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2021-09-29 Special Fire Meeting Agenda, Notice & ExhibitsCity of Okeechobee Municipal Firefighters' Pension Fund BOARD OF TRUSTEES: ELECTRONIC SPECIAL MEETING LOCATION: Electronic Meeting — 55 SE 3rd Ave., Okeechobee, FL 34974 Meeting Contact: (561) 624-3277 (Plan Administrator) TIME: September 29, 20215:30 PM Eastern Time INSTRUCTIONS TO JOIN MEETING ELECTRONICALLY Meeting ID: 144 057 4524 Resource Centers is inviting you to a scheduled RingCentral meeting: Okeechobee Firefighters Special Meeting For Video & Audio (Recommendedl: If you are using a mobile device (Smart Phone or Tablet) use the "RingCentral" App. Link to Join from Laptop, PC, Mac, Linux, i0S or Android: https://meetinqs. rinqcentral.com/I/1440574524 For Voice Only: iPhone one-tap: US: +1(470)8692200„1440574524# (US East) +1(773)2319226„1440574524# (US North) +1(623)4049000„1440574524# (US West) +1(720)9027700„1440574524# (US Central) +1(469)4450100„1440574524# (US South) Telephone (for higher quality, dial a number based on your current location): Dial: +1(470)8692200 (US East) +1(773)2319226 (US North) +1(623)4049000 (US West) +1(720)9027700 (US Central) +1(469)4450100 (US South) Public Comments: Public can submit comments by email during the Meeting to Okeechobee@ResourceCenters.com. All public comments will be read into the record in the Public Comment portion of the Meeting. PLEASE NOTE: If a person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he/she will need a record of the proceedings. For such purpose, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based. In accordance with the Americans with Disabilities Act and F.S.S. 286.26, persons with disabilities needing special accommodation to participate in this meeting should contact the Plan Administrator at 800.206.0116 no later than three days before the meeting for assistance. If hearing impaired, please call the Florida Relay Service Numbers at 800-955-8771 (TDD) or 800-955-8770 (VOICE) for assistance. City of Okeechobee Municipal Firefighters' Pension Fund BOARD OF TRUSTEES: ELECTRONIC SPECIAL MEETING MEETING AGENDA 1. Call to Order: Board Chair Firefi�hters' Board Herby Smith, Chairman Adam Crum, Secretary John Koepke Glen Hodges Joshua Sanders 2. Approval of Minutes: Meeting Minutes 05-03-2021 3. Reports a. Investment Consultant (Brad Hess, AndCo) 1. Quarterly Investment Report June 30, 2021 Firefighters' Retirement System b. Attorney Report (Scott Christiansen, Christiansen & Dehner) 1. Summary Plan Description (Firefighters') c. Administrative Report (Scott Baur, Resource Centers) 1. Upcoming Conference List 2. 50th Annual Police Officers' & Firefighters' Pension Conference 4. Plan Financials a. Interim Financial Statements b. Expenses: Warrant dated: August 2, 2021 5. New Business 6. Other Business 7. Public Comment Email Public Comments during the Meeting to: Okeechobee@resourcecenters.com 8. Adjourn Next Meeting Date: November 1, 2021 at 5:30 PM PLEASE NOTE: If a person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he/she will need a record of the proceedings. For such purpose, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based. In accordance with the Americans with Disabilities Act and F.S.S. 286.26, persons with disabilities needing special accommodation to participate in this meeting should contact the Plan Administrator at 800.206.0116 no later than three days before the meeting for assistance. If hearing impaired, please call the Florida Relay Service Numbers at 800-955-8771 (TDD) or 800-955-8770 (VOICE) for assistance. CITY OF OKEECHOBEE POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, MAY 3, 2021 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 1. CALL TO ORDER Herb Smith called the meeting of the Board of Trustees for the City of Okeechobee Firefighters' Retirement System to order at PM in the Council Chamber at City Hall. The Okeechobee Police Officers' Retirement System does not have a quorum. Those persons present included: TRUSTEES FIREFIGHTERS Herb Smith, Chair Glenn Hodges John Koepke OTHERS Scott Baur & Kyle Tintle, Resource Centers Scott Christiansen, Christiansen & Dehner John McCann, AndCo via Ring Central TRUSTEES POLICE Bettye Taylor, Chair James Pickering, Secretary (No Quorum) 2. Extraordinary Circumstances for Trustees Joini No trusteesjoined the meeting electronically. Electronical 3. Approval of the Minutes The Trustees reviewed the Minutes for the March 1, 2021 Special Meeting. Herb Smith made a motion to approve the Minutes of the Special Meeting held on March 1, 2021. The motion received a second from John Koepke, approved by the Trustees 3-0. 4. Investment Report (John McCann) Mr. McCann reviewed the market value of the Firefighters' Officers' Retirement System for the quarter ending March 31, 2021 at $5,416,721 compared to the prior quarter at $5,364,046 an increase of $52,675. He reviewed the total Fund Composite (gross) for the quarter 1.49% (91) versus the policy at 1.99% (83) a difference of -0.50%. Mr. McCann continued by reviewing the performance of each mutual fund's performance for each Plan. The Vanguard Equity-Income (VEIRX), a newer addition to the portfolio as of June 1, 2019, was up 10.07% compared to the Russell 1000 Value Index; a difference of - 1.19%. The Vanguard 500 Index ended the quarter at 6.18% (57) almost equal to the S&P 500 Index at 6.17% (57); MFS Growth Fund was 0.40% (67) versus the policy at 0.94% (56). The Vanguard Extended Market Index and the S&P Completion Index were only one or two rankings away from each other for the current quarter 7.79% (91) and 7.75% (92) respectively, since inception, November 1, 2013 they reported 12.57% (6) and 12.47% (7). The Total International Equity Composite ended the quarter at - 0.43% versus the policy of 3.60% a difference of -4.03%; the one year numbers beat the index at 60.79% compared to 50.03% a difference of +10.76%, the returns over the long haul have been excellent. Finally, Dodge & Cox Income Fund ended the quarter down at -2.52% (22) outperforming the policy at - 3.38% (74) and the 1 year numbers were 7.45% (12) compared to the Bloomberg Barclays U.S. Aggregate Index at 0.71% (91). That is an incredible return which ranks 3 at 3.71% versus 2.72% (56) since inception on November 1, 2012. Mr. McCann will attend the next quarterly meeting in person and is looking forward to seeing everyone then. He asked if there were any questions Meeting May 3, 2021 Page 2 of 2 Mr. Christiansen stated the Board must declare the expected rate of return; which was 7% in the Valuation. Glen Hodges made a motion based on the advice of the investment consultant the Board expects to achieve a 7% return for the next year, the next several years, and the long term thereafter. The motion received a second from Herb Smith, approved by the Trustees 3-0. 5. Attorney Report (Scott Christiansen) Mr. Christiansen reported the legislative session ended without any bills impacting pension plans. No change in local legislation, an ordinance was submitted to the City about the merger of the Firefighters and the County. Mr. Christiansen reminded the Trustees their financial disclosure forms must be submitted by July 15Y and there is a steep fine for not having the forms filed. In addition, Mr. Christiansen reported it is time to update the Summary Plan Description (SPD) for the Board to review, if the Trustees agree. Herb Smith made a motion to authorized Mr. Christiansen to update the Summary Plan Description. The motion received a second from Glen Hodges, approved by the Trustees 3-0. 6. Administrator Report (Scott Baur) Mr. Baur presented the Board with the Administrative Budget and Expense Report for review as he gave an overview of the purpose of the document which shows the actual expenses for the Plan and a projected budget for the fiscal year 2022. The projected budget does not have to match but if the Plan exceeds the amount, a revised budget and explanation will need to be sent to the State. The interim financials were received and will be filed. The Board review the Warrant dated May 3, 2021. John Koepke made a motion to approve the Expense Report and Administrative Budget for FY2022. The motion received a second from Glen Hodges. The motion was unanimously approved by the Trustees, 3-0. Herb Smith made a motion to approve the expenses on the May 3, 2021 Warrant. The motion received a second from John Koepke. The motion was unanimously approved by the Trustees, 3-0. PUBLIC COMMENT There were no public comments at this time. There being no further business, the Firefighters' Board was adjourned at 6:11 PM. Herb Smith made a motion to adjourn the meeting of the Okeechobee Firefighters' Retirement System. The motion received a second from Glen Hodges approved by the Trustees 3-0. Chair Secretary I nvestment PerFormance Review Period Ending June 30, 2021 � Okeechobee Municipal Firefighters' Pension Fund AndCo Consulting I(844) 44-ANDCO I Anc�G'oG'onsulti�zb.com Table Of Contents Market Environment Asset Allocation By Style and Manger Schedule of Investable Assets Total Target Compliance Financial Reconciliation Quarter Financial Reconciliation FYTD Comparative PerFormance Trailing Returns Comparative Performance Fiscal Total Fund (Strategy Review) Vanguard 500 (VFIAX) (Strategy Review) Vanguard (VEIRX) (Strategy Review) MFS Growth (MFEKX) (Strategy Review) Vangaurd (VEXAX) (Strategy Review) AF Europac (RERGX) (Strategy Review) Dodge & Cox (DODIX) (Strategy Review) Comparative Performance Manager Composites Fee Schedule Schedule of Investable Assets Total Benchmark History Compliance Page 1 Page 12 Page 14 Page 15 Page 16 Page 17 Page 18 Page 20 Page 22 Page 24 Page 26 Page 28 Page 30 Page 32 Page 34 Page 36 Page 37 Page 38 Page 39 Page 40 �� i'V_ 2nd Quarter 2021 Market Environment �T^ Page 1 The Market Environment Executive Summary As of June 30, 2021 The Economy ■ The US economy continues to recover as widespread vaccine distribution has resulted in the reopening of many state and local economies. ■ The recent rise in demand for goods and services has resulted in strong inflationary pressures. The annual rate of inflation increased to 5.0% in May, up from 4.2% in April. ■ The US labor market continues to recover as evidenced by the decline in the unemployment rate. Recently, several states have moved to reduce or eliminate additional unemployment benefits to incentivize people to return to work. Overall, wage growth has shown signs of accelerating as employers struggle to fill job openings. ■ Despite leaving interest rates unchanged at their most recent meeting, the Fed did change the language of its statement suggesting that interest rates may rise sooner rather than later. Equity (Domestic and International) ■ US equities rose to all-time highs during the second quarter, primarily due to the optimism related to increased control over the pandemic. Reversing performance from recent quarters, growth outpaced value and large companies resumed market leadership relative to smaller peers. ■ International equities performed well during the 2nd quarter, albeit at a less frenetic pace than their domestic counterparts. Also similar to the US, growth outperformed value and emerging countries underperformed developed ones. Fixed Income ■ Despite the continued global economic recovery and rising inflation concerns, US interest rates dipped during the quarter as the US 10-Year Treasury bond fell 27 basis points to close at 1.47%. • Performance across all bond markets sectors was positive during the quarter, led by investment grade corporate bonds. The combination of lower gross issuance levels, in conjunction with a longer maturity profile relative to high yield bonds, were the primary catalysts of performance during the period. Within investment grade credit, Lower quality issues outperformed higher quality sectors during the quarter. Consistent with the economic recovery theme, as investors' expectations of future growth improves, those credits should perform well as earnings growth accelerates. Market Themes ■ Global central monetary policy remains largely intact and accommodative. Both the Fed and the European Central Bank remain committed to their repurchase programs. Given these conditions, barring a socioeconomic or geopolitical shock, it is reasonable to expect risk assets to continue experiencing solid returns. ■ US interest rates are likely to remain low for the remainder of 2021. As a result, credit should continue to outperform both higher quality Treasury and government bonds. ■ Finally, low interest rates have historically been a tailwind for growth equities. Given that the Fed has committed to keeping rates unchanged in the near-term, growth- oriented companies could continue to lead the market. �Tn Page 2 The Market Environment Major Market Index Performance As of June 30, 2021 • Broad US equity markets experienced strong returns during the 2nd quarter of 2021. The primary catalyst during the period was the continued reopening of state and local economies resulting from the ongoing distribution of vaccines. S&P 500 Importantly, US interest rates also fell during the period which resulted in Russe113000 large, growth-oriented companies resuming market leadership. For the period, Russell l000 large cap companies returned 8.5%, compared to 7.5% for mid-caps and 4.3% Russell MidCap for small company stocks. Russeu 2000 ■ Similar to domestic markets, broad international equity markets also posted positive returns for the 2nd quarter. The re-opening of global economies, MSCI ACwxus particularly Europe, were key drivers of performance. During the period, the MSCI EAFE MSCI EAFE Index return of 5.2% modestly outperformed the MSCI Emerging MSCI Emerg Mkts Markets Index return of 5.0% ■ For the quarter, bond market returns were generally positive as interest rates declined. The Bloomberg Barclays (BB) US Aggregate Index returned 1.8%, trailing both US TIPS and Investment Grade Corporate bonds which returned 3.2% and 3.5% respectively. Bbg Barclays US Agg Bbg Barclays US Govt Bbg Barclays US TIPS Bbg Barclays MBS Bbg Barclays Corp IG 3-Month T-Bill ■ The trailing 1-year chart details the markeYs dramatic reversal following the onset of the pandemic last year. All broad US equity market indexes have recovered and are trading at near-record levels. Most notably, domestic small cap stocks have led the market higher by returning 62.0% compared to US large caps which returned 43.1 % over the trailing 1-year period. ■ Over the trailing 1-year period the MSCI EAFE Index return of 32.4% fell short of the MSCI Emerging Markets Index return of 40.9%. Higher growth benefits areas like emerging markets which are more sensitive to changes in economic activity. As a result, as global markets continue to recover, economically sensitive emerging countries may recover at a faster rate. S&P 500 Russell 3000 Russell 1000 Russell MidCap Russel I 2000 MSCI ACWxUS MSCI EAFE MSCI Emerg Mkts ■ Bond market returns over the trailing 1-year period were relatively muted compared to equities. US TIPS led the way as investors remain concerned Bbg Barclays US Agg about the potential for rising inflation. The TIPS Index returned 6.5°/o for the Bbg Barclays US Govt period while investment grade corporate bonds returned 3.3%. Higher quality, Bbg Barclays US TIPS lower coupon bonds generally struggled to perform during the period as US Bbg Barclays MBS interest rates generally moved higher. abq sarciays corp i� 3-Month T-Bill Source: Investment Metrics Quarter Performance 1-Year Performance �Tn Page 3 -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% -10.0% 5.0% 20.0% 35.0% 50.0% 65.0% The Market Environment Domestic Equity Style Index Performance As of June 30, 2021 ■ The markeYs strong momentum continued during the quarter as all broad US equity benchmarks posted their 5th straight quarter of positive returns across both the style and market capitalization spectrums. However, we did see a reversal during the period as large cap stocks resumed leadership followed by mid and small caps. The Russell 1000 Index returned a strong 8.5% compared to 7.5% for the Russell Mid Cap Index and 4.3% for the Russell 2000 Index. ■ Growth stocks outpaced value stocks for the first time in two quarters. The Russell 1000 Growth Index was the best performing style index for the quarter, posting a return of 11.9%. Mid cap growth stock performance was not far behind, returning 11.1 °/o. However, in small cap stocks, value outpaced growth for the quarter with the Russell 2000 Value Index returning 4.6% compared to 3.9% for the Russell 2000 Growth Index. ■ Performance across all market capitalizations and styles was very strong over the trailing 1-year period. ■ Despite the recent gains made by growth stocks, value stocks outpaced growth issues across all market capitalizations over the trailing 1-year period. Given the strong economic recovery, it is not surprising that small cap value stocks performed the best with the Russell 2000 Value Index returning 73.3%. While the dispersion between value and growth was widest in small cap stocks, it narrowed significantly moving up the market capitalization spectrum. Source: Investment Metrics 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth 3000 Value 3000 Index 3000 Growth 1000 Value 1000 Index 1000 Growth MidCap Value MidCap Index MidCap Growth 2000 Value 2000 Index 2000 Growth Quarter PerFormance - Russell Style Series 1-Year Performance - Russell Style Series �.l� Page 4 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 0.0% 20.0% 40.0% 60.0% 80.0% The Market Environment GICS Sector Performance & (Sector Weight) As of June 30, 2021 Industrials (16.0%) Info Technology (12.5°/a) Materials (4.6%) Real Estate (6.1 %) Utilities (2.7%) Russe111000 ■Quarter ❑1-Year RuSSe112000 ❑Quarter ❑1-Year Source: Morningstar Direct As a result of the GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector's current constituency, post creation of the Communication Services sector. � � Tn • Sector performance was positive across ten of the eleven large cap economic sectors for the 2"d quarter. Five sectors outpaced the return of the broad index during the period. Comm services (10.6%) ■ Inflation-sensitive sectors like real estate and energy were the two best Consumer Disc (12.1 %) performing sectors for the quarter, returning 12.3% and 11.9% respectively. In general, companies in sectors with the ability to pass along rising costs to Consumer Staples (5.7%) consumers experienced the strongest returns. The technology sector benefited from falling interest rates during the period, which acted as a tailwind to Energy (2.6%) earnings. While nearly all sectors experienced positive results, the utilities Financials (11.6%) sector (-0.4%) lagged its peers and the broad index results. Health Care (13.1 %) For the full year, seven sectors exceeded the return of the broad large cap benchmark: communication services, consumer discretionary, energy, financials, industrials, information technology, and materials. Over the trailing 1-year period, financials (62.0%), energy (51.6%), industrials (51.0%), and communication services (49.7%) were the best performing economic sectors. The weakest economic sector in the Russell 1000 for the trailing year, utilities, still managed to produce a strong return of 16.0%. Industrials (9.3%) Info Technology (26.5%) Materials (2.9%) Real Estate (3.1 %) Utilities (2.5%) ■ Similar to large cap stocks, ten of the eleven small cap sectors posted positive performance for the quarter and six of them managed to outpace the return of the broad Russell 2000 Index. Communication services was the best performing sector during the quarter, returning a robust 33.0%. Energy stocks Comm services (2.5%) also performed well during the period with a return of 20.9%. consumer �isc (�a.7%) ■ For the full 1-year period, five of the eleven sectors outperformed the broad Consumer staples (3.3%) benchmark: energy (134.2%), communication services (105.0%), consumer discretionary (100.5%), materials (87.6%), and industrials (70.5%). The Energy (2.7%) combination of rapidly improving economic conditions, rising energy prices, Financials (16.0%) and increased inflationary pressures were the primary catalysts for the exceptional performance. Heaitn Care (�8.9%) Page 5 -5.0% 10.0% 25.0% 40.0% 55.0% -10.0% 15.0% 40.0% 65.0% 90.0% 115.0% 140.0% The Market Environment Top 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000 As of June 30, 2021 s Apple Inc 5.22 % 12.3 % 512 % Information Technology Microsoft Corp 4.96 % 15.2% 34.4% Information Technology Amazon.com Inc 3.62 % 11.2 % 24.7 % Consumer Discretionary Facebook Inc A 2.02% 18.1% 53.1% Communication Services Alphabet Inc A 1.78% 18.4 % 722 % Communication Services Alphabet Inc Class C 1.73% 21.2% 77.3% Communication Services Tesla Inc 1.28% 1.8% 214.7% Consumer Discretionary Berkshire Hathaway Inc Class B 1.27% 8.8% 55.7% Financials NVIDIA Corp 1.16% 49.9% 110.8% Information Technology JPMorgan Chase & Co 1.14% 2.8% 70.7% Financials �� e Moderna Inc 0.19% 79.4% 266.0% Health Care NovoCure Ltd 0.06°/o 67.8% 274.1% Health Care Hayward Holdings Inc 0.00% 54.1% N/A Consumer Discretionary Cloudflare Inc 0.06% 50.6% 194.4% Information Technology Virgin Galactic Holdings Inc Shs A 0.02°/o 502% 181.5% Industrials NVIDIA Corp 1.16% 49.9% 110.8% Information Technology Continental Resources Inc 0.01°/o 47.5% 117.7% Energy Nutanix Inc A 0.02% 43.9% 61.2% Information Technology Roku Inc Class A 0.13 % 41.0% 294.1% Communication Services Targa Resources Corp 0.02 % 40.4°/ 125.5 % Energy QuantumScape Corp Ord Shares A 0.01 % -34.6% N/A Consumer Discretionary Discovery Inc Class A 0.01 % -29.4% 45.4% Communication Services Penn National Gaming Inc 0.03% -27.0% 150.5% Consumer Discretionary TripAdvisorinc 0.01% -25.1% 112.0% CommunicationServices Sage Therapeutics Inc 0.01% -24.1% 36.6% Health Care Discovery Inc C 0.02% -21.4% 50.5% Communication Services The Scotts Miracle Gro Co A 0.02% -21.4% 49.0% Materials CureVac NV Ordinary Shares 0.01 °/o -19.7% N/A Health Care Exelixis Inc 0.01 % -19.3% -23.3% Health Care Guardant Health Inc 0.03% -18.6% 53.1% Health Care Source: Morningstar Direct AMC Entmt Holdings Inc Class A 0.76 % 455.1 % 1221.2 % Communication Services Intellia Therapeutics Inc 0.34% 101.7 % 670.3% Health Care Arrowhead Pharmaceuticals Inc 0.28 % 24.9 % 91.8 % Health Care Ovintiv Inc 0.27% 32.7% 240.7% Energy Lattice Semiconductor Corp 025 % 24.8 % 97.9% Information Technology II-VI Inc 0.25% 6.2% 53.7% Information Technology Crocs Inc 0.25% 44.8% 216.5% Consumer Discretionary Scientific Games Corp Ordinary Shares 0.25% 101.0% 400.9% Consumer Discretionary Staar Surgical Co 0.24% 44.7°/o 147.8% Health Care Denali Therapeutics Inc 0.24% 37.4% 224.4% Health Care e AMC Entmt Holdings Inc Class A 0.76% 455.1 % 1221.2% Communication Services Brooklyn ImmunoTherap Inc Ord Shrs 0.01% 384.1% N/A Health Care Laredo Petroleum Inc 0.04% 208.7% 569.5% Energy Atossa Therapeutics Inc 0.02% 199.5°/o 66.3% Health Care Peabody Energy Corp 0.02% 1592% 175.3% Energy Apollo Medical Holdings Inc 0.08% 131.9% 280.7% Health Care Asana Inc Ordinary Shares - Class A 0.15% 117.0% N/A Information Technology Agiliti Inc Ordinary Shares 0.02% 116.5°/o 1338.8% Health Care HyreCar Inc 0.01 % 113.5 % 614.0% Industrials Prothena Corp PLC 0.06 % 104.7 % 391.5°/ Health Care ChemoCentryx Inc 0.02% -73.9% -76.7% Health Care Atea Pharmaceuticals Inc Ord Shares 0.05% -65.2% N/A Health Care Adverum Biotechnologies Inc 0.01% -64.5% -83.2% Health Care Vor Biopharma Inc Ordinary Shares 0.01 % -56.7% N/A Health Care Aemetis Inc 0.01 % -54.4% 1282.9% Energy Bolt Biotherapeutics Inc Ord Shares 0.01 % -53.0% N/A Health Care Gemini Therapeutics Inc Ord Shares 0.00% -52.3% N/A Health Care iRhythm Technologies Inc 0.06% -52.2% -42.7% Health Care Sigilon Therapeutics Inc Ord Shares 0.00% -52.0% N/A Health Care Aterianlnc 0.01% -50.4% 166.5% ConsumerDiscretionary �Tn Page 6 • All broad international equity indexes tracked in the chart posted positive returns in both US dollar (USD) and local currency terms for the 2nd quarter. For the period, developed markets outperformed emerging markets in both USD and local currency. The MSCI EAFE Index returned 5.2°/o in USD and 4.8% in local currency terms for the period while the MSCI Emerging Markets Index returned a slightly lower 5.1 % in USD and 3.8% in local currency terms. ■ The trailing 1-year results for international developed and emerging markets were positive across all regions and currencies. The MSCI EAFE Index returned 32.4% in USD and 27.1 °/o in local currency terms, while the MSCI Emerging Markets Index returned 40.9% in USD and 36.1% in local currency terms. Performance within the emerging markets regions was led by Latin America with the EM Latin America Index returning 44.9% in USD and 31.0% in local terms. Source: MSCI Global Index Monitor (Returns are Net) The Market Environment International and Regional Market Index Performance (Country Count) As of June 30, 2021 Quarter Performance ■USD ❑Local Currency AC World x US (48) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (26) EM EMEA (11) EM Asia (9) EM Latin Amer (6) 0.0% 2.0% 4.0% 1-Year Performance AC World x US (48) WORLD x US (22) EAFE (21) Europe & ME (16) Pacific (5) Emerging Mkt (26) EM EMEA (11) EM Asia (9) EM Latin Amer (6) 0.0% �!� Page 7 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% ❑USD ❑Local Currency 10.0% 20.0% 30.0% 40.0% 50.0% The Market Environment Communication Services 4.9 % 0.3% 26.1 % Consumer Discretionary 13.0 % 5.5 % 49.8 % Consumer Staples 10.5 % 8.5 % 17.9 % Energy 3.2% 2.7% 29.1% Financials 17.0 % 3.2 % 40.2 % Health Care 12.4 % 9.3 % 12.3 % Industrials 15.5 % 3.6 % 39.6 % Information Technology 9.1% 8.3% 40.2% Materials 7.9 % 5.1 % 47.2 % Real Estate 3.0 % 5.3 % 27.6 % Utilities 3.4 % -1.1 % 12.7 % ii i Communication Services 6] % 1.5 % 24.9 % Consumer Discretionary 13.8 % 4.8 % 44.6 % Consumer Staples 8.5 % 7.7 % 19.1 % Energy 4.5 % 8.2 % 342 % Financials 18.6 % 4.3 % 40.7 % Health Care 9.3 % 9.9 % 15.2 % Industrials 11.8 % 4.4 % 40.3 % Information Technology 12.9 % 7.0 % 56.6 % Materials 8.3 % 6.5 % 49.5 % Real Estate 2.6 % 2.5% 22.3°/ Utilities 3.0 % -0.3 % 14.9 % Communication Services 11.3 % 1.9 % 23.0 % Consumer Discretionary 17.6% 3.6°/ 36.8 % Consumer Staples 5.6 % 4.5 % 23.7 % Energy 5.0 % 12.1 % 31.8 % Financials 17.8 % 4.2 % 33.0 % Health Care 5.0% 14.1% 32.3% Industrials 4.9 % 13.2 % 45.2 % Information Technology 20.4% 3.8% 75.8°/ Materials 8.4 % 8.4 % 71.4 % Real Estate 2.0 % -6.0 % 6.6 % Utilities 1.9 % 2.0 % 20.3 % US Dollar International Index Attribution & Country Detail As of June 30, 2021 Japan 23.2% 14.3 % -0.3% 24.8% United Kin dom 14.4% 8.9% 6.0% 31.3% France 11.5 % 7.1 % 9.1 % 40.9°/ Switzerland 9.8% 6.0°/ 11.5% 24.3°/ Germany 9.4 % 5.8 % 4.7 % 31.8 % Australia 7.2 % 4.4 % 6.9 % 39.6 % Netherlands 4.4 % 2.7 % 7.3 % 49.6 % Sweden 3.8% 2.3% 5.5% 53.9% Hong Kong 3.3 % 2.0 % 2.5 % 29.0 % Denmark 2.6°/ 1.6°/ 13.1 % 44.2°/ Italy 2.5% 1.5% 3.6% 36.6% Spain 2.5% 1.5% 5.3% 30.7% Singapore 1.1 % 0.7 % 0.5 % 28.7 % Finland 1.1 % 0.7 % 10.8 % 34.7 % Belgium 1.0% 0.6% 9.2% 28.5% Ireland 0.7% 0.4% 2.4% 39.6% Norway 0.6 % 0.4 % 4.9 % 49.6 % Israel 0.6% 0.4% 5.1% 22.5% New Zealand 0.2 % 0.2 % -5.1 % -5.0 % Austria 0.2 % 0.1 % 11.5 % 70.9 % Portugal 0.2 % 0.1 % -0.9 % 11.4 % ii i , Canada 7.0 % 10.0 % 45.8 % �- China 11.7 % 2.3 % 27.4 % Taiwan 4.4% 7.1% 70.5% Korea 4.1 % 4.8 % 66.2 % India 3.1 % 6.9 % 56.4 % Brazil 1.6 % 22.9 % 46.6 % South Africa 1.1 % -1.5 % 39.9 % Russia 1.1 % 14.0 % 38.6 % Saudi Arabia 0.9% 10.0% 49.3% Mexico 0.6°/ 9.1 % 55.9 % Thailand 0.5°/ -4.9% 7.0% Malaysia 0.4 % -2.5 % 3.8 % Indonesia 0.4 % -5.1 % 7.6 % Poland 0.2 % 18.7 % 26.7 % United Arab Emirates 0.2 % 112 % 50.4 % Qatar 0.2 % 2.2 % 15.1 % Philippines 0.2 % 7.6 % 14.3 % Chile 0.1 % -14.2 % 23.4 % Hun a 0.1% 14.8% 46.1% Turkey 0.1% -0.5% -13.0% Peru 0.1°/ -8.8% 9.6% Colombia 0.1 % -2.9 % 18.0 % Argentina 0.0 % 5.8 % 28.6 % Greece 0.0 % 8.2 % 32.0 % Czech Republic 0.0% 14.6% 52.1 % Egypt 0.0 % -9.2 % -13.4 % Pakistan 0.0 % -6.7% 13.2°/ Source: Morningstar Direct, MSCI G/obal Index Monitor (Returns are Net in USD) As a result of Ihe GICS classification changes on 9/28/2018 and certain associated reporting limitations, sector performance represents backward looking performance for the prior year of each sector's current constituency, post creation of the Communication Services sector. � � Tn Page 8 The Market Environment Domestic Bond Sector & Broad/Global Bond Market Performance (Duration) As of June 30, 2021 • Fixed income markets performed well during the 2nd quarter primarily due to falling US interest rates which acted as general tailwind for bond benchmark performance. The Bloomberg Barclays (BB) US Aggregate Bond Index returned a solid 1.8% for the period. ■ Digging deeper into the investment grade index's segments, while each component exhibited positive performance, the US Corporate Investment Grade (3.5%) and US TIPS (3.2%) benchmark segments drove results. Although yields on issues of less than 2-years remained stable during the quarter, yields on longer-dated issues declined substantially over concerns of future economic growth. ■ Outside of domestic markets, the BB Global Aggregate ex US Index posted a 0.9% return for the quarter. Like international stocks, global bonds were negatively impacted by the strengthening USD. ■ Over the trailing 1-year period, domestic bond performance was slightly negative while global bonds posted solid, positive results. The BB Global Aggregate ex US Index return of 4.6% easily outpaced the domestic BB US Aggregate Index's return of -0.3%. A steepening yield curve, combined with a falling USD, were the primary contributors to the relative outperformance of global bonds for the year. ■ The dispersion of returns for the year within bond market segments was significant and was led by the US High Yield Index's return of 15.4%. The combination of a lower average duration and a greater sensitivity to equity market movements were the primary performance catalysts. US TIPS also performed well for the year with the index returning 6.5%. Persistent concerns about rising inflation acted like a tailwind for TIPS issues. Source: Bloomberg Quarter Performance U.S. Treasury(7.0) U.S. Mortgage (4.2) U.S. Corporate IG (8.7) U.S. High Yield (3.8) U.S. TIPS (6.6) AAA (5.7) a,a, (s.a� A (8.4) Baa (8.8) Aggregate (6.6) Intermediate Agg (4.2) Global Agg x US (8.2) Multiverse (7.3) 1-Year Performance U.S. Treasury(7.0) U.S. Mortgage (4.2) U.S. Corporate IG (8.7) U.S. High Yield (3.8) U.S. TIPS (6.6) AAA (5.7) a,a, (a.a) A (8.4) Baa (8.8) Aggregate (6.6) Intermediate Agg (4.2) Global Agg x US (8.2) Multiverse (7.3) �Tn Page 9 0.0% 1.0% 2.0% 3.0% 4.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% The Market Environment Market Rate & Yield Curve Comparison As of June 30, 2021 ■ The gray band across the graph illustrates the range of the Fed Funds Rate. Over the past year, the Fed's target rate range has remained unchanged at 0.00% to 0.25%. During its June meeting, the Federal Open Market Committee (FOMC) reiterated its commitment to keeping interest rates near zero while also maintaining its asset purchase program aimed at supplying the market with ample liquidity. • The yield on the US 10-year Treasury (green line) began increasing rapidly as the economy slowly began to open earlier this year. After reaching a high of 1.74% during the 1st quarter of 2021, interest rates in the US began to fall as concerns about future economic growth increased. ■ The blue line illustrates changes in the BAA OAS (Option Adjusted Spread). This measure quantifies the additional yield premium that investors require to purchase and hold non-Treasury investment grade issues. The narrowing spread the line illustrates indicates investors remain comfortable owning credit as the probability of corporate defaults remains low. While nearly triple the BAA OAS, the High Yield OAS shows a similar willingness by investors to hold non-Treasury debt. ■ The lower graph provides a snapshot of the US Treasury yield curve at the end of each of the last four quarters. Beginning in the 3rd quarter of 2020, longer-term interest rates began to move higher as investors' optimism improved. This trend continued through the 1st quarter as economic growth surprised to the upside. Since then, longer-term US interest rates have fallen. Source: US Department of Treasury, FRED (Federal Reserve of St. Louis) 7.00 6.00 5.00 4.00 3.00 2.00 1.00 o.00 ; � � � ! Jun-20 JuI120 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Treasury Yield Curve 2.50 - ��9 30 2020 12 31 2020 3/31 /2021 6/30/2021 2.00 1.50 - � � 1.00 - � ` � 0.50 - / �� 0.00 - � 1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr �T^ Page 10 1-Year Trailing Market Rates Q� Page 11 Asset Allocation Summary Total Fund As of June 30. 2021 Asset Allocation By Segment as of March 31, 2021 : $5,416,721 Allocation ■ Domestic Equity International Equity ■ Fixed Income Cash Equivalent Market Value 2,499,947 841,961 2,052,232 22,582 Allocation 46.2 15.5 37.9 0.4 Allocation Segments ■ Domestic Equity International Equity Fixed Income Cash Equivalent Asset Allocation By Segment as of June 30, 2021 : $5,681,684 Market Value Allocation 2,653,531 46.7 900,672 15.9 2,082,844 36.7 44,637 0.8 Page 12 Asset Allocation Summary Total Fund As of June 30. 2021 AI location Asset Allocation By Manager as of March 31, 2021 : $5,416,721 � ■ Dodge & Cox Income Fund (DODIX) Vanguard Index 500 Admiral (VFIAX) ■ American Funds EuroPacific Gr R6 (RERGX) Vanguard Extended Mkt Index (VEXAX) ■ MFS Growth Fund (MFEKX) ■ Vanguard Equity-Income (VEIRX) R&D Market Value 2,052,232 942,795 841,961 632,280 557, 044 367, 828 22,582 Allocation 37.9 17.4 15.5 11.7 10.3 6.8 0.4 Asset Allocation By Manager as of June 30, 2021 : $5,681,684 Allocation ■ Dodge & Cox Income Fund (DODIX) Vanguard Index 500 Admiral (VFIAX) ■ American Funds EuroPacific Gr R6 (RERGX) Vanguard Extended Mkt Index (VEXAX) ■ MFS Growth Fund (MFEKX) ■ Vanguard Equity-Income (VEIRX) R&D Market Value 2,082,844 961,899 900,672 677,250 627,186 387,197 44,637 Allocation 36.7 16.9 15.9 11.9 11.0 6.8 0.8 Page 13 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending June 30, 2021 Schedule of Investable Assets $6,600,000 $6,000,000 $5,400,000 $4,800,000 $4,200,000 3 $3,600,000 > Y d Y L � $3,000,000 $2,400,000 $1,800,000 $1,200,000 $600,000 $5,681, 684 $3,079,187 $0 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 12/19 6/20 12/20 6/21 — Total Fund Composite Net Cash Flow Page 14 Okeechobee Municipal Firefighters' Pension Fund Asset Allocation Compliance As of June 30, 2021 Executive Summary Total Domestic Equity Composite $2,653,531.2 (46.7%) Total International Equity Composite $900,672.0 (15.9%) I Total Fixed Income Composite $2,082,843.6 (36.7%) R&D $44,637.4 (0.8%) -10.0 % Asset Allocation Compliance � 0.0% 10.0% Policy � 20.0% � Target � 30.0% 40.0% . In Policy . Outside Policy Asset Current Minimum Maximum Target Allocation Allocation (%) Allocation (%) Allocation (%) Allocation (%) $ Total Fund Composite 5,681,684 100.0 N/A N/A 100.0 Total Domestic Equity Composite 2,653,531 46.7 40.0 50.0 45.0 Total International Equity Composite 900,672 15.9 10.0 20.0 15.0 Total Fixed Income Composite 2,082,844 36.7 30.0 50.0 40.0 R&D 44,637 0.8 0.0 0.0 0.0 Min. Rebal. ($000) -380,858 -332,504 -378,338 -44,637 � 50.0% 60.0% Max. Rebal. Target Rebal. ($000) ($000) 187,311 -96,773 235,665 -48,419 757,998 189,830 -44,637 -44,637 Page 15 Financial Reconciliation Total Fund 1 Quarter Ending June 30, 2021 Financial Reconciliation Quarter to Date Total Equity Composite Vanguard Extended Mkt Index (VEXAX) Vanguard Index 500 Admiral (VFIAX) MFS Growth Fund (MFEKX) Vanguard Equity-Income (VEIRX) American Funds EuroPacific Gr R6 (RERGX) Total Fized Income Composite Dodge & Cox Income Fund (DODIX) R&D + Total Fund Composite - Market Value 04/01/2021 3,341,908 632,280 942,795 557, 044 367, 828 841,961 2,052,232 2,052,232 22,582 5,416,721 Net Transfers -60,000 -60,000 -10,000 -10,000 70,000 Contributions Distributions Management Fees 18,191 -37,672 + - 18,191 -37,672 , - Other Expenses -28,466 -28,466 Income 46,989 1,544 3,221 2,448 1,848 37,927 10,125 10,125 3 57,117 Apprec./ Deprec. 225,306 43,426 75,883 67,693 17,520 20,784 30,487 30,487 255,793 Market Value 06/30/2021 3,554,203 677,250 961,899 627,186 387,197 900,672 2,082,844 2,082,844 44,637 5,681,684 Page 16 Financial Reconciliation Total Fund October 1, 2020 To June 30, 2021 Financial Reconciliation Fiscal Year to Date Total Equity Composite Vanguard Extended Mkt Index (VEXAX) Vanguard Index 500 Admiral (VFIAX) MFS Growth Fund (MFEKX) Vanguard Equity-Income (VEIRX) American Funds EuroPacific Gr R6 (RERGX) Total Fized Income Composite Dodge & Cox Income Fund (DODIX) R&D + Total Fund Composite - 3,122,889 751,128 857,489 513, 950 295, 362 704,960 1,701,434 1,701,434 19,480 4,843,802 Net Transfers -491,000 -360, 000 -131, 000 350,000 350,000 141,000 Contributions Distributions Management Fees 67,367 -133,049 - 67,367 -133,049 - Other Expenses -50,167 -50,167 Income 85,467 6,582 9,990 20,447 7,105 41,342 85,527 85,527 6 171,000 Apprec./ Deprec. 836,848 279,540 225,419 92,788 84,730 154,370 -54,117 -54,117 782,730 Market Value 06/30/2021 3,554,203 677,250 961,899 627,186 387,197 900,672 2,082,844 2,082,844 44,637 5,681,684 Page 17 Comparative Performance Total Fund As of June 30, 2021 Comparative Performance Trailing Returns Total Fund Composite (Gross) Total Fund Policy Difference All Public Plans-Total Fund Median Total Fund Composite (Net) Total Fund Policy Difference Total Equity Composite Total Equity Policy Difference Total Domestic Equity Composite Total Domestic Equtiy Policy Difference Vanguard Equity-Income (VEIRX) Russell 1000 Value Index Difference IM U.S. Large Cap Value Equity (MF) Median Vanguard Index 500 Admiral (VFIAX) S&P 500 Index Difference IM U.S. Large Cap Core Equity (MF) Median MFS Growth Fund (MFEKX) Russell 1000 Growth Index Difference IM U.S. Large Cap Growth Equity (MF) Median Vanguard Extended Mkt Index (VEXAX) S&P Completion Index Difference IM U.S. SMID Cap Core Equity (MF) Median QTR 5.81 (8) 5.28 �32) 0.53 4.96 5.81 5.28 0.53 8.21 7.86 0.35 8.62 8.24 0.38 5.27 (50) 5.21 (53) 0.06 5.25 8.54 (33) 8.55 (33) -0.01 8.00 12.59 (21) 11.93 (33) 0.66 11.37 7.11 (10) 7.12 (9) -0.01 4.52 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. FYTD 19.85 (45) 17.44 (77) 2.41 19.48 19.85 17.44 2.41 32.02 31.45 0.57 33.61 32.01 1.60 31.08 (78) 36.07 (51) -4.99 36.19 29.24 (47) 29.25 (47) -0.01 28.97 22.03 (86) 25.86 (43) -3.83 25.55 47.12 (49) 47.04 (50) 0.08 47.04 1 YR 27.51 (30) 23.75 (66) 3.76 25.45 27.51 23.75 3.76 44.26 42.99 1.27 45.84 44.16 1.68 37.82 (77) 43.68 (49) -5.86 43.46 40.76 (46) 40.79 (45) -0.03 40.23 35.35 (89) 42.50 (28) -7.15 39.97 61.64 (26) 61.60 (27) 0.04 55.22 3 YR 12.95 (15) 12.40 (23) 0.55 11.11 12.95 12.40 0.55 16.98 17.35 -0.37 18.03 18.73 -0.70 N/A 12.42 (44) N/A 12.04 18.64 (32) 18.67 (32) -0.03 17.38 23.41 (51) 25.14 (24) -1.73 23.43 18.62 (4) 18.50 (6) 0.12 12.38 5 YR 11.98 (20) 11.15 (37) 0.83 10.70 11.93 11.15 0.78 16.81 16.91 -0.10 17.56 17.89 -0.33 N/A 11.87 (59) N/A 12.29 N/A 17.65 (27) N/A 16.50 N/A 23.66 (31) N/A 22.71 18.84 (5) 18.73 (7) 0.11 13.27 Inception 7.20 (28) 7.02 (38) 0.18 6.79 7.58 7.79 -0.21 9.96 10.67 -0.71 10.36 11.48 -1.12 16.87 (69) 17.69 (52) -0.82 17.92 16.94 (29) 16.98 (29) -0.04 15.78 24.13 (32) 24.02 (33) 0.11 23.01 13.16 (6) 13.06 (7) 0.10 9.94 Inception Date 10/01 /2007 01/01/2003 01/01/2003 01/01/2003 06/01 /2019 03/01 /2017 03/01 /2017 01 /01 /2014 Page 18 Total International Equity Composite Total International Equity Policy Difference American Funds EuroPacific Gr R6 (RERGX) MSCI AC World ex USA Difference IM International Large Cap Growth Equity (MF) Median Total Fixed Income Composite Total Fixed Income Policy Difference Dodge & Cox Income Fund (DODIX) Blmbg. Barc. U.S. Aggregate Index Difference IM U.S. Broad Market Core Fixed Income (MF) Median QTR 6.97 5.64 1.33 6.97 (20) 5.64 (59) 1.33 6.18 1.99 1.83 0.16 1.98 (44) 1.83 (62) 0.15 1.93 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. FYTD 27.76 28.14 -0.38 27.76 (16) 28.14 (15) -0.38 22.40 1.91 -0.95 2.86 1.89 (9) -0.95 (86) 2.84 0.17 1 YR 40.10 36.29 3.81 40.10 (11) 36.29 (33) 3.81 33.69 3.42 -0.34 3.76 3.39 (12) -0.34 (88) 3.73 1.25 3 YR 13.79 9.88 3.91 13.79 (25) 9.88 (80) 3.91 12.21 6.42 5.34 1.08 6.42 (13) 5.34 (66) 1.08 5.62 5 YR 14.50 11.59 2.91 14.50 (18) 11.59 (59) 2.91 12.57 4.54 3.03 1.51 4.54 (4) 3.03 (68) 1.51 3.31 Comparative Performance Total Fund As of June 30, 2021 Inception Inception Date 8.65 01/01/2014 6.22 2.43 8.65 (14) 6.22 (61) 2.43 6.87 3.95 3.95 0.00 3.84 (2) 2.85 (56) 0.99 2.94 01 /01 /2014 01/01/2003 11 /01 /2012 Page 19 Comparative Performance Total Fund As of June 30, 2021 Comparative Performance Fiscal Year Returns Oct-2019 Oct-2078 Oct-2017 Oct-2016 Oct-2015 Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 To To To To To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Total Fund Composite (Gross) 12.34 (5) 3.87 (63) 8.40 (33) 12.18 (47) 8.47 (81) -0.63 (46) 12.18 (7) 8.60 (90) 18.27 (37) -1.69 (90) Total Fund Policy 10.71 (14) 5.71 (16) 7.54 (52) 11.19 (65) 10.43 (26) -0.74 (48) 10.33 (43) 10.28 (81) 17.77 (50) 2.00 (25) Difference 1.63 -1.84 0.86 0.99 -1.96 0.11 1.85 -1.68 0.50 -3.69 All Public Plans-Total Fund Median 7.59 4.29 7.65 11.96 9.75 -0.81 9.87 12.46 17.63 0.50 Total Fund Composite (Net) 12.34 3.87 8.40 11.97 8.36 -0.82 11.85 8.19 17.72 -2.18 Total Fund Policy 10.71 5.71 7.54 11.19 10.43 -0.74 10.33 10.28 17.77 2.00 Difference 1.63 -1.84 0.86 0.78 -2.07 -0.08 1.52 -2.09 -0.05 -4.18 Total Equity Composite 15.04 0.94 13.75 18.99 9.70 -1.20 15.22 13.59 26.76 -3.31 Total Equity Policy 12.06 2.04 13.62 19.14 13.68 -3.37 14.58 18.84 26.35 -0.48 Difference 2.98 -1.10 0.13 -0.15 -3.98 2.17 0.64 -525 0.41 -2.83 Total Domestic Equity Composite 15.06 0.88 17.80 18.44 10.04 -0.01 16.46 13.59 26.76 -3.31 Total Domestic Equtiy Policy 15.00 2.92 17.58 18.71 14.96 -0.49 17.76 21.60 30.20 0.55 Difference 0.06 -2.04 022 -0.27 -4.92 0.48 -1.30 -8.01 -3.44 -3.86 Vanguard Equity-Income (VEIRX) -2.77 (35) N/A N/A N/A N/A N/A N/A N/A N/A N/A Russell 1000 Value Index -5.03 (54) 4.00 (30) 9.45 (61) 15.12 (72) 16.19 (18) -4.42 (41) 18.89 (19) 22.30 (52) 30.92 (15) -1.89 (30) Difference 2.26 N/A N/A N/A N/A N/A N/A N/A N/A N/A IM U.S. Large Cap Value Equity (MF) Median -4.55 1.87 10.42 16.74 12.49 -4.90 17.21 22.35 28.44 -3.39 Vanguard Extended Mkt Index (VEXAX) 12.98 (5) -3.80 (46) 16.12 (15) 19.00 (28) 13.44 (48) -0.21 (44) N/A N/A N/A N/A S&PCompletionlndex 12.94 (6) -3.96 (50) 16.02 (18) 18.91 (29) 13.26 (51) -0.27 (45) 9.66 (47) 31.34 (27) 30.37 (22) -2.06 (42) Difference 0.04 0.16 0.10 0.09 0.18 0.06 N/A N/A N/A N/A IM U.S. SMID Cap Core Equity (MF) Median -3.66 -4.11 12.98 17.28 13.28 -0.63 9.46 27.60 27.95 -2.39 Vanguard Index 500 Admiral (VFIAX) 15.11 (37) 4.22 (39) 17.87 (28) N/A N/A N/A N/A N/A N/A N/A S&P5001ndex 15.15 (36) 4.25 (39) 17.91 (27) 18.61 (46) 15.43 (18) -0.61 (31) 19.73 (18) 19.34 (60) 30.20 (23) 1.14 (24) Difference -0.04 -0.03 -0.04 N/A N/A N/A N/A N/A N/A N/A IM U.S. Large Cap Core Equity (MF) Median 12.90 3.21 16.07 18.38 13.06 -1.60 17.39 19.95 27.93 -1.12 MFS Growth Fund (MFEKX) 32.47 (65) 7.56 (10) 29.09 (17) N/A N/A N/A N/A N/A N/A N/A Russell 1000 Growth Index 37.53 (34) 3.71 (33) 26.30 (38) 21.94 (28) 13.76 (18) 3.17 (45) 19.15 (22) 19.27 (52) 29.19 (35) 3.78 (17) Difference -5.06 3.85 2.79 N/A N/A N/A N/A N/A N/A N/A IM U.S. Large Cap Growth Equity (MF) Median 34.55 2.32 25.06 20.13 10.96 2.84 16.89 19.37 27.40 0.50 Total International Equity Composite 14.97 1.14 1.47 20.64 8.52 -4.93 N/A N/A N/A N/A Total International Equity Policy 3.45 -0.72 2.25 20.15 9.80 -11.78 5.22 16.98 15.04 -10.42 Difference 11.52 1.86 -0.78 0.49 -1.28 6.85 N/A N/A N/A N/A Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. Page 20 Comparative Performance Total Fund As of June 30, 2021 Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 Oct-2013 Oct-2012 Oct-2011 Oct-2010 To To To To To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2075 Sep-2014 Sep-2013 Sep-2012 Sep-2011 American Funds EuroPacific Gr R6 (RERGX) 14.97 (35) 1.14 (45) 1.47 (60) 20.63 (8) 8.52 (38) -4.93 (34) N/A N/A N/A N/A MSCI AC World ex USA 3.45 (88) -0.72 (67) 2.25 (51) 20.15 (19) 9.80 (27) -11.78 (89) 5.22 (29) 16.98 (58) 15.04 (76) -10.42 (46) Difference 11.52 1.86 -0.78 0.48 -128 6.85 N/A N/A N/A N/A IM International Large Cap Growth Equity (MF) Median 13.05 0.81 2.28 17.85 7.77 -5.68 4.23 17.85 17.92 -10.80 Total Fixed Income Composite 7.68 9.12 -0.11 2.57 7.09 0.24 5.18 -1.38 4.93 1.16 Total Fixed Income Policy 6.98 10.30 -122 0.07 5.19 2.94 3.96 -1.68 5.16 5.02 Difference 0.70 -1.18 1.11 2.50 1.90 -2.70 1.22 0.30 -0.23 -3.86 Dodge & Cox Income Fund (DODIX) 7.70 (25) 9.13 (79) -0.12 (7) 2.57 (3) 7.09 (3) 0.16 (94) 5.76 (9) N/A N/A N/A Blmbg. Barc. U.S. Aggregate Index 6.98 (50) 10.30 (24) -1.22 (41) 0.07 (64) 5.19 (51) 2.94 (9) 3.96 (59) -1.68 (53) 5.16 (81) 5.26 (14) Difference 0.72 -1.17 1.10 2.50 1.90 -2.78 1.80 N/A N/A N/A IM U.S. Broad Market Core Fixed Income (MF) Median 6.96 9.81 -1.34 0.48 5.21 1.98 4.19 -1.62 6.79 4.31 Returns for periods greater than one year are annualized. Returns are expressed as percentages. Manager performance is an estimate and subject to change. Page 21 Strategy Review Total Fund Composite � Total Fund Policy As of June 30, 2021 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 12.95 12.87 0.90 110.17 10 115.91 2 Investment 11.98 10.34 1.03 109.67 18 112.46 2 Index 1240 11.19 0.98 100.00 10 100.00 2 Index 11.15 9.08 1.OS 100.00 17 100.00 3 Risk and Return 3 Years 132 13.0 e 12.8 c 3 � 12.6 12.4 12.2 10.8 11.1 11.4 • Investment O Index 3 Year Rolling Percentile Rank All Public Plans-Total Fund o.o = 2s.o � � d .� � so.o d a c � � 75.0 Risk and Return 5 Years 12.3 12.0 e 11.7 c J � 11.4 11.1 10.8 8.8 9.0 92 • Investment O Index 5 Year Rolling Percentile Rank All Public Plans-Total Fund o.o = 2s o � � d .� c°�i 50.0 d a c � � 75.0 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 20 5 (25 % ) 8 (40 % ) 6 (30 % ) 1 (5 % ) Investment 20 5 (25 % ) 7 (35 % ) 8 (40 % ) 0 (0 % ) - Index 20 6(30%) 11 (55%) 3(15%) 0(0%) - Index 20 3(15%) 16 (80%) 1(5%) 0(0%) Page 22 11.7 12.0 12.3 12.6 12.9 132 Risk (Standard Deviation % ) 9.4 9.6 9.8 10.0 102 10.4 10.6 Risk (Standard Deviation % ) Strategy Review Total Fund Composite � Total Fund Policy As of June 30, 2021 Peer Group Analysis - All Public Plans-Total Fund 40.0 36.0 32.0 28.0 • 24.0 � = 20.0 e L � � 16.0 O � � 12.0 � � O � O 8.0 � � - � � 4.0 0.0 -4.0 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 5.81 (8) 19.85 (45) 27.51 (30) 16.51 (12) 12.95 (15) 11.94 (17) 11.98 (20) O Index 5.28 (32) 17.44 (77) 23.75 (66) 14.72 (35) 12.40 (23) 11.17 (31) 11.15 (37) Median 4.96 19.48 25.45 13.63 11.11 10.42 10.70 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment 1.49 (90) 11.60 (20) 6.39 (8) Index 1.99 (84) 9.38 �72� 5.37 (44� Median 3.19 1024 524 Page 23 Peer Group Analysis - All Public Plans-Total Fund 20.0 17.0 14.0 � 11.0 O 8.0 E � � 5.0 2.0 -1.0 -4.0 � 0 � � � � � � � � Q -7.0 Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment 12.34 (5) 3.87 (63) 8.40 (29) 12.18 (46) 8.47 (78) -0.63 (49) O Index 10.71 (14) 5.71 (17) 7.54 (47) 11.19 (64) 10.43 (24) -0.74 (51) Median 7.59 4.31 7.40 11.83 9.67 -0.67 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 16.21 (6) -14.17 (67) 5.87 (21) 13.33 �33) -1210 (32) 5.48 �41 ) 1225 -1320 523 Strategy Review Vanguard Index 500 Admiral (VFIAX) � S&P 500 Index As of June 30, 2021 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 18.64 1827 0.95 99.95 10 100.07 2 Investment N/A N/A N/A N/A N/A N/A N/A Index 18.67 1826 0.96 100.00 10 100.00 2 Index 17.65 14.86 1.09 100.00 17 100.00 3 Risk and Return 3 Years 18.7 e c � d K • 18.6 � 182 Risk (Standard Deviation % ) • Investment O Index 3 Year Rolling Percentile Rank IM U.S. Large Cap Core Equity (MF) o.o = 25 0 m K d .� c°�i 50.0 d a c � � 75.0 18.3 Risk and Return 5 Years 17.8 e ° 177 � d K 17.6 14.8 Risk (Standard Deviation % ) • Investment O Index 5 Year Rolling Percentile Rank IM U.S. Large Cap Core Equity (MF) o.o 14.9 ��N��►, I'�►��y��a�� = 25.0 ,~�•' ` •��. m K d .� c°�i 50.0 d a c � � 75.0 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 6 0(0 %) 6(100 %) 0(0 %) 0(0 %) Investment 0 0 0 0 0 — Index 20 13 (65%) 7(35%) 0(0%) 0(0%) — Index 20 19 (95%) 1(5%) 0(0%) 0(0%) Page 24 Strategy Review Vanguard Index 500 Admiral (VFIAX) � S&P 500 Index As of June 30, 2021 Peer Group Analysis - IM U.S. Large Cap Core Equity (MF) 62.0 56.0 50.0 44.0 �� 38.0 = 32.0 � � �0 � 26.0 20.0 � • O 14.0 � 8.0 � � 2.0 -4.0 �� QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 8.54 (33) 29.24 (47) 40.76 (46) 23.00 (38) 18.64 (32) 17.55 (29) N/A O Index 8.55 (33) 29.25 (47) 40.79 (45) 23.03 (37) 18.67 (32) 17.58 (28) 17.65 (27) Median 8.00 28.97 4023 21.60 17.38 16.18 16.50 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment 6.18 (57) 12.15 (48) 8.92 (45) Index 6.17 (57) 1215 (48) 8.93 (45) Median 6.44 1202 8.45 Peer Group Analysis - IM U.S. Large Cap Core Equity (MF) 28.0 24.0 20.0 16.0 � 0 12.0 � 8.0 m � 4.0 � � 0.0 � -4.0 -8.0 � � � � � � • � -12.0 Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment 15.11 (37) 4.22 (39) 17.87 (28) N/A N/A N/A O Index 15.15 (36) 425 (39) 17.91 (27) 18.61 (46) 15.43 (18) -0.61 (31) Median 12.90 321 16.07 18.38 13.06 -1.60 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 20.54 (37) -19.61 (45) 9.06 (39) 20.54 (37) -19.60 (45) 9.07 (39) 19.45 -1979 8]4 Page 25 Strategy Review Vanguard Equity-Income (VEIRX) � Russell 1000 Value Index As of June 30, 2021 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment N/A N/A N/A N/A N/A N/A N/A Investment N/A N/A N/A N/A N/A N/A N/A Index 1242 19.80 0.62 100.00 10 100.00 2 Index 11.87 16.06 0.71 100.00 17 100.00 3 Risk and Return 3 Years 12.5 e c � d K 12.4 19.7 Risk (Standard Deviation % ) • Investment O Index 3 Year Rolling Percentile Rank IM U.S. Large Cap Value Equity (MF) o.o = 2s o � � d .� c°�i 50.0 N a c � � 75.G 19.8 Risk and Return 5 Years 11.9 c � d K 11.8 16.0 Risk (Standard Deviation % ) • Investment O Index 5 Year Rolling Percentile Rank IM U.S. Large Cap Value Equity (MF) o.o = 2s o � � d .c U N a c � � 75.0 16.1 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 0 0 0 0 0 Investment 0 0 0 0 0 — Index 20 4(20%) 11 (55%) 5(25%) 0(0%) — Index 20 5(25%) 14 (70%) 1(5%) 0(0%) Page 26 Strategy Review Vanguard Equity-Income (VEIRX) � Russell 1000 Value Index As of June 30, 2021 Peer Group Analysis - IM U.S. Large Cap Value Equity (MF) 68.0 60.0 52.0 44.0 36.0 E � 28.0 m � 20.0 12.0 4.0 � � -4.0 -12.0 � � • � •o 0 0 0 QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 5.27 (50) 31.08 (78) 37.82 (77) 14.16 (61) N/A N/A N/A O Index 5.21 (53) 36.07 (51) 43.68 (49) 14.45 (55) 12.42 (44) 10.98 (49) 11.87 (59) Median 5.25 36.19 43.46 14.87 12.04 10.96 1229 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment 10.07 (69) 13.13 (82) 5.15 (45) Index 1L26 (50) 1625 (43) 5.59 (34) Median 1 L24 15.77 4.82 Peer Group Analysis - IM U.S. Large Cap Value Equity (MF) 30.0 25.0 20.0 15.0 10.0 E � 5.0 m � 0.0 e -5.0 Q -10.0 � -15.0 -20.0 ❑� � U C � � � Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment -2.77 (35) N/A N/A N/A N/A N/A O Index -5.03 (54) 4.00 (30) 9.45 (61) 15.12 (72) 16.19 (18) -4.42 (41) Median -4.55 1.87 10.42 16.74 12.49 -4.90 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 12.67 (93) -23.06 (8) 6.67 (74) 1429 (68) -26.73 (53) 7.41 (54) 15.47 -26.62 7.54 Page 27 Strategy Review MFS Growth Fund (MFEKX) � Russell 1000 Growth Index As of June 30, 2021 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 23.41 17.81 1.20 91.13 10 88.53 2 Investment N/A N/A N/A N/A N/A N/A N/A Index 25.14 19.52 1.18 100.00 10 100.00 2 Index 23.66 15.98 1.34 100.00 18 100.00 2 Risk and Return 3 Years 25.5 25.0 e 24.5 c � � 24.0 23.5 23.0 17.4 17.7 18.0 18.3 18.6 18.9 192 Risk (Standard Deviation % ) • Investment O Index 3 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (MF) o.o = 25 0 K d .� c°�i 50.0 d a c � � 75.0 Risk and Return 5 Years 23.7 � 23.6 � K 23.5 15.9 Risk (Standard Deviation % ) • Investment O Index 5 Year Rolling Percentile Rank IM U.S. Large Cap Growth Equity (MF) o.o � Y 25.0 �'^��_ �i�, ,�� , ��r�� ,�� `�� d .� c°�i 50.0 d a c � � 75.0 16.0 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 6 3(50 %) 1(17 %) 2(33 %) 0(0 %) Investment 0 0 0 0 0 - Index 20 11 (55%) 9(45%) 0(0%) 0(0%) - Index 20 15 (75%) 5(25%) 0(0%) 0(0%) Page 28 19.5 19.8 20.1 Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF) 56.0 50.0 44.0 � 38.0 � 32.0 � c L 7 G7 • � 26.0 � � 20.0 14.0 � Q 8.0 2.0 � • � O � QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 12.59 (21) 22.03 (86) 35.35 (89) 27.87 (71) 23.41 (51) 23.92 (37) N/A O Index 11.93 (33) 25.86 (43) 42.50 (28) 32.54 (25) 25.14 (24) 24.48 (29) 23.66 (31) Median 11.37 25.55 39.97 29.84 23.43 22.96 22.71 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment 0.40 (67) 7.95 (94) 10.91 (65) Index 0.94 (56) 11.39 (45) 1322 (23) Median 1.18 11.12 11.51 Strategy Review MFS Growth Fund (MFEKX) � Russell 1000 Growth Index As of June 30, 2021 Peer Group Analysis - IM U.S. Large Cap Growth Equity (MF) 68.0 60.0 52.0 44.0 36.0 � I c � � 28.� • � O 20.0 � � 12.0 � � 4.0 � O -4.0 i -12.0 Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment 32.47 (65) 7.56 (10) 29.09 (17) N/A N/A N/A O Index 37.53 (34) 3.71 (33) 26.30 (38) 21.94 (28) 13.76 (18) 3.17 (45) Median 34.55 2.32 25.06 20.13 10.96 2.84 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 24.68 (84) -11.75 (17) 8.55 (78) 27.84 (45) -14.10 (64) 10.62 (27) 27.69 -13.51 9.65 Page 29 Strategy Review Vanguard Extended Mkt Index (VEXAX) � S8�P Completion Index As of June 30, 2021 Historical Statistics 3 Years Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Investment 18.62 24.96 0.76 100.15 9 99.88 3 Index 18.50 24.98 075 100.00 9 100.00 3 Risk and Return 3 Years 18.8 18.7 e � 18.6 � d K 18.5 18.4 24.9 Risk (Standard Deviation % ) • Investment O Index 3 Year Rolling Percentile Rank IM U.S. SMID Cap Core Equity (MF) o.o = 2s.o � � d .� c°�i 50.0 d a c � � 75.0 Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Investment 18.84 20.12 0.90 100.21 17 99.90 3 Index 18.73 20.13 0.90 100.00 17 100.00 3 Risk and Return 5 Years 18.9 • � 18.8 � d K 25.0 18.7 � 20.1 202 Risk (Standard Deviation % ) • Investment O Index 5 Year Rolling Percentile Rank IM U.S. SMID Cap Core Equity (MF) o.o 20.3 = 2s o � � d .� c°�i 50.0 d a c � � 75.0 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 19 13 (68 % ) 6 (32 % ) 0 (0 % ) 0 (0 % ) Investment 11 10 (91 % ) 1 (9 % ) 0 (0 % ) 0 (0 % ) - Index 20 11 (55%) 8(40%) 1(5%) 0(0%) - Index 20 12 (60%) 8(40%) 0(0%) 0(0%) Page 30 Strategy Review Vanguard Extended Mkt Index (VEXAX) � S8�P Completion Index As of June 30, 2021 Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF) 90.0 80.0 70.0 60.0 50.0 E � 4�.� G7 � 30.0 20.0 10.0 �� 0.0 -10.0 �� Q �� QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 7.11 (10) 47.12 (49) 61.64 (26) 27.89 (4) 18.62 (4) 18.15 (5) 18.84 (5) O Index 7.12 (9) 47.04 (50) 61.60 (27) 27.80 (5) 18.50 (6) 18.05 (8) 18.73 (7) Median 4.52 47.04 5522 18.86 12.38 12.51 1327 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment 7.79 (91) 27.43 (17) 9.87 (7) Index 775 (92) 27.40 (18) 9.90 (5) Median 13.33 24.94 475 Peer Group Analysis - IM U.S. SMID Cap Core Equity (MF) 30.0 25.0 20.0 � 0 15.0 � � � 0 10.0 � = 5.0 L 7 G7 � �.� -5.0 � � -10.0 � -15.0 -20.0 -25.0 � Q � • � Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment 12.98 (5) -3.80 (46) 16.12 (15) 19.00 (28) 13.44 (48) -0.21 (44) O Index 12.94 (6) 3.96 (50) 16.02 (18) 18.91 (29) 13.26 (51) -0.27 (45) Median -3.66 -4.11 12.98 17.28 13.28 -0.63 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 31.16 (3) -28.00 (12) 8.90 (12) 31.14 (4) -28.02 (14) 5.86 (14) 23.56 -30.32 7.09 Page 31 Strategy Review American Funds EuroPacific Gr R6 (RERGX) � MSCI AC World ex USA As of June 30, 2021 Historical Statistics 3 Years Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Investment 13.79 18.43 0.72 109.89 7 95.35 5 Index 9.SS 17.35 0.55 100.00 9 100.00 3 Risk and Return 3 Years 16.0 14.0 e � 12.0 � d K 10.0 8.0 � 17.0 172 17.4 17.6 17.8 18.0 182 18.4 Risk (Standard Deviation % ) • Investment O Index 3 Year Rolling Percentile Rank IM International Large Cap Growth Equity (MF) o.o n LJ = 2s o � � d � � 50.0 a c � � 75. 18.6 18.8 Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Investment 14.50 15.33 0.88 107.43 13 94.02 7 Index 11.59 14.46 075 100.00 14 100.00 6 Risk and Return 5 Years 15.3 14.4 e 13.5 c � � 12.6 11.7 10.8 142 14.4 14.6 14.8 15.0 152 Risk (Standard Deviation % ) • Investment O Index 5 Year Rolling Percentile Rank IM International Large Cap Growth Equity (MF) o.o = 2s o � � d � U a c � K 7 15.4 15.6 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 19 8 (42 % ) 11 (58 % ) 0 (0 % ) 0 (0 % ) Investment 11 4 (36 % ) 7 (64 % ) 0 (0 % ) 0 (0 % ) - Index 20 2(10%) 7(35%) 5(25%) 6(30%) - Index 20 0(0%) 6(30%) 13 (65%) 1(5%) Page 32 Peer Group Analysis - IM International Large Cap Growth Equity (MF) 56.0 - 50.0 44.0 � 38.0 � 32.0 E �O � � 2s.o � 20.0 � � 14.0 Q 0 � � 0 8.0 • � 2.0 -4.0 � � QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 6.97 (20) 27.76 (16) 40.10 (11) 2023 (21) 13.79 (25) 12.66 (27) 14.50 (18) O Index 5.64 (59) 28.14 (15) 3629 (33) 14.15 (72) 9.88 (80) 9.35 (70) 11.59 (59) Median 6.18 22.40 33.69 16.84 1221 10.91 12.57 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment -0.43 (81) 19.95 (7) 9.66 (25) Index 3.60 (16) 17.08 (31) 6.36 (89) Median 0.80 1475 876 Strategy Review American Funds EuroPacific Gr R6 (RERGX) � MSCI AC World ex USA As of June 30, 2021 Peer Group Analysis - IM International Large Cap Growth Equity (MF) 32.0 26.0 20.0 � 0 14.0 � 8.0 � O = 2.0 � � � O ' O d � -4.0 � -10.0 � -16.0 -22.0 � -28.0 -34.0 Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment 14.97 (35) 1.14 (45) 1.47 (60) 20.63 (8) 8.52 (38) -4.93 (34) O Index 3.45 (88) -0.72 (67) 2.25 (51) 20.15 (19) 9.80 (27) -11.78 (89) Median 13.05 0.81 228 17.85 7.77 -5.68 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 22.77 (5) -22.43 (80) 10.09 (24) 16.30 (79) -2326 (89) 8.99 (51) 18A2 -20A2 9.00 Page 33 Strategy Review Dodge 8� Cox Income Fund (DODIX) � Blmbg. Barc. U.S. Aggregate Index As of June 30, 2021 Historical Statistics 3 Years Historical Statistics 5 Years Return Standard Sharpe Market �p Ma ket Down Return Standard Sharpe Market �p Ma ket Down Deviation Ratio Capture Quarters Capture Quarters Deviation Ratio Capture Quarters Capture Quarters Investment 6.42 3.77 1.30 108.58 10 85.28 2 Investment 4.54 3.23 1.02 106.15 15 61.98 5 Index 5.34 3.44 1.17 100.00 11 100.00 1 Index 3.03 323 0.59 100.00 16 100.00 4 Risk and Return 3 Years 6.6 • 6.3 e 6.0 c � � 5.7 5.4 5.1 3.3 3.4 3.5 3.6 3.7 3.8 Risk (Standard Deviation % ) • Investment O Index 3 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (MF) o.o -- = 2s o � � d .� c°�i 50.0 N a c � � 75. 3.9 Risk and Return 5 Years 5.0 4.5 e 4.0 c � � 3.5 3.0 2.5 32 Risk (Standard Deviation % ) • Investment O Index 5 Year Rolling Percentile Rank IM U.S. Broad Market Core Fixed Income (MF) o.o _ = 2s o � � d .c U N a c � � 75.0 3.3 100.0 100.0 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20 9/20 6/21 5-25 25-Median Median-75 75-95 5-25 25-Median Median-75 75-95 Total Period Count Count Count Count Total Period Count Count Count Count Investment 20 19 (95 % ) 1 (5 % ) 0 (0 % ) 0 (0 % ) Investment 15 15 (100 % ) 0 (0 % ) 0 (0 % ) 0 (0 % ) - Index 20 2(10%) 12 (60%) 6(30%) 0(0%) - Index 20 1(5%) 12 (60%) 7(35%) 0(0%) Page 34 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF) 10.0 8.0 6.0 4.0 c � m � 2.0 � O � 0.0 ❑� -2.0 -4.0 � � � � • � _ � � - Q � � QTR FYTD 1 YR 2 YR 3 YR 4 YR 5 YR � Investment 1.98 (44) 1.89 (9) 3.39 (12) 5.84 (9) 6.42 (13) 4.87 (7) 4.54 (4) O Index 1.83 (62) -0.95 (86) -0.34 (88) 4.10 (74) 5.34 (66) 3.88 (61) 3.03 (68) Median 1.93 0.17 125 4.66 5.62 4.04 3.31 Comparative Performance 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Mar-2021 Dec-2020 Sep-2020 Investment -2.52 (22) 2.48 (7) 1.48 (29) i�deX -s.sa ��a� o.s� (sa) o.s2 (ss� Median -3.04 1.36 1.19 Strategy Review Dodge 8� Cox Income Fund (DODIX) � Blmbg. Barc. U.S. Aggregate Index As of June 30, 2021 Peer Group Analysis - IM U.S. Broad Market Core Fixed Income (MF) 14.0 12.0 10.0 � � 8.0 • Q � � 6.0 c � � 4.0 m � � � 2.0 0.0 � Q � � -2.0 -4.0 -6.0 Oct-2019 Oct-2018 Oct-2017 Oct-2016 Oct-2015 Oct-2014 To To To To To To Sep-2020 Sep-2019 Sep-2018 Sep-2017 Sep-2016 Sep-2015 � Investment 7.70 (25) 9.13 (79) -0.12 (7) 2.57 (3) 7.09 (3) 0.16 (94) O Index 6.98 (50) 10.30 (24) -1.22 (41) 0.07 (64) 5.19 (51) 2.94 (9) Median 6.96 9.81 -1.34 0.48 521 1.98 1 Qtr 1 Qtr 1 Qtr Ending Ending Ending Jun-2020 Mar-2020 Dec-2019 s.ss (19) -0.70 ��o� o.as �s� 290 (91 ) 3.15 (16) 0.18 (51 ) 4.94 0.55 0.18 Page 35 Comparative Performance Manager Composite Performance Comparison As of June 30, 2021 Comparative Performance Vanguard Equity Inc;Adm (VEIRX) S&P 500 Index Difference IM Equity Income (MF) Median Vanguard 500 Idx;Adm (VFIAX) S&P 500 Index Difference IM S&P 500 Index (MF) Median MFS Growth;R6 (MFEKX) Russell 1000 Growth Index Difference IM U.S. Large Cap Growth Equity (MF) Median Vanguard Ext MI;Adm (VEXAX) S&P Completion Index Difference IM U.S. SMID Cap Core Equity (MF) Median American Funds EuPc;A (AEPGX) MSCI AC World ex USA Difference IM International Large Cap Growth Equity (MF) Median Dodge & Cox Income (DODIX) Blmbg. Barc. U.S. Aggregate Index Difference IM U.S. Broad Market Core Fixed Income (MF) Median Returns for periods greater than one year are annualized. Returns are expressed as percentages. 1 YR 37.84 (49) 40.79 (33) -2.95 37.47 40.76 (12) 40.79 (5) -0.03 40.32 35.35 (89) 42.50 (28) -7.15 39.97 61.64 (26) 61.60 (27) 0.04 55.22 39.62 (16) 36.29 (33) 3.33 33.69 3.39 (12) -0.34 (88) 3.73 1.25 3 YR 12.67 (49) 18.67 (4) -6.00 12.57 18.64 (11) 18.67 (4) -0.03 18.28 23.41 (51) 25.14 (24) -1.73 23.43 18.62 (4) 18.50 (6) 0.12 12.38 13.37 (32) 9.88 (80) 3.49 12.21 6.42 (13) 5.34 (66) 1.08 5.62 5 YR 12.29 (45) 17.65 (3) -5.36 12.00 17.61 (9) 17.65 (4) -0.04 1723 23.10 (42) 23.66 (31) -0.56 22.71 18.84 (5) 18.73 (7) 0.11 13.27 14.10 (25) 11.59 (59) 2.51 12.57 4.54 (4) 3.03 (68) 1.51 3.31 7 YR 10.46 (28) 14.10 (1) -3.64 9.38 14.06 (8) 14.10 (3) -0.04 13.65 18.20 (27) 18.56 (20) -0.36 17.30 13.20 (6) 13.09 (7) 0.11 9.74 8.36 (23) 5.81 (68) 2.55 6.95 4.00 (5) 3.28 (50) 0.72 3.27 70 YR 12.50 (10) 14.84 (1) -2.34 10.66 14.80 (7) 14.84 (3) -0.04 14.33 N/A 17.87 (19) N/A 16.44 14.03 (3) 13.93 (5) 0.10 11.05 7.96 (20) 5.93 (69) 2.03 6.83 4.26 (6) 3.39 (59) 0.87 3.51 15 YR 9.55 (18) 10.73 (3) -1.18 8.32 10.71 (5) 10.73 (3) -0.02 10.27 N/A 13.53 (22) N/A 12.54 11.14 (10) 11.03 (11) 0.11 9.30 7.00 (14) 5.33 (66) 1.67 6.11 5.20 (5) 4.43 (49) 0.77 4.41 Page 36 Okeechobee Municipal Firefighters' Pension Fund Fee Analysis As of June 30, 2021 Vanguard Equity-Income (VEIRX) Vanguard Index 500 Admiral (VFIAX) MFS Growth Fund (MFEKX) Vanguard Extended Mkt Index (VEXAX) Total Domestic Equity Composite American Funds EuroPacific Gr R6 (RERGX) Total International Equity Composite Dodge & Cox Income Fund (DODIX) Total Fixed Income Composite R&D Total Fund Composite Estimated Annual Fee (%) 0.18 0.04 0.57 0.07 0.19 0.49 0.49 0.42 0.42 0.43 0.33 Market Value �$) 387,197 961,899 627,186 677,250 2,653,531 900,672 900,672 2,082,844 2,082,844 44,637 5,681,684 Estimated Annual Fee �$) 697 385 3,575 474 5,131 4,413 4,413 8,748 8,748 192 18,484 Fee Schedule 0.18 % of Assets 0.04 % of Assets 0.57 % of Assets 0.07 % of Assets 0.49 % of Assets 0.42 % of Assets Page 37 Okeechobee Municipal Firefighters' Pension Fund Schedule of Investable Assets 7 Years Ending June 30, 2021 Schedule of Investable Assets $6,600,000 $6,000,000 $5,400,000 $4,800,000 $4,200,000 3 $3,600,000 > Y d Y L � $3,000,000 $2,400,000 $1,800,000 $1,200,000 $600,000 $5,681,684 $3,079,187 $0 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 12/19 6/20 12/20 6/21 — Total Fund Composite Net Cash Flow Page 38 Benchmark History Investment Policy Benchmarks As of June 30,2021 Total Fund Policy Allocation Mandate Jan-2003 S&P 500 Index Bloomberg Barclays Intermediate US Govt/Credit Idx Apr-2011 S&P 500 Index MSCI AC World ex USA Blmbg. Barc. U.S. Aggregate Index Feb-2014 Russell 3000 Index MSCI AC World ex USA Blmbg. Barc. U.S. Aggregate Index Total Fixed Income Policy Allocation Mandate Jan-2003 Bloomberg Barclays Intermediate US GovUCredit Idx Apr-2011 Blmbg. Barc. U.S. Aggregate Index Feb-2014 Blmbg. Barc. U.S. Aggregate Index Total Equity Policy :ight (%) Allocation Mandate Jan-1926 60.00 S&P 500 Index 40.00 Apr-2011 S&P 500 Index 45.00 MSCI AC World ex USA 15.00 40.00 Feb-2014 Russell 3000 Index MSCI AC World ex USA 45.00 15.00 40.00 Total Domestic Equtiy Policy �ight (%) Allocation Mandate Jan-1979 100.00 Russell 3000 Index i[�I�x�I�l 100.00 100.00 75.00 25.00 75.00 25.00 We 100.00 Total International Equity Policy Allocation Mandate Weight (%) Jan-1988 MSCI AC World ex USA 100.00 Page 39 City of Okeechobee Municipal Firefighters' Pension Fund Compliance Checklist as of June 30, 2021 1. 2. 3. 4. 5. 6. The Total Plan return equaled or exceeded the actuarial earning assumption of 7% over the trailing three year period. The Total Plan return equaled or exceeded the actuarial earning assumption of 7% over the trailing five year period. The Total Plan return equaled or exceeded the total plan benchmark over the trailing three period. The Total Plan return equaled or exceeded the total plan benchmark over the trailing five period. The Total Plan return ranked within the top 40th percentile of its peer group over the trailing three year period The Total Plan return ranked within the top 40th percentile of its peer group over the trailing five year period 1. Total domestic equity returns meet or exceed the benchmark over the trailing three year period. 2. Total domestic equity returns meet or exceed the benchmark over the trailing five year period. 3. The total equity allocation was less than 60% of the total plan assets at cost. 4. The total equity allocation was less than 70% of the total plan assets at market. 5. Total foreign equity was less than 25°/o of the total plan assets at market. 1. Total fixed income returns meet or exceed the benchmark over the trailing three year period. 2. Total fixed income returns meet or exceed the benchmark over the trailing five year period. 3. 85°/o of all direct fixed income investments have a minimum rating of investment grade or higher. 1. Manager outperformed the index over the trailing three and five year periods. 2. Manager ranked within the top 40th percentile over trailing three and five year periods. 3. Less than four consecutive quarters of under performance relative to the benchmark. 4. Three-year and five year down-market capture ratio less than the index. *Only 3 year data available **Index Fund ✓ ✓ ✓ � � � � � � ✓ � � � ✓ ✓ � � ✓ � � ✓ ✓ ✓ � � � ✓ ✓ � ✓ � ✓ ✓ ./ ✓ � ^ Page 40 City of Okeechobee Municipal Firefighters' Pension Fund Compliance Checklist as of June 30, 2021 1. Manager outperformed the index over the trailing three and five year periods. ✓ 2. Manager ranked within the top 40th percentile over trailing three and five year periods. ✓ 3. Less than four consecutive quarters of under performance relative to the benchmark. ✓ 4. Three-year and five year down-market capture ratio less than the index. ./ *Only 3 year data available i ^ Page 41 Report Statistics Definitions and Descriptions Active Return - Arithmetic difference between the manager's performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's non-systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the producYs performance. Distributed to Paid In (DPI) - The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk Excess Return Excess Risk Information Ratio - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. A higher factor is indicative of a riskier product. - Arithmetic difference between the manager's performance and the risk-free return over a specified time period. - A measure of the standard deviation of a portfolio's performance relative to the risk free return. - This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) - Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. R-Squared Return Sharpe Ratio Standard Deviation Total Value to Paid In (TVPI) - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R-Squared means the portfolio's performance has historically moved in the same direction as the appropriate benchmark. - Compounded rate of return for the period. - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A higher value demonstrates better historical risk-adjusted performance. - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. - The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date. It is a good measure of performance before the end of a fund's life Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance. Page 42 Disclosures AndCo compiled this report for the sole use of the client for which it was prepared. AndCo is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the clienYs custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Bloomberg Barclays. Bloomberg Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor's. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an "as is" basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in yourjurisdiction. Past financial performance is not guarantee of future results. �T1 Page 43 Clients first. AndCv Consulting ! {844� 4�-ANU�:U � _l��c�f;u(_:r�i�sr�ltr�r,�.�r�r�i CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND SUMMARY PLAN DESCRIPTION August 3, 2021 IS YOUR BENEFICIARY FORM CURRENT? IN THE EVENT YOU DIE, YOUR BENEFIT OR CONTRIBUTIONS WILL BE DISTRIBUTED TO THE PERSON OR PERSONS DESIGNATED BY NAME ON THE BENEFICIARY FORM ON FILE WITH THE PENSION PLAN. NO PROVISION IN YOUR LAST WILL AND TESTAMENT WILL CHANGE THIS SELECTION. PLEASE BE SURE THAT YOUR BENEFICIARY FORM DESIGNATES THE PERSON OR PERSONS YOU INTEND TO RECEIVE YOUR BENEFITS AND THAT YOU REVIEW THIS CHOICE IN THE EVENT OF A MAJOR LIFE CHANGE SUCH AS A DIVORCE OR THE DEATH OF YOUR BENEFICIARY. CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND SUMMARY PLAN DESCRIPTION INTRODUCTION The Board of Trustees of the City of Okeechobee Municipal Firefighters' Pension Fund is pleased to present this booklet which briefly explains the provisions of your Firefighters' Pension Plan. As a participant in the Fund, you are included in a program of benefits to help you meet your iinancial needs at retirement, or in the event of disability or death. This booklet can assist you in preparing for your retirement and financial future. If you need further information on any of the topics presented in this booklet, please contact any member of the Board of Trustees or the Plan Administrator. They will either answer questions you might have to help you understand your benefits or otherwise get you an answer to your questions. We urge you to read and understand this booklet in order to become familiar with the benefits of the plan and how they contribute to your financial security and how they will enrich your retirement years. The information presented is only a summary of the pension plan ("Plan") as provided in the ordinances of the City of Okeechobee. If there are any conflicts between the information in this booklet and the ardinances of the City of Okeechobee, the ordinances shall govern. The provisions of this Summary Plan Description shall not constitute a contract between the Member and the Board of Trustees. The plan shall be administered in accordance with state and federal law, notwithstanding any provisions in this booklet or ordinances to the contrary. A copy of the ordinance establishing the Plan can be obtained from the City Clerk's office, which is located at 55 S.E. Third Avenue, Okeechobee, Florida 34974. Chairman, Board of Trustees, City of Okeechobee Municipal Firefighters' Pension Fund Date BOARD OF TRUSTEES AND PLAN ADMINISTRATION A. Administration. (1) The City of Okeechobee Municipal Firefighters' Pension Fund is a defined benefit pension plan administered by a Board of Trustees which acts as the administrator of the Plan. The Board consists of 5 Trustees, 2 of whom legal residents of the City who are appointed by the City Council, 2 of whom are active members of the Plan or retired iirefighters who are elected by a majority of the active and retired Firefighters and a fifth Trustee who is chosen by a majority of the first 4 Trustees. If there are no active or retired firefighters remaining in the plan or capable of serving, the remainin� trustees may elect an individual to serve in this firefighter seat. Each Trustee serves a 4 year term. (2) DROP participants can be elected as but not vote for elected Trustees. B. The names and addresses of the current Trustees and the Plan Administrator are attached to this Summary Plan Description as Exhibit "A". The Chairman of the Board of Trustees is designated as agent for the service of legal process. 2. ELIGIBILITY FOR PLAN MEMBERSHIP All firefi�hters as of Au�ust 2, 2021 who elected, as a result of the merger with Okeechobee County, to remain members of this system, shall remain members of this system as a condition of his employment. All such Firefighters are therefore eligible for all plan benefits as provided for in the plan document and by applicable law. After August 2, 2021, there shall be no new or reemployed members of this system. PLAN BENEFITS All claims for benefits under the Plan shall be made in writing to the Board of Trustees. It is your responsibility to contact the plan and make a written application far benefits when you are eligible to start receiving your benefit at your normal or early retirement date. You should file your application for benefits with the plan administrator at least 45 days prior to the date that benefits are to commence. Benefit payments shall begin only after a written application is iiled and payments shall not be made retroactive to your original eligibility date should you delay in applying for benefits. A. Normal Retirement Eli�ibility. You are eligible for retirement upon the earlier of the attainment of age 55 and the completion of 10 years of credited service or upon the completion of 25 years of credited service, regardless of age. B. Amount ofNormal Retirement Benefits. The amount of the normal retirement benefit is based on your credited service and average final compensation: "Credited Service" is generally your period of employment as a Firefighter in the Fire Department or the County Fire Service, measured in years and parts of years. Credited service will include credit for up to five years for a break in employment for military service, pursuant to conditions provided for under state or federal law, provided that you are reemployed within 1 year of discharge under honorable conditions. Additional credited service time may also be available (See subsection L. below). -1- "Average Final Compensation" is 1/12 of the average salary of the 5 best years of the last 10 years of credited service prior to your termination, retirement or death or the career average as a full-time Firefighter, whichever is greater. A year is defined as 12 consecutive months. "Salary" is the basic compensation paid by the City or County to you, plus all tax deferred, tax sheltered and tax exempt items of income derived from elective employee payroll deductions or salary reductions otherwise includible in basic compensation. The normal retirement benefit is calculated by multiplying 3% times years of credited service times your average final compensation: (3% x CS x AFC = normal retirement benefit). Normal and early retirement payments will commence on the iirst day of the month coincident with or next following your last day of employment. Early retirees may defer the commencement of benefits. The benefit is paid to you for your life, but you or your beneficiary shall receive at least 120 monthly benefit payments in any event. C. Early Retirement. You are eligible for early retirement upon the attainment of age 50 and the completion of 10 years of credited service. D. Amount of Early Retirement Benefits. The amount of the early retirement benefit is calculated in the same manner as far normal retirement and is available as follows: (1) Beginning on the date on which you would have qualified far normal retirement; or (2) Beginning immediately upon retirement, but if beginning immediately, the amount of the monthly benefit is reduced by 3% for each year the commencement of benefits precedes the date which would have been your normal retirement date based upon your actual years of credited service. E. Cost of Living Increases. In addition to the benefits provided above, the Plan provides for a cost of living increase on every October 1 st of odd numbered years. The monthly benefit of each retiree (or their beneficiary or j oint annuitant), including disability retirees and vested terminated persons, who has been receiving benefits far at least one year as of the adjustment date, shall be increased by .5%. F. Supplemental Benefit - Share Plan. Pursuant to Florida law, a separate member "share account" has been created for each member of the plan. This supplemental benefit may or may not be funded and thus, you may or may not receive a retirement benefit from the share plan. If the share plan is funded, then at retirement, termination (vested), disability or death, there shall be an additional benefit paid to you. The share plan is funded solely with state premium tax money and the funding that is received for this Share Plan is allocated to your share account based on a formula which gives you an allocation based on your years of credited service. Your share account receives its proportionate share of the income or loss on the assets in the plan. G. Other Retirement Options. At retirement, certain additional options are available as follows: (1) Optional Forms of Retirement. In lieu of the amount and form of retirement income payable under normal and early retirement, you may elect to receive a retirement benefit in a different form so long as the form you elect is of equal actuarial value as the normal benefit. The optional forms of benefits which are available are: 6�� (a) A retirement income of a modified monthly amount, payable to you during your lifetime and following your death, 100%, 75%, 66 2/3% or 50% of such monthly amount payable to a joint pensioner for his lifetime. (b) A retirement income of a monthly amount payable to you for your lifetime only. (c) If you retire prior to the time at which social security benefits are payable, you 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. (d) If you do not participate in the DROP, you may also elect to receive an initial lump sum payment equal to 20% of your accrued benefit with the remaining 80% payable in a form selected by you and provided for in (a) or (b) above or in the normal form (10 years certain and life). (2) Deferred Retirement Option Plan (DROP) (a) If you become eligible for normal retirement, and are still employed by the C� Coun as a Firefighter, you have the option of "retiring" from the pension plan but continuing your employment as a Firefighter for an additional 5 years. An election to participate in the DROP constitutes an irrevocable election to resign from the service of the � County not later than 5 years from the date you begin DROP participation. You must request, in writing, to enter the DROP. (b) Upon entering the DROP, your retirement benefit is immediately calculated and each monthly benefit payment is deposited into your DROP account. You may elect to either have your account credited with interest at the rate of 6.5% per annum or credited or debited with an investment return or loss equal to the net investment return realized by the system for that quarter. One change in election is permitted. (c) At the time of termination of employment at the end of the DROP period, you will receive your account balance in a lump sum and you will also begin receiving your monthly retirement benefit. (d) Once you enter the DROP, you are no longer eligible for disability or pre-retirement death beneiits, nor do you accrue any additional credited service. Your retirement benefit is iixed as of your entry date. You pay no member contributions to the plan once you enter the DROP. (e) 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. �� (� Additional information about the DROP can be obtained from the Board. H. Disability Retirement. You are considered disabled when you become totally and permanently unable to perform useful and efiicient service as a Firefighter. A written application is made to the Board of Trustees for a disability pension and the Board of Trustees receives evidence of the disability and decides whether or not the pension is to be granted. If the pension is granted, the benefit amount shall be: (1) If the injury or disease is service connected, you shall be entitled to a monthly pension equal to 3% of your average final compensation multiplied by your total years of credited service, but in any event, the minimum amount paid shall be 42% of your average final compensation. (2) If the injury or disease is not service connected, you shall be entitled to a monthly benefit equal to the greater of (i) or (ii) where (i) is 2% average final compensation multiplied by the total years of credited service and (ii) is a benefit determined in the same manner as for early retirement. In any event, the benefit shall not be less than 25% of your average iinal compensation. This non-service connected benefit is only available if you have at least 5 years of credited service. The non-service connected disability benefit is not available to you if you have less years of credited service. Eligibility for disability benefits. Subject to (4) below, you must be an active member of the plan on the date the Board determines your entitlement to a disability benefit. (1) Terminated persons, either vested or non-vested, are not eligible for disability benefits. (2) If you voluntarily terminate your employment either before or after iiling an application for disability benefits, you are not eligible for disability benefits. (3) If you are terminated by the C�q County for any reason other than for medical reasons, either before or after you iile an application for disability benefits, you are not eligible for disability benefits. (4) The only exception to (1) above is: (a) If you are terminated by the C� Coun for medical reasons and you have already applied for disability benefits before the medical termination, or; (b) If you are terminated by the C�q County for medical reasons and you apply within 30 days after your medical termination date. If either (4)(a), or (4)(b) above applies, your application will be processed and fully considered by the board. Your disability benefit terminates upon the earlier of death, with 120 payrnents guaranteed, or recovery. You may, however, select a"life only" or "joint and survivor" optional form of benefit as described above under "Optional Forms of Retirement". � Your benefit will be reduced if you receive workers' compensation benefits and your combined benefit exceeds 100% of your iinal salary. The pension benefit will be reduced so that the total does not exceed 100%, except that the pension benefit shall not be reduced below the greater of 42% of average final compensation or 2.75% of average final compensation times years of credited service. Any condition or impairment of health caused by hypertension or heart disease resulting in death or total and permanent disability is presumed to have been suffered in the line of duty unless the contraryis shown by competent evidence; provided that you have successfullypassed a physical examination on entering into service and there is no evidence of the condition at that time. For conditions diagnosed on or after January 1,1996, if you suffer a condition or impairment of health that is causedby hepatitis, meningococcal meningitis, or tuberculosis, which results in total and permanent disability, it shall be presumed that the disability is in the line of duty, unless the contrary is shown by competent evidence as provided for in Section 112.181, Florida Statutes, provided that the statutory provisions have been met. A Member who becomes totally and permanently unable to perform useful and efficient service as a firefighter due to a diagnosis of cancer or circumstances that arise out of the treatment of cancer as provided in F.S. �112.1816(1)(a), will be conclusively presumed to be disabled in the line of duty. To receive disability benefits you must establish to the satisfaction of the Board, that such disability was not occasioned primarily by: (1) Excessive or habitual use of any drugs, intoxicants or narcotics. (2) Injury or disease sustained while willfully and illegally participating in fights, riots or civil insurrections or while committing a crime. (3) Injury or disease sustained while serving in any branch of the Armed Forces. (4) Injury or disease sustained after your employment as a Firefighter with �te-C�-o€ Okeechobee Coun shall have terminated. As a disabled pensioner, you are subj ect to periodic medical examinations as directed by the Board to determine whether a disability continues. L Death Before Retirement. If you die prior to retirement from the � County Fire Department, your beneficiary shall receive the following benefit: (1) Prior to Vesting or Eligibility for Retirement. If you were not receiving monthly benefit payments or were not yet vested or eligible for early or normal retirement, your beneficiary shall receive a refund of 100% of your accumulated contributions, including interest. (2) Deceased Members Vested or Eligible for Retirement. Ifyou die and, at the date of your death were vested or eligible far early or normal retirement, your beneiiciary shall be entitled to a benefit as follows: (a) If you have a right to a vested accrued benefit, whether or not you are still actively employed, you shall be eligible for a death benefit if you die before collecting any other benefits from this Plan. The amount of the death benefit shall be equal to 50% of the actuarially equivalent single sum value of your vested accrued benefit, or your accumulated -5- contributions, including interest, 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, your beneficiary may elect payment under any of the optional forms available for retirement benefits or a lump sum payment. (b) If you are eligible for early or normal retirement, but remain employed and die while so employed, the death benefit shall be determined as follows: It shall be assumed that you had retired immediately preceding your date of death and elected the ten year certain and life thereafter option. However, the death benefit shall be equal to 50% of the actuarially equivalent single sum value of your vested accrued benefit, if larger than the ten year certain and life thereafter option. (c) If you die and at the date of your death were a member or terminated vested person with 10 or more years of credited service and prior to your retirement or prior to receipt of benefits, your spouse beneficiary shall be entitled to the accrued normal or early retirement benefit payable at your early or normal retirement age less the value of any benefits paid or payable under this subsection H.(2). If your beneficiary is not your spouse, the benefits to your non-spouse beneficiary are the same as those to a spouse beneficiary, however, the date of commencement of those benefits may be required to be earlier, with the resulting reduction in the amount. � If you select death event die before normal retirement date � your beneticiary or �omt actual retirement date. If � 1 pre-retirement �ensioner in the do survive to J. Termination of Employment and Vesting. If your employment is terminated, either voluntarily or involuntarily, the following benefits are payable: (1) If you have less than 10 years of credited service upon termination, you shall be entitled to a refund of the money you have contributed or you may leave it deposited with the fund. (2) If you have 10 or more years of credited service upon termination, you shall be entitled to a monthly retirement bene�t. The benefit shall be determined in the same manner for normal or early retirement andbasedupon your credited service, average final compensation and the benefit accrual rate as of the date of termination. The benefit shall be payable to you beginning at your otherwise normal or early retirement date, determined based upon your actual years of credited service, provided you do not elect to withdraw your contributions and provided you survive to your otherwise normal or early retirement date. If you do not withdraw your accumulated contributions and do not survive to your otherwise normal or early retirement date, your designated beneficiary shall be entitled to a benefit as provided herein for a deceased member, vested or eligible for retirement under Death Befare Retirement. continue to work to � The Internal Revenue Code provides that certain eligible lump sum distributions from the pension system may be directly rolled over into qualiiied individual retirement accounts, annuities or certain other pension plans. A 20% withholding shall be required on taxable portions of such lump sum distributions not directiv transferred to a new custodian. K. Reemployment After Retirement. If you retire under normal or early retirement and wish to be reemployed by the city, you should be aware that your ability to continue to receive your pension benefit upon reemployment may be restricted. While the plan may be permitted to make benefit payments to you if you are reemployed, in this event you may be subject to a 10% tax penalty, which penalty may continue until you attain age 59 '/2, whether or not you continue to be employed by the City. Firefighters are not eligible for reemployment as a firefighter with the City after retirement. L. Additional Credited Service. In addition to credited service actually earned in the employment of the County Fire Department, you may also receive credited service as follows: (1) "Buy-Back" for Prior Fire Service. The years or fractional parts of years that you previously served as a Firefighter with the City of Okeechobee during a period of previous employment and for which period accumulated contributions were withdrawn from the Fund shall be added to your years of credited service provided that within the iirst 90 days of your reemployment you pay into the plan the withdrawn contributions with interest. If, after 90 days from your reemployment you have failed to purchase credited service pursuant to the previous paragraph or if you served as a full-time Firefighter for any other municipal, county or special district iire department in the State of Florida, you will receive credited service only i£ (a) You contribute to the Fund a sum equal to: (i) the amount that you would have contributed to the Plan, based on your salary and the member contribution rate in effect at the time that the credited service is requested, had you been a member of the Plan for the years or fractional parts of years for which you are requesting credit, l�us (ii) an additional amount to be determined by the Board's actuary so that there is no cost to the Plan in giving you the additional years of credited service, l�us (iii) the amount charged by the actuary for determining the amount you must contribute. (b) Multiple requests to purchase credited service may be made at any time prior to retirement. (c) Payment of the required amount shall be made within 6 months of your request for credit, but not later than your retirement date, and shall be made in one lump sum payment upon receipt of which credited service shall be given. (d) The maximum credit under this subsection for service other than with the City of Okeechobee shall be 5 years of credited service and shall count for all purposes, except vesting and -7- eligibility for not-in-line of duty disability benefits. There shall be no maximum purchase of credit for prior service with the City of Okeechobee and such credit shall count far all purposes, including vesting. (e) In no event, however, may credited service be purchased pursuant to this subsection for prior service with any other municipal, county or special district fire department, if such prior service forms or will form the basis of a retirement benefit or pension from a different employer's retirement system ar plan. (2) "Buy-Back for Prior Military Service". The years or fractional parts of years that you serve or have 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 iirst and initial employment with the City Fire Department shall be added to your years of credited service provided that: (a) You contribute to the Fund a sum of money equal to: (i) the amount that you would have contributed to the Plan, based on your salary and the member contribution rate in effect at the time that the credited service is requested, had you been a member of the Plan for the years or fractional parts of years for which you are requesting credit, l�us (ii) an additional amount to be determined by the Board's actuary so that there is no cost to the Plan in giving you the additional years of credited service, l�us (iii) the amount charged by the actuary for determining the amount you must contribute. (b) Multiple requests to purchase credited service pursuant to this subsection may be made at any time prior to retirement. (c) Payment by you of the required amount shall be made within 6 months of your request for credit, but not later than your retirement date, and shall be made in one lump sum payment upon receipt of which credited service shall be given. (d) The maximum credit under this subsection shall be 4 years. (e) Credited service purchased pursuant to this subsection shall not count toward vesting or eligibility for not-in-line of duty disability benefits. (3) Transfers Within the City. If you transfer to either of the other two retirement Plans with the City, you must choose one of the following procedures with regard to credited service accrued to date of transfer: (a) You may take a refund of your accumulated contributions, in which event no pension benefit shall be payable based on credited service attributable to the period covered. : (b) You may leave your accumulated contributions in the fund, in which event your credited service with both Plans shall be combined for purposes of determining eligibility for benefits and for vesting. When you are eligible to receive a benefit, you shall receive benefits from both Plans, which shall consist of accrued benefits under each Plan based on the provisions of the respective Plan and the earnings and credited service under that Plan. (4) Rollovers or Transfers of Funds to Purchase Service. In the event you are eligible to purchase additional credited service as provided above, you may be eligible to rollover or transfer funds from another retirement program in which you participate (traditional IRA, deferred compensation plan maintained by a government employer (457 plan), 401k plan, profit sharing plan, defined benefit plan, money purchase plan, annuity plan or tax sheltered annuity) in order to pay all or part of the cost of purchasing such additional credited service. M. Contributions and Fundin�. The City is paying the portion of the cost of the pension over and above your contributions and any amounts received from the state insurance rebates. You contribute 5% of your salary to the Fund. Your contribution will be excluded from your gross income for withholding purposes so you will realize income tax benefits. N. Maximum Benefits. In no event will the annual benefits paid from this Plan exceed $�69� 230,000 annually subject to certain cost of living adjustments and actuarial reductions, under certain circumstances, for retirement prior to age 62 as set forth in Section 415 of the Internal Revenue Code. If you began participation for the first time on and after January 1, 1980, you cannot receive a benefit in excess of 100% of your Average Final Compensation. O. Forfeiture of Pension. If you are convicted of the certain crimes listed in the plan document committed prior to retirement, or if your employment is terminated by reason of your admitted commission, aid or abetment of these crimes you shall farfeit all rights and benefits under the Plan, except for the return of your contributions, including interest, as of the date of your termination. P. Conviction and Forfeiture; False, Misleading or Fraudulent Statements. It is unlawful for you to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit from the Plan. If you violate the previous paragraph, you commit a misdemeanor of the iirst degree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes. In addition to any applicable criminal penalty, upon conviction for a violation described above, you or your beneficiary may, in the discretion of the Board, be required to forfeit the right to receive any or all benefits to which you would otherwise be entitled under the Plan. For purposes of this subsection, "conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. Q. Claims Procedure Befare the Board. You may request, in writing, that the Board review any claim for benefits under the Plan. The Board will review the case and enter a decision as it deems proper within not more than 270 days from the date of the receipt of such written request, or in the case of a disability claim, from receipt of a medical release and completed interrogatories. The time period may be extended if you agree to the extension. � The Board's decision on your claim will be contained in an order which will be in writing and will include: (1) The speciiic reasons for the Board's action; (2) A description of any additional information that the Board feels is necessary for you to perfect your claim; (3) An explanation of the review procedure next open to you which includes a formal evidentiary hearing. 4. NON-FORFEITURE OF PENSION BENEFITS A. Liquidation of Pension Fund Assets. In the event of repeal, or if contributions to the fund are discontinued by the City, there will be a full vesting of benefits accrued to date of repeal. B. Interest of Members in Pension Fund. At no time prior to the satisfaction of all liabilities under the Plan shall any assets of the Plan be used far any purpose other than for the Firefighters' exclusive benefit. In any event, your contributions to the Plan are non-forfeitable. 5. VESTING OF BENEFITS Your retirement benefits are vested after 10 years of credited service. 6. APPLICABLE LAW The Plan is governed by certain federal, state and local laws, including but not limited to the following: A. Internal Revenue Code and amendments thereto. B. Chapter 175, Florida Statutes, "Municipal Firefighters' Retirement Trust Funds". C. Part VII, Chapter 112, Florida Statutes, "Actuarial Soundness of Retirement Systems". D. Ordinances of the City of Okeechobee. E. Administrative rules and regulations adopted by the Board of Trustees. 7. PLAN YEAR AND PLAN RECORDS The Plan year begins on October 1 of each year and ends on September 30 of the following year. All records of the Plan are maintained on the basis of the Plan year. 8. APPLICABLE PROVISIONS OF COLLECTIVE BARGAINING AGREEMENTS There is no collective bargaining agreement between the Firefighters and the City. 9. FINANCIAL AND ACTUARIAL INFORMATION A. A report of pertinent financial and actuarial information on the solvency and actuarial soundness of the Plan is attached as Exhibit "B". -10- C C A copy of the detailed accounting report of the plan's expenses for the previous fiscal year is available for review upon request to the Plan Administrator. A copy of the administrative expense budget for the plan, for each fiscal year is available for review upon request to the Plan Administrator. 10. DIVORCE OR DISSOLUTION OF MARRIAGE Federal and state law provides certain restrictions regarding the payment of your pension benefits in the event of your divorce or dissolution of marriage. Immediately upon your involvement in such a legal proceeding, you should provide the Plan Administrator with the name and address of your attorney or your name and address if you have no attorney. The Board's attorney will then provide you or your attorney with information concerning the legal restrictions regarding your pension benefits. In addition, a copy of any proposed order must be submitted to the Board prior to entry by the court. Failure to do so may require you to pay any expenses incurred by the Board in correcting an improper court order. 11. EX-SPOUSES AS BENEFICIARY OR JOINT PENSIONER The Florida Legislature has adopted Section 732.703, Florida Statutes. Tbis law nullifies the designation of your ex-spouse as a Beneficiary or Joint Annuitant / Joint Pensioner on your pension plan retirement benefits. This law went into effect on July 1, 2012. This law contains several exceptions, includin� not chan�in� the desi�nation of your beneficiary or j oint pensioner by Court Order. After July 1, 2012, if you want your ex-spouse to be a beneficiary or joint annuitant/joint pensioner for your plan benefit, you will have to make that designation AFTER the dissolution of marriage. If you currently have an ex-spouse as a beneficiary or joint annuitant/joint pensioner, and want to keep this designation, you will have to designate the ex-spouse again after July 1, 2012. To reconfirm your current beneficiary, or to designate a new beneficiary, complete a new Designation of Beneficiary Form (PF-3). To reconiirm your current joint annuitant/joint pensioner, or to designate a new joint annuitant/joint pensioner (if authorized by the current plan provisions), indicate such change on a Change or Coniirmation of Designated Joint Annuitant or Joint Pensioner Form (PF-25). If necessary, the plan administrator will submit the new form to the actuary of the plan for recalculation of your beneiit. There may be a charge to you to make this change. To obtain either of the above forms, or if you have any questions, please contact your plan administrator. 12. EXCLUSION OF HEALTH INSURANCE PREMIUMS FROM INCOME. When you retire because of disability or have worked to the date you are immediately eligible for normal retirement (not early retirement), you can elect to exclude from income, distributions made from your benefit that are used to pay the premiums for accident or health insurance or long-term care insurance. The premium can be for coverage for you, your spouse, or dependents. The distribution must be made directly from the plan to the insurance provider using pension form PF-22 which authorizes the distribution. (This form may be obtained from your plan administrator) You can exclude from income the smaller of the amount of the insurance premiums or $3,000.00. You can only make this election for amounts that would otherwise be included in your income. dm\ok\fireA07-26-21. spd s`e EXHIBIT "A" BOARD OF TRUSTEES The names and addresses of the members of the Board of Trustees are: Chairman: Herb Smith 55 S.E. Third Avenue Okeechobee, Florida 34974 Secretary: Adam Crum 55 S.E. Third Avenue Okeechobee, Florida 34974 Member: Josh Sanders 55 S.E. Third Avenue Okeechobee, Florida 34974 Member: John Koepke c/o The Resource Centers 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Member: Glenn Hodges 55 S.E. Third Avenue Okeechobee, Florida 34974 PLAN ADMINISTRATOR Ms. Kyle Tintle Okeechobee Municipal Firefighters' Pension Fund Pension Resource Center 4360 Northlake Blvd. Palm Beach Gardens, Florida 33410 Business: 561-459-2957 E-mail: kyle@resourcecenters.com EXHIBIT B City/District Name: Okeechobee Employee group(s) covered: Fire Current actuarial valuation date: 10/1/2019 Plan Status: Active Date prepared: 1/14/2021 Number of plan participants: 18 I GASB 67 Reporting Actuarial Value of Plan Assets (AVA): $4,416,825 Actuarial Accrued Liability (AAL): $3,888,370 Unfunded Accrued Liability (UAL): ($528,455) Market Value of Plan Assets (MVA): $4,358,788 Discount Rate Total Pension Liability Market Value of Plan Assets Net Pension Liability GASB 67 Funded Ratio 7.00% 4,073,426 4,386,834 -313,408 107.69% MVA Funded Ratio (5-year history): Current valuation Averages for all plans with 2019 current actuarial valuation date 112.10% 86.62% * 1 year prior 111.61 % I 88.75% * 2 years prior 107.20% I 85.83% * 3 years prior 100.48% I 82.35% * 4 years prior 98.02% I 82.16°/o * Rate of Actuarial Value, Actual (2019 Plan Year) Return: Market Value, Actual 7.20% 3.30% 7.12% 3.94% Assumed 7.00% Funding requirement as percentage of payroll: 27.56% 7.19% 59.70% ** Percentage of payroll contributed by employee: 5.00% I 6.47% ** Funding requirement as dollar amount: 117,329 I N/A Benefit Formula Description: 3.00% x AFC x SC AFC Averaging Period (years): 5 Employees covered by Social Security? Yes Additional actuarial disclosures required by section 112.664, Florida Statutes: Years Market assets Florida Value of Net sustain Total Total Statute Discount Pension Plan Pension benefit Dollar % of Pay Chapter Rate Liability Assets Liability payments Contribution Contribution 112.664(1)(a) 7.00% 4,073,426 4,386,834 -313,408 99.99 125,387 29.45 112.664(1)(b) 5.00% 5,201,039 4,386,834 814,205 99.99 275,355 64.68 Valuation Basis 7.00% N/A N/A N/A 99.99 125,387 29.45 Link to annual financial statements: https://frs.fl.gov/forms/L005340586PDF10012019N1.pdf *Adjusted by excluding plans from average whose Funded Ratios were not within two standard deviations from the mean **Excludes plans with zero payroll (For explanation of terms, see glossary on page 2) Actuarial Summary Fact Sheet — Glossary of Terms Plan Status: Active, Closed (closed to new entrants) and Frozen (closed to new entrants and no further benefit accruals) Actuarial Value of Plan Assets (AVA):Assets calculated under an asset valuation method smoothing the effects of volatility in market value of assets. Used to determine employer contribution. Actuarial Accrued Liability (AAL): Unfunded Accrued Liability (UAL) Portion of Present Value of Fully Projected Benefits attributable to service credit earned as of the current actuarial valuation date. The difference between the actuarial accrued liability and the actuarial value of assets accumulated to finance the obligation. Market Value of Plan Assets (MVA): The fair market value of assets, including DROP accounts. MVA Funded Ratio: Market Value of Plan Assets divided by Actuarial Accrued Liability (GASB) Rate of Return (Assumed): Funding requirement as percentage of payroll: Funding requirement as dollar amount: Assumed long-term rate of return on the pension fund assets. Total Required Contribution (employer and employee) divided by total payroll of active participants. No interest adjustment is included. Total Required Contribution (employer and employee). No interest adjustment is included. AFC: Average Final Compensation or some variant of compensation (e.g., AME [Average Monthly Earnings], FAC [Final Average Compensation], FMC [Final Monthly Compensation] etc.) SC: Service Credit Section 112.664 — Glossary of Terms Florida Statute Chapter: Discount Rate: Total Pension Liability: Net Pension Liability: 112.664(1)(a) — uses mortality tables used in either of the two most recently published FRS valuation reports, with projection scale for mortality improvement 112.664(1)(b) — uses same mortality assumption as 112.664(1)(a) but using an assumed discount rate equal to 200 basis points (2.00%) less than plan's assumed rate of return. Valuation Basis — uses all the assumptions in the plan's valuation as of the current actuarial valuation date. Rate used to discount the liabilities. Typically the same as assumed rate of return on assets. Actuarial Accrued Liability measured using the appropriate assumptions as specified above and the Traditional Individual Entry Age Normal Cost Total Pension Liability minus Market Value of Plan Assets. Years assets sustain benefit Assuming no future contributions from any source, the number of years the payments: market value of assets will sustain payment of expected retirement benefits. The number of years will vary based on the Florida Statute Chapter assumption. Total Dollar Contribution: Total % of Pay Contribution: Annual financial statements: Required contribution from all sources (i.e., employee and sponsor). Contribution will vary based on the Florida Statute Chapter assumption. Total Dollar Contribution divided by total payroll of active participants A report issued which covers a local government retirement system or plan to satisfy the financial reporting requirements of section 112.664(1), F.S. SUBJECT: The 50t" Annual Police Officers' & Firefighters' Pension Conference, sponsored by DMS' Division of Retirement, is scheduled for Nov. 3 through 5, 2021. As part of our commitment to public service, we are pleased to offer this program to assist you as members, trustees, administrators, and agency representatives stay current on issues and legislation that may affect Chapters 175 and 185 Municipal Police Officers' and Firefighters' retirement plans. There is no registration fee to attend. The conference will be held at the Renaissance Orlando Airport Hotel located at 5445 Forbes Place, Orlando, FL 32812. Please reserve your hotel room now by clicking . It is essential to use this link or state that you are attending the Police Officers' and Firefiqhters' Pension Conference when bookinq vour hotel room. This rate includes the use of the facility and supports the continued operation of the conference. The itinerary is as follows: Wednesday, Nov. 3, 2021 This program is designed specifically for new trustees, those interested in becoming trustees, or those who want a basic understanding of the operation of Chapter 175 and 185 Pension Plan. We will offer an overview of how the pension plan works and will include lectures from a plan attorney, actuary, and the Division of Retirement on the trustees' responsibilities. In addition, participants will be encouraged to ask questions and participate in group discussions focusing on the fundamentals of pension fund management. All new trustees are encouraged to join this program. Thursday, Nov. 4, 2021 and Friday, Nov. 5, 2021 This program is designed for both new and seasoned trustees. We will feature presentations on legal, actuarial, investment, administrative, and government in the sunshine issues and an update on any legislative changes. In addition, there will be an opportunity for questions and answers after each speaker to provide you with a chance to address concerns specific to your plan. Conference materials will be available for free download on our website on Oct. 29, 2021. Please keep in mind that this conference may possibly be used towards continuing education hours for professional certification. Please remember, we are only able to continue providing these cost-effective conferences for our plans based on satisfactory attendance. To continue providing essential educational opportunities to plan participants and board members, we are encouraging you to consider our programs when making your training plans. Please register for this free conference today using the Eventbrite website by clicking I look forward to seeing you very soon! Sincerely, Stephen Bardin Bureau of Local Retirement Systems Municipal Police Officers' and Firefighters' Pension Office T�IE ��.S��L ��E ��TE��, LL�� 2021-22 UPCOMING CONFERENCE LIST (Florida and Georgia Conferences) Florida Division of Mana�ement Services (Municipal Police Officers & Firefighters Retirement Fund OfficeJ 50t'' Annual Police & Fire Pension Trustees' Conference Orlando, Florida FPPTA (Florida Public Pension Trustee Association) (www.fppta.org) 2021 Fall Trustee School Sawgrass Marriott Resort & Spa, Ponte Vedra Beach GAPPT (Geor�ia Association of Public Pension Trustees) (www.gappt.org) 12t'' Annual Conference Callaway Resort & Garden — Pine Mountain, GA 13t'' Annual Conference Jekyll Island Convention Center & Westin —Jekyll Island, GA 8tn Annual Trustee School Macon Marriott City Center— Macon, GA (Key Additional Conferences) October 2021 (TBA) October 3 — 6, 2021 September 19 — 22, 2021 March 21— 24, 2022 September 19 — 21, 2022 International Foundation of Employee Benefit Plans (IFEBP) (www.ifebp.org) 67t'' Annual Employee Benefits Conference Denver, CO (Please refer to website for many additional conferencesJ October 17 — 20, 2021 NCPERS (National Conference on Public Employee Retirement Systems) (www.ncpers.orgJ 2021 Fall Conference Westin Kierland Resort & Spa — Scottsdale, AZ 2021 Legislative Conference Washington, DC 2022 Annual Conference & Exhibition Washington, DC September 26 — 28, 2021 January 23 — 25, 2022 May 22 — 25, 2022 Note: This list of upcoming conferences was compiled exclusively for Florida and Georgia public pension board clients of the Resource Centers, LLC. The list is not comprehensive. The Resource Centers has no affiliation other than affiliate membership with any organization appearing on the list; therefore, the list is not meant to imply a specific endorsement for any organization or conference appearing on the list. Okeechobee Firefighters' Pension Fund Balance Sheet (Unaudited) FY 2021 Account Descri Salem Trust Consolidated 1400 Cash and Equivalents 1410 Equiries 1420 Fixed Income 1462 Due to Brokers Salem Trust Total 2000 Accounts Payable TOTAL RESERVE FUND (M TV End October End November End December End January End February End March End Auril End Mav End June 22,522.40 61,374.76 49,592.81 45,802.51 34,171.91 22,581.93 74,528.70 59,762.96 47,085.80 3,072,851.40 3,399,976.05 3,209,195.11 3,189,872.14 3,284,29237 3,341,907.70 3,445,400.76 3,478,205.86 3,554,203.20 1,700,273.21 1,733,930.50 2,105,258.47 2,096,636.25 2,073,643.67 2,052,231.84 2,062,558.66 2,066,897.84 2,082,843.63 - - - - - - - - (2,448.43 4,795,647.01 5,195,28131 5,364,04639 5,332,310.90 5,392,107.95 5,416,721.47 5,582,488.12 5,604,866.66 5,681,684.20 - - (5,250.00) - - (5,250.00) - - (3,875.00 4,795,647.01 5,195,281.31 5,358,796.39 5,332,310.90 5,392,107.95 5,411,471.47 5,582,48812 5,604,866.66 5,677,809.20 Okeechobee Firefighters' Pension Fund Statement of Income and Expense (Unaudited) FY 2021 Account Description End October End November End December End Januar End Februar End March End A ril End Ma End June Year-To-Date Income: 4000 Employer Contributions 145.98 - - 14,238.62 - - 11,961.48 - - 26,346.08 4100 Employee Contriburions 35.78 1,715.80 1,680.02 2,537.06 1,693.48 1,706.87 1,583.67 1,548.28 3,097.36 15,59832 Realized Gain/Loss-Salem 4210 Equiries - 7,044.85 14,366.94 - - - 3,443.93 - - 24,855.72 4220 Fixed Income - - - - - - 7730 - - 7730 Unrealized Gain/Loss-Salem 4310 Equiries (50,037.43) 391,079.80 124,139.77 (19,322.97) 94,420.23 49,850.04 160,049.13 32,805.10 29,008.20 8ll,991.87 4320 Fixed Income (1,160.60) 33,657.29 (40,938.20) (8,622.22) (22,992.58) (44,548.12) 20,249.52 4,339.18 5,821.03 (54,194.70) 4600 interest & Dividend Tncome 0.12 0.46 82 979.42 0.89 0.79 30 902.26 0.27 1.36 57 114.87 171 000.44 Total income (51,016.15) 433,498.20 182,227.95 (11,168.62) 73,121.92 37,911.05 197,365.30 38,693.92 95,041.46 995,675.03 Account Description End October End November End December End Januar End Februar End March End A ril End Ma End June Year-To-Date Expense: 5000 Benefit Payments 12,55737 12,55737 12,55737 12,55737 12,55737 12,55737 12,55737 12,55737 12,55737 113,01633 5100 Refund of Contriburions - 20,033.03 - - - - - - - 20,033.03 6000 Custodian Fees - - 1,375.00 - - 1,375.00 - - - 2,750.00 6020 Invesrinent Consultant Fees - - 3,875.00 - - 3,875.00 - - 3,875.00 11,625.00 6100 Actuary Fees - - - 1,762.00 - - 9,593.00 - - 11,355.00 6110 Administrator Fees 583.50 583.50 583.50 583.50 583.50 601.01 607.43 601.01 601.01 5,327.96 6120 Auditar Fees - - - - - - - - 4,261.00 4,261.00 6150 Legal Fees - 690.00 322.00 414.00 184.00 139.15 3,588.00 184.00 804.54 6,325.69 6160 Postage - - - - - - 2.85 - - 2.85 6180 Accounting Fees - - - - - - - 2,973.00 - 2,973.00 6300 Fiducia Liabilit Insurance 2 010.00 - - - - - - - - 2 010.00 Total Expense 15,150.87 33,863.90 18,712.87 15,316.87 13,324.87 18,547.53 26,348.65 16,315.38 22,098.92 179,679.86 Reserve Fund Last Period 4,861,814.03 4,795,647.01 5,195,28131 5,358,796.39 5,332,310.90 5,392,107.95 5,411,471.47 5,582,48812 5,604,866.66 4,861,814.03 Balance To/ From Reserve 66 167.02 399 63430 163 515.08 26 485.49 59 797.05 19 363.52 171 016.65 22 378.54 72 942.54 815 995.17 TOTAL RESERVE FUND 4,795,647.01 5,195,281.31 5,358,796.39 5,332,310.90 5,392,107.95 5,411,471.47 5,582,488.12 5,604,866.66 5,677,809.20 5,677,809.20 Okeechobee Municipal Firefighters' Pension Fund WARRANT - PAYMENT OF INVOICES AUGUST 2ND, 2021 TO: Salem Trust FROM: Board of Trustees This Warrant serves as authorization to transfer the specified funds from Salem Trust Account persons named below hereby certified by the Board as due payments. Account Description Name Amount Administrator Resource Centers, LLC Invoice #18594; May 2021 Admin Fees $601.01 Attorney Christiansen & Dehner, P.A. Invoice #34680 Legal Fees through 4/30/2021 $184.00 Auditor Dibartolomeo, McBee, Hartley & Barnes P.A. Auditor Fees- Invoice 90073218 dated 4/7/21 $2,973.00 Administrator Resource Centers, LLC Invoice #18650; June 2021 Admin Fees $601.01 Attorney Christiansen & Dehner, P.A. Invoice #34734 Legal Fees through 5/31/2021 $804.54 Auditor Dibartolomeo, McBee, Hartley & Barnes P.A. Auditor Fees- Invoice 90072400 dated 3/3/21 $4,261.00 Administrator Resource Centers, LLC Invoice #18707; July 2021 Admin Fees $601.01 Investment Consultant AndCo Consulting Invoice #38582; Services for QE 06/30/21 $3,875.00 Attorney Christiansen & Dehner, P.A. Invoice #34792 Legal Fees through 06/30/2021 $736.00 Actuary Gabriel Roeder Smith & Company Invoice #462995; Fees through 06/30/21 $6,311.00 Custodian Salem Trust $1,375.00 Fees for QE 03/31/2021 TOTAL: Dated this 2nd Day of August, 2021. TRUSTEE $22,322.57 to pay the Disbursement Date 5/6/2021 5/6/2021 5/6/2021 6/7/2021 6/7/2021 6/7/2021 7/6/2021 7/6/2021 7/6/2021 7/6/2021 Prepaid TRUSTEE THE PENSION RESOURCE CENTER, LLC 4360 Northlake Boulevard, Suite 206 �:� Palm Beach Gardens, FL 33410 Phone (561) 624-3277 ❖ F� (561) 624-3278 ❖ WVUW.REsoURCECENTERs.COM VIA EMAIL: salemops(a�salemtrust.com May 06, 2021 Salem Trust Company 4890 W. Kennedy Blvd. Suite 160 Tampa, FL 33609 RE: Okeechobee Municipal Firefighters' Pension Fund Disbursement Request — Accounts Payable Dear Mallory: As you know, our office serves as the administrator for the Okeechobee Municipal Firefighters' Pension Fund. The Trustees approved and will ratify the payment of the attached invoices. Please process the following disbursements accordingly: • $601.01 payable to Resource Centers, LLC for Admin Fees on Invoice #18594 for May 2021. Please make check payable to: Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 • $184.00 payable to Christiansen & Dehner, P.A. for invoice 34680 dated 04/30/21 fees for legal services rendered. Please mail check to: Christiansen 8� Dehner, P.A. 63 Sarasota Center Blvd, Suite 107 Sarasota, FL 34240 • $2,973.00 for services rendered for preparation of 2020 State Report invoice 90073218 dated April 07, 2021. Please make the check payable to: Dibartolomeo, McBee, Hartley � Barnes, PA 2222 Colonial Road, Suite 200 Ft. Pierce, FL 34950 If you have any additional questions regarding these disbursements, please do not hesitate to contact our office at 561-624-3277. Thank you. Sincerely, �� Kyle Tintle Administrator � Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Mail Payments to: Resource Centers, LLC at Palm Beach Gardens address above. Invoice Date Invoice # 5/1/2021 18594 Tax ID Pension Resource Center 36-4504183 Resource Centers 87-0800468 If you have any questions concerning this invoice, please contact Michael Burr at Resource Centers, LLC Phone 561.459.2985 or email - michael@resourcecenters.com Christiansen & Dehner, P. A. Scott R. Christiansen H. Lee Dehner (1952-2019) 63 Sarasota Center Boulevard, Suite 107 Sarasota, FL 34240 941-377-2200 Phone 941-377-4848 Fax April 30, 2021 Okeechobee Municipal Firefighters' Pension Fund Pension Resource Center 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Invoice Number In Reference To: Fire Pension Fund 9010 34680 Professional Services 4/12/2021 Revise proposed ordinance and e-mail revised ordinance. For professional services rendered Previous balance Accounts receivable transactions 4/26/2021 Payment - thank you. Check No. 2625 Total payments and adjustments Balance due Hours Amount 0.40 184.00 0.40 $184.00 $3,588.00 ($3,588.00) ($3,588.00) $184.00 ** Please note that the "Balance Due" figure at the end of this bill reflects both "Total New Charges - Current Period" and any previous balances due. In most cases, if the previous balance(s) have already been approved for payment but not yet received in our office, you should be paying only the "Total New Charges - for services and/or expenses" . Thank you. Please indicate account number(s) with payment. (Please Deduct any payments not reflected in Balance due) Dibartolomeo, McBee, Hartley & Barnes, PA 2222 Colonial Rozd, Sui�c 200 Port Piercc, FL 3A'J50 Tel: 46L8633 Fax:(772)461-8872 Okeechabez Firelighters' Pcnsion l'rust Pmid c/o The Resourcc Cantcrs - Kyle 1intla 43b0 Nonhlake 131vd., Suitc 206 Palm I3cach Gardens. PI.33d 10 Services rendered for preparation of 2020 State Report for Okeechobee Municipal Firefighters' Pension Trust Fund. Adjustments for balance sheet and income statement presentations of prepaid sponsor contributions based on actuarial report ��o�� p��2zoz, D ey�_ April 7. 2021 Invoicc:90073218 Im�aicc Total S?973.00 S?,973.00 Cun'cnt I 31 to GO I 61 tu 90 I �) I and Ovcr I 'Ib�al THE PENSION RESOURCE CENTER, LLC 4360 Northlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410 Phone (561) 624-3277 ❖ FaY (561) 624-3278 ❖ vvvUW.REsovRCECENTExs.Colv1 VIA EMAIL: salemops(a�salemtrust.com June 07, 2021 Salem Trust Company 4890 W. Kennedy Blvd. Suite 160 Tampa, FL 33609 RE: Okeechobee Municipal Firefighters' Pension Fund Disbursement Request — Accounts Payable Dear Mallory: As you know, our office serves as the administrator for the Okeechobee Municipal Firefighters' Pension Fund. The Trustees approved and will ratify the payment of the attached invoices. Please process the following disbursements accordingly: • $601.01 payable to Resource Centers, LLC for Admin Fees on Invoice #18650 for June 2021. Please make check payable to: Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 • $804.54 payable to Christiansen & Dehner, P.A. for invoice 34734 dated 05/31/21 fees for legal services rendered. Please mail check to: Christiansen 8� Dehner, P.A. 63 Sarasota Center Blvd, Suite 107 Sarasota, FL 34240 • $4,261.00 payable to Dibartolomeo, McBee, Hartley & Barnes, PA for services rendered regarding audit of the financial statements for the year ended 09/30/2020 and regarding Board of Trustees Meeting on 03/01/2021 invoice 90072400 dated March 03, 2021. Please mail the check to: Dibartolomeo, McBee, Hartley & Barnes, PA 2222 Colonial Road, Suite 200 Ft. Pierce, FL 34950 If you have any additional questions regarding these disbursements, please do not hesitate to contact our office at 561-624-3277. Thank you. Sincerely, �� Kyl Tintle Administrator � Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Mail Payments to: Resource Centers, LLC at Palm Beach Gardens address above. Invoice Date Invoice # 6/1/2021 18650 Tax ID Pension Resource Center 36-4504183 Resource Centers 87-0800468 If you have any questions concerning this invoice, please contact Michael Burr at Resource Centers, LLC Phone 561.459.2985 or email - michael@resourcecenters.com Christiansen & Dehner, P. A. Scott R. Christiansen H. Lee Dehner (1952-2019) 63 Sarasota Center Boulevard, Suite 107 Sarasota, FL 34240 941-377-2200 Phone Okeechobee Municipal Firefighters' Pension Fund Pension Resource Center 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 941-377-4848 Fax May 31, 2021 Invoice Number In Reference To: Fire Pension Fund 9010 34734 Professional Services 5/3/2021 Preparation for and attendance at Board meeting and post meeting file review Travel Time For professional services rendered Additional Charges : 5/3/2021 Car Expense Food Expense Total additional charges Total amount of this bill Previous balance Accounts receivable transactions 5/19/2021 Payment - thank you. Check No. 2810 Total payments and adjustments Balance due Hours 0.90 1.50 2.40 Qty 1 1 Amount 414.00 345.00 $759.00 39.20 6.34 $45.54 $804.54 $184.00 ($184.00) ($184.00) $804.54 Okeechobee Municipal Firefighters' Pension Fund May 31, 2021 ** Please note that the "Balance Due" figure at the end of this bill reflects both "Total New Charges - Current Period" and any previous balances due. In most cases, if the previous balance(s) have already been approved for payment but not yet received in our office, you should be paying only the "Total New Charges - for services and/or expenses" . Thank you. Please indicate account number(s) with payment. (Please Deduct any payments not reflected in Balance due) Dibartolomeo, McBee, Hartley & Barnes, PA 2222 Colonial Road, Suite 200 Fort Pierce, FL 34950 Tel: 461-8833 Fax:(772)461-8872 Okeechobee Firefighters' Pension Trust Fund c/o The Resource Centers - Kyle Tintle 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Services rendered regarding audit of the financial statements for the year ended September 30, 2020. Services rendered regarding Board of Trustees meeting on March 1, 2021 March 3, 2021 Invoice: 90072400 Amount $4,200.00 $61.00 Invoice Total $4,261.00 Current 31 to 60 61 to 90 91 and Over Total 12,883,00 0.00 0.00 0.00 12,883.00 THE PENSION RESOURCE CENTER, LLC 4360 Northlake Boulevard, Suite 206 ❖ Palm Beach Gardens, FL 33410 Phone (561) 624-3277 ❖ Fax (561) 624-3278 ❖ WWvv.REsovRCECENTERs.COM VIA EMAIL: salemops(a�salemtrust.com July 06, 2021 Salem Trust Company 4890 W. Kennedy Blvd. Suite 160 Tampa, FL 33609 RE: Okeechobee Municipal Firefighters' Pension Fund Disbursement Request — Accounts Payable Dear Mallory: As you know, our office serves as the administrator for the Okeechobee Municipal Firefighters' Pension Fund. The Trustees approved and will ratify the payment of the attached invoices. Please process the following disbursements accordingly: • $601.01 payable to Resource Centers, LLC for Admin Fees on Invoice #18707 for July 2021. Please make check payable to: Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 • $3,875.00 payable to AndCo for invoice 38582 dated 06/30/21 for Consulting Services and Performance Evaluation. Please mail check to: AndCo 531 W. Morse Blvd., Suite 200 Winter Park, FL. 32789 • $736.00 payable to Christiansen & Dehner, P.A. for invoice 34792 dated 06/30/21 fees for legal services rendered. Please mail check to: Christiansen & Dehner, P.A. 63 Sarasota Center Blvd, Suite 107 Sarasota, FL 34240 • $6,311.00 payable to Gabriel, Roeder Smith & Company for invoice 462995 dated 07/01/21 for Actuarial Services rendered through 06/30/21. Please mail check to: Gabriel, Roeder Smith & Company One East Broward Blvd, Suite 505 Ft. Lauderdale, FL 33301-1804 If you have any additional questions regarding these disbursements, please do not hesitate to contact our office at 561-624-3277. Thank you. Sincerely, �j�'�R Ky e Tintle Administrator � Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 .................................................................................. � Bill To :................................................................................. :Okeechobee Municipal Firefighters' : Pension Fund Invoice ..........................:..................................... Date : Invoice # : ..........................:....................................: 7/1/2021 : 18707 ..........................'s...................................: ........................ : Tax ID Pension Resource Center 36-4504183 ................ Resource Centers 87-0800468 Description Qty Rate Amount :.............................................................................................................................................................�...............................;...................................:................................................; :Okeechobee Municipal Firefighters' Pension Monthly Administrator : 601.01 : 601.01 : : Fee for July 2021 _ . . . :................. : Total Amount Due $6oi.oi :....................................................................................................................: Mail Payments to: Resource Centers, LLC at Palm Beach Gardens address above. If you have any questions concerning this invoice, please contact Michael Burr at Resource Centers, LLC Phone 561.459.2985 or email - michael@resourcecenters.com �� AndCo 531 W. Morse Blvd Suite 200 Winter Park, FL 32789 Bill To: ; ..................................................................................... . Okeechobee Firefighters' Pension Plan Kyle Tintle Date 6/30/2021 .................................................................................. ...................................................................................... Description ..................... ............................................ ...................................................................................;...... Consulting Services and Performance Evaluation, Billed Quarterly (April, 2021) Consulting Services and Performance Evaluation, Billed Quarterly (May, 2021) Consulting Services and Performance Evaluation, Billed Quarterly (June, 2021) It is our pleasure to provide 100% independent galance Due investment consulting ALWAYS putting clients first! Invoice # 38582 . ................. Amount 1,291.67 1,291.67 1,291.66 � $3,875.00 Christiansen & Dehner, P. A. Scott R. Christiansen H. Lee Dehner (1952-2019) 63 Sarasota Center Boulevard, Suite 107 Sarasota, FL 34240 941-377-2200 Phone 941-377-4848 Fax June 30, 2021 Okeechobee Municipal Firefighters' Pension Fund Pension Resource Center 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Invoice Number In Reference To: Fire Pension Fund 9010 34792 Professional Services 6/4/2021 Review pension plan provisions re: pre-retirement death, optional forms of benefits and normal retirement benefit; preparation of administrative form PF-29 and transmittal to Board. 6/11/2021 Review and respond to e-mail from C. Kowalsky re: new fire department transition date; revise ordinance and respond. 6/22/2021 Review and respond to e-mail from C. Kowalsky re: proposed merger ordinance and e-mail to actuary for impact statement or no impact letter. 6/23/2021 Correspondence to City Administrator transmitting and explaining proposed merger ordinance. For professional services rendered Previous balance Accounts receivable transactions 6/22/2021 Payment - thank you. Check No. 3085 Total payments and adjustments Balance due Hours Amount 0.40 184.00 0.40 184.00 0.40 184.00 0.40 184.00 1.60 $736.00 $804.54 ($804.54) ($804.54) $736.00 ** Please note that the "Balance Due" figure at the end of this bill reflects both "Total New Charges - Current Period" and any previous balances due. In most cases, if the previous balance(s) have already been approved for payment but not yet received in our office, you should be paying only the "Total New Charges - for services and/or expenses" . Thank you. Please indicate account number(s) with payment. (Please Deduct any payments not reflected in Balance due) GD c Gabriel, Roeder, Smith & Company IZ J One East Broward Blvd. Suite 505 Ft. Lauderdale, Florida 33301-1804 (954) 527-1616 Attention: Mr Scott Baur Pension Administrator City of Okeechobee Firefighter's Pension Plan Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, Florida 33410 Professional actuarial and consulting services as provided under our Actuarial Services Agreement dated November 8, 2010 as amended February 5, 2018. FIXED-FEE SERVICES for the quarter ended June 30, 2021 including: - None SPECIAL CONSULTING SERVICES rendered during the quarter ended June 30, 2021: - Actuarial review of proposed Ordinance in coordination with the Plan Attorney (4/12) - Preparation and delivery of October 1, 2020 Chapter 112.664 Compliance Report including required upload to the State's online portal (4/29 Amount Due Invoice 462995 7/ 1/2021 Dept. # 78009 Gabriel, Roeder, Smith & Company PO Box 78000 Detroit, Michigan 48278-0009 38-1691268 1,762.00 1,586.00 2,963.00 $6,311 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. Page 1 of 1 � SALEM TRUSZ O M P A N Y The Resource Centers, LLC Scott Baur 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Fee Advice for Period Total Market Value for Fund: Detail of Calculation: Market Value $5,416,720.79 April 9, 2021 Fee A/C# M44560 Okeechobee Fire March 31, 2021 January 1, 2021 to $5,416,720.79 Basis Point Rate BPs Annual Fee 0.0006 $3,250.03 Minimum Fee TOTALFEE These fees will automatically be charged to your account. If you have any questions, please contact Mindy Johnson at 813.288.4990. Quarterly Fee $812.51 $562.49 $1,375.00 1715 N. WESTSHORE BLVD., SUITE 750 TAMPA, FL 33607 TEL (877) 382-5268 FAX (813) 301-1295 www.salemtrust.com � �� July 16, 2021 Board of Trustees City of Okeechobee Firefighters' Retirement System c/o Mr. Scott Baur Resource Centers, LLC 4360 Northlake Blvd Suite 206 Palm Beach Gardens, FL 33410 � : �:r :.'.rrf.:.rl,: t :r�7.:r .�. .,. _S ..,..�:.t�r4e.r.n�.ilt�n�.c::��i7 Re: City of Okeechobee Firefighters' Retirement System Actuarial Impact Statement Dear Scott: As requested, we are pleased to enclose an Actuarial Impact Statement as of October 1, 2020 to illustrate the first year impact of the attached proposed Ordinance which amends and restates the Okeechobee Firefighters' Retirement System (System) as described below. Background — The City Council has entered into an inter-local agreement with Okeechobee County, Florida (County) to provide fire services to the City of Okeechobee. Proposed Ordinance—The proposed Ordinance amends and restates the System provisions as follows: ➢ Effective August 2, 2021, the System is closed to new or reemployed members. Current members can elect to remain in the System orjoin the County Retirement Program. The County Retirement Program is the Florida Retirement System (FRS). ➢ Members who elect to remain in the System accrue benefit service and salary for active employment under the City or County. ➢ Members who elect to leave the System who have less than 10 years of credited service and are therefore not vested will receive a refund of their accumulated contributions. ➢ Members who elect to leave the System who have 10 or more years of credited service and are therefore vested can receive either a deferred vested retirement benefit or a refund of their accumulated contributions. ➢ The County agrees to contribute, until no active members remain, the lesser of the required annual Employer contribution of the County's Retirement Program or of the System. ➢ Amends the required beginning date in compliance with the Setting Every Community Up for Retirement Enhancement ("SECURE") Act. Please note this change is no cost. Mr. Scott Baur July 16, 2021 Page ii Summary of Findings — Please note that the impact of the proposed System change is being shown on the actuarially determined contribution for the fiscal year ending September 30, 2022, using the valuation results as of October 1, 2020, the most recent actuarial valuation. ➢ As a result of the System change, the required employer contribution amount for Firefighters for the fiscal year ending September 30, 2022 decreased by $22,686, from $22,686, to $0. ➢ As a result of the System change, the Unfunded Actuarial Accrued Liability (UAAL) for Firefighters increased by $268,575, from ($882,680) to ($614,105). ➢ As a result of the System change, the funded ratio of the System (actuarial value of assets divided by actuarial accrued liability) decreased from 122.7% to 114.8%. Filing Repuirements — We have prepared the Actuarial Impact Statement for filing with the State of Florida. Please note that this Statement must be signed and dated on behalf of the Board of Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated Actuarial Impact Statement are generally required to be filed with the State at the following address: Mr. Douglas E. Beckendorf, A.S.A. Bureau of Local Retirement Services Division of Retirement Building 8 Post Office Box 9000 Tallahassee, Florida 32315-9000 We understand the State requires funding any increases in costs no later than the fiscal year next following the effective date of the Ordinance. Please forward a copy of the Ordinance upon passage to update our files. Other Considerations — Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the cost / income of plan changes must be recognized immediately in pension expense (accounting not funding). Therefore, the pension expense is expected to increase the first year and then is expected to decrease to a lower level in fiscal years following initial recognition of the plan change. Actuarial assumptions and methods, financial data, System provisions and member census data — The actuarial assumptions and methods, financial data and member census data employed for purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods, financial data and member census data utilized for the October 1, 2020 Actuarial Valuation of the System with the following exception: �� Mr. Scott Baur July 16, 2021 Page iii ➢ Includes 6 members who have elected to join the County retirement program. ➢ The 4 remaining members are assumed to continue service as a firefighter for the City or County. ➢ Interest to be earned by the Fund was decreased from 7% to 6%. Information regarding member elections to leave or remain in the System was provided by the City. The System provisions employed for purposes of our Actuarial Impact Statement are the same System provisions utilized in the October 1, 2020 Actuarial Valuation of the System with the exception of the proposed changes described above. RiskAssessment— Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic modeling, and a comparison of the present value of benefits at low-risk discount rates. We are prepared to perform such assessment to aid in the decision-making process. Please refer to the October 1, 2020 Actuarial Valuation Report dated February 17, 2021 for additional discussion regarding the risks associated with measuring the liability and the minimum funding payment. This Actuarial Impact Statement is intended to describe the estimated future financial effects of the proposed benefit changes on the System and is not intended as a recommendation in favor of the benefit changes nor in opposition to the changes. If all actuarial assumptions are met and if all current and future minimum required contributions are paid, System assets will be sufficient to pay all System benefits and future contributions are expected to remain relatively stable as a percent of payroll. System minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act and Firefighters' Retirement Chapter 175 with normal cost determined using the Aggregate Cost Method. These calculations are based upon assumptions regarding future events. However, the System's long term costs will be determined by actual future events, which may differ materially from the assumptions made. These calculations are also based upon present and proposed System provisions that are outlined or referenced in this Actuarial Impact Statement. If you have reason to believe the assumptions used are unreasonable, the System provisions are incorrectly described or referenced, important System provisions relevant to this Actuarial Impact Statement are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Impact Statement. If you have reason to believe that the information provided in this Actuarial Impact Statement is inaccurate, or is in any way incomplete, or if you need further information in order to make an �� Mr. Scott Baur July 16, 2021 Page iv informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: System experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period) and changes in System provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements. This Actuarial Impact Statement should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This Actuarial Impact Statement 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 System as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Actuarial Impact Statement was prepared using our proprietary valuation model and related software which in our professional judgment has the capability to provide results that are consistent with the purposes of the valuation and has no material limitations or known weaknesses. We performed tests to ensure that the model reasonably represents that which is intended to be modeled. This Actuarial Impact Statement may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the System sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. �� Mr. Scott Baur July 16, 2021 Page v If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, _ � Shelly L. Jones, A.S.A., E.A., M.A.A.A, F.C.A. Consultant and Actuary " � -`" �� Jennifer M. Borregard, E.A., M.A.A.A., F.C.A. Consultant and Actuary Enclosures �� Actuarial Impact Statement as of October 1. 2020 A. Description of Proposed Amendment (1) Effective August 2, 2021, the System is closed to new or reemployed members. Current members can elect to remain in the System or join the County Retirement Program. The County Retirement Program is the Florida Retirement System (FRS). (2) Members who elect to remain in the System accrue benefit service and salary for active employment under the City or County. (3) Members who elect to leave the System who have less than 10 years of credited service and are therefore not vested will receive a refund of their accumulated contributions. (4) Members who elect to leave the System who have 10 or more years of credited service and are therefore vested can receive either a deferred vested retirement benefit or a refund of their accumulated contributions. (5) The County agrees to contribute, until no active members remain, the lesser of the required annual Employer contribution of the County's Retirement Program or of the System. (6) Amends the required beginning date in compliance with the Setting Every Community Up for Retirement Enhancement ("SECURE") Act. Please note this change is no cost. B. An estimate of the cost implementing this amendment is attached. C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the Statement Constitution. Chairman, Pension Board GRS Date City of Okeechobee Firefighters' Retirement System Actuarial Impact Statement as of October 1. 2020 A. Participant Data 1. Active participants 2. Retired, disabled and beneficiaries receiving benefits (including DROPs) 3. Terminated vested participants 4. Annual payroll of active participants 5. Annual benefits payable to those currently receiving benefits (including DROPs) B. Assets 1. Smoothed actuarial value 2. Market value C. Liabilities 1. Actuarial present value of future expected benefit payments for active members a. Retirement benefits b. Vesting benefits c. Disability benefits d. Death benefits e. Total 2. Actuarial present value of future expected benefit payments for terminated vested members and miscellaneous 3. Actuarial present value of future expected benefit payments for members currently receiving benefits a. Service retired including DROPs b. Disability retired c. Beneficiaries d. Miscellaneous (refunds in process) e. Total 4. Share Plan Liability 5. Total actuarial present value of future expected benefit payments 6. Actuarial accrued liabilities (Entry Age Normal) 7. Unfunded actuarial accrued liabilities (Entry Age Normal) Valuation 10/01/2020 10 8 1 $ 426,372 $ $ 229,985 $ $ 4,770,705 $ $ 4,852,274 $ $ 2,368,216 $ 140, 275 94,112 9,896 $ 2,612,499 $ $ 67,685 $ � 2,112,849 $ 347,412 286,006 20,459 $ $ $ $ $ 2,766,726 $ 2,789 $ 5,449,699 $ 3,888,025 $ (882,680) $ D. Normal Cost 1. Present Value of Future Normal Costs (C.S. - B.1.) $ 678,994 2. Present Value of Future Salaries $ 5,669,064 3. Normal Cost Accrual Rate (D.1. / D.2.) 11.977% 4. Normal Cost (A.4. x D.3.) $ 51,067 * Includes six (6) members who have elected to join the County Retirement Program. Actuarial Impact Statement 10/01/2020 10* 8 1 183,592 229,985 4,770,705 4,852,274 1,505,296 77,464 51,726 5,672 1, 640,158 237,894 2,314,327 376,215 306,559 37,761 3,034,862 2,789 4,915,703 4,156, 600 (614,105) $ $ 144,998 2,232,022 6.496 % 11,926 �� . GRS City of Okeechobee Firefighters' Retirement System 1 Actuarial Impact Statement as of October 1. 2020 E. Statement of Accumulated Plan Benefits 1. Actuarial present value of accumulated vested benefits a. Participants currently receiving benefits b. Terminated vested members and miscellaneous (including share plan liability) c. Other participants d. Total 2. Actuarial present value of accumulated non- vested plan benefits 3. Total actuarial present value of accumulated plan benefits F. Pension Cost 1. Total normal cost 2. Estimated administrative expenses 3. Interest adjustment 4. Total required contributions 5. Item 4 as a percentage of payroll 6. Estimated employee contributions 7. Item 6 as a percentage of payroll 8. Expected State contribution 9. Item 8 as a percentage of payroll 10. Net amount payable by Employer 11. Item 10 as a percentage of payroll G. Disclosure of Followin� Items: 1. Actuarial present value of future salaries - attained age 2. Actuarial present value of future employee contributions - attained age 3. Actuarial present value of future contributions from other sources 4. Amount of active members' accumulated contributions 5. Actuarial present value of future salaries and future benefits at entry age 6. Actuarial present value of future employee contributions at entry age Valuation 10/01/2020 �� 2,746,267 $ 90,933 507,416 3,344,616 $ 73,605 3,418,221 $ $ �� $ 51,067 $ 40, 275 5,333 96,675 $ 22.7% 21,319 $ 5.0% 52,670 $ 12.4% 22,686 $ 5.3 % $ $ $ $ $ $ 5,669,064 $ 283,453 $ N/A 159,331 $ N/A N/A $ Actuarial Impact Statement 10/01/2020 2,997,101 278,444 448,005 3,723,550 17,886 3, 741, 436 11,926 40,275 3,132 55,333 30.1 % 9,180 5.0 % 52,670 28.7% 0 0.0 % 2,232,022 111, 601 N/A 108, 744 N/A N/A GRS City of Okeechobee Firefighters' Retirement System 2 Actuarial Impact Statement as of October 1, 2020 This Actuarial Valuation and/or cost determination was prepared and completed by us or under our direct supervision, and we acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate, and in our opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to be provided by the System and/or paid from the System's assets for which liabilities or current costs have not been established or otherwise provided for in the valuation. All known events or trends which may require material increase in System costs or required contribution rates have been taken into account in the valuation. _� Shelly L. Jones, A.S.A, E.A. Enrollment Number: 20-08684 Date: July 16, 2021 �� Jennifer M. Borregard, E.A. Enrollment Number: 20-07624 GRS City of Okeechobee Firefighters' Retirement System 3 Outline of Principal Provisions of the Retirement System A. Effective Date: January 1, 1972. Most recently amended by Ordinance No. 1188 adopted July 16, 2019. B. Eli�ibility: All actively employed full time Firefighters who elect to remain members of the System following the merger with the County are eligible on date of employment. After August 2, 2021 the System is closed to new or reemployed members. C. Contributions: Employee: State: County: City: D. Credited Service: 5.0% of Salary. Premium Tax Revenue. Until no active members remain, the lesser of the required annual Employer contribution of the County's Retirement Program or of the System. Balance required to maintain System on sound actuarial basis. Service is measured as the total number of years and fractional part of years of continuous service as a Member. No service is credited for any periods of employment for which the Member received a refund of Employee Contributions. [System is being administered and valued based upon total number of years and completed months of service as a Member]. E. Salary: Basic compensation including tax deferred, tax sheltered and tax exempt income which would otherwise be included in base income, derived from elective employee payroll deductions or salary reductions. F. Avera�e Final Compensation: Average Final Compensation (AFC) is determined by the average basic salary over the highest 5 years of the last 10. G. Normal Retirement: 1. Eli�ibilitv: Earlier of: (a) Attainment of age 55 with completion of 10 years of Credited Service. (b) Completion of 25 years of Credited Service. 2. Benefit: 3.0% times AFC times Credited Service. GRS City of Okeechobee Firefighters' Retirement System 4 Outline of Principal Provisions of the Retirement System H. Earlv Retirement: 1. Eli�ibility: Attainment of age 50 with completion of 10 years of Credited Service. 2. Benefit: Benefit accrued to date of retirement, reduced by 3% for each year early retirement date precedes age 55. I. Delayed Retirement: Computed the same as set forth under Normal Retirement, based upon AFC and Credited Service as of delayed retirement date. J. Disability Retirement: 1. Service Incurred: Accrued benefit, but not less than 42% of AFC. 2. Non-Service Incurred: a. Eligibility: 5 or more years of Credited Service; totally and permanently disabled. b. Benefit: The greatest of: (i) Accrued benefit (ii) 2% of AFC times Credited Service (iii) 25% of AFC K. Pre-Retirement Death Benefit: a. Not Vested b. Vested but Not Eligible for Early or Normal Retirement: Refund of accumulated contributions. Greater of (a) 50% of the present value of vested accrued benefit or (b) refund of accumulated contributions. c. Eligible for Early or Greater of (a) accrued benefit, determined as though the deceased had retired Normal Retirement: immediately preceding date of death and elected the 10 year certain and life form of payment or (b) 50% of present value of vested accrued benefit. In the event a vested Member's spouse is the sole beneficiary, the beneficiary shall be entitled to the accrued normal or early retirement benefit payable at the deceased Member's early or normal retirement age less the value of any benefits paid above. GRS City of Okeechobee Firefighters' Retirement System 5 Outline of Principal Provisions of the Retirement System L. Termination Benefits: 1. Eli�ibility: 100% vesting upon the completion of 10 years of credited service. Employees who have not completed 10 years of credited service at date of termination of employment shall only be entitled to the return of their accumulated contributions with 3.0% interest. 2. Benefit: Accrued benefit based upon credited service and AFC as of date of termination, payable at age 55. M. Normal Form of Retirement Income: Monthly benefit payable for ten (10) years certain and life thereafter. N. Oational Forms of Retirement Income: In lieu of electing the normal form of payment, the optional forms of payment available are the Single Life Annuity option and the 50%, 66 2/3%, 75% and 100% Joint and Contingent options. A Social Security option is available for Members retiring prior to being eligible for Social Security retirement benefits. A 20% Partial Lump Sum is available for Members who do not participate in the DROP. O. Deferred Retirement Option Pro�ram (DROP) 1. Eli�ibilitv: Member must be eligible for Normal Retirement. 2. Benefit: Retirement benefits are transferred to a hypothetical DROP account within the pension fund. Interest is credited or debited based upon either the quarterly rate of return earned by the Fund or a monthly 6.5% fixed rate of return, as elected by the Member. Members may elect to change their interest crediting election once during the DROP period. The period of participation in the DROP is limited to no more than 60 months. The benefit is paid as a lump sum upon actual termination of employment. GRS City of Okeechobee Firefighters' Retirement System 6 Outline of Principal Provisions of the Retirement System P. Cost of Living Adlustment (COLA) Beginning October 1, 1999 and October 1 of every odd-numbered year thereafter, monthly benefits of all retirees (service, disability, DROP), beneficiaries and vested terminated participants who have been in the DROP or in pay status for at least one year on the adjustment date will be increased by 0.5%. Q. Chan�es Since Previous Actuarial Valuation Eli�ibility was: All actively employed full time Firefighters of the City are eligible on date of employment; Participation is mandatory. Contributions were: Employee: 5.0% of Salary. State: Premium Tax Revenue. City: Balance required to maintain System on sound actuarial basis. GRS City of Okeechobee Firefighters' Retirement System 7 Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation A. Mortalitv For healthy participants during employment, PUB-2010 Headcount Weighted Safety Employee Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For healthy participants post employment, PUB-2010 Headcount Weighted Safety Healthy Retiree Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set forward 1 year, with fully generational mortality improvements projected to each future decrement date with Scale MP-2018. For disabled participants, 80% PUB-2010 Headcount Weighted General Disabled Retiree Mortality Table / 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates for males and females, without projected mortality improvements. Pre-retirement Sample Future Life Ages Expectancy (Years) (2020) Men Women 55 60 62 30.45 25.51 23.58 34.32 29.26 27.25 Pre-retirement Sample Future Life Ages Expectancy (Years) (2040) Men Women 55 60 62 32.09 27.08 25.11 B. Interest to be Earned bv Fund 35.81 30.70 28.67 29.48 24.79 23.00 6.0% (net of investment expenses), compounded annually - includes inflation at 2.5%. C. Allowances for Expenses or Contin�encies Actual administrative expenses incurred during the prior System year. Post-retirement Future Life Expectancy (Years) Men Women 27.59 23.01 21.28 31.17 26.39 24.55 Post-retirement Future Life Expectancy (Years) Men Women 33.00 28.13 26.25 GRS City of Okeechobee Firefighters' Retirement System 8 Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation D. Salary Increase Factors Current salary is assumed to increase at a rate of 7.0% - includes wage inflation of 3.5%. E. Disabilitv Rates Disability rates for males and for females were used in accordance with the following illustrative example. Disability Rates Per 100 Employees 0.14 0.18 0.30 1.00 � 20 30 40 50 85% of disabilities are assumed to be service incurred -15% non-service incurred. F. Emplovee Withdrawal Rates Withdrawal rates for males and for females were used in accordance with the following illustrative example. � 20 30 40 50 60 Withdrawal Rate 6.0% 5.0% 2.6% 0.8% 0.2 % G. Rates of Retirement 100% at normal retirement age. All active members on the valuation date are assumed to have a minimum of one year of future service. GRS City of Okeechobee Firefighters' Retirement System 9 Actuarial Assumptions and Actuarial Cost Methods Used in the Valuation H. Cost Methods Normal Retirement, Termination, Disability, and Death Benefits: A��re�ate Under this method the excess of the Actuarial Present Value of Projected Benefits of the group included in the valuation, over the sum of the Smoothed Value of Assets is allocated as a level percentage of earnings of the group between the valuation date and the assumed retirement age. This allocation is performed for the group as a whole, not as a sum of individual allocations. The portion of this Actuarial Present Value allocated to a specific year is called the Normal Cost. Under this method, actuarial gains (losses) reduce (increase) future Normal Costs. Vested Normal Retirement, Termination, Disability, and Death Benefits: Unit Credit Cost Method Under this method, the actuarial present value of vested accrued benefits is an amount calculated to be the sum of the present values of each individual's vested accrued or earned benefit under the Fund as of the valuation date. Each individual's calculation is based on pay and service as of the valuation date. I. Asset Valuation Method The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 25% per year. The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair market value of System assets and whose upper limit is 120% of the fair market value of System assets. J. Chan�es Since Previous Actuarial Valuation Interest to be earned by the Fund was 7%. GRS City of Okeechobee Firefighters' Retirement System 10 ORDINANCE NO. AN ORDINANCE OF THE CITY OF OKEECHOBEE AMENDING AND RESTATING THE CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND, ADOPTED PURSUANT TO ORDINANCE 889, 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 Firefighter employees are presently provided pension and certain other benefits under Ordinances of the City of Okeechobee; WHEREAS, it becomes necessary from time to time to amend said ordinances in order to clarify or restate certain provisions of the ordinance, or to enact amendments to comply with revised Federal regulations; WHEREAS, the City Council has entered into an inter-local agreement with Okeechobee County, Florida, to provide fire services to the City of Okeechobee; WHEREAS, the City Council desires to clarify and restate the provisions of the Municipal Firefighters' Pension Fund to consolidate all priorordinances, and to incorporate Federal law and the applicable provisions of Chapter 175, Florida Statutes; 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 Municipal Firefighters' Pension Fund, adopted pursuant to Ordinance No. 889, as subsequently amended, is hereby amended and restated as set forth in the document designated THE CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND, 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 August 2, 2021 Introduced on first reading and set for public hearing this day of , 2021. Dowling Watford, Jr., Mayor ATTEST: Lane Gamiotea, City Clerk Passed ATTEST: on second reading . 2021. Lane Gamiotea, City Clerk after public hearing this day of Dowling Watford, Jr., Mayor APPROVED FOR LEGAL SUFFICIENCY: Carlyn Kowalsky, City Attorney CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND 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 October 30, 2003 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. Actuarial Equivalent means that any benefit payable under the terms of this System in a form other than the normal form of benefit shall have the same actuarial present value on the date payment commences as the normal form of benefit. For purposes of establishing the actuarial present value of any form of payment other than a lump sum distribution, all future payments shall be discounted for interest and mortality by using seven percent (7%) interest and the RP-2000 Combined Healthy Participant Mortality Table, projected to 2015 using projection scale AA, using a blend of 50% male mortality rates and 50% female mortality rates, set back five (5) years for disabled lives. This definition may only be amended by the City pursuant to the recommendation of the Board using assumptions adopted by the Board with the advice of the plan's actuary, such that actuarial assumptions are not subject to City discretion. Averaqe 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, or the career average as a full-time Firefighter, whichever is greater. 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. C� means City of Okeechobee, Florida. time. Code means the Internal Revenue Code of 1986, as amended from time to Countv means Okeechobee County, Florida. Credited Service means the total number of years and fractional parts of years of service as a Firefighter with Member contributions when required, omitting intervening years or fractional parts of years when such Member was not employed by the City or County as a Firefighter. - ,.,.,,., r,..,,...,.y .,.., r........,....� ... ,,....,� ,.,....,r,..,�.,.. . ....... . ......y,...,., ..,,,...�, ,....,,.y ....,..,...,, . If a vested Member leaves the employ of the County Fire Department, his Accumulated Contributions will be returned only upon his written request. , , - , • , • , , - , • , and upon completion of a written election to receive a cash lump sum or to rollover the lump sum amount on forms designated by the Board. Upon return of a Member's Accumulated Contributions, all of his rights and benefits underthe System are forfeited and terminated. , , , , , 3 The years or fractional parts of a year that a Member performs "Qualified Military Service" consisting of voluntary or involuntary "service in the uniformed services" as defined in the Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353), after separation from employment as a Firefighter ' to perform training or service, shall be added to his years of Credited Service for all purposes, including vesting, provided that: A. The Member is entitled to reemployment under the provisions of USERRA. B. The Member returns to his employment as a Firefighter within one (1) year from the earlier of the date of his military discharge or his release from active service, unless otherwise required by USERRA. C. The maximum credit for military service pursuant to this paragraph shall be five (5) years. D. This paragraph is intended to satisfy the minimum requirements of USERRA. To the extent that this paragraph does not meet the minimum standards of USERRA, as it may be amended from time to time, the minimum standards shall apply. In the event a Member dies on or after January 1, 2007, while performing USERRA Qualified Military Service, the beneficiaries of the Member are entitled to any benefits (other than benefit accruals relating to the period of qualified military service) as if the Member had resumed employment and then died while employed. Beginning January 1, 2009, to the extent required by Section 414(u)(12) of the Code, an individual receiving differential wage payments (as defined under Section 3401(h)(2) of the Code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under Section 415(c) of the Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner. Leave conversions of unused accrued paid time off shall not be permitted to be applied toward the accrual of Credited Service either during each Plan Year of a Member's employment with the City or County or in the Plan Year in which the Member terminates employment. Effective Date means April 20, 1993. Firefiqhter means an activelyemployed full-time person employed bythe City or County, including his initial probationary employment period, who is certified as a Firefighter as a condition of employment in accordance with the provisions of § 633.408, Florida Statutes, and whose duty it is to extinguish fires, to protect life and to protect property. The term includes all certified, supervisory, and command personnel whose duties include, in whole or in part, the supervision, training, guidance, and management responsibilitiesoffull-timefirefighters, part-timefirefighters, orauxiliaryfirefighters butdoes not include part-time firefighters or auxiliary firefighters. Fund means the trust fund established herein as part of the System. Member means an actively employed Firefighter 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. Retiree means a Member who has entered Retirement Status. Retirement means a Member's separation from City or County employment with eligibility for immediate receipt of benefits under the System or entry into the Deferred Retirement Option Plan. 0 Salary means the basic compensation paid by the City for services rendered to the City or County as a Firefiqhter , plus all tax deferred, tax sheltered and tax exempt items of income derived from elective employee payroll deductions or salary reductions otherwise includible in basic compensation. 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 Municipal Firefighters' Pension Fund 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 Eliqibilitv. � All Firefighters as of the Effective Date who elect, followinq the merqer with the County, to remain Members of this System, �el-�I , shall remain Members of this System as a condition of employment. After Auqust 2, 2021, there shall be no new or reemploved Members of the Svstem. . . - -- - -- - - --- -- -- -- - ----- - - - ---- -- . - . . - - - . - .- -.. -. . . . - - -. - --- -- ;- -- ; --- ;-; ;, -- 2. Desiqnation of Beneficiary. Each Firefighter shall complete a form prescribed by the Board providing for the designation of 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 is hereby vested in a Board of Trustees. The Board is hereby designated as the plan administrator. The Board shall consist of five (5) Trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal residents of the City, who shall be appointed by the Okeechobee City Council, and two (2) of whom shall be full-time Firefighter Members of the System, who shall be elected by a majority of the Firefighters who are Members of the System. The active Firefiqhter Member seats may be held by either a retired firefiqhter or an active firefiqhter who is elected by the active and retired firefiqhters of the plan. If there are no active or retired firefiqhters remaininq in the plan or capable of servinq, the remaininq Board members may elect an individual to serve in an active firefiqhter seat. Upon receipt of such person's name, the City Commission shall, as a ministerial duty, appoint such person to the Board. The fifth Trustee shall be chosen by a majority of the previous four (4) 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 5 Trustee. The fifth Trustee shall have the same rights as each of the other four (4) Trustees appointed or elected as herein provided and shall serve a four (4) year term unless he sooner vacates the office. Each resident Trustee shall serve as Trustee for a period of four (4) years, unless he sooner vacates the office or is sooner replaced by the Okeechobee City Council 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 or the County as a Firefighter 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 �et 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. 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 (1) 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. In the event the Board chooses to use the City's legal counsel, actuary or other professional, technical or other advisors, it shall do so only under terms and conditions acceptable to the Board. 5. The duties and responsibilities of the Board shall include, but not necessarily be limited to, the following: 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 adminis- trative 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. 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 Municipal Firefighters' Pension Fund 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 Municipal Firefighters' Pension Fund. In lieu thereof, the Board shall deposit the funds of the Municipal Firefighters' Pension Fund 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 or County, and E. All interest, dividends and gains (or losses) whatsoever, and F. Such other entries as may be properly required so as to reflect a clear and complete financial report of the Fund. 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. rl 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 by the 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 bythe 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 by an agency of the government of the United States. (4) Bonds issued by the State of Israel. (5) Stocks, commingled funds administered by national or state banks, mutual funds and bonds or other evidences of indebtedness, provided that: (a) Except as provided in paragraph (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 twenty-five percent (25%) of the assets of the Fund at market value may be invested in foreign securities. (c) The Board shall not invest more than five percent (5%) of its assets in the common stock, capital stock, or convertible securities of any one issuing company, nor shall the aggregate investment in any one issuing company exceed five percent (5%) of the outstanding capital stock of that company; nor shall the aggregate of its investments in common stock, capital stock and convertible securities at cost exceed sixty percent (60%) of the assets of the Fund. (6) Real estate, provided the Board shall not invest more than ten percent (10%) at cost in real property or real estate. 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, as defined in Section 175.071, Florida Statutes, 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 nor any Trustee shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Fund, except that due to his or its own negligence, willful misconduct or lack of good faith. �'j 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, recapitalizations, consolidations, and similartransac- tions 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 ordi- nance, 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, shall be paid. Overpayments 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 provided for herein. 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 such agent; provided further, that legal title to said Fund shall always remain in the Board. SECTION 5. CONTRIBUTIONS. Member Contributions. A. Amount. Each Member of the System shall be required to make regular contributions to the Fund in the amount of five percent (5%) of his Salary. Member contributions withheld by the £� County 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 �'7 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 Mem ber contributions. B. Method. Such contributions shall be made by payroll deduction. 2. State Contributions. Any monies received or receivable by reason of laws of the State of Florida, for the express purpose of funding and paying for retirement benefits for Firefighters e#�r� Et�y shall be deposited in the Fund comprising part of this System immediately and under no circumstances more than five (5) days after receipt by the City. 3. City or Countv Contributions. So long as this System is in effect, the City and County shall make at least 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 County shall contribute to the plan the fundinq required as provided for in Section 31. 4. 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 or County contributions. SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY. Normal Retirement Aqe and Date. A Member's normal retirement age is the earlier of the attainment of age fifty- five (55) and the completion of ten (10) years of Credited Service, or upon the completion of twenty-five (25) years of Credited Service, regardless of age. Each Member shall become one hundred percent (100%) vested in his accrued benefit at normal retirement age. A Member's normal retirement date shall be the first day of the month coincident with or next following the date the Member retires from the £�t County 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 the Member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. The monthly retirement benefit shall equal three percent (3%) 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 attainment of age fifty (50) and the completion of ten (10) years of Credited Service. Early retirement under the System is Retirement from employment with the £�q County 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 on what would have been his normal retirement date, determined based upon his actual years of credited service, 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, determined based upon his actual years of Credited Service, except that Credited Service and Average Final Compensation shall be determined as of his early retirement date; or 10 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 three percent (3%) for each year the commencement of benefits precedes the date which would have been the Member's normal retirement date based upon his actual years of Credited Service. 5. Cost of Livinq Adjustment. Beginning retroactively to October 1, 1999, and on every October 1 of odd numbered years thereafter, the monthly benefit of each Retiree (ortheir Beneficiary orjoint annuitant), including disability Retirees and vested terminated persons, who has been receiving benefits for at least one (1) year as of the adjustment date, shall be increased by one-half of one percent (.5%). This benefit shall apply to all current and future eligible Retirees (or their Beneficiary or joint annuitants). 6. Required Distribution Date. The Member's benefit under this Section must begin to be distributed to the Member no later than ' the Member's required beqinninq date, as provided under Section 16. SECTION 7. DEATH BENEFITS. Prior to Vestinq or Eliaibilitv for Retirement. The Beneficiary of a deceased Member who was not receiving monthly benefit payments, or who was not yet vested or eligible for early or normal Retirement shall receive a refund of one hundred percent (100%) of the Member's Accumulated Contribu- tions. 2. Deceased Members Vested or Eliqible for Retirement. A. 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 five thousand dollars ($5,000), it shall be paid in a lump sum. If the value exceeds five thousand dollars ($5,000), the Beneficiary may elect payment under any of the optional forms available for retirement benefits or a lump sum payment. B. 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. C. Additional requlations with Spouse as Beneficiary. This subsection 2. applies only when the Member's Spouse is the sole designated Beneficiary. Notwithstanding the previous paragraphs of this subsection 2, in the event a Member or terminated vested person, with ten (10) or more years of Credited Service, dies prior to Retirement or prior to receipt of benefits, his Beneficiary shall be entitled to the accrued normal or early retirement benefit payable at the deceased Member's early or normal retirement age less the value of any benefits paid or payable under this subsection. 11 (1) Notwithstanding anything contained in this section to the contrary, in any event, distributions to the spouse beneficiary will begin , no later than the Member's required beqinninq date, as provided under Section 16, subsection 2.B.(1). (2) If the surviving spouse beneficiary commences receiving a benefit under subsection A or B above, but dies before all payments are made, the actuarial value of the remaining benefit will be paid to the spouse beneficiary's estate in a lump sum. D. Additional requlations with non-spouse as beneficiary. This subsection applies only when the Member's Spouse is not the Beneficiary or is not the sole designated Beneficiary, but there is a surviving Beneficiary. Notwithstanding the previous paragraphs of this subsection 2., in the event a member or terminated vested person, with ten (10) or more years of credited service, dies prior to retirement or prior to receipt of benefits, his or her beneficiary shall be entitled to the accrued normal or early retirement benefit payable beginning by December 31 of the calendar year immediately following the calendar in which the member died. The benefit will be calculated as for normal retirement based on the deceased Member's Credited Service and Average Final Compensation and actuarially reduced to reflect the commencement of benefits prior to the normal retirement date. (a) If a surviving beneficiary commences receiving a benefit under subsection D. above, but dies before all payments are made, the actuarial value of the remaining benefit will be paid to the surviving beneficiary's estate by December 31 of the calendar year of the beneficiary's death in a lump sum. (b) If there is no surviving beneficiary as of the member's death, and the estate is to receive the benefits, the actuarial equivalent of the member's entire interest must be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death. (c) The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9 shall determine the payment period for the calendar year benefits commence, if necessary to satisfy the regulations. SECTION 8. DISABILITY. Disability Benefits In-Line of Duty. Any Memberwho shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Firefighter, which disability was directly caused by the performance of his duty as a Firefighter, shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to three percent (3%) of his Average Final Compensation multiplied by the total years of Credited Service, but in any event, the minimum amount paid to the Member shall be forty-two percent (42%) of the Average Final Compensation of the Member. Eligibility requirements for disability benefits are set forth in subsection 8., below. 2. In-Line of Duty Presumptions. A. Presumption. Any condition or impairment of health of a Member caused by hypertension or heart disease shall be presumed to have been suffered in line of duty unless the contrary is shown by com- petent evidence, provided that such Member shall have successfully passed a physical examination upon entering into such service, which examination failed to reveal any evidence of such condition; and `�a provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance. B. Additional Presumption. The presumption provided for in this subparagraph B. shall apply only to those conditions described in this subparagraph B. that are diagnosed on or after January 1, 1996. (1) Definitions. As used in this subsection 2.B., the following definitions apply: (a) "Body fluids" means blood and body fluids containing visible blood and other body fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the Centers for Disease Control, apply. For purposes of potential transmission of ineningococcal meningitis or tuberculosis, the term "body fluids" includes respiratory, salivary, and sinus fluids, including droplets, sputum, and saliva, mucous, and other fluids through which infectious airborne organisms can be transmitted between persons. (b) "Emergency rescue or public safety Member" means any Member employed full time by the £�q County as a firefighter, paramedic, emergency medical technician, law enforcement officer, or correctional officer who, in the course of employment, runs a high risk of occupational exposure to hepatitis, meningococcal meningitis, or tuberculosis and who is not employed elsewhere in a similar capacity. However, the term "emergency rescue or public safety Member" does not include any person employed by a public hospital licensed under Chapter 395, Florida Statutes, or any person employed by a subsidiary thereof. (c) "Hepatitis" means hepatitis A, hepatitis B, hepatitis non- A, hepatitis non-B, hepatitis C, or any other strain of hepatitis generally recognized by the medical community. (d) "High risk of occupational exposure" means that risk that is incurred because a person subject to the provisions of this subsection, in performing the basic duties associated with his employment: Provides emergency medical treatment in a non- health-care setting where there is a potential for transfer of body fluids between persons; At the site of an accident, fire, or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instru- ments exposed to body fluids; iii. Engages in the pursuit, apprehension, and arrest of law violators or suspected law violators and, in performing such duties, may be exposed to body fluids; or iv. Is responsible for the custody, and physical restraint when necessary, of prisoners or inmates within a prison, jail, or other criminal detention facility, while on work detail outside the facility, or while being transported and, in performing such duties, may be exposed to body fluids. 13 (e) "Occupational exposure," in the case of hepatitis, meningococcal meningitis, or tuberculosis, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection. (2) Presumption. Any emergency rescue or public safety Member who suffers a condition or impairment of health that is caused by hepatitis, meningococcal meningitis, or tuberculosis, that requires medical treatment, and that results in total or partial disability or death shall be presumed to have a disability suffered in the line of duty, unless the contrary is shown by competent evidence; however, in order to be entitled to the presumption, the Member must, bywritten affidavit as provided in Section 92.50, Florida Statutes, verify by written declaration that, to the best of his knowledge and belief: (a) In the case of a medical condition caused by or derived from hepatitis, he has not: Been exposed, through transfer of bodily fluids, to any person known to have sickness or medical conditions derived from hepatitis, outside the scope of his employment; Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with his present employment, or received any blood products forthe treatment of a coagulation disor- der since last undergoing medical tests for hepatitis, which tests failed to indicate the presence of hepatitis; iii. Engaged in unsafe sexual practices or other high-risk behavior, as identified by the Centers for Disease Control or the Surgeon General of the United States or had sexual relations with a person known to him to have engaged in such unsafe sexual practices or other high-risk behavior; or iv. Used intravenous drugs not prescribed by a physician. (b) In the case of ineningococcal meningitis, in the ten (10) days immediately preceding diagnosis he was not exposed, outside the scope of his employment, to any person known to have meningococcal meningitis or known to be an asymptomatic carrier of the disease. (c) In the case of tuberculosis, in the period of time since the Member's last negative tuberculosis skin test, he has not been exposed, outside the scope of his employment, to any person known by him to have tuberculosis. (3) Immunization. Whenever any standard, medically recognized vaccine or other form of immunization or prophylaxis exists for the prevention of a communicable disease for which a presumption is granted under this section, if inedically indicated in the given circumstances pursuant to immunization policies established by the Advisory Committee on Immunization Practices of the U.S. Public Health Service, an emergency rescue or public safety Member may be required by the £�q County to undergo the immunization or prophylaxis unless the Member's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the Member's health. Absent such written declaration, failure or refusal by an emergency rescue or public safety Member to undergo such immunization or prophylaxis disqualifies the Member from the benefits of the presumption. 14 (4) Record of Exposures. The City and County shall maintain a record of any known or reasonably suspected exposure of an emergency rescue or public safety Member in its employ to the disease described in this section and shall immediately notify the Member of such exposure. An emergency rescue or public safety Member shall file an incident or accident report with the C�q County of each instance of known or suspected occupational exposure to hepatitis infection, meningococcal meningitis, or tuberculosis. (5) Required medical tests; preemployment physical. In order to be entitled to the presumption provided by this section: (a) An emergency rescue or public safety Member must, prior to diagnosis, have undergone standard, medically acceptable tests for evidence of the communicable disease for which the presumption is sought, or evidence of inedical conditions derived therefrom, which tests fail to indicate the presence of infection. This paragraph does not apply in the case of meningococcal meningitis. (b) On or after June 15, 1995, an emergency rescue or public safety Member may be required to undergo a preemployment physical examination that tests for and fails to reveal any evidence of hepatitis or tuberculosis. C. Firefiahter Cancer Presumption. The presumption provided for in this paragraph C. shall apply only to "cancer", as defined in F.S. § 112.1816(1)(a), as amended from time to time. Any Member who becomes totally and permanently unable to perform useful and efficient service as a Firefighter due to a diagnosis of cancer or circumstances that arise out of the treatment of cancer will be conclusively presumed to be disabled in-line of duty. 3. Disabilitv Benefits Not-in-Line of D Any Member with five (5) or more years of Credited Service who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a Firefighter, which disability is not directly caused by the perFormance of his duties as a Firefighter shall, upon establishing the same to the satisfaction of the Board, be entitled to a monthly pension equal to the greater of (i) or (ii) where (i) is two percent (2%) of Average Final Compensation multiplied by the total years of Credited Service and (ii) is a benefit determined in the same manner as for early retirement as set forth in Section 6, subsection 4B, providing for an actuarial reduction. In any event, the minimum amount paid to the Member shall be twenty-five percent (25%) of his Average Final Compensation. Eligibility requirements for disability benefits are set forth in subsection 8., below. 4. Conditions Disqualifyinq 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 narcotics. B. Injury or disease sustained while willfully and illegally participating in fights, riots or civil insurrections or while committing a crime. C. Injury or disease sustained while serving in any branch of the Armed Forces. D. Injury or disease sustained by the Member after his employment as a Firefighter with the ' County shall have terminated. 5. 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 15 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 Firefighter, the Board shall recommend to the £� County that the Retiree be returned to performance of duty as a Firefighter, 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 £� County as a Firefighter, his service will be deemed to have been continuous, but the period beginning with the first month for which Member received a disability retirement payment and ending with the date he reentered the service of the C�' p County will not be considered as Credited Service for the purposes of this System. The Board shall have the power and authority to make the final decisions regarding all disability claims. 6. 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. 7. Benefit Offsets. 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. Notwithstanding the foregoing, in no event shall the disability pension benefit be reduced below the greater of forty-two percent (42%) of Average Final Compensation or two and three quarters percent (2.75%) of Average Final Compensation times years of Credited Service. 8. Eliqibility for Disability Benefits. Subject to 8.(4) below, only active Members of the System on the date the Board determines entitlement to a disability benefit are eligible for disability benefits. 16 (1) Terminated persons, either vested or non-vested, are not eligible for disability benefits. (2) If a Member voluntarily terminates his employment, either before or after filing an application for disability benefits, he is not eligible for disability benefits. (3) If a Member is terminated by the £�q County for any reason other than for medical reasons, either before or after he files an application for disability benefits, he is not eligible for disability benefits. (4) The only exception to (1) above is: a. If the Member is terminated by the � County for medical reasons and he has already applied for disability benefits before the medical termination, or; b. If the Member is terminated by the � County for medical reasons and he applies within 30 days after the medical termination date. If either (4)a., or (4)b. above applies, the Member's application will be processed and fully considered by the Board. SECTION 9. VESTING. If a Member terminates his employment as a Firefighter, 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 ten (10) years Credited Service upon termina- tion, 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 ten (10) 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 Member's otherwise normal or early retirement date, determined based upon his actual years of Credited Service, 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 monthly amount, payable to the Retiree during the lifetime of the Retiree and following the death of the Retiree, one hundred percent (100%), seventy-five percent (75%), sixty-six and two-thirds percent (66 2/3%) or fifty percent (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 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 payable to the Retiree for his lifetime 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 com- mence and a reduced benefit thereafter in order to provide, to as `tl 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 thejoint pensioner (subsection 1.A. above) or Beneficiary (or Beneficiaries) to receive the benefit, if any, payable under the System in the event of Member's death, and will have the power to change such designation from time to time. Such designation will name a joint pensioner or one (1) or more primary Beneficiaries where applicable. A Member may change his Beneficiary at any time. If a Member has elected an option with a joint pensioner and the Member's retirement income benefits have commenced, the Member may thereafter change his designated Beneficiary at any time, but my only change his joint pensioner twice. Subject to the restriction in the previous sentence, a Member may substitute a new joint pensioner for a deceased joint pensioner. In the absence of proof of good health of the joint pensioner being replaced, the actuary will assume that the joint pensioner has deceased for purposes of calculating the new payment. 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 redetermined to take into account the age of the former joint pensioner, the new joint pensioner and the Retiree and to ensure that the benefit paid is the Actuarial Equivalent of the present value of the Retiree's then-current benefit at the time of the change. 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) orjoint 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. C. If both the Retiree 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 ' the Member's required beqinninq date, as provided under Section 16. 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 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 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. REPORTS TO DIVISION OF RETIREMENT. Each year and no later than March 15th, the Board shall file an Annual Report with the Division of Retirement containing the documents and information required by Section 175.261, Florida Statutes. `F'] SECTION 14. 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 in such a manner as to show the name, address, date of employment and date such employment is terminated. SECTION 15. MAXIMUM PENSION. 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 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: �►�i] (1) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particularform 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 particularform 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 underTreasury Regulation Section 1.417(e)-1(d)(2) (the mortalitytable specified in Revenue Ruling 2001-62 orany 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 particularform of benefit payable (computed using the applicable interest rate for the distribution under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-yearTreasury 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 21 to the Code Section 415(b)(1)(A) dollar limit under Code Section 415(d), and the regulations thereunder; but 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 Adiustments 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 or County shall apply as if the total benefits payable under all City or County 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 15, the retirement benefit payable with respect to a Member shall be deemed not to exceed the limit set forth in this subsection 8. of Section 15 if the benefits payable, with respect to such Member under this System and under all other qualified defined benefit pension plans to which the City or County contributes, do not exceed ten thousand dollars ($10,000) for the applicable limitation year or for any prior limitation year, and the City or County 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 and County, the limit under this subsection 8. of Section 15 shall be 22 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). 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 25 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 benefitforservice creditwhich 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. 23 Unless another definition of compensation that is permitted by Treasury Regulations Section 1.415(c)-2, or successor regulation, is specified by 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 2'/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 regularcompensation forservices during the employee's regularworking 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 (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. (3) 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). 24 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. 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 Compensa- tion. 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 16. MINIMUM DISTRIBUTION OF BENEFITS. 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 Beqinninq 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 . For a Member who attains aae seventv and one-half (70 '/21 prior to �anuary �i , zuzu, tne iviemqer s requirea qeginning aate is Hprii �i or the calendar year followinq the later of (i) the calendar year in which the Member attains aqe seventy and one-half (70 '/z) or (ii) the calendar year in which the Member terminates employment with the County. For a Member who attains aqe seventy and one-half (70'/2) on or after January 1, 2020, the Member's required beqinninq date is 25 April 1 of the calendar year followinq the later of (i) the calendar y in which the Member attains aqe seventy-two (72) or (ii) the calen vear in which the Member terminates emplovment with the Coun 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'/2, � aqe 72 for a Member who would have attained aqe 70'/2 after December 31, 2019) if later, as the surviving spouse elects. (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 Beqin. 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. 26 (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 less 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 Beqinninq 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 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. Desiqnated 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 17. MISCELLANEOUS PROVISIONS. 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 Retirees and 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. 27 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 public 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 or County contributions. 5. Prohibited Transactions. Effective as of January 1, 1989, a Board may not engage in a transaction prohibited by Code Section 503(b). 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. Vestinq. 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. 9. Compliance with Chapter 175, Florida Statutes. It is intended thatthe System will continue to qualifyforfunding underSection 175.101, Florida Statutes. Accordingly, unless otherwise required by law, any provision of the System which violates the requirements of Chapter 175, Florida Statutes, as amended from time to time, shall be superseded by and administered in accordance with the requirements of such chapter. 10. Missinq Benefit Recipients. The System shall follow the procedures outlined in the IRS Employee Plans Compliance Resolution System (EPCRS) Program and other applicable IRS guidance to locate any missing individuals to whom a full unreduced benefit payment is due and if, at the conclusion of such efforts, the individual cannot be located, the existing procedure of cancelling payments otherwise due (provided that, if the individual is later located, the benefits due shall be paid) will apply. : SECTION 18. 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 aftertaking 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, orotherwise, foreach Firefighterentitled 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 Firefighter's Accumulated Contributions to the Plan, with interest if provided by the Plan, less the value of any plan benefits previously paid to the Firefighter. 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, less return to the State of the State's contributions, provided that, if the excess is less than the total contributions made by the City and the State to date of termination of the Plan, such excess shall be divided proportionately to the total contributions made by the City and the State. E. The Board shall distribute, in accordance with subsection B., the amounts determined under subsection C. If, after twenty-four (24) months after the date the Plan terminated or the date the Board received written notice that the contributions thereunder were being permanently discontinued, the City or the Board of the Fund affected has not complied with all the provisions in this Section, the Florida Department of Management Services will effect the termination of the Fund in accordance with this Section. SECTION 19. DOMESTIC RELATIONS ORDERS; RETIREE DIRECTED PAYMENTS; EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY. Domestic Relations Orders. 29 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 or County, to pay the certified bargaining agent of the City or County, to make payments to insurance companies for insurance premiums as permitted by Chapter 175, Florida Statutes, and to make any payments for child support or alimony. 3. Exemption from Execution, Non-Assiqnability. 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 20. 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 orwho 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 21. FORFEITURE OF PENSION. 1. Any Member who is convicted of the following offenses committed prior to Retirement, orwhose 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. 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, 30 realizes or obtains or attempts to obtain a profit, gain, or advantage for himself orfor some other person through the use or attempted use of the power, rights, privileges, duties or position of his public office or employment position. 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 youngerthan 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 commis- sion 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 22. CONVICTION AND FORFEITURE; FALSE, MISLEADING OR FRAUDULENT STATEMENTS. 1. It is unlawful for a person to willfully and knowingly make, or cause to be made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit from the System. 2. A person who violates subsection 1 commits a misdemeanor of the first degree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes. 3. In addition to any applicable criminal penalty, upon conviction for a violation described in subsection 1, a Member or Beneficiary of the System may, in the discretion of the Board, be required to forFeit the right to receive any or all benefits to which the person would otherwise be entitled under the System. For purposes of this subsection, "conviction" means a determination of guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. SECTION 23. 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. 31 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 24. TRANSFERS WITHIN THE CITY. If a member of any of the City's three (3) retirement systems transfers to either of the other two (2) systems, he must choose one of the following procedures with regard to Credited Service accrued to date of transfer. 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 25. MILITARY SERVICE PRIOR TO EMPLOYMENT. The years or fractional parts of years that a Firefighter 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 Fire Department 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 forwhich 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 (1) 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 or eligibility for not-in-line of duty disability benefits. SECTION 26. DIRECTTRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS ELIMINATION OF MANDATORY DISTRIBUTIONS Rollover Distributions. A. General. This Section applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the System 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 (1) of a series of substantially equal periodic payments (not less frequently than 32 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 (10) 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 account described in section 408(a); to an individual retirement annuity described in section 408(b); 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 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. 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 rolloverthe distribution only to an individual retirement account or individual retirement annuity established forthe 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 orfrom an eligible plan under section 457(b) of the Code which is maintained by a state, political subdivision of a state, K�3 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 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 27. PRIOR FIRE SERVICE. Unless otherwise prohibited by law, and except as provided for in Section 1, the years or fractional parts of years that a Member previously served as a full-time Firefighter with the City during a period of previous employment and for which period Accumulated Contributions were withdrawn from the Fund, or the years and fractional parts of years that a member served as a Firefighter for any other municipal, county, state or special district fire department in the State of Florida 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 orfractional 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 (1) lump sum payment upon receipt of which Credited Service shall be given. 4. The maximum credit under this Section for service other than with the City of Okeechobee shall be five (5) years of Credited Service and shall count for all purposes, except vesting and eligibility for not-in-line of duty disability benefits. There shall be no maximum purchase of credit for prior service with the City of Okeechobee and such credit shall count for all purposes, including vesting. 5. In no event, however, may Credited Service be purchased pursuant to this Section for prior service with any other municipal, county or special district fire department, if such prior service forms or will form the basis of a retirement benefit or pension from a different employer's retirement system or plan as set forth in Section 15, subsection 12.B. SECTION 28. DEFERRED RETIREMENT OPTION PLAN. Definitions. As used in this Section 28, the following definitions apply:" A. "DROP" -- The City of Okeechobee Firefighters' 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. 34 2. Participation. A. Eliqibility to Participate. In lieu of terminating his employment as a Firefighter, any Member who is eligible for normal retirement under the System may elect to defer receipt of such service retirement pension and to participate in the DROP. B. Election to Participate. A Member's election to participate in the DROP must be made in writing in a time and manner determined by the Board and shall be effective on the first day of the first calendar month which is at least fifteen (15) business days after it is received by the Board. C. Period of Participation. A Member who elects to participate in the DROP under subsection 2.B., shall participate in the DROP for a period not to exceed sixty (60) months beginning at the time his election to participate in the DROP first becomes effective. An election to participate in the DROP shall constitute an irrevocable election to resign from the service of the £�q County not later than the date provided for in the previous sentence. A Member may participate only once. D. Termination of Participation. (1) A Member's participation in the DROP shall cease at the earlier of: (a) the end of his permissible period of participation in the DROP as determined under subsection 2.C.; or (b) termination of his employment as a Firefighter. (2) Upon the Member's termination of participation in the DROP, pursuant to subsection (a) above, all amounts provided for in subsection 3.B., including monthly benefits and investment earnings and losses or interest, shall cease to be transferred from the System to his DROP Account. Any amounts remaining in his DROP Account shall be paid to him in accordance with the provisions of subsection 4. when he terminates his employment as a Firefighter. (3) A Member who terminates his participation in the DROP under this subsection 2.D. shall not be permitted to again become a participant in the DROP. E. Effect of DROP Participation on the System. (1) A Member's Credited Service and his accrued benefit under the System shall be determined on the date his election to participate in the DROP first becomes effective. The Member shall not accrue any additional Credited Service or any additional benefits under the System (except for any supplemental benefit payable to DROP participants or any additional benefits provided under any cost-of-living adjustment for Retirees in the System) while he is a participant in the DROP. After a Member commences participation, he shall not be permitted to again contribute to the System nor shall he be eligible for disability or pre-retirement death benefits, except as provided for in Section 29, Reemployment After Retirement. (2) No amounts shall be paid to a Member from the System while the Member is a participant in the DROP. Unless otherwise specified in the System, if a Member's participation in the DROP is terminated other than by terminating his employment as a Firefighter, no amounts shall be paid to him from the System until he terminates his employment as a Firefighter. 35 Unless otherwise specified in the System, amounts transferred from the System to the Member's DROP Account shall be paid directly to the Member only on the termination of his employment as a Firefighter. 3. Funding. A. Establishment of DROP Account. A DROP Account shall be established for each Member participating in the DROP. A Member's DROP Account shall consist of amounts transferred to the DROP under subsection 3.B., and earnings or interest on those amounts. B. Transfers From Retirement System. (1) As of the first day of each month of a Member's period of participation in the DROP, the monthly retirement benefit he would have received under the System had he terminated his employment as a Firefighter and elected to receive monthly benefit payments thereunder shall be transferred to his DROP Account, except as otherwise provided for in subsection 2.D.(2). A Member's period of participation in the DROP shall be determined in accordance with the provisions of subsections 2.C. and 2.D., but in no event shall it continue past the date he terminates his employment as a Firefighter. (2) Except as otherwise provided in subsection 2.D.(2), a Member's DROP Account under this subsection 3.B. shall be debited or credited with either: (a) Interest at an effective rate of six and one-half percent (6.5%) perannum compounded monthlydetermined on the last business day of the prior month's ending balance and credited to the Member's DROP Account as of such date (to be applicable to all current and future DROP participants); or (b) Earnings, to be credited or debited to the Member's DROP Account, determined as of the last business day of each fiscal year quarter and debited or credited as of such date, determined as follows: The average daily balance in a Member's DROP Account shall be credited or debited at a rate equal to the net investment return realized by the System for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which the Member's DROP Account is invested by the Board net of brokerage commissions, transaction costs and management fees. For purposes of calculating earnings on a Member's DROP Account pursuant to this subsection 3.B.(2)(b), brokerage commissions, transaction costs, and management fees shall be determined for each quarter by the investment consultant pursuant to contracts with fund managers as reported in the custodial statement. The investment consultant shall report these quarterly contractual fees to the Board. The investment consultant shall also report the net investment return for each manager and the net investment return for the total plan assets. 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. 36 (3) A Member's DROP Account shall only be credited or debited with earnings or interest and monthly benefits while the Member is a participant in the DROP. A Member's final DROP account value for distribution to the Member upon termination of participation in the DROP shall be the value of the account at the end of the quarter immediately preceding termination of participation for participants electing the net plan return and at the end of the month immediately preceding termination of participation for participants electing the flat interest rate return, plus any monthly periodic additions made to the DROP account subsequent to the end of the previous quarter or month, as applicable, and prior to distribution. If a Member fails to terminate employment after participating in the DROP for the permissible period of DROP participation, then beginning with the Member's 1 st 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 ' County, 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 ' County after the permissible period of DROP participation will not be eligible for pre-retirement death and disability benefits, and will accrue additional Credited Service, only as provided for in Section 29. 4. Distribution of DROP Accounts on Termination of Emplovment. A. Eliqibility for Benefits. A Member shall receive the balance in his DROP Account in accordance with the provisions of this subsection 4. upon his termination of employment as a Firefighter. Except as provided in subsection 4.E., no amounts shall be paid to a Member from the DROP prior to his termination of employment as a Firefighter. B. Form of Distribution. (1) Unless the Member elects otherwise, distribution of his DROP Account shall be made in a lump sum, subject to the direct rollover provisions set forth in subsection 4.F. Elections under this paragraph shall be in writing and shall be made in such time or manner as the Board shall determine. (2) If a Member dies before his benefit is paid, his DROP Account shall be paid to his Beneficiary in such optional form as his Beneficiary may select. If no Beneficiary designation is made, the DROP Account shall be distributed to the Member's estate. C. Date of Pavment 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. D. Proof of Death and Riqht 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. 37 E F 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. Direct Rollover of Certain Distributions. This subsection applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the DROP to the contrary, a distributee may elect to have any portion of an eligible rollover distribution paid in a direct rollover as otherwise provided under the System in Section 26. 5. Administration of DROP. A. Board Administers the DROP. � C �7 The general administration ofthe DROP, the responsibilityforcarrying out the provisions of the DROP and the responsibility of overseeing the investment of the DROP's assets shall be placed in the Board. The members of the Board may appoint from their number such subcommittees with such powers as they shall determine; may adopt such administrative procedures and regulations as they deem desirable for the conduct of their affairs; may authorize one or more of their number or any agent to execute or deliver any instrument or make any payment on their behalf; may retain counsel, employ agents and provide for such clerical, accounting, actuarial and consulting services as they may require in carrying out the provisions of the DROP; and may allocate among themselves or delegate to other persons all or such portion of their duties under the DROP, other than those granted to them as Trustee under any trust agreement adopted for use in implementing the DROP, as they, in their sole discretion, shall decide. A Trustee shall not vote on any question relating exclusively to himself. 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. 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. Limitation of Liability. (1) The Trustees shall behalf of any other made in good faith ii DROP. not incur any liability individually or on individuals for any act or failure to act, relation to the DROP or the funds of the : (2) Neither the Board nor any Trustee of the Board shall be responsible for any reports furnished by any expert retained or employed by the Board, but they shall be entitled to rely thereon as well as on certificates furnished by an accountant or an actuary, and on all opinions of counsel. The Board shall be fully protected with respect to any action taken or suffered by it in good faith in reliance upon such expert, accountant, actuary or counsel, and all actions taken or suffered in such reliance shall be conclusive upon any person with any interest in the DROP. 6. General Provisions. A. The DROP is not a separate retirement plan. Instead, it is a program under which a Member who is eligible for normal retirement under the System may elect to accrue future retirement benefits in the manner provided in this Section 28 for the remainder of his employment, rather than in the normal manner provided under the plan. Upon termination of employment, a Member is entitled to a lump sum distribution of his or her DROP Account balance or may elect a rollover. The DROP Account distribution is in addition to the Member's monthly benefit. B. Notional account. The DROP Account established for such a Member is a notional account, used only for the purpose of calculation of the DROP distribution amount. It is not a separate account in the System. There is no change in the 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. 39 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. Written Elections, Notification. (1) Any elections, notifications or designations made by a Member pursuant to the provisions of the DROP shall be made in writing and filed with the Board in a 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 isjustified 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. 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 County 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. J. 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. K. 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. L. Effect of DROP Participation on Employment. Participation in the DROP is not a guarantee of employment and DROP participants shall be subject to the same employment standards and policies that are applicable to employees who are not DROP participants. .� SECTION 29. REEMPLOYMENT AFTER RETIREMENT. 1. Any retiree under this system may be reemployed by any public or private employer and may receive compensation from that employment without limiting or restricting in any way the retirement benefits payable under this System. Notwithstanding the previous sentence, 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 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 reemployment, continue receipt of benefits for the period of any subsequent employment period. � 3. 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. , , , ---- --- - - - � - --- -- -------- -- -- -- - -- --- -- - ----- .- - .. - - - ..- . .- . -. -. - . - . - , - - - -- - -- -- - -- - -- -- - ;-, -- - ----- ;--- ---;.- ; --, -.;--;.-- -.. . . . .. - - ---- - ---- -- -- --- -- ----- --- -- ---- --- - - - • - --- -- - ... - .- .. .- .. -. ... - .- - .. - - - ..- ;--;---- ;- ;;--; ;- . :- -- -.;--;.-- ---; ;.---- ;- ;; --; -; -; - -- -- ; -- :: - : -.:--:.=- = =---- -- --;.- ; -- ;-- - : : -:: . :--= 5 4. After Disability Retirement. A. Subject to paragraph B. below, any Retiree who is retired under Section 8., Disability ("disability retiree"), may, subject to subsection 5., Physical Examination Requirement, of that section, be reemployed by any public or private employer, and may receive compensation from that employment without limiting or restricting in any way, the retirement benefits payable under this system. B. Any disability Retiree who subsequently becomes an employee of the City in any capacity, except as a Firefighter, shall discontinue receipt of disability benefits from the system for the period of any such employment. 41 ,-- -; --- -- --- --- -- -- - -- --- - -- - -- -- . . - ... . -. -. - - .-. .. . - .. -..- ---; ;.---- ;- ;; --- ;- .--; - -;--:. -: : ---;-; ;--- ---:.- - :. :: - ; -- --------- =--= ;.---- ;- ;; - -- ;--= ---;.- --- :- :::-: : -- ;--- , '. 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. C. +# A disability Retiree is shall not be reemployed as a Firefighter for the Citv. ' . G 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. � 6. DROP Participants. Retirees who 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 30. SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL BENEFITS; CHAPTER 175 SHARE ACCOUNTS. There is hereby established an additional plan component to provide special benefits in the form of a supplemental retirement, termination, death and disability benefits to be in addition to the benefits provided for in the previous Sections of this plan, such benefit to be funded solely and entirely by Chapter 175, Florida Statutes, premium tax monies for each plan year which are allocated to this supplemental component as provided for in Section 175.351, Florida Statutes. Amounts allocated to this supplemental component ("Share Plan"), if any, shall be further allocated to the Members and DROP participants as follows: Individual Member Share Accounts. The Board shall create individual "Member Share Accounts" for all actively employed plan Members and DROP participants and maintain appropriate books and records showing the respective interest of each Member or DROP participant hereunder. Each Member or DROP participant shall have a Member Share Account for his share of the Chapter 175, Florida Statutes, tax revenues described above, forFeitures and income and expense adjustments relating thereto. The Board shall maintain separate Member Share Accounts, however, the maintenance of separate accounts is for accounting purposes only and a segregation of the assets of the trust fund to each account shall not be required or permitted. 2. Share Account Fundinq. A. Individual Member Share Accounts shall be established as of September 30, 2015 for all Members and DROP participants who were actively employed as of October 1, 2014. Individual Member Share Accounts shall be credited with an allocation as provided for in the following subsection 3. of any premium tax monies which have been allocated to the share plan for that Plan Year, beginning with the Plan Year ending September 30, 2015. B. , A�n � forFeitures as provided in subsection 4., shall be �I+ee�eF used as part of future allocations to the individual Member Share Accounts in accordance with the formula set forth in subsection � 3.A. 3. Allocation of Monies to Share Accounts. A. Allocation of Chapter 175 Contributions. (1) Effective as of September 30, 2015, the amount of any premium tax monies allocated to the share plan shall be allocated to individual Member Share Accounts as provided for in this subsection. Members retiring (or entering DROP) on or after October 1, 2014 and prior to September 30, 2015 shall receive an allocation. In addition, all premium tax monies allocated to the Share Plan in any subsequent Plan Year shall also be allocated as provided for in this subsection. Available premium tax monies shall be allocated to individual Member Share Accounts at the end of each Plan Year on September 30 (a "valuation date"). 42 (2) On each valuation date, each current actively employed Member of the plan not participating in the DROP, each DROP participant and each Retiree who retires or DROP participant who has terminated DROP participation in the Plan Year ending on the valuation date (including each disability retiree), or Beneficiary of a deceased Member (not including terminated vested persons) who is otherwise eligible for an allocation as of the valuation date shall receive a share allocation as follows: (3) The total funds subject to allocation on each valuation date shall be allocated to each Member Share Account of those eligible for an allocation in an amount equal to a fraction of the total amount, the numerator of which shall be the individual's total years and fractional parts of years of Credited Service as of the valuation date, and the denominator of which shall be the sum of the total years and fractional parts of years of Credited Service as of the valuation date of all individuals to whom allocations are being made. Beneficiaries shall receive an allocation based on the years of Credited Service of the deceased Member or DROP participant. � -- -- ---- - -- --- --- -- ------- -- ---- - --- --- - - - ...-. - -- .- .-- -. - - ...-- . --- --- - -- - ;-- ;- ;;--; -; - ;- -- -; -; - -- - -- ----; ;.---- :- :: B. Allocation of Investment Gains and Losses. On each valuation date, each individual Member Share Account shall be adjusted to reflect the net earnings or losses resulting from investments during the year. The net earnings or losses allocated to the individual Member Share Accounts shall be the same percentage which is earned or lost by the total plan investments, including realized and unrealized gains or losses, net of brokerage commissions, transaction costs and management fees. Net earnings or losses are determined as of the last business day of the fiscal year, which is the valuation date, and are debited or credited as of such date. For purposes of calculating net earnings or losses on a Member's share account pursuant to this subsection, brokerage commissions, transaction costs, and management fees for the immediately preceding fiscal year shall be determined for each year by the investment consultant pursuant to contracts with fund managers as reported in the custodial statement. The investment consultant shall report these annual contractual fees to the Board. The investment consultant shall also report the net investment return for each manager and the net investment return for the total plan assets. C. No Riqht to Allocation. The fact of allocation or credit of an allocation to a Member's Share Account by the Board shall not vest in any Member, any right, title, or interest in the assets of the trust or in the Chapter 175, Florida Statutes, tax revenues except at the time or times, to the extent, and subject to the terms and conditions provided in this Section. D. Members and DROP participant shall be provided annual statements setting forth their share account balance as of the end of the Plan Year. 4. ForFeitures. Any Member who has less than ten (10) years of Credited Service and who is not otherwise eligible for payment of benefits after termination of employment with the C�q County as provided for in subsection 5. shall forFeit his individual Member Share Account - . Forfeited amounts shall be e#i�� included and used as part of the Chapter 175 tax revenues for future allocations to individual Member Share Accounts on each valuation date ' in accordance with the formula set forth in subsection 3.A. 43 5. Eliqibility For Benefits. Any Member (or his Beneficiary) or DROP participant who terminates employment as a Firefighter ' or who dies, upon application filed with the Board, shall be entitled to be paid the value of his individual Member Share Account, subject to the following criteria: A. Retirement Benefit. (1) A Member shall be entitled to one hundred percent (100%) of the value of his share account upon normal or early Retirement pursuant to Section 6, or if the Member enters the DROP, upon termination of employment. (2) Such payment shall be made as provided in subsection 6. B. Termination Benefit. (1) In the event that a Member's employment as a Firefighter is terminated by reason other than retirement, death or disability, he shall be entitled to receive the value of his share account only if he is vested in accordance with Section 9. (2) Such payment shall be made as provided in subsection 6. C. Disability Benefit. (1) In the event that a Member is determined to be eligible for either an in-line of duty disability benefit pursuant to Section 8, subsection 1. or a not-in-line of duty disability benefit pursuant to Section 8, subsection 3., he shall be entitled to one hundred percent (100%) of the value of his share account. (2) Such payment shall be made as provided in subsection 6. D. Death Benefit. (1) In the event that a Member or DROP participant dies while actively employed as a Firefighter, one hundred percent (100%) of the value of his Member Share Account shall be paid to his designated Beneficiary as provided in Section 7. (2) Such payment shall be made as provided in subsection 6. 6. Payment of Benefits. If a Member or DROP participant terminates employment for any reason or dies and he or his Beneficiary is otherwise entitled to receive the balance in the Member's share account, the Member's share account shall be valued by the plan's actuary on the next valuation date as provided for in subsection 3. above, following termination of employment. Payment of the calculated share account balance shall be payable as soon as administratively practicable following the valuation date, but not later than one hundred fifty (150) days following the valuation date and shall be paid in one lump sum payment. No optional forms of payments shall be permitted. 7. Benefits Not Guaranteed. All benefits payable under this Section 30 shall be paid only from the assets accounted for in individual Member Share Accounts. Neither the City, nor County nor the Board shall have any duty or liability to furnish any additional funds, securities or other assets to fund share account benefits. Neither the Board nor any Trustee shall be liable for the making, retention, or sale of any investment or reinvestment made as herein provided, nor for any loss or diminishment of the Member Share Account balances, except due to his or its own negligence, willful misconduct or lack of good faith. All investments shall be made by the Board subject to the restrictions otherwise applicable to fund investments. .. 8. Notional Account. The Member Share Account is a notional account, used only for the purpose of calculation of the share distribution amount. It is not a separate account in the System. There is no change in the System's assets, and there is no distribution available to the Member or DROP participant until the Member's or DROP participant's termination from employment. The Member or DROP participant has no control over the investment of the share account. 9. No Employer Discretion. The share account benefit is determined pursuant to a specific formula which does not involve employer discretion. 10. Maximum Additions. Notwithstanding any other provision of this Section, annual additions under this Section shall not exceed the limitations of Section 415(c) of the Code pursuant to the provisions of Section 15, subsection 11. 11. IRC Limit. The share account distribution, along with other benefits payable from the System, is subject to limitation under Internal Revenue Code Section 415(b). SECTION 31. MERGER WITH COUNTY FIRE SERVICE. Pursuant to an inter-local aqreement with Okeechobee County, the Okeechobee Fire Department will merge with the County Fire Service on Auqust 2, 2021. Pursuant to that aqreement and notwithstandinq any other provision herein to the contrary, the followinq transitional rules shall apply to Firefiqhters who have elected to remain Members of this System subsequent to the merqer. � For all Members who elect Municipal Firefiahters' Pension Fund. the the Okeechobee employed by the System, and as otherwise provided for by State law, or an amount equal to that which the County would have paid to the Florida Retirement System had such Firefiqhters been enrolled in that system. The City aqrees to fund the City of Okeechobee Municipal Firefiqhters' Pension Fund on Auqust 2, 2021, to the level required to make the Fund actuarially sound as of August 2, 2021, and to make appropriate payment(s) in the future, as lonq as there are participants, in order to maintain the actuarial soundness of Fund should the County's required contribution pursuant to the Interlocal Aqreement, be sufficient to meet the requirement for actuarial soundness. The aforementioi �� not required annual contribution will be based on the level of benefits on Auqust 2, 2021, or the level of benefit in a subsequent year, whichever is less. Nothinq herein shall prevent the termination of the Okeechobee Municipal Firefighters' Pension Fund, as allowed by Florida Statutes, as amended. If the Florida Retirement System increases benefits provided to special risk members of that system, the City and County agree to review this Section. � The required contribution of both Member contributions and the County contributions shall be transferred by the County to the City by wire on the same day payroll is paid. The City aqrees to transfer to the System by wire or otherwise deposit the funds received from the County within one business day from the day it is received from the County• � The Board of Trustees shall remain responsible for administration of the System and the City shall continue to have the authority to make plan amendments and improvements. The System shall be responsible to make pension benefits payable to all current and future Retirees from the System, includinq Firefiqhters who have opted to remain in the System. � Any Firefiqhter electinq to remain in the System may continue membership in the System until Retirement and upon termination of employment and Retirement from the System shall be allowed to be reemployed by the County and shall become a member of the County retirement proqram in the same manner as a new County employee. � In the event a Firefiqhter has opted to join the County retirement proqram and has less than ten (10) vears of Credited Service in the Svstem, the Firefiqhter shall receive e 45 a refund of his Accumulated Contributions from the System upon completion of the necessary forms. � In the event a Firefiqhter has opted to join the County retirement proqram and has ten (10) or more years of Credited Service in the System, the Firefighter may either receive a deferred early retirement benefit or a refund of his Accumulated Contributions from the System. If the Firefiqhter has opted to retire from the System, the Firefiqhter will then be eliqible to join the County retirement system in the same manner as all other new County employees. dm/OK/FIRE/04-12-21.ord.rev 06-11-21 .�