0826 PO Pension Fund ORDINANCE NO. 826
AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE CITY
OF OKEECHOBEE MUNICIPAL POLICE OFFICERS' PENSION TRUST
FUND, ADOPTED PURSUANT TO ORDINANCE 749; AMENDING
SECTION 1, DEFINITIONS, BY AMENDING THE DEFINITION OF
"ACCUMULATED CONTRIBUTIONS"; AMENDING SECTION 8,
DISABILITY; AMENDING SECTION 10, OPTIONAL FORMS OF
BENEFITS; AMENDING SECTION 15, MAXIMUM PENSION; AMENDING
SECTION 17,MISCELLANEOUS PROVISIONS;AMENDING SECTION 25,
MILITARY SERVICE PRIOR TO EMPLOYMENT;AMENDING SECTION 27,
DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS;
ADDING SECTION 27, PRIOR POLICE SERVICE; 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. 749, is hereby amended by amending
Section 1, Definitions, by amending the definition of"Accumulated Contributions",
to read as follows:
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 four and one-quarter percent (4.25%) per annum thereafter. For those
Members who purchase Credited Service at no cost to the System, ppttrstra-rtt-te
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representing the amount attributable to Member contributions based on the
applicable Member contribution rate, and any payment representing interest and
any required actuarially calculated payments for the purchase of such Credited
Service, shall be included in Accumulated Contributions without the crediting of
interest of four and one-quarter percent (4-1/4%) per annum.
SECTION 2: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 749, is hereby amended by amending
Section 8, Disability, subsection 5, Physical Examination Requirement, to read as
follows:
5. Physical Examination Requirement.
A Member 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. The Board shall not select the Member's treating physician or
surgeon for this purpose except in an unusual case where the Board
determines that it would be reasonable and prudent to do so.
Any Retiree receiving disability benefits under provisions of this ordinance
may be required by the Board to submit sworn
statements of his condition accompanied by a physician's statement
(provided at the Retiree's expense) to the Board annually and may be
required by the Board to undergo additional periodic re-examinations by a
qualified physician or physicians and/or surgeon or surgeons who shall be
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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
• Police Officer, the Board shall recommend to the City that the Retiree be
returned to performance of duty as a Police Officer, 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, he shall forfeit the right to his pension.
The cost of the physical examination and/or re-examination of the Member
claiming or the Retiree 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.
If the Retiree recovers from disability and reenters the service of the City as
a Police Officer, 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 Retiree fails to reenter
the service of the City as a Police Officer 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 Police Officer, the Retiree'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 Police Officer.
The Board shall have the power and authority to make the final decisions
regarding all disability claims.
SECTION 3: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 749, is hereby amended by amending
Section 10, Optional Forms of Benefits, subsection 1.A., to read as follows:
1. A. A retirement income of a modified 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 (66 2/3%) or fifty percent (50%) of such
monthly amount payable to a joint pensioner for his lifetime. Except
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of payments to the Retiree shall not be less than fifty percent (50%)
of the total present value of payments to the Retiree and his joint
pensioner.
SECTION 4: That the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, adopted pursuant to Ordinance No. 749, is hereby amended by amending
Section 15, Maximum Pension, to read as follows:
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 ninety one hundred sixty thousand dollars
• {$90,000) ($160,000).
For purposes of applying the above limitation, benefits payable in any form
other than a straight life annuity with no ancillary benefits shall be adjusted,
as provided by Treasury Regulations, so that such benefits are the Actuarial
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Equivalent of a straight life annuity. For purposes of this Section, the
following benefits shall not be taken into account:
• (1) Any ancillary benefit which is not directly related to retirement income
benefits;
(2) Any other benefit not required under §415(b)(2) of the Code and
Regulations thereunder to be taken into account for purposes of the
limitation of§415(b)(1) of the Code.
2. Participation in Other Defined Benefit Plans.
The limitation of this Section with respect to any Member who at any time
has been a member in any other defined benefit plan (as defined in §414(j)
of the Code) maintained by the City shall apply as if the total benefits pay-
able under all defined benefit plans in which the Member has been a
member were payable from one (1) plan.
3. Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before
age sixty-two (62), the ninety one hundred sixty thousand dollar
($90 000) ($160,000) limitation prescribed by this Section shall be
reduced in accordance with Regulations issued by the Secretary of
the Treasury pursuant to the provisions of §415(b) of the Code, Iattt
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Cie so that such limitation (as so reduced)equals an annual benefit
(beginning when such retirement income benefit begins) which is
equivalent to a one hundred sixty thousand dollar ($160,000) annual
benefit beginning at age sixty-two (62).
B. In the event the Member's benefit is based on at least fifteen (15)
years of Credited Service, the adjustments provided for in A. above
shall not apply.
C. The reductions provided for in A. above shall not be applicable to
disability benefits paid pursuant to Section 8 or pre-retirement death
benefits paid pursuant to Section 7.
D. In the event the Member's retirement benefit becomes payable after
age sixty-five (65), for purposes of determining whether this benefit
meets the limitation set forth in subsection 1 herein, such benefit shall
be adjusted so that it is actuarially equivalent to the benefit beginning
at age sixty-five ( 65). This adjustment shall be made using °r
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accordance with regulations promulgated by the Secretary of the
Treasury or his delegate.
4. Less than Ten (10) Years of Service.
The maximum retirement benefits payable under this Section to any Member
• who has completed less than ten (10)years of Credited Service with the City
shall be the amount determined under subsection 1 of this Section multiplied
by a fraction, the numerator of which is the number of the Member's years
of Credited Service and the denominator of which is ten (10). The reduction
provided for in this subsection shall not be applicable to disability benefits
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paid pursuant to Section 8, or pre-retirement death benefits paid pursuant
to Section 7.
• 5. Ten Thousand Dollar ($10,000) Limit.
Notwithstanding the foregoing, the retirement benefit payable with respect
to a Member shall be deemed not to exceed the limitations set forth in this
Section if the benefits payable, with respect to such Member under this
System and under all other qualified defined benefit pension plans to which
the City contributes, do not exceed ten thousand dollars ($10,000) for the
applicable Plan Year and for any prior Plan Year and the City has not at any
time maintained a qualified defined contribution plan in which the Member
participated.
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7.6. Reduction of Benefits.
Reduction of benefits and/or contributions to all plans, where required, shall
be accomplished by first reducing the Member's benefit under any defined
benefit plans in which Member participated, such reduction to be made first
with respect to the plan in which Member most recently accrued benefits and
thereafter in such priority as shall be determined by the Board and the plan
administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the Member participated,
such reduction to be made first with respect to the plan in which Member
most recently accrued benefits and thereafter in such priority as shall be
established by the Board and the plan administrator for such other plans
provided, however, that necessary reductions may be made in a different
manner and priority pursuant to the agreement of the Board and the plan
administrator of all other plans covering such Member.
87. Cost-of-Living Adjustments.
The limitations as stated in subsections 1, 27 and 3, and G herein shall be
adjusted to the time payment of a benefit begins in accordance with any
cost-of-living adjustments prescribed by the Secretary of the Treasury
pursuant to §415(d) of the Code.
98. Additional Limitation on Pension Benefits.
Notwithstanding anything herein to the contrary:
A. The normal retirement benefit or pension payable to a Retiree who
becomes a Member of the System and who has not previously
participated in such System, on or after January 1, 1980, shall not
exceed one hundred percent(100%)of his Average Final Compensa-
tion. However, nothing contained in this Section shall apply to
supplemental retirement benefits or to pension increases attributable
• to cost-of-living increases or adjustments.
B. No Member of the System shall be allowed to receive a retirement
benefit or pension which is in part or in whole based upon any service
with respect to which the Member is already receiving, or will receive
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