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0827 FF Pension Fund ORDINANCE NO. 827 • AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS'PENSION TRUST FUND, ADOPTED PURSUANT TO ORDINANCE NO. 750; 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 26, DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; ADDING SECTION 27, PRIOR FIRE 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 Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, is hereby amended by amending Section 1, Definitions, to amend 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. For those Members who purchase Credited Service at no cost to the System, , : . • • • • • - - : - - .: - : - ' - - . - . : - : a - 'a • 'a - - any payment 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 five and one-quarter percent (5-1/4%) percent per annum. SECTION 2: That the City of Okeechobee Municipal Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, 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 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 Page 1 of 8 Firefighter, the Board shall recommend to the City that the Retiree be returned to performance of duty as a Firefighter, and the Retiree so returned shall enjoy the same rights that he had at the time he was placed upon pen- • sion. 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 Firefighter, 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 Firefighter fails to reenter the service of the City as a Firefighter 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 Firefighter, 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 Firefighter. 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 Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, 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 Member, one hundred percent (100%), seventy-five percent (75%), sixty-six and two-thirds percent (66 2/3%) or fifty percent (50%) of such monthly amount payable to a joint pensioner for his lifetime. The present value 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 Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, 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 Equivalent of a straight life annuity. For purposes of this Section, the following benefits shall not be taken into account: Page 2 of 8 (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 n-i-nety 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, but - ea - ... - - - ... Glade 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--aft ' in accordance with regulations promulgated by the Secretary of the Treasury or his delegate. 4. Less than Ten (10) Years of Service. The maximum retirement benefits payable under this Section to any Member who has completed less than ten (10)years of Credited Service with the City shall be the amount determined under subsection 1 of this Section multiplied by a fraction, the numerator of which is the number of the Member's years • of Credited Service and the denominator of which is ten (10). The reduction provided for in this subsection shall not be applicable to disability benefits paid pursuant to Section 8, or pre-retirement death benefits paid pursuant to Section 7. Page 3 of 8 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. • ; • • •;• ; - , - . ; ": - - „ the City, the sum of the "Defined Benefit Plan Fraction" and the "Defined Contribution Plan Fraction" (both as defined in §415(e) of the Code) shall : , - • : and exceptions contained in §2004 of the Act, • .•• 76. 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 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 Page 4 of 8 10, U.S. Code. SECTION 5: That the City of Okeechobee Municipal Firefighters' Pension Trust • Fund, adopted pursuant to Ordinance No. 750, is hereby amended by amending Section 17, Miscellaneous Provisions, by adding subsection 5., Compliance with Chapter 175, Florida Statutes, to read as follows: 5. Compliance with Chapter 175, Florida Statutes. It is intended that the System will continue to qualify for funding under Section 175.101, Florida Statutes. Accordingly, unless otherwise required by law, any provision of the System which violates the requirements of Chapter 175, Florida Statutes, as amended from time to time, shall be superseded by and administered in accordance with the requirements of such chapter. SECTION 6: That the City of Okeechobee Municipal Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, is hereby amended by amending Section 25, Military Service Prior to Employment, to read as follows: SECTION 25. MILITARY SERVICE PRIOR TO EMPLOYMENT. The years or fractional parts of years that a Firefighter serves or has served on active duty in the active military service of the Armed Forces of the United States, the United States Merchant Marine or the United States Coast Guard, 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 Member 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 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. . ; , ; ; . • • - Department Multiple requests to purchase Credited Service pursuant to this Section may be made at any time prior to Retirement. 3. Payment by the Member of the required amount shall be made within six(6) months of his request for credit, but not later than the retirement date, and shall be made in one (1) 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 or eligibility for not-in-line of duty disability benefits. SECTION 7: That the City of Okeechobee Municipal Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, is hereby amended by amending Section 26, Direct Transfers of Eligible Rollover Distributions, to read as follows: SECTION 26. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS. 1. Rollover Distributions. A. General. Page 5 of 8 This Section applies to distributions made on or after January 1,4.993 2002. 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. B. Definitions. At (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 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 portion of any distribution which would be includible in gross income 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) or to a qualified defined contribution plan described in section 401(a) or 403(a) that agrees to separately account for amounts so transferred, 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. BT al 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, 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, an annuity contract described in section 403(b) of the Code, or a qualified trust described in section 401(a) of the Code, that accepts the distributee's eligible rollover distribution. However This definition shall also apply in the case of an eligible rollover distribution to the surviving Spouse, ann . a) 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. al Direct Rollover: 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 Page 6 of 8 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 and would otherwise be includible in gross income. SECTION 8: That the City of Okeechobee Municipal Firefighters' Pension Trust Fund, adopted pursuant to Ordinance No. 750, is hereby amended by adding Section 27, Prior Fire Service, to read as follows: SECTION 27. PRIOR FIRE SERVICE. Unless otherwise prohibited by law, and except as provided for in Section 1 , the years or fractional parts of years that a Member previously served as a full-time Firefighter with the City during a period of previous employment and for which period Accumulated Contributions were withdrawn from the Fund, or the years and fractional parts of years that a member served as a Firefighter for any other municipal, county, state or special district fire department in the State of Florida shall be added to his years of Credited Service provided that: 1. The Member 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 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. Multiple requests to purchase Credited Service pursuant to this Section may be made at any time prior to Retirement. 3. Payment by the Member of the required amount shall be made within six (6) months of his request for credit, but not later than the retirement date, and shall be made in one (1) lump sum payment upon receipt of which Credited Service shall be given. 4. The maximum credit under this Section for service other than with the City of Okeechobee shall be five (5)years of Credited Service and shall count for all purposes, except vesting and eligibility for not-in-line of duty disability benefits. There shall be no maximum purchase of credit for prior service • with the City of Okeechobee and such credit shall count for all purposes, including vesting. 5. In no event, however, may Credited Service be purchased pursuant to this Section for prior service with any other municipal, county or special district Page 7 of 8 fire department, if such prior service forms or will form the basis of a retirement benefit or pension from a different employer's retirement system or plan as set forth in Section 15, subsection 8.B. • SECTION 9: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Okeechobee. SECTION 10: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 11: 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 12: That this Ordinance shall become effective upon adoption. INTRODUCED on first reading and set for public hearing this 17th day of June, 2003. , G James E. Kirk, Mayor • ATTEST: Lane Gamiotea, City Clerk PASSED on second and final reading this 15th day of July, 2003. /' James E. Kirk, Mayor ATTEST: 1 Lane Gamiotea, City Clerk REVIEWED FOR LEGAL SUFFICIENCY: John R. Cook, City Attorney • Page 8 of 8