1141 Gen/OUA Emp Retirement SplitORDINANCE NO. 1141
AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING AND
RESTATING THE CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY
AUTHORITY EMPLOYEES' RETIREMENT SYSTEM, ADOPTED PURSUANT
TO ORDINANCE NO. 1053, AS SUBSEQUENTLY AMENDED; PROVIDING
FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS;
REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee and the Okeechobee Utility Authority (OUA) employees
are presently provided pension and certain other' benefits under Ordinances of the City
of Okeechobee; and
WHEREAS, the City amended the City Plan effective September 29,1995 under Ordinance
No. 686 to permit OUA to participate as an employer in the City Plan; and
WHEREAS, OUA has determined it to be in the best interest of OUA and the OUA employees
to withdraw from participation in the City Plan and has adopted its own qualified defined
benefit pension plan effective October 1, 2016.
NOW, THEREFORE, be it ordained before the City Council of the City of Okeechobee,
Florida; presented at a duly advertised public meeting; and passed by majority vote of
the City Council; and properly executed by the Mayor or designee, as Chief Presiding
Officer for the City:
SECTION 1: That the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System, adopted pursuant to Ordinance No. 1053, as
subsequently amended, is hereby restated in its entirety as set forth in the document
designated as THE CITY OF OKEECHOBEE GENERAL EMPLOYEES' RETIREMENT
SYSTEM, attached hereto and made a part hereof.
SECTION 2: Specific authority is hereby granted to codify and incorporate this
Ordinance in the existing Code of Ordinances of the City of Okeechobee.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
SECTION 4: 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 5: That this Ordinance shall become effective on October 1, 2016.
INTRODUCED for First Reading and set for Final Public Hearin on this 6th d y of
James E. Kirk, Mayor
September, 2016.
ATT ST:
Lane Gamiotea, C
C, City Clerk
PASSED AND ADOPTED after Second and Final Public Heari g this Z0th day of September,
2016. / C .
1 i
Jambs E. Kirk, Mayor
1
ATTEST:
au-
Lane Gamiotea, C C, City Clerk
REVIEWED FOR LEGAL SU-- FICIENCY:
John R. Cook, ity Attorney
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CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY AUTHORITY
GENERAL EMPLOYEES' RETIREMENT SYSTEM
SECTION 1. DEFINITIONS.
1. As used herein, unless otherwise defined or required by the context, the following
words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions with interest at the
rate of five and one - quarter percent (5 -1/4 %) per annum through September 30, 1993
and three percent (3 %) per annum thereafter compounded annually on September 30.
Interest is not prorated on Member contributions during a Plan Year. For those
Members who purchase Credited Service with interest or at no cost to the System, any
payment representing the amount attributable to Member contributions based on the
applicable Member contribution rate, and any payment representing interest and any
required actuarially calculated payments for the purchase of such Credited Service,
shall be included in Accumulated Contributions without the crediting of interest of three
percent (3 %) per annum.
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 (7.0 %) 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.
Average Final Compensation means one - twelfth (1/12) of the average Salary of the five
(5) best years of the last ten (10) years of Credited Service prior to retirement,
termination or death. A year shall be twelve (12) consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder at the
death of a Member who has or have been designated in writing by the Member and
filed with the Board. If no such designation is in effect, or if no person so designated is
living, at the time of death of the Member, the Beneficiary shall be the estate of the
Member.
Board means the Board of Trustees, which shall administer and manage the System
herein provided and serve as trustees of the Fund.
City means City of Okeechobee, Florida and the Okeechobee Utility Authority.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and fractional parts of years of
service as a General Employee with member contributions when required, omitting
intervening years or fractional parts of years when such Member was not employed by
the City as a General Employee. A Member may voluntarily leave his Accumulated
Contributions in the Fund for a period of five (5) years after leaving the employ of the
City pending the possibility of being reemployed as a General Employee, without losing
credit for the time that he was a Member of the System. If a non - vested Member leaves
the employ of the City and is not reemployed within five (5) years, his Accumulated
Contributions, if one - thousand dollars ($1,000.00) or less, will be returned. If a Member
who is not vested is not reemployed within five (5) years, his Accumulated
Contributions, if more than one - thousand dollars ($1,000.00), will be returned only upon
the written request of the Member and upon completion of a written election to receive
a cash lump sum or to rollover the lump sum amount on forms designated by the
Board. If a vested Member leaves the employ of the City, his Accumulated Contribu-
tions will be returned upon his written request. Upon return of his Accumulated
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Contributions, all of his rights and benefits under the System are forfeited and
terminated.
The years or fractional parts of a year that a Member 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 General Employee
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 re- employment under the provisions of USERRA.
B. The Member returns to his employment as a General Employee within one (1)
year from the earlier of the date of his military discharge or his release from
service, unless otherwise required by USERRA.
C. The Member deposits into the Fund the same sum that the Member would have
contributed if he had remained a General Employee during his absence. The
maximum credit for military service pursuant to this subsection shall be five (5)
years. The Member must deposit all missed contributions within a period equal to
three (3) times the period of military service, but not more than five (5) years
following reemployment or he will forfeit the right to receive Credited Service for
his military service pursuant to this Section.
D. This Section is intended to satisfy the minimum requirements of USERRA. To
the extent that this Section 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.
Effective Date means December 14, 1971.
General Employee means any actively employed person in the regular full -time service
of the City of Okeechobee or—the Okeechobee Uti'ity, Authority, including those in their
initial probationary employment period, but also including elected officials. This term
shall not include certified police officers and certified firefighters employed by the City o
Fund means the trust fund established herein as part of the System.
Member means an actively employed General Employee who fulfills the prescribed
membership requirements. Benefit improvements which, in the past, have been
provided for by amendments to the System adopted by City ordinance, and any benefit
improvements which might be made in the future shall apply prospectively and shall not
apply to Members who terminate employment or who retire prior to the effective date of
any ordinance adopting such benefit improvements, unless such ordinance specifically
provides to the contrary.
Plan Year means the twelve (12) month period beginning October 1 and ending
September 30 of the following year.
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Retiree means a Member who has entered retirement status.
Retirement means a Member's separation from City employment with eligibility for
immediate receipt of benefits under the System or entry into the Deferred Retirement
Option Plan.
Salary means the basic compensation for services rendered to the City as a General
Employee, plus all tax deferred, tax sheltered and tax exempt items of income, if
otherwise includible as basic compensation, derived from elective employee payroll
deductions or salary reductions, but excluding overtime, bonuses and any other
non - regular payment. Compensation in excess of the limitations set forth in Section
401(a)(17) of the Code as of the first day of the Plan Year shall be disregarded for any
purpose, including employee contributions or any benefit calculations. The annual
compensation of each member taken into account in determining benefits or employee
contributions for any Plan Year beginning on or after January 1, 2002, may not exceed
$200,000, as adjusted for cost -of- living increases in accordance with Code Section
401(a)(17)(B). Compensation means compensation during the fiscal year. The
cost -of- living adjustment in effect for a calendar year applies to annual compensation
for the ' determination period that begins with or within such calendar year. If the
determination period consists of fewer than 12 months, the annual compensation limit is
an amount equal to the otherwise applicable annual compensation limit multiplied by a
fraction, the numerator of which is the number of months in the short determination
period, and the denominator of which is 12. If the compensation for any prior
determination period is taken into account in determining a Member's contributions or
benefits for the current Plan Year, the compensation for such prior determination period
is subject to the applicable annual compensation limit in effect for that prior period. The
limitation on compensation for an "eligible employee" shall not be less than the amount
which was allowed to be taken into account hereunder as in effect on July 1, 1993.
"Eligible employee" is an individual who was a Member before the first plan year
beginning after December 31, 1995.
Spouse means the Member's or Retiree's spouse under applicable law at the time
benefits become payable.
System means the City of Okeechobee - e e - - - - _ -- - ' - - - General
Employees' Retirement System as contained herein and all amendments thereto.
2. Masculine Gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
A. All General Employees as of the Effective Date, and all future new General
Employees, shall become Members of this System as a condition of
employment.
B. Notwithstanding the previous paragraph, a new employee who is hired as the
City Administrator or Administrative Assistant
may, in the event
he has elected to participate in another pension program, upon his employment
as City Administrator or Administrative Assistant : - _ _ ' . - !' - _ _ , notify the
Board and the City of Okeechobee
Executive Director), in writing, of his election to not be a Member of the System.
In the event of any such election, he shall be barred from future membership in
the System. Contributions, if any, to the plan in accordance with Section 5, shall
not be required, he shall not be eligible to be elected as a Member Trustee on
the Board or vote for a Member Trustee, and he shall not be eligible for any
other benefits from the plan.
C. Notwithstanding any provision herein to the contrary, any future new elected
official, who is not already a Member of the System may, upon taking office,
elect to notify the Board and the City of Okeechobee, in writing, of his election to
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not be a Member of the System. In the event of such election, the elected official
shall be barred from future membership in the system. Contributions, if any, to
the plan in accordance with Section 5, shall not be required, he shall not be
eligible to be elected as a Member Trustee on the Board or vote for a Member
Trustee, and he shall not be eligible for any other benefits from the plan.
2. Designation of Beneficiary. Each General Employee shall complete a form prescribed
by the Board designating a Beneficiary or Beneficiaries.
SECTION 3. BOARD OF TRUSTEES.
1. The sole and exclusive administration of and responsibility for the proper operation of
the System and for making effective the provisions of this ordinance are hereby vested
in a Board of Trustees. The Board is hereby designated as the plan administrator. The
Board shall consist of five (5) Trustees, ore two of whom shall be a legal residents of
the City, who shall be appointed by the Okeechobee City Council, one of who shall be
, one and two of whom shall be a
Members of the System, who shall be elected by a majority
of the General Em • loyees who are Members of the System
The fifth Trustee shall be chosen by a
majority of the previous four Trustees as provided for herein, and such person's name
shall be submitted to the Okeechobee City Council. Upon receipt of the fifth person's
name, the Okeechobee City Council shall, as a ministerial duty, appoint such person to
the Board of Trustees as its fifth Trustee. The fifth Trustee shall have the same rights
as each of the other four Trustees appointed or elected as herein provided and shall
serve a four (4) year term unless he sooner vacates the office. Each resident Trustee
appointed by the City of Okeechobee e = - - ! ---ee - - - ' - - - shall serve
as Trustee for a period of four (4) years, unless he sooner vacates the office or is
sooner replaced by the appointing authority City of Okeechobee, at whose pleasure he
shall serve. Each Member Trustee shall serve as Trustee for a period of four (4) years,
unless he sooner leaves the employment of the City of Okeechobee or Okeechobee
Utility Authority as a General Employee or otherwise vacates his office as Trustee,
whereupon a successor shall be chosen in the same manner as the departing Trustee.
Each Trustee may succeed himself in office. DROP participants can be elected as and
vote for elected Trustees. The Board shall establish and administer the nominating and
election procedures for each election. The Board shall meet at least quarterly each
year. The Board shall be a legal entity with, in addition to other powers and
responsibilities contained herein, the power to bring and defend lawsuits of every kind,
nature, and description.
The current City Council appointed Trustee. Citv emplo ee elected Trustee and fifth
Trustee shall continue to serve as Trustees for the remainder of their terms following
the OUA plan separation as provided for in Section 26. A new City Council ap•ointed
Trustee and a Cit em lo ee elected Trustee shall be a. •ointed /elected for four 4
year terms commencing on October 1. 2016.
2. The Trustees shall, by a majority vote, elect a Chairman and a Secretary. The
Secretary of the Board shall keep a complete minute book of the actions, proceedings,
or hearings of the Board. The Trustees shall not receive any compensation as such, but
may receive expenses and per diem as provided by law.
3. Each Trustee shall be entitled to one vote on the Board. Three (3) affirmative votes
shall be necessary for any decision by the Trustees at any meeting of the Board. A
Trustee shall abstain from voting as the result of a conflict of interest and shall comply
with the provisions of Section 112.3143, Florida Statutes.
4. The Board shall engage such actuarial, accounting, legal, and other services as shall
be required to transact the business of the System. The compensation of all persons
engaged by the Board and all other expenses of the Board necessary for the operation
of the System shall be paid from the Fund at such rates and in such amounts as the
Board shall agree.
5. The duties and responsibilities of the Board shall include, but not necessarily be limited
to, the following:
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A. To construe the provisions of the System and determine all questions arising
thereunder.
B. To determine all questions relating to eligibility and membership.
C. To determine and certify the amount of all retirement allowances or other
benefits hereunder.
D. To establish uniform rules and procedures to be followed for administrative
purposes, benefit applications and all matters required to administer the System.
E. To distribute to Members, at regular intervals, information concerning the
System.
F. To receive and process all applications for benefits.
G. To authorize all payments whatsoever from the Fund, and to notify the disbursing
agent, in writing, of approved benefit payments and other expenditures arising
through operation of the System and Fund.
H. To have performed actuarial studies and valuations at least as often as required
by law, and make recommendations regarding any and all changes in the
provisions of the System.
I. To perform such other duties as are required to prudently administer the System.
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there exists the Fund, into which shall be deposited all of the
contributions and assets whatsoever attributable to the System.
2. The actual custody and supervision of the Fund (and assets thereof) shall be vested in
the Board. Payment of benefits and disbursements from the Fund shall be made by the
disbursing agent but only upon written authorization from the Board.
3. All funds of the system may be deposited by the Board with the Finance Director of the
City, acting in a ministerial capacity only, who shall be liable in the same manner and to
the same extent as he is liable for the safekeeping of funds for the City. However, any
funds so deposited with the Finance Director of the City shall be kept in a separate fund
by the Finance Director or clearly identified as such funds of the System. In lieu thereof,
the Board shall deposit the funds of the System in a qualified public depository as
defined in §280.02, Florida Statutes, which depository with regard to such funds shall
conform to and be bound by all of the provisions of Chapter 280, Florida Statutes. In
order to fulfill its investment responsibilities as set forth herein, the Board may retain the
services of a custodian bank, an investment advisor registered under the Investment
Advisors Act of 1940 or otherwise exempt from such required registration, an insurance
company, or a combination of these, for the purposes of investment decisions and
management. Such investment manager shall have discretion, subject to any guidelines
as prescribed by the Board, in the investment of all Fund assets.
4. All funds and securities of the System may be commingled in the Fund, provided that
accurate records are maintained at all times reflecting the financial composition of the
Fund, including accurate current accounts and entries as regards the following:
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. Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the City, and
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E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect a clear and
complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the System showing a detailed listing of assets and a statement of
all income and disbursements during the year. Such income and disbursements must
be reconciled with the assets at the beginning and end of the year. Such report shall
reflect a complete evaluation of assets on both a cost and market basis, as well as
other items normally included in a certified audit.
6. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to said Fund, subject, however, and
in any event to the authority and power of the Okeechobee City Council to
amend or terminate this Fund, provided that no amendment or Fund termination
shall ever result in the use of any assets of this Fund except for the payment of
regular expenses and benefits under this System, except as otherwise provided
herein. All contributions from time to time paid into the Fund, and the income
thereof, without distinction between principal and income, shall be held and
administered by the Board or its agent in the Fund and the Board shall not be
required to segregate or invest separately any portion of the Fund.
B. All monies paid into or held in the Fund shall be invested and reinvested by the
Board and the investment of all or any part of such funds shall be limited to:
(1) Annuity and life insurance contracts with life insurance companies in
amounts sufficient to provide, in whole or in part, the benefits to which all
of the Members in the Fund shall be entitled under the provisions of this
System and pay the initial and subsequent premium thereon.
(2) Time or savings accounts of a national bank, a state bank insured by the
Bank Insurance fund or a savings /building and loan association insured
Savings Association Insurance Fund which is administered by the Federal
Deposit Insurance Corporation or a state or federal chartered credit union
whose share accounts are insured by the National Credit Union Share
Insurance Fund.
(3)
Obligations of the United States or obligations guaranteed as to principal
and interest by the government of the United States or the an agency of
the government of the United States.
(4) Stocks, commingled or mutual funds, bonds or other evidences of
indebtedness, provided that:
(a) Except as provided in subparagraph (b), all individually held
securities and all securities in a commingled or mutual fund must
be issued or guaranteed by a corporation organized under the laws
of the United States, any state or organized territory of the United
States, or the District of Columbia.
(b) Up to fifteen percent (15 %) of the assets of the Fund may be
invested in foreign securities.
(c)
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The Board shall not invest more than five percent (5 %) of its assets
in the common stock, capital stock, or convertible securities of any
one issuing company, nor shall the aggregate investment in any
one issuing company exceed five percent (5 %) of the outstanding
capital stock of that company; nor shall the aggregate of its
investments in common stock, capital stock, international equity
securities and convertible securities at cost exceed sixty percent
(60 %) of the assets of the Fund.
Ordinance No. 1141 Page 7 of 35
C. At least once every three (3) years, and more often as determined by the Board,
the Board shall retain a professionally qualified independent consultant to
evaluate the performance of all current investment managers and make
recommendations regarding the retention of all such investment managers.
These recommendations shall be considered by the Board at its next regularly
scheduled meeting.
D. The Board may retain in cash and keep unproductive of income such amount of
the Fund as it may deem advisable, having regard for the cash requirements of
the System.
E. Neither the Board or any Trustee shall be liable for the making, retention or sale
of any investment or reinvestment made as herein provided, nor for any loss or
diminishment of the Fund, except that due to his or its own negligence, willful
misconduct or lack of good faith.
F The Board may cause any investment in securities held by it to be registered in
or transferred into its name as Trustee or into the name of such nominee as it
may direct, or it may retain them unregistered and in form permitting
transferability, but the books and records shall at all times show that all
investments are part of the Fund.
G. The Board is empowered, but is not required, to vote upon any stocks, bonds, or
securities of any corporation, association, or trust and to give general or specific
proxies or powers of attorney with or without power of substitution; to participate
in mergers, reorganizations, recapitalization, consolidations, and similar
transactions with respect to such securities; to deposit such stock or other
securities in any voting trust or any protective or like committee with the Trustees
or with depositories designated thereby; to amortize or fail to amortize any part
or all of the premium or discount resulting from the acquisition or disposition of
assets; and generally to exercise any of the powers of an owner with respect to
stocks, bonds, or other investments comprising the Fund which it may deem to
be to the best interest of the Fund to exercise.
H. The Board shall not be required to make any inventory or appraisal or report to
any court, nor to secure any order of court for the exercise of any power
contained herein.
Where any action which the Board is required to take or any duty or function
which it is required to perform either under the terms herein or under the general
law applicable to it as Trustee under this ordinance, can reasonably be taken or
performed only after receipt by it from a Member, the City, or any other entity, of
specific 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.
J. Any overpayments or underpayments from the Fund to a Member, Retiree or
Beneficiary caused by errors of computation shall be adjusted with interest at a
rate per annum approved by the Board in such a manner that the Actuarial
Equivalent of the benefit to which the Member, Retiree or Beneficiary was
correctly entitled to, shall be paid. Over payment shall be charged against
payments next succeeding the correction or collected in another manner if
prudent. Underpayments shall be made up from the Fund in a prudent manner.
K. The Board shall sustain no liability whatsoever for the sufficiency of the Fund to
meet the payments and benefits herein provided for.
L. In any application to or proceeding or action in the courts, only the Board shall be
a necessary party, and no Member or other person having an interest in the
Fund shall be entitled to any notice or service of process. Any judgment entered
in such a proceeding or action shall be conclusive upon all persons.
M. Any of the foregoing powers and functions reposed in the Board may be
performed or carried out by the Board through duly authorized agents, provided
that the Board at all times maintains continuous supervision over the acts of any
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such agent; provided further, that legal title to said Fund shall always remain in
the Board.
SECTION 5. CONTRIBUTIONS.
1. Member Contributions.
A. Amount. Each Member of the System shall be required to make regular
contributions to the Fund in the amount of six percent (6 %) of his Salary.
Member contributions withheld by the City on behalf of the Member shall be
deposited with the Board immediately after each pay period. The contributions
made by each Member to the Fund shall be designated as employer
contributions pursuant to §414(h) of the Code. Such designation is contingent
upon the contributions being excluded from the Members' gross income for
Federal Income Tax purposes. For all other purposes of the System, such
contributions shall be considered to be Member contributions.
B. Method. Such contributions shall be made by payroll deduction.
2. City Contributions. So long as this System is in effect, the City of Okeechobee and -the
shall make quarterly contributions to the Fund in an
amount equal to the required City contribution, as shown by the applicable actuarial
valuation of the System. The total cost for any year shall be apportioned equitably and
-- — — —
3. Other. Private donations, gifts and contributions may be deposited to the Fund, but
such deposits must be accounted for separately and kept on a segregated bookkeeping
basis. Funds arising from these sources may be used only for additional benefits for
Members, as determined by the Board, and may not be used to reduce what would
have otherwise been required City contributions.
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY.
1. Normal Retirement Aqe and Date. A Member's normal retirement age is the earlier of
the attainment of age sixty -five (65) and the completion of five (5) years of Credited
Service or upon the completion of thirty (30) years of Credited Service, regardless of
age. 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.
2. Normal Retirement Benefit. A Member retiring hereunder on or after his normal
retirement date shall receive a monthly benefit which shall commence on the first day of
the month coincident with or next following his retirement and be continued thereafter
during Member's lifetime, ceasing upon death, but with one hundred twenty (120)
monthly payments guaranteed in any event. The monthly retirement benefit shall equal
two and one -tenth percent (2.1%) of Average Final Compensation, for each year of
Credited Service.
3. Early Retirement Date. A Member may retire on his early retirement date which shall be
the first day of any month coincident with or next following the later of the attainment of
age fifty -five (55) and the completion of ten (10) years of Credited Service. Early
retirement under the System is retirement from employment with the City on or after the
early retirement date and prior to the normal retirement date.
4. Early Retirement Benefit. A member retiring hereunder on his early retirement date may
receive either a deferred or an immediate monthly retirement benefit payable in the
same form as for normal retirement as follows:
A. A deferred monthly retirement benefit which shall commence at age sixty -five
(65) and shall be continued on the first day of each month thereafter. The
amount of each such deferred monthly retirement benefit shall be determined in
the same manner as for retirement on his normal retirement date except that
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Credited Service and Average Final Compensation shall be determined as of his
early retirement date; or
B. An immediate monthly retirement benefit which shall commence on his early
retirement date and shall be continued on the first day of each month thereafter.
The benefit payable shall be as determined in paragraph A above, which is
reduced by two percent (2 %) for each year by which the commencement of
benefits precedes age sixty -five (65).
5. Required Distribution Date. The Member's benefit under this Section must begin to be
distributed to the Member no later than April 1 of the calendar year following the later of
the calendar year in which the Member attains age seventy and one -half (701/2) or the
calendar year in which the Member terminates employment with the City.
SECTION 7. DEATH BENEFITS.
1. Prior to Vesting or Eligibility for Retirement. The Beneficiary of a deceased Member
who was not receiving monthly benefit payments, or who was not yet vested or eligible
for retirement shall receive a refund of one hundred percent (100 %) of the Member's
Accumulated Contributions.
2. Deceased Members Vested or Eligible for Retirement. Any member, whether or not still
actively employed, who has a right to a vested accrued benefit, shall be eligible for a
death benefit if he dies before collecting any other benefits from this System. The
amount of the death benefit shall be equal to fifty percent (50 %) of the actuarially
equivalent single sum value of the Member's vested accrued benefit or his Accumulated
Contributions, whichever is greater.
If this single sum value is less than $5,000, it shall be paid in a lump sum. If the value
exceeds $5,000, the Beneficiary may elect payment under any of the optional forms
available for retirement benefits or a lump sum payment.
If a Member is eligible for early or normal retirement, but remains in employment and
dies while so employed, the death benefit shall be determined as follows: It shall be
assumed that such deceased Member had retired immediately preceding his date of
death and elected the Ten Year Certain and Life Thereafter option. However, the death
benefit shall be equal to fifty percent (50 %) of the actuarially equivalent single sum
value of the Member's vested accrued benefit, if larger than the Ten Year Certain and
Life Thereafter option, described earlier in this Section.
SECTION 8. DISABILITY.
1. Disability Benefits. Any Member who shall become totally and permanently disabled to
the extent that he is unable, by reason of a medically determinable physical or mental
impairment, to perform the duties that the General Employee was assigned at the time
of the impairment and is unable to perform the duties of another General Employee
position which the City of Okeechobee or the Okeechobce Utility Authority makes
available to him in a similar job classification and rank at no reduction in Salary for
which the General Employee is qualified by reason of training, education, or
experience, whether or not such disability was directly caused by the performance of
his duty as a General Employee. Upon establishing the same to the satisfaction of the
Board, the General Employee shall be entitled to a monthly pension determined in the
same manner as for Early Retirement set forth in Section 6, subsection 4.B, if the
benefit begins at or after age fifty -five (55), and if the benefit begins prior to age fifty -five
(55), the benefit shall be actuarially reduced for the period prior to age fifty -five (55).
Terminated persons, either vested or non - vested, are not eligible for disability benefits.
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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2. Conditions Disqualifying Disability Benefits. Each Member who is claiming disability
benefits shall establish, to the satisfaction of the Board, that such disability was not
occasioned primarily by:
A. Excessive or habitual use of any drugs, intoxicants, or alcohol.
B. Injury or disease sustained while willfully and illegally participating in fights, riots
or civil insurrections.
C. Injury or disease sustained while committing a crime.
D. Injury or disease sustained while serving in any branch of the Armed Forces.
E. Injury or disease sustained after his employment as a General Employee with
the City of Okeechobee or the Okeechobcc Utility Authority shall have
terminated.
F. Willful, wanton or intentional misconduct or gross negligence of the Member.
G. Injury or disease sustained by the Member while working for anyone other than
the City of Okeechobee - - ! - - - - - .. - ' ' - - - ' and arising out of
such employment.
H. A condition pre- existing the General Employee's membership in the System. No
Member shall be entitled to a disability pension because of or due to the
aggravation of a specific injury, impairment or other medical condition
pre- existing at the time of membership in the System, provided that such
pre- existing condition and its relationship to a later injury, impairment or other
medical condition be established by competent substantial evidence. Nothing
herein shall be construed to preclude a disability pension to a Member who, after
membership in the System, suffers an injury, impairment or other medical
condition different from some other injury, impairment, or other medical condition
existing at or prior to said membership.
3. Physical Examination Requirement. A Member shall not become eligible for disability
benefits until and unless he undergoes a physical examination by a qualified physician
or physicians and /or surgeon or surgeons, who shall be selected by the Board for that
purpose. The Board shall not select the Member's treating physician or surgeon for this
purpose except in an unusual case where the Board determines that it would be
reasonable and prudent to do so.
Any Retiree receiving disability benefits under provisions of this ordinance may be
required by the Board to submit sworn statements of his condition accompanied by a
physician's statement (provided at the Retiree's expense) to the Board annually and
may be required by the Board to undergo additional periodic re- examinations by a
qualified physician or physicians and /or surgeon or surgeons who shall be selected by
the Board, to determine if such disability has ceased to exist. If the Board finds that the
Retiree is no longer permanently and totally disabled to the extent that he is unable to
render useful and efficient service as a General Employee, the Board shall recommend
to the City that the Retiree be returned to performance of duty as a General Employee,
and the Retiree so returned shall enjoy the same rights that he had at the time he was
placed upon pension. In the event the Retiree so ordered to return shall refuse to
comply with the order within thirty (30) days from the issuance thereof, he shall forfeit
the right to his pension.
The cost of the physical examination and /or re- examination of the Member claiming or
the Retiree receiving disability benefits shall be borne by the Fund. All other reasonable
costs as determined by the Board incident to the physical examination, such as, but not
limited to, transportation, meals and hotel accommodations, shall be borne by the Fund.
If the Retiree recovers from disability and reenters the service of the City as a General
Employee, his service will be deemed to have been continuous, but the period
beginning with the first month for which Retiree received a disability retirement payment
and ending with the date he reentered the service of the City will not be considered as
Credited Service for the purposes of this System.
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The Board shall have the power and authority to make the final decisions regarding all
disability claims.
5. Disability Payments. The monthly benefit to which a Member is entitled in the event of
the Member's disability retirement shall be payable on the first day of the first month
after the Board determines such entitlement. However, the monthly retirement income
shall be payable as of the date the Board determined such entitlement, and any portion
due for a partial month shall be paid together with the first payment. The last payment
will be:
A. If the Retiree recovers from the disability, the payment due next preceding the
date of such recovery, or
B. If the Retiree dies without recovering from disability, the payment due next
preceding his death or the 120th monthly payment, whichever is later.
Provided, however, the disability Retiree may select, at any time prior to the date
on which benefit payments begin, an optional form of benefit payment as
described in Section 10, subsection 1.A. or 1.B., which shall be the Actuarial
Equivalent of the normal form of benefit.
6. Workers' Compensation. When a Retiree is receiving a disability pension and workers'
compensation benefits pursuant to Florida Statute Chapter 440, for the same disability,
and the total monthly benefits received from both exceed 100% of the Member's
average monthly wage, as defined in Chapter 440, Florida Statutes, the disability
pension benefit shall be reduced so that the total monthly amount received by the
Retiree does not exceed 100% of such average monthly wage. The amount of any
lump sum workers' compensation payment shall be converted to an equivalent monthly
benefit payable for ten (10) Years Certain by dividing the lump sum amount by 83.9692.
SECTION 9. VESTING.
If a Member terminates his employment as a General Employee, either voluntarily or by
discharge, and is not eligible for any other benefits under this System, the Member shall be
entitled to the following:
1. If the Member has less than five (5) years Credited Service upon termination, the
Member shall be entitled to a refund of his Accumulated Contributions or the Member
may leave it deposited with the Fund.
2. If the Member has five (5) or more years of Credited Service upon termination, the
Member shall be entitled to a monthly retirement benefit, determined in the same
manner as for normal or early retirement and based upon the Member's Credited
Service, Average Final Compensation and the benefit accrual rate as of the date of
termination, payable to him commencing at age 65, or age 55 reduced as for early
retirement from age 65, provided he does not elect to withdraw his Accumulated
Contributions and provided the Member survives to his otherwise normal or early
retirement date. If the Member does not withdraw his Accumulated Contributions and
does not survive to his otherwise normal or early retirement date, his designated
Beneficiary shall be entitled to a benefit as provided herein for a deceased Member,
vested or eligible for retirement under pre- retirement death.
SECTION 10. OPTIONAL FORMS OF BENEFITS.
1. In lieu of the amount and form of retirement income payable in the event of normal or
early retirement as specified herein, a Member, upon written request to the Board may
elect to receive a retirement income or benefit of equivalent actuarial value payable in
accordance with one of the following options:
A. A retirement income of a modified monthly amount, payable to the Member
during the lifetime of the Member and following the death of the Member, 100 %,
75 %, 66 -2/3% or 50% of such monthly amount payable to a joint pensioner for
his lifetime. Except where the Retiree's joint pensioner is his Spouse, the
payments to the joint pensioner as a percentage of the payments to the Retiree
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shall not exceed the applicable percentage provided for in the applicable table in
the Treasury regulations. (See Q & A -2 of 1.401(a)(9) -6)
B. A retirement income of a modified monthly amount for the lifetime of the Member
only.
C. If a Member retires prior to the time at which social security benefits are payable,
he may elect to receive an increased retirement benefit until such time as social
security benefits shall be assumed to commence and a reduced benefit
thereafter in order to provide, to as great an extent as possible, a more level
retirement allowance during the entire period of retirement. The amounts
payable shall be as recommended by the actuaries for the System, based upon
the social security law in effect at the time of the Member's retirement. This
option may be combined with other optional forms of benefits.
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
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 A, 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 or more primary Beneficiaries where applicable. If a Member has
elected an option with a joint pensioner or Beneficiary and Member's retirement income
benefits have commenced, Member may thereafter change his designated Beneficiary
at any time, but may change his joint pensioner only if the designated joint pensioner
and the Member were married at the time of Member's retirement and are divorced
subsequent thereto and the joint pensioner is alive at the time of the change. 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.
3. The consent of a Member's or Retiree's joint pensioner or Beneficiary to any such
change shall not be required. The rights of all previously- designated Beneficiaries to
receive benefits under the System shall thereupon cease.
4. Upon change of a Retiree's joint pensioner in accordance with this Section, the amount
of the retirement income payable to the Retiree shall be actuarially determined to take
into account the age and sex of the former joint pensioner, the new joint pensioner and
the Retiree. Any such Retiree shall pay the actuarial recalculation expenses. Each
request for a change will be made in writing on a form prepared by the Board and on
completion will be filed with the Board. In the event that no designated Beneficiary
survives the Retiree, such benefits as are payable in the event of the death of the
Retiree subsequent to his retirement shall be paid as provided in Section 11.
5. Retirement income payments shall be made under the option elected in accordance
with the provisions of this Section and shall be subject to the following limitations:
A. If a Member dies prior to his normal retirement date or early retirement date,
whichever first occurs, no retirement benefit will be payable under the option to
any person, but the benefits, if any, will be determined under Section 7.
B. If the designated Beneficiary (or Beneficiaries) or joint pensioner dies before the
Member's retirement under the System, the option elected will be canceled
automatically and a retirement income of the normal form and amount will be
payable to the Member upon his retirement as if the election had not been made,
unless a new election is made in accordance with the provisions of this Section
or a new Beneficiary is designated by the Member prior to his retirement.
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C. If both the retired Member and the Beneficiary (or Beneficiaries) designated by
Member or Retiree die before the full payment has been effected under any
option providing for payments for a period certain and life thereafter, made
pursuant to the provisions of subsection 1, the Board may, in its discretion, direct
that the commuted value of the remaining payments be paid in a lump sum and
in accordance with Section 11.
D. If a Member continues beyond his normal retirement date pursuant to the
provisions of Section 6, subsection 1, and dies prior to his actual retirement and
while an option made pursuant to the provisions of this Section is in effect,
monthly retirement income payments will be made, or a retirement benefit will be
paid, under the option to a Beneficiary (or Beneficiaries) designated by the
Member in the amount or amounts computed as if the Member had retired under
the option on the date on which his death occurred.
E. The Member's benefit under this Section must begin to be distributed to the
Member no later than April 1 of the calendar year following the later of the
calendar year in which the Member attains age seventy and one -half (701/2) or
the calendar year in which the Member terminates employment with the City.
6. A Retiree may not change his retirement option after the date of cashing or depositing
his first retirement check.
7 Notwithstanding anything herein to the contrary, the Board in its discretion, may elect to
make a lump sum payment to a Member or a Member's Beneficiary in the event that the
total commuted value of the monthly income payments to be paid do not exceed one
thousand dollars ($1,000). Any such payment made to any person pursuant to the
power and discretion conferred upon the Board by the preceding sentence shall
operate as a complete discharge of all obligations under the System with regard to such
Member and shall not be subject to review by anyone, but shall be final, binding and
conclusive on all persons.
SECTION 11. BENEFICIARIES.
1. Each Member or Retiree may, on a form provided for that purpose, signed and filed
with the Board, designate a Beneficiary (or Beneficiaries) to receive the benefit, if any,
which may be payable in the event of his death. Each designation may be revoked or
changed by such Member or Retiree by signing and filing with the Board a new
designation -of- beneficiary form. Upon such change, the rights of all previously
designated Beneficiaries to receive any benefits under the System shall cease.
2. If a deceased Member or Retiree failed to name a Beneficiary in the manner prescribed
in subsection 1, or if the Beneficiary (or Beneficiaries) named by a deceased Member
or Retiree predeceases the Member or Retiree, the death benefit, if any, which may be
payable under the System with respect to such deceased Member or Retiree, shall be
paid to the estate of the Member or Retiree and the Board, in its discretion, may direct
that the commuted value of the remaining monthly income benefits be paid in a lump
sum.
3. Any payment made to any person pursuant to this Section shall operate as a complete
discharge of all obligations under the System with regard to the deceased Member and
any other persons with rights under the System and shall not be subject to review by
anyone but shall be final, binding and conclusive on all persons ever interested
hereunder.
SECTION 12. CLAIMS PROCEDURES.
1. The Board shall establish administrative claims procedures to be utilized in processing
written requests ( "claims "), on matters which affect the substantial rights of any person
( "Claimant "), including Members, Retirees, Beneficiaries, or any person affected by a
decision of the Board.
2. The Board shall have the power to subpoena and require the attendance of witnesses
and the production of documents for discovery prior to and at any proceedings provided
for in the Board's claims procedures. The Claimant may request in writing the issuance
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of subpoenas by the Board. A reasonable fee may be charged for the issuance of any
subpoenas not to exceed the fees set forth in Florida Statutes.
SECTION 13. ROSTER OF RETIREES.
The Secretary of the Board shall keep a record of all persons enjoying a pension under the
provisions of this ordinance in which it shall be noted the time when the pension is allowed
and when the same shall cease to be paid. Additionally, the Secretary shall keep a record of
all Members employed by the City in such a manner as to show the name, address, date of
employment and date of termination of employment.
SECTION 14. MAXIMUM PENSION.
1. Basic Limitation. Notwithstanding any other provisions of this System to the contrary,
the Member contributions paid to, and retirement benefits paid from, the System shall
be limited to such extent as may be necessary to conform to the requirements of Code
Section 415 for a qualified retirement plan. Before January 1, 1995, a plan member
may not receive an annual benefit that exceeds the limits specified in Code Section
415(b), subject to the applicable adjustments in that section. On and after January 1,
1995, a plan member may not receive an annual benefit that exceeds the dollar amount
specified in Code Section 415(b)(1)(A) ($160,000), subject to the applicable
adjustments in Code Section 415(b) and subject to any additional limits that may be
specified in this System. For purposes of this Section, "limitation year" shall be the
calendar year.
For purposes of Code Section 415(b), the "annual benefit" means a benefit payable
annually in the form of a straight life annuity (with no ancillary benefits) without regard to
the benefit attributable to after -tax employee contributions (except pursuant to Code
Section 415(n) and to rollover contributions (as defined in Code Section 415(b)(2)(A)).
The "benefit attributable" shall be determined in accordance with Treasury Regulations.
2. Adjustments to Basic Limitation for Form of Benefit. If the benefit under the plan is other
than the annual benefit described in subsection 1, then the benefit shall be adjusted so
that it is the equivalent of the annual benefit, using factors prescribed in Treasury
Regulations. If the form of the benefit without regard to any automatic benefit increase
feature is not a straight life annuity or a qualified joint and survivor annuity, then the
preceding sentence is applied by either reducing the Code Section 415(b) limit
applicable at the annuity starting date or adjusting the form of benefit to an actuarially
equivalent amount (determined using the assumptions specified in Treasury Regulation
Section 1.415(b)- 1(c)(2)(ii)) that takes into account the additional benefits under the
form of benefit as follows:
A. For a benefit paid in a form to which Section 417(e)(3) of the Code does not
apply (generally, a monthly benefit), the actuarially equivalent straight life annuity
benefit that is the greater of:
(1) The annual amount of the straight life annuity (if any) payable to the
Member under the Plan commencing at the same annuity starting date as
the form of benefit to the Member, or
(2) The annual amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present value as the form
of benefit payable to the Member, computed using a five percent (5 %)
interest assumption (or the applicable statutory interest assumption) and
(I) for years prior to January 1, 2009, the applicable mortality tables
described in Treasury Regulation Section 1.417(e)- 1(d)(2) (Revenue
Ruling 2001 -62 or any subsequent Revenue Ruling modifying the
applicable provisions of Revenue Rulings 2001 -62), and (ii) for years after
December 31, 2008, the applicable mortality tables described in Section
417(e)(3)(B) of the Code (Notice 2008 -85 or any subsequent Internal
Revenue Service guidance implementing Section 417(e)(3)(B) of the
Code); or
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B. For a benefit paid in a form to which Section 417(e)(3) of the Code applies
(generally, a lump sum benefit), the actuarially equivalent straight life annuity
benefit that is the greatest of:
(1)
The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular
form of benefit payable, computed using the interest rate and mortality
table, or tabular factor, specified in the Plan for actuarial experience;
(2) The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular
form of benefit payable, computed using a five and one half percent
(5.5 %) interest assumption (or the applicable statutory interest
assumption) and (I) for years prior to January 1, 2009, the applicable
mortality tables for the distribution under Treasury Regulation Section
1.417(e)- 1(d)(2) (the mortality table specified in Revenue Ruling 2001 -62
or any subsequent Revenue Ruling modifying the applicable provisions of
Revenue Ruling 2001 -62), and (ii) for years after December 31, 2008, the
applicable mortality tables described in Section 417(e)(3)(B) of the Code
(Notice 2008 -85 or any subsequent Internal Revenue Service guidance
implementing section 417(e)(3)(B) of the Code); or
(3)
The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular
form of benefit payable (computed using the applicable interest rate for
the distribution under Treasury Regulation Section 1.417(e)- 1(d)(3) (the
30 -year Treasury rate (prior to January 1, 2007, using the rate in effect for
the month prior to retirement, and on and after January 1, 2007, using the
rate in effect for the first day of the Plan Year with a one -year stabilization
period)) and (I) for years prior to January 1, 2009, the applicable mortality
tables for the distribution under Treasury Regulation Section
1.417(e)- 1(d)(2) (the mortality table specified in Revenue Ruling 2001 -62
or any subsequent Revenue Ruling modifying the applicable provisions of
Revenue Ruling 2001 -62), and (ii) for years after December 31, 2008, the
applicable mortality tables described in Section 417(e)(3)(B) of the Code
(Notice 2008 -85 or any subsequent Internal Revenue Service guidance
implementing Section 417(e)(3)(B) of the Code), divided by 1.05.
C. The actuary may adjust the 415(b) limit at the annuity starting date in accordance
with subsections A. and B above.
3. Benefits Not Taken into Account. For purposes of this Section, the following benefits
shall not be taken into account in applying these limits:
A. Any ancillary benefit which is not directly related to retirement income benefits;
B. Any other benefit not required under §415(b)(2) of the Code and Regulations
thereunder to be taken into account for purposes of the limitation of Code
Section 415(b)(1); and
C. That portion of any joint and survivor annuity that constitutes a qualified joint and
survivor annuity.
4. COLA Effect. Effective on and after January 1, 2003, for purposes of applying the limits
under Code Section 415(b) (the "Limit "), the following will apply:
A. A Member's applicable limit will be applied to the Member's annual benefit in the
Member's first limitation year of benefit payments without regard to any
automatic cost of living adjustments;
B. thereafter, in any subsequent limitation year, a Member's annual benefit,
including any automatic cost of living increases, shall be tested under the then
applicable benefit limit including any adjustment to the Code Section
415(b)(1)(A) dollar limit under Code Section 415(d), and the regulations
thereunder; but
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C. in no event shall a Member's benefit payable under the System in any limitation
year be greater than the limit applicable at the annuity starting date, as increased
in subsequent years pursuant to Code Section 415(d) and the regulations
thereunder.
Unless otherwise specified in the System, for purposes of applying the limits
under Code Section 415(b), a Member's applicable limit will be applied taking
into consideration cost of living increases as required by Section 415(b) of the
Code and applicable Treasury Regulations.
5. Other Adjustments in Limitations.
A. In the event the Member's retirement benefits become payable before age
sixty -two (62), the limit prescribed by this Section shall be reduced in accordance
with regulations issued by the Secretary of the Treasury pursuant to the
provisions of Code Section 415(b) of the Code, so that such limit (as so reduced)
equals an annual straight life benefit (when such retirement income benefit
begins) which is equivalent to a one hundred sixty thousand dollar ($160,000)
annual benefit beginning at age sixty -two (62).
B. In the event the Member's benefit is based on at least fifteen (15) years of
Credited Service as a full -time employee of the police or fire department of the
City, the adjustments provided for in A. above shall not apply.
C. The reductions provided for in A. above shall not be applicable to disability
benefits pursuant to Section 8, or pre- retirement death benefits paid pursuant to
Section 7.
D. In the event the Member's retirement benefit becomes payable after age
sixty -five (65), for purposes of determining whether this benefit meets the limit
set forth in subsection 1 herein, such benefit shall be adjusted so that it is
actuarially equivalent to the benefit beginning at age sixty -five (65). This
adjustment shall be made in accordance with regulations promulgated by the
Secretary of the Treasury or his delegate.
6. Less than Ten (10) Years of Participation. The maximum retirement benefits payable
under this 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.
7 Participation in Other Defined Benefit Plans. The limit of this Section with respect to any
Member who at any time has been a member in any other defined benefit plan as
defined in Code Section 414(j) maintained by the City shall apply as if the total benefits
payable under all City defined benefit plans in which the Member has been a member
were payable from one plan.
8. Ten Thousand Dollar ($10,000) Limit; Less Than Ten Years of Service. Notwithstanding
anything in this Section 14, 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 14 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 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 under this subsection 8. of Section 14 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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9. Reduction of Benefits. Reduction of benefits and /or contributions to all plans, where
required, shall be accomplished by first reducing the Member's benefit under any
defined benefit plans in which Member participated, such reduction to be made first with
respect to the plan in which Member most recently accrued benefits and thereafter in
such priority as shall be determined by the Board and the plan administrator of such
other plans, and next, by reducing or allocating excess forfeitures for defined
contribution plans in which the Member participated, such reduction to be made first
with respect to the plan in which Member most recently accrued benefits and thereafter
in such priority as shall be established by the Board and the plan administrator for such
other plans provided, however, that necessary reductions may be made in a different
manner and priority pursuant to the agreement of the Board and the plan administrator
of all other plans covering such Member.
10. Service Credit Purchase Limits.
A. Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a Member makes one or more
contributions to purchase permissive service credit under the System, as allowed
in Section 23 and 27, then the requirements of this Section will be treated as met
only if:
(1) the requirements of Code Section 415(b) are met, determined by treating
the accrued benefit derived from all such contributions as an annual
benefit for purposes of Code Section 415(b), or
(2) the requirements of Code Section 415(c) are met, determined by treating
all such contributions as annual additions for purposes of Code Section
415(c).
For purposes of applying subparagraph (1), the System will not fail to
meet the reduced limit under Code Section 415(b)(2)(c) solely by reason
of this subparagraph, and for purposes of applying subparagraph (2) the
System will not fail to meet the percentage limitation under Section
415(c)(1)(B) of the Code solely by reason of this subparagraph.
B. For purposes of this subsection the term "permissive service credit" means
service credit—
(1) recognized by the System for purposes of calculating a Member's benefit
under the plan,
(2) which such Member has not received under the plan, and
(3) which such Member may receive only by making a voluntary additional
contribution, in an amount determined under the System, which does not
exceed the amount necessary to fund the benefit attributable to such
service credit.
Effective for permissive service credit contributions made in limitation
years beginning after December 31, 1997, such term may, if otherwise
provided by the System, include service credit for periods for which there
is no performance of service, and, notwithstanding clause B.(2), may
include service credited in order to provide an increased benefit for
service credit which a Member is receiving under the System.
11. Contribution Limits.
A. For purposes of applying the Code Section 415(c) limits which are incorporated
by reference and for purposes of this subsection 11., only and for no other
purpose, the definition of compensation where applicable will be compensation
actually paid or made available during a limitation year, except as noted below
and as permitted by Treasury Regulations Section 1.415(c) -2, or successor
regulations. Unless another definition of compensation that is permitted by
Treasury Regulations Section 1.415(c) -2, or successor regulation, is specified by
Ordinance No. 1141 Page 18 of 35
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the System, compensation will be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to an employee by an
employer for which the employer is required to furnish the employee a written
statement under Code Sections 6041(d), 6051(a)(3) and 6052 and will be
determined without regard to any rules under Code Section 3401(a) that limit the
remuneration included in wages based on the nature or location of the
employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2).
(1) However, for limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be included
in compensation but for an election under Code Sections 125(a),
402(e)(3), 402(h)(1)(B), 402(k), or 457(b). For limitation years beginning
after December 31, 2000, compensation will also include any elective
amounts that are not includible in the gross income of the employee by
reason of Code Section 132(f)(4).
(2) For limitation years beginning on and after January 1, 2007,
compensation for the limitation year will also include compensation paid
by the later of 21/2 months after an employee's severance from
employment or the end of the limitation year that includes the date of the
employee's severance from employment if:
(a) the payment is regular compensation for services during the
employee's regular working hours, or compensation for services
outside the employee's regular working hours (such as overtime or
shift differential), commissions, bonuses or other similar payments,
and, absent a severance from employment, the payments would
have been paid to the employee while the employee continued in
employment with the employer; or
(3)
(b) the payment is for unused accrued bona fide sick, vacation or other
leave that the employee would have been able to use if
employment had continued.
Back pay, within the meaning of Treasury Regulations
Section 1.415(c)- 2(g)(8), shall be treated as compensation for the
limitation year to which the back pay relates to the extent the back pay
represents wages and compensation that would otherwise be included
under this definition.
B. Notwithstanding any other provision of law to the contrary, the Board may modify
a request by a Member to make a contribution to the System if the amount of the
contribution would exceed the limits provided in Code Section 415 by using the
following methods:
(1) If the law requires a lump sum payment for the purchase of service credit,
the Board may establish a periodic payment deduction plan for the
Member to avoid a contribution in excess of the limits under Code
Sections 415(c) or 415(n).
(2) If payment pursuant to subparagraph (1) will not avoid a contribution in
excess of the limits imposed by Code Section 415(c), the Board may
either reduce the Member's contribution to an amount within the limits of
that section or refuse the Member's contribution.
C. If the annual additions for any Member for a limitation year exceed the limitation
under Section 415(c) of the Code, the excess annual addition will be corrected
as permitted under the Employee Plans Compliance Resolution System (or
similar IRS correction program).
D. For limitation years beginning on or after January 1, 2009, a Member's
compensation for purposes of this subsection 11. shall not exceed the annual
limit under Section 401(a)(17) of the Code.
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12. Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
A. The normal retirement benefit or pension payable to a Retiree who becomes a
Member of the System and who has not previously participated in such System,
on or after January 1, 1980, shall not exceed one hundred percent (100 %) of his
Average Final Compensation. However, nothing contained in this Section shall
apply to supplemental retirement benefits or to pension increases attributable to
cost -of- living increases or adjustments.
B. No Member of the System shall be allowed to receive a retirement benefit or
pension which is in part or in whole based upon any service with respect to which
the Member is already receiving, or will receive in the future, a retirement benefit
or pension from a different employer's retirement system or plan. This restriction
does not apply to social security benefits or federal benefits under Chapter 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 15. MINIMUM DISTRIBUTION OF BENEFITS.
1. General Rules.
A. Effective Date. Effective as of January 1, 1989, the Plan will pay all benefits in
accordance with a good faith interpretation of the requirements of Code Section
401(a)(9) and the regulations in effect under that section, as applicable to a
governmental plan within the meaning of Code Section 414(d). Effective on and
after January 1, 2003, the Plan is also subject to the specific provisions
contained in this Section. The provisions of this Section will apply for purposes of
determining required minimum distributions for calendar years beginning with the
2003 calendar year.
B. Precedence. The requirements of this Section will take precedence over any
inconsistent provisions of the Plan.
C. TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
Section other than this subsection 1.C., distributions may be made under a
designation made before January 1, 1984, in accordance with Section 242(b)(2)
of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of
the plan that related to Section 242(b)(2) of TEFRA.
2. Time and Manner of Distribution.
A. Required Beginning Date. The Member's entire interest will be distributed, or
begin to be distributed, to the Member no later than the Member's required
beginning date which shall not be later than April 1 of the calendar year following
the later of the calendar year in which the Member attains age seventy and
one -half (70 1/2) or the calendar year in which the Member terminates
employment with the City.
B. Death of Member Before Distributions Begin. If the Member dies before
distributions begin, the Member's entire interest will be distributed, or begin to be
distributed no later than as follows:
(1) If the Member's surviving spouse is the Member's sole designated
beneficiary, then distributions to the surviving spouse will begin by
December 31 of the calendar year immediately following the calendar
year in which the Member died, or by a date on or before December 31 of
the calendar year in which the Member would have attained age 70 1/2, if
later, as the surviving spouse elects.
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(2) If the Member's surviving spouse is not the Member's sole designated
beneficiary, then, distributions to the designated beneficiary will begin by
December 31 of the calendar year immediately following the calendar
year in which the Member died.
(3)
If there is no designated beneficiary as of September 30 of the year
following the year of the Member's death, the Member's entire interest will
be distributed by December 31 of the calendar year containing the fifth
anniversary of the Member's death.
(4) If the Member's surviving spouse is the Member's sole designated
beneficiary and the surviving spouse dies after the Member but before
distributions to the surviving spouse begin, this subsection 2.B., other than
subsection 2.B.(1), will apply as if the surviving spouse were the Member.
For purposes of this subsection 2.B., distributions are considered to begin
on the Member's required beginning date or, if subsection 2.B.(4) applies,
the date of distributions are required to begin to the surviving spouse
under subsection 2.B.(1). If annuity payments irrevocably commence to
the Member before the Member's required beginning date (or to the
Member's surviving spouse before the date distributions are required to
begin to the surviving spouse under subsection 2.B.(1)), the date
distributions are considered to begin is the date distributions actually
commence.
C. Death After Distributions Begin. If the Member dies after the required distribution
of benefits has begun, the remaining portion of the Member's interest must be
distributed at least as rapidly as under the method of distribution before the
Member's death.
D. Form of Distribution. Unless the Member's interest is distributed in the form of an
annuity purchased from an insurance company or in a single sum on or before
the required beginning date, as of the first distribution calendar year distributions
will be made in accordance with this Section. If the Member's interest is
distributed in the form of an annuity purchased from an insurance company,
distributions thereunder will be made in accordance with the requirements of
Section 401(a)(9) of the Code and Treasury regulations. Any part of the
Member's interest which is in the form of an individual account described in
Section 414(k) of the Code will be distributed in a manner satisfying the
requirements of Section 401(a)(9) of the Code and Treasury regulations that
apply to individual accounts.
3. Determination of Amount to be Distributed Each Year.
A. General Requirements. If the Member's interest is paid in the form of annuity
distributions under the Plan, payments under the annuity will satisfy the following
requirements:
(1) The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
(2) The Member's entire interest must be distributed pursuant to Section 6,
Section 7, Section 9, or Section 10 (as applicable) and in any event over a
period equal to or Tess than the Member's life or the lives of the Member
and a designated beneficiary, or over a period not extending beyond the
life expectancy of the Member or of the Member and a designated
beneficiary. The life expectancy of the Member, the Member's spouse, or
the Member's beneficiary may not be recalculated after the initial
determination for purposes of determining benefits.
B. Amount Required to be Distributed by Required Beginning Date. The amount
that must be distributed on or before the Member's required beginning date (or, if
the Member dies before distributions begin, the date distributions are required to
begin under Section 7) is the payment that is required for one payment interval.
The second payment need not be made until the end of the next payment
interval even if that payment interval ends in the next calendar year. Payment
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intervals are the periods for which payments are received, e.g., monthly. All of
the Member's benefit accruals as of the last day of the first distribution calendar
year will be included in the calculation of the amount of the annuity payments for
payment intervals ending on or after the Member's required beginning date.
C. Additional Accruals After First Distribution Calendar Year. Any additional benefits
accruing to the Member in a calendar year after the first distribution calendar
year will be distributed beginning with the first payment interval ending in the
calendar year immediately following the calendar year in which such amount
accrues.
4. General Distribution Rules.
A. The amount of an annuity paid to a Member's beneficiary may not exceed the
maximum determined under the incidental death benefit requirement of Code
Section 401(a)(9)(G), and effective for any annuity commencing on or after
January 1, 2008, the minimum distribution incidental benefit rule under Treasury
Regulation Section 1.401(a)(9) -6, Q &A -2.
B. The death and disability benefits provided by the Plan are limited by the
incidental benefit rule set forth in Code Section 401(a)(9)(G) and Treasury
Regulation Section 1.401- 1(b)(1)(I) or any successor regulation thereto. As a
result, the total death or disability benefits payable may not exceed 25% of the
cost for all of the Members' benefits received from the retirement system.
5. Definitions.
A. Designated Beneficiary. The individual who is designated as the beneficiary
under the Plan and is the designated beneficiary under Section 401(a)(9) of the
Code and Section 1.401(a)(9) -1, Q &A -4, of the Treasury regulations.
B. Distribution Calendar Year. A calendar year for which a minimum distribution is
required. For distributions beginning before the Member's death, the first
distribution calendar year is the calendar year immediately preceding the
calendar year which contains the Member's required beginning date. For
distributions beginning after the Member's death, the first distribution calendar
year is the calendar year in which distributions are required to begin pursuant to
Section 7.
SECTION 16. MISCELLANEOUS PROVISIONS.
1. Interest of Members in System. All assets of the Fund are held in trust, and at no time
prior to the satisfaction of all liabilities under the System with respect to Members and
their Spouses or Beneficiaries, shall any part of the corpus or income of the Fund be
used for or diverted to any purpose other than for their exclusive benefit.
2. No Reduction of Accrued Benefits. No amendment or ordinance shall be adopted by
the City Council of the City of Okeechobee which shall have the effect of reducing the
then vested accrued benefits of Members or a Member's Beneficiaries.
3. Qualification of System. It is intended that the System will constitute a qualified pension
plan under the applicable provisions of the Code for a qualified plan under Code
Section 401(a) and a governmental plan under Code Section 414(d), as now in effect or
hereafter amended. Any modification or amendment of the System may be made
retroactively, if necessary or appropriate, to qualify or maintain the System as a Plan
meeting the requirements of the applicable provisions of the Code as now in effect or
hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as
now in effect or hereafter amended or adopted, and the regulations issued thereunder.
4. Use of Forfeitures. Forfeitures arising from terminations of service of Members shall
serve only to reduce future City contributions.
5. Prohibited Transactions. Effective as of January 1, 1989, a Board may not engage in a
transaction prohibited by Code Section 503(b).
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6. USERRA. Effective December 12, 1994, notwithstanding any other provision of this
System, contributions, benefits and service credit with respect to qualified military
service are governed by Code Section 414(u) and the Uniformed Services Employment
and Reemployment Rights Act of 1994, as amended. To the extent that the definition of
"Credited Service" sets forth contribution requirements that are more favorable to the
Member than the minimum compliance requirements, the more favorable provisions
shall apply.
7 Vesting.
A. Member will be 100% vested in all benefits upon attainment of the Plan's age
and service requirements for the Plan's normal retirement benefit; and
B. A Member will be 100% vested in all accrued benefits, to the extent funded, if the
Plan is terminated or experiences a complete discontinuance of employer
contributions.
8. Electronic Forms. In those circumstances where a written election or consent is not
required by the Plan or the Code, an oral, electronic, or telephonic form in lieu of or in
addition to a written form may be prescribed by the Board. However, where applicable,
the Board shall comply with Treas. Reg. § 1.401(a) -21.
SECTION 17. REPEAL OR TERMINATION OF SYSTEM.
1. This ordinance establishing the System and Fund, and subsequent ordinances
pertaining to said System and Fund, may be modified, terminated, or amended, in
whole or in part; provided that if this or any subsequent ordinance shall be amended or
repealed in its application to any person 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.
2. If this ordinance shall be repealed, or if contributions to the System are discontinued or
if there is a transfer, merger or consolidation of government units, services or functions
as provided in Chapter 121, Florida Statutes, 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,
discontinuance of contributions, or transfer, merger or consolidation of government
units, services or functions, there shall be full vesting (100 %) of benefits accrued to
date of repeal and such benefits shall be nonforfeitable.
3. The fund shall be distributed in accordance with the following procedures:
A. The Board shall determine the date of distribution and the asset value required
to fund all the nonforfeitable benefits after taking into account the expenses of
such distribution. The Board shall inform the City if additional assets are
required, in which event the City shall continue to financially support the Plan
until all nonforfeitable benefits have been funded.
B. The Board shall determine the method of distribution of the asset value, whether
distribution shall be by payment in cash, by the maintenance of another or
substituted trust fund, by the purchase of insured annuities, or otherwise, for
each General Employee entitled to benefits under the plan as specified in
subsection C.
C. The Board shall distribute the asset value as of the date of termination in the
manner set forth in this subsection, on the basis that the amount required to
provide any given retirement income is the actuarially computed single -sum
value of such retirement income, except that if the method of distribution
determined under subsection B. involves the purchase of an insured annuity, the
amount required to provide the given retirement income is the single premium
payable for such annuity. The actuarial single -sum value may not be less than
the General Employee's Accumulated Contributions to the Plan, with interest if
provided by the Plan, less the value of any plan benefits previously paid to the
General Employee.
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D. If there is asset value remaining after the full distribution specified in subsection
C., and after the payment of any expenses incurred with such distribution, such
excess shall be returned to the City.
E. The Board shall distribute, in accordance with subsection B., the amounts
determined under subsection C.
SECTION 18. DOMESTIC RELATIONS ORDERS; RETIREE DIRECTED PAYMENTS;
EXEMPTION FROM EXECUTION, NON - ASSIGNABILITY.
1. Domestic Relations Orders.
A. Prior to the entry of any domestic relations order which affects or purports to
affect the System's responsibility in connection with the payment of benefits of a
Retiree, the Member or Retiree shall submit the proposed order to the Board for
review to determine whether the System may legally honor the order.
B. If a domestic relations order is not submitted to the Board for review prior to entry
of the order, and the System is ordered to take action that it may not legally take,
and the System expends administrative or legal fees in resolving the matter, the
Member or Retiree who submits such an order will be required to reimburse the
System for its expenses in connection with the order.
2. Retiree Directed Payments. The Board may, upon written request by a Retiree or by a
dependent, when authorized by a Retiree or the Retiree's Beneficiary, authorize the
System to withhold from the monthly retirement payment those funds that are
necessary to pay for the benefits being received through the City, to pay the certified
bargaining agent of the City, and to make any payments for child support or alimony.
3. Exemption from Execution, Non - Assignability. Except as otherwise provided by law, the
pensions, annuities, or any other benefits accrued or accruing to any person under the
provisions of this ordinance and the Accumulated Contributions and the cash securities
in the Fund created under this ordinance are hereby exempted from any state, county
or municipal tax and shall not be subject to execution, attachment, garnishment or any
legal process whatsoever and shall be unassignable.
SECTION 19. PENSION VALIDITY.
The Board shall have the power to examine into the facts upon which any pension shall
heretofore have been granted under any prior or existing law, or shall hereafter be granted or
obtained erroneously, fraudulently or illegally for any reason. The Board is empowered to
purge the pension rolls or correct the pension amount of any person heretofore granted a
pension under prior or existing law or any person hereafter granted a pension under this
ordinance if the same is found to be erroneous, fraudulent or illegal for any reason; and to
reclassify any person who has heretofore under any prior or existing law been or who shall
hereafter under this ordinance be erroneously, improperly or illegally classified. Any
overpayments or underpayments shall be corrected and paid or repaid in a reasonable
manner determined by the Board.
SECTION 20. FORFEITURE OF PENSION.
1. Any Member who is convicted of the following offenses committed prior to retirement, or
whose employment is terminated by reason of his admitted commission, aid or
abetment of the following specified offenses, shall forfeit all rights and benefits under
this System, except for the return of his Accumulated Contributions, but without interest,
as of the date of termination. Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public funds;
B. The committing, aiding or abetting of any theft by a public officer or employee
from employer;
C. Bribery in connection with the employment of a public officer or employee;
D. Any felony specified in Chapter 838, Florida Statutes;
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E. The committing of an impeachable offense;
F. The committing of any felony by a public officer or employee who willfully and
with intent to defraud the public or the public agency, for which he acts or in
which he is employed, of the right to receive the faithful performance of his duty
as a public officer or employee, realizes or obtains or attempts to obtain a profit,
gain, or advantage for himself or for some other person through the use or
attempted use of the power, rights, privileges, duties or position of his public
office or employment position; or
G. The committing on or after October 1, 2008, of any felony defined in Section
800.04, Florida Statutes, against a victim younger than sixteen (16) years of age,
or any felony defined in Chapter 794, Florida Statutes, against a victim younger
than eighteen (18) years of age, by a public officer or employee through the use
or attempted use of power, rights, privileges, duties, or position of his or her
public office or employment position.
2. Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when
adjudication of guilt is withheld and the accused is placed on probation; or a conviction
by the Senate of an impeachable offense.
3. Court shall be defined as any state or federal court of competent jurisdiction which is
exercising its jurisdiction to consider a proceeding involving the alleged commission of a
specified offense. Prior to forfeiture, the Board shall hold a hearing on which notice
shall be given to the Member whose benefits are being considered for forfeiture. Said
Member shall be afforded the right to have an attorney present. No formal rules of
evidence shall apply, but the Member shall be afforded a full opportunity to present his
case against forfeiture.
4. Any Member who has received benefits from the System in excess of his Accumulated
Contributions after Member's rights were forfeited shall be required to pay back to the
Fund the amount of the benefits received in excess of his Accumulated Contributions,
but without interest. The Board may implement all legal action necessary to recover
such funds.
SECTION 21. INDEMNIFICATION.
1. To the extent not covered by insurance contracts in force from time to time, the City
shall indemnify, defend and hold harmless members of the Board from all personal
liability for damages and costs, including court costs and attorneys' fees, arising out of
claims, suits, litigation, or threat of same, herein referred to as "claims ", against these
individuals because of acts or circumstances connected with or arising out of their
official duty as members of the Board. The City reserves the right, in its sole discretion,
to settle or not settle the claim at any time, and to appeal or to not appeal from any
adverse judgment or ruling, and in either event will indemnify, defend and hold
harmless any members of the Board from the judgment, execution, or levy thereon.
2. This Section shall not be construed so as to relieve any insurance company or other
entity liable to defend the claim or liable for payment of the judgment or claim, from any
liability, nor does this Section waive any provision of law affording the City immunity
from any suit in whole or part, or waive any other substantive or procedural rights the
City may have.
3. This Section shall not apply nor shall the City be responsible in any manner to defend
or pay for claims arising out of acts or omissions of members of the Board which
constitute felonies or gross malfeasance or gross misfeasance in office.
SECTION 22. TRANSFERS WITHIN THE CITY.
If a member of any of the City's three retirement systems transfers to either of the other two
systems, he must choose one of the following procedures with regard to Credited Service
accrued to date of transfer.
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1. The Member may take a refund of his Accumulated Contributions, in which event no
pension benefit shall be payable based on Credited Service attributable to the period
covered.
2. The member may leave his Accumulated Contributions in the fund in which event his
Credited Service with both systems shall be combined for purposes of determining
eligibility for benefits and for vesting. When the member is eligible to receive a benefit,
he shall receive benefits from both systems, which shall consist of accrued benefits
under each system based on the provisions of the respective system and the earnings
and Credited Service under that system.
SECTION 23. MILITARY SERVICE PRIOR TO EMPLOYMENT.
The years or fractional parts of years that a General Employee serves or has served on active
duty in the active military service of the Armed Forces of the United States, the United States
Merchant Marine or the United States Coast Guard, voluntarily or involuntarily, honorably or
under honorable conditions, prior to first and initial employment with the City shall be added to
his years of Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have contributed, based on
his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a member of the System for the years or fractional
parts of years for which he is requesting credit plus amounts actuarially determined
such that the crediting of service does not result in any cost to the Fund plus payment
of costs for all professional services rendered to the Board in connection with the
purchase of years of Credited Service.
2. Multiple requests to purchase Credited Service pursuant to this Section may be made
at any time prior to retirement.
3. Payment by the Member of the required amount shall be made within six (6) months of
his request for credit, but not later than the retirement date, and shall be made in one
lump sum payment upon receipt of which Credited Service shall be given.
4. The maximum credit under this Section shall be four (4) years.
5. Credited Service purchased pursuant to this section shall not count toward vesting.
SECTION 24. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS,
ELIMINATION OF MANDATORY DISTRIBUTIONS.
1 Rollover Distributions.
A. General. This Section applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the plan to the contrary that would otherwise
limit a distributee's election under this Section, a distributee may elect, at the
time and in the manner prescribed by the Board, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan specified by
the distributee in a direct rollover.
B. Definitions.
(1)
Eligible Rollover Distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the
distributee, except that an eligible rollover distribution does not include:
any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life
expectancy) of the distributee or the joint lives (or joint life expectancies)
of the distributee and the distributee's designated Beneficiary, or for a
specified period of ten years or more; any distribution to the extent such
distribution is required under section 401(a)(9) of the Code; and the
portion of any distribution that is not includible in gross income. Effective
January 1, 2002, any portion of any distribution which would be includible
in gross income as after -tax employee contributions will be an eligible
rollover distribution if the distribution is made to an individual retirement
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account described in section 408(a)i to an individual retirement annuity
described in section 408(b)i of to a qualified defined contribution plan
described in section 401(a) or 403(a) that agrees to separately account for
amounts so transferred (and earnings thereon), including separately
accounting for the portion of such distribution which is includible in gross
income and the portion of such distribution which is not so includible; or
on or after January 1, 2007, to a qualified defined benefit plan described
in Code Section 401(a) or to an annuity contract described in Code
Section 403(b), that agrees to separately account for amounts so
transferred (and earnings thereon), including separately accounting for the
portion of the distribution that is includible in gross income and the portion
of the distribution that is not so includible.
(2) Eligible Retirement Plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the Code; an individual
retirement annuity described in section 408(b) of the Code; an annuity
plan described in section 403(a) of the Code, effective January 1, 2002,
an eligible deferred compensation plan described in section 457(b) of the
Code which is maintained by an eligible employer described in section
457(e)(1)(A) of the Code and which agrees to separately account for
amounts transferred into such plan from this plan; effective January 1,
2002, an annuity contract described in section 403(b) of the Code; a
qualified trust described in section 401(a) of the Code; or effective
January 1, 2008, a Roth IRA described in Section 408A of the Code, that
accepts the distributee's eligible rollover distribution. This definition shall
also apply in the case of an eligible rollover distribution to the surviving
Spouse.
(3)
Distributee: A distributee includes an employee or former employee. It
also includes the employee's or former employee's surviving Spouse and
the employee's or former employee's spouse or former spouse. Effective
January 1, 2007, it further includes a nonspouse beneficiary who is a
designated beneficiary as defined by Code Section 401(a)(9)(E).
However, a nonspouse beneficiary may rollover the distribution only to an
individual retirement account or individual retirement annuity established
for the purpose of receiving the distribution and the account or annuity will
be treated as an "inherited" individual retirement account or annuity.
(4) Direct Rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
2. Rollovers or Transfers into the Fund. On or after January 1, 2002, the System will
accept, solely for the purpose of purchasing Credited Service as provided herein,
permissible Member requested transfers of funds from other retirement or pension
plans, Member rollover cash contributions and /or direct cash rollovers of distributions
made on or after January 1, 2002, as follows:
A. Transfers and Direct Rollovers or Member Rollover Contributions from Other
Plans. The System will accept either a direct rollover of an eligible rollover
distribution or a Member contribution of an eligible rollover distribution from a
qualified plan described in section 401(a) or 403(a) of the Code, from an annuity
contract described in section 403(b) of the Code or from an eligible plan under
section 457(b) of the Code which is maintained by a state, political subdivision of
a state, or any agency or instrumentality of a state or political subdivision of a
state. The System will also accept legally permissible Member requested
transfers of funds from other retirement or pension plans.
B. Member Rollover Contributions from IRAs. The system will accept a Member
rollover contribution of the portion of a distribution from an individual retirement
account or annuity described in section 408(a) or 408(b) of the Code that is
eligible to be rolled over.
3. Elimination of Mandatory Distributions. Notwithstanding any other provision herein to
the contrary, in the event this Plan provides for a mandatory (involuntary) cash
distribution from the Plan not otherwise required by law, for an amount in excess of
Ordinance No. 1141 Page 27 of 35
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one - thousand dollars ($1,000.00), such distribution shall be made from the Plan only
upon written request of the Member and completion by the Member of a written election
on forms designated by the Board, to either receive a cash lump sum or to rollover the
lump sum amount.
SECTION 25. REEMPLOYMENT AFTER RETIREMENT.
1. Any Retiree who is retired under this System, except for disability retirement as
previously provided for, may be reemployed by any public or private employer, except
the City, and may receive compensation from that employment without limiting or
restricting in any way the retirement benefits payable under this System.
Reemployment by the City shall be subject to the limitations set forth in this Section.
2. After Normal Retirement. Any Retiree who is retired under normal retirement pursuant
to this System and who is reemployed as a General Employee after that retirement and,
by virtue of that reemployment, is eligible to participate in this System, shall upon being
reemployed continue receipt of benefits if he is at least age sixty -two (62), otherwise the
.System shall discontinue receipt of benefits until he reaches age sixty -two (62). Upon
reemployment, the Retiree shall be deemed to be fully vested and the additional
Credited Service accrued during the subsequent employment period shall be used in
computing a second benefit amount attributable to the subsequent employment period,
which benefit amount shall be added to the benefit determined upon the initial
retirement to determine the total benefit payable upon final retirement. Calculations of
benefits upon retirement shall be based upon the benefit accrual rate, Average Final
Compensation, and Credited Service as of that date (not including any period of DROP
participation) and the retirement benefit amount for any subsequent employment period
shall be based upon the benefit accrual rate, Average Final Compensation, and
Credited Service as of the date of subsequent retirement (based only on the
subsequent employment period). The amount of any death or disability benefit received
as a result of a subsequent period of employment shall be reduced by the amount of
accrued benefit eligible to be paid for a prior period of employment. The optional form
of benefit and any joint pensioner selected upon initial retirement shall not be subject to
change upon subsequent retirement except as otherwise provided herein, but the
Member may select a different optional form and joint pensioner applicable to the
subsequent retirement benefit.
3. Any Retiree who is retired under normal retirement pursuant to this System and who is
reemployed by the City after that retirement and, by virtue of that reemployment is
ineligible to participate in this System, shall, during the period of such reemployment,
continue to receive retirement benefits previously earned if he is at least age sixty -two
(62), otherwise the System shall discontinue receipt of benefits until he reaches age
sixty -two (62). Former DROP participants shall begin receipt of benefits under these
circumstances.
4. After Early Retirement. Any Retiree who is retired under early retirement pursuant to
this System and who subsequently becomes an employee of the City in any capacity,
shall discontinue receipt of benefits from the System until the earlier of termination of
employment or such time as the reemployed Retiree reaches age sixty -two (62). A
Retiree who returns to work under the provisions of this Section shall not be eligible for
membership in the System, and, therefore, shall not accumulate additional Credited
Service for subsequent periods of employment described in this Section, shall not be
required to make contributions to the System, nor shall he be eligible for any other
benefit other than the Retiree's early retirement benefit when he again becomes eligible
as provided herein. Retirement pursuant to an early retirement incentive program shall
be deemed early retirement for purposes of this Section if the Member was permitted to
retire prior to the customary retirement date provided for in the System at the time of
retirement.
5. Reemployment of Terminated Vested Persons. Reemployed terminated vested persons
shall not be subject to the provisions of this Section until such time as they begin to
actually receive benefits. Upon receipt of benefits, terminated vested persons shall be
treated as normal or early Retirees for purposes of applying the provisions of this
Section and their status as an early or normal Retiree shall be determined by the date
they elect to begin to receive their benefit.
Ordinance No. 1141 Page 28 of 35
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6. DROP Participants. Retirees who are or were in the Deferred Retirement Option Plan
shall, following termination of employment after DROP participation, have the options
provided for in this section for reemployment.
SECTION 26. ADOPTION OF PLAN BY THE OKEECHOBEE UTILITY AUTHORITY.
indicated otherwise by context.
The Okeechobee Utility Authority has adopted Resolution 2016 -03 establishing the
Okeechobee Utility Authority Employees' Retirement System to be effective on October 1,
2016, to provide retirement and certain other benefits to full -time employees of the
Okeechobee Utility Authority (OUA). OUA employees who are Members of this System on
September 29. 2016. former OUA employees who vested under or retired from this System on
or before September 30, 2016, and the beneficiaries and joint annuitants of such Members,
shall become members, terminated vested persons, retirees. joint annuitants and beneficiaries
of the OUA Retirement System, as applicable, on October 1, 2016.
All contributions, benefits. assets and liabilities of this System attributable to current and
former OUA employees on September 30, 2016, shall be transferred to and become
contributions, benefits, assets and liabilities of the OUA Retirement System on October 1,
2016, or as soon thereafter as administratively possible.
On and after October 1, 2016, and following the transfer of assets attributable to current and
former OUA employees from this System to the OUA Retirement System. the benefits accrued
by current and former OUA employees and their beneficiaries under this S stem shall be
payable from the OUA Retirement System and this System shall have no liability or
responsibility for such benefit payments.
SECTION 27. PRIOR GOVERNMENT SERVICE.
Unless otherwise prohibited by law, the years or fractional parts of years that a general
employee who was previously a member, but who terminated employment and is not
otherwise entitled to credited service for such previous period of employment as a general
employee, or the years or fractional parts of years that a member previously served as an
employee for any governmental agency in the United States, including but not limited to
federal, state or local government service, and for which he does not otherwise qualify for and
receive credit under this system, shall be added to his years of credited service provided that:
1. The Member contributes to the Fund the sum that he would have contributed, based on
his Salary and the Member contribution rate in effect at the time that the Credited
Service is requested, had he been a member of the System for the years or fractional
parts of years for which he is requesting credit plus amounts actuarially determined
such that the crediting of service does not result in any cost to the Fund plus payment
of costs for all professional services rendered to the Board in connection with the
purchase of years of Credited Service.
2. Multiple requests to purchase Credited Service pursuant to this Section may be made
at any time prior to retirement.
3. Payment by the member of the required amount shall be made within six (6) months of
his or her request for credit, but, in any event, prior to retirement, and shall be made in
one lump sum payment upon receipt of which Credited Service shall be given.
4. There shall be no maximum purchase of Credited Service pursuant to this Section and
Credited Service purchased shall count for all purposes including vesting.
Ordinance No. 1141 Page 29 of 35
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5. In no event, however, may Credited Service be purchased pursuant to this Section for
prior service with any other governmental agency, if such prior service forms or will form
the basis of a retirement benefit or pension from another retirement system or plan as
set forth in Section 14, subsection 12.B.
SECTION 28. DEFERRED RETIREMENT OPTION PLAN.
1. Definitions. As used in this Section 28, the following definitions apply:"
A. "DROP" -- The City of Okeechobee General Employees' Deferred Retirement
Option Plan.
B. "DROP Account" -- The account established for each DROP participant under
subsection 3.
C "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 General
Employee, 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 General Employee.
(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 General Employee.
(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
Ordinance No. 1141 Page 30 of 35
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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
benefits, except as provided for in Section 25, 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 General Employee, no amounts shall
be paid to him from the System until he terminates his employment as a
General Employee. 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
General Employee.
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 General Employee
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 General Employee.
(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
Ordinance No. 1141 Page 31 of 35
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(3)
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.
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.
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 City, 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 City 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 25.
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 General Employee. 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 General Employee.
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.
Ordinance No. 1141 Page 32 of 35
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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 24.
5. Administration of DROP.
A. Board Administers the DROP. The general administration of the DROP, the
responsibility for carrying 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 theft 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.
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
Ordinance No. 1141 Page 33 of 35
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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 System'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).
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.
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 shall be a complete
discharge of the liabilities of the DROP for that benefit.
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.
H Prevention of Escheat. If the 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.
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
Ordinance No. 1141 Page 34 of 35
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Board in a time 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.
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.
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.
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.
Ordinance No. 1141 Page 35 of 35
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Gabriel Roeder Smith & Company One East Broward Blvd.
G,RS Consultants & Actuaries Suite 505
Ft. Lauderdale, FL 33301-1804
September 15, 2016
Mr. J. Scott Baur
Pension Centers, LLC
4360 Northlake Blvd, Ste. 206
Palm Beach Gardens, FL 33410-6264
des
Re: City of Okeechobee and Okeechobee Utility Authority Employees' Retirement System
Ordinance No. I y ( Restating the Pension Plan
Actuarial Impact Statement
Dear Scott:
954.527.1616 phone
954.525.0083 fax
www.gabrielroeder.com
We have reviewed the proposed ordinance which amends and restates the City of Okeechobee and
Okeechobee Utility Authority Employees' Retirement System ("City/OUA System") as follows:
• The Okeechobee Utility Authority Employees ' Retirement System ("OUA System') has been
established to be effective October 1, 2016
• OUA employees who are members of the City/OUA System 077 September 29, 2016, former OUA
employees who vested under or retired from the City/OUA System on or before September 30, 2016,
and the beneficiaries and joint annuitants of such members, shall become members, terminated
vested persons, retirees, joint annuitants and beneficiaries of the OUA System, as applicable, on
October 1, 2016.
■ All contributions, benefits, assets and liabilities of the City/OUA System attributable to current and
former OUA employees on September 30, 2016, shall be transferred to the OUA System.
■ The restatement removes references to OUA employees and renames the plan as the City of
Okeechobee General Employees' Retirement System.
■ The restatement changes the make-up of the board of trustees to ensure continuous trustee terms
during the transition of the OUA members to the OUA System.
In our opinion, this amendment will have no actuarial impact on the individual plan costs for the City or the
OUA, provided there are no changes to the asset allocation procedure from the procedure currently in place,
as reflected in separate Actuarial Valuation Reports as of October 1, 2015 for the two groups.
The attached Statement must be filed with the Division of Retirement before the final public hearing on the
ordinance. Please have a member of the Board of Trustees sign the Statement. Then send the Statement
along with a copy of the proposed ordinance to Tallahassee.
Theora P. Braccialarghe and Melissa R. Moskovitz are members of the American Academy of Actuaries and
meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions
contained herein. The signing actuaries are independent of the plan sponsors.
This report has been prepared by actuaries who have substantial experience valuing public employee
retirement systems. To the best of our knowledge the information contained in this report is accurate and
fairly presents the actuarial position of the Plan.
Respectfully submitted,
Theora P. Braccialarghe, FSA, MAAA Melissa R. Moskovitz, MAAA
Enrolled Actuary No. 14-2826 Enrolled Actuary No. 14-6467
cc: Scott Christiansen, Plan Attorney
James Mullis, Board Chair
Gabriel Roeder Ennirh 8-r Co.npa:,y
OKEECHOBEE AND OKEECHOBEE UTILITY AUTHORITY
EMPLOYEES' RETIREMENT SYSTEM
Impact Statement — September 15, 2016
Description of Amendment
The Okeechobee Utility A uthority Employees' Retirement System ("OUA System') has been established
to be effective October 1, 2016
■ OUA employees who are members of the City of Okeechobee and Okeechobee Utility Authority
Employees' Retirement System ("City/OUA System') on September 29, 2016, former OUA employees
who vested under or retired from the City/OUA System on or before September 30, 2016, and the
beneficiaries and joint annuitants of such members, shall become members, terminated vested persons,
retirees, joint annuitants and beneficiaries of the OUA System, as applicable, on October 1, 2016
■ All contributions, benefits, assets and liabilities of the City/OUA System attributable to current and
former OUA employees on September 30, 2016, shall be transferred to the OUA System.
■ The restatement removes references to OUA employees and renames the plan as the City of Okeechobee
General Employees' Retirement System.
■ The restatement changes the make-up of the board of trustees to ensure continuous trustee terms during
the transition of the OUA members to the OUA System.
Funding Implications of Amendment
There is no impact on the individual plan costs for the City or the OUA.
Certification of Administrator
I believe the amendment to be in compliance with Part VII, Chapter 112, Florida Statutes and Section 14,
Article X of the Constitution of the State of Florida.
For th Board of Trustees, as Plan Administrator
Gabriel Roeder Smith & Company