2012-014 General Employees' Retirement Trust Fund ORDINANCE NO. 2012 -014
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND,
ADOPTED AND RESTATED IN FULL BY ORDINANCE
NUMBER 2009 -020; AS SUBSEQUENTLY AMENDED;
AMENDING SECTION 1, DEFINITIONS AMENDING THE
DEFINITION OF "SALARY "; AMENDING SECTION 6,
BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING
SECTION 8, VESTING; AMENDING SECTION 25,
DEFERRED RETIREMENT OPTION PLAN; PROVIDING
FOR SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND
PROVIDING AN EFFECTIVE DATE.
SECTION 1: Authority. The City Commission of the City of Ocoee has the
authority to adopt this ordinance pursuant to Article VIII of the Constitution of the State
of Florida and Chapter 166, Florida Statutes.
SECTION 2: That Ordinance No. 2009 -020, adopting the amended and restated
City of Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently
amended, is hereby amended by amending Section 1, Definitions, definition of "Salary ", to
read as follows:
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Salary means the total compensation (and travel stipend for the Mayor and
Commissioners) reported on the Member's W -2 form plus all tax deferred, tax sheltered or tax
exempt items of income derived from elective employee payroll deductions or salary reductions.
For service earned on or after July 1, 2011, Salary shall not include more than three hundred
(300) hours of overtime per fiscal year. Provided however, in any event, payments for overtime
in excess of three hundred (300) hours per year accrued as of July 1, 2011 and attributable to
service earned prior to the July 1, 2011, may be included in Salary for pension purposes
even if the payment is not actually made until on or after July 1, 201 1. In any event, with respect
to unused paid time off accrued prior to July 1, 2011, Salary will include the lesser of the amount
of paid time off accrued on July 1, 2011 or the actual amount of paid time off for which the
Retiree receives credit or payment at the time of retirement, based upon the Retiree's then hourly
rate of _pay, regardless of whether the amount of paid time off was, at some time prior to
retirement, reduced below the amount on July 1, 2011. Compensation in excess of limitations
set forth in Section 401 (a)(17) of the Code as of the first day of the Plan Year shall be
disregarded for any purpose, including employee contributions or any benefit calculations. The
annual compensation of each member taken into account in determining benefits or employee
contributions for any Plan Year beginning on or after January 1, 2002, may not exceed $200,000,
as adjusted for cost -of- living increases in accordance with Code Section 401(a)(17)(B).
Compensation means compensation during the fiscal year. The cost -of- living adjustment in
effect for a calendar year applies to annual compensation for the determination period that begins
with or within such calendar year. If the determination period consists of fewer than 12 months,
the annual compensation limit is an amount equal to the otherwise applicable annual
compensation limit multiplied by a fraction, the numerator of which is the number of months in
the short determination period, and the denominator of which is 12. If the compensation for any
prior determination period is taken into account in determining a Member's contributions or
benefits for the current Plan Year, the compensation for such prior determination period is
subject to the applicable annual compensation limit in effect for that prior period. The limitation
on compensation for an "eligible employee" shall not be less than the amount which was allowed
to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an
individual who was a Member before the first Plan Year beginning after December 31, 1995.
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SECTION 3: That Ordinance No. 2009 -020, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is hereby
amended by amending Section 6, Benefit Amounts and Eligibility, subsections 1., 2. and 3., to read
as follows:
1. Normal Retirement Date.
A Member (except a Mayor or Commissioner Member) who became a Member prior to
September 18, 2012 shall have a normal retirement date of normal retirement date shall be the first day of
the month coincident with, or next following the attainment of age sixty (60) regardless of the years of
Credited Service. A Member (except a Mayor _orComrn-issioner Member) who became a Member on or
after jenibr 18, 2012 shall have a normal retirement date of the first day of the month coincident
with, or next foliowing the attainment of age sixty -two (62) and thecoipletion of seven (7) years of
Credited Service. A Mayor or Commissioner Member's normal retirement date shall be the first day of
the month coincident with, or next following the attainment of age sixty (60) and the completion of nine
(9) years of Credited Service. A Member may retire on his or her normal retirement date or on the first
day of any month thereafter, and each Member shall become 100% vested in his or her accrued benefit on
the Member's normal retirement date, Normal retirement tinder the System is Retirement from
employment with the City on or after the normal retirement date,
2. Normal Retirement Benefit.
A Member who became aMember prior to September 18, 2012 retiring hereunder on or
after his or her normal retirement date shall receive a monthly benefit which shall commence on the first
day of the month next following his or her Retirement and be continued thereafter during Member's
lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any
event. The monthly retirement benefit shall equal three percent (3 %) of Average Final Compensation, for
each year of Credited Service, up to a maximum benefit not to exceed eighty -one percent (81 %) of
Average Final Compensation of the Member. AMember who became a Member on or after September
18 2012 . retirir g hereunder on or after his or her retirement date shall receive a monthly benefit
which shall commence on the first day of the month next following_ his or her Retirement and be
continued thereafter during Member's lifetime, ceasing upon death, but with one twenty (120)
monthly payments guaranteed in_ any event. The monthly retirement benefit shall equal two and twenty-
five hundredths percent (2.25 %) of Average Final Compensation for each year of Credited Service, up to
a maximum benefit not to exceed seventy percent (70%1 of Average Final Compensation of the Member.
3. Early Retirement Date.
A Member (except a Mayor or Commissioner Member) who became a Member prior to
September 18 2012 may retire on his or her early retirement date which shall be the first day of any
month coincident with or next following the attainment of age fifty (50) and the completion of five (5)
years of Credited Service. A_- Member (except- a Mayor or Commissioner Member) who became a
Member on or after September 18, 2012 may retire on his or her early retirement date which shall be the
first da ofa tyntonth coincident with or next following the attainment of age fifty (50) and the
completion of seven (7) years of Credited Service. A Mayor or Commissioner Member may retire on his
or her early retirement date which shall be the first day of any month coincident with or next following
the attainment of age fifty (50) and the completion of nine (9) years of Credited Service. Early
retirement under the System is Retirement from employment with the City on or after the early
retirement date and prior to the normal retirement date.
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SECTION 4: That Ordinance No. 2009 -020, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is hereby
amended by amending Section 8, Vesting, to read as follows:
SECTION 8. VESTING.
If a Member terminates his or her employment with the City, either voluntarily or by discharge,
and is not eligible for any other benefits under this System, the Member shall be entitled to the following:
1. If the Member who became a Member prior to September 18, 2012 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. If the Member who
became a Member on or after September 18, 2012 _ has Tess than seven (7) years Credited Service ujon
termination, the Member shall be entitled to a refund of his or her Accumulated Contributions or the
Member may leave it deposited with the Fund.
2. If the Member (except a Mayor or Commissioner Member) who became a Member prior
to September 18, 2012 has five (5) or more years of Credited Service or if the Member who became a
Member on or after September 18, 2012 has seven (71 or more _yearsofCredited Service or if a Mayor or
Commissioner Member has nine (9) or more years of Credited Service upon termination, the Member
shall be entitled to a monthly retirement benefit., determined in the same manner as for normal or early
retirement and based upon the Member's Credited Service, Average Final Compensation and the benefit
accrual rate as of the date of termination, payable to him or her commencing at the Member's otherwise
normal or early retirement date, provided he or she does not elect to withdraw his or her Accumulated
Contributions and provided the Member survives to his or her normal or early retirement date. If the
Member does not withdraw his or her Accumulated Contributions and does not survive to his or her
otherwise normal or early retirement date, his or her designated Beneficiary shall be entitled to a benefit
as provided herein for a deceased Member, vested or eligible for Retirement under Pre - Retirement Death.
SECTION 5: That Ordinance No. 2009 -020, adopting the amended and restated City of
Ocoee Municipal General Employees' Retirement Trust Fund, as subsequently amended, is hereby
amended by amending Section 25, Deferred Retirement Option Plan, subsections 2. and 3., to read
as follows:
2. Participation.
A. Eligibility to Participate.
In lieu of terminating his or her employment as a General Employee, any
Member who became a Member prior to September 18, 2012 and who is eligible
for normal retirement under the System may elect to defer receipt of such service
retirement pension and to participate in the DROP. Any Member who became a
Member on or after September 18, 2012 must have a minimum of ten (10) years
Credited Service and be eli_iblefor normal retirement.
B. Election to Participate.
A Member's election to participate in the DROP must be made in writing
in a time and manner determined by the Board and shall be effective on
the first day of the first calendar month which is at least fifteen (15)
business days after it is received by the Board.
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C. Period of participation.
A Member who became a Member prior _.toSeptember 18, 2012 who elects to
participate in the DROP under subsection 2.B., shall participate in the DROP for a
period not to exceed eighty -four (84) months beginning on the date which the
Member first becomes eligible for normal retirement. A Member who became a
Member on and after September 18, 2012 who elects to participate in the DROP
under section 2.B., shall participate in the DROP fora period not to exceed sixty
(601 months beuinnin_ 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.
3. Fundi.
A. Establishment of DROP Account.
A DROP Account shall be established for each Member participating in the
DROP. A Member's whose DROP participation began prior to September 18,
2012 shall have a DROP _ -- _Account consisting DROP Account shall consist of
amounts transferred to the DROP under suhsection 3.B., and earnings or interest
on those amounts.
AMember whose DROP participation began on or after September 18, 2012 shall
have a DROP Account consistin_ of arnounts transferred to the DROP under
subsection 3.C. and interest on those amounts.
B. Transfers From Retirement System.
(1) As of the first day of each month of a Member's period of participation in
the DROP, the monthly retirement benefit he or she would have received
under the System had he or she terminated his or her employment as a
General Employee and elected to receive monthly benefit payments
thereunder shall be transferred to his or her DROP Account, except as
otherwise provided for in subsection 2.D.(2). A Member's period of
participation in the DROP shall be determined in accordance with the
provisions of subsections 2.C. and 2,D., but in no event shall it continue
past the date he or she terminates his or her employment as a General
Employee.
(2) Except as otherwise provided in subsection 2.D.(2), a Member's DROP
Account under this subsection 3.B. shall be debited or credited after each
fiscal year quarter with either:
(a) Interest at an effective rate of six and one -half percent (6.5 %) per
annum compounded monthly on the prior month's ending balance;
or
(b) Earnings, determined as follows:
The average daily balance in a Member's DROP Account shall be
credited or debited at a rate equal to the actual net rate of
investment return realized by the System for that quarter. Net
investment return" for the purpose of this paragraph is the total
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return of the assets in which the Member's DROP Account is
invested by the Board net of brokerage commissions, transaction
costs and management fees.
Upon electing participation in the DROP, the Member shall elect to
receive either interest or earnings on his or her account to be determined as
provided above. The Member may, in writing, elect to change his or her
election only once during his or her DROP participation. An election to
change must be made prior to the end of a quarter and shall be effective
beginning the following quarter.
(3) A Member's DROP Account shall only be credited or debited with
earnings or interest and monthly benefits while the Member is a participant
in the DROP. A Member's final DROP account value for distribution to
the Member upon termination of participation in the DROP shall be the
value of the account at the end of the quarter immediately preceding
termination of participation plus any monthly periodic additions made to
the DROP account subsequent to the end of the previous quarter and prior
to distribution. If a Member fails to terminate employment after
participating in the DROP the permissible period of DROP participation,
then beginning with the Member's 1st month of employment following the
last month of the permissible period of DROP participation, the Member's
DROP Account will no longer he 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 he
forfeited while the Member is employed by the City, and not cost -of- living
adjustments shall be applied to the Member's credit during such period of
continued employment. A Member employed by the City after the
permissible period of DROP participation will still not be eligible for pre-
retirement death or disability benefits, nor will he or she accrue additional
Credited Service, except as provided for Section 24, Reemployment After
Retirement.
C. 'Transfers From Retirement System.
(1) As of the first day of each month of a Member's period of participation in
the DROP, the monthly retirement benefit he or she would have received
under the System had he or she terminated his or her employment as a
General Employee and elected to receive monthly benefit payments
thereunder shall be transferred to his or her DROP Account, except as
otherwise provided for in subsection A Member's period of
participation in the DROP shall be determined in accordance with the
provisions of subsections 2.C. and 2.D., but in no event shall it continue
past the date he _or._ she terminates his or her employment as a General
Employee.
(2) Except as otherwise provided in subsection 2.D.(2), a Member's DROP
Account under this subsection 3.C. shall be credited with interest at an
effective rate of three percent (3 %) per annum compounded monthly on
the prior month's ending balance.
(3) A Member's DROP Account shall only be credited with interest and
monthlybenefits while the Member is a participant in the DROP. A
Member's final DROP account value for distribution to the Member upon
termination of participation in the DROP shall be the value of
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the account at the end of the quarter immediately preceding
termination ofparticipation plus any monthly periodic additions made
to the DROP account subsequent to the end of the previous quarter
and prior to distribution. If a Member fails to terminate employment
after participating in the DROP the permissible period of DROP
participation, then beginning with the Member's 1st month of
employment following the last month of the permissible period of
DROP participation, the Member's DROP Account will no longer be
credited with interest, nor will monthly benefits be transferred to the
DROP account. All such non - transferred amounts shall be forfeited
and continue to be forfeited while the Member is employed by the
City, and no cost -of- living adjustments shall be applied to the
Member's credit during such period of continued employment. A
Member employed by the City after the permissible period of DROP
participation will still not be eligible for pre - retirement death or
disability benefits, nor will he or she accrue additional Credited
Service, except as provided for Section 24, Reemployment After
Retirement.
* * * **
SECTION 6. Repeal of Ordinances. All ordinances or parts of ordinances in conflict
herewith are hereby repealed.
SECTION 7. Effective Date. This ordinance shall be effective on the date of adoption;
however, Section 2 of this ordinance shall be retroactively effective on July 1, 2011.
PASSED AND ADOPTED this " . day of `1)P►i1'ttf, 2012.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
■r _ By: ��+ t�til /�+ V 4 V
1 7""` ikenberry, City Clerk S. Scott Vandergri , Mayor
(SEAL) ADVERTISED (\‘.t E 'Do , 2012
READ FIRST TIME 0,0 , 2012
READ SECOND TIME AND ADOPTED
silk= `>t rt�tlxt 1F, 2012
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS day ofc p t, , 2012
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CHRISTIANSEN & DEHNER, P.A.
Special Counsel
�.L 4
APPROVED BY THE OCOEE CITY
COMMISSION AT A MEETING HELD ON
e , 2012 UNDER AGENDA
ITEM NO. k
ksh \ococc \gcn\06- 28- 12.ord
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