the System. For purposes of this subsection, "conviction" means a
determination of guilt that is the result of a plea or trial, regardless of whether adjudication is
withheld.
SECTION 23. 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.
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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 oflaw affording the City immunity from any suit in whole
or part, or waive any other substantive or procedural rights the City may have.
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 24. FAMILY AND MEDICAL LEAVE ACT.
The fractional parts ofthe 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 25. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
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 ofthe 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
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the distributee's designated Beneficiary, or for a specified period often.QQl
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. 1\ny Effective January 1, 2002, any portion
of any distribution which would be includible in gross income as after-tax
employee contributions 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); or to
a qualified 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 includible 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 pIan described in Code Section 40 l( a) or to an annuity
contract described in Code Section 403(b), that agrees to separatelv 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) ofthe 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)(l)(A) ofthe
Code and which agrees to separately account for amounts transferred into
such plan from this plan; effective January L 2002, an annuity contract
described in section 403(b) of the Code; or a qualified trust described in
section 401(a) of the Code; or effective January L 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, an eligible retirement pIan is an
individual retirement account or individual retirement annuity.
(3) Distributee: A distributee includes an employee or former employee. fn
add~tion It also includes, the employee's or former employee's surviving
~pouse is a distlibateG witll legald to the ~J1tGIGSt of the Spouse and the
employee's or former employee's spouse or former spouse. Effective January
L 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 pIan 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 Member rollover cash
contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as
follows:
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A. 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.
B. Member Rollover Contributions from IRAs. The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408( a) or 408(b)
of the Code that is eligible to be rolled over and would other ~~SG be
il1GlLldiblc ill ~oss il1GOmc.
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 26. PRIOR POLICE OR FIRE SERVICE.
Unless otherwise prohibited by law, and except as provided for in Section 1, the years or
fractional parts of years that a Police Officer or Firefighter previously served as a Police Officer or
Firefighter 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 Firefighter or Police Officer for any other municipal, county or special
district fire department or special law enforcement department in the State of Florid a or jurisdiction
other than the State of Florida, shall be added to his or her years of Credited Service provided that:
1. The Police Officer or Firefighter contributes to the Fund an actuarially determined
amount 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. The lequG5t shall bG Inade ollly onGe and l1lade by the M~l~lbGl O~l?: be~~~~~~:~~~
(18) month.:. froln ~he effecti v G date onlle old~11allGG adop~i~l& ~ll~~ ~I~~ i:~~~ ~l c~:h~~n g ~~ 1~~~t~5
hom the datc 0[111501 he-I ell1ploymellt 01 leelllfJloymel1t WIth the CIty Poll('(' (11 fue Depailment,
w hiehev el is late1. Multiple requests to purchase Credited Service pursuant to this Section may be
made at any time prior to Retirement.
3. Payment by the Police Officer or Firefighter of the required amount shall be made
within six (6) months of his or her request for credit and shall be made in one (1) lump sum payment
to the Board, upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section for jurisdiction other than with the city of
Ocoee when combined with credited service purchased pursuant to Section 28, Military Service Prior
to Employment, shall be five (5) years of Credited Service and shall count for all purposes, except
vesting and eligibility for not-in-line of duty disability benefits. There shall be no maximum
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purchase of credit for prior service with the City of Ocoee and such credit shall count for all
purposes, incl uding vesting.
~ In no event, however, may Credited Service be purchased pursuant to this Section for
prior service with any other municipal, county or special district fire department or special law
enforcement department, 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 Maxinlulu rGll.siol1 5GGtion of yOUl
plal1 docull1crll Section 15. subsection 11.B.
6. For purposes of determining credit for prior service as a Firefighter as provided for
in this Section. in addition to service as a Firefighter in this State. credit may be purchased bv the
Member in the same manner as provided above for federal. other state. county or municipal service
if the prior service is recognized by the Division of State Fire Marshal. as provided under Chapter
633. Florida Statutes. or the Firefighter provides proof to the Board that such service is equivalent
to the service required to meet the definition of a Firefighter under Section 1.
L For purposes of determining credit for prior service as a Police Officer as provided
for in this Section. in addition to service as a Police Officer in this State. credit may be purchased
by the Member in the same manner as provided above for federaL other state. county or municipal
service if the prior service is recognized by the Criminal Justice Standards and Training Commission
within the Department of Law Enforcement as provided under Chapter 943. Florida Statutes. or the
Police Officer provides proof to the Board that such service is equivalent to the service required to
meet the definition of a Police Officer under Section 1.
SECTION 27. DEFERRED RETIREMENT OPTION PLAN.
1. Definitions.
As used in this Section 27, the following definitions apply:"
A. "DROP" -- The Ocoee Police Officers' and Firefighters' Deferred Retirement
Option Plan.
B. "DROP Account" -- The account established for each DROP participant
under subsection 3.
2. Participation.
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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 effecti ve on the first
day of the first calendar month which is at least fifteen (15) business days
after it is received by the Board.
C. Period of participation.
A Member who elects to participate in the DROP under subsection 2.B., shall
participate in the DROP for a period not to exceed sixty (60) 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 participating in the DROP shall cease participating in the
DROP by:
(a) electing in writing, in a time and manner determined by the
Board, to cease participating in the DROP;
(b) continuing to be employed as a Police Officer or Firefighter
at the end of his period of participation in the DROP as
determined under subsection 2.C.; or
(c) terminating his employment as a Police Officer or Firefighter.
Any election made under clause (a) shall be effective on the first day
ofthe first calendar month which is at least fifteen (15) business days
after it is received by the Board.
(2) Upon the Member's termination of participation in the DROP,
pursuant to subsection (l),(a) or (b) above, all amounts provided for
in subsection 3.B., including monthly benefits and investment
earnings and losses or interest, shall cease to be transferred from the
System to his DROP Account. Any amounts remaining in his DROP
Account shall be paid to him in accordance with the provisions of
subsection 4. when he terminates his employment as a Police Officer
or Firefighter.
(3) A Member who elects to terminate his participation in the DROP
under subsection 2.D. shall not be permitted to again become a
participant in the DROP.
E. Effect of DROP Participation on the System.
(l) A Member's Credited Service and his accrued benefit under the
System shall be determined on the date his election to participate in
the DROP first becomes effective. For purposes of determining the
accrued benefit. the Member's Salary for the purposes of calculating
his Average Final Compensation shall include an amount equal to any
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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 in the System)
while he is a participant in the DROP. After a Member commences
participation, he shall not be permitted to again contribute to the
System nor shall he be eligible for disability or pre-retirement death
benefits. except as provided for in Section 29.
(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 terminates his participation in the DROP
other than by terminating his employment as a Police Officer or
Firefighter, no amounts shall be paid to him from the System until he
terminates his employment as a Police Officer or Firefighter. Unless
otherwise specified in the System, amounts transferred from the
System to the Member's DROP Account shall be paid directly to the
Member only on the termination of his employment as a Police
Officer or Firefighter.
3. Funding.
A. Establishment of DROP Account.
A DROP Account shall be established for each Member participating in the
DROP. A Member's DROP Account shall consist of amounts transferred to
the DROP under subsection 3.B., and earnings or interest on those amounts.
B. Transfers From Retirement 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 would
have received under the System had he terminated his employment as
a Police Officer or Firefighter and elected to receive monthly benefit
payments thereunder shall be transferred to his DROP Account,
except as otherwise provided for in subsection 2.D.(2). A Member's
period of participation in the DROP shall be determined in
accordance with the provisions of subsections 2.C. and 2.D., but in no
event shall it continue past the date he terminates his employment as
a Police Officer or Firefighter.
(2) Except as otherwise provided in subsection 2.D.(2), a Member's
DR 0 P Account under this subsection 3 .B. shall be debited or credi ted
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
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(b) Earnings, determined as follows:
The average daily balance in a Member's DROP Account
shall be credited or debited at a rate equal to the actual net
rate of investment return realized by the System for that
quarter. "Net investment return" for the purpose of this
paragraph is the total return of the assets in which the
Member's DROP Account is invested by the Board net of
brokerage commissions, transaction costs and management
fees.
Upon electing participation in the DROP, the Member shall elect to
receive either interest or earnings on his account to be determined as
provided above. The Member may, in writing, elect to change his
election only once during his DROP participation. An election to
change must be made prior to the end of a quarter and shall be
effective beginning the following quarter.
(3) A Member's DROP Account shall only be credited or debited with
earnings or interest and monthly benefits while the Member is a
participant in the DROP and after the Member dies, retires or
terminates his employment as a Police Officer or Firefighter. If a
Member is employed by the City Fire and Police Departments after
electing to cease participation in the DROP pursuant to subsection
2.D.(1)(a) or after participating in the DROP for five (5) years, then
beginning with the next payment following cessation ofparticipati6n
or beginning with the Member's 61st month of DROP participation,
whichever occurs first, 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 Fire and Police
Departments. A Member employed by the City Fire and Police
Departments after five (5) years of DROP participation will still not
be eligible for pre-retirement death or disability benefits, nor will he
accrue additional Credited Service, except as provided for in Section
29.
4. Distribution of DROP Accounts on Termination of Employment.
A. Eligibility for Benefits.
A Member shall receive the balance in his DROP Account in accordance with
the provisions of this subsection 4. upon his termination of employment as
a Police Officer or Firefighter. Except as provided in subsection 4.D., no
amounts shall be paid to a Member from the DROP prior to his termination
of employment as a Police Officer or Firefighter.
B. Form of Distribution.
(1)
Unless the Member elects otherwise, distribution of his DROP
Account shall be made in a cash lump sum, subject to the direct
rollover provisions set forth in subsection 4.6 E. A 1-kmbGl l11ay,
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ho ~ e~el, ded, in such time clild maiU1CI a5 the Doaid shall piGselibc,
that hi5 DROP di5tlibutioll be used to pm chase a n011fol fcitabk fixed
annuity payable ill such [olin a5 the MembGi may elect. 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 benefit is paid, his DROP Account shall
be paid to his Beneficiary in such optional form as his Beneficiary
may select. If no Beneficiary designation is made, the DROP
Account shall be distributed to the Member's estate.
C. Date ofPavrnent of Distribution.
Except as otherwise provided in this subsection 4., distribution of a Member's
DROP Account shall be made as soon as administratively practicable
following the Member's termination of employment. Distribution of the
amount in a Member's DROP account will not be made unless the Member
completes a written request for distribution and a written election, on forms
designated by the Board, to either receive a cash lump sum or a rollover of
the lump sum amount.
D. Proof of Death and Right of Beneficiary or Other Person.
The Board may require and rely upon such proof of death and such evidence
of the right of any Beneficiary or other person to receive the value of a
deceased Member's DROP Account as the Board may deem proper and its
determination of the right of that Beneficiary or other person to receive
payment shall be conclusive.
E. Distribution Limitation.
Notwithstanding any other provision of this subsection 4., all distributions
from the DROP shall conform to the "Minimum Distribution of Benefits"
provisions as provided for herein.
F. Direct Rollover of Certain Distributions.
This subsection applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the DROP to the contrary, a distributee
may elect to have any portion of an eligible rollover distribution paid in a
direct rollover as otherwise provided under the System in Section 25, herein
incorporated by reference.
5. Administration of DROP.
A. Board Administers the DROP.
The general administration ofthe DROP, the responsibility for carrying out
the provisions of the DROP and the responsibility of overseeing the
investment ofthe DROP's assets shall be placed in the Board. The members
of the Board may appoint from their number such subcommittees with such
. powers as they shall determine; may adopt such administrative procedures
and regulations as they deem desirable for the conduct of their affairs; may
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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, or cause to be maintained, records showing the
operation and condition of the DROP, including records showing the
individual balances in each Member's DROP Account, and the Board shall
keep, or cause to be kept, in convenient form such data as may be necessary
for the valuation of the assets and liabilities of the DROP. The Board shall
prepare or cause to be prepared and distributed to Members participating in
the DROP and other individuals or filed with the appropriate governmental
agencies, as the case may be, all necessary descriptions, reports, information
returns, and data required to be distributed or filed for the DROP pursuant to
the Code, the applicable portions of the Act and any other applicable laws.
C. Establishment of Rules.
Subject to the limitations of the DROP, the Board from time to time shall
establish rules for the administration of the DROP and the transaction of its
business. The Board shall have discretionary authority to construe and
interpret the DROP (including but not limited to determination of an
individual's eligibility for DROP participation, the right and amount of any
benefit payable under the DROP and the date on which any individual ceases
to be a participant in the DROP). The determination of the Board as to the
interpretation of the DROP or its determination of any disputed questions
shall be conclusive and final to the extent permitted by applicable law. The
Board shall also oversee the investment of the DROP'S assets.
D. Limitation of Liability.
(1)
The Trustees shall not incur any liability individually or on behalf of
any other individuals for any act or failure to act, made in good faith
in relation to the DROP or the funds ofthe 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.
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6. General Provisions.
A. Amendment of DROP.
The DROP may be amended by an ordinance ofthe City at any time and from
time to time, and retroactively if deemed necessary or appropriate, to amend
in whole or in part any or all of the provisions of the DROP. However,
except as otherwise provided by law, no amendment shall make it possible
for any part ofthe DROP's funds to be used for, or diverted to, purposes other
than for the exclusive benefit of persons entitled to benefits under the DROP.
No amendment shall be made which has the effect of decreasing the balance
of the DROP Account of any Member.
B. Facility of Payment.
If the Board shall find that a Member or other person entitled to a benefit
under the DROP is unable to care for his affairs because of illness or accident
or is a minor, the Board may direct that any benefit due him, unless claim
shall have been made for the benefit by a duly appointed legal representative,
be paid to his Spouse, a child, a parent or other blood relative, or to a person
with whom he resides. Any payment so made shall be a complete discharge
of the liabilities of the DROP for that benefit.
C. Information.
Each Member, Beneficiary or other person entitled to a benefit, before any
benefit shall be payable to him or on his account under the DROP, shall file
with the Board the information that it shall require to establish his rights and
benefits under the DROP.
D. Prevention of Escheat.
If the Board cannot ascertain the whereabouts of any person to whom a
payment is due under the DROP, the Board may, no earlier than three (3)
years from the date such payment is due, mail a notice of such due and owing
payment to the last known address of such person, as shown on the records
of the Board or the City. If such person has not made written claim therefor
within three (3) months of the date of the mailing, the Board may, if it so
elects and upon receiving advice from counsel to the DROP, direct that such
payment and all remaining payments otherwise due such person be canceled
on the records of the DROP. Upon such cancellation, the DROP shall have
no further liability therefor except that, in the event such person or his
Beneficiary later notifies the Board of his whereabouts and requests the
payment or payments due to him under the DROP, the amount so applied
shall be paid to him in accordance with the provisions of the DROP.
E. Written Elections. Notification.
(1) Any elections, notifications or designations made by a Member
pursuant to the provisions of the DROP shall be made in writing and
filed with the Board in a time and manner determined by the Board
under rules uniformly applicable to all employees similarly situated.
The Board reserves the right to change from the time and manner for
making notifications, elections or designations by Members under the
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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 current address and any
subsequent changes in his address. Any notice required to be given
to a Member or Retiree hereunder shall be deemed given if directed
to him at the last such address given to the Board and mailed by
registered or certified United States mail. If any check mailed by
registered or certified United States mail to such address is returned,
mailing of checks will be suspended until such time as the Member
or Retiree notifies the Board of his address.
F. Benefits Not Guaranteed.
All benefits payable to a Member from the DROP shall be paid only from the
assets of the Member's DROP Account and neither the City nor the Board
shall have anydutyorliabilityto furnish the DROP with any funds, securities
or other assets except to the extent required by any applicable law.
G. Construction.
(1) The DROP shall be construed, regulated and administered under the
laws of Florida, except where other applicable law controls.
(2) The titles and headings of the subsections in this Section 27 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 scope of Section 22 above or Section 112.3173, Florida Statutes. DROP
participants who commit a specified offense or whose employment is
terminated as described in Section 22 while employed, will be subject to
forfeiture of all retirement benefits, including DROP benefits, pursuant to the
above provisions of law.
I. Effect of DROP Participation on Emplovrnent.
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.
J. BAC-DROP.
In lieu of participation in the DROP, a Member may elect to participate in an
actuarially equivalent BAC-DROP to a date of the Member's choosing,
provided that the date is not further back than the Member's normal
retirement date. The total BAC-DROP period shall not exceed sixty (60)
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months and shall provide an immediate partial lump sum distribution,
payable to the Member's DROP Account. The lump sum shall be the accrued
benefit, determined as if the Member had entered the DROP retroactively, as
described above, accumulated with interest at the annual fixed rate of 6.5%.
The Member may choose an actuarially equivalent form of benefit at the time
ofBAC-DROP entry, as described in Section 10, Optional Forms of Benefits.
Member contributions shall be returned for the period of the BAC-DROP
participation. A Member electing the BAC-DROP shall terminate
employment not later than the first day of the month following his election
to participate in the BAC-DROP. The Board's authority and power for
administration of the BAC-DROP shall be the same as those provided for in
the DROP.
SECTION 28. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a Firefighter or Police Officer 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 Fire Department or
City Police Department shall be added to his years of Credited Service provided that:
1. The Member contributes to the Fund an actuarially determined amount so that the
crediting of the purchased 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. ThG rcquGst shall bG llladG only OueG and madG by the MGmbGr on 01 beforG cightec.n
(18) m011ths fiom the cf:fecti v c dak onhe. ordinQ...(lec adopting this Se.dioll 01 cightGell D8) ll:onths
frolH tk date. of his cUlplo}ment with the. City rile. De.pcuttncnt or City Police DcpartnlGilt,
whiehe.ver is latGl. Multiple requests to purchase Credited Service pursuant to this Section mav 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 request for credit and shall be made in one (1) lump sum payment to the Board, 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 Police or Fire Service, for jurisdiction 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 and eligibility for not-in-line of duty disability benefits.
SECTION 29. REEMPLOYMENT AFTER RETIREMENT.
.L. 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 restrictinf?: in any way the
retirement benefits payable under this SYstem. Reemployment by the City shall be subiect 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 reemoloyed as a Firefighter or Police Officer after that
Retirement and. by virtue ofthat reemployment. is eligible to participate in this Svstem. shall upon
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being reemployed discontinue receipt of benefits. Upon reemployment the Retiree shall be deemed
to be fully vested and the additional Credited Service accrued during the subsequent employment
period shall be used in computing a second benefit amount attributable to the subsequent
employment period, which benefit amount shall be added to the benefit determined upon the initial
retirement to determine the total benefit payable upon final Retirement. Calculations of benefits
upon Retirement shall be based upon the benefit accrual rate, Average Final Compensation, and
Credited Service as of that date and the retirement benefit amount for any subsequent emplovrnent
period shall be based upon the benefit accrual rate, Average Final Compensation (based only on the
subsequent employment period), and Credited Service as ofthe date of subsequent retirement The
amount of any death or disability benefit received as a result of a subsequent period of emplovrnent
shall be reduced by the amount of accrued benefit eligible to be paid for a prior period of
employment. The optional form of benefit and anv ioint pensioner selected upon initial retirement
shall not be subiect to change upon subsequent retirement except as otherwise provided herein, but
the Member may select a different optional form and ioint pensioner applicable to the subsequent
retirement benefit.
~ Any Retiree who is retired under normal retirement pursuant to this System and who
is reemployed bv the City after that Retirement and, by virtue of that reemployment is ineligible to
participate in this System. shalL durin!;! the period of such reemployment. discontinue receipt of
benefits during any subsequent employment period.
4. After Earl Retirement. An Retiree who is retired under earl retirement ursuant
to this System and who subse uently becomes an employee of the City in any capacity shall
discontinue receipt of benefits from the System. If by virtue of that reemployment the Retiree is
eligible to participate in this System, the Retiree shall be deemed to be fully vested and the additional
Credited Service accrued durinf?: the subsequent employment period shall be used in computing a
second benefit amount attributable to the subsequent employment period, which benefit amount shall
be added to the benefit determined upon the initial retirement to determine the total benefit payable
upon final Retirement. Calculations of benefits upon retirement shall be based upon the benefit
accrual rate, Average Pinal Compensation, Credited Service and early retirement reduction factor
as of that date and the retirement benefit amount for any subsequent employment period shall be
based upon the benefit accrual rate, Average Final Compensation (based only on the subsequent
employment period), and Credited Service as of the date of subsequent retirement. The amount of
any death or disability benefit received as a result of a subsequent period of employment shall be
reduced by the amount of accrued benefit eligible to be paid for a prior period of employment. The
optional form of benefit and any ioint pensioner selected upon initial retirement shall not be subiect
to change upon subsequent retirement except as otherwise provided herein, but the member may
select a different optional form and ioint pensioner applicable to the subsequent retirement benefit.
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.
~ Reem 10 ent of Terminated Vested Persons. Reem 10 ed terminated vested
persons shall not be subiect to the provisions 0 t is Section until such time as thev begin to 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 pIan shalL following termination of employment after DROP participation, have the options
provided for in this section for reemployment.
ksh\noc\ksh\ocoee\pt\05-19-10.rest
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