2024-03-05 Exhibit 2, item V.A.Exhibit 2
03/05/2024
sIlr� ST , A
ORDINANCE NO. 12,86
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
4il,ugl� 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 by the context, the following
words and phrases shall have the meaning indicated:
Ordinance No. 1286, Page 1 of 8
If applicable, language to be added is do able and ,Ie ned.
If applicable, language to be deleted is
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 resultina 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 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. 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 Meraer Date. this paraaraph 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 dnnble imdedined,
If applicable, language to be deleted is GtFUGk Nxeugh
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 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 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. Upon receipt of such person's
name, the City 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 auestions relating to the participation, accrual _of benefits,
Ordinance No. 1286, Page 3 of 8
If applicable, language to be added Is douhle imdedined.
If applicable, language to be deleted is skaskthreugh
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vesting, benefit eligibility, retirement, etc. of Police Officer Members in the
S sv 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.
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 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 imciffi ed.
If applicable, language to be deleted is skask thFaugh
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 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
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)
Trustees, two (2) of whom, unless otherwise prohibited by law, shall be le al
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 Svstem, 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
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 J51
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 sNask-threugh
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 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:
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 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 donbla underlined.
If applicable, language to be deleted is skasktpreugh
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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 actuary 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
1 000
17.5 — 20
850
15 —17.5
700
12.5 —15
550
10 —12.5
400
The Board will adiust the Monthlv 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 members. any
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 dniihle nndadined.
If applicable, language to be deleted is eNask Ehreugb
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
ATTEST:
Lane Gamiotea, CMC, City 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:
Council MemberNice Mayor Clark:
Council Member Jarriel:
Council Member McAuley:
Mayor Watford:
Dowling R. Watford, Jr., Mayor
ATTEST:
Lane Gamiotea, CMC, City Clerk
REVIEWED FOR LEGAL SUFFICIENCY:
John J. Fumero, City Attorney
Nason Yeager Gerson Harris & Fumero, P.A.
Ordinance No. 1286, Page 8 of 8
If applicable, language to be added is double nndedined.
If applicable, language to be deleted is skask-thmugh
VI. PUBLIC HEARING FOR ORDINANCE ADOPTION CONTINUED
A. Continued. Motion by Vice Mayor Clark, second by Council Member Jarriel to adopt proposed Ordinance
No. 1284. Mayor Watford opened the floor for public comments, there were none. Finance Director, India
Riedel and Mr. Scott Baur of Resource Centers, LLC, the Pension Plans' Administrator, gave the staff
review. City Clerk Gamiotea noted for the record, the Ordinance and Actuary Impact Statement was sent
to the State Division of Retirement for review and no comments were received. Roll Call Vote:
Chandler -Yea, Clark -Yea, Jarriel-Yea, McAuley -Absent, Watford -Yea.
Motion Carried.
B. Motion by Council Member Jarriel, second by Vice Mayor Clark to read by title only, proposed Ordinance
No. 1285 amending Section 2-131 of the Code of Ordinances removing the Personnel Administrator
duties from the City Clerk [as presented in Exhibit 6].
Motion Carried.
City Attorney Fumero read into the record the title of proposed Ordinance No. 1285 as follows: "AN
ORDINANCE OF THE CITY OF OKEECHOBEE, FLORIDA; AMENDING THE CODE OF
ORDINANCES CHAPTER 2 ADMINISTRATION, ARTICLE III DEPARTMENTS, OFFICERS, AND
EMPLOYEES, DIVISION 4 CITY CLERK, SECTION 2-131 GENERAL DUTIES TO REMOVE THE
DUTY OF PERSONNEL ADMINISTRATOR; PROVIDING FOR CONFLICT; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE."
Motion and second by Council Members Chandler and Jarriel to adopt proposed Ordinance No. 1285.
Mayor Watford opened the floor for public comments, there were none. Clerk Gamiotea gave the staff
review. Roll Call Vote: Chandler -Yea, Clark -Yea, Jarriel-Yea, McAuley -Absent, Watford -Yea.
Motion Carried.
VII. NEW BUSINESS
A. Motion by Vice Mayor Clark, second by Council Member Jarriel to approve the designation of India Riedel
as the City's Representative and Board Member and Heather Prince as Alternate to the Public Risk
Management Group Health Trust.
Motion Carried.
B. Motion by Council Member Jarriel, second by Vice Mayor Clark to read by title only, proposed Ordinance
No. 1286, merging the Police Officers' and Firefighters' Pension Funds and providing for a retired
firefighter medical stipend [as presented in Exhibit 12].
Motion Carried.
City Attorney Fumero read into the record the title of proposed Ordinance No. 1286 as follows: "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."
Motion and second by Council Members Chandler and Jarriel to approve the first reading and set March
5, 2024, as the final Public Hearing date for proposed Ordinance No. 1286.
Clerk Gamiotea distributed a memorandum requesting the Council correct some of the wording within
the proposed Ordinance. Motion by Council Member Jarriel, second by Vice Mayor Clark to amend
proposed Ordinance No. 1286, as follows: remove the sixth Whereas paragraph on page 1; remove
elected and replace with other on page 3, first paragraph, B., last sentence; add "in the System" after the
word remaining on page 3, fourth paragraph, first sentence; remove elected and replace with other on
page 5, fifth paragraph, 6.B., last sentence; add "in the System" after the word remaining on page 5, last
paragraph, first sentence.
Motion To Amend Carried.
Mr. Baur, Plan Administrator, provided the staff review, purpose and benefits of the proposed changes.
The Police Officers' Board of Trustees voted against recommending adoption. However, the Firefighters'
Board of Trustees voted in favor of the adoption. Roll Call Vote: Chandler -Yea, Clark -Yea, Jarriel-
Yea, McAuley -Absent, Watford -Yea.
Motion Carried As Amended.
FEBRUARY 6, 2024, CITY COUNCIL REGULAR MEETING, PAGE 2 OF 4
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February 28, 2024
Board of Trustees
City of Okeechobee Police Officers' Retirement System
City of Okeechobee Firefighters' Retirement System
c/o Mr. Scott Baur
Resource Centers, LLC
4360 Northlake Blvd
Suite 206
P:954.527.1616 F:954.525.0083 www.grsconsultmng.com
Palm Beach Gardens, FL 33410
Re: City of Okeechobee Police Officers' Retirement System
City of Okeechobee Firefighters' Retirement System
Actuarial Impact Statement
Dear Scott:
As requested, we are pleased to enclose an Actuarial Impact Statement as of October 1, 2022 to
illustrate the first -year impact of the attached proposed Ordinance which amends the City of
Okeechobee Police Officers' Retirement System and Okeechobee Firefighters' Retirement System
(Systems) as described below.
Background —The City of Okeechobee Police Officers' Retirement System and the Okeechobee
Firefighters' Retirement System are separate Retirement Systems. The proposed Ordinance allows
the Systems to merge together administratively and creates a Firefighter reserve account to pay
medical stipends to retired Firefighters, if available.
Proposed Ordinance —The proposed Ordinance amends and restates the System provisions as
follows:
➢ Effective as of the Merger Date, the City of Okeechobee Firefighters' Retirement System
and the City of Okeechobee Police Officers' Retirement System are merged into one
plan called the City of Okeechobee Police Officers' and Firefighters' Retirement System.
➢ A reserve account will be established to pay a medical stipend to retired Firefighters.
The initial and subsequent amount of the reserve will be a dollar amount to bring the
funded ratio for Firefighter assets and liabilities to 100% based on current actuarial
assumptions. In subsequent years, if the Funded Ratio falls below 95% the Board will
transfer the dollar amount from the reserve to increase the funded ratio to 95%.
Retired Firefighters who are receiving pension benefit payments (excluding members in
early retirement) will receive a medical stipend based on the retiree's years of Credited
Service, as follows:
Mr. Scott Baur
February 28, 2024
Page ii
Years of Credited Service
Monthly Stipend
x >! 20.0
$1, 000
17.5 <_ x < 20.0
$850
15.0Sx<17.5
$700
12.5 <_ x < 15.0
$550
10.0:5x<12.5
$400
➢ The Board will adjust the Monthly Stipend pro-rata based on the balance remaining in
the Reserve as of October 1st each Plan Year, if the Reserve does not have enough funds
to pay the full stipend.
➢ If there are no funds in the Reserve, no Stipend shall be paid. If no retired Firefighter
members remain, the Reserve shall be returned to the Pension Fund.
Summary of Findings — Please note that the impact of the proposed System change is being shown
on the actuarially determined contribution for the fiscal year ending September 30, 2024, using the
valuation results as of October 1, 2022, the most recent actuarial valuation.
➢ As a result of the System change, the required employer contribution amount for
Firefighters for the fiscal year ending September 30, 2024 increased by $3,995, from
$44,389 to $48,384.
As a result of the System change, the required employer contribution amount for the Police
Officers stayed the same.
Currently the actuarially determined contribution for the Firefighters includes only ongoing
expenses and interest as applicable under Florida Statues (F.S. 112.66 (13)). There is no current
Firefighter unfunded liability.
Note, in the future, if the Firefighter Funded Ratio is above 95% and below 100%, the actuarially
determined contribution would increase due to the necessary amortization payment of the
unfunded liability. We understand the City and State would fund the increased actuarially
determined contribution in this scenario.
Filing Requirements — We have prepared the Actuarial Impact Statement for filing with the State of
Florida. Please note that this Statement must be signed and dated on behalf of the Board of
Trustees. Copies of the Ordinance upon passage at first reading along with the signed and dated
Actuarial Impact Statement are generally required to be filed with the State at the following
address:
Mr. Douglas E. Beckendorf, A.S.A.
Bureau of Local Retirement Services
��RS
•
0
Mr. Scott Baur
February 28, 2024
Page iii
Division of Retirement
Building 8
Post Office Box 9000
Tallahassee, Florida 32315-9000
We understand the State requires funding any increases in costs no later than the fiscal year next
following the effective date of the Ordinance.
Please forward a copy of the Ordinance upon passage to update our files
Actuarial assumptions and methods, financial data, System provisions and member census data —
The actuarial assumptions and methods, financial data and member census data employed for
purposes of our Actuarial Impact Statement are the same actuarial assumptions and methods,
financial data and member census data utilized for the October 1, 2022 Actuarial Valuations of the
Systems with the following exception:
➢ The firefighter Actuarial Value of Assets methodology changed from a 4-year smoothed
asset value to the market value of assets in order to align with the reserve.
The System provisions employed for purposes of our Actuarial Impact Statement are the same
System provisions utilized in the October 1, 2022 Actuarial Valuations of the Systems with the
exception of the proposed changes described above.
Risk Assessment— Risk assessment may include scenario tests, sensitivity, or stress tests, stochastic
modeling, and a comparison of the present value of benefits at low -risk discount rates. We are
prepared to perform such assessment to aid in the decision -making process. Please refer to the
October 1, 2022 Actuarial Valuation Reports dated April 24, 2023 for additional discussion regarding
the risks associated with measuring the liability and the minimum funding payment.
This Actuarial Impact Statement is intended to describe the estimated future financial effects of the
proposed benefit changes on the Systems and is not intended as a recommendation in favor of the
benefit changes nor in opposition to the changes.
If all actuarial assumptions are met and if all current and future minimum required contributions
are paid, System assets will be sufficient to pay all System benefits and future contributions are
expected to remain relatively stable as a percent of payroll. System minimum required
contributions are determined in compliance with the requirements of the Florida Protection of
Public Employee Retirement Benefits Act, Firefighters' Retirement Chapter 175 and Police Officers'
Retirement Chapter 185 with normal cost determined as a level percent of covered payroll using
the Aggregate Cost Method (Entry -Age Normal Method for Firefighters).
&h.G RS
U
Mr. Scott Baur
February 28, 2024
Page iv
These calculations are based upon assumptions regarding future events. However, the System's
long term costs will be determined by actual future events, which may differ materially from the
assumptions made. These calculations are also based upon present and proposed System
provisions that are outlined or referenced in this Actuarial Impact Statement.
If you have reason to believe the assumptions used are unreasonable, the System provisions are
incorrectly described or referenced, important System provisions relevant to this Actuarial Impact
Statement are not described or that conditions have changed since the calculations were made, you
should contact the undersigned prior to relying on information in this Actuarial Impact Statement.
If you have reason to believe that the information provided in this Actuarial Impact Statement is
inaccurate, or is in any way incomplete, or if you need further information in order to make an
informed decision on the subject matter of this report, please contact the undersigned prior to
making such decision.
Future actuarial measurements may differ significantly from the current measurements presented
in this report due to such factors as the following: System experience differing from that anticipated
by the economic or demographic assumptions; changes in economic or demographic assumptions;
increases or decreases expected as part of the natural operation of the methodology used for these
measurements (such as the end of an amortization period) and changes in System provisions or
applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the
potential range of such future measurements.
The Unfunded Actuarial Accrued Liability (UAAL) under the Entry Age Normal method may not be
appropriate for assessing the sufficiency of Plan assets to meet the estimated cost of settling
benefit obligations but may be appropriate for assessing the need for or the amount of future
contributions. For Police Officers, the UAAL would be different if it reflected the market value of
assets rather than the smoothed value of assets.
This Actuarial Impact Statement should not be relied on for any purpose other than the purpose
described in the primary communication. Determinations of the financial results associated with
the benefits described in this report in a manner other than the intended purpose may produce
significantly different results.
This Actuarial Impact Statement has been prepared by actuaries who have substantial experience
valuing public employee retirement systems. To the best of our knowledge the information
contained in this report is accurate and fairly presents the actuarial position of the System as of the
valuation date. All calculations have been made in conformity with generally accepted actuarial
principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards
Board and with applicable statutes.
FRS
Mr. Scott Ba u r
February 28, 2024
Page v
This Actuarial Impact Statement was prepared using our proprietary valuation model and related
software which in our professional judgment has the capability to provide results that are
consistent with the purposes of the valuation and has no material limitations or known weaknesses.
We performed tests to ensure that the model reasonably represents that which is intended to be
modeled.
This report was prepared at the request of the Board and is intended for use by the Board and
those designated or approved by the Board. This report may be provided to parties other than the
Board only in its entirety and only with the permission of the Board. GRS is not responsible for
unauthorized use of this report.
The signing actuaries are independent of the System sponsor.
The undersigned are Members of the American Academy of Actuaries and meet the Qualification
Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
If you should have any question concerning the above or if we may be of further assistance with this
matter, please do not hesitate to contact us.
Sincerest regards,
A4dz& jv-A�
Shelly L. Jones, A.S.A., E.A., M.A.A.A, F.C.A.
Consultant and Actuary
Enclosures
&G R S
Jennifer M. Borregard, E.A., M.A.A.A., F.C.A.
Consultant and Actuary
Actuarial Impact Statement as of October 1. 2022
A. Description of Proposed Amendment
(1) Effective as of the Merger Date, the City of Okeechobee Firefighters' Retirement System and the City
of Okeechobee Police Officers' Retirement System are merged into one plan called the City of
Okeechobee Police Officers' and Firefighters' Retirement System.
(2) A reserve account will be established to pay a medical stipend to retired Firefighters. The initial and
subsequent amount of the reserve will be a dollar amount to bring the funded ratio for Firefighter
assets and liabilities to 100% based on current actuarial assumptions. In subsequent years, if the
Funded Ratio falls below 95% the Board will transfer the dollar amount from the reserve to increase
the funded ratio to 95%. Retired Firefighters who are receiving pension benefit payments (excluding
members in early retirement) will receive a medical stipend based on the retiree's years of Credited
Service, as follows:
Years of Credited
Service
Monthly Stipend
x >_ 20.0
$1,000
17.5 <_ x < 20.0
$850
15.0!5x<17.5
$700
12.5 <_ x < 15.0
$550
10.0!5x<12.5
$400
(3) The Board will adjust the Monthly Stipend pro-rata based on the balance remaining in the Reserve as
of October 1st each Plan Year, if the Reserve does not have enough funds to pay the full stipend.
(4) If there are no funds in the Reserve, no Stipend shall be paid. If no retired Firefighter members remain,
the Reserve shall be returned to the Pension Fund.
B. An estimate of the cost implementing this amendment is attached.
C. In my opinion, the proposed changes are in compliance with Part VII, Chapter 112, Florida Statutes and
Section 14, Article X of the Statement Constitution.
Police Officer Pension Board Chair Date
Firefighter Pension Board Chair Date
G R S
City of Okeechobee Police Officers' and Firefighters' Retirement System
Actuarial Impact Statement as of October 1, 2022
A. Participant Data
1. Active participants
2. Retired, disabled and beneficiaries receiving benefits
(including DROPs)
3. Terminated vested participants
4. Annual payroll of active participants
$
5. Annual benefits payable to those currently
receiving benefits (including DROPS)
$
B. Assets
1. Smoothed actuarial value
$
2. Market value
$
3. Reserve
$
C. Liabilities
1. Actuarial present value of future expected benefit
payments for active members
a. Retirement benefits
$
b. Vesting benefits
c. Disability benefits
d. Death benefits
e. Total
_
$
2. Actuarial present value of future expected benefit payments
for terminated vested members
$
3. Actuarial present value of future expected benefit
payments for members currently receiving benefits
a. Service retired including DROPs
$
b. Disability retired
c. Beneficiaries
d. Miscellaneous (refunds in process)
_
e. Total
$
4. Share Plan Liability
$
5. Total actuarial present value of future expected
benefit payments
$
6. Actuarial accrued liabilities (Entry Age Normal)
$
7. Unfunded actuarial accrued liabilities (Entry Age Normal) $
D. Normal Cost
1. Present Value of Future Normal Costs (C.5. - B.1.)
$
2. Present Value of Future Salaries
$
3. Normal Cost Accrual Rate (D.1. / D.2.)
4. Normal Cost (A.4. x D.3.)
$
Actuarial Impact
Valuation Statement
10/01/2022 10/01/2022
20 20
17 17
2 2
1,073,721 $ 1,073,721
467,787 $ 467,787
10,956,636 $
9,397,712 $
0 $
5,433,380 $
291,201
170,016
18,674
5,913,271 $
215,331 $
5,201,575 $
0
466,860
50,016
5,718,451 $
52,741 $
11,899,794 $
9,238,795 $
(1,717,841) $
943,158 $
10,873,917 $
8.674
93,135 $
10,956,636
9,397,712
0
5,433,380
291,201
170,016
18,674
5,913,271
215,331
5,201,575
0
466,860
50,016
5,718,451
5 2, 741
11,899,794
9,238,795
(1,717,841)
943,158
10,873,917
8.674
93,135
GRS
City of Okeechobee Police Officers' and Firefighters' Retirement System 1
i
•
Actuarial Impact Statement as of October 1, 2022
Police Officers
E. Statement of Accumulated Plan Benefits
1. Actuarial present value of accumulated vested benefits
a. Participants currently receiving benefits
b. Terminated vested members and miscellaneous
(including share plan liability)
c. Other participants
d. Total
2. Actuarial present value of accumulated non -
vested plan benefits
3. Total actuarial present value of accumulated
plan benefits
F. Pension Cost
1. Total normal cost
2. Estimated administrative expenses
3. Interest adjustment
4. Total required contributions
5. Item 4 as a percentage of payroll
6. Estimated employee contributions
7. Item 6 as a percentage of payroll
8. Expected City/State contribution
9. Item 8 as a percentage of payroll
G. Disclosure of Following Items:
1. Actuarial present value of future salaries
- attained age
2. Actuarial present value of future employee
contributions - attained age
3. Actuarial present value of future contributions
from other sources
4. Amount of active members' accumulated
contributions
5. Actuarial present value of future salaries and
future benefits at entry age
6. Actuarial present value of future employee
contributions at entry age
Valuation
10/01/2022
Actuarial Impact
Statement
10/01/2022
$ 5,668,435 $ 5,668,435
318,088
2,073,801
$ 8,060,324
208,414
$ 8,268,738
318,088
2,073,801
$ 8,060,324
208,414
$ 8,268,738
$
93,135
$
93,135
55,854
55,854
7,189
7,189
$
156,178
$
156,178
14.5%
14.5%
$
53,686
$
53,686
5.0%
5.0%
$
102,492
$
102,492
9.5%
9.5%
$ 10,873,917 $ 10,873,917
$ 543,696 $ 543,696
N/A N/A
$ 438,998 $ 438,998
N/A N/A
N/A N/A
Qw
City of Okeechobee Police Officers' and Firefighters' Retirement System 2
Actuarial Impact Statement as of October 1, 2022
Firefighters
A. Participant Data
1. Active participants
2. Retired, disabled and beneficiaries receiving benefits
(including DROPS)
3. Terminated vested participants
4. Annual payroll of active participants
$
5. Annual benefits payable to those currently
receiving benefits (including DROPS)
$
B. Assets
1. Smoothed actuarial value
$
2. Market value
$
3. Reserve
$
C. Liabilities
1. Actuarial present value of future expected benefit
payments for active members
a. Retirement benefits
$
b. Vesting benefits
c. Disability benefits
d. Death benefits
e. Total
_
$
2. Actuarial present value of future expected benefit payments
for terminated vested members
$
3. Actuarial present value of future expected benefit
payments for members currently receiving benefits
Actuarial Impact
Valuation Statement
10/01/2022 10/01/2022
0 0
8 8
5 5
0 $ 0
231,136 $ 231,136
4,673,038 $ 3,446,557
4,007,139 $ 3,446,557
0 $ 560,582
0 $ 0
0 0
0 0
0 0
0 $ 0
731,340 $ 731,340
a. Service retired including DROPS $ 2,050,313 $ 2,050,313
b. Disability retired 365,075 365,075
c. Beneficiaries 290,144 290,144
d. Miscellaneous (refunds in process) 7,962 7,962
e. Total $ 2,713,494 $ 2,713,494
4. Share Plan Liability $ 1,723 $ 1,723
5. Total actuarial present value of future expected
benefit payments $
6. Actuarial accrued liabilities (Entry Age Normal) $
7. Unfunded actuarial accrued liabilities (Entry Age Normal) $
D. Normal Cost
3,446,557 $ 3,446,557
3,446,557 $ 3,446,557
(1,226,481) $ -
1. Age retirement benefits-
2. Termination benefits - -
3. Death benefits - -
4. Disability benefits - -
5. Estimated expenses 44,389 44,389
6. Total annual normal costs $ 44,389 $ 44,389
GRS
City of Okeechobee Police Officers' and Firefighters' Retirement System 3
i 0
Actuarial Impact Statement as of October 1, 2022
Firefighters
E. Statement of Accumulated Plan Benefits
1. Actuarial present value of accumulated vested benefits
a. Participants currently receiving benefits
b. Terminated vested members and miscellaneous
(including share plan liability)
c. Other participants
d. Total
2. Actuarial present value of accumulated non -
vested plan benefits
3. Total actuarial present value of accumulated
plan benefits
F. Pension Cost
1. Total normal cost
2. Amortization of unfunded liability
3. Interest adjustment
4. Total required contributions
5. Item 4 as a percentage of payroll
6. Estimated employee contributions
7. Item 6 as a percentage of payroll
8. Expected City/State contribution
9. Item 8 as a percentage of payroll
G. Disclosure of Following Items:
1. Actuarial present value of future salaries
- attained age
2. Actuarial present value of future employee
contributions - attained age
3. Actuarial present value of future contributions
from other sources
4. Amount of active members' accumulated
contributions
5. Actuarial present value of future salaries and
future benefits at entry age
6. Actuarial present value of future employee
contributions at entry age
Valuation
10/01/2022
Actuarial Impact
Statement
10/01/2022
$
2,705,532
$
2,705,532
741,025
741,025
0
0
$
3,446,557
$
3,446,557
0
0
$
3,446,557
$
3,446,557
$
44,389
$
44,389
(157,207)
0
(10,154)
3,995
$
44,389
$
48,384
N/A
N/A
$
0
$
0
N/A
N/A
$
44,389
$
48,384
N/A
N/A
$ 0 $
0
$ 0 $
0
N/A
N/A
$ 0 $
0
N/A
N/A
N/A
N/A
Q s
City of Okeechobee Police Officers' and Firefighters' Retirement System 4
Actuarial Impact Statement as of October 1, 2022
Firefighters
Unfunded Actuarial
Accrued Liabilities
10/01/2022 Method Change - Initial Unfunded
10/01/2022 Proposed System Change - Reserve Transfer
TOTAL
Current Remaining
Unfunded Amortization Funding
Liabilities Payment Period
(1,226,481) (157,207) 10 years
1,226,481 157,207 10 years
$ 0 $
This actuarial valuation and / or cost determination was prepared and completed by us or under our direct supervision, and we
acknowledge responsibility for the results. To the best of our knowledge, the results are complete and accurate, and in our
opinion, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112,
Florida Statutes. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which
liabilities or current costs have not been established or other wise provided for in the valuation. All known events or trends
which may require material increase in plan costs or required contribution rates have been taken into account in the valuation.
Shelly L. Jones, A.S.A. Jennifer M. Borregard, E.A.
Enrollment Number: 23-08646 Enrollment Number: 23-07624
Dated: February 28, 2024
GRS
City of Okeechobee Police Officers' and Firefighters' Retirement System 5
•
•
Outline of Principal Provisions of the Retirement System
A. Effective Date:
January 1, 1972. Effective as of the Merger Date, the City of Okeechobee Firefighters' Retirement
System and the City of Okeechobee Police Officers' Retirement System are merged into one plan
called the City of Okeechobee Police Officers' and Firefighters' Retirement System.
B. Eligibility:
Police Officers
All actively employed full time Police Officers of the City are eligible on date of employment;
Participation is mandatory.
Firefighters
All actively employed full time Firefighters who elect to remain members of the System following the
merger with the County are eligible on date of employment. After August 2, 2021 the System is
closed to new or reemployed members.
C. Contributions:
Employee: 5.0% of Salary.
State: Premium Tax Revenue.
City: Balance required to maintain System on sound actuarial basis.
D. Credited Service:
Service is measured as the total number of years and fractional part of years of continuous service as
a Member. No service is credited for any periods of employment for which the Member received a
refund of Employee Contributions. [System is being administered and valued based upon total
number of years and completed months of service as a Member].
E. Salary:
Total compensation including tax deferred, tax sheltered and tax exempt income derived from
elective employee payroll deductions or salary reductions.
For Police Officer service earned after July 1, 2011, compensation shall not include more than 300
hours of overtime per fiscal year and shall also not include payments for accrued unused sick or
annual leave.
F. Average Final Compensation:
Average Final Compensation (AFC) is determined by the average total salary, including for Police
Officers accumulated sick and vacation time paid in a lump sum, over the highest 5 years of the last
10.
QW
City of Okeechobee Police Officers' and Firefighters' Retirement System 6
Outline of Principal Provisions of the Retirement System
G. Normal Retirem
1. Eligibility:
Earlier of:
(a) Attainment of age 55 with completion of 10 years of Credited Service.
(b) Completion of 25 years of Credited Service.
2. Benefit:
3.0% times AFC times Credited Service.
H. Early Retirement:
1. Eligibility:
Attainment of age 50 with completion of 10 years of Credited Service.
2. Benefit:
Benefit accrued to date of retirement, reduced by 3% for each year early retirement date precedes age
55.
I. Delayed Retirement:
Computed the same as set forth under Normal Retirement, based upon AFC and Credited Service as of
delayed retirement date.
J. Disability Retirement:
1. Service Incurred:
Accrued benefit, but not less than 42% of AFC.
2. Non -Service Incurred:
a. Eligibility: 5 or more years of Credited Service; totally and permanently disabled.
b. Benefit: The greatest of:
(i) Accrued benefit
(ii) 2% of AFC times Credited Service
(iii) 25% of AFC
K. Pre -Retirement Death Benefit:
a. Not Vested: Refund of accumulated contributions.
b. Vested but Not Eligible Greater of (a) 50% of the present value of vested accrued benefit or (b)
for Early or Normal refund of accumulated contributions.
Retirement:
QiW
City of Okeechobee Police Officers' and Firefighters' Retirement System 7
Outline of Principal Provisions of the Retirement Svstem
K. Pre -Retirement Death Benefit (cont'd):
c. Eligible for Early or Normal Greater of (a) accrued benefit, determined as though the
Retirement: deceased had retired immediately preceding date of death
and elected the 10 year certain and life form of payment
or (b) 50% of present value of vested accrued benefit.
In the event a vested Member's spouse is the sole beneficiary, the beneficiary shall be entitled to the
accrued normal or early retirement benefit payable at the deceased Member's early or normal
retirement age less the value of any benefits paid above.
L. Termination Benefits:
1. Eligibility:
100% vesting upon the completion of 10 years of credited service. Employees who have not
completed 10 years of credited service at date of termination of employment shall only be entitled
to the return of their accumulated contributions with 3.0% interest.
2. Benefit:
Accrued benefit based upon credited service and AFC as of date of termination, payable at age 55.
M. Normal Form of Retirement Income:
Monthly benefit payable for ten (10) years certain and life thereafter.
N. Ootional Forms of Retirement Income:
In lieu of electing the normal form of payment, the optional forms of payment available are the Single
Life Annuity option and the 50%, 66 2/3%, 75% and 100% Joint and Contingent options. A Social
Security option is available for Members retiring prior to being eligible for Social Security retirement
benefits. A 20% Partial Lump Sum is available for Members who do not participate in the DROP.
O. Deferred Retirement Option Program (DROP)
1. Eligibility:
Member must be eligible for Normal Retirement.
2. Benefit:
Retirement benefits are transferred to a hypothetical DROP account within the pension fund.
Interest is credited or debited based upon either the quarterly rate of return earned by the Fund
or a monthly 6.5% fixed rate of return, as elected by the Member. Members may elect to change
their interest crediting election once during the DROP period. The period of participation in the
DROP is limited to no more than 60 months. The benefit is paid as a lump sum upon actual
termination of employment.
QW
City of Okeechobee Police Officers' and Firefighters' Retirement System 8
•
Outline of Principal Provisions of the Retirement System
P. Cost of Living Adjustment (COLA)
Beginning October 1, 1999 and October 1 of every odd -numbered year thereafter, monthly benefits of all
retirees (service, disability, DROP), beneficiaries and vested terminated participants who have been in the
DROP or in pay status for at least one year on the adjustment date will be increased by 0.5%.
Q. Firefighter Reserve and Medical Stipend
A reserve account will be established to pay a medical stipend to retired Firefighters. The initial and
subsequent amount of the reserve will be a dollar amount to bring the funded ratio for Firefighter assets and
liabilities to 100% based on current actuarial assumptions. In subsequent years, if the Funded Ratio falls below
95% the Board will transfer the dollar amount from the reserve to increase the funded ratio to 95%. Retired
Firefighters who are receiving pension benefit payments (excluding members in early retirement) will receive a
medical stipend based on the retiree's years of Credited Service, as follows:
Years of Credited Service
Monthly Stipend
x >_ 20.0
$1,000
17.5:5x<20.0
$850
15.0:5x<17.5
$700
12.5<_x<15.0
$550
10.05x<12.5
$400
The Board will adjust the Monthly Stipend pro-rata based on the balance remaining in the Reserve as of
October 1st each Plan Year, if the Reserve does not have enough funds to pay the full stipend.
If there are no funds in the Reserve, no Stipend shall be paid. If no retired Firefighter members remain, the
Reserve shall be returned to the Pension Fund.
R. Changes Since Previous Actuarial Valuation
Previously, the City of Okeechobee Police Officers' Retirement System and City of Okeechobee Firefighters'
Retirement System were separate plans.
Effective Dates were:
Police Officers
January 1, 1972. Most recently amended by Ordinance No. 1187 adopted July 16, 2019.
Firefighters
January 1, 1972. Most recently amended by the Interlocal Agreement between Okeechobee County and the
City of Okeechobee for Fire Services dated December 1, 2020 and Ordinance No. 1229 adopted August 3, 2021.
There was no Firefighter Reserve and Medical Stipend.
QRS
City of Okeechobee Police Officers' and Firefighters' Retirement System 9
•
•
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
A. Mortality
For healthy participants during employment, PUB-2010 Headcount Weighted Safety Employee
Female Mortality Table and Safety Below Median Employee Male Mortality Table, both set forward 1
year, with fully generational mortality improvements projected to each future decrement date with
Scale MP-2018.
For healthy participants post employment, PUB-2010 Headcount Weighted Safety Healthy Retiree
Female Mortality Table and Safety Below Median Healthy Retiree Male Mortality Table, both set
forward 1 year, with fully generational mortality improvements projected to each future decrement
date with Scale MP-2018.
For disabled participants, 80% PUB-2010 Headcount Weighted General Disabled Retiree Mortality
Table / 20% PUB-2010 Headcount Weighted Safety Disabled Retiree Mortality Table, separate rates
for males and females, without projected mortality improvements.
Pre -retirement
Post -retirement
Sample
Future Life
Future Life
Ages
Expectancy (Years)
Expectancy (Years)
(2022)
Men
Women
Men
Women
55
30.62
34.47
27.78
31.35
60
25.66
29.40
23.18
26.55
62
23.73
27.39
21.44
24.71
Pre -retirement
Post -retirement
Sample
Future Life
Future Life
Ages
Expectancy (Years)
Expectancy (Years)
(2042)
Men
Women
Men
Women
55
32.25
35.96
29.67
33.18
60
27.23
30.84
24.97
28.30
62
25.27
28.81
23.18
26.42
B. Interest to be Earned by Fund
Police Officers
7.0% (net of investment expenses), compounded annually - includes inflation at 2.5%.
Firefighters
6.0% (net of investment expenses), compounded annually - includes inflation at 2.5%.
QW
City of Okeechobee Police Officers' and Firefighters' Retirement System 10
•
•
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
C. Allowances for Expenses or Contingencies
Actual administrative expenses incurred during the prior System year.
D. Salary Increase Factors
Police Officers
Current salary is assumed to increase at a rate of 6.0% - includes wage inflation of 3.5%.
Firefighters
Current salary is assumed to increase at a rate of 7.0% - includes wage inflation of 3.5%.
E. Disability Rates
Disability rates for males and for females were used in accordance with the following illustrative
example.
Disability Rates
Age Per 100 Employees
20 0.14
30 0.18
40 0.30
50 1.00
85% of firefighter disabilities are assumed to be service incurred - 15% non -service incurred.
F. Employee Withdrawal Rates
Withdrawal rates for males and for females were used in accordance with the following illustrative
example.
Age
Withdrawal Rate
20
6.0%
30
5.0%
40
2.6%
50
0.8%
60
0.2%
QRS
City of Okeechobee Police Officers' and Firefighters' Retirement System 11
•
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
G. Rates of Retirement
100% at normal retirement age.
All active members on the valuation date are assumed to have a minimum of one year of future service.
H. Cost Methods
Police Officers
Normal Retirement, Termination, Disability, and Death Benefits: Aggregate
Under this method the excess of the Actuarial Present Value of Projected Benefits of the group included
in the valuation, over the sum of the Smoothed Value of Assets is allocated as a level percentage of
earnings of the group between the valuation date and the assumed retirement age. This allocation is
performed for the group as a whole, not as a sum of individual allocations. The portion of this Actuarial
Present Value allocated to a specific year is called the Normal Cost. Under this method, actuarial gains
(losses) reduce (increase) future Normal Costs.
Firefighters
Normal Retirement Termination Disability, and Death Benefits: Entry Age Normal
Under this method the normal cost for each active employee is the amount which is calculated to be a
level percentage of pay that would be required annually from his entry age to his assumed retirement
age to fund his estimated benefits, assuming the System had always been in effect. The normal cost for
the System is the sum of such amounts for all employees. The actuarial accrued liability as of any
valuation date for each active employee or inactive employee who is eligible to receive benefits under
the System is the excess of the actuarial present value of estimated future benefits over the actuarial
present value of current and future normal costs. The unfunded actuarial accrued liability as of any
valuation date is the excess of the actuarial accrued liability over the assets of the System.
Vested Normal Retirement Termination Disability, and Death Benefits: Unit Credit Cost Method
Under this method, the actuarial present value of vested accrued benefits is an amount calculated to be
the sum of the present values of each individual's vested accrued or earned benefit under the System
as of the valuation date. Each individual's calculation is based on pay and service as of the valuation
date.
QW
City of Okeechobee Police Officers' and Firefighters' Retirement System 12
•
0
Actuarial Assumptions and Actuarial Cost Methods
Used in the Valuation
Asset Valuation Method
Police Officers
The method used for determining the smoothed value of assets phases in the deviation between the
expected and actual return on assets at the rate of 25% per year. The smoothed value of assets will be
further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair
market value of System assets and whose upper limit is 120% of the fair market value of System assets.
Firefighters
Market Value
J. Disclosure of Assumptions
The investment return, salary increases, withdrawal and retirement rates were set based upon System
expected experience. The mortality rates are based upon the July 1, 2022 FRS Actuarial Valuation, as
required under F.S., Chapter 2015-157.
K. Changes Since Previous Actuarial Valuation
Asset Valuation Method for Firefighters was:
The method used for determining the smoothed value of assets phases in the deviation between the
expected and actual return on assets at the rate of 25% per year. The smoothed value of assets will be
further adjusted to the extent necessary to fall within the corridor whose lower limit is 80% of the fair
market value of System assets and whose upper limit is 120% of the fair market value of System assets.
QW
City of Okeechobee Police Officers' and Firefighters' Retirement System 13
•
City of Okeechobee, Florida
Business Impact Estimate
Pursuant to §166.041, Florida Statutes
Proposed ordinance's reference and title: Ordinance No. 1286
AN ORDINANCE OF THE CITY OF OKEECHOBEE, FL.ORIDA, 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.
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 law' 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:
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 merges the municipal police officers' and municipal firefighters' pension fund.
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):
None.
1 See Section 166.041(4)(c), Florida Statutes.
Page 1 of 1
W)uv
"'INDEPENDENT
NEWSMEDIA INC. use
STATE OF FLORIDA
COUNTY OF OKEECHOBEE
Before the undersigned authority personally appeared Ka-
trina Elsken Muros, who on oath says that she is Editor
in Chief of the Lake Okeechobee News, a weekly news-
paper published in Okeechobee County, Florida; that the
attached copy of advertisement, being a Public Notice in
the matter of
Public Notice
in the 19th Judicial District of the Circuit Court of
Okeechobee County, Florida, was published in said news-
paper in the issues of
02/21 /24
(Print Dates)
or by publication on the newspaper's website, if authorized,
on
02/21 /24
(Website Dates)
Affiant further says that the newspaper complies with all
legal requirements for publication in Chapter 50, Florida
Statutes.
Katrina Elsken Micros
Sworn to and subscribed before me by means of
[:]Physical Presence �X Online Notarization
Physical Presence or online notarization, this
21 st day of February. 2024.
rttr (.
. k�'r rt�6M;3tr!Cd'iyHN1�$�!A
V2,252Sut3e'i
(Signature of Notary Public)
STAMP OF NOTARY PUBLIC
• MINUTE FILt
,0�
Lake Okeechobee News
313 NW 4th Avenue
Okeechobee, FL 34972
863-763-3134
CITY OF OKEECHOBEE
PUBLIC NOTICE
CONSIDERATION OF ADOPTING A CITY ORDINANCE
NOTICE IS HFREBYGNBJ that the Qy Co-1dBteCiydOl- t[bee
wi mrdirx a Rhic FI®ri m March 5, i024, 6 PM, vas som 7ia®ft r
ergfat 55 SE ot dapbari of the AVE,Rm200, CWKh0bW R,toaxsderfr>
fdmvrg OrdFwm nN bw tNo. �:
AN ORDINANCE OF THE CITY OF OKEECHO8EE FLORIDA, PRO-
VIDING FOR THE MERGER OF THE CrrY OF OKEECHOBEE MUNIC-
IPAL POLICE OFFICERS' PENSION TRUST FUND, CREATED PUR-
SUANT TO ORDINANCE NO. 888 AS SUBSEQUENTLY AMENDED,
AND THE CITY OF OtCLECFIOBEE MUNICIPAL FIREFIGHTERS PEN-
SION FUND, CREATED PURSUANT TO ORDINANCE NO. 889 AND
AMENDED AND RESTATED PURSUANT TO ORDINANCE NO. V29;
PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABI -1-
TY OF PROVISIONS, REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH AND PROVIDING AN EFFECTIVE DATE
The public's brVbad to allend and be heard m a0 matters
=o�prfaInilaysmrtacttheoefOtY�663at1headd—
�=�b�eB3�3 0II�
pc6ed mrre one week prior t1 the (mac Fi�m9 date, wilt IhC OtY COugl
agenda rre�ls an the CRy wd>Sile at htas//www.otyoltl�tdteemrry
PgadahIInt�CAyCotnd. f Eli.
As requr� Flaida Stable 1fi6.04](4yyc) the &Itiness inpact EstirtrttaateIt,is
poslalto8te t",ebsi�asaffffirtery2i,'1024.RmnbevierglatJj/
ckVddeedxbee.corVPJ*itcboehbA
BE ADVISED that shp d 1oti nerd to slur✓ arty dmtmert, pcU% vidw,
viRYrs Rothe CA)' Card'n st>pporty opPc�On m ary IHrt an the aq�rla�
a d the ddamat, piChre, tidm, a Them rtrA[ be `I Mad m the Cry
Clerkk CiyS rands ANY PEL90N DEWING TO APPEAL any de-
dvon made a'the aY Coed wIh respad; tT any rtta1G1 mnsdagl this
me�rg d need m etsue a eababnt rand d ryte pno�i"irg 6 nude and
the reoxd ndWa the testinorry and e�dace i.pm wttidt the appa3l wtN be
basad.ln a®rdande wBt theAmaiore wilft DisahilitiesAct, pesonswdt drs-
ab libm regig �spmaoaalI aommtnMw to partcpate in dtis shmid
mnmd.l7te OlyUe11c5 Cg in permn or call 8SM3-WI5, Lrpaied:
Fade Relay 7-1-1 no WWthan fdr bisnez days Prieto
By:Oty. Clerk Lare ,CMC
638830 WN 2121rM4