1286, Pension_Police & Fire Merge BOT_FF StipendORDINANCE NO. 1286
. AN ORDINANCE OF THE CITY OF OKEECHOBEE, FLORIDA,
PROVIDING FOR THE MERGER OF THE CITY OF
OKEECHOBEE MUNICIPAL POLICE OFFICERS' PENSION
TRUST FUND, CREATED PURSUANT TO ORDINANCE NO. 888
AS SUBSEQUENTLY AMENDED, AND THE CITY OF
OKEECHOBEE MUNICIPAL FIREFIGHTERS' PENSION FUND,
CREATED PURSUANT TO ORDINANCE NO. 889 AND
AMENDED AND RESTATED PURSUANT TO ORDINANCE NO.
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 No. 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 No. 889 and amended and
restated pursuant to Ordinance No. 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 City Council intends that the resulting Fund be administered in 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, and
WHEREAS, for the purposes of this Ordinance, double underlined type shall denote additions to and
stroke trr g4 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:
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 Ordinance No. 888, as subsequently amended, is hereby further amended
by amending subsection 1., of Section 1,, Definitions, 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 b the context, the following
g
words and phrases shall have the meaning indicated:
Ordinance No. 1286, Page 1 of 8
If applicable, language to be added is do ibl . underlined.
If applicable, language to be deleted is stcdsk-through
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 1 of Section 4. 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 Mercer
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 No. 1229 and all amendments thereto.
SECTION 3: That Ordinance No. 888, as subsequently amended, is hereby further amended
by amending Section 3., Board of Trustees, of the document made part of said Ordinance
and otherwise amended herein, to replace subsection 3., to read as follows:
SECTION 3. BOARD OF TRUSTEES.
3. Quorum and Voting A quorum shall consist of no fewer than three (3) Trustees. 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 as amended from time to time.
SECTION 4: That Ordinance No. 888, as subsequently amended, is hereby further amended
by amending Section 3., Board of Trustees. 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 6 A. the responsible parties shall appoint
and elect prospective Trustees (excluding the sixth Trustee) in accordance with
the conditions set forth in paragraph 6.B., 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 five prospective Trustees and shall constitute the
Merger Date.
B. As of the Merger Date this paragraph 6 B 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 six (6)
Ordinance No. 1286, Page 2 of 8
If applicable, language to be added is doutale_underkned.
If applicable, language to be deleted is stru"reuQ#
Trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal
residents of the City, who shall be appointed by the City Council. two (2) of
whom shall be a full-time Police Officer Member of the Svstem who shall be
• elected by a maiority of the active Police Officers who are Members of the
System, one (1) of whom shall be a former full-time Firefighter Member of the
System, who shall be elected by a maiority of the former Firefighters who were
Members of the System, and one (1) of whom shall be chosen by a maiority of
the five (5) other Trustees as provided for herein, and such person's name shall
be submitted to the City Council.
Upon receipt of the sixth Trustee's name. the City Council shall, as a ministerial
duty, appoint such person to the Board of Trustees as its sixth Trustee. The
sixth Trustee shall have the same rights as each of the other five (5) Trustees.
If there is no former or retired Firefiahter remainina in the Svstem, or willina to
serve, the former and retired Firefighters may elect an active or retired Police
Officer to serve in the active Firefighter seat. Upon receipt of such person's
name. the Citv Council shall. as a ministerial duty. appoint such person to the
Board.
When there are fewer than ten (10) former or retired Firefighters remaining in
the System, or in the case where no former or retired Firefighter is available to
serve on the Board and the active or retired Police Officer who is then serving
in the active Firefighter seat either leaves the employment of the City as a Police
Officer or otherwise vacates his or her office as Trustee. the active Firefighter
seat shall cease to exist. and the Board shall thereafter 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 City Council. two (2) of whom
shall be full-time Police Officer Members of the System who shall be elected by
a maiority of the active Police Officers who are Members of the System, and
one (1) of whom shall be chosen by a maiority of the four (4) remaining Trustees
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 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. Except in the case that there are
fewer than ten (10) former or retired Firefighters remaining and the active or
retired Police Officer who is then serving in the active Firefighter seat either
leaves the employment of the City as a Police Officer or otherwise vacates his
or her office as Trustee each Trustee may succeed himself or herself in office.
Police Deferred Retirement Option Plan (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 the City of Okeechobee Municipal Police Officers' Pension Trust
Fund, shall be read as the 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,
Ordinance No, 1286, Page 3 of 8
If applicable, language to be added is do�hle undedinxi.
If applicable, language to be deleted is strasletpreugh
vesting benefit eligibility, retirement etc of Police Officer Members in the
S sy tem. -
SECTION 5: 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.
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 No. 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 6: That Ordinance No. 1229, as subsequently amended, is hereby further
amended by amending subsection 1., of Section 1., Definitions, 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.
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 1.. of Section 4., 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 No. 888 and all amendments thereto.
SECTION 7: That Ordinance No. 1229, as subsequently amended, is hereby further •
amended by amending subsection 3., of Section 3., Board of Trustees, of the document
made part of said Ordinance and otherwise amended herein, to replace subsection 3., to
read as follows:
Ordinance No. 1286, Page 4 of 8
If applicable, language to be added is double -underlined.
If applicable, language to be deleted is E*usktpreugh
SECTION 3. BOARD OF TRUSTEES.
Quorum and Voting. A quorum shall consist of no fewer than three (3) Trustees.
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, as amended
from time to time.
SECTION 8: That Ordinance No, 1229, as subsequently amended, is hereby further
amended by amending Section 3., Board of Trustees, 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 6,A., the responsible parties shall appoint and elect
prospective Trustees (excluding the sixth Trustee) in accordance with the
conditions set forth in paragraph 6.B., 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 five prospective Trustees and shall constitute the
Mercer Date.
B. As of the Merger Date, this paragraph 6.B., 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 six (6)
Trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal
residents of the City, who shall be appointed by the City Council, two (2) of
whom shall be full-time Police Officer Members of the System who shall be
elected by a maiority of the active Police Officers who are Members of the
System, one (1) of whom shall be a former full-time Firefighter Member of the
System who shall be elected by a maiority of the former Firefighters who were
Members of the System, and one (1) of whom shall be chosen by a maiority of
the five (5) other Trustees as provided for herein, and such person's name shall
be submitted to the City Council.
Upon receipt of the sixth Trustee's name, the City Council shall, as a ministerial
duty, appoint such person to the Board of Trustees as its sixth Trustee. The
sixth Trustee shall have the same rights as each of the other five (5) Trustees.
If there is no former or retired Firefiahter 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. Upon receipt of such person's
name. the Citv Council shall, as a ministerial duty, appoint such person to the
- •
When there are fewer than ten (10) former or retired Firefighters remaining in
the System or in the case where no former or retired Firefighter is available to
serve on the Board and the active or retired Police Officer who is then serving
in the active Firefighter seat either leaves the employment of the City as a Police
Officer or otherwise vacates his or her office as Trustee, the active Firefighter
seat shall cease to exist and the Board shall thereafter consist of five (5)
Trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal
Ordinance No. 1286, Page 5 of 8
If applicable, language to be added is double underlined.
If applicable, language to be deleted is stcusk threegh
residents of the City who shall be appointed by the City Council, two (2) of whom
shall be full-time Police Officer Members of the System who shall be elected by
a maiority of the active Police Officers who are Members of the System, and
one (1) of whom shall be chosen by a maiority of the four (4) remaining Trustees •
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 fora period of
four (4) years unless he or she sooner vacates the office or is sooner replaced
by the 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. Except in the case that there are
fewer than ten (10) former or retired Firefighters remaining and the active or
retired Police Officer who is then serving in the active Firefighter seat either
leaves the employment of the City as a Police Officer or otherwise vacates his
or her office as 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 9: That Ordinance No. 1229, 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:
ECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
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 10: That Ordinance No. 1229, as subsequently amended, is hereby further
amended by amending Section 6., Benefit Amounts and Eligibility, of the document made
part of said Ordinance and otherwise amended herein, to add a new subsection 7., to read
as follows:
Ordinance No. 1286, Page 6 of 8
If applicable, language to be added is double underlined.
If applicable, language to be deleted is struek through
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY.
7. Retired Firefighter Medical Stipend.
A Reserve shall be established by to pay a Medical Stipend to retired Firefighter
members as set forth in this subsection 7., with an initial dollar amount to bring
the funded ratio for the Firefighter assets and liabilities to 100 percent based on
current actuarial assumptions. If the actuari certifies that the funded ratio of the
Pension Fund based on the Firefighter assets and liabilities excluding the
Reserve for the preceding Plan Year exceeds 100 percent in subsequent years,
the Board will transfer an additional dollar amount to the Reserve to bring the
funded ratio to 100 percent If the actuary certifies that the funded ratio of the
Pension Fund based on the Firefighter assets and liabilities for the preceding
Plan Year excluding the Reserve is less than 95 percent the Board will transfer
the dollar amount from the Reserve to the Pension Fund needed to increase
the funded ratio to 95 percent. The assets of the Reserve to pay the Medical
Stipend shall remain invested with the Pension Fund assets and receive a pro-
rata share of the investment results net of investment and administrative
expenses. The Board must provide written notice to the Finance_ Director of the
City of Okeechobee of any change in actuarial investment and economic
assumptions affecting the actuarial calculation of the funded ratio for the
Firefighter assets and liabilities, identifying the specific changes to the
assumptions.
A Medical Stipend shall be paid in equal monthly installments from the Reserve
to Firefighter members receiving pension benefit payments as of October 1
each Plan Year. Payment of the Medical Stipend shall commence on the first
day of the month following the otherwise normal retirement date for each retired
member receiving a pension benefit payment. Starting with the Plan Year that
begins October 1 2023 eligible retired Firefighter members will receive an initial
Medical Stipend based on the retiree's years of Credited Service, as follows:
Years of Credited Service
Monthly Stipend
20 + Years
17.5 — 20
15 —17.5
12.5 —15
10 —12.5
1 000
850
700
550
400
The Board will adiust the Monthly Stipend pro-rata to eligible members for the
next Plan Year based on the balance remaining in the Reserve as of October 1
each Plan Year. The Fund will not pay a stipend at any time the Reserve
balance is zero If the Pension Fund has no retired Firefighter member& an
funds remaining in the Reserve shall be returned to the Pension Fund.
SECTION 11: That specific authority is hereby granted to codify and incorporate this
Ordinance in the existing City of Okeechobee Municipal Police Officers' Pension Trust Fund
Summary Plan Description and the City of Okeechobee Municipal Firefighters' Pension Fund
Summary Plan Description.
SECTION 12: That all Ordinances or parts of Ordinances in conflict herewith be and the
same are hereby repealed.
SECTION 13: 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,
Ordinance No. 1286, Page 7 of 8
If applicable, language to be added is do ibl . undarlin .d.
If applicable, language to be deleted is &uak-tl* h
clauses, or phrases under application shall not be affected thereby.
SECTION 14: That the language of this Ordinance shall be adopted as part of the
corresponding Pension Plan immediately, and the provisions of this Ordinance shall become
effective immediately upon the Merger Date as defined in Sections 4 and 8, herein.
INTRODUCED for First Reading and set for Final Public Hearing on this 6th day of February 2024.
Roll Call Vote:
Yes No Abstained Absent
Council Member Chandler: X
Council Member/Vice Mayor Clark: X
Council Member Jarriel: X
Council Member McAuley: X
Mayor Watford: X
Dowling R. Watford, Jr.; Mayor
ATTFST:
Lane Ga iotea, CMC, tity Clerk
PASSED AND ADOPTED after Second and Final Public Hearing this 5th day of March 2024. Roll
Call Vote:
Yes No Abstained Absent
Council Member Chandler: X
Council Member/Vice Mayor Clark: X
Council Member Jarriel: g
Council Member McAuley: g
Mayor Watford: X
ATTE1: Dowling R. Watf rd, Jr., Mayor
CL !�
Lane GarNotea, CMC, City Jerk
REVIEWED FOR LEGAL SUFFICIENCY:
R. Gregory Hyden, Ci torney
Nason Yeager Gerson Harn Fumero, P.A.
•
Ordinance No. 1286, Page 8 of 8
If applicable, language to be added is double_undecGned.
If applicable, language to be deleted is sNaG'k thFeugh