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0678 General Employees Pension ORDINANCE NO. 6 7 8 AN ORDINANCE AMENDING ORDINANCE NO. 655 OF THE CITY OF OKEECHOBEE ADOPTING THE CITY OF OKEECHOBEE MUNICIPAL GENERAL EMPLOYEES' PENSION TRUST FUND; PROVIDING FOR AN INCREASE IN EMPLOYEE CONTRIBUTIONS FROM 5% OF SALARY TO 6% OF SALARY; PROVIDING FOR EARLY RETIREMENT AT AGE 55 WITH 10 YEARS OF CREDITED SERVICE; PROVIDING FOR AN INCREASE IN THE BENEFIT ACCRUAL RATE FROM 1.75% TO 2% FOR EACH YEAR OF CREDITED SERVICE; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT IIEREWITH AND PROVIDING AN Ei 1 ECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA that: SECTION 1: Ordinance No. 655 of the City of Okeechobee, adopting the City of Okeechobee Municipal General Employees' Pension Trust Fund, is amended by amending Section 5, CONTRIBUTIONS, subsection 1, Member Contributions, to read as follows: SECTION 5. CONTRIBUTIONS,. 1. Member Contributions. A. Amount. Each Members of the System shall be required to make regular contributions to the Fund in the amount of five ix percent (5 6O 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 Rcvcncue 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. 1 SECTION 2: Ordinance No. 655 of the City of Okeechobee, adopting the City of Okeechobee Municipal General Employees' Pension Trust Fund, is amended by amending Section 6, BENEFIT AMOUNTS AND ELIGIBILITY, to read as follows: 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 the first day of the month next following 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 throe qu"t two percent (1.75 2 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) fifty -five (55) 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. 2 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. 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. 3 SECTION 5: That this Ordinance shall become effective at 12:01 A.M. on September 28 1995. Introduced on first reading this 20 day of hill P 1995 James M ayor ATTEST: ;on$iie S. Thomas, CIVIC, ity Clerk Passed on second reading after public hearing i1' h day of t JuJi t h 1995. James E. Kirk, Mayor ATTEST: Bonnie S. Thomas, CMC, City Clerk nebbklb 12•931.ad 4