Loading...
0948 PO Pension Fund ORDINANCE NO. 948 • AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE CITY OF OKEECHOBEE MUNICIPAL POLICE OFFICERS' PENSION TRUST FUND, ADOPTED PURSUANT TO ORDINANCE 888; AMENDING SECTION 1, DEFINITIONS, BY AMENDING THE DEFINITION OF "CREDITED SERVICE"; AMENDING SECTION 10, OPTIONAL FORMS OF BENEFITS; AMENDING SECTION 16, DISTRIBUTION OF BENEFITS; AMENDING SECTION 26, DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; AMENDING SECTION 28, DEFERRED RETIREMENT OPTION PLAN; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA: SECTION 1: That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, adopted pursuant to Ordinance No. 888, is hereby amended by amending Section 1, Definitions, by amending the definition of "Credited Service", to read as follows: Credited Service means the total number of years and fractional parts of years of service as a Police Officer with Member contributions when required, omitting intervening years or fractional parts of years when such Member was not employed by the City as a Police Officer. A Member may voluntarily leave his Accumulated Contributions in the Fund for a period of five (5)years after leaving the employ of the Police Department pending the possibility of being reemployed as a Police Officer, without losing credit for the time that he was a Member of the System. If a vested Member leaves the employ of the Police Department, his Accumulated Contributions will be returned only upon his written request. If a Member who is not vested is not reemployed as a Police Officer with the Police Department within five (5) years, his Accumulated Contributions, if one-thousand dollars ($1,000.00) or less, shall be returned. If a Member who is not vested is not reemployed within five (5) years, his Accumulated Contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon the written request of the Member and upon completion of a written election to receive a cash lump sum or to rollover the lump sum amount on forms designated by the Board. Upon return of a Member's Accumulated Contributions, all of his rights and benefits under the System are forfeited and terminated. Upon any reemployment, a Police Officer shall not receive credit for the years and • fractional parts of years of service for which he has withdrawn his Accumulated Contributions from the Fund, unless the Police Officer repays into the Fund the 1 contributions he has withdrawn, with interest, as determined by the Board, within ninety (90) days after his reemployment. The years or fractional parts of years that a Member 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 Police Officer with the City to perform training or service, shall be added to his years of Credited Service, for all purposes, including vesting, provided that: A. The Member must return to his employment as a Police Officer within one (1)year from the earlier of the date of his military discharge or his release from active service. B. The Member is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L.103-353). C. The maximum credit for military service pursuant to this paragraph shall be five (5) years. SECTION 2: That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, adopted pursuant to Ordinance No. 888, is hereby amended by amending Section 10, Optional Forms of Benefits, subsection 1.A. to read as follows: 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 monthly amount, payable to the Retiree during the lifetime of the Retiree and following the death of the Retiree, one hundred percent (100%), seventy-five percent (75%), sixty-six and two-thirds percent (66 2/3%) or fifty percent (50%) of such monthly amount payable to a joint pensioner for his lifetime. • , ; - - - - : - - - - - . Except where the Retiree's joint pensioner is his spouse, the payments to the joint pensioner as a percentage of the payments to the Retiree shall not exceed the 2 applicable percentage provided for in the applicable table in the Treasury regulations. 410 * * * SECTION 3: That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, adopted pursuant to Ordinance No. 888, is hereby amended by amending Section 16, Distribution of Benefits, to read as follows: SECTION 16. MINIMUM DISTRIBUTION OF BENEFITS. - - - • - - - • - - - - - - - - - - - - - - - - - : - ::': : , - - : - ':: : : : : - 'U ; - • - - : - - - - - - 4111 - - 1 - - _ - • - • U ' - 6 - 66 - 6 - - - : - 6 : - . : - : - - - 3 - .. - - - - - - :'- ':. - need not begin before the date on which 1. General Rules. A. Effective Date. The provisions of this Section will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. B. Precedence. The requirements of this Section will take precedence over any inconsistent provisions of the Plan. C. Requirements of Treasury Regulations Incorporated. All distributions required under this Section will be determined and made in accordance with the Treasury regulations under Section 401(a)(9) of the Code. D. TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Section other than this subsection 1.D., distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act(TEFRA)and the provisions of the plan that related to Section 242(b)(2) of TEFRA. 2. Time and Manner of Distribution. A. Required Beginning Date. The Member's entire interest will be distributed, or begin to be distributed,to the Member no later than the Member's required beginning date which shall not be later than April 1 of the calendar year following the later of the calendar year in which the Member attains age seventy and one-half(70 '/2) or the calendar year in which the Member retires unless otherwise provided for in the Plan or required by law. B. Death of Member Before Distributions Begin. If the Member dies before distributions begin, the Member's entire interest will be distributed, or begin to be distributed no later than as follows: 4 (1) If the Member's surviving spouse is the Member's sole designated beneficiary, then distributions to the surviving • spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Member died, or by December 31 of the calendar year in which the Member would have attained age 70 1/2, if later. (2) If the Member's surviving spouse is not the Member's sole designated beneficiary, then, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Member died. (3) If there is no designated beneficiary as of September 30 of the year following the year of the Member's death, the Member's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Member's death. (4) If the Member's surviving spouse is the Member's sole designated beneficiary and the surviving spouse dies after the Member but before distributions to the surviving spouse begin, this subsection 2.B., other than subsection 2.B.(1), will apply as if the surviving spouse were the Member. For purposes of this subsection 2.B. and subsection 5., distributions are considered to begin on the Member's required beginning date or., if subsection 2.B.(4) applies, the date of distributions are required to begin to the surviving spouse under subsection 2.B.(1). If annuity payments irrevocably commence to the Member before the Member's required beginning date (or to the Member's surviving spouse before the date distributions are required to begin to the surviving spouse under subsection 2.B.(1)), the date distributions are considered to begin is the date distributions actually commence. C. Form of Distribution. Unless the Member's interest is distributed in • the form of an annuity purchased from an insurance company or in a 5 single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance of subsections 3, 4 and 5 of this Section. If the Member's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and Treasury regulations. Any part of the Member's interest which is in the form of an individual account described in Section 414(k) of the Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Code and Treasury regulations that apply to individual accounts. 3. Determination of Amount to be Distributed Each Year. A. General Annuity Requirements. If the Member's interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements: (1) The annuity distributions will be paid in periodic payments made at intervals not longer than one year. (2) The distribution period will be over a life (or lives) or over a period certain not longer than the period described in subsection 4 or 5. (3) Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted. (4) Payments will either be nonincreasing or increase only as follows: (a) By an annual percentage increase that does not exceed the cumulative annual percentage increase in a cost-of- living index that is based on prices of all items and issued by the Bureau of Labor Statistics or by a fixed annual increase of five percent or less. (b) To the extent of the reduction in the amount of the Member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period. 6 described in subsection 4 dies or is no longer the Member's beneficiary pursuant to a qualified domestic • relations order within the meaning of Section 414(p). To provide cash refunds of Accumulated Contributions upon the Member's death. (d) To pay increased benefits that result from a Plan amendment. B. Amount Required to be Distributed by Required Beginnin• Date. The amount that must be distributed on or before the Member's required beginning date (or, if the Member dies before distributions begin, the date distributions are required to begin under subsection 2.B.) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi- monthly, monthly, semi-annually, or annually. All of the Member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the Member's required'beginning date. C. Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the Member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. 4. Requirements for Annuity Distributions That Commence During a Member's Lifetime. A. Joint Life Annuities Where the Beneficiary Is Not the Member's Spouse. If the Member's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the Member and a nonspouse beneficiary, annuity payments to be made on or after the Member's required beginning date to the designated beneficiary after the Member's death must not at any time exceed the applicable • percentage of the annuity payment for such period that would have 7 been payable to the Member using the table set forth in Q&A-2 of Section 1.401(a)(9)-6T of the Treasury regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the Member and a nonspouse beneficiary and a period certain annuity, the requirements in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain. B. Period Certain Annuities. Unless the Member's spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the Member's lifetime may not exceed the applicable distribution period for the Member under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the Member reaches age 70, the applicable distribution period for the Member is the distribution period for age 70 under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the Member as of the Member's birthday in the year that contains the annuity starting date. If the Member's spouse is the Member's sole designated beneficiary and the form of distribution is a period certain and no life annuity,the period certain may not exceed the longer of the Member's applicable distribution period, as determined under this subsection 4.B., or the joint life and last survivor expectancy of the Member and the Member's spouse as determined under the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations, using the Member's and spouse's attained ages as of the Member's and spouse's birthdays in the calendar year that contains the annuity starting date. 5. Requirements for Minimum Distributions Where Member Dies Before Date Distributions Begin. A. Member Survived by Designated Beneficiary. If the Member dies before the date distribution of his or her interest begins and there is 8 a designated beneficiary, the Member's entire interest will be distributed, beginning no later than the time described in subsection • 2.B.(1) or 2.B.(2), over the life of the designated beneficiary or over a period certain not exceeding; (1) Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar year of the Member's death. If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year the contains the annuity starting date. B. No designated Beneficiary. If the Member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Member's death, distribution of the Member's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Member's death. C. Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the Member dies before the date distribution of his interest begins, the Member's surviving spouse is the Member's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin,this subsection 5 will apply as if the surviving spouse were the Member, except that the time by which distributions must begin will be determined without regard to subsection 2.B.(1). 6. Definitions. A. Designated Beneficiary. The individual who is designated as the beneficiary under the Plan and is the designated beneficiary under Section 40I(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations. • 9 B. Distribution Calendar Year. A calendar year for which a minimum distribution is required. For distributions beginning before the Member's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Member's required beginning date. For distributions beginning after the Member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to subsection 2.B. C. Life Expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations. D. Required Beginning Date. The date specified in subsection 2.A. SECTION 4: That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, adopted pursuant to Ordinance No. 888, is hereby amended by amending Section 26, Direct Transfers of Eligible Rollover Distributions, by adding subsection 3., Elimination of Mandatory Distributions, to read as follows: SECTION 26. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; ELIMINATION OF MANDATORY DISTRIBUTIONS. 3. Elimination of Mandatory Distributions. Notwithstanding any other provision herein to the contrary, in the event this Plan provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by law, for an amount in excess of one-thousand dollars ($1,000.00), such distribution shall be made from the Plan only upon written request of the Member and completion by the Member of a written election on forms designated by the Board,to either receive a cash lump sum or to rollover the lump sum amount. SECTION 5: That the City of Okeechobee Municipal Police Officers' Pension Trust Fund, adopted pursuant to Ordinance No. 888, is hereby amended by amending Section 28, Deferred Retirement Option Plan, subsection 4., Distribution of DROP Accounts on Termination of Employment, to read as follows: 10 SECTION 28. DEFERRED RETIREMENT OPTION PLAN. * 4. Distribution of DROP Accounts on Termination of Employment. A. Eligibility for Benefits. A Member shall receive the balance in his DROP Account in accordance with the provisions of this subsection 4. upon his termination of employment as a Police Officer. Except as provided in subsection 4.97E., no amounts shall be paid to a Member from the DROP prior to his termination of employment as a Police Officer. B. Form of Distribution. (1) Unless the Member elects otherwise, distribution of his DROP Account shall be made in a lump sum, subject to the direct rollover provisions set forth in subsection 4.6-F. A Member may, however, elect, in such time and manner as the Board shall prescribe,that his DROP distribution be used to purchase a nonforfeitable fixed annuity payable in such form as the Member may elect. Elections under this paragraph shall be in writing and shall be made in such time or manner as the Board shall determine. - (2) If a Member dies before his benefit is paid, his DROP Account shall be paid to his Beneficiary in such optional form as his Beneficiary may select. If no Beneficiary designation is made, the DROP Account shall be distributed to the Member's estate. C. Date of Payment of Distribution. (1) Except as otherwise provided in this subsection 4., distribution of a Member's DROP Account shall be made as soon as administratively practicable following the Member's termination of employment. Distribution of the amount in a Member's • DROP account will not be made unless the Member completes 11 a written request for distribution and a written election, on forms designated by the Board, to either receive a cash lump sum or a rollover of the lump sum amount. . : .i• •6 - ; ; - - - •- :. ;6 ; 6 - . :: . -, . • - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - 4.D. and 4.F. - - - • - - - - :.' - : . •61. .. - : - . - - ; ;_ - ••- - - - - - - ; ; . ; ,; - - ; . - - ;6 - ; - : one-half (70-1/2). In the event a Member is required to receive - - - - - - - - . - ; - - . -- ; - . -- ;; . -- - - ; - ; ; - ; - -•- - ;.• - ; • - - - . -- I - . -- 6; • -- - - - - - ; - : ; -- ;. - - - --:' - 6 - - - 26. C . - - - - - U. -•- ; . . _ . . _ D.E Proof of Death and Right of Beneficiary or Other Person. The Board may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the value of a deceased Member's DROP Account as the Board may deem proper and its determination of the right of that Beneficiary or other person to receive payment shall be conclusive. Distribution Limitation. Notwithstanding any other provision of this subsection 4., all distributions from the DROP shall conform to the "Minimum 12 Distribution Of Benefits" provisions as provided for herein. - • - - such regulations shall override any DROP provision that is • - - F.G Direct Rollover of Certain Distributions. This subsection applies to distributions made on or after January 1 , 2002. Notwithstanding any provision of the DROP to the contrary, a distributee may elect to have any portion of an eligible rollover distribution paid in a direct rollover as otherwise provided under the System in Section 26. SECTION 6: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Okeechobee. SECTION 7: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 8: 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 9: That this Ordinance shall become effective upon adoption. Introduced on first reading and set for public hearing this 2nd day of May , 2006. Ja PT E. Kirk, Ma r ATT ST: ( r) s Lane amiotea, ity Clerk Passed on second reading after public he • this 16th day of May , 2006. / • J , E. Kirk, Mayor ATT' ST: t}.,01/Le) 1-31(f L.ne I-amiotea, ity Clerk APO\ED FOR L • AL-SUFFICIENCY: • n R. Cook, City ttorney vaw\ok\pol\12-05-05.ord 13