0725 FF Pension FundORDINANCE NO. 725
AN ORDINANCE OF THE CITY OF OKEECHOBEE
AMENDING THE CITY OF OKEECHOBEE MUNICIPAL
FIREFIGHTERS' PENSION TRUST FUND, AS ADOPTED
BY ORDINANCE 656 OF THE CITY OF OKEECHOBEE;
AMENDING SECTION 1, DEFINITIONS, TO AMEND 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 Firefighters' Pension Trust
Fund, as adopted by Ordinance 656 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 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 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
reemployed as a Firefighter, without losing credit for the time that he was a Member of the
System. If the Member leaves the employ of the Fire Department, his Accumulated Contribu-
tions 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. Upon any
reemployment, a Firefighter will 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
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the Firefighter repays into the Fund the contributions he has withdrawn, with interest, within
90 days after his reemployment.
Plan Year means the twelve (12) month period beginning October 1 and ending
September 30 of the following year.
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. 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 Firefighters' Pension Trust
Fund, as adopted by Ordinance 656 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 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,
Honda 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
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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
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:
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(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.
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 Firefighters' Pension Trust
Fund, as adopted by Ordinance 656 of the City of Okeechobee, as subsequently amended, is
further amended by amending Section 6, BENEFIT AMOUNTS AND ELIGIBILITY, to read
as follows:
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 sixty (60) 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 Member may retire on his normal retirement date or on the first
day of any month thereafter, and each Member shall become 100 vested in his accrued bene-
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fit 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 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 had he continued employ-
ment as a Firefighter 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 Firefighter.
SECTION 4: That the City of Okeechobee Municipal Firefighters' Pension Trust
Fund, as adopted by Ordinance 656 of the City of Okeechobee, as subsequently amended, is
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further amended by amending Section 8, DISABILITY, subsections 1, 2, 3 and 7, to read as
follows:
1. Disability Benefits In 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 Firefighter, which disability was directly caused by the
performance of his duty as a Firefighter, 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, providing for an actuarial reduction.
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 Firefighter 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. Additional Presumption. The presumption provided for in this subpara-
graph 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,
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mucous, and other fluids through which infectious
airborne organisms can be transmitted between persons.
(b) "Emergency rescue or public safety Member" means any
Member employed full time by the City as a firefighter,
paramedic, emergency medical technician, law enforce-
ment 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,
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;
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
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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.
(3) Immunization. Whenever any standard, medically recognized
vaccine or other form of immunization or prophylaxis exists for
the prevention of a communicable disease for which a 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
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(5)
of known or suspected occupational exposure to hepatitis
infection, meningococcal meningitis, or tuberculosis.
In order to be
11 1! I I 1
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
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.
(b) On or after June 15, 1995, an emergency rescue or public
safety Member may be required to undergo a
preemployment physical examination that tests for and
fails to reveal any evidence of hepatitis or tuberculosis.
3. Disability Benefits Not-in-Line of Duty.
Any Member with 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 deter-
minable 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
determined in the same manner as for early retirement as set forth in Section 6, subsection 4B,
providing for an actuarial reduction. 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 175, Florida Statutes, as amended from time to time.
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SECTION 5: That the City of Okeechobee Municipal Firefighters' Pension Trust
Fund, as adopted by Ordinance 656 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
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 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.
SECTION 6: That the City of Okeechobee Municipal Firefighters' Pension Trust
Fund, as adopted by Ordinance 656 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 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 Systems.
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
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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. Acjustmen c 'n T imitations.
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
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 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.
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5. Ten Thousand Dollar (;.0,000, mit.
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 System.
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 imitation 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.
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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 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 7: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 8: 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 hearin 6` day of Febrymy, 1999.
ATTEST:
ATTEST:
bm \ok \6ro \0I -07- 99.cin
omas,
City Clerk
Bonnie. 'Thomas CMC, City Clerk
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k, Mayor
Passed on second reading after public hearing this 2' da f March, 1999.
Ktrk, Mayor