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1239 Amend General Employees' Pension PlanORDINANCE NO. 1239 AN ORDINANCE OF THE CITY OF OKEECHOBEE FURTHER AMENDING THE CITY OF OKEECHOBEE GENERAL EMPLOYEES' RETIREMENT SYSTEM, RESTATED PURSUANT TO ORDINANCE 1141; AMENDING SECTION 6, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 10, OPTIONAL FORMS OF BENEFITS; AMENDING SECTION 15, MINIMUM DISTRIBUTION OF BENEFITS; AMENDING SECTION 25, REEMPLOYMENT AFTER RETIREMENT; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Okeechobee General employees are presently provided pension and certain other benefits under Ordinances of the City of Okeechobee; and NOW THEREFORE, be it ordained before the City Council of the City of Okeechobee, Florida; presented at a duly advertised public meeting; and passed by majority vote of the City Council; and properly executed by the Mayor or designee, as Chief Presiding Officer for the City: SECTION 1: That the City of Okeechobee General Employees' Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 6, Benefit Amounts and Eligibility, subsection 5, Required Distribution Date, to read as follows: 5. Required Distribution Date. The Member's benefit under this Section must begin to be distributed to the Member no later than �^r;� 1..f +ho ,..,�o,,,� ,. 1 the Member's reauired beqinning date, as provided under Section 15. SECTION 2: That the City of Okeechobee General Employees' Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 10, Optional Forms of Benefits, subsection 5.E., to read as follows: 5.E. The Member's benefit under this Section must begin to be distributed to the Member no later than �^��� �^f +he n�lenr!-�r �.e-,r fr.11�,�..in.. +he 1+er nf r �r �. � v v f il n� � c n r� � r � ie.�. r i n {�i�s�-+crhrc�Y�CY�7� Cttt�St���S��Ctt� r'G7' ��FtAtt � u,;+h +ho �;+., the Member's reauired beqinninq date as provided under Section. 15. SECTION 3: That the City of Okeechobee General Employees' Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 15, Minimum Distribution of Benefits, subsection 2.A., and subsection 2.B.(1), to read as follows: 2.A. Required Beqinninq Date. The Member's entire interest will be distributed, or begin to be distributed, to the Member no later than the Member's req u i red beg i n n i ng date_ �b-is#�--s#a-El--�e�h��er-�#ar�^ p�ia 1 e#-Tlae 1 . For a Member who attains aqe seventv and one-half (70 'h) prior to January 1 2020 the Member's required beqinninq date is April 1 of the calendaryear following the later of (i) the calendar vear in which the Member attains aqe seventv and one-half (70 '/2) or (ii) the calendar vear in which the Member terminates emqlovment with the Citv. For a Member who attains aqe seventv and one-half (70 '/2) on or after January 1 2020 the Member's required Language stfisl�e� to be deleted Language underlined to be added Ordinance No. 1239, Page 1 of 3 beqinninq date is April 1 of the calendar year followinq the later of (i) the calendar vear in which the Member attains aqe seventy-two (72) or (ii) the calendar vear in which the Member terminates employment with the Cit rL 2.B.(1) If the Member's surviving spouse is the Member's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Member died, or by a date on or before December 31 of the calendar year in which the Member would have attained age 70 '/z or a e 72 for a Member who would have attained aqe 70 '/Z after December 31 2019), if later, as the surviving spouse elects. SECTION 4: That the City of Okeechobee General Employees' Retirement System, restated pursuant to Ordinance No. 1141, as amended, is hereby further amended by amending Section 25, Reemployment After Retirement, subsections 2., 3., and 4., to read as follows: 2. After Normal Retirement. Any Retiree who is retired under normal retirement pursuant to this System and who is reemployed as a General Employee after that Retirement and, by virtue of that reemployment, is eligible to participate in this System, shall upon being reemployed continue receipt of benefits if he is at least age �-�+„_fi�,^ ���� fifty-nine and one-half (59'/2), otherwise the System shall discontinue receipt of benefits until he reaches age c��+„_*��,^ ���� fiftv-nine and one-half (59'/2). Upon reemployment, the Retiree shall be deemed to be fully vested and the additional Credited Service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final Retirement. Calculations of benefits upon Retirement shall be based upon the benefit accrual rate, Average Final Compensation, and Credited Service as of that date (not including any period of DROP participation) and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, Average Final Compensation, and Credited Service as of the date of subsequent retirement (based only on the subsequent employment period). The amount of any death or disability benefit received as a result of a subsequent period of employment shall be reduced by the amount of accrued benefit eligible to be paid for a prior period of employment. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon subsequent retirement except as otherwise provided herein, but the Member may select a different optional form and joint pensioner applicable to the subsequent retirement benefit. 3. Any Retiree who is retired under normal retirement pursuant to this System and who is reemployed by the City after that Retirement and, by virtue of that reemployment is ineligible to participate in this System, shall, during the period of such reemployment, continue to receive retirement benefits previously earned if he is at least age �;���� fi��r-z�7 fifty-nine and one-half (59'/1, otherwise the System shall discontinue receipt of benefits until he reaches age �+��-fi•�^ ���� fiftv-nine and one-half (59'/z). Former DROP participants shall begin receipt of benefits under these circumstances. 4. After Early or Disability Retirement. Any Retiree who is retired under early or disability retirement pursuant to this System and who subsequently becomes an employee of the City in any capacity, shall discontinue receipt of benefits from the System until the earlier of termination of employment or such time as the reemployed Retiree reaches age �?���� fi��,,��� fiftv-nine and one-half (59'/). A Retiree who returns to work under the provisions of this Section shall not be eligible for membership in the System, and, therefore, shall not accumulate additional Credited Service for subsequent periods of employment described in this Section, shall not Language s#isl�e� to be deleted Language underlined to be added Ordinance No. 1239, Page 2 of 3 be required to make contributions to the System, nor shall he be eligible for any other benefit other than the Retiree's early retirement benefit when he again becomes eligible as provided herein. Retirement pursuant to an early retirement incentive program shall be deemed early retirement for purposes of this Section if the Member was permitted to retire prior to the customary retirement date provided for in the System at the time of retirement. SECTION 5: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Okeechobee. SECTION 6: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 7: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SECTION 8: That this Ordinance shall become effective upon adoption. INTRODUCED on first reading and set for public hearing this 7th day of September 2021. — ATT ST: , � � �' .:V!k! �; ��.�� ��1� �i�_.1_1��;� l� Lane amiotea, City Clerk ��% �� .�` �/ ,,/�- ��l ,�„/� �� / Dowling R. Wa�ffdrd, Jr., Mayor PASSED on second reading after public hearing this 27th day of September 2021. � iJ` � � i�,�, � �' � ;.- i Dowling R. Wa#ord, Jr., Mayor ATT,E�T: � � � ,�� ; � _ , , �' . � . .�,: � � �,` ;`;�� ; ��_��.� � � ;, _ ,,�;'�'� � ..�� .� , ��---= La�ne Gamiotea, CM�, City Clerk APPROVED FOR LE�AL SUFFICIENCY: � " ��''�- � / � . , ,� � ��- John J. Fumero, City Attorney Language s�isl�e� to be deleted Language underlined to be added Ordinance No. 1239, Page 3 of 3 � � � ���H," �..v �;��,�i� March 31, 2021 Ms. Kyle Tintle Resource Centers, LLC 4360 Northlake Bivd Suite 206 Palm Beach Gardens, Fforida 33410 F: 1:r1.=�?.7,lKz1G f�:9'.i4.a7.',i.()�P.3 i ��r�:.v:.��r�ccnst�Itin�Lqm Re: City of Okeechobee Genera{ Employees' Retirement System Actuarial impact Statement Dear Kyle: � ;�� � E_ � ,r` ';�� %•� � � `c �� � ��� c� � �'�u'�� � . ,?` .,�, � ( � � l�,ii As requested by Scott R. Christensen, Esq., we have performed an actuarial review of the proposed Ordinance (copy attached). Based upon our review, the proposed Ordinance: ➢ Amends the required beginning date in compliance with the Setting Every Community Up for Retirement Enhancement ("SECURE") Act ➢ Amends reemployment after retirement to compiy with the Internal Revenue Code (IRC). � Provides for codification. ➢ Repeals all Ordinances or parts of Ordinances in conflict herewith. ➢ Provides for severability. � Provides for an effective date. In our opinion, based upon the actuarial assumptions and methods employed in the October 1, 2020 Actuarial Valuation, the proposed Ordinance is a no cost Ordinance under our understanding of State minimum funding requirements. Please provide a signed copy of the Ordinance upon adoption for our records. If you should have any question concerning the above, please do not hesitate to contact us. Sincerest regards, ! , G�;�.L(/�C _ � 5helly L. Jones, A.S.A. � � ��C� �`''�� "-~� �M`�, Consultant and Actuary ` � �`� :; ; � .�.. �.:_,��.� : Enclosure L1 `' � �. �'1 "�'l a'�..,, ;;,;: , f � .� ,.,,.. cc: Scott R. Christensen, Esq. �� �i r�h v' s 0