1054 Amend & Restate Police Officers Pension Plan ORDINANCE NO. 1054
AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE CITY
OF OKEECHOBEE MUNICIPAL POLICE OFFICERS' PENSION TRUST
FUND, ADOPTED PURSUANT TO ORDINANCE 888, AS
SUBSEQUENTLY AMENDED; AMENDING SECTION 1, DEFINITIONS;
AMENDING SECTION 3, BOARD OF TRUSTEES; AMENDING SECTION
4, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 5,
CONTRIBUTIONS; AMENDING SECTION 6, BENEFIT AMOUNTS AND
ELIGIBILITY; AMENDING SECTION 7, PRE RETIREMENT DEATH;
AMENDING SECTION 8, DISABILITY; AMENDING SECTION 10,
OPTIONAL FORMS OF BENEFITS; AMENDING SECTION 15, MAXIMUM
PENSION; AMENDING SECTION .'16, MINIMUM DISTRIBUTION OF
BENEFITS; AMENDING SECTION 17, MISCELLANEOUS PROVISIONS;
AMENDING SECTION 18, REPEAL OR TERMINATION OF SYSTEM;
AMENDING SECTION 19, DOMESTIC RELATIONS ORDERS, RETIREE
DIRECTED PAYMENTS, EXEMPTION FROM EXECUTION, NON
ASSIGNABILITY; AMENDING SECTION 21, FORFEITURE OF PENSION;
AMENDING SECTION 26, DIRECT TRANSFERS OF ELIGIBLE
ROLLOVER DISTRIBUTIONS; AMENDING SECTION 27, PRIOR POLICE
SERVICE; AMENDING SECTION 28, DEFERRED RETIREMENT OPTION
PLAN; PROVIDING FOR CODIFICATION; PROVIDING FOR
SEVERABILITY OF PROVISIONS; 'REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE,
FLORIDA:
SECTION 1: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 1, Definitions, to amend the definitions of "Actuarial
Equivalent:, "Credited Service" and "Salary", to read as follows:
Actuarial Equivalent means that any benefit payable under the terms of this System
in a form other than the normal form of benefit shall have the same actuarial present value
on the date payment commences as the normal form of benefit. For purposes of
establishing the actuarial present value of any form of payment other than a lump sum
distribution, all future payments shall be discounted for interest and mortality by using eight
percent (8 interest and the 1983 Group Annuity Mortality Table for Males. This definition
may only be amended by the City pursuant to the recommendation of the Board using
assumptions adopted by the Board with the advice of the plan's actuary, such that actuarial
assumptions are not subiect to City discretion.,
Credited Service means the total number of years and fractional parts of years of
service as a Police Officer with Member contributions when required, omitting intervening
years or fractional parts of years when such Member was not employed by the City as a
Police Officer. A Member may voluntarily leave his Accumulated Contributions in the Fund
Ordinance No. 1054 Page 1 of 38
for a period of five (5) years after leaving the employ of the Police Department pending the
possibility of being reemployed as a Police Officer, without losing credit for the time that
he was a Member of the System. If a vested Member leaves the employ of the Police
Department, his Accumulated Contributions will be returned only upon his written request.
If a Member who is not vested is not reemployed as a Police Officer with the Police
Department within five (5) years, his Accumulated Contributions, if one thousand dollars
($1,000.00) or less, shall be returned. If a Member who is not vested is not reemployed
within five (5) years, his Accumulated Contributions, if more than one thousand dollars
($1,000.00), will be returned only upon the written request of the Member and upon
completion of a written election to receive a cash lump sum or to rollover the lump sum
amount on forms designated by the Board. Upon return of a Member's Accumulated
Contributions, all of his rights and benefits under the System are forfeited and terminated.
Upon any reemployment, a Police Officer shall not receive credit for the years and
fractional parts of years of service for which he has withdrawn his Accumulated
Contributions from the Fund, unless the Police Officer repays into the Fund the
contributions he has withdrawn, with interest, as determined by the Board, within ninety
(90) days after his reemployment.
The years or fractional parts of years that a Member
performs "Qualified Military Service
consisting of voluntary or involuntary "service in the uniformed services" as defined in the
Uniformed Services Emolovment and Reemployment Riahts Act (USERRA) (P.L.103 -353),
after separation from employment as a Police Officer with the City to perform training or
service, shall be added to his years of Credited Service, for all purposes, including vesting,
provided that:
A. The Member is entitled to reemployment under the provisions of
USERRA.
A B. The Member must returns to his employment as a Police Officer
within one (1) year from the earlier of the date of his military discharge
or his release from active service. unless otherwise reauired by
USERRA.
Ordinance No. 1054 Page 2 of 38
C. The maximum credit for military service pursuant to this paragraph
shall be five (5) years.
D. This paragraph is intended to satisfy the minimum requirements of
USERRA. To the extent that this paragraph does not meet the
minimum standards of USERRA, as it may be amended from time to
time. the minimum standards shall apply.
In the event a Member dies on or after January 1. 2007. while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits
(other than benefit accruals relating to the Period of qualified military service) as if the
Member had resumed employment and then died while employed.
w w w w
Salary means the total compensation for services rendered to the City as a Police
Officer reported on the Member's W -2 form plus all tax deferred, tax sheltered or tax
exempt items of income derived from elective employee payroll deductions or salary
reductions. Compensation in excess of the limitations set forth in Section 401(a)(17) of the
Code as of the first day of the Plan Year shall be disregarded for any
purpose. including employee contributions or any benefit calculations. The annual
compensation of each member taken into account in determining benefits or employee
contributions for any Plan Year beginning on or after January 1, 2002. may not exceed
$200.000. as adiusted for cost -of- living increases in accordance with Code Section
401(a)(17)(B). Compensation means compensation during the fiscal year. The cost-of-
living adiustment in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year. If the determination
period consists offewerthan 12 months, the annual compensation limit is an amount equal
to the otherwise applicable annual compensation limit multiplied by a fraction, the
numerator of which is the number of months in the short determination period, and the
denominator of which is 12. If the compensation for any prior determination period is taken
into account in determinina a Member's contributions or benefits for the current Plan Year,
the compensation for such prior determination period is subiect to the applicable annual
compensation limit in effect for that prior period. The limitation on compensation for an
"eligible employee" shall not be less than the amount which was allowed to be taken into
account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who
41) was a Member before the first Plan Year beginning after December 31, 1995.
Ordinance No. 1054 Page 3 of 38
SECTION 2: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 3, Board of Trustees, subsection 1., to read as
follows:
1. The sole and exclusive administration of and responsibility for the proper
operation of the System and for making effective the provisions of this ordinance is hereby
vested in a Board of Trustees. The Board is hereby designated as the plan administrator.
The Board shall consist of five (5) Trustees, two (2) of whom, unless otherwise prohibited
by law, shall be legal residents of the City, who shall be appointed by the Okeechobee City
Council, and two (2) of whom shall be full -time Police Officer Members of the System, who
shall be elected by a majority of the Police Officers who are Members of the System. The
fifth Trustee shall be chosen by a majority of the previous four (4) Trustees as provided for
herein, and such person's name shall be submitted to the Okeechobee City Council. Upon
receipt of the fifth person's name, the Okeechobee City Council shall, as a ministerial duty,
appoint such person to the Board of Trustees as its fifth Trustee. The fifth Trustee shall
have the same rights as each of the other four (4) Trustees appointed or elected as herein
provided and shall serve a two-(2 four (4) year term unless he sooner vacates the office.
Each resident Trustee shall serve as Trustee for a period of twe-(2) four (4' years, unless
he sooner vacates the officer or is sooner replaced by the Okeechobee City Council at
whose pleasure he shall serve. Each Member Trustee shall serve as Trustee for a period
of two -((2) four (4) years, unless he sooner leaves the employment of the City as a Police
Officer or otherwise vacates his office as Trustee, whereupon a successor shall be chosen
in the same manner as the departing Trustee. Each Trustee may succeed himself in
office. DROP participants can be elected as aftd but not vote for elected Trustees. The
Board shall establish and administer the nominating and election procedures for each
election. The Board shall meet at least quarterly each year. The Board shall be a legal
entity with, in addition to other powers and responsibilities contained herein, the power to
bring and defend lawsuits of every kind, nature, and description.
SECTION 3: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 4, Finances and Fund Management, subsection
6.B.(5)(b)., to read as follows:
Ordinance No. 1054 Page 4 of 38
6. B. (5) (b) Up to tent twenty -five percent (40% 25 of the assets
of the Fund at market value may be invested in foreign
securities.
SECTION 4: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 5, Contributions, subsection 3., City Contributions,
to read as follows:
3. 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 eFi��,:,
for-the-year required City contribution, as shown by the applicable actuarial
valuation of the System.
SECTION 5: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 6, Benefit Amounts and Eligibility, to add subsection
6., Required Distribution Date, to read as follows:
6. Reauired Distribution Date.
The Member's benefit under this Section must beain to be distributed to the
Member no later than April 1 of the calendar year following the later of the calendar year
in which the Member attains age seventy and one-half (70'/z) or the calendar year in which
the Member terminates employment with the City.
SECTION 6: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 7, Pre Retirement Death, to read as follows:
SECTION 7. DEATH BENEFITS.
1. Prior to Vestina or Eligibility for Retirement.
Ordinance No. 1054 Page 5 of 38
The Beneficiary of a deceased Member who was not receiving monthly
benefit payments, or who was not yet vested or eligible for early or normal Retirement shall
receive a refund of one hundred percent (100 of the Member's Accumulated Contribu-
tions.
2. Deceased Members Vested or Eliaible for Retirement.
A. 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 Tess than five thousand dollars ($5,000), it
shall be paid in a lump sum. If the value exceeds five thousand
dollars ($5,000), the Beneficiary may elect payment under any of the
optional forms available for retirement benefits or a lump sum
payment.
B. 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.
C. Additional reaulations with Spouse as Beneficiary. This subsection
2. applies only when the Member's Spouse is the sole designated
Beneficiary. Notwithstanding the previous paragraphs of this
subsection 2, in the event a Member or terminated vested person,
with ten (10) or more years of Credited Service, dies prior to
Retirement or prior to receipt of benefits, his Beneficiary shall be
entitled to the accrued normal or early retirement benefit payable at
the deceased Member's early or normal retirement age less the value
of any benefits paid or payable under this subsection.
Ordinance No. 1054 Page 6 of 38
(1 Notwithstandina anything contained in this section to the
contrary. in any event. distributions to the spouse beneficiary
will beain by December 31 of the calendar year immediately
following the calendar year in which the member died. or by a
date selected pursuant to the above provisions in this section
that must be on or before December 31 of the calendar year in
which the member would have attained 70
(21 If the surviving spouse beneficiary commences receiving a
benefit under subsection A or B above. but dies before all
payments are made. the actuarial value of the remaining
benefit will be paid to the spouse beneficiary's estate in a lump
sum.
D. Additional regulations with non spouse as beneficiary. This
subsection applies only when the Member's Spouse is not the
Beneficiary or is not the sole designated Beneficiary, but there is a
surviving Beneficiary. Notwithstanding the previous paragraphs of
this subsection 2.. in the event a member or terminated vested
person. with ten (10) or more years of credited service. dies prior to
retirement or prior to receipt of benefits, his or her beneficiary shall be
entitled to the accrued normal or early retirement benefit payable
beginning by December 31 of the calendar year immediately following
the calendar in which the member died. The benefit will be calculated
as for normal retirement based on the deceased Member's Credited
Service and Average Final Compensation and actuarially reduced to
reflect the commencement of benefits prior to the normal retirement
date.
01 If a surviving beneficiary commences receiving a benefit under
subsection D. above. but dies before all payments are made.
the actuarial value of the remaining benefit will be paid to the
surviving beneficiary's estate by December 31 of the calendar
vear of the beneficiary's death in a lump sum.
fla If there is no surviving beneficiary as of the member's death.
and the estate is to receive the benefits. the actuarial
eauivalent of the member's entire interest must be distributed
Ordinance No. 1054 Page 7 of 38
by December 31 of the calendar year containing the fifth
anniversary of the member's death..
Lc), The Uniform Lifetime Table in Treasury Reaulations
1.401(a)(9) -9 shall determine the oavment period for the
calendar year benefits commence. if necessary to satisfy the
reaulations.
SECTION 7: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 8, Disability, subsection 6., Disability Payments, to
read as follows:
6. Disability Payments.
The monthly benefit to which a Member is entitled in the event of the
Member's disability retirement shall be payable on the first day of the first month after the
Board determines such entitlement. However, the monthly retirement income shall be
payable as of the date the Board determined such entitlement, and any portion due for a
partial month shall be paid together with the first payment. The last payment will be:
A. If the Retiree recovers from the disability
date, the payment due next preceding the date of such recovery, or
B. If the Retiree dies without recovering from disability
i the payment due next
preceding his death or the 120th monthly payment, whichever is later.
Provided, however, the disability Retiree may select, at any time prior to the
date on which benefit payments begin, an optional form of benefit payment as described
in Section 10, subsection 1.A. or 1.B., which shall be the Actuarial Equivalent of the normal
form of benefit.
SECTION 8: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 10, Optional Forms of Benefits, by amending
subsection 1.A., adding subsection 5.E., and amending subsection 7., to read as follows:
A. A retirement income of a monthly amount, payable to the Retiree
during the lifetime of the Retiree and following the death of the
Retiree, one hundred percent (100 seventy -five percent (75
sixty -six and two- thirds percent (66 2/3 or fifty percent (50 of
Ordinance No. 1054 Page 8 of 38
such monthly amount payable to a joint pensioner for his lifetime.
Except where the Retiree's joint pensioner is his spouse, the
payments to the joint pensioner as a percentage of the payments to
pY J p p 9 pY
the Retiree shall not exceed the applicable percentage provided for
in the applicable table in the Treasury regulations. (See Q A -2 of
1.401(a)(9) -6)
E. The Member's benefit under this Section must beain to be distributed
to the Member no later than April 1 of the calendar year followina the
later of the calendar year in which the Member attains aae seventy
and one -half (701/2) or the calendar year in which the Member
terminates employment with the City.,
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 monthly income payments
to be paid do not exceed one thousand dollars ($1.000). Any such payment made to any
person pursuant to the power and discretion' conferred upon the Board by the preceding
sentence shall operate as a complete discharge of all obligations under the System with
regard to such Member and shall not be subject to review by anyone, but shall be final,
binding and conclusive on all persons.
SECTION 9: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 15, Maximum Pension, to read as follows:
SECTION 15. MAXIMUM PENSION.
A A
1 r. fw
vu
1-
Ordinance No. 1054 Page 9 of 38
account:
/A% A
income-benefits;
/'1\ A
xL) 11 i i• ii
i ii
el
L. 1 Z.,;
TI.
i 1 1 i '1 1
i 1 i or 1.
i 1 1 i i s
6 A
t
1
1 1 1
1 5
41 r
5 i 5 i G i 5
i i i i i V a VII t
n
V. 111 It •s TI.
V. 1 .IV i i -i i i i i i
i ti i i .5 i i
n
Ill 0.11 VYv i i
i i• •i i
i- :i•_ -i-i- i. i i i
a G.gV JU.' i ii
Ordinance No. 1054 Page 10 of 38
A 1
T. 6..G
T
1 1 1i111 1 %111 VI 1
1
v tw Y J V
d p�
e.. IV A 1
T
J. 1
.a...
r V V I ILII/J
n n
i V I FJ c4 1:.
It or
:W.
:1•
I. Zi e TheiliTtitatko s I; .5 a' 1 1 4..... j
e• .:,i. k.wW;'.v,: 1'
Ordinance No. 1054 Page 11 of 38
•1
A T I-
I-. 111C;
.ice .i 1 .i i
i i 1
i i IY V.�wyV1111Q /VV111� LTIJ l l 1 1 i i i i
i
1 Al.. 1
V I V V r i i r i i r
i i i. i •ii_ _r r
i I i r
r i i i
r i i
10, U.S. Code.
1. Basic Limitation.
Notwithstandina any other provisions of this System to the contrary. the
Member contributions paid to. and retirement benefits paid from. the System shall be
limited to such extent as may be necessary to conform to the reauirements of Code
Section 415 for a aualified retirement plan. Before January 1. 1995. a plan member may
not receive an annual benefit that exceeds the limits specified in Code Section 415(b).
subject to the applicable adiustments in that section. On and after January 1. 1995. a plan
member may not receive an annual benefit that exceeds the dollar amount specified in
Code Section 415(b)(1)(A) ($160.000). subiect to the applicable adiustments in Code
Section 415(b) and subiect to any additional limits that may be specified in this System.
For purposes of this Section. "limitation year" shall be the calendar year.
2. Adiustments to Basic Limitation for Form of Benefit.,
If the form of benefit without regard to any benefit increase feature is not a
straight life annuity. then the Code Section 415(b) limit applicable at the annuity startina
date is reduced to an actuarially eauivalent amount (determined usina the assumptions
specified in Treasury Reaulation Section 1.415(b)- 1(c)(2)(ii)) that takes into account the
death benefits under the form of benefit.
3. Benefits Not Taken into Account.,
Ordinance No. 1054 Page 12 of 38
For purposes of this Section, the following benefits shall not be taken into
account in applying these limits:
A. Any ancillary benefit which is not directly related to retirement income
benefits:
B. Any other benefit not reauired under 5415(b)(2) of the Code and
Regulations thereunder to be taken into account for purposes of the
limitation of Code Section 415(b)(1).
4. COLA Effect.
Effective on and after January 1, 2003, for purposes of applying the limits
under Code Section 415(b) (the "Limit the following will apply:
A. A Member's applicable limit will be applied to the Member's annual
benefit in the Member's first calendar year of benefit payments
without reaard to any automatic cost of living adiustments:
B. thereafter. in any subsequent calendar year, a Member's annual,
benefit. including any automatic cost of living increases. shall be
tested under the then applicable benefit limit including any adiustment
to the Code Section 415(b)(1)(A) dollar limit under Code Section
415(d). and the regulations thereunder: but
C. in no event shall a Member's benefit payable under the System in any
calendar year be areater than the limit applicable at the annuity
starting date. as increased in subseauent years pursuant to Code
Section 415(d) and the regulations thereunder.
Unless otherwise specified in the System, for purposes of applying the limits
under Code Section 415(b). a Member's applicable limit will be applied taking into
consideration cost of living increases as required by Section 415(b) of the Code and
applicable Treasury Regulations.
5. Other Adiustments in Limitations.
A. In the event the Member's retirement benefits become payable before
ape sixty -two (62), the limit prescribed by this Section shall be
reduced in accordance with regulations issued by the Secretary of the
Treasury pursuant to the provisions of Code Section 415(b) of the
Code. so that such limit (as so reduced) eauals an annual straight life
benefit (when such retirement income benefit begins) which is
eauivalent to a one hundred sixty thousand dollar ($160.000) annual
benefit beginning at age sixtv -two (62).
Ordinance No. 1054 Page 13 of 38
B. In the event the Member's benefit is based on at least fifteen (15)
years of Credited Service as a full -time employee of the police or fire
department of the City. the adiustments provided for in A. above shall
not apply.
C. The reductions provided for in A. above shall not be applicable to
disability benefits pursuant to Section 8. or pre- retirement death
benefits paid pursuant to Section 7.
a In the event the Member's retirement benefit becomes payable after
aae sixty -five (65). for purposes of determinina whether this benefit
meets the limit set forth in subsection 1 herein. such benefit shall be
adiusted so that it is actuarially eauivalent to the benefit beainnina at
aae sixty -five (65). This adiustment shall be made in accordance with,
regulations promulaated by the Secretary of the Treasury or his
deleaate.
6. Less than Ten (10) Years of Service.
The maximum retirement benefits payable under this Section to any Member
who has completed less than ten (10) years of Credited Service with the City shall be the
amount determined under subsection 1 of this Section multiplied by a fraction. the
numerator of which is the number of the Member's years of Credited Service and the
denominator of which is ten (10). The reduction provided by this subsection cannot reduce,
the maximum benefit below 10 The reduction provided for in this subsection shall not
be applicable to disability benefits paid pursuant to Section 8 or pre- retirement death,
benefits paid pursuant to Section 7.
T Participation in Other Defined Benefit Plans.
The limit of this Section with respect to any Member who at any time has,
been a member in anv other defined benefit plan as defined in Code Section 414(1)
maintained by the City shall apply as if the total benefits payable under all City defined,
benefit plans in which the Member has been a member were payable from one plan.
8. Ten Thousand Dollar ($10.000) Limit.
Notwithstandina the foreaoina. the retirement benefit payable with respect
to a Member shall be deemed not to exceed the limit set forth in this Section if the benefits,
payable. with respect to such Member under this System and under all other aualified
defined benefit pension plans to which the City contributes. do not exceed ten thousand.
dollars ($10.0001 for the applicable Plan Year and for anv prior Plan Year and the City has
Ordinance No. 1054 Page 14 of 38
not any time maintained a qualified defined contribution plan in which the Member
participated.
9. Reduction of Benefits.
Reduction of benefits and /or contributions to all plans. where reauired, shall
be accomplished by first reducina 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
reducina or allocating excess forfeitures for defined contribution plans in which the Member
participated. such reduction to be made first with respect to the plan in which Member most
recently accrued benefits and thereafter in such priority as shall be established by the
Board and the plan administrator for such other plans provided, however. that necessary
reductions may be made in a different manner and priority pursuant to the agreement of
the Board and the plan administrator of all other plans coverina such Member.
10. Service Credit Purchase Limits.
A. Effective for permissive service credit contributions made in limitation
Years beginning after December 31, 1997. if a Member makes one or
more contributions to purchase permissive service credit under the
System. as allowed in Section 25 and 27. then the requirements of
this Section will be treated as met only if:
al the requirements of Code Section 415(b) are met. determined
by treatina the accrued benefit derived from all such
contributions as an annual benefit for purposes of Code
Section 415(b). or
the reauirements of Code Section 415(c) are met, determined
by treatina all such contributions as annual additions for
Purposes of Code Section 415(c).
al For purposes of applying subparagraph (1). the System will not
fail to meet the reduced limit under Code Section 415(b)(2)(c)
solely by reason of this subparagraph (3). and for purposes of
applvina subparagraph (2) the System will not fail to meet the
percentaae limitation under Section 415(c)(1)(B) of the Code
solely by reason of this subparagraph (3).
6. For purposes of this subsection the term "permissive service credit"
means service credit
Ordinance No. 1054 Page 15 of 38
mi l, recoanized by the System for purposes of calculatina a
Member's benefit under the plan.
.21 which such Member has not received under the plan. and
al which such Member may receive only by makina a voluntary
additional contribution. in an amount determined under the
System. which does not exceed the amount necessary to fund,
the benefit attributable to such service credit.
Effective for permissive service credit contributions made in limitation,
years beainnina after December 31. 1997. such term may. if
otherwise provided by the System. include service credit for Periods,
for which there is no performance of service. and. notwithstanding
clause B.(2). may include service credited in order to provide an
increased benefit for service credit which a Member is receivina under
the System.
C. For purposes of applvina the limits in this subsection 10.. only and for;
no other purpose. the definition of compensation where applicable will
be compensation actually paid or made available durina a calendar
near, except as noted below and as Permitted by Treasury
Reaulations Section 1.415(c) -2. or successor regulations. Unless,
another definition of compensation that is permitted by Treasury.
Reaulations Section 1.415(c') -2. or successor reaulation. is specified
by the System. compensation will be defined as waaes within the
meanina of Code Section 3401(a) and all other Payments of
compensation to an employee by an emolover for which the employer
is reauired to furnish the employee a written statement under Code
Sections 6041(d). 6051(a)(3) and 6052 and will be determined without
reaard to any rules under Code Section 3401(a) that limit the
remuneration included in waaes based on the nature or location of the
employment or the services performed (such as the exception for
aaricultural labor in Code Section 3401(a)(2).
(1) However. for calendar years beginning after December 31,,
1997. compensation will also include amounts that would
otherwise be included in compensation but for an election
under Code Sections 125(a). 402(e)(3). 402(h)(1)(B). 402(k).
or 457(b). For calendar years beainnina after December 31,
Ordinance No. 1054 Page 16 of 38
2000. compensation will also include any elective amounts that
are not includible in the cross income of the employee by
reason of Code Section 132(fl(4).
For limitation nears beainnina on and after January 1, 2007,
compensation for the calendar year will also include
compensation paid by the later of 21/2 months after an
employee's severance from employment or the end of the
calendar year that includes the date of the employee's
severance from employment if:
fai the payment is regular compensation for services during
the employee's reaular workina hours. or compensation
for services outside the employee's reaular workina
hours (such as overtime or shift differential),
commissions, bonuses or other similar payments. and.
absent a severance from employment. the payments,
would have been paid to the employee while the
emolovee continued in employment with the employer:
or
al the payment is for unused accrued bona fide sick,
vacation or other leave that the employee would have
been able to use if employment had continued.
al Back pay. within the meaning of Treasury Reaulations
Section 1.415(c)-2(a)(8). shall be treated as compensation for
the limitation near to which the back Day relates to the extent
the back pay represents waaes and compensation that would
otherwise be included under this definition.
D. Notwithstandina any other provision of law to the contrary. the Board
may modify a request by a Member to make a contribution to the
System if the amount of the contribution would exceed the limits,
provided in Code Section 415 by using the followina methods:
ai If the law reauires a lump sum payment for the purchase of
service credit, the Board may establish a periodic payment
deduction plan for the Member to avoid a contribution in,
excess of the limits under Code Sections 415(c) or 415(n).
Ordinance No. 1054 Page 17 of 38
12), If payment pursuant to subparaaraph (1) will not avoid a
contribution in excess of the limits imposed by Code Section
415(c). the Board may either reduce the Member's contribution
to an amount within the limits of that section or refuse the,
Member's contribution.
11. Additional Limitation on Pension Benefits.
Notwithstandina anvthina herein to the contrary:
A. The normal retirement benefit or pension payable to a Retiree who,
becomes a Member of the System and who has not previously
participated in such System. on or after January 1. 1980. shall not
exceed one hundred percent (100 of hisAveraae Final Compensa-
tion. However. nothina contained in this Section shall apply to
supplemental retirement benefits or to pension increases attributable
to cost- of- Iivina increases or adiustments.
B. No Member of the System shall be allowed to receive a retirement
benefit or pension which is in part or in whole based upon any service
with respect to which the Member is already receivina. or will receive
in the future. a retirement benefit or pension from a different
employer's retirement system or plan. This restriction does not apply
to social security benefits or federal benefits under Chapter 67. Title
10. U.S. Code.
SECTION 10: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 16, Minimum Distribution of Benefits, to read as
follows:
SECTION 16. MINIMUM DISTRIBUTION OF BENEFITS.
1. General Rules.
A. Effective Date. Effective as of January 1. 1989. the Plan will pay all
benefits in accordance with a aood faith interpretation of the
reauirements of Code Section 401(a)(9) and the reaulations in effect
under that section. as applicable to a governmental plan within the
meaning of Code Section 414(d). Effective on and after January 1.,
Ordinance No. 1054 Page 18 of 38
2003. the Plan is also subiect to the specific provisions contained in
this Section. The provisions of this Section will apply for purposes of
determining required minimum distributions for calendar years
beginning with the 2003 calendar year.
B. Precedence. The requirements of this Section will take precedence
over any inconsistent provisions of the Plan.
V`11111 Ili
GVtiul' u4I'IVli M 1a 1,k 1
the Code.
O C. TEFRA Section 242(b)(2) Elections. Notwithstanding the other
provisions of this Section other than this subsection x-787 1.C.,
distributions may be made under a designation made before January
1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and
Fiscal Responsibility Act (TEFRA) and the provisions of the plan that
related to Section 242(b)(2) of TEFRA.
2. Time and Manner of Distribution.
A. Reauired Beainnina Date. The Member's entire interest will be
distributed, or begin to be distributed, to the Member no later than the
Member's required beginning date which shall not be later than April
1 of the calendar year following the later of the calendar year in which
the Member attains age seventy and one -half (70 1/2) or the calendar
year in which the Member
terminates employment with the City.
B. Death of Member Before Distributions Beain. If the Member dies
before distributions begin, the Member's entire interest will be
distributed, or begin to be distributed no later than as follows:
(1) If the Member's surviving spouse is the Member's sole
designated beneficiary, then distributions to the surviving
spouse will begin by December 31 of the calendar year
immediately following the calendar year in which the Member
died, or by a date on or before December 31 of the calendar
year in which the Member would have attained age 70 1 /2, if
later. as the surviving spouse elects.
Ordinance No. 1054 Page 19 of 38
(2) If the Member's surviving spouse is not the Member's sole
designated beneficiary, then, distributions to the designated
beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Member
died.
(3) If there is no designated beneficiary as of September 30 of the
year following the year of the Member's death, the Member's
entire interest will be distributed by December 31 of the
calendar year containing the fifth anniversary of the Mernber's
death.
(4) If the Member's surviving spouse is the Member's sole
designated beneficiary and the surviving spouse dies after the
Member but before distributions to the surviving spouse begin,
this subsection 2.B., other than subsection 2.B.(1), will apply
as if the surviving spouse were the Member.
For purposes of this subsection 2.B. and subsection 5.,
distributions are considered to begin on the Member's required
beginning date or, if subsection 2.B.(4) applies, the date of
distributions are required to begin to the surviving spouse
under subsection 2.B.(1). If annuity payments irrevocably
commence to the Member before the Member's required
beginning date (or to the Member's surviving spouse before
the date distributions are required to begin to the surviving
spouse under subsection 2.B.(1)), the date distributions are
considered to begin is the date distributions actually
commence.
C. Death After Distributions Begin. If the Member dies after the required
distribution of benefits has beaun. the remaining portion of the
Member's interest must be distributed at least as rapidly as under the
method of distribution before the Member's death.
e.D Form of Distribution. Unless the Member's interest is distributed in
the form of an annuity purchased from an insurance company or in a
single sum on or before the required beginning date, as of the first
distribution calendar year distributions will be rnade in accordance e
strbseetiams 3, 4 and 5 of with this Section. If the Member's interest
Ordinance No. 1054 Page 20 of 38
is distributed in the form of an annuity purchased from an insurance
company, distributions thereunder will be made in accordance with
the requirements of Section 401(a)(9) of the Code and Treasury
regulations. Any part of the Member's interest which is in the form of
an individual account described in Section 414(k) of the Code will be
distributed in a manner satisfying the requirements of Section
401(a)(9) of the Code and Treasury regulations that apply to
individual accounts.
3. Determination of Amount to be Distributed Each Year.
A. General Annuity Requirements. If the Member's interest is paid in the
form of annuity distributions under the Plan, payments under the
annuity will satisfy the following requirements:
(1) The annuity distributions will be paid in periodic payments
made at intervals not longer than one year.
(2) 3ver.a
�i erca 11 I not u OSGftbred—in
The Member's entire interest must be
distributed pursuant to Section 6. Section 7, Section 9. or
Section 10 (as applicable) and in any event over a period equal
to or Tess than the Member's life or the lives of the Member
and a desianated beneficiary. or over a period not extending
beyond the life expectancy of the Member or of the Member
and a desianated beneficiary. The life expectancy of the
Member. the Member's spouse, or the Member's beneficiary
may not be recalculated after the initial determination for
purposes of determining benefits.
(4) 1'1
(4 yme,_ IIUIIIII VI inns e V as as
foliows:
Ordinance No. 1054 Page 21 of 38
+b) A11IIiunt of the
11. d�' tion peliVV
U Iii
(Co.) Y-
1
I�1■ T-
amendment
B. Amount Reauired to be Distributed by Reauired Beainnina Date. The
amount that must be distributed on or before the Member's required
beginning date (or, if the Member dies before distributions begin, the
date distributions are required to begin under Section
7) is the payment that is required for one payment interval. The
second payment need not be made until the end of the next payment
interval even if that payment interval ends in the next calendar year.
Payment intervals are the periods for which payments are received,
e.g., 9th-1 monthly, All of the
Member's benefit accruals as of the last day of the first distribution
calendar year will be included in the calculation of the amount of the
annuity payments for payment intervals ending on or after the
Member's required beginning date.
C. Additional Accruals After First Distribution Calendar Year. Any
additional benefits accruing to the Member in a calendar year after the
first distribution calendar year will be distributed beginning with the
first payment interval ending in the calendar year immediately
following the calendar year in which such amount accrues.
T. 1,... i
Lifetime-
A 1 5'
Ordinance No. 1054 Page 22 of 38
i YVI\!.r 4+. •1 •i_ ;i
r
yrr rrrir i i i
1
i i ;foe, 1. \Vl.
;i 46.;;;;;..1
i i i w i
1 q �l
1 i I�',woo o
i V 1:r Y Y 111
r r 1. le --•-'•i----
i
I
VV 1 1 1 1 1 1 V11
i i
o Lifetime-T
ZlIIV IIy j�• i
I
Member-mac; Cay; 1
i'-
=i
the-Memberls-b'fli.'T.c Y 1\.
.1_ ...1.. designated
'••r
i i Lila 11
r 1 1 Z1�lG Lei t
MJV G�.Y 4VL4.r1111•
'r
1_ I
Member's-and �qq� q, i as °s a ia1r11ru uy:.:, u� af 'ie
I Y Iembe1 V a d V�.I Viw i
n�/W.L�
V. 1'I VbI L/11 \I`II�.I ILV i
Ordinance No. 1054 Page 23 of 38
dtstr'ibtittorr is-or her'1 e-is
a destgi°rat eel beneficiary, tire Member' s entire---itkeres-t-- wIW --be
disl-ributed— be rrtit to -leteri ian-the-tim seribed-In —s., ec rt
2.D:(1) or 2. +ie- eeh ae €ic ver
I.
i- first is ribtttiort
(2) I,t LI_
(2) YI 111V n
i IC, .-.;e igrtated
CJi ITf�
e-cor aitts t ie
ttnituity-start-ing-dateT
the
be s Sole
j.st ii ut'ions�L. L
I
dIJ �rIV M1,IV11J tV LI IV J
r
subsection 2.D.(1).
4. General Distribution Rules.
A. The amount of an annuity paid to a Member's beneficiary may not
exceed the maximum determined under the incidental death benefit
requirement of Code Section 401(a)(91(G). and effective for any
annuity commencina on or after January 1. 2008. the minimum
Ordinance No. 1054 Page 24 of 38
distribution incidental benefit rule under Treasury Regulation Section
1.401(a)(9) -6. Q&A -2.
6. The death and disability benefits provided by the Plan are limited by
the incidental benefit rule set forth in Code Section 401(a)(9)(G) and
Treasury Reaulation Section 1.401- 1(b)(1)(I) or any successor
reaulation thereto. As a result. the total death or disability benefits
payable may not exceed 25% of the cost for all of the Members'
benefits received from the retirement system.
6 5. Definitions.
A. Desianated Beneficiary. The individual who is designated as the
beneficiary under the Plan and is the designated beneficiary under
Section 40I(a)(9) of the Code and Section 1.401(a)(9) -1, Q&A -4, of
the Treasury regulations.
B. Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
Member's death, the first distribution calendar year is the calendar
year immediately preceding the calendar year which contains the
Member's required beginning date. For distributions beginning after
the Member's death, the first distribution calendar year is the calendar
year in which distributions are required to begin pursuant to
subsection 2. D Section 7.
C. 1
P� T
SECTION 11: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 17, Miscellaneous Provisions, to read as follows:
SECTION 17. MISCELLANEOUS PROVISIONS.
1. Interest of Members in System.
At All assets of the Fund are held in trust. and at no time prior to the
satisfaction of all liabilities under the System with respect to Retirees and Members and
Ordinance No. 1054 Page 25 of 38
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.
2. No Reduction of Accrued Benefits.
No amendment or ordinance shall be adopted by the Ciiy Council of the City
c f Okeech bee which shall have the effect of reducing the then vested accrued benefits
of Members or a Member's Beneficiaries.
3. Qualification of System.
It is intended that the System will constitute a qualified public pension plan
under the applicable provisions of the Code for a aualified plan under Code Section 401(a)
and a aovernmental plan under Code Section 414(d), as now in effect or hereafter
amended. Any modification or amendment of the System may be made retroactively., if
necessary or appropriate, to qualify or maintain the System as a Plan meeting the
requirements of the applicable provisions of the Code as now in effect or hereafter
amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect
or hereafter amended or adopted, and the regulations issued thereunder.
4. Use of Forfeitures.
Forfeitures arising from terminations of service of Members shall serve only
to reduce future City contributions.
5. Prohibited Transactions.
Effective as of January 1. 1989. a Board may not enaaae in a transaction
Prohibited by Code Section 503(b).
6. USERRA.
Effective December 12. 1994. notwithstandina any other provision of this
System. contributions. benefits and service credit with respect to aualified military service
are governed by Code Section 414(u) and the Uniformed Services Employment and
Reemployment Rights Act of 1994. as amended. To the extent that the definition of
"Credited Service" sets forth contribution requirements that are more favorable to the
Member than the minimum compliance reauirements. the more favorable provisions shall,
apply.
T Vestina.
A. Member will be 100% vested in all benefits upon attainment of the.
Plan's ape and service reauirements for the Plan's normal retirement
benefit: and
Ordinance No. 1054 Page 26 of 38
B. A Member will be 100% vested in all accrued benefits. to the extent
funded. if the Plan is terminated or experiences a complete
discontinuance of employer contributions.
8. Electronic Forms.
In those circumstances where a written election or consent is not reauired by
the Plan or the Code. an oral. electronic. or telephonic form in lieu of or in addition to a
written form may be prescribed by the Board. However. where applicable. the Board shall
comply with Treas. Rea. 1.401(a) -21.
5 9. Compliance with Chapter 185, Florida Statutes.
It is intended that the System will continue to qualify for funding under Section
185.08, Florida Statutes. Accordingly, unless otherwise required by law, any provision of
the System which violates the requirements of Chapter 185, Florida Statutes, as amended
from time to time, shall be superseded by and administered in accordance with the
requirements of such chapter.
SECTION 12: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 18, Repeal or Termination of System, to read as
follows:
SECTION 18. REPEAL OR TERMINATION OF SYSTEM.
1. This ordinance establishing the System and Fund, and subsequent
ordinances pertaining to said System and Fund, may be modified, terminated, or amended,
in whole or in part; provided that if this or any subsequent ordinance shall be amended or
repealed in its application to any person benefitting hereunder, the amount of benefits
which at the time of any such alteration, amendment, or repeal shall have accrued to the
Member or Beneficiary shall not be affected thereby,
2. If this ordinance shall be repealed, or if contributions to the System are
discontinued or if there is a transfer, merger or consolidation of government units, services
or functions as provided in Chapter 121, Florida Statutes, the Board shall continue to
administer the System in accordance with the provisions of this ordinance, for the sole
benefit of the then Members, any Beneficiaries then receiving retirement allowances, and
any future persons entitled to receive benefits under one of the options provided for in this
ordinance who are designated by any of said Members. In the event of repeal,
Ordinance No. 1054 Page 27 of 38
discontinuance of contributions, or transfer, merger or consolidation of government units,
services or functions, there shall be full vesting (100 of benefits accrued to date of
repeal andthe: it#e benefit; c; i u G G O with the
thereof such benefits shall be nonforfeitable.
•G•• G G:
Board.
G
i
Ira
11 L
G
1- ..J.
4
JwJJv
G
Ordinance No. 1054 Page 28 of 38
v i 'i CAI CAfe..4' JI IJ
V 1
i1 11.r .:JVI i i i i
A
1_
1 -'i 'i 1 i •'i Jb_ l vll i\i 1'11 'G 1111111.
th e-auw I c yu i i i i
D 11 t A10c/ 1\..,11 VI "NV11/IIV11
F e,. uy, i ihs—A, 2, and 0, appv respeet-e ..c mil, I'u "u p., e.iCic.l ",Y
J. 1.
i I 1'.r..., i�1 ";aur in poi e9,c 11
i i i .1
L i 1 1 ;1"11`'ly
th e., d, vt'ii i :iii i i 1
y1'I•,yl:,
z. v •v such l 1 1i11ICA ;.1111
1 1 "V1'1'I{. -1
i,,.r.S:S .G icro y than—the—tot 'i i i i
i 'i i i i
T
1 'i •'i i■ i 'i •1 i i
A
tIV ..JVbI i t i V II11.04:41 IIil C.IV1.S
i elistributed-irr:,..e, --i i i i' 'i• i i
i i 1
0
i i i
Ordinance No. 1054 Page 29 of 38
notwi s t g- ,--Oity- eontribut ts-rthich- -b .dseci- for-tf rbe t- of -tfi e, -tie
twentyftv esfi- p-atd- rs�i -Fri -eff ive- elate,- tircerse--arti rated -.a rapt
reti ent-allowa-r gee- vieled -bq° tie ity's -eo tnbutio s--aHAembeez-ttsbi f i fair °er,r� rrt
d;xe- -would- exceed- -erte- rousand- five-41 -un f slorli ,exceed -i re
grey et of cit 1c et) zwernty safrel- deliers- car "c,), an-a ount computed by
tyttiftiplyirtg -tbe-s TT IZ[Her often thot ....-d-eletiar- eT nty-pe f-(20 o -stmi7
Mer ls 'der e ar nua it s-eltt!°i is-last iv '-E5'1-yei s-of- s- ervice-by-the-ti tl ber
of--years -of -seta t ;n —event that- if-sie all hereaf e- eietei»
rnFne --b statute court- deeisioi<r� -ruling -b y- the- C-or, t ris-sto-ner of internal•-R werrue7-or
of erwise• t- the- previsions -ef-t ris- paragfapt are not hen--rncv::,z,a;y o-- tralif he
Gystern-t etc -ineffeetive-witletetit-the-neeessity-offuithef
amerititrinen --oH s- er -inanee:'
A A a the ..L e nt
Y. ��ITGi-II i Gr' i i.i i i i i-
fund;' -rreve i td'of he- City
3. The fund shall be distributed in accordance with the following procedures:
A. The Board shall determine the date of distribution and the asset value
reauired to fund all the nonforfeitable benefits after taking into account
the expenses of such distribution. The Board shall inform the City if
additional assets are reauired. in which event the City shall continue,
to financially support the Plan until all nonforfeitable benefits have
been funded.
B. The Board shall determine the method of distribution of the asset
value. whether distribution shall be by payment in cash. by the
maintenance of another or substituted trust fund. by the purchase of
insured annuities. or otherwise. for each Police Officer entitled to
benefits under the plan as specified in subsection C.,
C. The Board shall distribute the asset value as of the date of
termination in the manner set forth in this subsection. on the basis,
that the amount reauired to provide any aiven retirement income is,
the actuarially computed single -sum value of such retirement income.,
except that if the method of distribution determined under subsection,
B. involves the purchase of an insured annuity. the amount reauired
to provide the aiven retirement income is the sinale premium payable
for such annuity. The actuarial sinale -sum value may not be less than.
Ordinance No. 1054 Page 30 of 38
the Police Officer's Accumulated Contributions to the Plan, with
interest if provided by the Plan, Tess the value of any plan benefits
previously paid to the Police Officer.
D. If there is asset value remaining after the full distribution specified in,
subsection C.. and after the payment of any expenses incurred with
such distribution, such excess shall be returned to the City. Tess return
to the State of the State's contributions. provided that. if the excess
is less than the total contributions made by the City and the State to
date of termination of the Plan. such excess shall be divided,
proportionately to the total contributions made by the City and the
State.
E. The Board shall distribute. in accordance with subsection B.. the,
amounts determined under subsection C.,
If. after twentv -four (24) months after the date the Plan terminated or the date the,
Board received written notice that the contributions thereunder were being permanently
discontinued. the City or the Board of the Fund affected has not complied with all the
provisions in this Section. the Florida Department of Manaaement Services will effect the
termination of the Fund in accordance with this Section.
SECTION 13: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 19, Domestic Relations Orders, Retiree Directed
Payments, Exemption from Execution, Non Assignability, subsection 2., Retiree Directed
Payments, to read as follows:
2. Retiree Directed Payments.
The Board may, upon written request by a Retiree or by a dependent, when
authorized by a Retiree or the Retiree's Beneficiary, authorize the System to withhold from
the monthly retirement payment those funds that are necessary to pay for the benefits
being received through the City, to pay the certified bargaining agent of the City, to make
Payments to insurance companies for insurance premiums as permitted by Chapter 185,
Florida Statutes. and to make any payments for child support or alimony.
SECTION 14: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
Ordinance No. 1054 Page 31 of 38
further amended by amending Section 21, Forfeiture of Pension, subsection 1., to read as
follows:
1. Any Member 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, but without interest,
as of the date of termination.
Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public
funds;
B. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
D. Any felony specified in Chapter 838, Florida Statutes,.
E. The committing of an impeachable offense.
F. The committing of any felony by a public officer or employee who
willfully and with intent to defraud the public or the public agency, for
which he acts or in which he is employed, of the right to receive the
faithful performance of his duty as a public officer or employee,
realizes or obtains or attempts to obtain a profit, gain, or advantage
for himself or for some other person through the use or attempted use
of the power, rights, privileges, duties or position of his public office
or employment position.
G. The committina on or after October 1. 2008, of any felony defined in,
Section 800.04. Florida Statutes. against a victim vounuer than
sixteen (16) years of aae. or any felony defined in Chanter 794.
Florida Statutes. aaainst a victim vounaer than eiahteen (18) years of
aae. by a public officer or employee through the use or attempted use,
of power. riahts. privileaes. duties. or position of his or her public
office or employment position.
SECTION 15: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
Ordinance No. 1054 Page 32 of 38,
further amended by amending Section 26, Direct Transfers of Eligible Rollover
Distributions, Elimination of Mandatory Distributions, to read as follows:
SECTION 26. DIRECTTRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS
ELIMINATION OF MANDATORY DISTRIBUTIONS
1. Rollover Distributions.
A. General. This Section applies to distributions made on or after
January 1, 2002. Notwithstanding any provision of the System 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.
B. Definitions.
(1) 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 (1) of a series of
substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the distributee
or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated Beneficiary, or for a specified
period of ten (10) years or more; any distribution to the extent
such distribution is required under section 401(a)(9) of the
Code; and the portion of any distribution that is not includible
in gross income. Any Effective January 1. 2002. any portion of
any distribution which would be includible in gross income as
after -tax employee contributions will be an eligible rollover
distribution if the distribution is made to an individual retirement
account described in section 408(a) ;to an individual retirement
annuity described in section 408(b); of to a qualified defined
contribution plan described in section 401(a) or 403(a) that
agrees to separately account for amounts so transferred (and
earninas thereon2, including separately accounting for the
portion of such distribution which is includible in gross income
and the portion of such distribution which is not so includible;
Ordinance No. 1054 Page 33 of 38
or on or after January 1. 2007. to a aualified defined benefit
plan described in Code Section 401(a) or to an annuity
contract described in Code Section 403(b). that agrees to
separately account for amounts so transferred (and earnings
thereon). including separately accountina for the portion of the,
distribution that is includible in cross income and the portion of
the distribution that is not so includible.
(2) Eligible Retirement Plan: An eligible retirement plan is an
individual retirement account described in section 408(a) of the
Codei an individual retirement annuity described in section
408(b) of the Codei an annuity plan described in section
403(a) of the Code. effective January 1. 2002, an eligible
deferred compensation plan described in section 457(b) of the
Code which is maintained by an eligible employer described in
section 457(e)(1)(A) of the Code and which agrees to
separately account for amounts transferred into such plan from
this plan: effective January 1. 2002 an annuity contract
described in section 403(b) of the Codei of a qualified trust
described in section 401(a) of the Code: or effective January
1. 2008. a Roth IRA described in Section 408A of the Code,
that accepts the distributee's eligible rollover distribution. This
definition shall apply in the case of an eligible rollover
distribution to the surviving Spouse.
(3) Distributee: A distributee includes an employee or former
employee. It also includes the employee's or
former employee's surviving Spouse
and the employee's or
former employee's spouse or former spouse. Effective
January 1. 2007. it further includes a nonspouse beneficiary
who is a designated beneficiary as defined by Code Section
401(a)(9)(E). However. a nonspouse beneficiary may rollover
the distribution only to an individual retirement account or
individual retirement annuity established for the purpose of
receiving the distribution and the account or annuity will be
Ordinance. No. 1054 Page 34 of 38
treated as an "inherited" individual retirement account or
annuity.
4 Direct I
(4) t Ro lover. A direct rollover is a payment by the plan to
the eligible retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund.
On or after January 1, 2002, the System will accept, solely for the purpose
of purchasing Credited Service as provided herein, permissible Member requested
transfers of funds from other retirement or pension plans, Member rollover cash
contributions and /or direct cash rollovers of distributions made on or after January 1, 2002,
as follows:
A. Transfers and Direct Rollovers or Member Rollover Contributions from
Other Plans. The System will accept either a direct rollover of an
eligible rollover distribution or a Member contribution of an eligible
rollover distribution from a qualified plan described in section 401(a)
or 403(a) of the Code, from an annuity contract described in section
403(b) of the Code or from an eligible plan under section 457(b) of the
Code which is maintained by a state, political subdivision of a state,
or any agency or instrumentality of a state or political subdivision of
a state. The System will also accept legally permissible Member
requested transfers of funds from other retirement or pension plans.
B. Member Rollover Contributions from IRAs. The system will accept a
Member rollover contribution of the portion of a distribution from an
individual retirement account or annuity described in section 408(a)
or 408(b) of the Code that is eligible to be rolled over awl -would
3. Elimination of Mandatory Distributions.
Notwithstanding any other provision herein to the contrary, in the event this
Plan provides for a mandatory (involuntary) cash distribution from the Plan not otherwise
required by law, for an amount in excess of one thousand dollars ($1,000.00), such
distribution shall be made from the Plan only upon written request of the Member and
completion by the Member of a written election on forms designated by the Board, to either
receive a cash lump sum or to rollover the lump sum amount.
SECTION 16: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
Ordinance No. 1054 Page 35 of 38
further amended by amending Section 27, Prior Police Service, amending subsection 5.,
and adding subsection 6., to read as follows:
5. In no event, however, may Credited Service be purchased pursuant to this
Section for prior service with any other municipal, county or state law enforcement
department, if such prior service forms or will form the basis of a retirement benefit or
pension from a different er^oloyer's retirement system or plan as set forth in Section 15,
subsection 87B3 11.B.
6. For purposes of determining credit for prior service as a Police Officer as
Provided for in this Section. in addition to service as a Police Officer in this State, credit
may be purchased by the Member in the same manner as provided above for federal.
other state. county or municipal service if the prior service is recognized uv the Criminal
Justice Standards and Trainina Commission within the Department of Law Enforcement.
as provided under Chapter 943. Florida Statutes. or the Police Officer provides Proof to the
Board that such service is equivalent to the service required to meet the definition of a
Police Officer under Section 1.
SECTION 17: That the City of Okeechobee Municipal Police Officers' Pension
Trust Fund, adopted pursuant to Ordinance No. 888, as subsequently amended, is hereby
further amended by amending Section 28, Deferred Retirement Option Plan, subsection
2.E., Effect of DROP Participation on the System, and by amending subsection 4.B., Form
of Distribution, to read as follows:
2, E. Effect of DROP Participation on the System.
(1) A Member's Credited Service and his accrued benefit under
the System shall be determined on the date his election to
participate in the DROP first becomes effective. For purposes
of determinina the accrued benefit. the Member's Salary for
the Purposes of calculating his Averaae Final Compensation
shall include an amount equal to any lump sum payments
which would have been paid to the Member and included as
Salary as defined herein. had the Member retired under normal
retirement and not elected DROP participation. Member
contributions attributable to any lump sums used in the benefit
calculation and not actually received by the Member shall be
Ordinance No. 1054 Page 36 of 38
deducted from the first payments to the Member's DROP
Account. The Member shall not accrue any additional Credited
Service or any additional benefits under the System (except for
any additional benefits provided under any cost -of- living
adjustment for Retirees in the System) while he is a participant
in the DROP. After a Member commences participation, he
shall not be permitted to again contribute to the System nor
shall he be eligible for disability or pre- retirement death
benefits, except as provided for in Section 29, Reemployment
After Retirement.
(2) No amounts shall be paid to a Member from the System while
the Member is a participant in the DROP. Unless otherwise
specified in the System, if a Member's participation in the
DROP is terminated other than by terminating his employment
as a Police Officer, no amounts shall be paid to him from the
System until he terminates his employment as a Police Officer.
Unless otherwise specified in the System, amounts transferred
from the System to the Member's DROP Account shall be paid
directly to the Member only on the tenr.ination of his
employment as a Police Officer.
4. B. Form of Distribution.
(1) Unless the Member elects otherwise, distribution of his DROP
Account shall be made in a lump sum, subject to the direct
rollover provisions set forth in subsection 4.F. fiber -may,
fioweve;', 0;ociL, er e-
Member-mar eleet7- Elections under this paragraph shall be in
writing and shall be made in such time or manner as the Board
shall determine.
(2) If a Member dies before his benefit is paid, his DROP Account
shall be paid to his Beneficiary in such optional form as his
Beneficiary may select. If no Beneficiary designation is made,
the DROP Account shall be distributed to the Member's estate.
Ordinance No. 1054 Page 37 of 38
SECTION 18: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Okeechobee.
SECTION 19: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 20: 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 21: That this Ordinance shall become effective upon adoption.
Introduced on first reading and set for public hearing this 6 day of October. 2009.
k; de
J .,e s E. Kirk, Mayor
ATT tI: A
r
,Lanek.Gamiotea, j y Clerk
Passed on second reading after public hearing this 3rd day of November. 2009.
0 g-°'4
,es E. Kirk, Nfayor
ATTEST:
0 AO
C
Lane Oamiotea, CtffClerk
APPROVED FOR LEGAL S FFICIENCY:
R C
JohinR. Cook, City Attorney
dm /ok/pol /09- 21- 09.ord
Ordinance No. 1054 Page 38 of 38