1082 General/OUA Pension ORDINANCE NO. 1082
AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING THE CITY
OF OKEECHOBEE AND OKEECHOBEE UTILITY AUTHORITY
EMPLOYEES' RETIREMENT SYSTEM, ADOPTED PURSUANT TO
• ORDINANCE NO. 1053; AMENDING SECTION 1, DEFINITIONS;
AMENDING SECTION 4, FINANCES AND FUND MANAGEMENT;
PROVIDING FOR CODIFICATION; PROVIDING 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, it becomes necessary from time to time to amend said ordinances in order to
clarify or restate certain provisions of the ordinance, or to enact amendments to
comply with revised Federal regulations; and
WHEREAS, the amendment of this ordinance to change the definition of actuarial
equivalence, to change the percentage rate that future payments are discounted for
interest and mortality, as well as eliminating the requirement that commingled funds
and mutual funds be administered by national or state banks, will have no actuarial
impact on the plan; and
WHEREAS, such changes are recommended by the Pension Board of Trustees upon the
advise of the plan's Actuary.
NOW THEREFORE, be it ordained before the City Council of the City of Okeechobee,
Florida; presented at a duly advertised public meeting; and passed by majority vote
of the City Council; and properly executed by the Mayor or designee, as Chief
Presiding Officer for the City:
SECTION 1: That the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System,adopted pursuant to Ordinance No. 1053, is hereby
amended by amending Section 1, Definitions, to amend the definition of"Actuarial
Equivalent," to read as follows:
Actuarial Equivalent means that any benefit payable under the terms of this System
in a form other than the normal form of benefit shall have the same actuarial
present value on the date payment commences as the normal form of benefit. For
purposes of establishing the actuarial present value of any form of payment other
than a lump sum distribution, all future payments shall be discounted for interest
and mortality by using 8%seven percent (7.0%) interest and the 19831994 Group
Annuity Mortality Table. This definition may only be amended by the City pursuant
to the recommendation of the Board using assumptions adopted by the Board with
the advice of the plan's actuary, such that actuarial assumptions are not subject to
City discretion.
SECTION 2: That the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System, adopted pursuantto Ordinance No. 1053, is hereby
amended by amending Section 4, Finances and Fund Management, subsection
6.B.(4), to read as follows:
(4) Stocks, commingled or mutual funds, administered by national oF state
mss; bonds or other evidences of indebtedness, provided that:
(a) 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.
Ordinance No. 1082 - Page 1 of 2
(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.
SECTION 3: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Okeechobee.
SECTION 4: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 5: 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 6: That this Ordinance shall become effective upon adoption.
INTRODUCED on first reading and set for public hearing this 201h day of March, 2012.
J s E. Kirk, Mayor
--ATTEST:
Lane Glamiotea, City Verk
PASSED AND ADOPTED after Second and Final Public Hearing this 3'd day of April,
2012.
es E. Kirk, Mayor
ATTEST:
All, GAU-
Lane Gamiotea, City Cierk
APPROVED FOR LEGAL SUFFICIENCY:
John R. Cook, City Attorney
Ordinance No. 1082 - Page 2 of 2
,ar
DEPARTMENT OF MANAGEMENT
IUcK sc°Tr SERVICES JOHN P.MILES
Governor Secretary
March 27, 2012
Ms. Lane Gamiotia, City Clerk
City of Okeechobee
55 S.E. Third Avenue
Okeechobee, FL 34974-2903
RE: Notification of Receipt
Dear Ms. Gamiotia:
This letter acknowledges receipt of the following items:
• March 13, 2012 Actuarial Impact Statement for the City of Okeechobee Employees' and Utility
Authority Employees' Retirement System, prepared by Gabriel Roeder Smith & Company
• Ordinance No. 1082
• January 13, 2012 Actuarial Impact Statement for the City of Okeechobee Police Officers' Pension
Plan and Trust Agreement, prepared by Gabriel Roeder Smith & Company
• Ordinance 1083
• March 13, 2012 Actuarial Impact Statement for the City of Okeechobee Municipal Firefighters'
Pension Fund, prepared by Gabriel Roeder Smith & Company
• Ordinance 1084
Upon further review of this material, you will be notified if additional information is needed. Please feel
free to contact our office with arty questions or concerns you may have. You may also contact me by
e-mail, if more convenient.
Sincerely,
Barbara Lorberg
Staff Assistant
Bureau of Local Retirement Systems
barbara.lorberaCaD-dms.myflorida.com
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Department of Management Services I Division of Retirement I Bureau of Local Retirement Systems
P.O. Box 9000 1 Tallahassee, Florida 32315-9000
Toll Free:877-738-5622 1 Tel: 850-488-2784 1 Fax: 850-921-2161 1 Web: hftp://frs.myflorida.com