1133 Amends Fire Pension PlanORDINANCE NO. 1133
AN ORDINANCE OF THE CITY OF OKEECHOBEE
FURTHER AMENDING THE CITY OF OKEECHOBEE
MUNICIPAL FIREFIGHTERS' PENSION FUND, ADOPTED
PURSUANT TO ORDINANCE 889, AS SUBSEQUENTLY
AMENDED; AMENDING SECTION 1, DEFINITIONS;
AMENDING SECTION 6, BENEFIT AMOUNTS AND
ELIGIBILITY; AMENDING SECTION 8, , DISABILITY;
AMENDING SECTION 10, OPTIONAL FORMS OF
BENEFITS; AMENDING SECTION 15, MAXIMUM PENSION;
AMENDING SECTION 16, MINIMUM DISTRIBUTION OF
BENEFITS; AMENDING SECTION 27, PRIOR FIRE
SERVICE; AMENDING SECTION 28, DEFERRED
RETIREMENT OPTION PLAN; ADDING SECTION 30,
SUPPLEMENTAL BENEFIT COMPONENT FOR EXTRA
BENEFITS; CHAPTER 175 SHARE ACCOUNTS;
PROVIDING FOR CODIFICATION; PROVIDING FOR
SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee Firefighter 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;
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 Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 1, Definitions, to amend the definitions of "Actuarial
Equivalent ", "Credited Service ", "Firefighter" and "Spouse ", 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 seven percent (7 %) interest and the RP -2000 Combined
Healthy Participant Mortality Table, projected to 2015 using projection scale AA, using a
blend of 50% male mortality rates and 50% female mortality rates, set back five (5) years
for disabled lives. 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.
Credited Service means the total number of years and fractional parts of years of
service as a Firefighter with Member contributions when required, omitting intervening
years or fractional parts of years when such Member was not employed by the City as a
Firefighter. A Member may voluntarily leave his Accumulated Contributions in the Fund
for a period of five (5) years after leaving the employ of the Fire Department pending the
possibility of being reemployed as a Firefighter, without losing credit for the time that he
was a Member of the System. If a vested Member leaves the employ of the Fire
Department, his Accumulated Contributions will be returned only upon his written request.
If a Member who is not vested is not reemployed as a Firefighter with the Fire 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)
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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 Firefighter 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 Firefighter repays into the Fund the contributions he has withdrawn, with
interest, as determined by the Board, within ninety (90) days after his reemployment.
The years or fractional parts of a year that a Member performs "Qualified Military
Service" consisting of voluntary or involuntary "service in the uniformed services" as
defined in the Uniformed Services Employment and Reemployment Rights Act ( USERRA)
(P.L.103 -353), after separation from employment as a Firefighter 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 is entitled to reemployment under the provisions of
USERRA.
B. The Member returns to his employment as a Firefighter within one (1)
year from the earlier of the date of his military discharge or his release
from active service, unless otherwise required by USERRA.
C. The maximum credit for military service pursuant to this paragraph
shall be five (5) years.
D. This paragraph is intended to satisfy the minimum requirements of
USERRA. To the extent that this paragraph does not meet the
minimum standards of USERRA, as it may be amended from time to
time, the minimum standards shall apply.
In the event a Member dies on or after January 1, 2007, while performing USERRA
Qualified Military Service, the beneficiaries of the Member are entitled to any benefits
(other than benefit accruals relating to the period of qualified military service) as if the
Member had resumed employment and then died while employed.
Beginning January 1, 2009, to the extent required by Section 414(u)(12) of the
Code, an individual receiving differential wage payments (as defined under Section
3401(h)(2) of the Code) from an employer shall be treated as employed by that employer,
and the differential wage payment shall be treated as compensation for purposes of
applying the limits on annual additions under Section 415(c) of the Code. This provision
shall be applied to all similarly situated individuals in a reasonably equivalent manner.
Leave conversions of unused accrued paid time off shall not be permitted to be
applied toward the accrual of Credited Service either during each Plan Year of a Member's
employment with the City or in the Plan Year in which the Member terminates employment.
Firefighter means an actively employed full -time person employed by the City,
including his initial probationary employment period, who is certified as a Firefighter as a
condition of employment in accordance with the provisions of §633.35 633.408, Florida
Statutes, and whose duty it is to extinguish fires, to protect life and to protect property. The
term includes all certified, supervisory, and command personnel whose duties include, in
whole or in part, the supervision, training, guidance, and management responsibilities of
full -time firefighters, part-time firefighters, or auxiliary firefighters but does not include part -
time firefighters or auxiliary firefighters.
Spouse means the : , • . • .: - Member's
or Retiree's spouse under applicable law at the time benefits become payable.
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SECTION 2: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 6, Benefit Amounts and Eligibility, subsection 1., Normal
Retirement Date, to read as follows:
1. Normal Retirement Age and Date.
A Member's normal retirement age is the
earlier of the attainment of age fifty -five (55) and the completion of ten (10) years of
Credited Service, or upon the completion of twenty -five (25) years of Credited Service,
regardless of age. Each Member shall become one hundred percent (100 %) vested in his
accrued benefit at normal retirement age. A Member's normal retirement date shall be the
first day of the month coincident with or next following the date the Member retires from the
City after attaining normal retirement age.
SECTION 3: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 8, Disability, subsection 1., Disability Benefits In -Line of
Duty, and subsection 3., Disability Benefits Not -in -Line of Duty, to read as follows:
1. Disability Benefits In -Line of Duty.
Any Member who shall become totally and permanently disabled to the extent
that he is unable, by reason of a medically determinable physical or mental impairment,
to render useful and efficient service as a Firefighter, which disability was directly caused
by the performance of his duty as a Firefighter, shall, upon establishing the same to the
satisfaction of the Board, be entitled to a monthly pension equal to three percent (3 %) of
his Average Final Compensation multiplied by the total years of Credited Service, but in
any event, the minimum amount paid to the Member shall be forty -two percent (42 %) of
the Average Final Compensation of the Member. Terminated persons, either vested or
non - vested, are not eligible for disability benefits,
Notwithstanding the previous sentence, if a Member is terminated by the City for medical
reasons, the terminated person may apply for a disability benefit if the application is filed
with the Board within thirty (30) days from the date of termination. If a timely application
is received, it shall be processed and the terminated person shall be eligible to receive a
disability benefit if the Board otherwise determines that he is totally and permanently
disabled as provided for above.
3. Disability Benefits Not -in -Line of Duty.
Any Member with five (5) or more years of Credited Service who shall
become totally and permanently disabled to the extent that he is unable, by reason of a
medically determinable physical or mental impairment, to render useful and efficient
service as a Firefighter, which disability is not directly caused by the performance of his
duties as a Firefighter shall, upon establishing the same to the satisfaction of the Board,
be entitled to a monthly pension equal to the greater of (i) or (ii) where (i) is two percent
(2 %) of Average Final Compensation multiplied by the total years of Credited Service and
(ii) is a benefit determined in the same manner as for early retirement as set forth in
Section 6, subsection 4B, providing for an actuarial reduction. In any event, the minimum
amount paid to the Member shall be twenty -five percent (25 %) of his Average Final
Compensation. Terminated persons, either vested or non - vested, are not eligible for
disability benefits,
. Notwithstanding the previous
sentence, if a Member is terminated by the City for medical reasons, the terminated person
may apply for a disability benefit if the application is filed with the Board within thirty (30)
days from the date of termination. If a timely application is received, it shall be processed
and the terminated person shall be eligible to receive a disability benefit if the Board
otherwise determines that he is totally and permanently disabled as provided for above.
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SECTION 4: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 10, Optional Forms of Benefits, subsections 1.D. and 2.,
to read as follows:
1 D. For any Member who does not participate in the DROP pursuant to
Section 28, a lump sum payment payable to the Retiree equal to
twenty percent (20 %) of the present total actuarial equivalent value of
the Retiree's accrued benefit at the date of retirement with the
remaining eighty percent (80 %) payable to the Retiree in a form
selected by the Retiree and provided for in Ai of B or C above or in
the normal form (10 year certain and life). A Retiree who is a
participant in the Deferred Retirement Option Plan shall not be eligible
to select this partial lump sum option.
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 (1) or more primary Beneficiaries where applicable. A Member may
change his Beneficiary at any time. If a Member has elected an option with a joint
pensioner and the Member's retirement income benefits have commenced, the Member
may thereafter change his designated Beneficiary at any time, but my only change his joint
pensioner twice. Subject to the restriction in the previous sentence, a Member may
substitute a new joint pensioner for a deceased joint pensioner. In the absence of proof
of good health of the joint pensioner being replaced, the actuary will assume that the joint
pensioner has deceased for purposes of calculating the new payment.
SECTION 5: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 15, Maximum Pension, subsections 6., 8., 12.B., and by
adding subsection 13., to read as follows:
6. Less than Ten (10) Years of Participation a -Service.
The maximum retirement benefits payable underthis Section to any Member
who has completed less than ten (10) years of participation
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
participation and the denominator of which is ten (10). The reduction provided by this
subsection cannot reduce the maximum benefit below 10% of the limit determined without
regard to this subsection. The reduction provided for in this subsection shall not be
applicable to pre- retirement disability benefits paid pursuant to Section 8 or pre- retirement
death benefits paid pursuant to Section 7.
8. Ten Thousand Dollar ($10,000) Limit; Less Than Ten Years of Service.
Notwithstanding anything in this Section 15, the retirement benefit payable
with respect to a Member shall be deemed not to exceed the limit set forth in this
subsection 8. of Section 15 if the benefits payable, with respect to such Member under this
System and under all other qualified defined benefit pension plans to which the City
contributes, do not exceed ten thousand dollars ($10,000) for the applicable limitation year
and. or for any prior limitation year, and the City has not at any time maintained a qualified
defined contribution plan in which the Member participated; provided, however, that if the
Member has completed less than ten (10) years of Credited Service with the City, the limit
underthis subsection 8. of Section 15 shall be a reduced limit equal to ten thousand dollars
($10,000) 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).
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12. B. No Member of the System shall be allowed to receive a retirement
benefit or pension which is in part or in whole based upon any service
with respect to which the Member is already receiving, or will receive
in the future, a retirement benefit or pension from a different
employer's retirement system or plan. This restriction does not apply
to social security benefits or federal benefits under Chapter 67 1223,
Title 10, U.S. Code.
13. Effect of Direct Rollover on 415(b) Limit.
If the plan accepts a direct rollover of an employee's or former employee's
benefit from a defined contribution plan qualified under Code Section 401(a) which is
maintained by the employer, any annuity resulting from the rollover amount that is
determined using a more favorable actuarial basis than required under Code Section
417(e) shall be included in the annual benefit for purposes of the limit under Code Section
415(b).
SECTION 6: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 16, Minimum Distribution of Benefits, subsection 2.B.(4),
to read as follows:
2. B. (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. ,
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.
SECTION 7: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 27, Prior Fire Service, subsection 5., to read as follows:
5. In no event, however, may Credited Service be purchased pursuant to this
Section for prior service with any other municipal, county or special district fire department,
if such prior service forms or will form the basis of a retirement benefit or pension from a
different employer's retirement system or plan as set forth in Section 15, subsection 11 B
12.B.
SECTION 8: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by amending Section 28, Deferred Retirement Option Plan, to read as follows:
SECTION 28. DEFERRED RETIREMENT OPTION PLAN.
1. Definitions.
As used in this Section 28, the following definitions apply:"
A. "DROP" -- The City of Okeechobee Firefighters' Deferred Retirement
Option Plan.
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B. "DROP Account" -- The account established for each DROP
participant under subsection 3.
"Total return of the assets" -- For purposes of calculating earnings on
a Member's DROP Account pursuant to subsection 3.B.(2)(b), for
each fiscal year quarter, the percentage increase (or decrease) in the
interest and dividends earned on investments, including realized and
unrealized gains (or losses), of the total plan assets.
2. Participation.
A. Eligibility to Participate.
In lieu of terminating his employment as a Firefighter, any Member
who is eligible for normal retirement under the System may elect to
defer receipt of such service retirement pension and to participate in
the DROP.
B. Election to Participate.
A Member's election to participate in the DROP must be made in
writing in a time and manner determined by the Board and shall be
effective on the first day of the first calendar month which is at least
fifteen (15) business days after it is received by the Board.
C. Period of Participation.
A Member who elects to participate in the DROP under subsection
2.B., shall participate in the DROP for a period not to exceed sixty
(60) months beginning at the time his election to participate in the
DROP first becomes effective. An election to participate in the DROP
shall constitute an irrevocable election to resign from the service of
the City not later than the date provided for in the previous sentence.
A Member may participate only once.
D. Termination of Participation.
(1) A Member's participation in the DROP shall cease at the
earlier of:
(a) the end of his permissible period of participation in the
DROP as determined under subsection 2.C.; or
(b) termination of his employment as a Firefighter.
(2) Upon the Member's termination of participation in the DROP,
pursuant to subsection (a) above, all amounts provided for in
subsection 3.B., including monthly benefits and investment
earnings and losses or interest, shall cease to be transferred
from the System to his DROP Account. Any amounts
remaining in his DROP Account shall be paid to him in
accordance with the provisions of subsection 4. when he
terminates his employment as a Firefighter.
(3) A Member who terminates his participation in the DROP under
this subsection 2.D. shall not be permitted to again become a
participant in the DROP.
E. Effect of DROP Participation on the System.
(1) A Member's Credited Service and his accrued benefit under
the System shall be determined on the date his election to
participate in the DROP first becomes effective. The Member
shall not accrue any additional Credited Service or any
additional benefits under the System (except for any
supplemental benefit payable to DROP participants or any
additional benefits provided under any cost -of- living
adjustment for Retirees in the System) while he is a participant
in the DROP. After a Member commences participation, he
shall not be permitted to again contribute to the System nor
shall he be eligible for disability or pre- retirement death
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benefits, except as provided for in Section 29, Reemployment
After Retirement.
(2) No amounts shall be paid to a Member from the System while
the Member is a participant in the DROP. Unless otherwise
specified in the System, if a Member's participation in the
DROP is terminated other than by terminating his employment
as a Firefighter, no amounts shall be paid to him from the
System until he terminates his employment as a Firefighter.
Unless otherwise specified in the System, amounts transferred
from the System to the Member's DROP Account shall be paid
directly to the Member only on the termination of his
employment as a Firefighter.
3. Funding.
A. Establishment of DROP Account.
A DROP Account shall be established for each Member participating
in the DROP. A Member's DROP Account shall consist of amounts
transferred to the DROP under subsection 3.B., and earnings or
interest on those amounts.
B. Transfers From Retirement System.
(1) As of the first day of each month of a Member's period of
participation in the DROP, the monthly retirement benefit he
would have received under the System had he terminated his
employment as a Firefighter and elected to receive monthly
benefit payments thereunder shall be transferred to his DROP
Account, except as otherwise provided for in subsection
2.D.(2). A Member's period of participation in the DROP shall
be determined in accordance with the provisions of
subsections 2.C. and 2.D., but in no event shall it continue past
the date he terminates his employment as a Firefighter.
(2) Except as otherwise provided in subsection 2.D.(2), a
Member's DROP Account under this subsection 3.B. shall be
debited or credited : _ :. _ with either:
(a) Interest at an effective rate of six and one -half percent
(6.5 %) per annum compounded monthly determined on
the last business day of the prior month's ending
balance and credited to the Member's DROP Account
as of such date (to be applicable to all current and
future DROP participants); or
(b) Earnings, to be credited or debited to the Member's
DROP Account, determined as of the last business day
of each fiscal year quarter and debited or credited as of
such date, determined as follows:
The average daily balance in a Member's DROP
Account shall be credited or debited at a rate equal to
the net investment return realized by the System for
that quarter. "Net investment return" for the purpose of
this paragraph is the total return of the assets in which
the Member's DROP Account is invested by the Board
net of brokerage commissions, transaction costs and
management fees.
For purposes of calculating earnings on a Member's
DROP Account pursuant to this subsection 3.B.(2)(b),
brokerage commissions, transaction costs, and
management fees shall be determined for each quarter
by the investment consultant pursuant to contracts with
fund managers as reported in the custodial statement.
The investment consultant shall report these quarterly
contractual fees to the Board. The investment
consultant shall also report the net investment return for
each manager and the net investment return for the
total plan assets.
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Upon electing participation in the DROP, the Member shall
elect to receive either interest or earnings on his account to be
determined as provided above. The Member may, in writing,
elect to change his election only once during his DROP
participation. An election to change must be made prior to the
end of a quarter and shall be effective beginning the following
quarter.
(3) A Member's DROP Account shall only be credited or debited
with earnings or interest and monthly benefits while the
Member is a participant in the DROP. A Member's final DROP
account value for distribution to the Member upon termination
of participation in the DROP shall be the value of the account
at the end of the quarter immediately preceding termination of
participation for participants electing the net plan return and at
the end of the month immediately preceding termination of
participation for participants electing the flat interest rate
return, plus any monthly periodic additions made to the DROP
account subsequent to the end of the previous quarter or
month, as applicable, and prior to distribution. If a Member
fails to terminate employment after participating in the DROP
for the permissible period of DROP participation, then
beginning with the Member's 1st month of employment
following the last month of the permissible period of DROP
participation, the Member's DROP Account will no longer be
credited or debited with earnings or interest, nor will monthly
benefits be transferred to the DROP account. All such non -
transferred amounts shall be forfeited and continue to be
forfeited while the Member is employed by the Fire
Department, and no cost -of- living adjustments shall be applied
to the Member's credit during such period of continued
employment. A Member employed by the Fire Department
after the permissible period of DROP participation will be
eligible for pre- retirement death and disability benefits, and will
accrue additional Credited Service, only as provided for in
Section 29.
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 Firefighter. Except as provided in
subsection 4.E., no amounts shall be paid to a Member from the
DROP prior to his termination of employment as a Firefighter.
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.F. 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.
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 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.
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D. 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.
E. Distribution Limitation.
Notwithstanding any other provision of this subsection 4., all
distributions from the DROP shall conform to the "Minimum
Distribution Of Benefits" provisions as provided for herein.
F. 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.
5. Administration of DROP.
A. Board Administers the DROP.
The general administration of the DROP, the responsibilityforcarrying
out the provisions of the DROP and the responsibility of overseeing
the investment of the DROP's assets shall be placed in the Board.
The members of the Board may appoint from their number such
subcommittees with such powers as they shall determine; may adopt
such administrative procedures and regulations as they deem
desirable for the conduct of their affairs; may authorize one or more
of their number or any agent to execute or deliver any instrument or
make any payment on their behalf; may retain counsel, employ
agents and provide for such clerical, accounting, actuarial and
consulting services as they may require in carrying out the provisions
of the DROP; and may allocate among themselves or delegate to
other persons all or such portion of their duties under the DROP,
other than those granted to them as Trustee under any trust
agreement adopted for use in implementing the DROP, as they, in
their sole discretion, shall decide. A Trustee shall not vote on any
question relating exclusively to himself.
B. Individual Accounts, Records and Reports.
The Board shall maintain records showing the operation and condition
of the DROP, including records showing the individual balances in
each Member's DROP Account and the Board shall keep in
convenient form such data as may be necessary for the valuation of
the assets and liabilities of the DROP. The Board shall prepare and
distribute to Members participating in the DROP and other individuals
or file with the appropriate governmental agencies, as the case may
be, all necessary descriptions, reports, information returns, and data
required to be distributed or filed for the DROP pursuant to the Code
and any other applicable laws.
C. Establishment of Rules.
Subject to the limitations of the DROP, the Board from time to time
shall establish rules for the administration of the DROP and the
transaction of its business. The Board shall have discretionary
authority to construe and interpret the DROP (including but not limited
to determination of an individual's eligibility for DROP participation,
the right and amount of any benefit payable under the DROP and the
date on which any individual ceases to be a participant in the DROP).
The determination of the Board as to the interpretation of the DROP
or its determination of any disputed questions shall be conclusive and
final to the extent permitted by applicable law.
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D. Limitation of Liability.
(1) The Trustees shall not incur any liability individually or on
behalf of any other individuals for any act or failure to act,
made in good faith in relation to the DROP or the funds of the
DROP.
(2) Neither the Board nor any Trustee of the Board shall be
responsible for any reports furnished by any expert retained or
employed by the Board, but they shall be entitled to rely
thereon as well as on certificates furnished by an accountant
or an actuary, and on all opinions of counsel. The Board shall
be fully protected with respect to any action taken or suffered
by it in good faith in reliance upon such expert, accountant,
actuary or counsel, and all actions taken or suffered in such
reliance shall be conclusive upon any person with any interest
in the DROP.
6. General Provisions.
A. The DROP is not a separate retirement plan.
Instead, it is a program under which a Member who is eligible for
normal retirement under the System may elect to accrue future
retirement benefits in the manner provided in this Section 28 for the
remainder of his employment, rather than in the normal manner
provided under the plan. Upon termination of employment, a Member
is entitled to a lump sum distribution of his or her DROP Account
balance or may elect a rollover. The DROP Account distribution is in
addition to the Member's monthly benefit.
B. Notional account.
The DROP Account established for such a Member is a notional
account, used only for the purpose of calculation of the DROP
distribution amount. It is not a separate account in the System.
There is no change in the Sjstem's assets, and there is no distribution
available to the Member until the Member's termination from the
DROP. The Member has no control over the investment of the DROP
account.
C. No employer discretion.
The DROP benefit is determined pursuant to a specific formula which
does not involve employer discretion.
D. IRC limit.
The DROP Account distribution, along with other benefits payable
from the System, is subject to limitation under Internal Revenue Code
Section 415(b).
(A E) Amendment of DROP.
The DROP may be amended by an ordinance of the City at any time
and from time to time, and retroactively if deemed necessary or
appropriate, to amend in whole or in part any or all of the provisions
of the DROP. However, except as otherwise provided by law, no
amendment shall make it possible for any part of the DROP's funds
to be used for, or diverted to, purposes other than for the exclusive
benefit of persons entitled to benefits under the DROP. No
amendment shall be made which has the effect of decreasing the
balance of the DROP Account of any Member.
B F. Facility of Payment.
If a Member or other person entitled to a benefit under the DROP is
unable to care for his affairs because of illness or accident or is a
minor, the Board shall direct that any benefit due him shall be made
only to a duly appointed legal representative. Any payment so made
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shall be a complete discharge of the liabilities of the DROP for that
benefit.
E G. Information.
Each Member, Beneficiary or other person entitled to a benefit, before
any benefit shall be payable to him or on his account under the
DROP, shall file with the Board the information that it shall require to
establish his rights and benefits under the DROP.
Et H. Prevention of Escheat.
Ifthe Board cannot ascertain the whereabouts of any person to whom
a payment is due under the DROP, the Board may, no earlier than
three (3) years from the date such payment is due, mail a notice of
such due and owing payment to the last known address of such
person, as shown on the records of the Board or the City. If such
person has not made written claim therefor within three (3) months of
the date of the mailing, the Board may, if it so elects and upon
receiving advice from counsel to the System, direct that such payment
and all remaining payments otherwise due such person be canceled
on the records of the System. Upon such cancellation, the System
shall have no further liability therefor except that, in the event such
person or his Beneficiary later notifies the Board of his whereabouts
and requests the payment or payments due to him under the DROP,
the amount so applied shall be paid to him in accordance with the
provisions of the DROP.
E I. Written Elections, Notification.
(1) Any elections, notifications or designations made by a Member
pursuant to the provisions of the DROP shall be made in
writing and filed with the Board in a lime and manner
determined by the Board under rules uniformly applicable to all
employees similarly situated. The Board reserves the right to
change from time to time the manner for making notifications,
elections or designations by Members under the DROP if it
determines after due deliberation that such action is justified in
that it improves the administration of the DROP. In the event
of a conflict between the provisions for making an election,
notification or designation set forth in the DROP and such new
administrative procedures, those new administrative
procedures shall prevail.
(2) Each Member or Retiree who has a DROP Account shall be
responsible for furnishing the Board with his current address
and any subsequent changes in his address. Any notice
required to be given to a Member or Retiree hereunder shall be
deemed given if directed to him at the last such address given
to the Board and mailed by registered or certified United States
mail. If any check mailed by registered or certified United
States mail to such address is returned, mailing of checks will
be suspended until such time as the Member or Retiree
notifies the Board of his address.
F J. Benefits Not Guaranteed.
All benefits payable to a Member from the DROP shall be paid only
from the assets of the Member's DROP Account and neither the City .
nor the Board shall have any duty or liability to furnish the DROP with
any funds, securities or other assets except to the extent required by
any applicable law.
G K. Construction.
(1) The DROP shall be construed, regulated and administered
under the laws of Florida, except where other applicable law
controls.
(2) The titles and headings of the subsections in this Section 28
are for convenience only. In the case of ambiguity or
inconsistency, the text rather than the titles or headings shall
control.
1-1 L. Forfeiture of Retirement Benefits.
Nothing in this Section shall be construed to remove DROP
participants from the application of any forfeiture provisions applicable
to the System. DROP participants shall be subject to forfeiture of all
retirement benefits, including DROP benefits.
+ M. Effect of DROP Participation on Employment.
Participation in the DROP is not a guarantee of employment and
DROP participants shall be subject to the same employment
standards and policies that are applicable to employees who are not
DROP participants.
SECTION 9: That the City of Okeechobee Municipal Firefighters' Pension Fund,
adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby further
amended by adding Section 30, Supplemental Benefit Component for Extra Benefits;
Chapter 175 Share Accounts, to read as follows:
SECTION 30. SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL
BENEFITS; CHAPTER 175 SHARE ACCOUNTS.
There is hereby established an additional plan component to provide special
benefits in the form of a supplemental retirement, termination, death and disability benefits
to be in addition to the benefits provided for in the previous Sections of this plan, such
benefit to be funded solely and entirely by Chapter 175, Florida Statutes, premium tax
monies for each plan year which are allocated to this supplemental component as provided
for in Section 175.351, Florida Statutes. Amounts allocated to "'this supplemental
component ( "Share Plan "), if any, shall be further allocated to the Members and DROP
participants as follows:
1. Individual Member Share Accounts.
The Board shall create individual "Member Share Accounts" for all actively
employed plan Members and DROP participants and maintain appropriate books and
records showing the respective interest of each Member or DROP participant hereunder.
Each Member or DROP participant shall have a Member Share Account for his share of
the Chapter 175, Florida Statutes, tax revenues described above, forfeitures and income
and expense adjustments relating thereto. The Board shall maintain separate Member
Share Accounts, however, the maintenance of separate accounts is for accounting
purposes only and a segregation of the assets of the trust fund to each account shall not
be required or permitted.
2. Share Account Funding.
A. Individual Member Share Accounts shall be established as of
September 30, 2015 for all Members and DROP participants who
were actively employed as of October 1, 2014. Individual Member
Share Accounts shall be credited with an allocation as provided for in
the following subsection 3. of any premium tax monies which have
been allocated to the share plan for that Plan Year, beginning with the
Plan Year ending September 30, 2015.
B. In addition, any forfeitures as provided in subsection 4., shall be
allocated to the individual Member Share Accounts in accordance
with the formula set forth in subsection 4.
3. Allocation of Monies to Share Accounts.
A. Allocation of Chapter 175 Contributions.
(1) Effective as of September 30, 2015, the amount of any
premium tax monies allocated to the share plan shall be
allocated to individual Member Share Accounts as provided for
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in this subsection. Members retiring (or entering DROP) on or
after October 1, 2014 and prior to September 30, 2015 shall
receive an allocation. In addition, all premium tax monies
allocated to the Share Plan in any subsequent Plan Year shall
also be allocated as provided for in this subsection. Available
premium tax monies shall be allocated to individual Member
Share Accounts at the end of each Plan Year on September
30 (a "valuation date ").
(2) On each valuation date, each current actively employed
Memberofthe plan not participating in the DROP, each DROP
participant and each Retiree who retires or DROP participant
who has terminated DROP participation in the Plan Year
ending on the valuation date (including each disability retiree),
or Beneficiary of a deceased Member (not including terminated
vested persons) who is otherwise eligible for an allocation as
of the valuation date shall receive a share allocation as follows:
The total funds subject to allocation on each valuation date
shall be allocated to each Member Share Account of those
eligible for an allocation in an amount equal to a fraction of the
total amount, the numerator of which shall be the individual's
total years and fractional parts of years of Credited Service as
of the valuation date, and the denominator of which shall be
the sum of the total years and fractional parts of years of
Credited Service as of the valuation date of all individuals to
whom allocations are being made. Beneficiaries shall receive
an allocation based on the years of Credited Service of the
deceased Member or DROP participant.
14) Re- employed Retirees shall be deemed new employees and
shall receive an allocation based solely on the Credited
Service in the reemployment period.
B. Allocation of Investment Gains and Losses.
On each valuation date, each individual Member Share Account shall
be adjusted to reflect the net earnings or losses resulting from
investments during the year. The net earnings or losses allocated to
the individual Member Share Accounts shall be the same percentage
which is earned or lost by the total plan investments, including
realized and unrealized gains or losses, net of brokerage
commissions, transaction costs and management fees.
Net earnings or losses are determined as of the last business day of
the fiscal year, which is the valuation date, and are debited or credited
as of such date.
For purposes of calculating net earnings or losses on a Member's
share account pursuant to this subsection, brokerage commissions,
transaction costs, and management fees for the immediately
preceding fiscal year shall be determined for each year by the
investment consultant pursuant to contracts with fund managers as
reported in the custodial statement. The investment consultant shall
report these annual contractual fees to the Board. The investment
consultant shall also report the net investment return for each
manager and the net investment return for the total plan assets.
C. Allocation of Costs, Fees and Expenses.
On each valuation date, each individual Member Share Account shall
be adjusted to allocate its pro rata share of the costs, fees and
expenses of administration of the Share Plan. These fees shall be
allocated to each individual Member Share Account on a
proportionate basis taking the costs, fees and expenses of
administration of the Share Plan as a whole multiplied by a fraction,
the numerator of which is the total assets in each individual Member
Share Account (after adding the annual investment gain or loss) and
the denominator of which is the total assets of the fund as a whole as
of the same date.
D. No Right to Allocation.
The fact of allocation or credit of an allocation to a Member's Share
Account by the Board shall not vest in any Member, any right, title, or
interest in the assets of the trust or in the Chapter 175, Florida
Statutes, tax revenues except at the time or times, to the extent, and
subject to the terms and conditions provided in this Section.
E. Members and DROP participant shall be provided annual statements
setting forth their share account balance as of the end of the Plan
Year.
4. Forfeitures.
Any Member who has less than ten (10) years of Credited Service and who
is not otherwise eligible for payment of benefits after termination of employment with the
City as provided for in subsection 5. shall forfeit his individual Member Share Account or
the non - vested portion thereof. Forfeited amounts shall be redistributed to the other
individual Member Share Accounts on each valuation date in an amount determined in
accordance with subsection 3.A.
5. Eligibility For Benefits.
Any Member (or his Beneficiary) who terminates employment as a Firefighter
with the City or who dies, upon application filed with the Board, shall be entitled to be paid
the value of his individual Member Share Account, subject to the following criteria:
A. Retirement Benefit.
(1j A Member shall be entitled to one hundred percent (100 %) of
the value of his share account upon normal or early Retirement
pursuant to Section 6, or if the Member enters the DROP,
upon termination of employment.
al Such payment shall be made as provided in subsection 6.
B. Termination Benefit.
(l In the event that a Member's employment as a Firefighter is
terminated by reason other than retirement, death or disability,
he shall be entitled to receive the value of his share account
only if he is vested in accordance with Section 9.
a) Such payment shall be made as provided in subsection 6.
C. Disability Benefit.
a) In the event that a Member is determined to be eligible for
either an in -line of duty disability benefit pursuant to Section 8,
subsection 1. or a not -in -line of duty disability benefit pursuant
to Section 8, subsection 3., he shall be entitled to one hundred
percent (100 %) of the value of his share account.
(2) Such payment shall be made as provided in subsection 6.
D. Death Benefit.
(1) In the event that a Member or DROP participant dies while
actively employed as a Firefighter, one hundred percent
(100 %) of the value of his Member Share Account shall be
paid to his designated Beneficiary as provided in Section 7.
(2) Such payment shall be made as provided in subsection 6.
6. Payment of Benefits.
If a Member terminates employment for any reason or dies and he or his
Beneficiary is otherwise entitled to receive the balance in the Member's share account, the
Member's share account shall be valued by the plan's actuary on the next valuation date
as provided for in subsection 3. above, following termination of employment. Payment of
the calculated share account balance shall be payable as soon as administratively
14
practicable following the valuation date, but not later than one hundred fifty (150) days
following the valuation date and shall be paid in one lump sum payment. No optional forms
of payments shall be permitted.
7. Benefits Not Guaranteed.
All benefits payable under this Section 30 shall be paid only from the assets
accounted for in individual Member Share Accounts. Neither the City nor the Board shall
have any duty or liability to furnish any additional funds, securities or other assets to fund
share account benefits. Neither the Board nor 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 Member Share Account balances, except due to his or its own
negligence, willful misconduct or lack of good faith. All investments shall be made by the
Board subject to the restrictions otherwise applicable to fund investments.
8. Notional Account.
The Member Share Account is a notional account, used only for the purpose
of calculation of the share distribution amount. It is not a separate account in the System.
There is no change in the System's assets, and there is no distribution available to the
Member or DROP participant until the Member's or DROP participant's termination from
employment. The Member or DROP participant has no control over the investment of the
share account.
9. No Employer Discretion.
The share account benefit is determined pursuant to a specific formula which
does not involve employer discretion.
10. Maximum Additions.
Notwithstanding any other provision of this Section, annual additions under
this Section shall not exceed the limitations of Section 415(c) of the Code pursuant to the
provisions of Section 15, subsection 11.
11. IRC Limit.
The share account distribution, along with other benefits payable from the
System, is subject to limitation under Internal Revenue Code Section 415(b).
SECTION 10: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Okeechobee.
SECTION 11: All Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 12: 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 13: That this Ordinance shall become effective upon adoption.
15
Introduced on first reading and set for public hearing this /9/4-- day of
__ , 2016.
ATTEST:
Lane G . miotea, ity Clerk
K./a
es E. Kirk, Mayor
Passed on second reading after public hearing this end day of
, 2016.
ATTEST:
ane c amibtea, Ci y Clerk
APPROVED FOR LEGAL SUFFICIENCY:
John R. Cook, City Attorney
d m/ok/fire/1 0-20-1 5.ord
16
es E. Kirk, Mayor