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2023-05-01 Item 4.c.1_ Draft Ordinance to Merge Fire & Police PensionsORDINANCE NO. AN ORDINANCE OF THE CITY OF OKEECHOBEE PROVIDING FOR THE MERGER OF THE CITY OF OKEECHOBEE MUNICIPAL POLICE OFFICERS' PENSION TRUST FUND, CREATED PURSUANT TO ORDINANCE 888 AS SUBSEQUENTLY AMENDED, AND THE CITY OF OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND, CREATED PURSUANT TO ORDINANCE 889 AND AMENDED AND RESTATED PURSUANT TO ORDINANCE 1229; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Okeechobee established and maintains the City of Okeechobee Municipal Police Officers' Pension Trust Fund, created pursuant to Ordinance 888, as subsequently amended; and WHEREAS, the City of Okeechobee established and maintains the City of Okeechobee Municipal Firefighters' Pension Fund, created pursuant to Ordinance 889 and amended and restated pursuant to Ordinance 1229; and WHEREAS, to optimize the efficiency of, and minimize the costs related to, the administration of the above -referenced funds, the City Council desires to merge the funds into a single fund under the exclusive administration of a single board of trustees; and WHEREAS, the resulting fund shall exist for the sole purpose of providing retirement benefits to the participants of the merged funds, to their eligible beneficiaries, and to the future participants and beneficiaries of the resulting fund; and WHEREAS, the merger of the funds shall not result in the reduction of any accrued benefit of any participant of the merged funds; and WHEREAS, the State of Florida Department of Management Services, Division of Retirement, has approved the merger of the fundsl; and Comment [DR1]: This proposed ordinance should be presented to Division of Retirement prior WHEREAS, the City Council intends that the resulting fund be administered in to first reading. accordance with all applicable provisions of the Internal Revenue Code and of Florida Law, including but not limited to Chapters 175 and 185, Florida Statutes, 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 Ordinance No. 888, as subsequently amended, is hereby further amended by amending Section 1, Subsection 1 of the document made part of said Ordinance and otherwise amended herein, to modify the definitions of "Board," "Fund," and "System" and to add a definition, "Merger Date," to read respectively as follows: 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: Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as the trustees of the Fund, as provided in Section 3 hereof. Fund means the trust fund established herein as part of the System. Effective as of the Merger Date, Fund shall mean the fund resulting from the merger, as provided in Subsection 4.1 hereof. Merger Date means the date determined in accordance with Subsection 6 of Section 3 hereof. System means the City of Okeechobee Municipal Police Officers' Pension Trust Fund as contained herein and all amendments thereto. Effective as of the Merger Date, System means City of Okeechobee Municipal Police Officers' and Firefighters' Pension Trust Fund, as contained herein and all amendments hereto, and as contained in Ordinance 1229 and all amendments thereto. Section 2. That Ordinance No. 888, as subsequently amended, is hereby further amended by amending Section 3 of the document made part of said Ordinance and otherwise amended herein, to add a new Subsection 6, to read as follows: SECTION 3. BOARD OF TRUSTEES. 6. Merger Provisions A. As soon as administratively reasonable upon the effective date of the Ordinance adopting this Paragraph 6A, the responsible parties shall appoint and elect prospective trustees (excluding the fifth trustee) in accordance with the conditions set forth in Paragraph 6B below, who shall agree in writing to assume the duties of trustees as set forth herein as of a specified date. That date shall be the same for all four prospective trustees, and shall constitute the Merger Date. B. As of the Merger Date, this Paragraph 6B shall supersede Subsection 1 of this Section 3. 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, one (1) of whom shall be a full-time Police Officer Member of the System who shall be elected by a majority of the active Police Officers who are Members of the System, and one (1) of whom shall be a former full- time Firefighter Member of the System, who shall be elected by a majority of the former Firefighters who were Members of the System, except that if there is no former or retired Firefighter remaining in the System, or willing to serve, the former and retired Firefighters may elect an active or retired Police Officer to serve in the active Firefighter seat. When there are less than 10 former or retired Firefighters remaining to vote in such an election, the remaining former and retired firefighters and the active Police Officers shall elect an active full-time Police Officer to serve in what was formerly the Firefighter seat and that shall thereafter be a second Police Officer seat. Upon receipt of such person's name, the City Council 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 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 or she sooner vacates the office. Each resident Trustee shall serve as Trustee for a period of four (4) years, unless he or she sooner vacates the office or is sooner replaced by the Okeechobee City Council at whose pleasure he or she shall serve. Each Member Trustee shall serve as Trustee for a period of four (4) years, unless he or she sooner leaves the employment of the City as a Police Officer or otherwise vacates his or her office as Trustee, whereupon a successor shall be chosen in the same manner as the departing Trustee. Each Trustee may succeed himself or herself in office. Police DROP participants can be elected as but not vote for the elected Police Trustee. The Board shall establish and administer the nominating and election procedures for each election or delegate this task to the City if the city is so willing. 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. C. Effective as of the Merger Date, all references herein, except for historic references, to City of Okeechobee Municipal Police Officers' Pension Trust Fund, shall be read as City of Okeechobee Municipal Police Officers' and Firefighters' Pension Trust Fund. D. Effective as of the Merger Date, it is intended that the Board of Trustees possess identical powers with respect to the operation and administration, including the investment of System assets, of the System as it relates to Police Officers and Firefighters and assets derived from the participation of Police Officers and Firefighters, including premium tax funds under Chapters 175 and 185. It is further intended that, effective as of the Merger Date, this document shall apply to all questions relating to the participation, accrual of benefits, vesting, benefit eligibility, retirement, etc. of Police Officer Members in the System. Section 3. That Ordinance No. 888, as subsequently amended, is hereby further amended by amending Subsection 1 of Section 4, Finances and Fund Management, of the document made part of said Ordinance and otherwise amended herein, to read as follows: 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. Effective as of the Merger Date, the Fund is hereby merged with the fund known as the City of Okeechobee Municipal Firefighters' Pension Fund, created as set forth in Section 4.1 of the document made part of Ordinance 1229. The Fund, which shall thereafter mean the fund resulting from the merger, shall be known as City of Okeechobee Municipal Police Officers' and Firefighters' Pension Trust Fund. Section 4: That Ordinance No. 1229, as subsequently amended, is hereby further amended by amending Section 1, Subsection 1 of the document made part of said Ordinance and otherwise amended herein, to modify the definitions of "Board," "Fund," and "System" and to add a definition, "Merger Date," to read respectively as follows: 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: Board means the Board of Trustees, which shall administer and manage the System herein provided and serve as the trustees of the Fund, as provided in Section 3 hereof. Comment [DR2]: Check whether there has been any amendments Fund means the trust fund established herein as part of the System. Effective as of the Merger Date, Fund shall mean the fund resulting from the merger, as provided in Subsection 4.1 hereof. Merger Date means the date determined in accordance with Subsection 6 of Section 3 hereof. System means the City of Okeechobee Municipal Firefighters' Pension Fund as contained herein and all amendments thereto. Effective as of the Merger Date, System means City of Okeechobee Municipal Police Officers' and Firefighters' Pension Trust Fund, as contained herein and all amendments hereto, and as contained in Ordinance 888 and all amendments thereto. Section5. That Ordinance No. 1229, as subsequently amended, is hereby Comment [DR3]: Check ifany amendment further amended by amending Section 3 of the document made part of said Ordinance and otherwise amended herein, to add a new Subsection 6, to read as follows: SECTION 3. BOARD OF TRUSTEES. 6. Merger Provisions A. As soon as administratively reasonable upon the effective date of the Ordinance adopting this Paragraph 6A, the responsible parties shall appoint and elect prospective trustees (excluding the fifth trustee) in accordance with the conditions set forth in Paragraph 6B below, who shall agree in writing to assume the duties of trustees as set forth herein as of a specified date. That date shall be the same for all four prospective trustees, and shall constitute the Merger Date. B. As of the Merger Date, this Paragraph 6B shall supersede Subsection 1 of this Section 3. 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, one (1) of whom shall be a full-time Police Officer Member of the System who shall be elected by a majority of the active Police Officers who are Members of the System, and one (1) of whom shall be a former full- time Firefighter Member of the System, who shall be elected by a majority of the former Firefighters who were Members of the System, except that if there is no former or retired Firefighter remaining in the System, or willing to serve, the former and retired Firefighters may elect an active or retired Police Officer to serve in the active Firefighter seat. When there are less than 10 former or retired Firefighters remaining to vote in such an election, the remaining former and retired firefighters and the active Police Officers shall elect an active full-time Police Officer to serve in what was formerly the Firefighter seat and that shall thereafter be a second Police Officer seat. Upon receipt of such person's name, the City Council 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 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 or she sooner vacates the office. Each resident Trustee shall serve as Trustee for a period of four (4) years, unless he or she sooner vacates the office or is sooner replaced by the Okeechobee City Council at whose pleasure he or she shall serve. Each Member Trustee shall serve as Trustee for a period of four (4) years, unless he or she sooner leaves the employment of the City as a Police Officer or otherwise vacates his or her office as Trustee, whereupon a successor shall be chosen in the same manner as the departing Trustee. Each Trustee may succeed himself or herself in office. Police DROP participants can be elected as but not vote for the elected Police Trustee. The Board shall establish and administer the nominating and election procedures for each election or delegate this task to the City if the city is so willing. 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. C. Effective as of the Merger Date, all references herein, except for historic references, to City of Okeechobee Municipal Firefighters' Pension Fund, shall be read as City of Okeechobee Municipal Police Officers' and Firefighters' Pension Trust Fund. D. Effective as of the Merger Date, it is intended that the Board of Trustees possess identical powers with respect to the operation and administration, including the investment of System assets, of the System as it relates to Police Officers and Firefighters and assets derived from the participation of Police Officers and Firefighters, including premium tax funds under Chapters 175 and 185. It is further intended that, effective as of the Merger Date, this document shall apply to all questions relating to the participation, accrual of benefits, vesting, benefit eligibility, retirement, etc. of Firefighter Members in the System. Section 6. That Ordinance No. 1229, as subsequently amended, is hereby Comment [DR4]: check further amended by amending Subsection 1 of Section 4, Finances and Fund Management, of the document made part of said Ordinance and otherwise amended herein, to read as follows: SECTION 4. FINANCES AND FUND MANAGEMENT Establishment and Operation of Fund. 2. 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. Effective as of the Merger Date, the Fund is hereby merged with the fund known as the City of Okeechobee Municipal Police Officers' Pension Trust Fund, created as set forth in Section 4.1 of the document made part of Ordinance 888. The Fund, which shall thereafter mean the fund resulting from the merger, shall be known as City of Okeechobee Municipal Police Officers' and Firefighters' Pension Trust Fund. Section 7. That specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Okeechobee. Section 8. That all Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. Section 9. That 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 sections, subsections, sentences, clauses, or phrases under application shall not be affected thereby. Section 10. That this Ordinance shall become effective immediately upon adoptlon.l Comment [DR5]: language adopted immediately, implementation upon merger date as defined.