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0419 General Employees Pension■ ORDINANCE NO. 419 AN ORDINANCE OF THE CITY OF OKEECHOBEE, FLORIDA February, 1979 Revised March, 1980 • 1 ORDINANCE NO.`419- AN ORDINANCE OF THE CITY OF OKEECHOBEE, FLORIDA AN ORDINANCE AMENDING ORDINANCE NO. 352 SAID AMENDMENT PROVIDING FOR THE RETIRE- MENT OF GENERAL EMPLOYEES FOR THE CITY OF OKEECHOBEE; DEFINING CERTAIN TERMS; PRESCRIBING AND DEFINING CONDITIONS OF ELIGIBILITY; DEFINING AND PROVIDING RETIREMENT DATES AND BENEFITS; PROVIDING DISABILITY BENEFITS; PROVIDING DEATH BENEFITS; PROVIDING FOR FUNDING AND CONTRIBUTIONS TO THE PLAN; DEFINING AND AUTHORIZING POWERS OF THE BOARD OF TRUSTEES; CREATING TRUSTEES OF THE PLAN; PROVIDING FOR GENERAL ADMINISTRATION AND RESPONSIBILITY OF THE OPERATION OF THE RETIREMENT PLAN; PRESCRIBING CERTAIN RIGHTS TO HEARINGS AND REHEARINGS; PROVIDING FOR THE REPEAL OR TERMINATION OF THE SYSTEM; PROVIDING MISCELLANEOUS PROVISIONS AND AN EFFCTIVE DATE. WHEREAS, the City of Okeechobee present y has a Retirement System for its General employees, and WHEREAS, the City Council is desirous of amending said Retirement System, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA, that Ordinances No' 352 be amended so as to read as follows: Section I. DEFINITIONS. As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: A. City B. City Council means City of Okeechobee, Florida means the City Council of the City of Okeechobee, Florida. C. Agreement means this written instrument setting forth the provisions of the Retirement System. D. System means the City of Okeechobee Retirement System as contained herein and all amendments thereto. E. Fund or Trust means the Trust Fund established as part of the System. F. Board G. General Employee H. Member I. Continuous Service means the Board of Trustees, which shall administer and manage the System herein provided and serve as Trustee of the Fund. means any person other than a Police Officer or Fireman who is employed on a full time basis on or after January 1, 1980 means a General full time Employee, who fulfills the prescribed participation requirements. means uninterrupted service by a Member (years and completed months) whose cus- tomary employment is for more than twenty (20) hours per week and who is compensated for his services by a regular salary paid at periodic intervals, from the date such J. Earnings K. Average Monthly Earnings L. Beneficiary 2 Member last entered employment, until the date his employment shall be terminated by death, disability, retirement, resignation or discharge; provided, however, the con - tinous Service of a Member shall not be deemed to be interrupted by: 1. Any authorized leave of absence or paid vacation not in excess of six months, provided that all Members similarly situated in similar cir- cumstances shall be treated alike pursuant to uniform, non- discrimina- tory rules. 2. Any service, voluntary or involuntary in the Armed Forces of the United States, provided the Member is legally entitled to re- employment under Federal law applicable to such re- employment, and provided further, that said Member shall apply for re- employment within ninety (90) days following termination of such service. However, no credit for benefits under the System shall be allowed for any period on leave of absence or in military service in excess of six (6) months. means basic compensation paid by the City to a Member, but excluding overtime, bonuses and any other non - regular payment. means l /12th of the arithmetic average of annual Earnings for the highest consecutive five years of.the ten full years immediately preceding the actual retirement or termina- tion date of a Member; provided that if a Member shall have been employed for fewer than five years such average shall be taken only over the period of his actual employment. means the person or persons entitled to re- ceive 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 at the time of death of the Member, or if no person so designated is living at that time, or if no provision for an alternate or contingent beneficiary is otherwise pro- vided for in the Plan, or if no such alter- nate or contingent beneficiary is living at such time, the Beneficiary shall be the Member's estate. M. Accumulated Contributions means a Member's own contributions plus interest credited thereto. shall mean the lawful wife or husband of a Member. retroactive P. Effective Date means January 1, 1980 , the date on which this amended Retirement System became effective. N. Spouse 3 Section II. Membership A. Conditions of Eligibility 1. All persons employed or becoming employed by the City as General Employees shall become Members of the System on January 1st following attainment of age eighteen (18), provided, that no person shall be eligible for membership if he (she) has attained age fifty -six (56) on date of employment. 2. All persons eligible for membership may be required to complete a medi- cal examination as prescribed by the Board. Based upon medical evidence of a pre- existing adverse health condition, resulting from the prescribed examination or other records or medical history, the Board may declare any person or Member ineligible for disability benefits hereunder, as related to such pre- existing condition. The procedures followed shall be on a uniform, non discriminatory basis, with all Employees in similar situ- ations being treated alike. B. Application for Membership Each employee eligible for membership shall complete an application within sixty (60) days after an applicant's date of eligibility, the form of which shall cover the following points, as well as such other points or items as may be prescribed by the Board: 1. Acceptance of the terms and conditions of the System, including any dec- laration of ineligibility for disability benefits, and, 2. Designation of a Beneficiary or Beneficiaries, and, 3. Authorization of a five percent (5%) payroll deduction payable to the System, For purposes of Member contributions and for all benefits hereunder other than disability benefits, the Application for Membership shall be considered to have been in effect from date of employment, even though officially accepted and approved by the Board at a later date. For purposes of disability, however, an Employee shall be considered a Member and eligible for benefits hereunder only upon completion of all medical examination requirements and upon subsequent approval and formal acceptance of the Application for Membership by the Board. 4 C. Change in Designation of Beneficiary A Member may from time to time change his designated Beneficiary by written notice to the Board upon forms provided by the Board. Upon such change, the rights of all previously designated Beneficiaries to receive any benefit under the System shall cease. Section III RETIREMENT DATES AND BENEFITS A. Normal Retirement Date (1) A Member may retire on the first day of the month coincident with or next following that date on which such Member attains age sixty -five (65) and completes ten (10) years of Continuous Service. (2) In no event shall a Member retire on a date later than age seventy (70), unless the Board with the approval of the City Council, extends such Member's retirement date by written authorization, on a year -to -year basis. B. Normal Retirement Benefit (1) Amount The monthly retirement benefit shall be an amount equal to one and one half percent (lei) of Average: Monthly Earnings times years and completed months of Continuous Service with the City. (2) Duration (Normal Form of Benefit) A Member retiring hereunder on his Normal Retirement Date shall receive a monthly benefit which shall commence on his Normal Retirement Date and be continued thereafter during his lifetime but payable for ten (10) years certain in any event. C. Early Retirement Date A Member may retire on the first day of the month coincident with or next following the attainment of age sixty (60) and the comple- tion of ten (10) years of Continuous Service. D. Early Retirement Benefit A Member retiring hereunder on his Early Retirement Date may receive either a deferred or an immediate monthly retirement benefit as follows: (1) A deferred monthly retirement benefit which shall commence on his Normal Retirement Date and shall be continued on the first day of each month thereafter during his lifetime. The amount of the benefit shall be determined and paid in the same manner as for retirement at his Normal Retirement Date except that 5 Average Monthly Earnings and Continuous Service shall be deter- mined as of his Early Retirement Date, or (2) 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 during his lifetime. The benefit payable shall be as determined in subparagraph (1) above, re- duced by 1 /15th for each of the first five (5) years and 1 /30th for each of the next five (5) years by which the starting date of the benefits precedes the Normal Retirement Date. (3) The benefit formula applicable in all cases of Early Retire- ment, whether immediate or deferred, shall be that in effect on the Members employment termination date. E. Delayed Retirement Date The Delayed Retirement Date shall be that date following Normal Retirement :Date on which a Member actually retires. In no event shall a Member retire later than age seventy (70), unless the Board with the approval of the City Council extends such Member's retirement date by written authorization, on a year - to-year basis. There shall be no further accrual of benefits following age seventy (70). F. Delayed Retirement Benefit A Member retiring hereunder at his Delayed Retirement Date shall receive a monthly retirement benefit which shall commence on the first day of the month coincident with or next following such Delayed Retirement Date. The amount of each such monthly retire- ment benefit shall be determined in the same manner as for Normal Retirement Retirement except that Average Monthly Earnings and Continuous Service shall be determined as of the earlier of a Members 70th birth date or his actual retirement. The benefit shall be paid in the same form as for Normal Retirement. G. Coverage & Benefits Limited To General Employees Only No person shall qualify as a Member under this System or receive a benefit hereunder unless working for the City as a General Employee. In the event that a General Employee is reclassified and continues working for the City in a capacity other than a General Employee, such person shall no longer be eligible for coverage hereunder, and shall not accrue or be entitled to any benefits under this System for such period(s) of time that work is performed in a category other than as a General Employee 6 Section IV DISABILITY BENEFITS A. Eligibility Period The eligibility requirements for Service Incurred and Non - Service Incurred Disability benefits for Members shall be as follows: Service Incurred: Eligible from entry date as a Member of the System. Non - Service Incurred Eligible from entry date as a Member of the System. B. Disability Benefit - Duration Any Member otherwise eligible as stated above who receives a Service or Non - Service Incurred injury, illness, disease or disability, and which illness, injury, disease or disa- bility, permanently incapacitates him physically or mentally from further service with the City shall receive from the Fund a monthly benefit determined in the same maner as an immediate Early Retirement benefit, with actuarial reduction. Average Monthly Earnings and Continuous Service shall be de- termined as of the date on which such Disability occurred. The benefit shall commence on the 91st day following the date of disability and shall continue until the earlier of death or recovery from such disability. In the event of recovery prior to the otherwise Normal Retirement Date, credit for service during the period of disability shall be granted for purposes of subsequent retirement benefits. C. Determination of Disability -- Board Decision No disability shall be granted except upon approval of and certification by the Board of Trustees that such disability was service or non- service incurred, that such disability has been substantiated medically to the satisfaction of the board and that the Member cannot perform his regular duties. D. Other Available City Employment If the City of Okeechobee provides or makes available any City job or position which can be undertaken and performed by a Disability Retiree at any time during the period of disability, such job or position must be accepted and fulfilled by such Disability Retiree unless the Board, pursuant to established procedures, determines that such Disability Retiree is unable to perform such job or position. If such employment is not accepted by the Disability Retiree, the Board shall forthwith terminate all disability benefits until such time as such 7 alternative employment is accepted. If such employment is accepted the disability benefit shall be reduced by fifty percent (50%) of the amount payable, provided that in no event shall the disability benefit be reduced to a level where the resulting total monies payable to the Disability Retiree (disability payment plus employment compensation) be less than seventy percent (70 %) of the earnings in effect for such Retiree at the time of the occurence from whence the disability arose. Provided further, any job or position offered to a disabled retiree shall constitute employment commensurate with the ability of and the previous position occupied by such dis- ability retiree. No Member or former Member shall be forced or required to fulfill a position, job or employment of any type with the City which would fail to recognize the prior established ability and position of such disabled person. In the event of an irreconcilable situation arising as a re- sult of an unsuitable position being offered to a disabled retiree, such retiree may, upon application, have the matter finally resolved by the City Council and the decision of the City Council in any such case to be final and binding on both the disabled retiree, the City of Okeechobee, and the Board of Trustees of the Retirement System. E. Required Re- Examination of Disability Retirees Any Service or Non - Service Incurred Disability Retiree may be required by the Board to undergo a re- examination annually in order to confirm the continued existence of the disability condition. Any refusal by a Member to undergo such examina- tion or re- examination shall result in a termination of dis- ability payments until such disability condition is again medically substantiated to the satisfaction of the Board. F. Addition Provisions re Disability Retirees Exclusions. Disability benefits shall not be payable in cases where the disability arose as a result of the Member's own willful intent or self - inflicted injury, intoxication, or use of narcotics or other items considered to be a dangerous drug, or commission of a criminal act. Recovery. In the event of recovery from disability as deter- mined by the Board, and immediate re- employment by the City, the period of time while disabled shall be included as Con- tinuous Service. In the event of recovery, but without immedi- ate re- employment by the City the Member's future benefits shall be determined as though he initially terminated employ- ment on his date of disability, provided however, if such re- employment is prevented by reason of the failure or refusal of the City to provide or offer acceptable employment, giving due 8 consideration to the then ability and capacity of such re- covered disability retiree, and provided also that such failure of re- employment is not - caused by reason of such former retirees' failure or refusal to accept suitable City employment then and in such event the former disability retiree shall be entitled to future benefits computed and determined on basis allowing for Continuous Service throughout the period of disability. In the event of an irreconcilable situation aris- ing hereunder the matter shall be resolved by the City Council. Section V DEATH BENEFITS A. Death Prior to Retirement In the event of death prior to actual retirement under this Plan, there shall be a death benefit payable as respects a Member who is eligible for an Early, Normal, or Delayed Retirement benefit, but who remains in employment and dies while so employed. It shall be assumed that such deceased Member had retired immediately preceding his date of death, and a benefit shall be paid on a monthly basis assuming election of the Ten Year Certain and Life Thereafter option. A member not eligible for a pre- retirement death benefit shall in any event be entitled to a return of his accumulated contri- butions. B. Death Subsequent to Retirement No benefit shall be paid upon the death of a Retiree except such benefits as result by reason of the use of a pre-retire- ment selection of an Option providing a survivor benefit. Section VI VESTING If a Member terminates his employment with. the City, either voluntarily or by discharge, and is not eligible for any other benefits under this System, he shall be entitled to the following: A. With less than ten (10) years of Continuous Service, a refund of Accumulated Contributions. B. With ten (10). or more years of Continuous Service, (1) The pension benefits accrued to his date of termination, payable for the life of the Member and commencing upon the Member's attainment of his otherwise Normal Retirement Age, provided he does not elect to withdraw his Member contribu- tions, or, in the discretion of the Member. (2) Refund of Accumulated Contributions, in which event no pension benefit shall be payable. 9 Regardless of the provisions of the Vesting provisions, any Member attaining Normal Retirement Age shall be fully vested (100 %) In retirement benefits accrued to Normal Retirement Date or actual retirement date, if later. Section VII OPTIONAL FORMS OF BENEFIT PAYMENTS Each Member entitled to a Normal, Early or Vested Retirement Benefit shall have the right at any time prior to the date on which benefit payments be- gin to elect to have his benefit payable under any one of the Options here- inafter set forth in lieu of the benefits otherwise provided herein, and to revoke any such elections and make a new election at any time prior to the actual beginning of payments. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable, and the present value of payments to the retiring Member must be at least equal to fifty percent (50 %) of the total present value of payments to the retiring Member and his Beneficiary. The Member shall make such an election by written request to the Board, such request being retained in the Board's files. OPTION 1 -Joint and Last Survivor Option The Member may elect to receive a benefit during his lifetime and have such benefit (or a designated fraction thereof) continued after his death to and during the lifetime of his Spouse or a relative other than his Spouse. The election of Option 1 shall be null and void if the designated Beneficiary dies before the Member's benefit payments commence. OPTION 2 - 10 Years Certain and Life Thereafter The Member may elect to receive a benefit with 120 monthly payments guaranteed. If, after payments commence, the Member should die before said 120 monthly payments are made, payments shall be continued to his designated Beneficiary until 120 payment in all have been made, at which time benefits shall cease. After expiration of the 120 monthly payments guaranteed, should the retired Member be then alive, payments shall be continued during his remaining lifetime. OPTION 3 - Other In lieu of the other optional forms enumerated in this Section, bene- fits may be paid in any form approved by the Board so long as actuarial equivalence with the benefits otherwise payable is maintained. Section VIII CONTRIBUTIONS A. Member Contributions 1. Amount Members of the Retirement System shall make regular contributions at a rate of five percent (5 %) of Earnings. 10 2. Interest Interest shall be credited annually to Member Contributions at a rate determined on a year to year basis by the Board of Trustees. 3 Guaranteed Refund All benefits payable under this System are in lieu of a refund of Accumulated Contributions. In any event, however, each Mem- ber shall be guaranteed the payment of benefits on his behalf at least equal in total amount to his Accumulated Contributions. B. City Contributions So long as this System is in effect, the City shall make an annual contribution to the Trust Fund in an amount at least equal to the difference in each year as between the total of aggregate Member con- tributions for the year and the total cost for the year as shown by the most recent actuarial valuation and Report for the System. The total cost for any year shall be defined as the total of Normal Cost plus the additional amount sufficient to amortize the Unfunded Accrued Past Service Liability over a forty (40) year period commencing with the fiscal year in which the Effective Date of this Amended System occurred. C. 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 contributions. Section IX FINANCES AND FUND MANAGEMENT A. Establishment and Operation of Fund 1. As part of the System there is hereby established 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 of Trustees. Payment of benefits and disbursements from the Fund shall be made by the disbursing agent on authorization from the Board. 3 The Board may hire and appoint such persons, agents or entities (including corporate fiduciaries) as in its discretion may be re- quired or advisable to enable it to perform custodial and invest- ment duties hereunder; provided further, the Board may enter into agency, investment advisory and custodial agreements for the pur- pose of securing investment and custodianship services for the System and Fund. 11 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: (a) Current amounts of Accumulated Contributions of Members on . both an individual and aggregate account basis, and (b) Receipts and disbursements, and (c) Benefit payments, and (d) 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. B. Powers of Board of Trustees The Board of Trustees shall have the following investment powers and authority: 1. The Board of Trustees shall be vested with full legal title to said Fund, subject however, and in any event to the authority and power of the City Council to amend or terminate this Trust, pro- vided that no amendment or Fund termination shall ever result in the use of any assets of this Fund except for the payment of regu- lar expenses and benefits under this System. 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. 2. The Fund may be invested and reinvested in such securities or property, real or personal, wherever situated and of whatever kind, as shall be approved by the Board of Trustees, including but not limited to stocks, common or preferred, and bonds, and other evidences of indebtedness or ownership. 3. The Board of Trustees 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. 4. No person or entity 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. 12 5 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 un- registered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the Trust Fund. 6. 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 attor- ney with or without power of substitution; to participate in mer- gers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protec- tive or like committee or 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. 7. 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 herein contained. 8. 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 spe- cific information, 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. 9. Any overpayments or underpayments from the Fund to a Member or Beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the Board. Over- payments shall be charged against payments next succeeding the correction. Underpayments shall be made up from the Trust Fund 10. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to meet the payments and benefits herein provided for. 11. In any application to or preceeding or action in the courts, only the City and the Board shall be necessary parties, and no Member or other person .having an interest in the Fund shall be entitled to any notice of service or process. Any judgement entered in such a proceeding or action shall be conclusive upon all persons. 13 12. Any of the foregoing powers and functions reposed in the Board may be performed or carried out-by the Board through duly author- ized Agents, provided that the Board at all times requires of and reviews reports to any such Agent; provided further, that legal title to said Fund shall always remain in the Board of Trustees. Section X ADMINISTRATION 1. The general administration and responsibility for the proper operation of the Retirement System and for making effective the provisions of this Ordinance are hereby vested in a Board of Trustees consisting of five (5) persons, each of whom shall be appointed by the City Council as follows: (a) Three. General Employee Members, each of whom shall be a department head within the City of Okeechobee, the tenure to be two (2): years. - Successive .terms may be served by each of such Members, and (b) One City Council person, to be selected by the City Council, the tenure as a Board Member to be two (2) years. Any Council person so selected may serve successive terms as a Board mem- ber if so designated and selected by the City Council. (c) One citizen, a resident and elector of the City of Okeechobee, to be appointed by the City Council. Any such citizen - Mem- ber shall serve as a Board Member for two (2) years and may be reappointed to successive terms. 2. If a vacancy occurs as respects a member Trustee, the vacancy shall be filled for the unexpired term in the same manner as the office was previously filled. 3. The Trustees shall serve without compensation, but they may be reimbursed from the Fund for all necessary expenses which they may acutally expend through service on the Board. 4. Each Trustee shall, within ten (10) days after his appointment or election, take an oath of office before the City Clerk of the City, that he will diligently and honestly administer the affairs of the said Board, and that he will not knowingly violate or willingly permit to be violated any of the provisions of the law applicable to the System. Such oath shall be subscribed to by the members and certified by the said Clerk and filed in the office of the City Clerk. 5. Each Trustee shall be entitled to one vote on the Board. Four . affirmative votes shall be necessary for a decision by the Trustees at any meeting of the Board except for removal of a Trustee. The Chairman shall have the right to one vote only. 14 6. Subject to the limitations of this Ordinance, the Board of Trustees shall from time to time establish uniform rules and regulations for the administration of funds created by this Ordinance and for transactions of its business, including provisions for expulsion due to non - attendance of its members which could result in a vacancy. 7. The Board of Trustees shall engage such actuarial and other ser- vices as shall be required to transact the business of the Retire- ment System. The compensation of all persons engaged by the Board of Trustees and all other expenses of the Board necessary for the operation of the Retirement System shall be paid at such rates and in such amounts as the Board of Trustees shall agree. Funds may be disbursed by the City Finance Department or other disbursing agent as determined by the Board, but only upon written authoriza- tion by the Board of Trustees. 8. Any elected Trustee who neglects the duties of his office, as de- termined by the Board, may be removed by three concurring votes of the Board of Trustees. 9. The duties and responsibilities of the Board of Trustees shall include, but not necessarily be limited by, the following: (a) To construe the provisions of the System and determine all questions arising thereunder. (b) To determine and process all applications for, and questions relating to eligibility and participation. (c) To determine and certify 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 at regular intervals to Employees, information concerning the System. (f) (g) To authorize all payments whatsoever from the Fund, and to notify the disbursing agent, in writing, of approved bene- fit payments and other expenditures arising through operation of the System and Fund. To have performed actuarial studies and actuarial valuations, and make recommendations to the City Council regarding changes in the provisions of the System. (h) To review reports of and have meeting with the custodian and investment agent(s) or advisor(s),to require written reports from the custodian on Fund assets and transactions on a quarterly or more frequent basis if deemed advisable by the 15 Board; to require written and oral reports from the invest- ment agent or advisor on at lease a semi - annual basis, such reports to reflect Fund investment performance, investment recommendations and overallireview of Fund investment policies. (i) To perform such other duties as are specified in this Ordinance. 10. For Plan purposes a "fiduciary" shall be any person or entity who exercises any discretionary authority or control regarding manage- ment of the System or System assets; any person or entity who renders or who has authority or responsibility to render investment advice; or any person or entity who has any discretionary authority or re- sponsibility in administration of the System. Any person or entity may serve in more than one fiduciary capacity. All fiduciaries shall discharge their duties hereunder solely in the interest of Members and Beneficiaries, and more particularly as follows: a. For the exclusive purpose of providing benefits to Members and their Beneficiaries, and b. With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; and c. By performing their duties in accordance with the docu- ments and instruments setting forth and governing the Plan. 11. It is intended hereunder that each fiduciary shall be responsible for the proper exercise of his or its own powers, duties, responsi- bilities and obligations as specified herein or as may be specifi- cally delegated in writing. No fiduciary guarantees the Trust Fund in any manner against investment loss or depreciation in asset value. Denial of Claims -- Rehearing 1. Any Member or Beneficiary whose application or claim for benefits has been denied shall receive from the Board a written notice setting forth the specific reasons for such denial, the reasons thereinto be clearly and fully explained so as to afford such member or Bene- ficiary a clear understanding of the decision rendered. In addition, such notice of denial shall include a specific reference to the per- tinent System provisions on which the denial is based, and an ex- planation of the claim review procedure. 16 2. Any Member or Beneficiary whose application or claim for benefits has been denied shall have the ri_ght to a re- hearing and a fair and full review by the Board regarding the facts, circumstances and information pertaining to the claim and the reasons for denial of such claim. X -B Insurance and Trustee(s) Authority 1. The Board of Trustees, as well as any agent duly appointed by the Board, shall have the authority to take such action as may be necessary to . convey, convert, assign, transfer or surrender any and all policies of insurance held by the Board under provisions of the Plan as it existed prior to Amendment, and to accept, hold and give receipt(s) for any and all sums received as cash surrender values or other increments; it being specifically understood that all sums so received upon transfer or surrender of said insurance policies will and do comprise and constitute assets of the Trust Fund hereunder, and any such sums received shall promptly be de- posited in the Fund for the exclusive benefit of Members and Bene- ficiaries. 2. No life insurance carrier of any insurance policies held by the Trustee(s) shall be responsible for the validy of the provisions herein nor be required to take any action regarding the propriety of any act of the Board of Trustees, the responsibility of the insurance carrier being limited solely to the terms of any policy issued by it. 3. The life insurance company may conclusively assume and shall not be affected by any notice to the contrary that the Trustees, including any successor Trustees, and each of them have full power and author- ity, to take any action with respect to any policies issued under this Agreement, and shall be fully protected in taking, suffering, permitting, or omitting any action on the faith of any instrument executed by the Trustees, or any one of them, and shall incur no liability or responsibility to anyone for so doing. Section XI 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 benefitting 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. The Board of Trustees may recommend adoption of Amendments to the System; however, only the City Council may authorize the actual adoption of Amendments. 17 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 to benefits in accordance with the provisions hereof, with prior preference being directed towards the return of Accumulated Contributions. 3. The following shall be the order of priority for purposes of allo- cating the assets of the System upon repeal of this Ordinance or if contributions to the System are discontinued: (a) The Accumulated Contributions of the Members less any benefits received, in proportion to and to the extent of the then amount of Accumulated Member Contributions. If any funds remain, then (b) Members already retired under the Normal Retirement provisions of the System and those eligible for Normal Retirement but not actually retired, and their Beneficiaries, in proportion to and to the extent of the then actuarially determined present value of the benefits payable less amounts received according to (a) above. If any funds remain, then (c) Members retired under the disability provisions of this System and their Beneficiaries in the same manner as in (b) above. If any funds remain, then (d) All other Members and their Beneficiaries in the same manner as in (b) but based upon Continuous Service and Average Monthly Earnings as of the date of termination of the System, and with any benefits vested given precedence. The allocation of the Fund provided for in this subsection may, as de- cided 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 to said benefits or the distribution may be carried out in such other equitable manner as the Board may direct. The Trust may be con- tinued in existence for purposes of subsequent distributions. If, at any time during the first ten years after the Effective Date of the System as respects the City, the System shall be terminated or the full current costs of the System (consisting of the normal costs and interest on any accrued liability) shall not have been met, anything in 18 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 Employees of the City on the Effective Date, whose anticipated annual retirement allowance provided by the City's contributions at his 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 percentum of such employee's average annual earnings during his last five years of service by the number of years of service since the Effective Date. In the event that it shall here- after be determined by statute, court decision, ruling by the Commission- er of Internal Revenue, or otherwise, that the provisions of this para- graph are not then necessary to qualify the System under the Internal Revenue Code, this paragraph shall be ineffective without the necessity of further amendment of this Ordinance. 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 XII MISCELLANEOUS 1. Medical Board The Board of Trustees shall designate a Medical Board to be composed of one (1) or more physicians who shall arrange for and pass upon all medical examinations required under the provisions of this Ordinance, shall investigate all essential statements or certificates made by or on behalf of a Member in connection with an application for disa- bility or retirement and shall report in writing to the Board of Trustees its conclusions and recommendations upon all matters re- ferred to it. The payment for such services shall be determined by the Board of Trustees. 2. Discharged Members Members entitled to a pension shall not forfeit the same upon dis- missal, but shall be retired as herein described. 3. Non - Assignability No benefit provided for herein shall be assignable or subject to garnishment for debt or for other legal process. 4. Pension Validity The Board of Trustees 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. Said Board is empowered to purge the pension rolls of any person heretofore granted a pension under prior or existing law or hereafter granted under this Ordinance if the same is found to be erroneous, fraudu- lent or illegal for any reason; and to reclassify any pensioner who • • t• ••..., • • has heretofore under any prior or existing law or who shall here- after under this Ordinance be erroneously, improperly or illegally classified. 19 5. Incompetents If any Member or Beneficiary is a minor or is, in the judgement of the Board, otherwise incapable of personally receiving and giving a valid receipt for any payment due him under the System, the Board may, unless and until claims shall have been made by a duly appointed guardian or committee of such person, make such payment or any part thereof to such person's Spouse, children or other person deemed by the Board to have incurred expenses or assumed responsibility for the expenses of such person. Any payment so made shall be a complete discharge of any liability under the System for such payment. Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Okeechobee. All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. This Ordinance shall take effect immediately upon final passage by the City Council and shall be published as required by law, but shall apply retroactive January 1, 1980 . That should any section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part to be declared invalid. ATTEST: PASSED and ADOPTED this 13th day of May, 1980. City Clerk airman of City Council