2013-011 General Employees' Retirement Trust FundORDINANCE NO. 20
SE 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 St atutes.
SECTION 2 : That the City of Ocoee Municipal General Employees' Retirement Trust Fund
adopted by Ordinance No. 2009 -020, as subsequently amended, is hereby further amended by
amending Section 1, Definitions, by amending the definitions of "Actuarial Equivalent" and
"Credited Service ", to read as follows:
Actu Equ ivalent means a benefit or amount of equal value, determinedk oi"ht+asi-s -a€
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA,
RELATING TO THE CITY OF OCOEE MUNICIPAL
GENERAL EMPLOYEES' RETIREMENT TRUST FUND,
ADOPTED BY ORDINANCE NUMBER 2009 -020; AS
SUBSEQUENTLY AMENDED; AMENDING SECTION 1,
DEFINITIONS BY AMENDING THE DEFINITIONS OF
"ACTUARIAL EQUIVALENT" AND "CREDTTED SERVICE ";
AMENDING SECTION 4, FINANCES AND FUND
MANAGEMENT; AMENDING SECTION 14, MAXIMUM
PENSION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE
DATE.
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Cr edited Service means the total number of years and fractional parts of years of service as
a General Employee with Member contributions, when required, or effective October 1, 2006 as a
Mayor or a Commissioner, omitting intervening years or fractional parts of years when such Member
was not employed by the City as a General Employee or an elected official. A Member may
voluntarily leave his or her contribution in the Fund for a period of five (5) years after leaving the
employ of the City pending the possibility of being rehired without losing credit for the time that he
or she was a Member of the System. If the Member is not reemployed within five (5) years, then the
Accumulated Contributions will be returned upon written request of the Member. If a Member who
is not vested is not reemployed as a General Employee with the City of Ocoee within five (5) years,
his or her Accumulated Contributions, if one- thousand dollars ($1,000.00) or less, shall be returned.
If a Member who is not vested is not reemployed within five (5) years, his or her Accumulated
Contributions, if more than one- thousand dollars ($1,000.00), will be returned only upon the written
request of the Member and upon completion of a written election to receive a cash lump sum or to
rollover the lump sum amount on forms designated by the Board. Upon return of his or her
Accumulated Contributions, all of his or her rights and benefits under the System are forfeited and
terminated. Those Members who terminated employment with the City of Ocoee prior to October
1, 1991 and who became or will become reemployed on or after October 1, 1991 shall be granted
Credited Service for the total number of years and fractional parts of years of service as a General
Employee with the City of Ocoee prior to October 1, 1991.
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The years or parts of a year that a member performs "Qualified Military Service" consisting
of voluntary or involuntary "service in the uniformed services" as defined in the Uniformed Services
Employment and Reemployment Rights Act (USERRA) (P.L.103 -353), after separation from
employment as a General Employee to perform training or service, shall be added to his or her years
of Credited Service for all purposes, including vesting, provided that;
A. The Member is entitled to reemployment under the provisions of USERRA.
B. The Member returns to his or her employment as a General Employee within one (1)
year following the earlier of the date of his or her military discharge or his or her
release from service, unless otherwise required by USERRA.
C. The Member deposits into the Fund the same sum that the Member would have
contributed, if any, if he or she had remained a General Employee during his or her
absence. The maximum credit for military service pursuant to this subdivision shall
be five (5) years. The Member must deposit all missed contributions within aperiod
equal to three times the period of military service, but not more than five (5) years,
following re- employment. or he or she will forfeit the right to receive credited service
for his or her military service pursuant to this paragraph.
D. This paragraph is intended to satisfy the minimum requirements of USERRA. To the
extent that this paragraph does not meet the minimum standards of USERRA, as it
may be amended from time to time, the rninirnum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA Qualified
Military Service, the beneficiaries of the Member are entitled to any benefits (other than benefit
accruals relating to the period of qualified military service) as if the Member had resumed
employment and then died while employed.
Beq i nning Ja nuary 1, 2 009, to the extent required by Section 414(u)(12) of the Code, an
individual receiving differential wave payments (as defined under Section 3401(h)(2) of the Code
from an employ s hall be t as employed b y_ that e mployer, and the differential wave payment
shall be treated as compensation for ur poses _of ap the limits on annual additions under
Section 415(c) of the Code. This provision shall be ap plied _to al similarly situated individuals in
a reasonably equiv manner.
In the event that a Member (except a Mayor or Commissioner Member) of this System has
also accumulated credited service in another pension system maintained by the City, or has a period
or periods of previous employment as a General Employee, but is not eligible 1.o receive Credited
Service for this period or periods of previous employment for benefit calculation purposes, then such
other credited service shall be used in determining vesting as provided for in Section 8, and for
determining eligibility for early or normal retirement. Such other credited service will not be
considered in determining benefits under this System. Unless otherwise provided herein, only his
or her Credited Service and Salary under this System on or after his or her latest date of membership
in this System will be considered for benefit calculation. In addition, any benefit calculation for a
Member of this System who is or becomes eligible for a. benefit from this System after he or she has
become a member of another pension system maintained by the City, shall be based upon the
Member's Average Final Compensation, Credited Service and benefit accrual rate as of the date the
Member ceases to be a General Employee.
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SECTIO 3: That the City of Ocoee Municipal General Employees' Retirement Trust Fund
adopted by Ordinance No. 2009 -020, as subsequently amended, is hereby further amended by
amending Section 4, Finance and Fund Management, subsection 6.B.(3) to read as follows:
(3)
eligible governmental plans that meet the require of Section
457(b) of the Code, and governmental plans u nder 401(a)(24) of the
Code. For this pu!Tose, a trust includes a custodial account that is
treated as a trust under Section 401 (1) or under Section 45 7 g) 3 of
th Co de. While any portion of the assets of the Fund are invested in
such a group trust, such group trust is itself adopted as a part of the
System or Plan.
SECTION 4 : That the City of Ocoee Municipal General Employees' Retirement Trust Fund
adopted by Ordinance No, 2009 -020, as subsequently amended, is hereby further amended by
amending Section 14, Maximum Pension, to read as follows:
S 14. M PENSION.
Basic Li mitatio n.
Notwithstanding any other provisions of this Systern 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, 199.5, a plan member may not receive an annual benefit that exceeds the
limits specified in Code Section 415(b), subject to the applicable adjustments in that section. On and
after January 1, 1995, a plan member may not receive an annual benefit that exceeds the dollar
amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the applicable adjustments
in Code Section 415(b) and subject to any additional limits that may be specified in this System. For
purposes of this Section, "limitation year" shall be the calendar year.
For purposes of Code Section 415(b), the "annual ben " means a benefit payable
annually in the form of a straight life annuity (with no ancillary benefits) without re and to to - the
benefit attributable to after -tax employee contributions (except pursuant to Code Section 415(n ) and
to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable" shall
be determined in accordance with Treasury Regulations.
2. Adiustments to Basic Limitation for Form of Benefit.
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In addition, the Board may, upon recommendation by the Board's
investment consultant, make investments in group trusts meeting the
requirements of Internal Revenue Service Revenue Ruling 81 -100
and Revenue Ruling 2011 -1 or successor rulings or guidance of
similar import, and operated or maintained exclusively for the
commingling and c investment of monies, provided that the
shall be adjusted so that it is the equivalent of the ann bene using fac prescribed in Tr easury
Regulations. If the form o f th benefit without regard to any automatic benefit increase feature is
not a straight life annuitv or a aualified ioint and survivor annuity, then the orecedine sentence is
adjusting the form of benefit 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 additional
benefits under the form of benefit as follows:
A. For a benefit paid in a form to which Section 417(e )(3) of the Code does not
apply (gene rally, a monthly benefit), the actuarially equivalent straight life
an nuity benefit that is the mater of:
The annual amount of the straight life annuity (if any) payable to the
Member under the Plan commencin , at the same annt� startin date
as the form of benefit t the Mem ber,,_or
The annual amount of the straight life annuity co mmencin th
same annuity starting date that has the same actuarial present value as
the form of benefit payable to the Member, computed using a five
perc (5 %) interest assumption or the applicable statutory interest
assumption) and 0-foryarsprri to January 1, 2009, the applicable
mortality tables described in T Regulation Section 1.417(e)-
1(d )(2) (Revenue Ruling 2001 -62 or any subsequent Revenue Ruling
modifying the applica provi of Revenue Rulings 2001 -62),
and (ii) for years after ,December 31, 2008, the applicable mortality
tables described in Section 41 7(e)(3)(B) of the Code (Notice 2008 -85
or any subsequent Internal Revenue Service ug idance imRlementiny,
Section 417(e)(3)(B) of the Code), or
1 . For a benefit paid in a form to which Section 417(e)(3) of the Code app lies
enerally, a lump sum benefit), the actuarially equivalent straight life annuity
benefit that is the gre atest of:
(I The annual amount of the straight l ife annuity commencing at t the
annuity starting, date that has the s ame actuarial ip - went value as the
particular form of benefit payable, computed using the_ interest rate
and mortality table, or tabular factor, specified in the Plan
actuarial experience;
. Q) The annual amount of the straight life annuity commencing at the
annuity starting date th has the same actuarial present value as the
par ticular form of ben payable, computed usin) a five and one half
erp cent (5.5 %) interest assum tion or the applicabl - statutory
interest assumption) and (i ) for ears prior to January 1,.,. 2009, the
Regulation Section 1.417(e)- I(d)(2) (the mortalitv table specified in
Revenue Ruli
modifyin the he applicable provisions of Revenue Ruling 2001-62), and
Li) for years after December 31, 2008, the applicable mortality tables
described in Section 417(e )(3)(B) of the Code (Notice 2008 -85 or any
subseauent Internal Revenue Service Pauidance implementing section
417(e)(3)(B) of the Code), or
"The annual amount of the straight life annuity commencin at t the
annuity starting date that h as the same actuarial present value as the
par ticular form of benefit payable (computed using the he applicable
interest rate for the distribution under Treasury Regulation Section
1417 e - 1(d)(3) (the 30- year rate prior to January 1, 2007,
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using the rate in effect for the month prior to retirement and on and
after January 1, 2007, using the rate in effect for the first day of the
Plan Y ear with a one -year stabilization period)) and (i) for years prior
to January 1, 2009, the applicabl mortality tables for the distribution
tinder Treasury Revaulation Section 1.417(e)- 1(d)(2) (the mortality
table specified in Revenue Ruling 2001 -62 or any subsequent
Revenue Ruling modifying the applicable provisions of Revenue
Ruling 2001 -62), an ii for._ years after December 31, 2008 the
applicable mortality tables described in Section 417(e)(3)(B) of the
Code (Notice 2008 -85 or any subsequent Internal Revenue Service
uuidance imnlementinu Section 417(e)(3)(B) of the Code)_ divided by
1.05.
C. The actuary may adjust the 415(b) limit at the annuity starting date in
acco rdan c e with subsections A. and B above.
Benefits Not Taken into Account
For purposes of this Section, the following benefits shall not be taken into account
in applying these limits:
A. Any ancillary benefit which is not directly related to retirement income
benefits;
B. Any other benefit not required under §415(b)(2) of the Code and Regulations
thereunder to be taken into account for purposes of the limitation of Code
Section 415(b)(1) and
C. That portion of any joint and survivor annuity that constitutes a qualified joint
and survivor annuity
4, COLA Effect.
Effective on and after January 1, 2003, for purposes of applying the limits under Code
Section 415(b) (the "Limit "), the following will apply:
A. A Member's applicable limit will be applied to the Member's annual benefit
in the Member's first mar limitation year of benefit payments without
regard to any automatic cost of living adjustments;
B. thereafter, in any subsequent calendar li mitation year, a Member's annual
benefit, including any automatic cost of living increases, shall be tested under
the then applicable benefit limit including any adjustment to the Code Section
415(b)(1)(A) dollar limit under Code Section 415(d), and the regulations
thereunder; but
C. in no event shall a Member's benefit payable under the System in any
calendar limi tation 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.
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5. Other Adjustments in Limitations
A. In the event the Member's retirement benefits become payable before age
sixty -two (62), the limit prescribed by this Section shall be reduced in
accordance with regulations issued by the Secretary of the Treasury pursuant
to the provisions of Code Section 415(b) of the Code, so that such limit (as
so reduced) equals an annual straight life benefit (when such retirement
income benefit begins) which is equivalent to a one hundred sixty thousand
dollar ($160,000) annual benefit beginning at age sixty -two (62).
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service as a full -time employee of the police or fire department of
the City, the adjustments provided for in A. above shall not apply.
C. 'The reductions provided for in A, above shall not be applicable to pre -
retirement death benefits paid pursuant to Section 7.
D. In the event the Member's retirement benefit becomes payable after age sixty -
five (65), for purposes of determining whether this benefit meets the limit set
forth in subsection 1 herein, such benefit shall be adjusted so that it is
actuarially equivalent to the benefit beginning at age sixty -five (65). This
adjustment shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his or her delegate.
6. Less than Ten (10) Years of Participation or Service
The maximum retirement benefits payable under this Section to any Member who has
completed less than ten (10) years of Credited Service with the City shall be the amount determined
under subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of
the Member's years of Credited Service and the denominator of which is ten (10). The reduction
provided by this subsection cannot reduce the maximum benefit below 10% of the limit determined
without regard to this subsec tion. The reduction provided for in this subsection shall not be
applicable to pre - retirement death benefits paid pursuant to Section 7,
7. Participation in O ther Defined Ben efit Pl ans .
The limit of this Section with respect to any Member who at any time has been a
member in any other defined benefit plan as defined in Code Section 4140) 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.
T en T D ollar (' 1 0,000) Limit; Less Than Ten Years of Service
Notwithstanding the foregoing ajLythiRg in t his Section 14 , the retirement benefit
payable with respect to a Member shall be deemed not to exceed the limit set forth in this subs ection
8. of Section 14 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 limitation year and for any prior Pla Year
limitation year and the City has not any time maintained a qualified defined contribution plan in
which the Member participated provided however, that if the Member has completed less than ten
(10) years of Credited Service with the City, the limit under this subsection 8. of Section 14 shall be
a reduced limit equal to ten thousand dollars ($10,000) multiplied by a fraction, the numerator of
which is the number of the Member's years of Credited Service and the denominator of which is ten
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9. Reduction of Benefits
Reduction of benefits and /or contributions to all plans, where required, shall be
accomplished by first reducing the Member's benefit under any defined benefit plans in which
Member participated, such reduction to be made first with respect to the plan in which Member most
recently accrued benefits and thereafter in such priority as shall be determined by the Board and the
plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for
defined contribution plans in which the Member participated, such reduction to be made first with
respect to the plan in which Member most recently accrued benefits and thereafter in such priority
as shall be established by the Board and the plan administrator for such other plans provided,
however, that necessary reductions may be made in a different manner and priority pursuant to the
agreement of the Board and the plan administrator of all other plans covering such Member.
10. S ervice Credit Purc Limits
A. Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as
allowed in Section 26 and 27, then the requirements of this Section will be
treated as met only if.
(1) the requirements of Code Section 415(b) are met, determined by
treating the accrued benefit derived from all such contributions as an
annual benefit for purposes of Code Section 415(b), or
(2) the requirements of Code Section 415(c) are met, determined by
treating all such contributions as annual additions for purposes of
Code Section 415(c).
f 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
subparagraphf3), and for purposes of applying subparagraph (2) the System
will not fail to meet the percentage limitation under Section 415(c)(1)(B) of
the Code solely by reason of this subparagraph
B. For purposes of this subsection the term "permissive service credit" means
service credit - --
(1) recognized by the System for purposes of calculating a Member's
benefit under t:he plan,
(2) which such Member has not received under the plan, and
(3) which such Member may receive only by making a voluntary
additional contribution, in an amount determined under the System,
which does not exceed the amount necessary to fund the benefit
attributable to such service credit.
Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, such term may, if otherwise provided by
the System, include service credit for periods for which there is no
performance of service, and, notwithstanding clause B.(2), may include
service credited in order to provide an increased benefit for service credit
which a Member is receiving under the System.
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1 1. Contribution Limits.
E A. For purposes of applying the Code Section 415(c) limits in this stibse
+6 which are incorporated by reference and for purposes of this subsection
1 1., only and for no other purpose, the definition of compensation where
applicable will be compensation actually paid or made available during a
ma limitation year, except as noted below and as permitted by Treasury
Regulations Section 1.415(c) -2, or successor regulations. Unless another
definition of compensation that is permitted by Treasury Regulations Section
1.415(c) -2, or successor regulation, is specified by the System, compensation
wil I be defined as wages within the meaning of Code Section 3401(a) and all
other payments of compensation to an employee by an employer for which
the employer is required to furnish the employee a written statement under
Code Sections 6041(d), 6051(a)(3) and 6052 and will be determined without
regard to any rules under Code Section 3401(a) that limit the remuneration
included in wages based on the nature or location of the employment or the
services performed (such as the exception for agricultural labor in Code
Section 3401(a)(2).
(1) However, for calendar limitation years beginning after December 31,
1997, compensation will also include amounts that would otherwise
be included in compensation but for an election under Code Sections
125(a), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For cale
limitation years beginning after December 31, 2000, compensation
will also include any elective arnounts that are not includible in the
gross incomc of the employee by reason of Code Section 132(f)(4).
(2) For limitation years beginning on and after January 1, 2007,
compensation for the calendar limitation year will also include
compensation paid by the later of 2'/z months after an employee's
severance from employment or the end of the ealenda limitation year
that includes the date of the employee's severance from employment
if.
(a) the payment is regular compensation for services during the
employee's regular working hours, or compensation for
services outside the employee's regular working hours (such
as overtime or shift differential), commissions, bonuses or
other similar payments, and, absent a severance from
employment, the payments would have been paid to the
employee while the employee continued in employment with
the employer; or
(b) the payment is for unused accrued bona fide sick, vacation or
other leave that the employee would have been able to use if
employment had continued.
(3) Back pay, within the meaning of Treasury Regulations
Section 1.415(c)- 2(g)(8), shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back
pay represents wages and compensation that would otherwise be
included under this definition.
Bt B. Notwithstanding any other provision of law to the contrary, the Board may
modify a request by a Member to make a contribution to the System if the
amount of the contribution would exceed the limits provided in Code Section
415 by using the following methods:
Page 8
(1) If the law requires a lump sum payment for the purchase of service
credit, the Board may establish a periodic payment deduction plan for
the Member to avoid a contribution in excess of the limits under Code
Sections 415(e) or 415(n).
(2) If payment pursuant to subparagraph (1) will not avoid a contribution
in excess of the limits imposed by Code Section 415(c), the Board
may either reduce the Member's contribution to an amount within the
limits of that section or refuse the Member's contribution.
L. If the annual additions for any Member for a limitation year exceed th
limitation under Section 415(c) of the Code the excess annual addition will
be corrected as permitted under the Employee Plans Compliance Resol
System (or similar IRS correction pro Dram).
D. For limitation years be�jnning on or after January 1, 2009, a Member's
compensation for purposes of this subsection 11. shall not exceed the annual
l under Section 401(g - 7J_of the C ode.
�-1 12. Additional Limitation on Pension Bene fits.
Notwithstanding anything herein to the contrary:
A. The normal retirement benefit or pension payable to a Retiree who becomes
a Member of the System and who has not previously participated in such
System, on or after January 1, 1980, shall not exceed one hundred percent
(100 %) of his or her Average Final Compensation. However, nothing
contained in this Section shall apply to supplemental retirement benefits or
to pension increases attributable to cost -of- living increases or adjustments.
B. No Member of the System shall be allowed to receive a retirement benefit or
pension which is in part or in whole based upon any service with respect to
which the Member is already receiving, or will receive in the future, a
retirement benefit or pension from a different employer's retirement system
or plan. This restriction does not apply to social security benefits or federal
benefits under Chapter 67, Title 10, U.S. Code.
SECTION 5 . Sev erab LI fty. hi 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 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.
PASSED AND ADOPTED this Z'?day oi'_`x (2013.
ATTEST:
APPROVED:
CITY OF OCOEE, FLORIDA
I
B y.-
S. Scott Vandergrift, Mayor
Page 9
(SEAL) ADVERTISED m 'r 5, n13
READ FIRST TIME _ n 2013
READ SECOND TIME AND ADOPTED
2013
FOR USE AND RELIANCE, ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
THIS 11 " `day oT -_, 2013
CHRISTIANSEN & DEHNER, P.A.
Special Counsel
i
APPROVED BY THE OCOEE, CITY
COMMISSION AT A MEETING HELD ON
1 2013 1 NDE',R. AGENDA
ITEM NO.
ksh \ocoeeAgen \07- 19 -1 lord
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