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2021-09-07 Ex 08Law C�$fices c�� , r��t��r�s�� I�.��r� �'�.�.3 Scatt R. Ci2ristiansen 63 Sarasota �ef2ter Blz�d. Steitc I07 SarasoCa, Florida 3�2�C1 9�i-37?-2200 Fax 941-377-4$48 June 28, �021 Via E-Mail: GritCer(a),citvofokeechob�e.cou� Mr. Gary �iti�r City Ac�ininistrator City of f}keecl�obee 55 S.E. 3rct Avenue Okeechol�ee, �'L 34974-2032 H. Lee Dehner �i��z-aol9> Gf.SJ<<��`�� , � I��C� � q. �1 � �.� � `�'7 �;i C'� � �C;IC� `�S I�e: City c�f Okeecliol�ee Genei•al Emptoyees' Retic-en�eftt System - Froposed Orc�inance Dear Mr. RiEter: �.5 you kno��, I represent the Baard ofTrustees of yaur City af C}keechc�bee General Eniployees" Retiren�e�it Systecn. Enclosed please find a proposed ordinance a�1�et�diti� the City af Okeechobee General Emp(ayees' R�Eif�eF7�ent System t1�at has t�een ap�roved by the Board 3�7c1 reean�mended for adaptian by the eity Couneil. This ordi�nance illakes tl�e follo�vin�; suggestect revisions anci ehan�es: Section G, Benetit Amounts ai�d Eligibility, Seation I0, Qptionaf Foi71�s c�f Bei7etits, and Seetion 15, MiniiY�um Distributioil oiBenetits are alt beii�i� art�ended to provicle i�or recent eha�igEs to the Interiiat Kevenue Code (IRC) char��itlg t11e rec�uired distribution a�e fron� 70%z Co age 72. 2. Sectio� 25. Reeni�lc�}nnent After Retiren�ent, is k�ein� amendecl is bein� arnended tc� ��►-ovide that riortnal or early r�tirees �i�ho are reernployed by CIYe City rnay cotstir�ue receipt of their bet�efits if c�r ��rlieri tliey have reached age 59%z. 1�17is reduciion fro�Ti age 62 is a cl�ange ix1 accordance wittl recent changes to the IRC. I l�ave enctosed a copy of a letter from tlie Boartl's actuary, Gabriel Roeder Srt�ith & Co�n��any, indieati�ig that tP�ere is 110 impact in corinection �viCli the adoptic�n of this oi-ciinance. If�you or any mcmber of your stafi have any questians ��vitli i•e�ard to this ordinanc;e, piease feel f'ree to �ive me a call. Iz� addiiion, if you ,�set it �uould be appropriGate For me to be �resent at the ri�eeting at ��iiich this ordina«c� is considered by the Gity Council, pleas� contact rny ofF'ice to advise rne of tlle date tll�t the ordi�iance would be considered. Yaurs v� � truly, ./��.�--------__� � Scott R. Cl�ristiansen SItC/cltn enelosui-e I:-capy: Kyle Tintic, ��ith enclosur�s �� March 31, 2021 Ms. Kyle Tintle Resource Centers, LLC 4360 Northlake Blvd Suite 206 Palm Beach Gardens, Florida 33410 F' �i^��€."ai�,°c,tE? 1�. �°.«I' '}.`�,"`7.�.��7e?� : v r v-�'€=:c ;ns.alkin�.�;-r�.=cn Re: City of Okeechobee General Empioyees' Retirement System Actuariai Impact Statement Dear Kyle: � ��I� ��r�� ,�'� � �1._%�-�'i �i �� As requested by Scott R. Christensen, Esq., we have performed an actuarial review of the proposed Ordinance (copy attached). Bas�d upon our review, the proposed Ordinance: ➢ Amends the required beginning date in compliance with the Setting Every Community Up for Retirement Enhancement ("SECURE") Act ➢ Amends reemployment after retirement to comply with the Internal Revenue Code (IRCj. ➢ Provides for codification. ➢ Repeals all Ordinances or parts of Ordinances in conflict herewith. ➢ Provides for severability. ➢ Provides for an effective date. In our opinion, based upon the actuarial assumptions and methods employed in the October 1, 2020 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance under our understanding of State minimum funding requirements. Please provide a signed copy of the Ordinance upon adoption for our records. If you should have any question concerning the above, please do not hesitate to contact us. Sincerest regards, _ ��(�C Shelly L.lones, A.S.A. Consultant and Actuary Enclosure cc: Scott R. Christensen, Esq. �} � } s �-1��`�d � ��`}�� ' n`,�`'�e'°v�f �� '�� , �, : � ��.. � � �� (� ,� i �� (�'� , � ��` .�� ,�+ .� °.:�. ��.,� �.s�� . � � � � Meeting May 3, 2021 Page 2 of 3 � �ss�� j -� � � Y�� ?.��n��'� Mr. McCann repiied the Policy states 4 consecutive quarters af not beating the index is when a fund will be discussed to be replaced, ff a fund is underperforming he puts them on a watch list and brings it to the attention of the Board, but will only replace a fund at the direction of the Board. Mr. Christiansen stated the Board must declare the expected rate of return; which was 7% in the Valuation. lohn 2eigter made a motion, based an the advice of the investment consultant, the Baard expects ta achieve a 7% return for the next year, the next several years, and the long terrn thereafter. The motfon received a second from Danna Noward, approved by the Trustees 4•0. 5. Attornev Report {Scott Christiansen) Mr. Christiansen reported the tegislative sesslon ended without any bitls impacting pension plans. Ne reminded the Trustees their financial disclosure forms must be submitted by luly 15` and there is a steep fine #ar not having the forms filed. Mr. Christiansen explained to John Zeigler as a new Trustee the form 1 wi(I not be mailed to his home but it can be obtained online, bue to changes in the IRS codes, Mr. Christiansen will need to write an amendment to an ordinance for the Plan increasing the age for a required minimum distribution (RM�} to 72 from 70 1/2. In addition, Mr. Christiansen reported it is time to update the Summary Plan Description (SPD) for the Board ta review, if the Trustees agree. Melissa Henry made a mottort to authorized Mr. Christiansen to draft an ardinance refiecting the iRS tax changes to the Plan. The motion received a second from Donna Haward, approved by the Trustees 4-0. Melissa Flenry made a motion ta authorized Mr. Christiansen ta update the Sammary Plan Descriptian. The mation received a second from John Zeigler, approved by the Trustees 4•0. 6. Administrator Report {Scott Baurl Mr. 8aur confirmed the FPPTA conference will be held in person, at Champions Gate in qrlando, on lune 27 -- 30`�' but as of today there were no particulars as to cantent. He askecf if any Trustee is interested in attending the conference to make their hotel reserrration and submit the confirmation infarmation to The Resource Centers for payrt�ent. Qnce the hotet canfirmation has �een received the Trustee will be registered for the conference. Ms. Tintle noted she was advised of Mrchele Clanton's unavailability for this meeting as she was out of town on vacation. She congratulated Melissa Henry on successfuliy passing the Advanced Exam far Certification in the CPPT Pragram. The interim financial statements were presented and received by the 8oard. The Trustees reviewed the 1Narrant dated May 3, 2021. Melissa Henry made a motion to ratify the May 3, 2021 Warrant. The mation received e second from Donna Howard. The motion was unantmousiy approved by the Trustees of the General Employee's Plan, 4-0. _...._ _. _ _ _ . ___ ___ _ _ __ __ _____. __ __ ..__ _. . .._ _....._ ...._. _.... _._. __ _.... _.. _ _...__ ._. _... The New member acknowledgement for Jennifer Rosas-Pelcastre was received by the Board and wifl be filed. The 8oard reviewed the benefits for Teresa Garcia's retlrement and Nancy Sue Christopher to enterthe DROR plan� . _... _._ _ _. __ __. .._ ._..__ _ _.. .___.._ _ _____. ... __ _..___. .... ._.._ _ ..._. ._ .._... __.. _._. . .. Mefissa Henry made a motion to approve the �enefits as presented. The motion received a second from lohn 2eigler, appraved by the Trustees 4-0. Language stricken to be deleted Language underlined to be added Ordinance No. 1239, Page 1 of 3 ORDINANCE NO. 1239 AN ORDINANCE OF THE CITY OF OKEECHOBEE FURTHER AMENDING THE CITY OF OKEECHOBEE GENERAL EMPLOYEES’ RETIREMENT SYSTEM, RESTATED PURSUANT TO ORDINANCE 1141; AMENDING SECTION 6, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 10, OPTIONAL FORMS OF BENEFITS; AMENDING SECTION 15, MINIMUM DISTRIBUTION OF BENEFITS; AMENDING SECTION 25, REEMPLOYMENT AFTER RETIREMENT; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Okeechobee General employees are presently provided pension and certain other benefits under Ordinances of the City of Okeechobee; and 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 General Employees’ Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 6, Benefit Amounts and Eligibility, subsection 5, Required Distribution Date, to read as follows: 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 (70½) or the calendar year in which the Member terminates employment with the City the Member’s required beginning date, as provided under Section 15. SECTION 2: That the City of Okeechobee General Employees’ Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 10, Optional Forms of Benefits, subsection 5.E., to read as follows: 5.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 th e later of the calendar year in which the Member attains age seventy and one -half (70½) or the calendar year in which the Member terminates employment with the City the Member’s required beginning date, as provided under Section. 15. SECTION 3: That the City of Okeechobee General Employees’ Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 15, Minimum Distribution of Benefits, subsection 2.A., and subsection 2.B.(1), to read as follows: 2.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 ½) or the calendar year in which the Member terminated employment with the City. For a Member who attains age seventy and one-half (70 ½) prior to January 1, 2020, the Member’s required beginning date is April 1 of the calendar year following the later of (i) the calendar year in which the Member attains age seventy and one-half (70 ½) or (ii) the calendar year in which the Member terminates employment with the City. For a Member who attains age seventy and one-half (70 ½) on or after January 1, 2020, the Member’s required Language stricken to be deleted Language underlined to be added Ordinance No. 1239, Page 2 of 3 beginning date is April 1 of the calendar year following the later of (i) the calendar year in which the Member attains age seventy -two (72) or (ii) the calendar year in which the Member terminates employment with the City. 2.B.(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 ½ (or age 72 for a Member who would have attained age 70 ½ after December 31, 2019), if later, as the surviving spouse elects. SECTION 4: That the City of Okeechobee General Employees’ Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 25, Reemployment After Retirement, subsections 2., 3., and 4., to read as follows: 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) fifty-nine and one-half (59½), otherwise the System shall discontinue receipt of benefits until he reaches age sixty-two (62) fifty-nine and one-half (59½). 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, A verage 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) fifty-nine and one-half (59½), otherwise the System shall discontinue receipt of benefits until he reaches age sixty-two (62) fifty-nine and one-half (59½). Former DROP participants shall begin receipt of benefits under these circumstances. 4. After Early or Disability Retirement. Any Retiree who is retired under early or disability 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 employ ment or such time as the reemployed Retiree reaches age sixty-two (62) fifty-nine and one-half (59½). 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 Language stricken to be deleted Language underlined to be added Ordinance No. 1239, Page 3 of 3 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. SECTION 5: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Okeechobee. SECTION 6: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 7: 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 8: That this Ordinance shall become effective upon adoption. INTRODUCED on first reading and set for public hearing this 7th day of September 2021. ________________________________ Dowling R. Watford, Jr., Mayor ATTEST: _________________________________ Lane Gamiotea, City Clerk PASSED on second reading after public hearing this 27th day of September 2021. _______________________________ Dowling R. Watford, Jr., Mayor ATTEST: _____________________________________ Lane Gamiotea, CMC, City Clerk APPROVED FOR LEGAL SUFFICIENCY: _____________________________________ John J. Fumero, City Attorney