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
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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
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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
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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: ,
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Lane amiotea, City Clerk
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/ Dowling R. Wa�ffdrd, Jr., Mayor
PASSED on second reading after public hearing this 27th day of September 2021.
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Dowling R. Wa#ord, Jr., Mayor
ATT,E�T: � �
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La�ne Gamiotea, CM�, City Clerk
APPROVED FOR LE�AL SUFFICIENCY:
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/ � . , ,� � ��-
John J. Fumero, City Attorney
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Ordinance No. 1239, Page 3 of 3
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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:
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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 ` � �`� :; ; �
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Enclosure L1 `' � �. �'1 "�'l
a'�..,, ;;,;: , f � .� ,.,,..
cc: Scott R. Christensen, Esq. �� �i r�h v'
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