0655 General Employees Pension ORDINANCE NO. 655
AN ORDINANCE OF THE CITY OF OKEECHOBEE
AMENDING AND RESTATING THE CITY OF
OKEECHOBEE RETIREMENT SYSTEM FOR GENERAL
EMPLOYEES AS ADOPTED BY ORDINANCE 419 AND AS
SUBSEQUENTLY AMENDED; PROVIDING FOR DEFINI-
TIONS; PROVIDING FOR MEMBERSHIP; PROVIDING FOR
A BOARD OF TRUSTEES; PROVIDING FOR FINANCES
AND FUND MANAGEMENT; PROVIDING FOR CONTRI-
BUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND
ELIGIBILITY; PROVIDING FOR DEATH BENEFITS;
PROVIDING FOR DISABILITY BENEFITS; PROVIDING
FOR VESTING OF BENEFITS; PROVIDING OPTIONAL
FORMS OF BENEFITS; PROVIDING FOR BENEFICIARIES;
PROVIDING A CLAIMS PROCEDURE; PROVIDING FOR
A ROSTER OF RETIREES; PROVIDING FOR A BOARD
ATTORNEY AND PROFESSIONALS; PROVIDING FOR A
MAXIMUM PENSION LIMITATION; PROVIDING FOR
COMMENCEMENT AND 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
INDEMNIFICATION; PROVIDING FOR TRANSFERS
WITHIN THE CITY; PROVIDING FOR CREDIT FOR
MILITARY SERVICE PRIOR TO EMPLOYMENT;
PROVIDING FOR DIRECT TRANSFERS OF ELIGIBLE
ROLLOVER DISTRIBUTIONS; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Okeechobee General Employees 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
General Employees' Retirement Plan to consolidate all prior ordinances and Code provisions
and to incorporate Federal law; 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 General
Employees, as adopted by Ordinance 419 and as subsequently amended, be and the same is
amended and restated as set forth in the document designated CITY OF OKEECHOBEE
MUNICIPAL GENERAL EMPLOYEES' 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.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 4: 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.
Introduced on first reading this 6th day of
April 1993.
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C /flames E. IC'irk, Mayor
ATTEST:
Bonnie S. Thomas, CMC, CITY CLERK
Passed on second reading after public hearing this
20th day of April 1993.
0 ,14tAg--
VJames E. Dirk, MAYOR
ATTEST:
Bonnie S. 'T'ho`mas, CMC, CITY CLERK
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CITY OF OKEECHOBEE
MUNICIPAL GENERAL EMPLOYEES' PENSION TRUST FUND
CITY OF OKEECHOBEE
MUNICIPAL GENERAL EMPLOYEES' PENSION TRUST FUND
TABLE OF CONTENTS
SECTION PAGE NUMBER
DEFINITIONS 1
MEMBERSHIP 4
BOARD OF TRUSTEES 4
FINANCES AND FUND MANAGEMENT 6
CONTRIBUTIONS 12
BENEFIT AMOUNTS AND ELIGIBILITY 13
DEATH BENEFITS 15
DISABILITY 15
VESTING 19
OPTIONAL FORMS OF BENEFITS 20
BENEFICIARIES 23
CLAIMS PROCEDURES 23
ROSTER OF RETIREES 30
BOARD ATTORNEY AND PROFESSIONALS 30
MAXIMUM PENSION 31
COMMENCEMENT OF BENEFITS 34
DISTRIBUTIONS OF BENEFITS 35
MISCELLANEOUS PROVISIONS 36
REPEAL OR TERMINATION OF SYSTEM 38
EXEMPTION FROM EXECUTION, NON ASSIGNABILITY 42
PENSION VALIDITY 42
FORFEITURE OF PENSION 43
INDEMNIFICATION 44
TRANSFERS WITHIN THE CITY 45
MILITARY SERVICE PRIOR TO EMPLOYMENT 45
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DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS 46
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SECTION 1. DEFINITIONS.
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 through September 30, 1993
and three percent (3 per annum thereafter. For those Members who purchase Credited
Service at no cost to the System, pursuant to Sections 24 and 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.
Act means the Employee Retirement Income Security Act of 1974 (P.L. 93-
406) as amended by the Retirement Equity Act of 1984 (P.L. 98 -397) and any regulations
issued thereunder by the Department of Labor and the Internal Revenue Service, as that
Statute and these regulations shall be amended.
Actuarial Eauivalent 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 7%
interest and the 1971 Group Annuity Mortality Table for Males, with ages set ahead five
years in the case of disability retirees.
Average 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. 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
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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 General Employee with member contributions to the System, omitting
intervening years or fractional parts of years when such General Employee may not be
employed by the City. A General Employee may voluntarily leave his contribution in the
Fund for a period of five (5) years after leaving the employ of the City pending the
possibility of being rehired, and remaining employed for a period of not less than three (3)
years, without losing credit for the time of active participation as a General Employee. If
the General Employee does not remain employed for a period of three (3) years upon
reemployment within five (5) years, then the Accumulated Contributions will be returned
upon the written request of the Member.
The years or fractional parts of years that a General Employee serves in the
military service of the Armed Forces of the United States or the United States Merchant
Marine, voluntarily or involuntarily, after separation from employment as a General
Employee with the City, shall be added to his years of Credited Service for all purposes,
including vesting, provided that (except as otherwise prohibited by law, in which case the
minimum standards for compliance shall apply):
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A. The General Employee must return to his employment as a General
Employee with the City within one (1) year from the date of his
military discharge.
B. The General Employee deposits into the Fund the same sum that
Member would have contributed if he had remained a General
Employee, plus an amount of interest that substantially approximates
the amount earned by the Fund from the date of return to employment
to the date of deposit.
C. The maximum credit for military service shall be five (5) years.
Effective Date means the date on which this ordinance becomes effective.
General Employee means any actively employed person in the regular full-time
service of the City, including those in their initial probationary employment period, but
including elected officials and not including certified police officers and certified firefighters
employed by the City.
Fund means the trust fund established herein as part of the System.
Member means an actively employed General Employee who fulfills the
prescribed membership requirements.
Salary means the basic compensation paid by the City to a Member, plus all
tax deferred and tax exempt items of income, but excluding overtime, bonuses and any other
non regular payment.
Spouse means the lawful wife or husband of a Member at the time of pre
retirement death or retirement.
System means the City of Okeechobee Municipal General Employees' 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.
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SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
All General Employees as of the Effective Date, and all future new General
Employees, shall become Members of this System as a condition of employment.
Notwithstanding the previous paragraph, the current City Administrator and
any future City Administrator or Administrative Assistant may, in the event he has elected
to participate in another pension program, within the first sixty (60) days of his employment
as City Administrator or Administrative Assistant or within thirty (30) days of the Effective
Date, whichever is later, notify the Board and the City, in writing, of his election to not be
a Member of the System. In the event of any such election, he shall be barred from future
membership in the System.
2. Membership,.
Each General Employee shall complete a form prescribed by the Board pro-
viding the following information:
A. Acceptance of the terms and conditions of the System, and,
B. Designation of a Beneficiary or Beneficiaries.
3. Change in Designation of Beneficiary.
A Member may from time to time change his designated Beneficiary by written
notice to the Board upon forms provided by the Board. Upon such change, the rights of all
previously designated Beneficiaries to receive any benefits under the System shall cease.
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 are hereby
vested in a Board of Trustees. The Board of Trustees is hereby designated as the plan
administrator. The Board of Trustees shall consist of five (5) Trustees, two of whom, unless
otherwise prohibited by law, shall be legal residents of the municipality, who shall be
appointed by the Okeechobee City Council, and two (2) of whom shall be full-time General
Employee Members of the System, who shall be elected by a majority of the General
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Employees who are Members of the System. The fifth Trustee shall be chosen for a two (2)
year term by a majority of the previous four 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 Trustees appointed or elected as herein provided and shall serve a two
(2) year term unless the office is sooner vacated and may succeed himself in office. Each
resident Trustee shall serve as Trustee for a period of two (2) years, unless sooner replaced
by the Okeechobee City Council at whose pleasure the Trustee shall serve, and may succeed
himself as a Trustee. Each General Employee Trustee shall serve as Trustee for a period
of two (2) years, unless he sooner leaves the employment of the City as a General Employee
or otherwise vacates his office as Trustee, whereupon a successor shall be chosen in the
same manner as the departing Trustee. Each General Employee Trustee may succeed
himself in office. The Board of Trustees shall meet at least quarterly each year. The Board
of Trustees 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 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
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System shall be paid from the Fund at such rates and in such amounts as the Board shall
agree.
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.
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 at least biennial valuations,
and make recommendations regarding any and all changes in the
provisions of the System.
I. To perform such other duties as are specified in this ordinance.
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established the Fund, into which shall
be deposited all of the contributions and assets whatsoever attributable to the System,
including the assets of the prior Municipal General Employees' Pension Fund.
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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 and securities of the Municipal General Employees' Pension Fund
may be deposited by the Board with the Finance Director of the municipality, 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 municipality. However, any funds and
securities so deposited with the Finance Director of the municipality shall be kept in a
separate fund by the Finance Director or clearly identified as such funds and securities of the
Municipal General-Employees' Pension Fund. In lieu thereof, the Board shall deposit the
funds and securities of the Municipal General Employees' Pension Fund in a qualified public
depository as defined in §280.02, Florida Statutes, which depository with regard to such
funds and securities 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
C. Benefit payments, and
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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 independent 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. All contributions from time to time paid
into the Fund, and the income thereof, without distinction between prin-
cipal 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 of 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 or a
savings/building and loan association insured by the Federal
Deposit Insurance Corporation.
(3) Obligations of the United States or obligations guaranteed as to
principal and interest by the government of the United States.
(4) Bonds issued by the State of Israel.
(5) Bonds, stocks, commingled funds administered by National or
State Banks or evidences of indebtedness 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, provided that the corporation is traded on
a nationally recognized exchange and holds a rating in one of
the three highest classifications by a major rating service, and
if such investments are made in a pooled fund administered by
a state or national bank, then the rating of each issue in the
pooled fund shall hold a rating within the top three (3) rating
classifications of a major rating service and no foreign
investments shall be permitted in the pooled fund.
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
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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 forty
percent (40%) of the assets of the Fund.
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. No person or entity 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, 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
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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.
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 informa-
tion, 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 or
Beneficiary caused by errors of computation shall be adjusted with
interest at a rate per annum approved by the Board. Over payment
shall be charged against payments next succeeding the correction.
Underpayments shall be made up from the Fund.
K. The Board shall sustain no liability whatsoever for the sufficiency of
the Fund to meet the payments and benefits herein provided for.
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
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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. Members 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 at least monthly. The
contributions made by each Member to the Fund shall be designated as
employer contributions pursuant to §414(h) of the Internal Revenue
Code of 1986. Such designation is contingent 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. City 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 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
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liability over a forty (40) year period, commencing with the fiscal year in which the Effective
Date of this System occurs.
3. 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 additional 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 the next following age sixty-five (65) and the completion of five (5) years
of Credited Service or upon the completion of thirty (30) 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 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 his retirement date and be continued
thereafter during Member's lifetime, ceasing upon death, but with one hundred twenty (120)
monthly payments guaranteed in any event. The monthly retirement benefit shall equal one
and three quarters percent (1.75 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 later of the attainment of age sixty (60)
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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 General Employee 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 one fifteenth (1 /15th) for each
of the first five (5) years and one thirtieth (1 /30th) for each of the next
five (5) years by which the commencement of benefits precedes the
date which would have been the Member's normal retirement date had
he continued employment as a General Employer.
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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.
If this single sum value is less than $3,500, it shall be paid in a lump sum.
If the value exceeds $3,500, 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.
SECTION 8. DISABILITY.
1. Disability Benefits.
Each General Employee who is a Member in the System and who shall have
become totally and permanently disabled while an active General Employee of the City to
the extent that he is unable, by reason of a medically determinable physical or mental impair
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ment, to perform the duties that the General Employee was assigned at the time of the
impairment and is unable to perform the duties of another General Employee position which
the City makes available to him in a similar job classification and rank at no reduction in
Salary for which the General Employee is qualified by reason of training, education, or
experience, whether or not such disability was directly caused by the performance of his duty
as a General Employee, 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 set
forth in Section 6, subsection 4.B, providing for an actuarial reduction.
2. Conditions Disaualifvine Disability Benefits.
Each General Employee 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 alcohol.
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces.
E. Injury or disease sustained after his employment as a General Employee
with the City Okeechobee shall have terminated.
F. Willful, wanton conduct or gross negligence of the Member.
G. Injury or disease sustained by the General Employee while working for
anyone other than the City and arising out of such employment.
H. A condition pre existing the General Employee's membership in the
System. No Member shall be entitled to a disability pension because
of or due to the aggravation of a specific injury, impairment or other
medical condition pre existing at the time of membership in the System,
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provided that such pre existing condition and its relationship to a later
injury, impairment or other medical condition be established by
competent substantial evidence. Nothing herein shall be construed to
preclude a disability pension to a Member who, after membership in
the System, suffers an injury, impairment or other medical condition
different from some other injury, impairment, or other medical
condition existing at or prior to said membership.
3. Physical Examination Reauirement.
A General Employee shall not become eligible for disability benefits until and
unless he undergoes a physical examination by a qualified physician or physicians and /or
surgeon or surgeons, who shall be selected by the Board for that purpose.
Any General Employee 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 General
Employee, the Board shall recommend to the City that the retiree be returned to performance
of duty as a General Employee, and the retiree so returned shall enjoy the same rights that
Member 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,
Member shall forfeit the right to his pension.
The cost of the physical examination and /or re- examination of the General
Employee claiming and /or 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.
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If the General Employee recovers from disability and reenters the service of
the City as a General Employee, 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 General Employee fails to reenter the service of
the City as a General Employee 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
to render useful and efficient service as a General Employee, 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 General Employee.
The Board shall have the power and authority to make the final decisions
regarding all disability claims.
5. 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 General Employee recovers from the disability prior to his
normal retirement date, the payment due next preceding the date of
such recovery, or
B. If the General Employee 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.
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6. Workers' Compensation.
When a Member 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 final monthly Salary,
excluding overtime, the disability pension benefit shall be reduced so that the total monthly
amount received by the Member does not exceed 100% of such Salary.
SECTION 9. VESTING.
If a Member terminates his employment with the City, either voluntarily or by
discharge, and is not eligible for any other benefits under this System, Member shall be
entitled to the following:
1. If the Member has less than five (5) years Credited Service upon termination,
the Member shall be entitled to a refund of his Accumulated Contributions or Member may
leave it deposited with the Fund.
2. If the Member has five (5) or more years of Credited Service upon termination,
the Member shall be entitled to a monthly retirement benefit that is the Actuarial Equivalent
of the amount of such retirement income otherwise payable to him commencing at Member's
otherwise normal or early retirement date, provided he does not elect to withdraw his
Accumulated Contributions and provided Member survives to his normal or early retirement
date.
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 General Employee, 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
General Employee during the lifetime of the General Employee and
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following the death of the General Employee, 100% 75% or 50% of
such monthly amount payable to a joint pensioner for his lifetime.
B. A retirement income of a modified monthly amount for the lifetime of
the General Employee 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 General Employee, upon electing any option of this Section, will designate
the joint pensioner 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 or more
primary Beneficiaries where applicable. If a General Employee has elected an option with
a joint pensioner or Beneficiary and Member's retirement income benefits have commenced,
Member may thereafter change his designated joint pensioner or Beneficiary, but only if the
designated Beneficiary predeceases the Member or if the designated Beneficiary and the
Member were married at time of Member's retirement and are divorced subsequent thereto;
provided however, in no event may a Member change his or her designated Beneficiary more
than twice.
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3. The consent of a General Employee'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 Member's Beneficiary or joint pensioner in accordance with
this section, the Board shall adjust the Member's monthly benefit by application of actuarial
calculations to insure that the benefit paid is the Actuarial Equivalent of the Member's then
current benefit. Any such Member shall pay the actuarial recalculation expenses and shall
make repayment of any overage of previously -paid pension benefits as a result of said
recalculations. 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 General Employee, such benefits as are payable in the event of the
death of the General Employee 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 General Employee 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 General Employee's retirement under the System, the option
elected will be canceled automatically and a retirement income of the
normal form and amount will be payable to the General Employee 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
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new Beneficiary is designated by the General Employee prior to his
retirement and within ninety (90) days after the death of the
Beneficiary.
C. If both the retired General Employee and the Beneficiary (or
Beneficiaries) designated by Member 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 General Employee 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 General
Employee in the amount or amounts computed as if the General
Employee had retired under the option on the date on which his death
occurred.
6. A General Employee 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 total commuted value of the remaining monthly income payments to be paid do not
exceed Three Thousand Five Hundred Dollars ($3,500.00). Any such payment made to any
person pursuant to the power and discretion conferred upon the Board by the preceding
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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 General Employee 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; and each designation may be revoked by
such General Employee by signing and filing with the Board a new designation -of-
Beneficiary form.
2. If a deceased General Employee fails to name a Beneficiary in the manner
prescribed in Subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased
General Employee predeceases the General Employee, the death benefit, if any, which may
be payable under the System with respect to such deceased General Employee, shall be paid
to the estate of the General Employee.
SECTION 12. CLAIMS PROCEDURES
1. Claims of Affected Persons.
A. The Board of Trustees shall grant an initial hearing upon receipt of a
written request "Claim on matters which affect the substantial rights
of any person "Claimant including Members, active or retired,
Beneficiaries, or any person affected by a decision of the Board of
Trustees.
B. The Board shall review the Claim at an initial hearing and enter an
order within sixty (60) days from the date of receipt of the Claim and,
in the case of disability claims, receipt by the Board of a written
medical release authorization in a form approved by the Board Attorney
and a completed set of interrogatories prepared by the Board Attorney
and provided to the Claimant. The Board may extend the time for
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entering the order at an initial hearing for an additional forty-five (45)
days if it determines such time is necessary for full discovery and
adequate review. The Board Attorney and the Claimant may stipulate
to further extensions of time.
C. It shall be the function of the Board Attorney, throughout the claims
procedure, to assist the Board in the discovery and presentation of
evidence in order to assure that the Board receives all relevant
information prior to the Board's decision.
D. The Claimant shall have the right to be represented by counsel at any
or all times throughout the claims procedure.
2. Initial Hearing.
A. At the initial hearing, the only evidence to be considered by the Board
shall be documentary evidence contained in the pension file, including
but not limited to, correspondence, medical records and reports of
treating physicians and /or examining physicians and evidence received
pursuant to paragraph B.
B. Other than questions from the Trustees, there will be no taking of
additional evidence at the initial hearing, except that the Claimant
and /or his representative will be afforded fifteen (15) minutes to make
a presentation, which shall be limited to comments and /or arguments
as to the evidence or information already contained in the pension file,
including the report of the examining physician.
C. Upon completion of the review of the Claim at the initial hearing, the
Board shall enter an order setting forth its findings and conclusions on
the Claim. The written order shall be provided to the Claimant. The
order shall include:
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(1) The specific fmdings and conclusions of the Board, including
specific references to pertinent provisions of the System on
which such conclusions are based;
(2) A description of any additional material or information that the
Board may deem necessary for the Claimant to perfect his
Claim, together with the reasons why such material or informa-
tion is necessary; and
(3) An explanation of the right to a full hearing on the Claim and
the time limit in which a full hearing must be requested in
writing.
D. The decision of the Board at the initial hearing shall not be final until
after the time has expired to request a full hearing or, if a full hearing
is requested, until the Board makes a decision at the conclusion of the
full hearing.
3. Full Hearing.
A. Any Claimant may request a full hearing on the issues presented to the
Board at an initial hearing and upon which the Board has entered an
order as provided in subsection 2.C. above.
B. A full hearing must be requested by the Claimant within ninety (90)
days of the receipt of the Board's order. The order will be deemed
received three (3) days following the date it is mailed to Claimant at the
address provided to the Board by Claimant.
C. Upon receipt of the request for a full hearing and considering the
amount of discovery which might be conducted, the Board shall
establish a date for the full hearing and cause notice to be given to the
Claimant. The full hearing shall be held within ninety (90) days from
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the receipt of the request from the Member. The full hearing may be
postponed, if necessary and with the consent of the Claimant, to permit
full discovery of the facts.
D. Copies of all documents to be offered into evidence at the full hearing,
including depositions, and a complete witness list with names and
addresses of witnesses expected to be called, shall be furnished to the
Board by the Claimant and the Board Attorney at least twenty (20) days
prior to the full hearing. Documents not furnished to the Board within
the prescribed time limit may be excluded from evidence at the full
hearing if a reasonable explanation is not provided for the delay in
providing the documents.
E. A Claimant or the Board Attorney may obtain discovery by deposition
and /or interrogatories prior to the full hearing. Written notice of any
depositions and /or interrogatories shall be given to the Board Attorney
and the Claimant.
F. The costs of any discovery, except discovery requested by the Board
or the Board Attorney, the appearance of witnesses at the hearing, and
the making of a verbatim record of the proceedings shall be the
responsibility of the Claimant.
G. The Claimant shall be responsible for the appearance of any witnesses
at the hearing. The Board shall, however, have the power to subpoena
and require the attendance of witnesses and the production of docu-
ments for discovery prior to and at the proceedings provided for herein.
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.
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H. Testimony at the full hearing may be submitted in the form of a
deposition. Since it will give the Board more time for review and
consideration, the Board prefers that testimony be submitted by
deposition. Depositions timely submitted will be part of the record
before the Board at the full hearing and will not be read in totality at
the full hearing; provided however, that this does not preclude the
Claimant or the Board Attorney from reading parts of depositions in an
opening or closing statement.
I. Irrelevant and unduly repetitious evidence shall be excluded.
J. Any person who knowingly gives false testimony is guilty of a misde-
meanor of the first degree, punishable as provided in Section 775.082
or 775.083, Florida Statutes.
K. The file maintained by the Board, including but not limited to various
medical reports therein, is part of the record before the Board at the
full hearing.
L. All proceedings of the Board shall be conducted in public.
M. In cases concerning an application for pension benefits, including
applications for disability retirement benefits, the burden of proof,
except as provided by law, shall be on the Member seeking to show
entitlement to such benefits.
N. In cases concerning termination of pension benefits including re-
examination of Members receiving disability retirement benefits, the
burden of proof shall be on the Board.
0. Except as to those records which are exempted from the provisions of
Chapter 119, Florida Statutes, Florida's Public Record Law, records
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maintained by the Board are open for inspection and /or copying during
normal business hours at a reasonable cost for the copying.
P. Should a Claimant requesting an initial or full hearing decide to appeal
any decision made by the Board, with respect to any matter considered
at such hearing, the Claimant requesting an initial or full hearing will
need a record of the proceedings and may need to assure that a
verbatim record of the proceeding is made. The Claimant requesting
an initial or full hearing will be responsible for obtaining a court
reporter or otherwise making a record of the proceedings before the
Board.
Q. The decisions of the Board after the requested full hearing shall be final
and binding.
R. Within fifteen (15) days after making a decision at the full hearing, the
Board shall enter a final order setting forth its findings and conclusions
and a copy of the order shall be provided to the Claimant.
S. Judicial review of decisions of the Board shall be sought by the filing
of a timely petition for writ of certiorari with the Clerk of the Circuit
Court, in the appropriate county.
4. Conduct of the Full Hearinz.
A. The Chairman shall preside over the hearing and shall rule on all
evidentiary, procedural, and other legal questions that arise during the
hearing. The Chairman's rulings shall stand unless overruled by all
other Trustees present. The Chairman shall open the full hearing by
explaining the procedures to be followed.
B. The Claimant shall have the right to be represented by counsel or be
self represented. The Board Attorney shall advise the Board.
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4111.
C. The Claimant shall be allowed to make an opening statement not to
exceed ten (10) minutes.
D. Testimony of witnesses shall be under oath or affirmation. Depositions
or affidavits shall be admissible if agreed upon by the Claimant and the
Board or the Board Attorney.
E. The Chairman, any Trustee, the Board Attorney, the Claimant or the
Claimant's counsel, upon recognition by the Chairman, may direct
questions to any witness during the proceedings.
F. Either the Claimant or the Board Attorney shall have the right to
present evidence relevant to the issues, to cross examine witnesses, to
impeach witnesses and to respond to the evidence presented.
G. The Claimant shall be permitted a closing argument not to exceed
fifteen (15) minutes.
H. The Board shall deliberate and make a decision following closing
argument and thereafter enter an order as provided herein.
5. Disability Claims Additional Procedures.
A. All applications for disability pensions shall be in writing. Forms for
such applications may be provided by the Board.
B. Upon receipt of the application for disability, the Board Attorney will
provide the Claimant with a set of interrogatories or questions to be
answered under oath and a medical release authorization. Both
documents will be completed by the Claimant and returned to the Board
Attorney.
C. Upon receipt of the properly completed interrogatories and medical
release authorization, the Board Attorney will request medical records
from all relevant treating physicians; personnel records from the
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employer, copies of relevant workman's compensation records, and
copies of other records deemed to be relevant to the Claim. The Board
shall pay from the Fund the cost of any medical examinations required
by the Board and for copies of medical records.
D. The Board Attorney will, if authorized by the Board, upon receipt of
the medical records from the treating physicians, schedule an indepen-
dent medical examination (IME) with an appropriate independent
examining physician who will be asked to render an opinion about
Claimant's physical condition as it relates to the claimed disability.
E. Upon receipt of the IME from the examining physician, the Board
Attorney will provide all records of treating physicians, relevant
workman's compensation claims records, the independent medical
evaluation, and all other relevant documents to the Board for inclusion
in the pension file and the Board shall then schedule the initial hearing.
SECTION 13. 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 General Employees employed by the Municipality in such a manner as to
show the name, address, date of employment and date such employment is terminated.
SECTION 14. BOARD ATTORNEY AND PROFESSIONALS.
The Board may employ independent legal counsel at the System's expense for the
purposes contained herein, together with such other professional, technical, or other advisors
as the Board deems necessary.
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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 the
lesser of:
A. $90,000, or
B. 100% of the Member's average aggregate compensation for the three
(3) consecutive calendar years during which the General Employee was
an active Member and had his highest aggregate compensation.
"Compensation" shall mean the General Employee's total annual
remuneration paid or accrued for personal services rendered to the City
during the plan year as reported on the General Employee's W -2.
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 Internal
Revenue Code and Regulations thereunder to be taken into
account for purposes of the limitation of §415(b)(1) of the
Internal Revenue Code.
2. Particivation 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 Internal
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Revenue 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. Adiustments in Limitations.
In the event the Member's retirement benefits become payable before age 62,
the $90,000 limitation prescribed by this Section shall be reduced in accordance with Regula-
tions issued by the Secretary of the Treasury pursuant to the provisions of §415(b) of the
Internal Revenue Code, but not less than $75,000.
In the event the Member's retirement benefit becomes payable before age fifty
five (55), the $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 Internal Revenue Code.
If 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 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 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).
5. $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
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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 $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 Internal Revenue 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 Internal Revenue Code) shall not, subject to the
restrictions and exceptions contained in §2004 of the Act, exceed 1.0.
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 allo-
cating excess forfeitures for defined contribution plans in which the Member participated,
such reduction to be made first with respect to the plan in which Member most recently
accrued benefits and thereafter in such priority as shall be established by the Board and the
plan administrator for such other plans provided, however, that necessary reductions may be
made in a different manner and priority pursuant to the agreement of the Board and the plan
administrator of all other plans covering such Member.
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
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prescribed by the Secretary of the Treasury pursuant to §415(d) of the Internal Revenue
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 100 percent 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 who is not now a Member of such 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. This restriction does
not apply to social security benefits or federal benefits under Chapter
67, Title 10, U.S. Code.
SECTION 16. COMMENCEMENT OF BENEFITS.
1. Unless the Member otherwise elects, with such election being in writing and
delivered to the Board and specifying the form of retirement income and date on which the
retirement income is to commence, the payment benefits under the System to the Member
shall commence not later than the 60th day after the close of the plan year in which the latest
of the following events occur:
A. The attainment by the Member of age 65;
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B. The 10th anniversary of the date on which the Member commenced
participation in the System; or
C. The termination of the Member's service with the City.
2. If the payment of a Member's retirement income cannot begin on the date
required under Subsection 1 of this Section because the Board either cannot ascertain the
amount of the Member's retirement income or cannot locate the Member after making
reasonable efforts to do so, the payment of the Member's benefit shall begin not later than
sixty (60) days after the date on which the amount can be ascertained or the Member is
located, whichever is applicable. Any such payment shall be made retroactive to a date
which is not earlier than the date on which the payment of the Member's benefit was
scheduled to begin but which is not later than the date specified under Subsection 1 of this
Section.
SECTION 17. 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 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 expect-
ancy of the Member and Spouse, issue or dependent.
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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, Member's entire interest in the System shall be distributed within
five (5) years of 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 year of the Member's death unless
the Member's Spouse, issue or dependent shall receive the remaining
interest in which case the distribution need not begin before the date on
which the Member would have attained age 70 -1/2 and if the Spouse,
issue or dependent dies before the distribution to the Spouse, issue or
dependent begins, this Section shall be applied as if the Spouse, issue
or dependent were the Member.
SECTION 18. MISCELLANEOUS PROVISIONS.
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.
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2. Liauidation of Fund Assets.
A. In the event that contributions of the City are permanently discontinued
or in the event that it becomes necessary for the City to discontinue the
System, the Board shall determine a proposed date of termination and
liquidate the Fund, in accordance with the applicable requirements of
the Act governing termination. The rights of affected Members, joint
annuitants, Beneficiaries and surviving Spouses to benefits accrued to
the date of any such termination or discontinuance to the extent then
funded shall become fully vested and nonforfeitable and upon
occurrence of such event, the City's aliquot share of the assets then
remaining in the Fund shall be allocated among the Members and their
Beneficiaries and administered and distributed at such time or times as
is determined by the Board.
B. Any reserves which shall be released as a result of the application of
the provisions of Section 19, Subsection 3E, shall be added to the
portion of the Fund which is distributed as provided above to Members
whose benefits are not restricted, provided that in the event that all of
the benefits accrued to such Members are fully provided for, such
released reserves (or any remaining portion thereof) shall be allocated
to provide to the extent possible up to one hundred percent (100 of
the benefits otherwise cancelled pursuant to Section 19, Subsection 3E,
allocating such remaining funds in proportion to the value of the
benefits so cancelled.
C. The Board may in its discretion give effect to the provisions of the
foregoing paragraphs A and B by the purchase of annuities, by continu-
ing the Fund in existence and making provisions thereunder for pension
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benefits, or by immediate distribution from the Fund. If the assets of
the Fund applicable to any asset distribution priority category are
insufficient to provide full benefits for all persons in such group, the
benefits otherwise payable to such persons shall be reduced
proportionately except as may otherwise be specified by regulations.
If there is any balance remaining in the Fund after all obligations to
Members, joint annuitants, Beneficiaries and surviving Spouses are
met, such balance will revert to the City. The actuary shall calculate
the allocation of the assets of the Fund in accordance with the asset
distribution priority category, and certify his calculations to the Board.
No liquidation of assets and payment of benefits (or provision there-
fore) shall actually be made by the Board until after it is advised by the
City in writing that applicable requirements, if any, of the Act gover-
ning termination of "General Employee Pension Benefit Plans" have
been, or are being, complied with or that appropriate authorizations,
waivers, exceptions or variances have been, or are being, obtained.
3. 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.
SECTION 19. 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 benefiting 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 deter-
mined to be inadequate.
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2. If this ordinance shall be repealed, or if contributions to the System are
discontinued, 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, or if contributions to the System are discontinued, 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 retired General
Employee 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) General Employee, and each
General Employee 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, based upon the actuarial assumptions in use
for purposes of the most recent actuarial valuation, provided that, if
such asset value be less than the aggregate of such amounts, such
amounts shall be proportionately 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
General Employee in the service of the City on such date who has
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completed at least ten (10) years of Credited Service and who is not
entitled to an apportionment under paragraph A, in the amount required
to provide the Actuarial Equivalent, as described in A above, of the
accrued normal retirement benefit, based on the Credited Service and
average monthly earnings 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 accrued normal retirement benefit,
provided that, if such remaining asset value be less than the aggregate
of the amounts apportioned hereunder, such latter amounts shall be
proportionately 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 General
Employee in the service of the City on such date who is not entitled to
an apportionment under paragraphs A and B in the amount equal to
Member's Accumulated Contributions, provided that, if such remaining
asset value be less than the aggregate of the amounts apportioned here-
under 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 General Employee included in paragraph C above to the extent
of the Actuarial Equivalent, as described in paragraph A above, of the
accrued normal retirement benefit, less the amount apportioned in para-
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graph C, based on the Credited Service and average monthly earnings
as of such date, provided that, if such remaining asset value be less
than the aggregate of the amounts apportioned 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, less 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 of the
twenty-five (25) highest paid General Employees on the effective date, whose anticipated
annual retirement allowance provided by the City's contributions at Member's normal retire-
ment date would exceed $1,500, shall not exceed the greater of either a) $20,000, or b), an
amount computed by multiplying the smaller of $10,000 or twenty percent (20 of such
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General Employee's average annual 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
determined 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 Internal Revenue 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 20. 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 21. 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. Said Board is
empowered to purge the pension rolls of any person heretofore granted a pension under prior
or existing law or heretofore granted 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.
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SECTION 22. FORFEITURE OF PENSION.
1. Any General Employee who is convicted of the following offenses committed
prior to retirement, or whose employment is terminated by reason of his admitted
commission, 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 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 conviction by the Senate of
an impeachable offense.
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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 commission
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. The Board may implement all legal action necessary to recover such funds.
SECTION 23. INDEMNIFICATION.
1. To the extent not covered by insurance contracts in force from time to time,
the City shall indemnify 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 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.
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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 retirement systems transfers to either of the
other two 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.
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 General Employee serves or has served
on active duty in the active military service of the Armed Forces of the United States or the
United States Merchant Marine, 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 General Employee 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
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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 General Employee on
or before twelve (12) months from the Effective Date of this ordinance or six (6) months
from the date of his employment with the City Fire Department, whichever is later.
3. Payment by the General Employee of the required amount shall be made within
six (6) months of his request for credit and shall be made in one 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
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Beneficiary, or for a specified period of ten 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.
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.
ok'217- 931.oId
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