0828 City & OUA Pension ORDINANCE NO. 828
• AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING AND
RESTATING THE CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY
AUTHORITY EMPLOYEES'RETIREMENT SYSTEM,AS SUBSEQUENTLY
AMENDED; PROVIDING FOR DEFINITIONS; PROVIDING FOR
MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING
FOR FINANCES AND FUND MANAGEMENT; PROVIDING FOR
CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND
ELIGIBILITY; PROVIDING FOR PRE-RETIREMENT DEATH BENEFITS;
PROVIDING FOR DISABILITY BENEFITS; PROVIDING FOR VESTING OF
BENEFITS; PROVIDING OPTIONAL FORMS OF BENEFITS; PROVIDING
FOR BENEFICIARIES; PROVIDING CLAIMS PROCEDURES; PROVIDING
FORA ROSTER OF RETIREES; PROVIDING FORA MAXIMUM PENSION
LIMITATION; PROVIDING FOR DISTRIBUTION OF BENEFITS;
PROVIDING MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL
OR TERMINATION OF THE SYSTEM; PROVIDING FOR EXEMPTION
FROM EXECUTION AND NON-ASSIGNABILITY; PROVIDING FOR
PENSION VALIDITY; PROVIDING FOR FORFEITURE OF PENSION
UNDER CERTAIN CIRCUMSTANCES; PROVIDING FOR
INDEMNIFICATION AND DEFENSE OF CLAIMS; PROVIDING FOR
PURCHASE OF CREDIT FOR MILITARY SERVICE PRIOR TO
EMPLOYMENT; PROVIDING FOR DIRECT TRANSFERS OF ELIGIBLE
ROLLOVER DISTRIBUTIONS; PROVIDING FOR RE-EMPLOYMENT
AFTER RETIREMENT; PROVIDING FOR THE ADOPTION OF PLAN BY
THE OKEECHOBEE UTILITY AUTHORITY; PROVIDING FOR THE
PURCHASE OF CREDIT FOR PRIOR GOVERNMENT SERVICE; PROVID-
ING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Okeechobee and the Okeechobee Utility Authority Employees are
presently provided pension and certain other benefits under Ordinances of the City
of Okeechobee and;
WHEREAS, the City Council desires to clarify and restate the provisions of the General
Employees' Retirement Plan to consolidate all prior ordinances and Code
provisions and to incorporate Federal law and the applicable State laws.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
OKEECHOBEE, FLORIDA:
SECTION 1: That the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System, is hereby amended and restated as set forth in the
document designated CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY
AUTHORITY EMPLOYEES' RETIREMENT SYSTEM, attached hereto and made
a part hereof.
SECTION 2: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 3: 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.
Page 1 of 2
SECTION 4: That this Ordinance shall become effective upon adoption.
• INTRODUCED on first reading and set for public hearing this 17th day of June,
2003.
1 s l
James E. Kirk, Mayor
ATTEST:
Lane Garniotea, City Clerk
PASSED on second reading after public hearing this 15th day of July, 2003.
• James/E. Kirk, Mayor
ATTEST:
Lane Gamiotea, City Clerk
APPROVED FOR LEGAL SUFFICIENCY:
John R. Cook, City Attorney
S
Page 2 of 2
CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY AUTHORITY
EMPLOYEES' RETIREMENT SYSTEM
• SECTION 1. DEFINITIONS.
1. As used herein, unless otherwise defined or required by the context, the
following words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions with
interest at the rate of five and one-quarter percent (5-1/4%) per annum
through September 30, 1993 and three percent (3%) per annum thereafter
compounded annually on September 30. Interest is not prorated on Member
contributions during a Plan Year. For those Members who purchase
Credited Service with interest or at no cost to the System,
Contributions 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 three percent
(3%) percent per annum.
-
- VV - : - ' : • : : - - - - . - ; - - -- I • • • - - . :: '" -- - - : : :: . - •
- - - - - - - - -
amended.
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 8% interest and the 1983
Group Annuity Mortality Table.
Average Final Compensation means one-twelfth(1/12)of the average Salary
of the five (5) best years of the last ten (10) years of Credited Service prior
to retirement, termination or death. A year shall be twelve (12) consecutive
months.
Beneficiary means the person or persons entitled to receive benefits
hereunder at the death of a Member who has or have been designated in
writing by the Member and filed with the Board. If no such designation is in
effect, or if no person so designated is living, at the time of death of the
Member, the Beneficiary shall be the estate of the Member.
Board means the Board of Trustees, which shall administer and manage the
System herein provided and serve as trustees of the Fund.
City means City of Okeechobee, Florida and the Okeechobee Utility
Authority.
Code means the Internal Revenue Code of 1986, as amended from time to
• time.
Credited Service means the total number of years and fractional parts of
years of service as a General Employee with member contributions when
required, omitting intervening years or fractional parts of years when such
Page 1 of 26
Member was not employed by the City as a General Employee. A Member
may voluntarily leave his Accumulated Contributions in the Fund for a period
of five (5) years after leaving the employ of the City pending the possibility
of being reemployed as a General Employee, without losing credit for the
time that he was a Member of the System. If a non-vested Member leaves
the employ of the City and is not reemployed within five (5) years, his
Accumulated Contributions will be returned. If the a vested Member leaves
the employ of the City, his Accumulated Contributions will be returned upon
his written request. Upon return of his Accumulated Contributions, all of his
rights and benefits under the System are forfeited and terminated.
The years or fractional parts of a year that a Member serves in the military
service of the Armed Forces of the United States, the United States
Merchant Marine or the United States Coast Guard, voluntarily or
involuntarily, after separation from employment as a General Employee with
the City to perform training or service, and reemployment on or after
December 12, 1994, shall be added to his years of Credited Service for all
purposes, including vesting, provided that:
A. The Member must return to his employment as a General Employee
within one (1) year from the earlier of the date of his military
discharge or his release from service.
B. The Member deposits into the Fund the same sum that the Member
would have contributed if he had remained a General Employee
during his absence. The Member must deposit all missed contribu-
tions within a period equal to three (3) times the period of military
service, but not more than five (5) years from the date of re-
employment or he will forfeit the right to receive Credited Service for
his military service pursuant to this Section.
C. The maximum credit for military service pursuant to this Section shall
be five (5) years.
D. The Member must have been discharged or released from service
under honorable conditions.
E. This Section is intended to satisfy the minimum requirements of the
Uniformed Services Employment and Reemployment Rights Act
(USERRA), (P.L. 103-353). To the extent that this Section does not
meet the minimum standards of USERRA, as it maybe amended from
time to time, the minimum standards shall apply.
Effective Date means - - a ; - a • -'- : a.
December 14, 1971. •
General Employee means any actively employed person in the regular full-
time service of the City of Okeechobee or the Okeechobee Utility Authority,
including those in their initial probationary employment period, but also
including elected officials. This term shall not include certified police officers
and certified firefighters employed by the City or the members of the
Okeechobee Utility Authority Board.
Fund means the trust fund established herein as part of the System.
Member means an actively employed General Employee who fulfills the
• prescribed membership requirements. Benefit improvements which, in the
past, have been provided for by amendments to the System adopted by City
ordinance, and any benefit improvements which might be made in the future
shall apply prospectively and shall not apply to Members who terminate
employment or who retire prior to the effective date of any ordinance
Page 2 of 26
adopting such benefit improvements, unless such ordinance specifically
provides to the contrary.
• Plan Year means the twelve (12) month period beginning October 1 and
ending September 30 of the following year.
Retiree means a Member who has entered Retirement Status.
Retirement means a Member's separation from City employment with
eligibility for immediate receipt of benefits under the System.
Salary means the basic compensation for services rendered to the City as
a General Employee, plus all tax deferred, tax sheltered and tax exempt
items of income, if otherwise includible as basic compensation, derived from
elective employee payroll deductions or salary reductions, but excluding
overtime, bonuses and any other non-regular payment. Compensation in
excess of the limitations set forth in Section 401(a)(17) of the Code shall be
disregarded. 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 was a Member before the first plan year beginning after December 31 ,
1995.
Spouse means the lawful wife or husband of a Member or Retiree at the time
benefits become payable.
System means the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System as contained herein and all amendments
thereto.
2. Masculine Gender.
The masculine gender, where used herein, unless the context specifically
requires otherwise, shall include both the feminine and masculine genders.
SECTION 2. MEMBERSHIP.
1 . Conditions of Eligibility.
All General Employees as of the Effective Date, and all future new General
Employees, shall become Members of this System as a condition of
employment.
Notwithstanding the previous paragraph, the current City Administrator and
any future City Administrator or Administrative Assistant and the current or
future Executive Director of the Okeechobee Utility Authority may, in the
event he has elected to participate in another pension program, within the
first sixty(60)days of his employment as City Administrator or Administrative
Assistant or Executive Director, notify the Board and the City of Okeechobee
(with respect to the City Administrator or Administrative Assistant) or the
Okeechobee Utility Authority (with respect to the Executive Director), in
writing, of his election to not be a Member of the System. In the event of any
such election, he shall be barred from future membership in the System.
Notwithstanding any provision herein to the contrary, the current City
Administrator as of April 1, 2001 may, in the event he has elected to
• participate in another pension program on or before June 1, 2001, notify the
Board and the City of Okeechobee, in writing, of his election to opt out of the
System. In the event of such election, the Board shall refund the
Accumulated Contributions to the City Administrator and he shall be barred
from future membership in the System.
Page 3 of 26
2. Designation of Beneficiary.
Each General Employee shall complete a form prescribed by the Board
• designating a Beneficiary or Beneficiaries.
SECTION 3. BOARD OF TRUSTEES.
1. The sole and exclusive administration of and responsibility for the proper
operation of the System and for making effective the provisions of this
ordinance are hereby vested in a Board of Trustees. The Board is hereby
designated as the plan administrator. The Board shall consist of five (5)
Trustees, one of whom, shall be a legal resident of the City, who shall be
appointed by the Okeechobee City Council, one of who shall be appointed
by the Okeechobee Utility Authority Board, one of whom shall be a full-time
General Employee Member employed by the City of Okeechobee, and one
of whom shall be a full-time General Employee Member employed by
Okeechobee Utility Authority. The fifth Trustee shall be chosen by a majority
of the previous four Trustees as provided for herein, and such person's
name shall be submitted to the Okeechobee City Council. Upon receipt of
the fifth person's name, the Okeechobee City Council shall, as a ministerial
duty, appoint such person to the Board of Trustees as its fifth Trustee. The
fifth Trustee shall have the same rights as each of the other four Trustees
appointed or elected as herein provided and shall serve a two (2) year term
unless he sooner vacates the office. Each resident Trustee appointed by the
City of Okeechobee or by the Okeechobee Utility Authority shall serve as
Trustee for a period of two (2) years, unless he sooner vacates the office or
is sooner replaced by the appointing authority at whose pleasure he shall
serve. Each Member Trustee shall serve as Trustee for a period of two (2)
years, unless he sooner leaves the employment of the City of Okeechobee
or Okeechobee Utility Authority as a General Employee or otherwise vacates
his office as Trustee, whereupon a successor shall be chosen in the same
manner as the departing Trustee. Each Trustee may succeed himself in
office. 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.
2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary.
The Secretary of the Board shall keep a complete minute book of the
actions, proceedings, or hearings of the Board. The Trustees shall not
receive any compensation as such, but may receive expenses and per diem
as provided by law.
3. Each Trustee shall be entitled to one vote on the Board. Three (3)
affirmative votes shall be necessary for any decision by the Trustees at any
meeting of the Board. A Trustee shall have the right to abstain from voting
as the result of a conflict of interest provided that Trustee complies with the
provisions of Section 112.3143, Florida Statutes.
4. The Board shall engage such actuarial, accounting, legal, and other services
as shall be required to transact the business of the System. The compensa-
tion of all persons engaged by the Board and all other expenses of the
Board necessary for the operation of the System shall be paid from the Fund
at such rates and in such amounts as the Board shall agree.
• 5. The duties and responsibilities of the Board shall include, but not necessarily
be limited to, the following:
A. To construe the provisions of the System and determine all questions
arising thereunder.
Page 4 of 26
B. To determine all questions relating to eligibility and membership.
C. To determine and certify the amount of all retirement allowances or
• other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters required
to administer the System.
E. To distribute to Members, at regular intervals, information concerning
the System.
F. To receive and process all applications for benefits.
G. To authorize all payments whatsoever from the Fund, and to notify
the disbursing agent, in writing, of approved benefit payments and
other expenditures arising through operation of the System and Fund.
H. To have performed actuarial studies and valuations at least as often
as required by law, and make recommendations regarding any and
all changes in the provisions of the System.
To perform such other duties as are required to prudently administer
the System.
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there ' exists the Fund, into
which shall be deposited all of the contributions and assets whatsoever
attributable to the System.
2. The actual custody and supervision of the Fund (and assets thereof) shall
be vested in the Board. Payment of benefits and disbursements from the
Fund shall be made by the disbursing agent but only upon written authoriza-
tion from the Board.
3. All funds of the system may be deposited by the Board with the Finance
Director of the City, acting in a ministerial capacity only, who shall be liable
in the same manner and to the same extent as he is liable for the safe-
keeping of funds for the City. However, any funds so deposited with the
Finance Director of the City shall be kept in a separate fund by the Finance
Director or clearly identified as such funds of the System. In lieu thereof, the
Board shall deposit the funds of the System in a qualified public depository
as defined in §280.02, Florida Statutes,which depository with regard to such
funds shall conform to and be bound by all of the provisions of Chapter 280,
Florida Statutes. In order to fulfill its investment responsibilities as set forth
herein, the Board may retain the services of a custodian bank, an investment
advisor registered under the Investment Advisors Act of 1940 or otherwise
exempt from such required registration, an insurance company, or a
combination of these, for the purposes of investment decisions and
management. Such investment manager shall have discretion, subject to
any guidelines as prescribed by the Board, in the investment of all Fund
assets.
4. All funds and securities of the System may be commingled in the Fund,
• provided that accurate records are maintained at all times reflecting the
financial composition of the Fund, including accurate current accounts and
entries as regards the following:
Page 5 of 26
A. Current amounts of Accumulated Contributions of Members on both
an individual and aggregate account basis, and
III B. Receipts and disbursements, and
C. Benefit payments, and
D. Current amounts clearly reflecting all monies, funds and assets
whatsoever attributable to contributions and deposits from the City,
and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear
and complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the
most recent fiscal year of the City System showing a detailed listing of
assets and a statement of all income and disbursements during the year.
Such income and disbursements must be reconciled with the assets at the
beginning and end of the year. Such report shall reflect a complete
evaluation of assets on both a cost and market basis, as well as other items
normally included in a certified audit.
6. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to said Fund, subject,
however, and in any event to the authority and power of the
Okeechobee City Council to amend or terminate this Fund, provided
that no amendment or Fund termination shall ever result in the use of
any assets of this Fund except for the payment of regular expenses
and benefits under this System, except as otherwise provided herein.
All contributions from time to time paid into the Fund, and the income
thereof, without distinction between principal and income, shall be
held and administered by the Board or its agent in the Fund and the
Board shall not be required to segregate or invest separately any
portion of the Fund.
B. All monies paid into or held in the Fund shall be invested and
reinvested by the Board and the investment of all or any part of such
funds shall be limited to:
(1) Annuity and life insurance contracts with life insurance
companies in amounts sufficient to provide, in whole or in part,
the benefits to which all of the Members in the Fund shall be
entitled under the provisions of this System and pay the initial
and subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank
insured by the Bank Insurance fund or a savings/building and
loan association insured Savings Association Insurance Fund
which is administered by the Federal Deposit Insurance
Corporation or a state or federal chartered credit union whose
share accounts are insured by the National Credit Union Share
Insurance Fund.
ID (3) Obligations of the United States or obligations guaranteed as
to principal and interest by the government of the United
States or the an agency of the government of the United
States.
Page 6 of 26
( (4) Stocks, commingled or mutual funds administered by national
• or state banks, bonds or other evidences of indebtedness
- - : - • • • ••:, :
• - - -: :: : 'S
exchange. , provided that:
Except as provided in subparagraph (b), all individually
held securities and all securities in a commingled or
mutual fund must be issued or guaranteed by a
corporation organized under the laws of the United
States, any state or organized territory of the United
States, or the District of Columbia.
(b) Up to fifteen percent (15%) of the assets of the Fund
may be invested in foreign securities.
(c) The Board shall not invest more than five percent (5%)
of its assets in the common stock, capital stock, or
convertible securities of any one issuing company, nor
shall the aggregate investment in any one issuing
company exceed five percent (5%) of the outstanding
capital stock of that company; nor shall the aggregate
of its investments in common stock, capital stock ,
international equity securities and convertible securities
at cost exceed sixty percent (60%) of the assets of the
Fund. • : -- : - - ; - • - - - : - - - - -
seetrrities.
C. At least once every three (3)years, and more often as determined by
the Board, the Board shall retain a professionally qualified
independent consultant to evaluate the performance of all current
investment managers and make recommendations regarding the
retention of all such investment managers. These recommendations
shall be considered by the Board at its next regularly scheduled
meeting.
D. The Board may retain in cash and keep unproductive of income such
amount of the Fund as it may deem advisable, having regard for the
cash requirements of the System.
E. Neither the Board or any Trustee shall be liable for the making,
retention or sale of any investment or reinvestment made as herein
provided, nor for any loss or diminishment of the Fund, except that
due to his or its own negligence, willful misconduct or lack of good
faith.
F. The Board may cause any investment in securities held by it to be
registered in or transferred into its name as Trustee or into the name
of such nominee as it may direct, or it may retain them unregistered
and in form permitting transferability, but the books and records shall
at all times show that all investments are part of the Fund.
G. The Board is empowered, but is not required, to vote upon any
stocks, bonds, or securities of any corporation, association, or trust
and to give general or specific proxies or powers of attorney with or
without power of substitution; to participate in mergers,
Page 7 of 26
reorganizations, recapitalization, consolidations, and similar transac-
tions with respect to such securities; to deposit such stock or other
securities in any voting trust or any protective or like committee with
• the Trustees or with depositories designated thereby; to amortize or
fail to amortize any part or all of the premium or discount resulting
from the acquisition or disposition of assets; and generally to exercise
any of the powers of an owner with respect to stocks, bonds, or other
investments comprising the Fund which it may deem to be to the best
interest of the Fund to exercise.
H. The Board shall not be required to make any inventory or appraisal
or report to any court, nor to secure any order of court for the exercise
of any power contained herein.
I. Where any action which the Board is required to take or any duty or
function which it is required to perform either under the terms herein
or under the general law applicable to it as Trustee under this
ordinance, can reasonably be taken or performed only after receipt
by it from a Member, the City, or any other entity, of specific informa-
tion, certification, direction or instructions, the Board shall be free of
liability in failing to take such action or perform such duty or function
until such information, certification, direction or instruction has been
received by it.
J. Any overpayments or underpayments from the Fund to a Member,
Retiree or Beneficiary caused by errors of computation shall be
adjusted with interest at a rate per annum approved by the Board in
such a manner that the Actuarial Equivalent of the benefit to which
the Member, Retiree or Beneficiary was correctly entitled to, shall be
paid. Over payment shall be charged against payments next
succeeding the correction or collected in another manner if prudent.
Underpayments shall be made up from the Fund in a prudent manner.
K. The Board shall sustain no liability whatsoever for the sufficiency of
the Fund to meet the payments and benefits herein provided for.
L. In any application to or proceeding or action in the courts, only the
Board shall be a necessary party, and no Member or other person
having an interest in the Fund shall be entitled to any notice or
service of process. Any judgment entered in such a proceeding or
action shall be conclusive upon all persons.
M. Any of the foregoing powers and functions reposed in the Board may
be performed or carried out by the Board through duly authorized
agents, provided that the Board at all times maintains continuous
supervision over the acts of any such agent; provided further, that
legal title to said Fund shall always remain in the Board.
SECTION 5. CONTRIBUTIONS.
1. Member Contributions.
A. Amount. Each Member of the System shall be required to make
regular contributions to the Fund in the amount of six percent (6%) of
his Salary. Member contributions withheld by the City on behalf of
the Member shall be deposited with the Board
• immediately after each pay period. The contributions made by each
Member to the Fund shall be designated as employer contributions
pursuant to §414(h) of the Code. Such designation is contingent
upon the contributions being excluded from the Members' gross
income for Federal Income Tax purposes. For all other purposes of
Page 8 of 26
the System, such contributions shall be considered to be Member
contributions.
• B. Method. Such contributions shall be made by payroll deduction.
2. City Contributions.
So long as this System is in effect, the City of Okeechobee and the
Okeechobee Utility Authority shall make quarterly contributions to the Fund
in an amount equal to the difference in each year, between the total
aggregate Member contributions for the year and the total cost for the year,
as shown by the most recent actuarial valuation of the System. The total
cost for any year shall be defined as the total normal cost plus the additional
amount sufficient to amortize the unfunded past service liability
• • .
- - - - - '• - = ; - • - • - - -- • - - • - as provided in Part VII of Chapter
112, Florida Statutes. The total cost for any year shall be apportioned
equitably and consistently between the City of Okeechobee and the
Okeechobee Utility Authority based on the costs associated with each
entity's employees.
3. Other.
Private donations, gifts and contributions may be deposited to the Fund, but
such deposits must be accounted for separately and kept on a segregated
bookkeeping basis. Funds arising from these sources may be used only for
additional benefits for Members, as determined by the Board, and may not
be used to reduce what would have otherwise been required City contribu-
tions.
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY.
1. Normal Retirement Date.
A Member's normal retirement date shall be the first day of the month
coincident with, or next following the earlier of the attainment of age sixty-
five (65) and the completion of five (5)years of Credited Service or upon the
completion of thirty (30) years of Credited Service, regardless of age. A
Member may retire on his normal retirement date or on the first day of any
month thereafter, and each Member shall become 100% vested in his
accrued benefit on the Member's normal retirement date. Normal retirement
under the System is Retirement from employment with the City on or after
the normal retirement date.
2. Normal Retirement Benefit.
A Member retiring hereunder on or after his normal retirement date shall
receive a monthly benefit which shall commence on the first day of the month
coincident with or next following his Retirement and be continued thereafter
during Member's lifetime, ceasing upon death, but with one hundred twenty
(120) monthly payments guaranteed in any event. The monthly retirement
benefit shall equal two and one-tenth percent (2.1%) of Average Final
Compensation, for each year of Credited Service.
3. Early Retirement Date.
• A Member may retire on his early retirement date which shall be the first day
of any month coincident with or next following the later of the attainment of
age fifty-five (55) and the completion of ten (10) years of Credited Service.
Early retirement under the System is Retirement from employment with the
City on or after the early retirement date and prior to the normal retirement
Page 9 of 26
date.
4. Early Retirement Benefit.
• A member retiring hereunder on his early retirement date may receive either
a deferred or an immediate monthly retirement benefit payable in the same
form as for normal retirement as follows:
A. A deferred monthly retirement benefit which shall commence at age
sixty-five (65) and shall be continued on the first day of each month
thereafter. The amount of each such deferred monthly retirement
benefit shall be determined in the same manner as for retirement on
his normal retirement date except that Credited Service and Average
Final Compensation shall be determined as of his early retirement
date; or
B. An immediate monthly retirement benefit which shall commence on
his early retirement date and shall be continued on the first day of
each month thereafter. The benefit payable shall be as determined
in paragraph A above, which is reduced by two percent (2%)for each
year by which the commencement of benefits precedes age sixty-five
(65).
SECTION 7. DEATH BENEFITS.
1. Prior to Vesting or Eligibility for Retirement.
The Beneficiary of a deceased Member who was not receiving monthly
benefit payments, or who was not yet vested or eligible for retirement shall
receive a refund of one hundred percent (100%) of the Member's
Accumulated Contributions.
2. Deceased Members Vested or Eligible for Retirement.
Any member, whether or not still actively employed, who has a right to a
vested accrued benefit, shall be eligible for a death benefit if he dies before
collecting any other benefits from this System. The amount of the death
benefit shall be equal to fifty percent (50%) of the actuarially equivalent
single sum value of the Member's vested accrued benefit or his Accumulated
Contributions, whichever is greater.
If this single sum value is less than $5,000, it shall be paid in a lump sum.
If the value exceeds $5,000, the Beneficiary may elect payment under any
of the optional forms available for retirement benefits or a lump sum
payment.
If a Member is eligible for early or normal retirement, but remains in
employment and dies while so employed, the death benefit shall be
determined as follows: It shall be assumed that such deceased Member had
retired immediately preceding his date of death and elected the Ten Year
Certain and Life Thereafter option. However, the death benefit shall be
equal to fifty percent (50%) of the actuarially equivalent single sum value of
the Member's vested accrued benefit, if larger than the Ten Year Certain and
Life Thereafter option, described earlier in this Section.
SECTION 8. DISABILITY.
• 1. Disability Benefits.
Any Member who shall become totally and permanently disabled to the
extent that he is unable, by reason of a medically determinable physical or
Page 10 of 26
mental impairment, to perform the duties that the General Employee was
assigned at the time of the impairment and is unable to perform the duties
of another General Employee position which the City of Okeechobee or the
• Okeechobee Utility Authority makes available to him in a similar job
classification and rank at no reduction in Salary for which the General
Employee is qualified by reason of training, education, or experience,
whether or not such disability was directly caused by the performance of his
duty as a General Employee. Upon establishing the same to the satisfaction
of the Board, the General Employee shall be entitled to a monthly pension
determined in the same manner as for Early Retirement set forth in Section
6, subsection 4.B, if the benefit begins at or after age fifty-five (55), and if the
benefit begins prior to age fifty-five (55), the benefit shall be actuarially
reduced for the period prior to age fifty-five (55). Terminated persons, either
vested or non-vested, are not eligible for disability benefits, except that those
terminated by the City for medical reasons may apply for a disability within
thirty (30) days after termination.
2. Conditions Disqualifying Disability Benefits.
Each Member who is claiming disability benefits shall establish, to the
satisfaction of the Board, that such disability was not occasioned primarily
by:
A. Excessive or habitual use of any drugs, intoxicants, or alcohol.
B. Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed
Forces.
E. Injury or disease sustained after his employment as a General
Employee with the City Okeechobee or the Okeechobee Utility
Authority shall have terminated.
F. Willful, wanton or intentional misconduct or gross negligence of the
Member.
G. Injury or disease sustained by the Member while working for anyone
other than the City of Okeechobee or the Okeechobee Utility
Authority and arising out of such employment.
H. A condition pre-existing the General Employee's membership in the
System. No Member shall be entitled to a disability pension because
of or due to the aggravation of a specific injury, impairment or other
medical condition pre-existing at the time of membership in the
System, provided that such pre-existing condition and its relationship
to a later injury, impairment or other medical condition be established
by competent substantial evidence. Nothing herein shall be
construed to preclude a disability pension to a Member who, after
membership in the System, suffers an injury, impairment or other
medical condition different from some other injury, impairment, or
other medical condition existing at or prior to said membership.
• 3. Physical Examination 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
Page 11 of 26
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
General Employee, the Board shall recommend to the City that the Retiree
be returned to performance of duty as a General Employee, and the Retiree
so returned shall enjoy the same rights that he 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 General Employee, his service shall be deemed to have been continuous,
and the period for which Retiree 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 General Employee within thirty (30) days
from the date the Board determines that the Retiree is no longer permanently
and totally disabled to the extent that he is unable to render useful and
efficient service as a General Employee, the Member's future benefits shall
be determined as though he initially terminated employment on the date the
Board determined that he was permanently and totally disabled to the extent
that he was unable to render useful and efficient service as a General
Employee.
The Board shall have the power and authority to make the final decisions
regarding all disability claims.
5. Disability Payments.
The monthly benefit to which a Member is entitled in the event of the
Member's disability retirement shall be payable on the first day of the first
month after the Board determines such entitlement. However, the monthly
retirement income shall be payable as of the date the Board determined
such entitlement, and any portion due for a partial month shall be paid
together with the first payment. The last payment will be:
A. If the Retiree recovers from the disability prior to his normal
retirement date, the payment due next preceding the date of such
recovery, or
B. If the Retiree dies without recovering from disability or attains his
• normal retirement date while still disabled, the payment due next
preceding his death or the 120th monthly payment,whichever is later.
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
Page 12 of 26
as described in Section 10, subsection 1.A. or 1.B., which shall be the
Actuarial Equivalent of the normal form of benefit.
• 6. Workers' Compensation.
When a Retiree is receiving a disability pension and workers' compensation
benefits pursuant to Florida Statute Chapter 440, for the same disability, and
the total monthly benefits received from both exceed 100% of the Member's
average monthly wage, as defined in Chapter 440, Florida Statutes, the
disability pension benefit shall be reduced so that the total monthly amount
received by the Retiree does not exceed 100% of such average monthly
wage. The amount of any lump sum workers' compensation payment shall
be converted to an equivalent monthly benefit payable for ten (10) Years
Certain by dividing the lump sum amount by 83.9692.
SECTION 9. VESTING.
If a Member terminates his employment as a General Employee, either voluntarily
or by discharge, and is not eligible for any other benefits under this System, the
Member shall be entitled to the following:
1. If the Member has less than five (5) years Credited Service upon termina-
tion, the Member shall be entitled to a refund of his Accumulated
Contributions or the Member may leave it deposited with the Fund.
2. If the Member has five (5) or more years of Credited Service upon
termination, the Member shall be entitled to a monthly retirement benefit,
determined in the same manner as for normal or early retirement and based
upon the Member's Credited Service, Average Final Compensation and the
benefit accrual rate as of the date of termination, payable to him commenc-
ing at age 65, or age 55 reduced as for early retirement from age 65,
provided he does not elect to withdraw his Accumulated Contributions and
provided the Member survives to his otherwise normal or early retirement
date. If the Member does not withdraw his Accumulated Contributions and
does not survive to his otherwise normal or early retirement date, his
designated Beneficiary shall be entitled to a benefit as provided herein for
a deceased Member, vested or eligible for Retirement under Pre-Retirement
Death.
SECTION 10. OPTIONAL FORMS OF BENEFITS.
1. In lieu of the amount and form of retirement income payable in the event of
normal or early retirement as specified herein, a Member, upon written
request to the Board may elect to receive a retirement income or benefit of
equivalent actuarial value payable in accordance with one of the following
options:
A. A retirement income of a modified monthly amount, payable to the
Member during the lifetime of the Member and following the death of
the Member, 100%, 75%, 66-2/3% or 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.
• B. A retirement income of a modified monthly amount for the lifetime of
the Member only.
C. If a Member retires prior to the time at which social security benefits
are payable, he may elect to receive an increased retirement benefit
Page 13 of 26
until such time as social security benefits shall be assumed to
commence and a reduced benefit thereafter in order to provide, to as
great an extent as possible, a more level retirement allowance during
• the entire period of Retirement. The amounts payable shall be as
recommended by the actuaries for the System, based upon the social
security law in effect at the time of the Member's Retirement. This
option may be combined with other optional forms of benefits.
2. The Member, upon electing any option of this Section,will designate the joint
pensioner (subsection 1.,A. above) or Beneficiary (or Beneficiaries) to
receive the benefit, if any, payable under the System in the event of
Member's death, and will have the power to change such designation from
time to time. Such designation will name a joint pensioner or one or more
primary Beneficiaries where applicable. If a Member has elected an option
with a joint pensioner or Beneficiary and Member's retirement income
benefits have commenced, Member may thereafter change his designated
Beneficiary at any time, but may change his joint pensioner only if the
designated joint pensioner and the Member were married at the time of
Member's Retirement and are divorced subsequent thereto and the joint
pensioner is alive at the time of the change.
3. The consent of a Member's or Retiree's joint pensioner or Beneficiary to any
such change shall not be required. The rights of all previously-designated
Beneficiaries to receive benefits under the System shall thereupon cease.
4. Upon change of a Retiree's joint pensioner in accordance with
this Section, the amount of the retirement income payable to the Retiree
shall be actuarially determined to take into account the age and sex of the
former joint pensioner, the new joint pensioner and the Retiree. Any such
Retiree shall pay the actuarial recalculation expenses. Each request for a
change will be made in writing on a form prepared by the Board and on
completion will be filed with the Board. In the event that no designated
Beneficiary survives the Retiree, such benefits as are payable in the event
of the death of the Retiree subsequent to his Retirement shall be paid as
provided in Section 11.
5. Retirement income payments shall be made under the option elected in
accordance with the provisions of this Section and shall be subject to the
following limitations:
A. If a Member dies prior to his normal retirement date or early
retirement date, whichever first occurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will
be determined under Section 7.
B. If the designated Beneficiary(or Beneficiaries)or joint pensioner dies
before the Member's retirement under the System, the option elected
will be canceled automatically and a retirement income of the normal
form and amount will be payable to the Member upon his Retirement
as if the election had not been made, unless a new election is made
in accordance with the provisions of this Section or a new Beneficiary
is designated by the Member prior to his Retirement.
C. If both the retired Member and the Beneficiary (or Beneficiaries)
designated by Member or Retiree die before the full payment has
been effected under any option providing for payments for a period
• certain and life thereafter, made pursuant to the provisions of
subsection 1, the Board may, in its discretion, direct that the
commuted value of the remaining payments be paid in a lump sum
and in accordance with Section 11.
Page 14 of 26
D. If a Member continues beyond his normal retirement date pursuant to
the provisions of Section 6, subsection 1, and dies prior to his actual
retirement and while an option made pursuant to the provisions of this
• Section is in effect, monthly retirement income payments will be
made, or a retirement benefit will be paid, under the option to a
Beneficiary (or Beneficiaries) designated by the Member in the
amount or amounts computed as if the Member had retired under the
option on the date on which his death occurred.
6. A Retiree may not change his retirement option after the date of cashing or
depositing his first retirement check.
7. Notwithstanding anything herein to the contrary, the Board in its discretion,
may elect to make a lump sum payment to a Member or a Member's
Beneficiary in the event that the total commuted value of the remaining
monthly income payments to be paid do not exceed Five Thousand Dollars
($5,000.00). 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 11. BENEFICIARIES.
1. Each Member or Retiree may, on a form provided for that purpose, signed
and filed with the Board, designate a Beneficiary(or Beneficiaries)to receive
the benefit, if any, which may be payable in the event of his death. Each
designation may be revoked or changed by such Member or Retiree by
signing and filing with the Board a new designation-of-beneficiary form.
Upon such change, the rights of all previously designated Beneficiaries to
receive any benefits under the System shall cease.
2. If a deceased Member or Retiree failed to name a Beneficiary in the manner
prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by
a deceased Member or Retiree predeceases the Member or Retiree, the
death benefit, if any, which may be payable under the System with respect
to such deceased Member or Retiree, shall be paid to the estate of the
Member or Retiree and the Board, in its discretion, may direct that the
commuted value of the remaining monthly income benefits be paid in a lump
sum.
3. Any payment made to any person pursuant to this Section shall operate as
a complete discharge of all obligations under the System with regard to the
deceased Member and any other persons with rights under the System and
shall not be subject to review by anyone but shall be final, binding and
conclusive on all persons ever interested hereunder..
SECTION 12. CLAIMS PROCEDURES.
1. The Board shall establish administrative claims procedures to be utilized in
processing written requests ("claims"), on matters which affect the
substantial rights of any person ("Claimant"), including Members, Retirees,
Beneficiaries, or any person affected by a decision of the Board.
2. The Board shall have the power to subpoena and require the attendance of
witnesses and the production of documents for discovery prior to and at any
• proceedings provided for in the Board's claims procedures. The Claimant
may request in writing the issuance of subpoenas by the Board. A
reasonable fee may be charged for the issuance of any subpoenas not to
exceed the fees set forth in Florida Statutes.
Page 15 of 26
SECTION 13. ROSTER OF RETIREES.
The Secretary of the Board shall keep a record of all persons enjoying a pension
• under the provisions of this ordinance in which it shall be noted the time when the
pension is allowed and when the same shall cease to be paid. Additionally, the
Secretary shall keep a record of all Members employed by the City in such a
manner as to show the name, address, date of employment and date of termination
of employment.
et-her--advisors as the Board deems necessary.
SECTION 1-5 14. 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 $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:
(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 plan.
3. Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before
age 62, the $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
Internal Revenue Code, •• - • - - - - : - '. ,: : :, - - 6 -
• • •
IP. ::
pursuant to the provisions of §415(b) of the Code 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).
Page 16 of 26
B. 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.
• C. If the Member's retirement benefit becomes payable after age sixty-
five (65), for purposes of determining whether this benefit meets the
limitation set forth in Subsection 1 herein, such benefit shall be
adjusted so that it is actuarially equivalent to the benefit beginning at
age 65. This adjustment shall be made
- - - - - ; - : - - : -- : : - in accordance with
regulations promulgated by the Secretary of the Treasury or his
delegate.
4. Less than Ten Years of Service.
The maximum retirement benefits payable under this Section to any Member
who has completed less than ten (10)years of Credited Service with the City
shall be the amount determined under Subsection 1 of this Section multiplied
by a fraction, the numerator of which is the number of the Member's years
of Credited Service and the denominator of which is ten (10). 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.
5. $10,000 Limit.
Notwithstanding the foregoing, the retirement benefit payable with respect
to a Member shall be deemed not to exceed the limitations set forth in this
Section if the benefits payable, with respect to such Member under this
System and under all other qualified defined benefit pension plans to which
the City contributes, do not exceed $10,000 for the applicable Plan Year and
for any prior Plan Year and the City has not at any time maintained a quali-
fied defined contribution plan in which the Member participated.
: .
. :
- - •
• - - • - - ": - - - - 11 - - , - -
- :: ; - : :
- - - - - • • • - - ' -
• - - -' - - - - - ...
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.
Page 17 of 26
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 100 percent of his Average Final Compensation. However,
nothing contained in this Section shall apply to supplemental
retirement benefits or to pension increases attributable to cost-of-
living increases or adjustments.
B. No Member of the System shall be allowed to receive a retirement
benefit or pension which is in part or in whole based upon any service
with respect to which the Member is already receiving, or will receive
in the future, a retirement benefit or pension from another 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 4615. DISTRIBUTION OF BENEFITS.
Notwithstanding any other provision of this System to the contrary, a form of
retirement income payable from this System after the Effective Date of this
ordinance, shall satisfy the following conditions:
1. If the retirement income is payable before the Member's death,
A. It shall either be distributed or commence to the Member not later
than April 1 of the calendar year following the later of the calendar
year in which the Member attains age 70-1/2, or the calendar year in
which Member retires,
B. The distribution shall commence not later than the calendar year
defined above; and a), shall be paid over the life of the Member or
over the lifetimes of the Member and Spouse, issue or dependent, or
b), shall be paid over the period extending not beyond the life expect-
ancy of the Member and Spouse, issue or dependent.
Where a form of retirement income payment has commenced in accordance
with the preceding paragraphs and the Member dies before his entire
interest in the System has been distributed, the remaining portion of such
interest in the System shall be distributed no less rapidly than under the form
of distribution in effect at the time of the Member's death.
2. If the Member's death occurs before the distribution of his interest in the
System has commenced, Member's entire interest in the System shall be
distributed within five (5) years of Member's death, unless it is to be
distributed in accordance with the following rules:
A. The Member's remaining interest in the System is payable to his
Spouse, issue or dependent;
• B. The remaining interest is to be distributed over the life of the Spouse,
issue or dependent or over a period not extending beyond the life
expectancy of the Spouse, issue or dependent; and
Page 18 of 26
C. Such distribution begins within one year of the Member's death
unless the Member's Spouse shall receive the remaining interest in
which case the distribution need not begin before the date on which
• the Member would have attained age 70-1/2 and if the Spouse dies
before the distribution to the Spouse begins, this Section shall be
applied as if the Spouse were the Member.
SECTION 1--7 16. MISCELLANEOUS PROVISIONS.
1. Interest of Members in System.
At no time prior to the satisfaction of all liabilities under the System with
respect to Members and their Spouses or Beneficiaries, shall any part of the
corpus or income of the Fund be used for or diverted to any purpose other
than for their exclusive benefit.
2. No Reduction of Accrued Benefits.
No amendment or ordinance shall be adopted by the City Council of the City
of Okeechobee which shall have the effect of reducing the then vested
accrued benefits of Members or a Member's Beneficiaries.
3. Qualification of System.
It is intended that the System will constitute a qualified pension plan under
the applicable provisions of the Code, 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.
SECTION 4-8 17. REPEAL OR TERMINATION OF SYSTEM.
1. This ordinance establishing the System and Fund, and subsequent
ordinances pertaining to said System and Fund, may be modified,
terminated, or amended, in whole or in part; provided that if this or any
subsequent ordinance shall be amended or repealed in its application to any
person benefiting hereunder, the amount of benefits which at the time of any
such alteration, amendment, or repeal shall have accrued to the Member or
Beneficiary shall not be affected thereby, except to the extent that the assets
of the Fund may be determined to be inadequate.
2. If this ordinance shall be repealed, or if contributions to the System are
discontinued, the Board shall continue to administer the System in
accordance with the provisions of this ordinance, for the sole benefit of the
then Members, any Beneficiaries then receiving retirement allowances, and
any future persons entitled to receive benefits under one of the options
provided for in this ordinance who are designated by any of said Members.
In the event of repeal, or if contributions to the System are discontinued,
• there shall be full vesting (100%) of benefits accrued to date of repeal and
the assets of the System shall be allocated in an equitable manner to
provide benefits on a proportionate basis to the persons so entitled in
accordance with the provisions thereof.
Page 19 of 26
3. The following shall be the order of priority for purposes of allocating the
assets of the System as of the date of repeal of this ordinance, or if contribu-
tions to the System are discontinued with the date of such discontinuation
• being determined by the Board.
A. Apportionment shall first be made in respect of each Retiree receiving
a retirement or disability benefit hereunder on such date, each person
receiving a benefit on such date on account of a retired or disabled
(but since deceased), Member and each Member who has, by such
date, become eligible for normal retirement but has not yet retired, an
amount which is the Actuarial Equivalent of such benefit, provided
that, if such asset value be less than the aggregate of such amounts,
such amounts shall be proportionately reduced so that the aggregate
of such reduced amounts will be equal to such asset value.
B. If there be any asset value remaining after the apportionment under
paragraph A, apportionment shall next be made in respect of each
Member in the service of the City on such date who is vested and who
is not entitled to an apportionment under paragraph A, in the amount
required to provide the Actuarial Equivalent, of the vested portion of
the accrued normal retirement benefit(but not less than Accumulated
Contributions), based on the Credited Service and Average Final
Compensation as of such date, and each vested former Member then
entitled to a deferred benefit who has not, by such date, begun
receiving benefit payments, in the amount required to provide said
Actuarial Equivalent of the vested portion of the accrued normal
retirement benefit, (but not less than Accumulated Contributions)
provided that, if such remaining asset value be less than the
aggregate of the amounts apportioned hereunder, such latter
amounts shall be proportionately reduced so that the aggregate of
such reduced amounts will be equal to such remaining asset value.
C. If there be any asset value after the apportionments under
paragraphs A and B, apportionment shall be made in respect of each
Member in the service of the City on such date who is not entitled to
an apportionment under paragraphs A and B in the amount equal to
Member's Accumulated Contributions, provided that, if such
remaining asset value be less than the aggregate of the amounts
apportioned hereunder such latter amount shall be proportionately
reduced so that the aggregate of such reduced amounts will be equal
to such remaining asset value.
D. If there be any asset value remaining after the apportionments under
paragraphs A, B, and C, apportionment shall lastly be made in
respect of each Member included in paragraph C above to the extent
of the Actuarial Equivalent of the non-vested portion of the accrued
normal retirement benefit, less the amount apportioned in paragraph
C, based on the Credited Service and Average Final Compensation
as of such date, provided that, if such remaining asset value be less
than the aggregate of the amounts apportioned hereunder, such
amounts shall be reduced so that the aggregate of such reduced
amounts will be equal to such remaining asset value.
E. In the event that there be asset value remaining after the full
apportionment specified in paragraphs A, B, C, and D, such excess
shall be returned to the City.
• The allocation of the Fund provided for in this Subsection may, as decided
by the Board, be carried out through the purchase of insurance company
contracts to provide the benefits determined in accordance with this
Subsection. The Fund may be distributed in one sum to the persons entitled
Page 20 of 26
to said benefits or the distribution may be carried out in such other equitable
manner as the Board may direct. The Fund may be continued in existence
for purposes of subsequent distributions.
• If, at any time during the first ten (10) years after the effective date of the
ordinance originally establishing this System,the System shall be terminated
or the full current costs of the System shall not have been met, anything in
the System to the contrary notwithstanding, City contributions which may be
used for the benefit of any one of the twenty-five (25) highest paid Members
on the effective date, whose anticipated annual retirement allowance
provided by the City's contributions at Member's normal retirement date
would exceed $1,500, shall not exceed the greater of either a) $20,000, or
b), an amount computed by multiplying the smaller of $10,000 or twenty
percent(20%)of such Member's average annual earnings during his last five
(5) years of service by the number of years of service since the effective
date. In the event that it shall hereafter be determined by statute, court
decision, ruling by the Commissioner of Internal Revenue, or otherwise, that
the provisions of this paragraph are not then necessary to qualify the System
under the Code, this paragraph shall be ineffective without the necessity of
further amendment of this ordinance.
4. After all the vested and accrued benefits provided hereunder have been paid
and after all other liabilities have been satisfied, then and only then shall any
remaining funds revert to the general fund of the City.
SECTION 1-918. EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY.
Except as otherwise provided by law, the pensions, annuities, or any other benefits
accrued or accruing to any person under the provisions of this ordinance and the
Accumulated Contributions and the cash securities in the Fund created under this
ordinance are hereby exempted from any state, county or municipal tax and shall
not be subject to execution, attachment, garnishment or any legal process
whatsoever and shall be unassignable.
SECTION 2019. PENSION VALIDITY.
The Board shall have the power to examine into the facts upon which any pension
shall heretofore have been granted under any prior or existing law, or shall
hereafter be granted or obtained erroneously, fraudulently or illegally for any
reason. The Board is empowered to purge the pension rolls or correct the pension
amount of any person heretofore granted a pension under prior or existing law or
any person hereafter granted a pension under this ordinance if the same is found
to be erroneous, fraudulent or illegal for any reason; and to reclassify any person
who has heretofore under any prior or existing law been or who shall hereafter
under this ordinance be erroneously, improperly or illegally classified. Any
overpayments or underpayments shall be corrected and paid or repaid in a
reasonable manner determined by the Board.
SECTION 21- 20. FORFEITURE OF PENSION.
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
Page 21 of 26
employee from employer;
C. Bribery in connection with the employment of a public officer or
• employee;
D. Any felony specified in Chapter 838, Florida Statutes.
E. The committing of an impeachable offense.
F. The committing of any felony by a public officer or employee who
willfully and with intent to defraud the public or the public agency, for
which he acts or in which he is employed, of the right to receive the
faithful performance of his duty as a public officer or employee,
realizes or obtains or attempts to obtain a profit, gain, or advantage
for himself or for some other person through the use or attempted use
of the power, rights, privileges, duties or position of his public office
or employment position.
2. Conviction shall be defined as an adjudication of guilt by a court of
competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of
guilty when adjudication of guilt is withheld and the accused is placed on
probation; or a conviction by the Senate of an impeachable offense.
3. Court shall be defined as any state or federal court of competent jurisdiction
which is exercising its jurisdiction to consider a proceeding involving the
alleged commission of a specified offense. Prior to forfeiture, the Board
shall hold a hearing on which notice shall be given to the Member whose
benefits are being considered for forfeiture. Said Member shall be afforded
the right to have an attorney present. No formal rules of evidence shall
apply, but the Member shall be afforded a full opportunity to present his case
against forfeiture.
4. Any Member who has received benefits from the System in excess of his
Accumulated Contributions after Member's rights were forfeited shall be
required to pay back to the Fund the amount of the benefits received in
excess of his Accumulated Contributions, but without interest. The Board
may implement all legal action necessary to recover such funds.
SECTION 22 21. INDEMNIFICATION.
1. To the extent not covered by insurance contracts in force from time to time,
the City shall indemnify, defend and hold harmless members of the Board
from all personal liability for damages and costs, including court costs and
attorneys' fees, arising out of claims, suits, litigation, or threat of same,
herein referred to as "claims", against these individuals because of acts or
circumstances connected with or arising out of their official duty as members
of the Board. The City reserves the right, in its sole discretion, to settle or
not settle the claim at any time, and to appeal or to not appeal from any
adverse judgment or ruling, and in either event will indemnify, defend and
hold harmless any members of the Board from the judgment, execution, or
levy thereon.
2. This Section shall not be construed so as to relieve any insurance company
or other entity liable to defend the claim or liable for payment of the judgment
or claim, from any liability, nor does this Section waive any provision of law
affording the City immunity from any suit in whole or part, or waive any other
• substantive or procedural rights the City may have.
3. This Section shall not apply nor shall the City be responsible in any manner
to defend or pay for claims arising out of acts or omissions of members of
the Board which constitute felonies or gross malfeasance or gross mis-
Page 22 of 26
feasance in office.
SECTION 23 22. TRANSFERS WITHIN THE CITY.
• If a member of any of the City's three retirement systems transfers to either of the
other two systems, he must choose one of the following procedures with regard to
Credited Service accrued to date of transfer.
1. The Member may take a refund of his Accumulated Contributions, in which
event no pension benefit shall be payable based on Credited Service
attributable to the period covered.
2. The member may leave his Accumulated Contributions in the fund in which
event his Credited Service with both systems shall be combined for purposes
of determining eligibility for benefits and for vesting. When the member is
eligible to receive a benefit, he shall receive benefits from both systems,
which shall consist of accrued benefits under each system based on the
provisions of the respective system and the earnings and Credited Service
under that system.
SECTION 24 23. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a General Employee serves or has
served on active duty in the active military service of the Armed Forces of the
United States, of 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 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 lump sum payment upon receipt of which Credited
Service shall be given.
4. The maximum credit under this Section shall be four (4) years.
5. Credited Service purchased pursuant to this section shall not count toward
vesting.
SECTION 25 24. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS.
1. Rollover Distributions.
• A. General. This Section applies to distributions made on or after
January 1, 1003 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
Page 23 of 26
distribution paid directly to an eligible retirement plan specified by the
distributee in a direct rollover.
• 27 B. Definitions.
A 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 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.
l7 (2) 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,
is an individual retirement account o
annuity.
E (3) 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.
B (4) 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
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
Page 24 of 26
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 26 25. REEMPLOYMENT AFTER RETIREMENT
Any Retiree who is receiving a normal or early retirement benefit from the System
and who is subsequently reemployed by either the City of Okeechobee or the
Okeechobee Utility Authority shall elect to:
1. Unless otherwise prohibited by law, continue to receive his retirement
benefit, but in such event he shall neither accrue additional Credited Service
nor be eligible for any other benefit under the System, except for the
retirement benefit he continues to receive, or;
2. Discontinue his retirement benefit and begin to accrue additional Credited
Service and be eligible for all other benefits under the System.
SECTION 2- 26. ADOPTION OF PLAN BY THE OKEECHOBEE UTILITY
AUTHORITY
Effective September 29, 1995, the Okeechobee Utility Authority shall adopt this City
of Okeechobee and Okeechobee Utility Authority Employees' Retirement System,
by Resolution, to provide benefits to full time employees of the Okeechobee Utility
Authority. For purposes of determining benefits under this system, employment by
the Okeechobee Utility Authority shall be treated in the same manner as, and have
the same effect as, employment by the City of Okeechobee, and there shall be no
lapse in plan membership or Credited Service due to transfers of employment
between the Okeechobee Utility Authority and the City of Okeechobee. Where
reference is made elsewhere in this document to"the City," such reference shall be
deemed to include the Okeechobee Utility Authority, unless clearly indicated
otherwise by context.
SECTION 27. PRIOR GOVERNMENT SERVICE.
Unless otherwise prohibited by law, the years or fractional parts of years that a
general employee who was previously a member, but who terminated employment
and is not otherwise entitled to credited service for such previous period of
employment as a general employee, or the years or fractional parts of years that a
member previously served as an employee for any governmental agency in the
United States, including but not limited to federal, state or local government service,
and for which he does not otherwise qualify for and receive credit under this
system, 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
Page 25 of 26
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 or her request for credit, but, in any event, prior to Retirement,
and shall be made in one lump sum payment upon receipt of which Credited
Service shall be given.
4. There shall be no maximum purchase of Credited Service pursuant to this
Section and Credited Service purchased 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 governmental agency, if such prior
service forms or will form the basis of a retirement benefit or pension from
another retirement system or plan as set forth in Section 14, subsection 8.B.
I
Page 26 of 26