0750 FF Pension FundORDINANCE NO. 750
AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE
RESTATED CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS'
PENSION FUND, AS ADOPTED BY ORDINANCE NO. 656, AS
SUBSEQUENTLY AMENDED; PROVIDING FOR DEFINITIONS;
PROVIDING FOR MEMBERSHIP; PROVIDING FOR A BOARD OF
TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENT;
PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT
AMOUNTS AND ELIGIBILITY; PROVIDING FOR PRE RETIREMENT
DEATH BENEFITS; PROVIDING FOR DISABILITY BENEFITS;
PROVIDING FOR VESTING OF BENEFITS; PROVIDING OPTIONAL
FORMS OF BENEFITS; PROVIDING FOR BENEFICIARIES; PROVIDING
CLAIMS PROCEDURES; PROVIDING FOR REPORTS TO THE DIVISION
OF RETIREMENT; PROVIDING FOR A ROSTER OF RETIREES;
DELETING BOARD ATTORNEY AND PROFESSIONALS; PROVIDING
FOR A MAXIMUM PENSION LIMITATION; PROVIDING FOR
DISTRIBUTION OF BENEFITS; PROVIDING MISCELLANEOUS
PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF THE
SYSTEM; PROVIDING FOR EXEMPTION FROM EXECUTION AND NON
ASSIGNABILITY; PROVIDING FOR PENSION VALIDITY; PROVIDING
FOR FORFEITURE OF PENSION UNDER CERTAIN CIRCUMSTANCES;
PROVIDING FOR CONVICTION AND FORFEITURE, FALSE, MISLEADING
OR FRAUDULENT STATEMENTS; PROVIDING FOR INDEMNIFICATION
AND DEFENSE OF CLAIMS; PROVIDING FOR TRANSFERS WITHIN THE
CITY; PROVIDING FOR PURCHASE OF CREDIT FOR MILITARY
SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; DELETING
SEPARATION FROM EMPLOYMENT FOR MILITARY SERVICE;
PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee Firefighters are presently provided pension and
certain other benefits under Ordinances of the City of Okeechobee and;
WHEREAS, the City Council desires to clarify and restate the provisions of the
Firefighters' Retirement Plan to consolidate all prior ordinances and Code
provisions and to incorporate Federal law and the current applicable provisions of
Chapter 175, Florida Statutes;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
OKEECHOBEE, FLORIDA:
SECTION 1: That the City of Okeechobee Retirement System for Firefighters as adopted
by Ordinance 656 and as subsequently amended, be and the same is
amended and restated as set forth in the document designated CITY OF
OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND,
attached hereto and made a part hereof.
SECTION 2: Specific authority is hereby granted to codify and incorporate this Ordinance
in the existing Code of Ordinances of the City of Okeechobee.
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SECTION 3:
SECTION 4:
All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
If any section, subsection, sentence, clause, phrase of this ordinance, or the
particular application thereof shall be held invalid by any court,
administrative agency, or other body with appropriate jurisdiction, the
remaining section, subsection, sentences, clauses, or phrases under
application shall not be affected thereby.
SECTION 5: That this Ordinance shall become effective upon adoption, except provisions
for compliance with Chapter 175, Florida Statutes, shall be effective
retroactively to December 31, 1999.
Introduced on first reading and set for public hearing this 6 day of June 2000.
ATTEST:
Bonnie S. Thomas, CMC, City Clerk
Passed on second and final reading this 20 day of June 2000.
Bonnie S. Thomas, CMC, City Clerk
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James E. Kirk, Mayor
G James E. K1rk Mayor
SECTION 1. DEFINITIONS.
CITY OF OKEECHOBEE
MUNICIPAL FIREFIGHTERS' PENSION TRUST FUND
1. As used herein, unless otherwise defined or required by the context, the following
words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions with interest at the
rate of five and one quarter percent (5-1/4%) per annum. For those Members who
purchase Credited Service at no cost to the System pursuant to Section 25, only
that portion of any payment representing the sum that he would have contributed
had he been a Member of the System for the years for which he is requesting credit,
shall be included in Accumulated Contributions.
Actuarial Equivalent means that any benefit payable under the terms of this System
in a form other than the normal form of benefit shall have the same actuarial
present value on the date payment commences as the normal form of benefit. For
purposes of establishing the actuarial present value of any form of payment other
than a lump sum distribution, all future payments shall be discounted for interest
and mortality by using eight percent (8 interest and the 1983 Group Annuity
Mortality Table for Males.
Averaqe Final Compensation means one twelfth (1/12) of the average Salary of the
five (5) best years of the last ten (10) years of Credited Service prior to retirement,
termination, or death, or the career average as a full -time 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 Okeechobee, 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 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 Firefighter. A Member may voluntarily leave his Accumulated
Contributions in the Fund for a period of five (5) years after leaving the employ of
the Fire Department pending the possibility of being re- employed as a Firefighter,
without losing credit for the time that he was a Member of the System. If a vested
Member leaves the employ of the Fire Department, his Accumulated Contributions
will be returned only upon his written request. If a Member who is not vested is not
re- employed as a Firefighter with the Fire Department within five (5) years, his
Accumulated Contributions shall be returned. Upon return of a Member's
Accumulated Contributions, all of his rights and benefits under the System are
forfeited and terminated. Upon any re- employment, 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 Firefighter
repays into the Fund the contributions he has withdrawn, with interest, as
determined by the Board, within ninety (90) days after his re- employment.
The years or fractional parts of a year that a Member serves 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, after separation from
employment as a Firefighter with the City to perform training or service, shall be
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added to his years of Credited Service for all purposes, including vesting, provided
that:
A. The Member must return to his employment as a Firefighter within one (1)
year from the earlier of the date of his military discharge or his release from
active service.
B. The Member is entitled to re- employment under the provisions of the
Uniformed Services Employment and Re- employment Rights Act
(AUSTERE), (P.L.103 -353).
C. The maximum credit for military service pursuant to this paragraph shall be
five (5) years.
Effective Date means April 20, 1993.
Firefighter means an actively employed full -time person employed by the City,
including his initial probationary employment period, who is certified as a Firefighter
as a condition of employment in accordance with the provisions of §633.35, Florida
Statutes, and whose duty it is to extinguish fires, to protect life and to protect
property.
Fund means the trust fund established herein as part of the System.
Member means an actively employed 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.
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 basic compensation paid by the City to a Member, plus all tax
deferred, tax sheltered and tax exempt items of income derived from elective
employee payroll deductions or salary reductions otherwise includible in basic
compensation. Compensation in excess of the limitations set forth in Section
401(a)(17) of the Code shall be disregarded. The limitation on compensation for
an "eligible employee" shall not be less than the amount which was allowed to be
taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is
an individual who was a Member before the first plan year beginning after
December 31, 1995.
Spouse means the lawful wife or husband of a Member or Retiree at the time
benefits become payable.
System means the City of Okeechobee Municipal Firefighters' Pension Fund as
contained herein and all amendments thereto.
2 Masculine Gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine
genders.
SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
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A. All Firefighters as of the Effective Date, and all future new Firefighters, shall
become Members of this System as a condition of employment.
B. All future new Firefighters shall be required to complete a medical
examination as prescribed by the City.
0 2. Designation of Beneficiary. Each 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 of this ordinance is hereby
vested in a Board of Trustee. The Board is hereby designated as the plan
administrator. The Board shall consist of five (5) Trustees, two (2) of whom, unless
otherwise prohibited by law, shall be legal residents of the City, who shall be
appointed by the Okeechobee City Council, and two (2) of whom shall be full -time
Firefighter Members of the System, who shall be elected by a majority of the
Firefighters who are Members of the System. The fifth Trustee shall be chosen by
a majority of the previous four (4) Trustees as provided for herein, and such
person's name shall be submitted to the Okeechobee City Council. Upon receipt
of the fifth person's name, the Okeechobee City Council 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 (4) Trustees appointed or
elected as herein provided and shall serve a two (2) year term unless he sooner
vacates the office. Each resident Trustee shall serve as Trustee for a period of two
(2) years, unless he sooner vacates the office or is sooner replaced by the
Okeechobee City Council at whose pleasure he shall serve. Each Member Trustee
shall serve as Trustee for a period of two (2) years, unless he sooner leaves the
employment of the City as a Firefighter or otherwise vacates his office as Trustee,
whereupon a successor shall be chosen in the same manner as the departing
Trustee. Each Trustee may succeed himself in office. The Board shall establish
and administer the nominating and election procedures after 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 (1) 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 abstain from voting as the result of a
conflict of interest provided that Trustee complies with the provisions of Section
112.3143, Florida Statutes.
4. The Board shall engage such actuarial, accounting, legal, and other services as
shall be required to transact the business of the System. The compensation of all
persons engaged by the Board and all other expenses of the Board necessary for
the operation of the System shall be paid from the Fund at such rates and in such
amounts as the Board shall agree.
In the event the Board chooses to use the City's legal counsel, actuary or other
professional, technical or other advisors, it shall do so only under terms and
conditions acceptable to the Board.
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.
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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 membership and benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other
expenditures arising through operation of the System and Fund.
H. To have performed actuarial studies and valuations, at least as often as
required by law, and make recommendations regarding any and all changes
in the provisions of the System.
I. To perform such other duties as are required to prudently administer the
System.
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there exists the Fund, into which shall be deposited all of the
contributions and assets whatsoever attributable to the System.
2. The actual custody and supervision of the Fund (and assets thereof) shall be
vested in the Board. Payment of benefits and disbursements from the Fund shall
be made by the disbursing agent but only upon written authorization from the
Board.
3. All funds of the Municipal Firefighters' Pension 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 is liable for
the safekeeping of funds for the City. However, any funds so deposited with the
Finance Director of the City shall be kept in a separate fund by the Finance Director
or clearly identified as such funds of the Municipal Firefighters' Pension Fund. In
lieu thereof, the Board shall deposit the funds of the Municipal Firefighters' Pension
Fund in a qualified public depository as defined in §280.02, Florida Statutes, which
depository with regard to such funds shall conform to and be bound by all of the
provisions of Chapter 280, Florida Statutes. In order to fulfill its investment
responsibilities as set forth herein, the Board may retain the services of a custodian
bank, an investment advisor registered under the Investment Advisors Act of 1940
or otherwise exempt from such required registration, an insurance company, or a
combination of these, for the purposes of investment decisions and management.
Such investment manager shall have discretion, subject to any guidelines as
prescribed by the Board, in the investment of all Fund assets.
4. All funds and securities of the System may be commingled in the Fund, provided
that accurate records are maintained at all times reflecting the financial composition
of the Fund, including accurate current accounts and entries as regards the
following:
A. Current amounts of Accumulated Contributions of Members on both an
individual and aggregate account basis, and
B. Receipts and disbursements, and
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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 System 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 Okeechobee City Council
to amend or terminate this Fund, provided that no amendment or Fund
termination shall ever result in the use of any assets of this Fund except for
the payment of regular expenses and benefits under this System, except as
otherwise provided herein. All contributions from time to time paid into the
Fund, and the income thereof, without distinction between principal and
income, shall be held and administered by the Board or its agent in the Fund
and the Board shall not be required to segregate or invest separately any
portion of the Fund.
B. All monies paid into or held in the Fund shall be invested and reinvested by
the Board and the investment of all or any part of such funds shall be limited
to:
(1) Annuity and life insurance contracts with life insurance companies in
amounts sufficient to provide, in whole or in part, the benefits to which
all of the Members in the Fund shall be entitled under the provisions
of this System and pay the initial and subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank insured by
the Bank Insurance Fund or a savings /building and loan association
insured by the Savings Association Insurance Fund which is
administered by the Federal Deposit Insurance Corporation or a state
or federal chartered credit union whose share accounts are insured
by the National Credit Union Share Insurance Fund.
(3)
Obligations of the United States or obligations guaranteed as to
principal and interest by the government of the United States or by an
agency of the government of the United States.
(4) Bonds issued by the State of Israel.
(5) Stocks, commingled funds administered by national or state banks,
mutual funds and bonds or other evidences of indebtedness, provided
that:
(a)
Except as provided in paragraph (b), all individually held
securities and all securities in a commingled or mutual fund
must be issued or guaranteed by a corporation organized
under the laws of the United States, any state or organized
territory of the United States, or the District of Columbia.
(b) Up to ten percent (10 of the assets of the Fund may be
invested in foreign securities.
Page 7 of 26
(c) The Board shall not invest more than five percent (5 of its
assets in the common stock, capital stock, or convertible
securities of any one issuing company, nor shall the aggregate
investment in any one issuing company exceed five percent
(5 of the outstanding capital stock of that company; nor
shall the aggregate of its investments in common stock, capital
stock and convertible securities at cost exceed sixty percent
(60 of the assets of the Fund.
(6) Real estate, provided the Board shall not invest more than ten
percent (10 at cost in real property or real estate.
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 Section 175.071, 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 of the 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.
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
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the Actuarial Equivalent of the benefit to which the Member, Retiree or
Beneficiary was correctly entitled, shall be paid. Overpayments shall be
charged against payments next succeeding the correction or collected in
another manner if prudent. Under payments 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 provided for herein.
L. In any application to or proceeding or action in the courts, only the Board
shall be a necessary party, and no Member or other person having an
interest in the Fund shall be entitled to any notice or service of process. Any
judgment entered in such a proceeding or action shall be conclusive upon
all persons.
M. 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 five percent (5 of his Salary.
Member contributions withheld by the City on behalf of the Member shall be
deposited with the Board immediately after each pay period. The contribu-
tions made by each Member to the Fund shall be designated as employer
contributions pursuant to §414(h) of the Code. Such designation is contin-
gent upon the contributions being excluded from the Members' gross income
for Federal Income Tax purposes. For all other purposes of the System,
such contributions shall be considered to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
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 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. Citv Contributions. So long as this System is in effect, the City shall make quarterly
contributions to the Fund in an amount equal to the difference in each year,
between the total aggregate Member contributions for the year, plus state contribu-
tions for such year, and the total cost for the year, as shown by the most recent
actuarial valuation of the System. The total cost for any year shall be defined as
the total normal cost plus the additional amount sufficient to amortize the unfunded
past service liability as provided in Part VII of Chapter 112, Florida Statutes.
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 addi-
tional 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 attainment of age
fifty -five (55) and the completion of ten (10) years of Credited Service or upon the
completion of twenty-five (25) years of Credited Service regardless of age. A
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Member may retire on his normal retirement date or on the first day of any month
thereafter, and each Member shall become one hundred percent (100 vested in
his 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 normal
retirement date shall receive a monthly benefit which shall commence on the first
day of the month coincident with or next following his Retirement and be continued
thereafter during the 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.
3. Early Retirement Date. A Member may retire on his 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 ten (10) years of Credited Service. Early
retirement under the System is Retirement from employment with the City on or
after the early retirement date and prior to the normal retirement date.
4. Early Retirement Benefit. A Member retiring hereunder on his early retirement date
may receive either a deferred or an immediate monthly retirement benefit payable
in the same form as for normal retirement as follows:
A. A deferred monthly retirement benefit which shall commence on what would
have been his normal retirement date, determined based upon his 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
normal retirement date, determined based upon his actual years of Credited
Service, except that Credited Service and Average Final Compensation shall
be determined as of his early retirement date; or
B. An immediate monthly retirement benefit which shall commence on his early
retirement date and shall be continued on the first day of each month
thereafter. The benefit payable shall be as determined in paragraph A
above, which is reduced by three percent (3 for each year the
commencement of benefits precedes the date which would have been the
Member's normal retirement date had he continued employment as a
Firefighter.
5. Cost of Living Adiustment. Beginning retroactively to October 1, 1999, and on
every October 1 of odd numbered years thereafter, the monthly benefit of each
Retiree (or their Beneficiary or joint annuitant), including disability Retirees and
vested terminated persons, who has been receiving benefits for at least one (1)
year as of the adjustment date, shall be increased by one -half of one percent (.5
This benefit shall apply to all current and future eligible Retirees (or their
Beneficiary or joint annuitants).
SECTION 7. DEATH BENEFITS
1. Prior to Vesting or Eligibility for Retirement. The Beneficiary of a deceased Member
who was not receiving monthly benefit payments, or who was not yet vested or
eligible for retirement shall receive a refund of one hundred percent (100 of the
Member's Accumulated Contributions.
2. Deceased Members Vested or Eligible for Retirement. Any Member, whether or not
still actively employed, who has a right to a vested accrued benefit, shall be eligible
for a death benefit if he dies before collecting any other benefits from this System.
The amount of the death benefit shall be equal to fifty percent (50 of the
actuarially equivalent single sum value of the Member's vested accrued benefit, or
his Accumulated Contributions, whichever is greater.
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If this single sum value is less than five thousand dollars ($5,000), it shall be paid
in a lump sum. If the value exceeds five thousand dollars ($5,000), the Beneficiary
may elect payment under any of the optional forms available for retirement benefits
or a lump sum payment.
If a Member is eligible for early or normal retirement, but remains in employment
and dies while so employed, the death benefit shall be determined as follows: It
shall be assumed that such deceased Member had retired immediately preceding
his date of death and elected the Ten Year Certain and Life Thereafter option.
However, the death benefit shall be equal to fifty percent (50 of the actuarially
equivalent single sum value of the Member's vested accrued benefit, if larger than
the Ten Year Certain and Life Thereafter option, described earlier in this Section.
Notwithstanding the previous paragraphs of this subsection 2, in the event a
Member or terminated vested person, with ten (10) or more years of Credited
Service, dies prior to Retirement or prior to receipt of benefits, his Beneficiary shall
be entitled to the accrued normal or early retirement benefit payable at the
deceased Member's early or normal retirement age less the value of any benefits
paid or payable under this subsection.
SECTION 8. DISABILITY.
1. Disability Benefits In -Line of Duty. Any Member who shall become totally and per-
manently disabled to the extent that he is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service
as a Firefighter, which disability was directly caused by the performance of his duty
as a Firefighter, shall, upon establishing the same t the satisfaction of the Board,
be entitled to a monthly pension equal to three percent (3 of his 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, 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.
(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.
Page 11 of 26
(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 hospital licensed
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 occupational 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
employment:
i. Provides emergency medical treatment in a non- health-
care setting where there is a potential for transfer of
body fluids between persons;
ii. 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;
iii. 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
transported and, in performing such duties, may be
exposed to body fluids.
(e) "Occupational exposure," in the case of hepatitis, meningococ-
cal 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 declara-
tion that, to the best of his knowledge and belief:
(a) In the case of a medical condition caused by or derived from
hepatitis, he has not:
i. 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;
Page 12 of 26
(3)
(5)
ii. 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;
iii. Engaged in unsafe sexual practices or other high -risk
behavior, as identified by the Centers for Disease
Control or the Surgeon General of the 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.
(b) In the case of meningococcal meningitis, in the ten (10) days
immediately preceding diagnosis he was not exposed, outside
the scope of his employment, to any person known to have
meningococcal meningitis or known to be an asymptomatic
carrier of the disease.
(c) In the case of tuberculosis, in the period of time since the
Member's last negative tuberculosis skin test, he has not been
exposed, outside the scope of his employment, to any person
known by him to have tuberculosis.
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 Memberfrom 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.
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. This paragraph does not apply in the case of
meningococcal meningitis.
Page 13 of 26
3. Disability Benefits Not -in -Line of Duty. Any Member with five (5) or more years of
Credited Service who shall become totally and permanently disabled to the extent
that he is unable, by reason of a medically determinable physical or mental
impairment, to render useful and efficient service as a Firefighter, which disability
is not directly caused by the performance of his duties as a Firefighter shall, upon
establishing the same to the satisfaction of the Board, be entitled to a monthly
pension equal to the greater of (i) or (ii) where (i) is two percent (2 of Average
Final Compensation multiplied by the total years of Credited Service and (ii) is a
benefit determined in the same manner as for early retirement as set forth in
Section 6, subsection 4B, providing for an actuarial reduction. In any event, the
minimum amount paid to the Member shall be twenty -five percent (25 of his
Average Final Compensation. 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.
(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.
4. Conditions Disqualifying Disability Benefits. Each Firefighter 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, intoxicants, or narcotics.
B. Injury or disease sustained while willfully and illegally participating in fights,
riots 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 by the Member after his employment as a
Firefighter with the City Okeechobee shall have terminated.
5. Physical Examination Requirement. A Member shall not become eligible for
disability benefits until and unless he undergoes a physical examination by a quali-
fied 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 is unable to render useful and efficient service
as a Firefighter, the Board shall recommend to the City that the Retiree be returned
to performance of duty as a Firefighter, and the Retiree so returned shall enjoy the
same rights that he had at the time he 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 shall forfeit the right to his pension.
The cost of the physical examination and /or re- examination of the Member claiming
or the 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 and hotel accommodations, shall
be borne by the Fund.
If the Retiree recovers from disability and reenters the service of the City as a
Firefighter, his service shall be deemed to have been continuous, and the period
for which Member received a disability retirement income shall be Credited Service
for purposes of the System. If the Firefighter fails to reenter the service of the City
as a Firefighter within thirty (30) days from the date the Board determines that the
Retiree is no longer permanently and totally disabled to the extent that he is unable
Page 14 of 26
to render useful and efficient service as a Firefighter, the Member's future benefits
shall be determined as though he initially terminated employment on the date the
Board determined that he was permanently and totally disabled to the extent that
he was unable to render useful and efficient service as a Firefighter.
The Board shall have the power and authority to make the final decisions regarding
all disability claims.
6. Disability Payments. 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 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. If the Retiree recovers from the disability prior to his normal retirement date,
the payment due next preceding the date of such recovery, or
B. If the Retiree dies without recovering from disability or attains his normal
retirement date while still disabled, the payment due next preceding his
death or the 120th 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 1.A. or 1.B., which shall be the Actuarial Equivalent of the
normal form of benefit.
7 Benefit Offsets. 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 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 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 of forty -two percent (42
of Average Final Compensation or two percent (2 of Average Final
Compensation times years of Credited Service.
SECTION 9. VESTING.
If a Member terminates his employment as a Firefighter, 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 ten (10) years Credited Service upon termination, the
Member shall be entitled to a refund of his Accumulated Contributions or the
Member may leave it deposited with the Fund.
2. If the Member has ten (10) 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 commencing at Member's otherwise normal or early
retirement date, determined based upon his actual years of Credited Service,
provided he does not elect to withdraw his Accumulated Contributions and provided
the Member survives to his otherwise normal or early retirement date. If the
Member does not withdraw his Accumulated Contributions and does not survive to
his otherwise normal or early retirement date, his designated Beneficiary shall be
entitled to a benefit as provided herein for a deceased Member, vested or eligible
for Retirement under Pre Retirement Death.
Page 15 of 26
3 Any vested Member of the System whose position is terminated, for whatever
reason, but who remains employed by the City in some other capacity, shall have
all retirement benefits accrued up to the date of such termination under this System
preserved, provided he does not elect to withdraw his Accumulated Contributions
from this System. Such accrued retirement benefits shall be payable at his
otherwise early (reduced as for early retirement) or normal retirement date
hereunder, or later, in accordance with the provisions of this System; provided
further, however, that benefits shall not be payable under this System during any
period of continued employment by the City.
SECTION 10. OPTIONAL FORMS OF BENEFITS.
1. In lieu of the amount and form of retirement income payable in the event of normal
or early retirement as specified herein, a Member, upon written request to the Board
may elect to receive a retirement income or benefit of equivalent actuarial value
payable in accordance with one of the following options:
A. A retirement income of a modified monthly amount, payable to the Retiree
during the lifetime of the Retiree and following the death of the Member, one
hundred percent (100 seventy -five percent (75 sixty -six and two- thirds
percent (66 2/3 or fifty percent (50 of such monthly amount payable to
a joint pensioner for his lifetime. Except where the Retiree's joint pensioner
is his Spouse, the present value of payments to the Retiree shall not be Tess
than fifty percent (50 of the total present value of payments to the Retiree
and his joint pensioner.
B. A retirement income of a modified monthly amount payable to the Retiree for
his lifetime only.
C. If a Member retires prior to the time at which social security benefits are
payable, he may elect to receive an increased retirement benefit until such
time as social security benefits shall be assumed to commence and a
reduced benefit thereafter in order to provide, to as great an extent as
possible, a more level retirement allowance during the entire period of
retirement. The amounts payable shall be as recommended by the actuaries
for the system, based upon the social security law in effect at the time of the
Member's retirement. This option may be combined with other optional
forms of benefits.
2. The Member, upon electing any option of this Section, will designate the joint
pensioner (subsection 1.A. 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 (1) or more primary Beneficiaries where applicable.
A Member may change his 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 designated Beneficiary at any
time, but my only change his joint pensioner twice. Subject to the restriction in the
previous sentence, a Member may substitute a new joint pensioner for a deceased
joint pensioner.
3. The consent of a Member 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
redetermined to take into account the age of the former joint pensioner, the new
joint pensioner and the Retiree and to ensure that the benefit paid is the Actuarial
Equivalent of the Member'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
Page 16 of 26
Retiree, such benefits as are payable in the event of the death of the Retiree
subsequent to his 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 normal retirement date or early retirement date,
whichever first occurs, no retirement benefit will be payable under the option
to any person, but the benefits, if any, will be determined under Section 7.
B. If the designated Beneficiary (or Beneficiaries) or joint pensioner dies before
the Member's Retirement under the System, the option elected will be can-
celed automatically and a retirement income of the normal form and amount
will be payable to the Member upon his 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
Retirement.
C. If both the Retiree and the Beneficiary (or Beneficiaries) designated by
Member or Retiree die before the full payment has been effected under any
option providing for payments for a period certain and life thereafter, made
pursuant to the provisions of subsection 1, the Board may, in its discretion,
direct that the commuted value of the remaining payments be paid in a lump
sum and in accordance with Section 11.
D. If a Member continues beyond his normal retirement date pursuant to the
provisions of Section 6, subsection 1, and dies prior to his 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 death
occurred.
6. A Firefighter may not change his retirement option after the date of cashing or
depositing his 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 monthly benefit amount is less than one hundred dollars ($100.00)
or the total commuted value of the remaining monthly income payments to be paid
do not exceed five thousand dollars ($5,000.00). 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 death. Each designation may be
revoked or changed by such Member or Retiree by signing and filing with the Board
a new designation -of- beneficiary form. Upon such change, the rights of all
previously designated Beneficiaries to receive any benefits under the System shall
cease.
2. If a deceased Member or Retiree failed to name a Beneficiary in the manner
prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a
deceased Member or Retiree predeceases 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 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.
Page 17 of 26
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.
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 required by Section
175.261, 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 Firefighters employed by the Municipality in such a manner as to show the
name, address, date of employment and date such employment is terminated.
SECTION 15. MAXIMUM PENSION.
1. Basic Limitation. Subject to the adjustments hereinafter set forth, the maximum
amount of annual retirement income payable with respect to a Member under this
System shall not exceed ninety thousand dollars ($90,000).
For purposes of applying the above limitation, benefits payable in any form other
than a straight life annuity with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the Actuarial Equivalent of a
straight life annuity. For purposes of this Section, the following benefits shall not
be taken into account:
(1) Any ancillary benefit which is not directly related to retirement income
benefits;
(2) 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
§415(b)(1) of the Code.
2. Participation in Other Defined Benefit Plans. The limitation 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 §414(j) of the Code) maintained by the City shall apply
as if the total benefits payable under all defined benefit plans in which the Member
has been a member were payable from one (1) plan.
3. Adiustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty -two (62), the ninety thousand dollar ($90,000) limitation prescribed by
Page 18 of 26
this Section shall be reduced in accordance with Regulations issued by the
Secretary of the Treasury pursuant to the provisions of §415(b) of the Code,
but not less than seventy -five thousand dollars ($75,000) if the benefit
begins at or after age fifty -five (55). In the event the Member's retirement
benefit becomes payable before age fifty -five (55), the seventy -five thousand
dollar ($75,000) limitation shall be reduced from age fifty -five (55) in
accordance with Regulations issued by the Secretary of the Treasury pur-
suant to the provisions of §415(b) of the Code.
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service, the adjustments provided for in A. above shall not apply.
C. The reductions provided for in A. above shall not be applicable to disability
benefits paid 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
sixty -five (65), for purposes of determining whether this benefit meets the
limitation 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 using an assumed interest rate of five percent
(5 and shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his delegate.
4. Less than Ten (10) Years of Service. The maximum retirement benefits payable
under this Section to any Member who has completed less than ten (10) years of
Credited Service with the City shall be the amount determined under subsection 1
of this Section multiplied by a fraction, the numerator of which is the number of the
Member's years of Credited Service and the denominator of which is ten (10). The
reduction provided 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.
5. 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
limitations 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 any prior Plan Year and the City has not at any
time maintained a qualified defined contribution plan in which the Member
participated.
6. Member in Defined Contribution Plan. In any case where a Member under this
System is also a member in a "Defined Contribution Plan" as defined in §414(i) of
the Code, maintained by the City, the sum of the "Defined Benefit Plan Fraction"
and the "Defined Contribution Plan Fraction" (both as defined in §415(e) of the
Code) shall not, subject to the restrictions and exceptions contained in §2004 of the
Act, exceed 1.0. This limitation is repealed effective January 1, 2000.
7. 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 forfei-
tures 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 agree-
ment of the Board and the plan administrator of all other plans covering such
Member.
Page 19 of 26
9. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
8. Cost -of- Living Adiustments. The limitations as stated in Subsections 1, 2, 3, and
6 herein shall be adjusted to the time payment of a benefit begins in accordance
with any cost -of- living adjustments prescribed by the Secretary of the Treasury
pursuant to §415(d) of the Code.
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 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 16. DISTRIBUTION OF BENEFITS.
Notwithstanding any other provision of this System to the contrary, a form of retirement
income payable from this System after the Effective Date of this ordinance, shall satisfy
the following conditions:
1. If the retirement income is payable before the Member's death,
A. It shall either be distributed or commence to the Member not 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 -1/2), or the calendar year in
which Member retires,
B. The distribution shall commence not later than the calendar year defined
above; and a), shall be paid over the life of the Member or over the lifetimes
of the Member and Spouse, issue or dependent, or b), shall be paid over the
period extending not beyond the life expectancy of the Member and Spouse,
issue or dependent.
Where a form of retirement income payment has commenced in accordance with
the preceding paragraphs and the Member dies before his entire interest in the
System has been distributed, the remaining portion of such interest in the System
shall be distributed no less rapidly than under the form of distribution in effect at the
time of the Member's death.
2. If the Member's death occurs before the distribution of his interest in the System
has commenced, the Member's entire interest in the System shall be distributed
within five (5) years of the Member's death, unless it is to be distributed in
accordance with the following rules:
A. The Member's remaining interest in the System is payable to his Spouse,
issue or dependent;
B. The remaining interest is to be distributed over the life of the Spouse, issue
or dependent or over a period not extending beyond the life expectancy of
the Spouse, issue or dependent; and
C. Such distribution begins within one (1) year of the Member's death unless
the Member's Spouse shall receive the remaining interest in which case the
distribution need not begin before the date on which the Member would have
attained age seventy and one -half (70 -1/2) and if the Spouse dies before the
Page 20 of 26
distribution to the Spouse begins, this Section shall be applied as if the
Spouse were the Member.
1. Interest of Members in System. At no time prior to the satisfaction of all liabilities
under the System with respect to Members and their Spouses or Beneficiaries, shall
any part of the corpus or income of the Fund be used for or diverted to any purpose
other than for their exclusive benefit.
SECTION 17. MISCELLANEOUS PROVISIONS.
2. No Reduction of Accrued Benefits. No amendment or ordinance shall be adopted
by the City Council of the City of Okeechobee which shall have the effect of
reducing the then vested accrued benefits of Members or a Member's Beneficiaries.
3. Qualification of System. It is intended that the System will constitute a qualified
public pension plan under the applicable provisions of the Code, as now in effect
or hereafter amended. Any modification or amendment of the System may be made
retroactively, if necessary or appropriate, to qualify or maintain the System as a
Plan meeting the requirements of the applicable provisions of the Code as now in
effect or hereafter amended, or any other applicable provisions of the U.S. federal
tax laws, as now in effect or hereafter amended or adopted, and the regulations
issued thereunder.
4. Use of Forfeitures. Forfeitures arising from terminations of service of Members
shall serve only to reduce future City contributions.
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 extent that the assets of the Fund may be determined to be inade-
quate.
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 (100 of benefits accrued to date of repeal and the assets of
the System shall be allocated in an equitable manner to provide benefits on a
proportionate basis to the persons so entitled in accordance with the provisions
thereof.
3. The following shall be the order of priority for purposes of allocating the assets of
the System as of the date of repeal of this ordinance, or if contributions to the
System are discontinued with the date of such discontinuation being determined by
the Board.
A. Apportionment shall first be made in respect of each Retiree receiving a
retirement or disability benefit hereunder on such date, each person
receiving a benefit on such date on account of a retired or disabled (but
since deceased) Member, and each Member who has, by such date, become
eligible for normal retirement but has not yet retired, an amount which is the
Actuarial Equivalent of such benefit, provided that, if such asset value be
less than the aggregate of such amounts, such amounts shall be proportion-
Page 21 of 26
ately reduced so that the aggregate of such reduced amounts will be equal
to such asset value.
B. If there be any asset value remaining after the apportionment under
paragraph A, apportionment shall next be made in respect of each Member
in the service of the City on such date who is vested and who is not entitled
to an apportionment under paragraph A, in the amount required to provide
the Actuarial Equivalent of the vested portion of the accrued normal
retirement benefit (but not Tess than Accumulated Contributions), based on
the Credited Service and Average Final Compensation as of such date, and
each vested former Member then entitled to a deferred benefit who has not,
by such date, begun receiving benefit payments, in the amount required to
provide said Actuarial Equivalent of the vested portion of the accrued normal
retirement benefit (but not less than Accumulated Contributions), provided
that, if such remaining asset value be Tess than the aggregate of the
amounts apportioned hereunder, such latter amounts shall be propor-
tionately reduced so that the aggregate of such reduced amounts will be
equal to such remaining asset value.
C. If there be any asset value after the apportionments under paragraphs A and
B, apportionment shall be made in respect of each Member in the service of
the City on such date who is not entitled to an apportionment under para-
graphs A and B in the amount equal to Member's Accumulated Contribu-
tions, provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder such latter amount shall
be proportionately reduced so that the aggregate of such reduced amounts
will be equal to such remaining asset value.
D. If there be any asset value remaining after the apportionments under
paragraphs A, B, and C, apportionment shall lastly be made in respect of
each Member included in paragraph C above to the extent of the Actuarial
Equivalent of the non vested accrued normal retirement benefit, less the
amount apportioned in paragraph C, based on the Credited Service and
Average Final Compensation as of such date, provided that, if such
remaining asset value be less than the aggregate of the amounts appor-
tioned hereunder, such amounts shall be reduced so that the aggregate of
such reduced amounts will be equal to such remaining asset value.
E. In the event that there be asset value remaining after the full apportionment
specified in paragraphs A, B, C, and D, such excess shall be returned to the
City, Tess return of the State's contributions to the State, provided that, if the
excess is less than the total contributions made by the City and the State to
the date of termination such excess shall be divided proportionately to the
total contributions made by the City and the State.
The allocation of the Fund provided for in this subsection may, as decided
by the Board, be carried out through the purchase of insurance company
contracts to provide the benefits determined in accordance with this
subsection. The Fund may be distributed in one sum to the persons entitled
to said benefits or the distribution may be carried out in such other equitable
manner as the Board may direct. The Fund may be continued in existence
for purposes of subsequent distributions.
If, at any time during the first ten (10) years after the effective date of the
ordinance originally establishing this System, the System shall be terminated
or the full current costs of the System shall not have been met, anything in
the System to the contrary notwithstanding, City contributions which may be
used for the benefit of any one (1) of the twenty -five (25) highest paid
Members on the effective date, whose anticipated annual retirement
allowance provided by the City's contributions at Member's normal retirement
date would exceed one thousand five hundred dollars ($1,500), shall not
exceed the greater of either a) twenty thousand dollars ($20,000), or b), an
amount computed by multiplying the smaller of ten thousand dollars
($10,000) or twenty percent (20 of such Member's average annual
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earnings during his last five (5) years of service by the number of years of
service since the effective date. In the event that it shall hereafter be deter-
mined by statute, court decision, ruling by the Commissioner of Internal
Revenue, or otherwise, that the provisions of this paragraph are not then
necessary to qualify the System under the Code, this paragraph shall be
ineffective without the necessity of further amendment of this ordinance.
4. After all the vested and accrued benefits provided hereunder have been paid and
after all other liabilities have been satisfied, then and only then shall any remaining
funds revert to the general fund of the City.
SECTION 19. EXEMPTION FROM EXECUTION. NON ASSIGNABILITY.
Except as otherwise provided by law, the pensions, annuities, or any other benefits
accrued or accruing to any person under the provisions of this ordinance and the
Accumulated Contributions and the cash securities in the Fund created under this
ordinance are hereby exempted from any state, county or municipal tax 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 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 admitted commis-
sion, aid or abetment of the following specified offenses, shall forfeit all rights and
benefits under this System, except for the return of his Accumulated Contributions,
but without interest, 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 acts
or in which he is employed, of the right to receive the faithful performance of
his 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 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 convic-
tion by the Senate of an impeachable offense.
Page 23 of 26
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 commis-
sion 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 case against forfeiture.
4. Any Member who has received benefits from the System in excess of his
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
Accumulated Contributions, but without interest. 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.
2. This Section shall not be construed so as to relieve any insurance company or
other entity liable to defend the claim or liable for payment of the judgment or claim,
from any liability, nor does this Section waive any provision of law affording the City
immunity from any suit in whole or part, or waive any other substantive or
procedural rights the City may have.
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. TRANSFERS WITHIN THE CITY.
If a member of any of the City's three (3) retirement systems transfers to either of the other
two (2) systems, he must choose one of the following procedures with regard to Credited
Service accrued to date of transfer.
1. The Member may take a refund of his Accumulated Contributions, in which event
no pension benefit shall be payable based on Credited Service attributable to the
period covered.
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2. The member may leave his Accumulated Contributions in the fund, in which event
his Credited Service with both systems shall be combined for purposes of
determining eligibility for benefits and for vesting. When the member is eligible to
receive a benefit, he shall receive benefits from both systems, which shall consist
of accrued benefits under each system based on the provisions of the respective
system and the earnings and Credited Service under that system.
SECTION 25. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a Firefighter serves or has served on active duty
in the active military service of the Armed Forces of the United States, the United States
Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, honorably
or under honorable conditions, prior to first and initial employment with the City Fire
Department shall be added to his years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed had
he been a member of the System for the years or fractional parts of years for which
he is requesting credit plus amounts actuarially determined such that the crediting
of service does not result in any cost to the Fund plus payment of costs for all
professional services rendered to the Board in connection with the purchase of
years of Credited Service.
2. The request shall be made only once and made by the Member on or before six (6)
months from the date of his employment with the City Fire Department.
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 upon
receipt of which Credited Service shall be given.
4. The maximum credit under this Section shall be four (4) years.
5. Credited Service purchased pursuant to this section shall not count toward vesting.
SECTION 26. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS.
1. General. This Section applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the plan 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.
2. Definitions.
A. Eligible Rollover Distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and
the distributee's designated Beneficiary, or for a specified period of ten (10)
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.
B. Eligible Retirement Plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the Code, an individual
retirement annuity described in section 408(b) of the Code, an annuity plan
described in section 403(a) of the Code, or a qualified trust described in
section 401(a) of the Code, that accepts the distributee's eligible rollover
distribution. However, in the case of an eligible rollover distribution to the
surviving Spouse, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
Page 25 of 26
C. Distributee: A distributee includes an employee or former employee. In
addition, the employee's or former employee's surviving Spouse is a
distributee with regard to the interest of the Spouse.
D. Direct Rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
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