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0726 PO Pension FundORDINANCE NO. 726 AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE RESTATED CITY OF OKEECHOBEE MUNICIPAL POLICE OFFICERS' PENSION TRUST FUND AS ADOPTED BY ORDINANCE NO. 657 AS SUBSEQUENTLY AMENDED; AMENDING THE DEFINITIONS OF "ACTUARIAL EQUIVALENT "CREDITED SERVICE" AND "SALARY" AND TO ADD THE DEFINITION OF "PLAN YEAR AMENDING SECTION 4, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 6 BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 8, DISABILITY; AMENDING SECTION 9 VESTING; AMENDING SECTION 16, MAXIMUM PENSION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA: SECTION 1. That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, as adopted by Ordinance No. 657 of the City of Okeechobee, as subsequently amended, is further amended by amending Section 1, DEFINITIONS by amending the definitions of "Actuarial Equivalent "Credited Service" and "Salary", and adding the definition of "Plan Year to read as follows: 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 8% interest and the 1983 Group Annuity Mortality Table for Males. Credited Service means the total number of years and fractional parts of years of service as a Police Officer with Member contributions when required, omitting intervening years or fractional parts of years when such Member was not employed by the City as a Police Officer. A Member may voluntarily leave his Accumulated Contributions in the Fund for a period of five (5) years after leaving the employ of the Police Department pending the possibility of being reemployed as a Police Officer, without losing credit for the time that he was a Member of the System. If the Member leaves the employ of the Police Department, his Accumulated Contributions will be returned upon his written request. Upon return of his Accumulated Contributions, all of his rights and benefits under the System are forfeited and terminated. The years or fractional parts of years that a Police Officer serves in the military service of the Armed Forces of the United States or the United States Merchant Marine, volun tarily or involuntarily, after separation from employment as a Police Officer with the City for the purpose of going on active duty, shall be added to his years of Credited Service, for all purposes, including vesting, pursuant to conditions that are required or permitted under state and federal law, as amended from time to time, provided that the Police Officer must return to his employment as a Police Officer within one (1) year from the date of his military discharge or release from active service under honorable conditions. Plan. ear means the twelve (12) month period beginning October 1 and ending September 30 of the following year. Salary means the total compensation for services rendered to the City as a Police Officer reported on the Member's W -2 form plus all tax deferred, tax sheltered and tax exempt items of income derived from elective employee payroll deductions or salary reductions. Compensation in excess of the limitations set forth in Section 401(a)(17) of the Code shall be 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. SECTION 2. That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, as adopted by Ordinance No. 657 of the City of Okeechobee, as subsequently amended, is further amended by amending Section 4, FINANCES AND FUND MANAGEMENT, to read as follows: 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 Police Officers' Pension Trust Fund may be deposited by the Board with the Finance Director of the City, acting in a ministerial capacity only, who shall be liable in the same manner and to the same extent as he 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 Police Officers' Pension Trust Fund. In lieu thereof, the Board shall deposit the funds of the Municipal Police Officers' Pension Trust Fund in a qualified public depository as defined in §280.02, Florida Statutes, which depository with regard to such funds shall conform 2 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 C. Benefit payments, and D. Current amounts clearly reflecting all monies, funds and assets whatsoever attributable to contributions and deposits from the City, and E. All interest, dividends and gains (or losses) whatsoever, and F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. 5. An audit shall be performed annually by a certified public accountant for the most recent fiscal year of the City showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. 6. The Board shall have the following investment powers and authority: A. The Board shall be vested with full legal title to said Fund, subject, however, and in any event to the authority and power of the 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 contribu- tions from time to time paid into the Fund, and the income thereof, without distinction between principal and income, shall be held and 3 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 indebted- ness, 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. (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. The Board may retain in cash and keep unproductive of income such amount of the Fund as it may deem advisable, having regard for the cash requirements of the System. D. 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. E. 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. F. 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, recapitaliza- tions, 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. G. 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. H. 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, certifica- tion, 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. I. Any overpayments or underpayments from the Fund to a Member, Retiree or Beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board in such a manner that the Actuarial Equivalent of the benefit to which the Member, Retiree or Beneficiary was correctly entitled, shall be paid. Overpayments shall be charged against payments next succeeding the correction or collected in another manner if prudent. Underpayments shall be made up from the Fund in a prudent manner. J. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits provided for herein. K. 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. L. 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 3. That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, as adopted by Ordinance No. 657 of the City of Okeechobee, as subsequently amended, is further amended by amending Section 6, BENEFIT AMOUNTS AND ELIGIBILITY, subsections 3 and 4, to read as follows: 6 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 had he continued employment as a Police Officer 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 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 Police Officer. SECTION 4. That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, as adopted by Ordinance No. 657 of the City of Okeechobee, as subsequently amended, is further amended by amending Section 8, DISABILITY, subsections 1, 2, 3 and 7, to read as follows: 1. Disability Benefits In- Line -of Duty. Any Member 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 Police Officer, which disability was directly caused by the performance of his duty as a Police Officer, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension determined in the same manner as 7 for early retirement as set forth in Section 6, subsection 4B, 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 Police Officer shall have successfully passed a physical examination upon entering into such service, including cardiogram, 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. Additionalhesumption. The presumption provided for in this subpara- graph B. shall apply only to those conditions described in this subpara- graph B. that are diagnosed on or after January 1, 1996. (1) Definitions. As used in this subsection 2.B., the following definitions apply: (a) (b) "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. "Emergency rescue or public safety Member" means any Member employed full time by the City as a firefighter, paramedic, emergency medical technician, law enforce- ment officer, or correctional officer who, in the course of employment, runs a high risk of occupational exposure to 8 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, meningococcal meningitis, or tuberculosis, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection. (2) Presumption Any emergency rescue or public safety Member who suffers a condition or impairment of health that is caused by hepatitis, meningococcal meningitis, or tuberculosis, that requires medical treatment, and that results in total or partial disability or death shall be presumed to have a disability suffered in the line of duty, unless the contrary is shown by competent evidence; however, in order to be entitled to the presumption, the Member must, by written affidavit as provided in Section 92.50, Florida Statutes, verify by written declaration that, to the best of his 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; 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; 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. In the case of meningococcal meningitis, in the 10 days immediately preceding diagnosis he was not exposed, (b) 10 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. (3) Tmmunization. Whenever any standard, medically recognized vaccine or other form of immunization or prophylaxis exists for the prevention of a communicable disease for which a presump- tion is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies established by the Advisory Committee on Immunization Practices of the U.S. Public Health Service, an emergency rescue or public safety Member may be required by the City to undergo the immunization or prophylaxis unless the Member's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the Member's health. Absent such written declaration, failure or refusal by an emergency rescue or public safety Member to undergo such immunization or prophylaxis disqualifies the Member from the benefits of the presumption. (4) Record of Exposures The City shall maintain a record of any known or reasonably suspected exposure of an emergency rescue or public safety Member in its employ to the disease described in this section and shall immediately notify the Member of such exposure. An emergency rescue or public safety Member shall file an incident or accident report with the City of each instance of known or suspected occupational exposure to hepatitis infection, meningococcal meningitis, or tuberculosis. (5) Required medical tests; preemployment physical. In order to be entitled to the presumption provided by this section: (a) An emergency rescue or public safety Member must, prior to diagnosis, have undergone standard, medically accept- able tests for evidence of the communicable disease for 11 3. (b) 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. 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. Any Member with five (5) years or more Credited Service who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically deter- minable physical or mental impairment, to render useful and efficient service as a Police Officer, which disability is not directly caused by the performance of his duties as a Police Officer shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension determined in the same manner as for early retirement as set forth in Section 6, subsection 4B, but 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. 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. This subsection 7 shall only be applicable to the extent it does not violate the minimum requirements of Chapter 185, Florida Statutes, as amended from time to time. SECTION 5. That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, as adopted by Ordinance No. 657 of the City of Okeechobee, as subsequently amended, is further amended by amending Section 9, VESTING, subsection 2., to read as follows: 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 12 Final Compensation and the benefit accrual rate as of the date of termination, payable to him commencing at the 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 normal or early retire- ment 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. SECTION 6. That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, as adopted by Ordinance No. 657 of the City of Okeechobee, as subsequently amended, is further amended by amending Section 16, MAXIMUM PENSION, to read as follows: SECTION 16. MAXIMUM PENSION. 1. Basic T imitation. 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 plan. 3. Adjustments 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 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 13 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 pursuant 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 provide 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. 14 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 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 adminis- trator of all other plans covering such Member. 8. Cost -of- Living Adjustments 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. 9. Additional Limitation on Pension Benefits Notwithstanding anything herein to the contrary: A. The normal retirement benefit or pension payable to a Retiree who becomes a Member of the System and who has not previously participated in such System, on or after January 1, 1980, shall not exceed one hundred percent (100 of his 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 another System or plan. 15 This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. SECTION 7: That all Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 8: That 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 9: That this Ordinance shall become effective upon adoption. Introduced on first reading and set for public hearing day of February 1999. Bonnie S. Thomas, CMC, City Clerk ATTEST: bm \ok \pol \01 -07- 99.ord Passed on second reading after public hearing this 2 d Bonnie S. Thomas, CMC, City Clerk 16 E. Kirk, Mayor f March, 1999. E. Kirk, Mayor