2024-01-02 VI. A. Ord No. 1284, 1st Reading, Exhibit 3 • • Exhibit 3
01/02/2024
ORDINANCE NO. 1284
AN ORDINANCE OF THE CITY OF OKEECHOBEE FURTHER AMENDING THE CITY OF
OKEECHOBEE GENERAL EMPLOYEES' RETIREMENT SYSTEM, RESTATED
PURSUANT TO ORDINANCE 1141; AMENDING SECTION 10, OPTIONAL FORMS OF
BENEFITS; PROVIDING FOR CONFLICT; PROVIDING FOR CODIFICATION;
PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS,the City of Okeechobee, Florida, General Employees are presently provided pension and certain
other benefits under the Ordinances of the City of Okeechobee, Florida; and
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; and
WHEREAS, the Board of Trustees of the City of Okeechobee General Employees' Retirement System has
requested an addition to the Plan's Optional Forms of Benefits provision in the event a designated
survivor annuitant pre-deceases the Plan participant; and
WHEREAS, an amendment to the Plan Summary is necessary to permit such new conditions; and
WHEREAS, the Board of Trustees of the City of Okeechobee General Employees' Retirement System have
requested and approved such an amendment as being in the best interests of the participants and
beneficiaries and improves the administration of the Plan; and
WHEREAS, an actuarial impact statement has been conducted describing the actuarial impact of the
amendment provided herein; and
WHEREAS, for the purposes of this Ordinance, underlined type shall denote additions to and strike through
shall denote deletions from the original text.
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: that
SECTION 1: The foregoing "whereas" clauses are incorporated herein as legislative findings by this
reference and made a part hereof for all intents and purposes.
SECTION 2: That the City of Okeechobee General Employees' Retirement System, restated
pursuant to Ordinance No. 1141, is hereby further amended by amending Section 10, Optional Forms
of Benefits, subsection 10.1 by adding an additional optional form of benefit as sub-subsection E.,
Joint and Survivor with pop-up option, as follows:
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:
E. Joint and Survivor with pop-up option: A retirement income of a modified monthly amount,
payable to the Member during the lifetime of the Member and following the death of the
Member, 100 percent, 75 percent, 66-2/3 percent, or 50 percent of such monthly amount
payable to a joint pensioner for his lifetime. Should the joint pensioner pre-decease the
participant after the participant's benefit payments have commenced, then the participant's
benefit shall revert to the straight-life annuity retirement benefit as of the date of death of
the joint pensioner.
SECTION 3: That the City of Okeechobee General Employees' Retirement System, restated
pursuant to Ordinance No. 1141, is hereby further amended by amending Section 10, Optional Forms
of Benefits, Subsection 2 as follows:
Ordinance No. 1284, Page 1 of 3
If applicable,language to be added is underlined.
If applicable,language to be deleted is skask through
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2. The Member, upon electing any option of this Section, will designate the joint pensioner
(subsection 1. A. or subsection 1.E. 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 or more primary Beneficiaries where applicable. If a Member has elected an option with a
joint pensioner or Beneficiary and the Member's retirement income benefits have commenced,
the Member may thereafter change his designated Beneficiary at any time, but may only change
his joint pensioner only if the designated joint pensioner and the Member were married at the
time of Member's retirement and are divorced subsequent thereto and the joint pensioner is alive
at the time of the change 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.
SECTION 4: That the City of Okeechobee General Employees' Retirement System, restated
pursuant to Ordinance No. 1141,is hereby further amended by amending Section 10, Optional Forms
of Benefits, Subsection 4 as follows:
Upon change of a Retiree's joint pensioner in accordance with this Section, the amount of he
retirement income payable to the Retiree shall be actuarially determined redetermined to take into
account the age and sex 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.
SECTION 5: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 6: Specific authority is hereby granted to codify and incorporate this Ordinance in the
existing City of Okeechobee General Employees Retirement System Plan Summary.
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 for First Reading and set for Final Public Hearing this 2nd day of January 2024. Roll Call
Vote:
Yes No Abstained Absent
Council Member Chandler:
Council MemberNice Mayor Clark:
Council Member Jarriel:
Council Member McAuley:
Mayor Watford:
Dowling R. Watford, Jr., Mayor
ATTEST:
Lane Gamiotea, City Clerk
PASSED AND ADOPTED after Second Reading and Final Public Hearing on the 6th day of February 2024.
Roll Call Vote:
Yes No Abstained Absent
Ordinance No. 1284, Page 2 of 3
If applicable,language to be added is underlined.
If applicable,language to be deleted is s4sa644-#weugh
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Council Member Chandler:
Council Member/Vice Mayor Clark:
Council Member Jarriel:
Council Member McAuley:
Mayor Watford:
Dowling R. Watford, Jr., Mayor
ATTEST:
Lane Gamiotea, City Clerk
APPROVED FOR LEGAL SUFFICIENCY:
John J. Fumero, City Attorney
Nason Yeager Gerson Harris & Fumero, P.A.
Ordinance No. 1284, Page 3 of 3
If applicable,language to be added is underlined.
If applicable,language to be deleted is
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Meeting May 1, 2023 Page 2 of 3
Mr. Hess recommended changing the Vanguard 500 Index Fund with a Fidelity Investment alternative to
lower the management fee by 2.5 bp. Assets remain in line with policy targets. The assets gained 4.13%
for the June 30`h quarter compared to 4.09% for the benchmark, in the top 20% fiscal year to date the
assets gained 15.88% compared to 16.24%for the benchmark. The 10n year returns of 7.16% average
annual gain ranks in the top 12%.
Melissa Henry made a motion to approve the substitution from Vanguard to Fidelity index fund. The
motion received a second from Donna Howard,approved by the Trustees 4-0.
Mr. Hess reviewed the individual holdings which all performed within expectations. This plan does not
hold a real estate fund, which hurt performance last year but helped the gains this year. He reviewed
the proposed updates to the Investment Policy Statement. House Bill 3 (HB3) required the Board to
consider only pecuniary factors when investing in the Retirement Systems assets, rather than any ESG
type considerations. The Board already considers only pecuniary factors so the proposed updates will
not have any practical impact on the management of the Retirement System assets. The Board must file
a new report by December 15. Investment managers retained by the Board must include a disclaimer
when offering opinions on ESG issues. Mr. Sugarman recommended that the Board update the
proposed changes.
Melissa Henry made a motion to adopt the revisions to the Investment Policy Statement to comply
with HB3. The motion received a second from Donna Howard,approved by the Trustees 4-0.
6. Attorney Report(Robert Sugarman)
Mr. Sugarman stated his office prepared an ordinance to allow members to choose a pop-up optional
form of benefit payments. The Police and Firefighters already have the option to change joint
annuitants as well.
Melissa Henry made a motion to authorize the Resource Center to obtain an actuarial impact
statement on the proposed ordinance and recommend the proposed ordinance to the City Council
once the actuarial impact statement is completed. The motion received a second from Donna
Howard,approved by the Trustees 5-0.
7. Administrator Report(Scott Baur)
Mr. Baur informed the Trustees of the registration for the FPPTA Fall Trustee School being open. Donna
Howard plans to attend the Winter Trustee School. Donna Howard and Melissa Henry are both in the
CPPT track. Donna Howard was reappointed for an additional 3-year term.
8. Financials
The Trustees reviewed, received, and filed the interim financial statements. The Warrant dated August
7, 2023.
Melissa Henry made a motion to approve the Warrant dated August 7, 2023, as presented. The
motion received a second from Donna Howard,approved by the Trustees 4-0.
9. Benefit Approvals
A new employee approval was presented for Patricia Hampshire.
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ki*G.,FR S P:954-527.3E>I6 F:95r7.525.0083 WY:Y:_grsconsvlttnh.carn
October 17, 2023
Ms. Kyle Tintle
Resource Centers, LLC
4360 Northlake Blvd
Suite 206
Palm Beach Gardens, Florida 33410
Re: City of Okeechobee General Employees' Retirement System
Actuarial Impact Statement
Dear Kyle:
As requested, we have performed an actuarial review of the proposed Ordinance(copy
attached).
Based upon our review, the proposed Ordinance:
Amends the Plan to include an actuarially equivalent joint and survivor with pop-up
optional form of payment
➢ Amends the Plan to allow members to change their joint pensioner up to two times and
allows the member to replace a deceased joint pensioner with the benefit recalculated to
reflect the joint pensioner death.
➢ 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,
2022 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,
Gabriel, Roeder,Smith &Company
77/24;.clut&
Shelly L.Jones,A.S.A.
Consultant and Actuary
Enclosure
cc: David Robinson, Esq.
One East Broward Boulevard I Suite 505 Ft. Lauderdale,Florida 33301-1804
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City of Okeechobee, Florida
Business Impact Estimate
Pursuant to §166.041 , Florida Statutes
Proposed ordinance's reference and title: Ordinance No. 1284
AN ORDINANCE OF THE CITY OF OKEECHOBEE FURTHER AMENDING THE CITY OF
OKEECHOBEE GENERAL EMPLOYEES' RETIREMENT SYSTEM, RESTATED
PURSUANT TO ORDINANCE 1141; AMENDING SECTION 10, OPTIONAL FORMS OF
BENEFITS; PROVIDING FOR CONFLICT; PROVIDING FOR CODIFICATION; PROVIDING
FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE.
This Business Impact Estimate is provided in accordance with section 166.041(4), Florida Statutes. If one or
more boxes are checked below,this means the City is of the view that a business impact estimate is not required
by state law1 for the proposed ordinance, but the City is, nevertheless, providing this Business Impact Estimate
as a courtesy and to avoid any procedural issues that could impact the enactment of the proposed ordinance.
This Business Impact Estimate may be revised following its initial posting.
❑ The proposed ordinance is required for compliance with Federal or State law or regulation;
❑ The proposed ordinance relates to the issuance or refinancing of debt;
❑ The proposed ordinance relates to the adoption of budgets or budget amendments, including revenue
sources necessary to fund the budget;
❑ The proposed ordinance is required to implement a contract or an agreement, including, but not
limited to, any Federal, State, local, or private grant or other financial assistance accepted by the
municipal government;
❑ The proposed ordinance is an emergency ordinance;
❑ The ordinance relates to procurement; or
❑ The proposed ordinance is enacted to implement the following:
a. Part II of Chapter 163, Florida Statutes, relating to growth policy, county and municipal planning,
and land development regulation, including zoning, development orders, development
agreements and development permits;
b. Sections 190.005 and 190.046, Florida Statutes, regarding community development districts;
c. Section 553.73, Florida Statutes, relating to the Florida Building Code; or
d. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
In accordance with the provisions of controlling law,even notwithstanding the fact that an exemption noted above
may apply,the City hereby publishes the following information:
1. Summary of the proposed ordinance (must include a statement of the public purpose, such as serving
the public health, safety, morals, and welfare):
The ordinance amends the Plan Summary of the City of Okeechobee General Employees'
Retirement System so that in the event a designated survivor annuitant pre-deceases the Plan
participant,the Plan participant can designate a new survivor annuitant.
See Section 166.041(4)(c), Florida Statutes.
Page 1 of 2
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2. An estimate of the direct economic impact of the proposed ordinance on private,for-profit businesses
in the City, if any:
(a) An estimate of direct compliance costs that businesses may reasonably incur;
(b) Any new charge or fee imposed by the proposed ordinance or for which businesses will be
financially responsible; and
(c) An estimate of the City's regulatory costs, including estimated revenues from any new charges
or fees to cover such costs.
None.
3. Good faith estimate of the number of businesses likely to be impacted by the proposed ordinance:
None.
4. Additional information the governing body deems useful (if any):
The proposed ordinance applies to present and future retirees under the City's General
Employee Retirement System.
Page 2 of 2