HomeMy WebLinkAboutO-15-01 Police Pension PlanORDINANCE NO. 0-15-01
AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA,
AMENDING AND RESTATING CHAPTER 58, LAW
ENFORCEMENT, ARTICLE III, POLICE OFFICERS'
RETIREMENT SYSTEM, SECTIONS 58-46 THRU 58-69,
INCLUSIVE, OF THE CODE OF ORDINANCES OF THE CITY
OF SEBASTIAN, FLORIDA; ESTABLISHING A "LOCAL LAW"
PENSION PLAN FOR POLICE OFFICERS TO BE KNOWN AS
THE CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT
SYSTEM; PROVIDING FOR DEFINITIONS; PROVIDING FOR
MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES;
PROVIDING FOR FINANCES AND FUND MANAGEMENT;
PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR
BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR
PRE -RETIREMENT DEATH BENEFITS; PROVIDING FOR
DISABILITY BENEFITS; PROVIDING FOR VESTING OF
BENEFITS; PROVIDING OPTIONAL FORMS OF BENEFITS;
PROVIDING FOR BENEFICIARIES; PROVIDING CLAIMS
PROCEDURES; PROVIDING FOR REPORTS TO THE DIVISION
OF RETIREMENT; PROVIDING FOR A ROSTER OF RETIREES;
PROVIDING FOR A MAXIMUM PENSION LIMITATION;
PROVIDING FOR MINIMUM DISTRIBUTION OF BENEFITS;
PROVIDING MISCELLANEOUS PROVISIONS; PROVIDING
FOR REPEAL OR TERMINATION OF THE SYSTEM;
PROVIDING FOR DOMESTIC RELATIONS ORDERS,
EXEMPTION FROM EXECUTION AND NON -ASSIGNABILITY;
PROVIDING FOR PENSION VALIDITY; PROVIDING FOR
FORFEITURE OF PENSION UNDER CERTAIN
CIRCUMSTANCES; PROVIDING FOR CONVICTION AND
FORFEITURE, FALSE, MISLEADING OR FRAUDULENT
STATEMENTS; PROVIDING FOR INDEMNIFICATION AND
DEFENSE OF CLAIMS; PROVIDING FOR DIRECT TRANSFERS
OF ELIGIBLE ROLLOVER DISTRIBUTIONS AND
ELIMINATION OF MANDATORY DISTRIBUTIONS;
PROVIDING FOR CODIFICATION; PROVIDING FOR
SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Sebastian police officers are presently provided pension benefits
pursuant to Chapter 185, Florida Statutes, and Ordinances of the City of Sebastian and;
WHEREAS, the City Council desires to establish a "local law" pension plan for police
officers to incorporate Federal law and the applicable provisions of Chapter 185, Florida Statutes;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SEBASTIAN, FLORIDA, that;
SECTION l: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement
System, Sections 58-46 thru 58-69, inclusive, of the Code of Ordinances of the City of Sebastian,
Florida, are hereby amended and restated in their entirety, to establish a "local law" pension plan for
police officers to be known as the CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT
SYSTEM, as set forth in the document attached hereto and made a part hereof.
SECTION 2: Specific authority is hereby granted to codify and incorporate this Ordinance
in the existing Code of Ordinances of the City of Sebastian.
SECTION 3: All Ordinances orparts of Ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 4: 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 otherbody
with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under
application shall not be affected thereby.
SECTION 5: That this Ordinance shall become effective upon adoption.
PASSED ON FIRST READING, this ck�5*1- day of� 2015
PASSED AND ADOPTED ON SECOND READING, this a5� day of
2015
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A OR
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CITY CLIORK
Approved as to form:
CITY ATTORNEY
CITY OF SEBASTIAN
POLICE OFFICERS' RETIREMENT SYSTEM
See. 58-46. Definitions.
(a) As used herein, unless otherwise defined or required by the context, the following
words and phrases shall have the meaning indicated:
Accumulated contributions means a member's own contributions without interest. For those
members who purchase credited service with interest or at no cost to the system, any payment
representing the amount attributable to member contributions based on the applicable member
contribution rate, and any payment representing interest and any required actuarially calculated
payments for the purchase of such credited service, shall be included in accumulated contributions.
Actuarial equivalent means a benefit or amount of equal value, based upon the RP 2000
Combined Healthy Mortality Table and an interest rate of seven and three quarters percent (7.75%)
per annum. This definition may only be amended by the city pursuant to the recommendation of the
board using the assumptions adopted by the board with the advice of the plan's actuary, such that
actuarial assumptions are not subject to city discretion.
Average final compensation means one -twelfth (1/12) of the average salary of the five (5)
best years of the last ten (10) years of credited service prior to retirement, termination, or death, or
the career average as a full-time Police officer, whichever is greater. A year shall be twelve (12)
consecutive months.
Beneficiary means the person or persons entitled to receive benefits hereunder at the death
of a member who has or have been designated in writing by the member and filed with the board.
If no such designation is in effect, or if no person so designated is living, at the time of death of the
member, the beneficiary shall be the estate of the member.
Board means the board of trustees, which shall administer and manage the system herein
provided and serve as trustees of the fund.
City means City of Sebastian, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited service means the total number of years and fractional parts of years of service as
a police officer with member contributions, when required, omitting intervening years or fractional
parts of years when such member was not employed by the city as a police officer. A member may
voluntarily leave his accumulated contributions in the fund for a period of five (5) years after leaving
the employ of the police department pending the possibility of being reemployed as a police officer,
without losing credit for the time that he was a member of the system. If a vested member leaves
the employ of the police department, his accumulated contributions will be returned only upon his
written request. If a member who is not vested is not reemployed as a police officer with the police
department within five (5) years, his accumulated contributions, if less than one -thousand dollars
($1,000.00) shall be returned. If a police officer who is not vested is not reemployed within five (5)
years, his Accumulated Contributions, if one -thousand dollars ($1,000.00) or more, will be returned
only upon the written request of the police officer and upon completion of a written election to
receive a cash lump sum or to rollover the lump sum amount on forms designated by the Board.
Upon return of a member's accumulated contributions, all of his rights and benefits under the system
are forfeited and terminated. Upon any reemployment, a police officer shall not receive credit for
the years and fractional parts of years of service for which he has withdrawn his accumulated
contributions from the fund, unless the police officer repays into the fund the contributions he has
withdrawn, with interest, as determined by the board, within ninety (90) days after his reemployment.
The years or fractional parts of a year that a member performs "Qualified Military Service"
consisting of voluntary or involuntary "service in the uniformed services" as defined in the
Uniformed Services Employment and Reemployment Rights Act (USERRA) (P.L.103-353), after
separation from employment as a police officer with the city to perform training or service, shall be
added to his years of credited service for all purposes, including vesting, provided that:
(1) The member is entitled to reemployment under the provisions of USERRA.
(2) The member returns to his employment as a police officer within one (1) year from
the earlier of the date of his military discharge or his release from active service,
unless otherwise required by USERRA.
(3) The maximum credit for military service pursuant to this paragraph shall be five (5)
years.
(4) This paragraph is intended to satisfy the minimum requirements of USERRA. To the
extent that this paragraph does not meet the minimum standards of USERRA, as it
may be amended from time to time, the minimum standards shall apply.
In the event a member dies on or afterJanuary 1, 2007, while performing USERRA Qualified
Military Service, the beneficiaries of the member are entitled to any benefits (other than benefit
accruals relating to the period of qualified military service) as if the member had resumed
employment and then died while employed.
Beginning January 1, 2009, to the extent required by section 414(u)(12) of the code, an
individual receiving differential wage payments (as defined under section 3401(h)(2) of the code)
from an employer shall be treated as employed by that employer, and the differential wage payment
shall be treated as compensation for purposes of applying the limits on annual additions under
section 415(c) of the code. This provision shall be applied to all similarly situated individuals in a
reasonably equivalent manner.
Fund means the trust fund established herein as part of the system.
Member means an actively employed police officer who fulfills the prescribed membership
requirements. Benefit improvements which, in the past, have been provided for by amendments to
the system adopted by city ordinance, and any benefit improvements which might be made in the
future shall apply prospectively and shall not apply to members who terminate employment or who
retire prior to the effective date of any ordinance adopting such benefit improvements, unless such
ordinance specifically provides to the contrary.
Plan year means the twelve (12) month period beginning October 1 and ending September
30 of the following year.
Police Officer means an actively employed full-time person, employed by the City, including
his initial probationary employment period, who is certified as a police officer as a condition of
employment in accordance with the provisions of §943.1395, Florida Statutes, who is vested with
authority to bear arms and make arrests, and whose primary responsibility is the prevention and
detection of crime or the enforcement of the penal, traffic, or highway laws of the State of Florida
Retiree means a member who has entered retirement status.
Retirement means a member's separation from city employment with eligibility for immediate
receipt of benefits under the system.
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Salary means the total compensation for services rendered to the city as a police officer
reportable on the member's W-2 form plus all tax deferred, tax sheltered, or tax exempt items of
income derived from elective employee payroll deductions or salary reductions but excluding
accrued sick leave and vacation pay. For service earned on or after July 1, 2011, Salary shall not
include more than three hundred (300) hours of overtime per calendar year. Provided however, in
any event, payments for overtime in excess of three hundred (300) hours per year accrued as of July
1, 2011 and attributable to service earned prior to the July 1, 2011, may still be included in Salary
for pension purposes even if the payment is not actually made until on or after July 1, 2011. In any
event, with respect to unused sick leave and unused annual leave accrued prior to July 1, 2011,
Salary will include the lesser of the amount of sick or annual leave time accrued on July 1, 2011 or
September 6, 2013, whichever is less. Should the sick leave or the annual leave accruals decrease
below the capped amount, accruals used for the pension calculation shall not increase and the lower
accrual amount will be used in the pension calculation formula based on the rate of pay in effect on
July 1, 2011.
Compensation in excess of the limitations set forth in Section 401(a)(17) of the code as of
the first day of the plan year shall be disregarded for any purpose, including employee contributions
or any benefit calculations. The annual compensation of each member taken into account in
determining benefits or employee contributions for any plan year beginning on or after January 1,
2002, may not exceed $200,000, as adjusted for cost -of -living increases in accordance with Code
Section 401(a)(17)(B). Compensation means compensation during the fiscal year. The cost -of -
living adjustment in effect for a calendar year applies to annual compensation for the determination
period that begins with or within such calendar year. If the determination period consists of fewer
than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual
compensation limit multiplied by a fraction, the numerator of which is the number of months in the
short determination period, and the denominator of which is 12. If the compensation for any prior
determination period is taken into account in determining a member's contributions or benefits for
the current plan year, the compensation for such prior determination period is subject to the
applicable annual compensation limit in effect for that prior period. The limitation on compensation
for an "eligible employee" shall not be less than the amount which was allowed to be taken into
account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a
member before the first plan year beginning after December 31, 1995.
Spouse means the lawful wife or husband of a member or retiree at the time benefits become
payable.
System means the City of Sebastian Police Officers' Retirement System as contained herein
and all amendments thereto.
(b) Masculine gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
Sec. 58-47. Membership.
(a) Conditions ofeligibility. All police officers as of October 1, 1989, and all future new
police officers, shall become members of this system as a condition of employment.
(b) Designation ofbenef:ciary. Each police officer shall complete a forn prescribed by
the board designating a beneficiary or beneficiaries.
See. 58-48. Board of trustees
(a) The sole and exclusive administration of and responsibility for the proper operation
of the system and for making effective the provisions of this ordinance is hereby vested in a board
of trustees. The board is hereby designated as the plan administrator. The board shall consist of five
(5) trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal residents of the city,
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who shall be appointed by the Sebastian City Council, and two (2) of whom shall be members of the
system, who shall be elected by a majority of the police officers who are members of the system.
The fifth trustee shall be chosen by a majority of the previous four (4) trustees as provided for herein,
and such person's name shall be submitted to the Sebastian City Council. Upon receipt of the fifth
person's name, the Sebastian City Council shall, as a ministerial duty, appoint such person to the
board as its fifth trustee. The fifth trustee shall have the same rights as each of the other four (4)
trustees appointed or elected as herein provided and shall serve a four (4) year term unless he sooner
vacates the office. Each resident trustee shall serve as trustee for a period of four (4) years, unless
he sooner vacates the office or is sooner replaced by the Sebastian City Council at whose pleasure
he shall serve. Each member trustee shall serve as trustee for a period of four (4) years, unless he
sooner leaves the employment of the city as a police officer or otherwise vacates his office as trustee,
whereupon a successor shall be chosen in the same manner as the departing trustee. Each trustee
may succeed himself in office. The board shall establish and administer the nominating and election
procedures for each election. 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.
(b) The trustees shall, by a majority vote, elect a chairman and a secretary. The secretary
of the board shall keep a complete minute book of the actions, proceedings, or hearings of the board.
The trustees shall not receive any compensation as such, but may receive expenses and per diem as
provided by law.
(c) 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 F.S.
§ 112.3143.
(d) The board shall engage such actuarial, accounting, legal, and other services as shall
be required to transact the business of the system. The compensation of all persons engaged by the
board and all other expenses of the board necessary for the operation of the system shall be paid from
the fund at such rates and in such amounts as the board shall agree. In the event the board chooses
to use the city's legal counsel, actuary or other professional, technical or other advisors, it shall do
so only under terms and conditions acceptable to the board.
(e) The duties and responsibilities of the board shall include, but not necessarily be
limited to, the following:
(1) To construe the provisions of the system and determine all questions arising
thereunder.
(2) To determine all questions relating to eligibility and membership.
(3) To determine and certify the amount of all retirement allowances or other benefits
hereunder.
(4) To establish uniform rules and procedures to be followed for administrative purposes,
benefit applications and all matters required to administer the system.
(5) To distribute to members, at regular intervals, information concerning the system.
(6) To receive and process all applications for benefits.
(7) To authorize all payments whatsoever from the fund, and to notify the disbursing
agent, in writing, of approved benefit payments and other expenditures arising
through operation of the system and fund.
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(8) To have performed actuarial studies and valuations, at least as often as required by
law, and make recommendations regarding any and all changes in the provisions of
the system.
(9) To perform such other duties as are required to prudently administer the system.
Sec. 58-49. Finances and fund management.
Establishment and operation of find.
(a) As part of the system, there is hereby established the fund, into which shall be
deposited all of the contributions and assets whatsoever attributable to the system, including the
assets of the prior police officers' Retirement System.
(b) The actual custody and supervision of the fund (and assets thereof) shall be vested
in the board. Payment of benefits and disbursements from the fund shall be made by the disbursing
agent but only upon written authorization from the board.
(c) All funds of the Police Officers' Retirement System may be deposited by the board
with the Finance Director of the city, acting in a ministerial capacity only, who shall be liable in the
same manner and to the same extent as he is liable for the safekeeping of funds for the city.
However, any funds so deposited with the Finance Director of the city shall be kept in a separate
fund by the Finance Director or clearly identified as such funds of the Police Officers' Retirement
System. In lieu thereof, the board shall deposit the funds of the Police Officers' Retirement System
in a qualified public depository as defined in F.S. § 280.02, which depository with regard to such
funds shall conform to and be bound by all of the provisions of F.S. ch. 280. In order to fulfill its
investment responsibilities as set forth herein, the board may retain the services of custodian bank,
an investment advisor registered under the Investment Advisors Act of 1940 or otherwise exempt
from such required registration, an insurance company, or a combination of these, for the purposes
of investment decisions and management. Such investment manager shall have discretion, subject
to any guidelines as prescribed by the board, in the investment of all fund assets.
(d) All funds and securities of the system may be commingled in the fund, provided that
accurate records are maintained at all times reflecting the financial composition of the fund,
including accurate current accounts and entries as regards the following:
(1) Current amounts of accumulated contributions ofinembers on both an individual and
aggregate account basis, and
(2) Receipts and disbursements, and
(3) Benefit payments, and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever
attributable to contributions and deposits from the city, and
(5) All interest, dividends and gains (or losses) whatsoever, and
(6) Such other entries as may be properly required so as to reflect a clear and complete
financial report of the fund.
(e) An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the system showing a detailed listing of assets and a statement of all income and
disbursements during the year. Such income and disbursements must be reconciled with the assets
at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on
both a cost and market basis, as well as other items normally included in a certified audit.
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(f) The board shall have the following investment powers and authority
(1) The board shall be vested with full legal title to said fund, subject, however, and in
any event to the authority and power of the Sebastian City Council to amend or
terminate this fund, provided that no amendment or fund termination shall ever result
in the use of any assets of this fund except for the payment of regular expenses and
benefits under this system, except as otherwise provided herein. All contributions
from time to time paid into the fund, and the income thereof, without distinction
between principal and income, shall be held and administered by the board or its
agent in the fund and the board shall not be required to segregate or invest separately
any portion of the fund.
(2) All monies paid into or held in the Fund shall be invested and reinvested by the
Board and the investment of all or any part of such funds shall be subject to the
following:
a. Notwithstanding any limitation provided for in Chapter 185, Florida Statutes,
to the contrary (unless such limitation may not be amended by local
ordinance) or any limitation in prior city ordinances to the contrary, all
monies paid into or held in the Fund may be invested and reinvested in such
securities, investment vehicles or property wherever situated and ofwhatever
kind, as shall be approved by the Board, including but not limited to common
or preferred stocks, bonds, and other evidences of indebtedness or ownership.
In no event, however, shall more than twenty-five percent of the assets of the
Fund at market value be invested in foreign securities.
b. The Board shall develop and adopt a written investment policy statement
setting forth permissible types of investments, goals and objectives of
investments and setting quality and quantity limitations on investments in
accordance with the recommendations of its investment consultants. The
investment policy statement shall be reviewed by the Board at least annually.
C. In addition, the Board may, upon recommendation by the Board's investment
consultant, make investments in group trusts meeting the requirements of
Internal Revenue Service Revenue Ruling 81-100 and Revenue Ruling 2011-
1 or successor rulings or guidance of similar import, and operated or
maintained exclusively for the commingling and collective investment of
monies, provided that the funds in the group trust consist exclusively of trust
assets held under plans qualified under Section 401(a) of the Code, individual
retirement accounts that are exempt under Section 408(e) of the Code,
eligible governmental plans that meet the requirements of Section 457(b) of
the Code, and governmental plans under 401(a)(24) of the Code. For this
purpose, a trust includes a custodial account that is treated as a trust under
Section 401 (1) or under Section 457(8)(3) of the Code. While any portion of
the assets of the Fund are invested in such a group trust, such group trust is
itself adopted as a part of the system or plan.
(3) At least once every three (3) years, and more often as determined by the board, the
board shall retain a professionally qualified independent consultant, as defined in F.S.
§ 185.06, to evaluate the performance of all current investment managers and make
recommendations regarding the retention of all such investment managers. These
recommendations shall be considered by the board at its next regularly scheduled
meeting.
(4) The board may retain in cash and keep unproductive of income such amount of the
fund as it may deem advisable, having regard for the cash requirements of the system.
M
(5) Neither the board nor any trustee shall be liable for the making, retention or sale of
any investment or reinvestment made as herein provided, nor for any loss or
diminishment of the fund, except that due to his or its own negligence, willful
misconduct or lack of good faith.
(6) The board may cause any investment in securities held by it to be registered in or
transferred into its name as trustee or into the name of such nominee as it may direct,
or it may retain them unregistered and in form permitting transferability, but the
books and records shall at all times show that all investments are part of the fund.
(7) The board is empowered, but is not required, to vote upon any stocks, bonds, or
securities of any corporation, association, or trust and to give general or specific
proxies or powers of attorney with or without power of substitution; to participate in
mergers, reorganizations, recapitalizations, consolidations, and similar transactions
with respect to such securities; to deposit such stock or other securities in any voting
trust or any protective or like committee with the trustees or with depositories
designated thereby; to amortize or fail to amortize any part or all of the premium or
discount resulting from the acquisition or disposition of assets; and generally to
exercise any of the powers of an owner with respect to stocks, bonds, or other
investments comprising the fund which it may deem to be to the best interest of the
fund to exercise.
(8) The board shall not be required to make any inventory or appraisal or report to any
court, nor to secure any order of court for the exercise of any power contained herein.
(9) Where any action which the board is required to take or any duty or function which
it is required to perform either under the terms herein or under the general law
applicable to it as trustee under this ordinance, can reasonably be taken or performed
only after receipt by it from a member, the city, or any other entity, of specific
information, certification, direction or instructions, the board shall be free of liability
in failing to take such action or perform such duty or function until such information,
certification, direction or instruction has been received by it.
(10) Any overpayments or underpayments from the fund to a member, retiree or
beneficiary caused by errors of computation shall be adjusted with interest at a rate
per annum approved by the board in such a manner that the actuarial equivalent of
the benefit to which the member, retiree or beneficiary was correctly entitled, shall
be paid. Overpayments shall be charged against payments next succeeding the
correction or collected in another manner if prudent. Underpayments shall be made
up from the fund in a prudent manner.
(11) The board shall sustain no liability whatsoever for the sufficiency of the fund to meet
the payments and benefits provided for herein.
(12) In any application to or proceeding or action in the courts, only the board shall be a
necessary party, and no member or other person having an interest in the fund shall
be entitled to any notice or service of process. Any judgment entered in such a
proceeding or action shall be conclusive upon all persons.
(13) Any of the foregoing powers and functions reposed in the board may be performed
or carried out by the board through duly authorized agents, provided that the board
at all times maintains continuous supervision over the acts of any such agent;
provided further, that legal title to said fund shall always remain in the board.
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See. 58-50. Contributions.
(a) Member contributions
(1) Ansount. Each member of the system shall be required to make regular contributions
to the fund in the amount of five percent (5%) of his salary, except effective October
1, 2012 each member of the system, hired prior to October 1, 2011, shall be required
to make regular contributions to the fund in the amount of eight percent (8%) of his
salary. Police officer contributions withheld by the city on behalf of the member
shall be deposited with the board immediately after each pay period. The contribu-
tions made by each member to the fund shall be designated as employer contributions
pursuant to §414(h) of the code. Such designation is contingent upon the
contributions being excluded from the members' gross income for Federal Income
Tax purposes. For all other purposes of the system, such contributions shall be
considered to be member contributions.
(2) Method. Such contributions shall be made by payroll deduction
(b) State contributions. Any monies received or receivable by reason of laws of the State
of Florida, for the express purpose of funding and paying for retirement benefits for police officers
of the city shall be deposited in the fund comprising part of this system immediately and under no
circumstances more than five (5) days after receipt by the city.
(c) City contributions. So long as this system is in effect, the city shall make quarterly
contributions to the fund in an amount equal to the required city contribution, as shown by the
applicable actuarial valuation of the system.
(d) Other. Private donations, gifts and contributions may be deposited to the fund, but
such deposits must be accounted for separately and kept on a segregated bookkeeping basis. funds
arising from these sources may be used only for additional benefits for members, as determined by
the board, and may not be used to reduce what would have otherwise been required city contribu-
tions.
Sec. 58-51. Benefit amounts and eligibility.
(a) Normal retirement date. A member's normal retirement date shall be the first day of
the month coincident with, or next following the earlier of the attainment of age fifty-five (55) and
the completion of ten (10) years of Credited Service or the attainment of age fifty-two (52) and the
completion of twenty-five (25) years of Credited Service. A member may retire on his normal
retirement date or on the first day of any month thereafter, and each member shall become one
hundred (100) percent vested in his accrued benefit on the member's normal retirement date. Normal
retirement under the system is retirement from employment with the city on or after the normal
retirement date.
(b) Normal retirement benefit. The amount of the monthly retirement income payable
to a member hired who retires subsequent to May 31, 2002 and on or after his normal retirement date
shall be an amount equal to the number of the members years of credited service multiplied by three
(3) percent ofhis average final compensation. Notwithstanding the preceding sentence, formembers
hired on or after April 11, 2012, the amount of the monthly retirement income payable to a member
who retires on or after his normal retirement date shall be an amount equal to the number of the
members years of credited service multiplied by two (2) percent of his average final compensation.
(c) Early retirement date. A member may retire on his early retirement date which shall
be the first day of any month coincident with or next following the attainment of age fifty (50) and
the completion often (10) years of Credited Service. Early retirement under the system is retirement
from employment with the city on or after the early retirement date and prior to the nonnal
retirement date.
(d) Early retirement benefit. A member retiring hereunder on his early retirement date
may receive either a deferred or an immediate monthly retirement benefit payable in the same form
as for normal retirement as follows:
(1) A deferred monthly retirement benefit which shall commence on what would have
been his normal retirement date had he continued employment as a police officer and
shall be continued on the first day of each month thereafter. The amount of each
such deferred monthly retirement benefit shall be determined in the same manner as
for retirement on his normal retirement date except that credited service and average
final compensation shall be determined as of his early retirement date; or
(2) An immediate monthly retirement benefit which shall commence on his early
retirement date and shall be continued on the first day of each month thereafter. The
benefit payable shall be as determined in paragraph (1) above, determined as if he
had remained employed, reduced by three (3) percent for each year by which the
commencement of benefits precedes the date which would have been the police
officer's normal retirement date had he continued employment as a police officer.
(e) Required distribution date. The member's benefit under this section must begin to
be distributed to the member no later than April 1 of the calendar year following the later of the
calendar year in which the member attains age seventy and one-half (70'/2) or the calendar year in
which the member terminates employment with the city.
Sec. 58-52. Pre -retirement death.
(a) Prior to vesting or eligibilityfor retirement. The beneficiary of a deceased member
who was not receiving monthly benefits or who was not yet vested or eligible for early or normal
retirement shall receive a refund of one hundred (100) percent of the member's accumulated
contributions.
(b) Deceased members vested or eligible forretirement with spouse as beneftciaq. This
subsection (b) applies only when the member's spouse is the sole designated beneficiary. The spouse
beneficiary of any member who dies and who, at the date of his death was vested or eligible for early
or normal retirement, shall be entitled to a benefit as follows:
(1) If the member was vested, but not eligible for normal or early retirement, the spouse
beneficiary shall receive a benefit payable for ten (10) years, beginning on the date
that the deceased member would have been eligible for early or normal retirement,
at the option of the spouse beneficiary. The benefit shall be calculated as for normal
retirement based on the deceased member's credited service and average final
compensation as of the date of his death and reduced as for early retirement, if
applicable. The spouse beneficiary may also elect to receive an immediate benefit,
payable for ten (10) years, which is actuarially reduced to reflect the commencement
of benefits prior to the early retirement date.
(2) If the deceased member was eligible for normal or early retirement, the spouse
beneficiary shall receive a benefit payable for ten (10) years, beginning on the first
day of the month following the member's death or at the deceased member's
otherwise early or normal retirement date, at the option of the spouse beneficiary.
The benefit shall be calculated as for normal retirement based on the deceased
member's credited service and average final compensation as of the date of his death
and reduced as for early retirement, if applicable.
(3) A spouse beneficiary may not elect an optional form of benefit, however, the board
may elect to make a lump sum payment pursuant to Sec. 58-55, subsection (g).
M
(4) A spouse beneficiary may, in lieu of any benefit provided for in (1) or (2) above, elect
to receive a refund of the deceased member's accumulated contributions.
(5) Notwithstanding anything contained in this section to the contrary, in any event,
distributions to the spouse beneficiary will begin by December 31 of the calendar
year immediately following the calendar year in which the member died, or by a date
selected pursuant to the above provisions in this section that must be on or before
December 31 of the calendar year in which the member would have attained 70%.
(6) If the surviving spouse beneficiary commences receiving a benefit under subsection
(1) or (2) above, but dies before all payments are made, the actuarial value of the
remaining benefit will be paid to the spouse beneficiary's estate in a lump sum.
(c) Deceased Members Vested or Eligible for Retirement with Non -Spouse Beneficiary.
This subsection applies only when the member's spouse is not the beneficiary or is not the sole
designated beneficiary, but there is a surviving beneficiary. The beneficiary of any member who dies
and who, at the date of his death was vested or eligible for early or non -nal retirement, shall be
entitled to a benefit as follows:
(1) If the member was vested, but not eligible for normal or early retirement, the
beneficiary will receive a benefit payable for ten (10) years. The benefit will begin
by December 31 of the calendar year immediately following the calendar year in
which the member died. The benefit will be calculated as for normal retirement
based on the deceased member's credited service and average final compensation and
actuarially reduced to reflect the commencement of benefits prior to the normal
retirement date.
(2) If the deceased member was eligible for normal or early retirement, the beneficiary
will receive a benefit payable for ten (10) years, beginning on the first day of the
month following the member's death. The benefit will be calculated as for normal
retirement based on the deceased member's credited service and average final
compensation as of the date of his death and reduced for early retirement, if
applicable.
(3) A beneficiary may not elect an optional form of benefit, however the board may elect
to make a lump sum payment pursuant to Sec. 58-55, subsection (g).
(4) A beneficiary, may, in lieu of any benefit provided for in (1) or (2) above, elect to
receive a refund of the deceased member's accumulated contributions.
(5) If a surviving beneficiary commences receiving a benefit under subsection (1) or (2)
above, but dies before all payments are made, the actuarial value of the remaining
benefit will be paid to the surviving beneficiary's estate by December 31 of the
calendar year of the beneficiary's death in a lump sum.
(6) If there is no surviving beneficiary as of the member's death, and the estate is to
receive the benefits, the actuarial equivalent of the member's entire interest must be
distributed by December 31 of the calendar year containing the fifth anniversary of
the member's death.
(7) The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9 shall determine
the payment period for the calendar year benefits commence, if necessary to satisfy
the regulations.
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See. 58-53. Disability.
(a) Disability benefits in-line of duty. Any member who shall become totally and per-
manently disabled to the extent that he is unable, by reason of a medically determinable physical or
mental impairment, to render useful and efficient service as a police officer, which disability was
directly caused by the performance of his duty as a police officer, shall, upon establishing the same
to the satisfaction of the board, be entitled to a monthly pension equal to the benefit accrual rate
calculated pursuant to section 58-51., Benefit amounts and eligibility, subsection (b), Normal
retirement benefit, but in any event the minimum amount paid to the member shall be forty-two (42)
percent of the average final compensation of the police officer. Terminated persons, either vested
or non -vested, are not eligible for disability benefits. Notwithstanding the previous sentence, if a
member is terminated by the city for medical reasons, the terminated person may apply for a
disability benefit if the application is filed with the board within thirty (30) days from the date of
termination. If a timely application is received, it shall be processed and the terminated person shall
be eligible to receive a disability benefit if the board otherwise determines that he is totally and
permanently disabled as provided for above.
(b) In-line of duty presumptions
(1) Presumption. Any condition or impairment of health of a member caused by
hypertension or heart disease shall be presumed to have been suffered in line of duty
unless the contraryis shown by competent evidence, provided that such member shall
have successfully passed a physical examination upon entering into such service,
including cardiogram, which examination failed to reveal any evidence of such
condition; and provided further, that such presumption shall not apply to benefits
payable or granted in a policy of life insurance or disability insurance.
(2) Additional presumption. The presumption provided for in this paragraph (2) shall
apply only to those conditions described in this paragraph (2) that are diagnosed on
or after January 1, 1996.
a. Definitions. As used in this subsection (b)(2), the following definitions
apply:
"Body fluids" means blood and body fluids containing visible blood
and other body fluids to which universal precautions for prevention
of occupational transmission ofblood-bome pathogens, as established
by the Centers for Disease Control, apply. For purposes of potential
transmission of meningococcal meningitis or tuberculosis, the term
"body fluids" includes respiratory, salivary, and sinus fluids,
including droplets, sputum, and saliva, mucous, and other fluids
through which infectious airborne organisms can be transmitted
between persons.
2. "Emergency rescue or public safety member" means any member
employed full time by the city as a firefighter, paramedic, emergency
medical technician, law enforcement officer, or correctional officer
who, in the course of employment, runs a high risk of occupational
exposure to hepatitis, meningococcal meningitis, or tuberculosis and
who is not employed elsewhere in a similar capacity. However, the
term "emergency rescue or public safety member" does not include
any person employed by a public hospital licensed under F.S. ch. 395,
or any person employed by a subsidiary thereof.
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3. "Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A, hepatitis
non-B, hepatitis C, or any other strain of hepatitis generally
recognized by the medical community.
4. "High risk of occupational exposure" means that risk that is incurred
because a person subject to the provisions of this subsection, in
performing the basic duties associated with his employment:
i. Provides emergency medical treatment in a non -health-care
setting where there is a potential for transfer of body fluids
between persons;
ii. At the site of an accident, fire, or other rescue or public safety
operation, or in an emergency rescue or public safety vehicle,
handles body fluids in or out of containers or works with or
otherwise handles needles or other sharp instruments exposed
to body fluids;
iii. Engages in the pursuit, apprehension, and arrest of law
violators or suspected law violators and, in performing such
duties, may be exposed to body fluids; or
iv. Is responsible for the custody, and physical restraint when
necessary, of prisoners or inmates within a prison, jail, or
other criminal detention facility, while on work detail outside
the facility, or while being transported and, in performing
such duties, may be exposed to body fluids.
5. "Occupational exposure," in the case of hepatitis, meningococcal
meningitis, or tuberculosis, means an exposure that occurs during the
performance of job duties that may place a worker at risk of infection.
Presumption. Any emergency rescue or public safety member who suffers
a condition or impairment of health that is caused by hepatitis, meningo-
coccal meningitis, or tuberculosis, that requires medical treatment, and that
results in total or partial disability or death shall be presumed to have a
disability suffered in the line of duty, unless the contrary is shown by
competent evidence; however, in order to be entitled to the presumption, the
member must, by written affidavit as provided in F.S. §92.50, verify by
written declaration that, to the best of his knowledge and belief:
In the case of a medical condition caused by or derived from hepatitis,
he has not:
Been exposed, through transfer of bodily fluids, to any person
known to have sickness or medical conditions derived from
hepatitis, outside the scope of his employment;
Had a transfusion of blood or blood components, other than
a transfusion arising out of an accident or injury happening in
connection with his present employment, or received any
blood products for the treatment of a coagulation disorder
since last undergoing medical tests for hepatitis, which tests
failed to indicate the presence of hepatitis;
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iii. Engaged in unsafe sexual practices or other high-risk
behavior, as identified by the Centers for Disease Control or
the Surgeon General of the United States or had sexual
relations with a person known to him to have engaged in such
unsafe sexual practices or other high-risk behavior; or
iv. Used intravenous drugs not prescribed by a physician.
2. In the case of meningococcal meningitis, in the ten (10) days immedi-
ately preceding diagnosis he was not exposed, outside the scope of his
employment, to any person known to have meningococcal meningitis
or known to be an asymptomatic carrier of the disease.
In the case of tuberculosis, in the period of time since the member's
last negative tuberculosis skin test, he has not been exposed, outside
the scope of his employment, to any person known by him to have
tuberculosis.
C. Immunization. Whenever any standard, medically recognized vaccine or
other form of immunization or prophylaxis exists for the prevention of a
communicable disease for which a presumption is granted under this section,
if medically indicated in the given circumstances pursuant to immunization
policies established by the Advisory Committee on Immunization Practices
of the U.S. Public Health Service, an emergency rescue or public safety
member may be required by the city to undergo the immunization or
prophylaxis unless the member's physician determines in writing that the
immunization or other prophylaxis would pose a significant risk to the
member's health. Absent such written declaration, failure or refusal by an
emergency rescue or public safety member to undergo such immunization or
prophylaxis disqualifies the member from the benefits of the presumption.
d. Record of exposures. The city shall maintain a record of any known or
reasonably suspected exposure of an emergency rescue or public safety
member in its employ to the disease described in this section and shall
immediately notify the member of such exposure. An emergency rescue or
public safety member shall file an incident or accident report with the city of
each instance of known or suspected occupational exposure to hepatitis
infection, meningococcal meningitis, or tuberculosis.
e. Required medical tests; preemployment physical. In order to be entitled to
the presumption provided by this section:
An emergency rescue or public safety member must, prior to
diagnosis, have undergone standard, medically acceptable tests for
evidence of the communicable disease for which the presumption is
sought, or evidence of medical conditions derived therefrom, which
tests fail to indicate the presence of infection. This paragraph does not
apply in the case of meningococcal meningitis.
On or after June 15, 1995, an emergency rescue or public safety
member may be required to undergo a preemployment physical
examination that tests for and fails to reveal any evidence of hepatitis
or tuberculosis.
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(c) Disability benefits not -in -fine of dirty. Any member with ten (10) years or more
credited service who shall become totally and permanently disabled to the extent that he is unable,
by reason of a medically determinable physical or mental impairment, to render useful and efficient
service as a police officer, which disability is not directly caused by the performance of his duties
as a police officer shall, upon establishing the same to the satisfaction of the board, be entitled to a
monthly pension equal to the benefit accrual rate calculated pursuant to section 58-51., Benefit
amounts and eligibility, subsection (b), Normal retirement benefit. In no event, however, shall the
benefit be less than the greater of two (2) percent of Average Final Compensation for each year of
Credited Service or twenty-five (25) percent of Average Final Compensation. Terminated persons,
either vested or non -vested, are not eligible for disability benefits. Notwithstanding the previous
sentence, if a member is terminated by the city for medical reasons, the terminated person may apply
for a disability benefit if the application is filed with the board within thirty (30) days from the date
of termination. If a timely application is received, it shall be processed and the terminated person
shall be eligible to receive a disability benefit if the board otherwise determines that he is totally and
permanently disabled as provided for above.
(d) Conditions disqualifiingdisability benefits. Each member who is claiming disability
benefits shall establish, to the satisfaction of the board, that such disability was not occasioned
primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
(2) Injury or disease sustained while willfully and illegally participating in fights, riots
or civil insurrections or while committing a crime.
(3) Injury or disease sustained while serving in any branch of the Armed Forces.
(4) Injury or disease sustained by the member after his employment as a police officer
with the city of Sebastian shall have terminated.
(5) Injury or disease sustained by the member while working for anyone other than the
city and arising out of such employment.
(e) Physical examination requirement. A member shall not become eligible for disability
benefits until and unless he undergoes a physical examination by a qualified physician or physicians
and/or surgeon or surgeons, who shall be selected by the board for that purpose. The board shall not
select the member's treating physician or surgeon for this purpose except in an unusual case where
the board determines that it would be reasonable and prudent to do so.
Any retiree receiving disability benefits under provisions of this ordinance may be
required by the board to submit sworn statements of his condition accompanied by a physician's
statement (provided at the retiree's expense) to the board annually and may be required by the board
to undergo additional periodic re-examinations by a qualified physician or physicians and/or surgeon
or surgeons who shall be selected by the board, to determine if such disability has ceased to exist.
If the board finds that the retiree is no longer permanently and totally disabled to the extent that he
is unable to render useful and efficient service as a police officer, the board shall recommend to the
city that the retiree be returned to performance of duty as a police officer, and the retiree so returned
shall enjoy the same rights that he had at the time he was placed upon pension. In the event the
retiree so ordered to return shall refuse to comply with the order within thirty (30) days from the
issuance thereof, he shall forfeit the right to his pension.
The cost of the physical examination and/or re-examination of the member claiming
or the retiree receiving disability benefits shall be borne by the fund. All other reasonable costs as
determined by the board incident to the physical examination, such as, but not limited to,
transportation, meals and hotel accommodations, shall be borne by the fund.
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If the retiree recovers from disability and reenters the service of the city as a police
officer, his service will be deemed to have been continuous, but the period beginning with the first
month for which he received a disability retirement income payment and ending with the date he
reentered the service of the city will not be considered as credited service for the purposes of the
system.
The board shall have the power and authority to make the final decisions regarding
all disability claims.
(f) Disability payments. The monthly benefit to which a member is entitled in the event
of the member's disability retirement shall be payable on the first day of the first month after the
board determines such entitlement. However, the monthly retirement income shall be payable as of
the date the board determined such entitlement, and any portion due for a partial month shall be paid
together with the first payment. The last payment will be:
(1) If the retiree recovers from the disability, the payment due next preceding the date of
such recovery, or
(2) If the retiree dies without recovering from disability, the payment due next preceding
his death or the 120th monthly payment, whichever is later.
Provided, however, the disability retiree may select, at any time prior to the date on
which benefit payments begin, an optional form of benefit payment as described in section 58-55,
subsection (a)(1) or (a)(2), which shall be the actuarial equivalent of the normal form of benefit.
(g) Benefit offsets. When a retiree is receiving a disability pension and workers' compen-
sation benefits pursuant to F.S. ch. 440 or Social Security disability benefits for the same disability,
and the total monthly benefits received from both exceed one hundred (100) percent of the member's
average monthly wage, as defined in F.S. ch. 440, the disability pension benefit shall be reduced so
that the total monthly amount received by the retiree does not exceed one hundred (100) percent of
such average monthly wage. The amount of any lump sum workers' compensation payment shall
be converted to an equivalent monthly benefit payable for ten (10) years certain by dividing the lump
sum amount by 83.9692. Notwithstanding the foregoing, in no event shall the disability pension
benefit be reduced below the greater of forty-two (42) percent of average final compensation or two
(2) percent of average final compensation times years of credited service.
See. 58-54. Vesting.
If a member terminates his employment as a Police Officer, either voluntarily or by
discharge, and is not eligible for any other benefits under this system, the member shall be entitled
to the following:
(a) If the member has less than ten (10) years credited service upon termination, the
member shall be entitled to a refund of his accumulated contributions or the member may leave it
deposited with the fund.
(b) If the member has ten (10) or more years of credited service upon termination, the
member shall be entitled to a monthly retirement benefit, determined in the same manner as for
normal or early retirement and based upon the member's credited service, average final compensation
and the benefit accrual rate as of the date of termination, payable to him commencing at the
member's otherwise normal or early retirement date, determined as if he had remained employed,
provided he does not elect to withdraw his accumulated contributions and provided the member
survives to his otherwise normal or early retirement date. If the member does not withdraw his
accumulated contributions and does not survive to his otherwise normal or early retirement date, his
designated beneficiary shall be entitled to a benefit as provided herein for a deceased member, vested
or eligible for retirement under pre -retirement death.
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See. 58-55. Optional forms of benefits.
(a) In lieu of the amount and form of retirement income payable in the event of normal
or early retirement as specified herein, a member, upon written request to the board, may elect to
receive a retirement income or benefit of equivalent actuarial value payable in accordance with one
(1) of the following options:
A retirement income of a monthly amount payable to the retiree for his lifetime only
(2) A retirement income of a modified monthly amount, payable to the retiree during the
lifetime of the retiree and following the death of the retiree, one hundred (100)
percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent or fifty
(50) percent of such monthly amount payable to a joint pensioner for his lifetime.
Except where the Retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of the payments to the Retiree shall not exceed the
applicable percentage provided for in the applicable table in the Treasury regulations.
(See Q & A-2 of 1.401(a)(9)-6)
(3) If a member retires prior to the time at which social security benefits are payable, he
may elect to receive an increased retirement benefit until such time as social security
benefits shall be assumed to commence and a reduced benefit thereafter in order to
provide, to as great an extent as possible, a more level retirement allowance during
the entire period of retirement. The amounts payable shall be as recommended by
the actuaries for the system, based upon the social security law in effect at the time
of the member's retirement.
(4) A member may elect a percentage of benefit in a lump sum as follows:
a. Five (5) percent of the total actuarial equivalent value of the benefit paid as
a lump sum with the remaining ninety-five (95) percent paid under the
normal form or as per (1), (2) or (3) above.
b. Ten (10) percent of the total actuarial equivalent value of the benefit paid as
a lump sum with the remaining ninety (90) percent paid under the normal
form or as per (1), (2) or (3) above.
C. Fifteen (l 5) percent of the total actuarial equivalent value of the benefit paid
as a lump sum with the remaining eighty-five (85) percent paid under the
normal form or as per (1), (2) or (3) above.
d. Twenty (20) percent of the total actuarial equivalent value of the benefit paid
as a lump sum with the remaining eighty (80) percent paid under the normal
form or as per (1), (2) or (3) above.
e. Twenty-five (25) percent of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining seventy-five (75) percent paid under
the normal form or as per (1), (2) or (3) above.
(b) The member, upon electing any option of this section, will designate the joint
pensioner (subsection (a)(2) above) or beneficiary (or beneficiaries) to receive the benefit, if any,
payable under the system in the event of member's death, and will have the power to change such
designation from time to time. Such designation will name a joint pensioner or one (1) or more
primary beneficiaries where applicable. A member may change his beneficiary at any time. If a
member has elected an option with a joint pensioner and member's retirement income benefits have
commenced, member may thereafter change his designated beneficiary at any time, but may only
change his joint pensioner twice. Subject to the restriction in the previous sentence, a member may
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substitute a new joint pensioner for a deceased joint pensioner. In the absence of good health of joint
pensioner being replaced, the actuary will assume that the joint pensioner has deceased for purposes
of calculating the new payment.
(c) The consent of a member's or retiree's joint pensioner or beneficiary to any such
change shall not be required. The rights of all previously -designated beneficiaries to receive benefits
under the system shall thereupon cease.
(d) Upon change of a retiree's joint pensioner in accordance with this section, the amount
of the retirement income payable to the retiree shall be actuarially redetermined to take into account
the age of the former joint pensioner, the new joint pensioner and the retiree and to ensure that the
benefit paid is the actuarial equivalent of the present value of the retiree's then -current benefit at the
time of the change. Any such retiree shall pay the actuarial recalculation expenses. Each request
for a change will be made in writing on a form prepared by the board and on completion will be filed
with the board. In the event that no designated beneficiary survives the retiree, such benefits as are
payable in the event of the death of the retiree subsequent to his retirement shall be paid as provided
in section 58-56.
(e) Retirement income payments shall be made under the option elected in accordance
with the provisions of this section and shall be subject to the following limitations:
(1) If a member dies prior to his normal retirement date or early retirement date,
whichever first occurs, no retirement benefit will be payable under the option to any
person, but the benefits, if any, will be determined under section 58-52.
(2) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the
member's retirement under the system, the option elected will be canceled
automatically and a retirement income of the normal form and amount will be
payable to the member upon his retirement as if the election had not been made,
unless a new election is made in accordance with the provisions of this section or a
new beneficiary is designated by the member prior to his retirement.
(3) If both the retiree and the beneficiary (or beneficiaries) designated by member or
retiree die before the full payment has been effected under any option providing for
payments for a period certain and life thereafter, made pursuant to the provisions of
subsection (a), the board may, in its discretion, direct that the commuted value of the
remaining payments be paid in a lump sum and in accordance with section 58-56.
(4) If a member continues beyond his normal retirement date pursuant to the provisions
of section 58-51, subsection (a), and dies prior to his actual retirement and while an
option made pursuant to the provisions of this section is in effect, monthly retirement
income payments will be made, or a retirement benefit will be paid, under the option
to a beneficiary (or beneficiaries) designated by the member in the amount or
amounts computed as if the member had retired under the option on the date on
which his death occurred.
(5) The Member's benefit under this section must begin to be distributed to the member
no later than April I of the calendar year following the later of the calendar year in
which the member attains age seventy and one-half (70%2) or the calendar year in
which the member terminates employment with the city.
(f) A retiree may not change his retirement option after the date of cashing or depositing
his first retirement check.
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(g) Notwithstanding anything herein to the contrary, the board in its discretion, may elect
to make a lump sum payment to a member or a member's beneficiary in the event that the total
commuted value of the monthly income payments to be paid do not exceed one thousand dollars
($1,000.00). Any such payment made to any person pursuant to the power and discretion conferred
upon the board by the preceding sentence shall operate as a complete discharge of all obligations
under the system with regard to such member and shall not be subject to review by anyone, but shall
be final, binding and conclusive on all persons.
Sec. 58-56. Beneficiaries.
(a) Each member or retiree may, on a form provided for that purpose, signed and filed
with the board, designate a beneficiary (or beneficiaries) to receive the benefit, if any, which may
be payable in the event of his death. Each designation may be revoked or changed by such member
or retiree by signing and filing with the board a new designation -of -beneficiary form. Upon such
change, the rights of all previously designated beneficiaries to receive any benefits under the system
shall cease.
(b) If a deceased member or retiree failed to name a beneficiary in the manner prescribed
in subsection (a), or if the beneficiary (or beneficiaries) named by a deceased member or retiree
predeceases the member or retiree, the death benefit, if any, which may be payable under the system
with respect to such deceased member or retiree, shall be paid to the estate of the member or retiree
and the board, in its discretion, may direct that the commuted value of the remaining monthly income
benefits be paid in a lump sum.
(c) Any payment made to any person pursuant to this section shall operate as a complete
discharge of all obligations under the system with regard to the deceased member and any other
persons with rights under the system and shall not be subject to review by anyone but shall be final,
binding and conclusive on all persons ever interested hereunder.
Sec. 58-57. Claims procedures.
(a) The board shall establish administrative claims procedures to be utilized in processing
written requests ("claims"), on matters which affect the substantial rights of any person ("claimant"),
including members, retirees, beneficiaries, or any person affected by a decision of the board.
(b) The board shall have the power to subpoena and require the attendance of witnesses
and the production of documents for discovery prior to and at any proceedings provided for in the
board's claims procedures. The claimant may request in writing the issuance of subpoenas by the
board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees
set forth in Florida Statutes.
Sec. 58-58. Reports to division of retirement.
Each year and no later than March 15th, the board shall file an annual report with the
Division of Retirement containing the documents and information required by F.S. § 185.221.
Sec. 58-59. Roster of retirees.
The secretary of the board shall keep a record of all persons enjoying a pension under the
provisions of this ordinance in which it shall be noted the time when the pension is allowed and
when the same shall cease to be paid. Additionally, the secretary shall keep a record of all members
in such a manner as to show the name, address, date of employment and date of termination of
employment.
ME
See. 58-60. Maximum pension.
(a) Basic limitation. Notwithstanding any other provisions of this system to the contrary,
the member contributions paid to, and retirement benefits paid from, the system shall be limited to
such extent as may be necessary to conform to the requirements of Code Section 415 for a qualified
retirement plan. Before January I, 1995, a plan member may not receive an annual benefit that
exceeds the limits specified in Code Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan member may not receive an annual benefit that exceeds
the dollar amount specified in Code Section 415(b)(1)(A) ($160,000), subject to the applicable
adjustments in Code Section 415(b) and subject to any additional limits that maybe specified in this
System. For purposes of this section, "limitation year" shall be the calendar year.
For purposes of Code Section 415(b), the "annual benefit" means a benefit payable
annually in the form of a straight life annuity (with no ancillary benefits) without regard to the
benefit attributable to after-tax employee contributions (except pursuant to Code Section 415(n) and
to rollover contributions (as defined in Code Section 415(b)(2)(A)). The "benefit attributable" shall
be detennined in accordance with Treasury Regulations.
(b) Adjustments to Basic Limitation for Form ofBenglh. If the benefit under the plan is
other than the annual benefit described in subsection (a), then the benefit shall be adjusted so that
it is the equivalent of the annual benefit, using factors prescribed in Treasury Regulations. If the
form of the benefit without regard to any automatic benefit increase feature is not a straight life
annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either
reducing the Code Section 415(b) limit applicable at the annuity starting date or adjusting the form
of benefit to an actuarially equivalent amount (determined using the assumptions specified in
Treasury Regulation Section 1.415(b)-1(c)(2)(ii)) that takes into account the additional benefits
under the form of benefit as follows:
(1) For a benefit paid in a form to which section 417(e)(3) of the code does not apply
(generally, a monthly benefit), the actuarially equivalent straight life annuity benefit
that is the greater of:
a. The annual amount of the straight life annuity (if any) payable to the member
under the plan commencing at the same annuity starting date as the form of
benefit to the member, or
b. The annual amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present value as the form of
benefit payable to the member, computed using a 5 percent interest
assumption (or the applicable statutory interest assumption) and (i) for years
prior to January 1, 2009, the applicable mortality tables described in Treasury
Regulation Section 1.417(e)-I(d)(2) (Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable provisions of Revenue
Rulings 2001-62), and (ii) for years after December 31, 2008, the applicable
mortality tables described in section 417(e)(3)(B) of the code (Notice 2008-
85 or any subsequent Internal Revenue Service guidance implementing
section 417(e)(3)(B) of the code); or
(2) For a benefit paid in a form to which section 417(e)(3) of the code applies (generally,
a lump sum benefit), the actuarially equivalent straight life annuity benefit that is the
greatest of:
a. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable, computed using the interest rate and mortality table, or
tabular factor, specified in the plan for actuarial experience;
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b. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable, computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (i) for years prior to January 1,
2009, the applicable mortality tables for the distribution under Treasury
Regulation Section 1.417(e)-1 (d)(2) (the mortality table specified in Revenue
Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and (ii) for years after December 31,
2008, the applicable mortality tables described in section 417(e)(3)(13) of the
code (Notice 2008-85 or any subsequent Intemal Revenue Service guidance
implementing section 417(e)(3)(13) of the code); or
C. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form
of benefit payable (computed using the applicable interest rate for the
distribution under Treasury Regulation Section 1.417(e)- l (d)(3) (the 30 -year
Treasury rate (prior to January 1, 2007, using the rate in effect for the month
prior to retirement, and on and after January 1, 2007, using the rate in effect
for the first day of the plan year with a one-year stabilization period)) and (i)
for years prior to January 1, 2009, the applicable mortality tables for the
distribution under Treasury Regulation Section 1.417(e) -1(d)(2) (the
mortality table specified in Revenue Ruling 2001-62 or any subsequent
Revenue Ruling modifying the applicable provisions of Revenue Ruling
2001-62), and (ii) for years after December 31, 2008, the applicable mortality
tables described in section 417(e)(3)(B) of the code (Notice 2008-85 or any
subsequent Intemal Revenue Service guidance implementing section
417(e)(3)(B) of the code), divided by 1.05.
(3) The actuary may adjust the 415(b) limit at the annuity starting date in accordance
with subsections (1) and (2) above.
(c) Benefits not taken into account. For purposes of this Section, the following benefits
shall not be taken into account in applying these limits:
(1) Any ancillary benefit which is not directly related to retirement income benefits;
(2) Any other benefit not required under §415(b)(2) of the Code and Regulations
thereunder to be taken into account for purposes of the limitation of Code Section
415(b)(1); and
(3) That portion of any joint and survivor annuity that constitutes a qualified joint and
survivor annuity.
(d) COLA Effect. Effective on and after January 1, 2003, for purposes of applying the
limits under Code Section 415(b) (the "Limit"), the following will apply:
(1) A member's applicable limit will be applied to the member's annual benefit in the
member's first limitation year of benefit payments without regard to any automatic
cost of living adjustments;
(2) thereafter, in any subsequent limitation year, a member's annual benefit, including
any automatic cost of living increases, shall be tested under the then applicable
benefit limit including any adjustment to the Code Section 415(b)(1)(A) dollar limit
under Code Section 415(d), and the regulations thereunder; but
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(3) in no event shall a member's benefit payable under the system in any limitation year
be greater than the limit applicable at the annuity starting date, as increased in
subsequent years pursuant to Code Section 415(d) and the regulations thereunder.
Unless otherwise specified in the system, for purposes of applying the limits under Code
Section 415(b), a Member's applicable limit will be applied taking into consideration cost of living
increases as required by Section 415(b) of the Code and applicable Treasury Regulations.
(e) Other Adjustments in Limitations.
(1) In the event the member's retirement benefits become payable before age sixty-two
(62), the limit prescribed by this section shall be reduced in accordance with
regulations issued by the Secretary of the Treasury pursuant to the provisions of Code
Section 415(b) of the Code, so that such limit (as so reduced) equals an annual
straight life benefit (when such retirement income benefit begins) which is equivalent
to a one hundred sixty thousand dollar ($160,000) annual benefit beginning at age
sixty-two (62).
(2) In the event the member's benefit is based on at least fifteen (15) years of credited
service as a full-time employee of the fire or police department of the City, the
adjustments provided for in (e)(1) above shall not apply.
(3) The reductions provided for in (e)(1) above shall not be applicable to disability
benefits pursuant to Sec. 58-53, or pre -retirement death benefits paid pursuant to
Sec.58-52.
(4) In the event the member's retirement benefit becomes payable after age sixty-five
(65), for purposes of determining whether this benefit meets the limit set forth in
subsection (a) herein, such benefit shall be adjusted so that it is actuarially equivalent
to the benefit beginning at age sixty-five (65). This adjustment shall be made in
accordance with regulations promulgated by the Secretary of the Treasury or his
delegate.
(f) Less than Ten (10) Years of Participation. The maximum retirement benefits payable
under this section to any member who has completed less than ten (10) years of participation shall
be the amount determined under subsection (a) ofthis section multiplied by a fraction, the numerator
of which is the number of the member's years of participation and the denominator of which is ten
(10). The reduction provided by this subsection cannot reduce the maximum benefit below 10% of
the limit determined without regard to this subsection. The reduction provided for in this subsection
shall not be applicable to pre -retirement disability benefits paid pursuant to Sec. 58-53, or pre-
retirement death benefits paid pursuant to Sec. 58-52.
(g) Participation in Other Defined Benefit Plans. The limit of this section with respect
to any member who at any time has been a member in any other defined benefit plan as defined in
Code Section 4140) maintained by the City shall apply as if the total benefits payable under all City
defined benefit plans in which the member has been a member were payable from one plan.
(h) Ten Thousand Dollar ($10,000) Limit; Less Than Ten Years of Service.
Notwithstanding anything in this section 58-60, the retirement benefit payable with respect to a
member shall be deemed not to exceed the limit set forth in this subsection (h) of section 58-60 if
the benefits payable, with respect to such member under this system and under all other qualified
defined benefit pension plans to which the City contributes, do not exceed ten thousand dollars
($10,000) for the applicable limitation year and for any prior limitation year and the City has not any
time maintained a qualified defined contribution plan in which the member participated; provided,
however, that if the member has completed less than ten (10) years of credited service with the City,
the limit under this subsection (h) of section 58-60 shall be a reduced limit equal to ten thousand
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dollars ($10,000) multiplied by a fraction, the numerator of which is the number of the member's
years of credited service and the denominator of which is ten (10).
(i) Reduction ofBenefits. Reduction of benefits and/or contributions to all plans, where
required, shall be accomplished by first reducing the member's benefit under any defined benefit
plans in which member participated, such reduction to be made first with respect to the plan in which
member most recently accrued benefits and thereafter in such priority as shall be determined by the
board and the plan administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans in which the member participated, such reduction to be
made first with respect to the plan in which member most recently accrued benefits and thereafter
in such priority as shall be established by the board and the plan administrator for such other plans
provided, however, that necessary reductions may be made in a different manner and priority
pursuant to the agreement of the board and the plan administrator of all other plans covering such
member.
0) Service Credit Purchase Limits.
(1) Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a member makes one or more contributions
to purchase permissive service credit under the system, as allowed in Secs. 58-70.1
and 58-70.2, then the requirements of this section will be treated as met only if:
a. the requirements of Code Section 415(b) are met, determined by treating the
accrued benefit derived from all such contributions as an annual benefit for
purposes of Code Section 415(b), or
b. the requirements of Code Section 415(c) are met, detennined by treating all
such contributions as annual additions for purposes of Code Section 415(c).
For purposes of applying subparagraph 6)(1)a., the System will not fail to meet the
reduced limit under Code Section 415(b)(2)(C) solely by reason of this subparagraph,
and for purposes of applying subparagraph 6)(1)b. the System will not fail to meet
the percentage limitation under Section 415(c)(1)(B) of the Code solely by reason of
this subparagraph.
(2) For purposes of this subsection the term "permissive service credit" means service
credit—
a. recognized by the system for purposes of calculating a member's benefit
under the plan,
b. which such member has not received under the plan, and
C. which such member may receive only by making a voluntary additional
contribution, in an amount determined under the system, which does not
exceed the amount necessary to fund the benefit attributable to such service
credit.
Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, such term may, if otherwise provided by the
system, include service credit for periods for which there is no performance of
service, and, notwithstanding clause 0)(2)b., may include service credited in order
to provide an increased benefit for service credit which a member is receiving under
the system.
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(k) Contribution Limits
(1) For purposes of applying the Code Section 415(c) limits which are incorporated by
reference and for purposes of this subsection (k), only and for no other purpose, the
definition of compensation where applicable will be compensation actually paid or
made available during a limitation year, except as noted below and as permitted by
Treasury Regulations Section 1.415(c)-2, or successor regulations. Unless another
definition of compensation that is permitted by Treasury Regulations Section
1.415(c)-2, or successor regulation, is specified by the system, compensation will be
defined as wages within the meaning of Code Section 3401(a) and all other payments
of compensation to an employee by an employer for which the employer is required
to furnish the employee a written statement under Code Sections 6041(d), 6051(a)(3)
and 6052 and will be determined without regard to any rules under Code Section
3401(a) that limit the remuneration included in wages based on the nature or location
of the employment or the services performed (such as the exception for agricultural
labor in Code Section 3401(a)(2).
a. However, for limitation years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be included in
compensation but for an election under Code Sections 125(a), 402(e)(3),
402(h)(1)(B), 402(k), or 457(b). For limitation years beginning after
December 31, 2000, compensation will also include any elective amounts that
are not includible in the gross income of the employee by reason of Code
Section 132(f)(4).
b. For limitation years beginning on and after January 1, 2007, compensation for
the limitation year will also include compensation paid by the later of 2%
months after an employee's severance from employment or the end of the
limitation year that includes the date of the employee's severance from
employment if:
the payment is regular compensation for services during the
employee's regular working hours, or compensation for services
outside the employee's regular working hours (such as overtime or
shift differential), commissions, bonuses or other similar payments,
and, absent a severance from employment, the payments would have
been paid to the employee while the employee continued in
employment with the employer; or
2. the payment is for unused accrued bona fide sick, vacation or other
leave that the employee would have been able to use if employment
had continued.
C. Back pay, within the meaning of Treasury Regulations Section 1.415(c) -
2(g)(8), shall be treated as compensation for the limitation year to which the
back pay relates to the extent the back pay represents wages and
compensation that would otherwise be included under this definition.
(2) Notwithstanding any other provision of law to the contrary, the board may modify a
request by a member to make a contribution to the system if the amount of the
contribution would exceed the limits provided in Code Section 415 by using the
following methods:
a. If the law requires a lump sum payment for the purchase of service credit, the
board may establish a periodic payment deduction plan for the member to
avoid a contribution in excess of the limits under Code Sections 415(c) or
415(n).
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b. If payment pursuant to subparagraph (k)(2)a. will not avoid a contribution in
excess of the limits imposed by Code Section 415(c), the board may either
reduce the member's contribution to an amount within the limits of that
section or refuse the member's contribution.
(3) If the annual additions for any member for a limitation year exceed the limitation
under section 415(c) of the code, the excess annual addition will be corrected as
permitted under the Employee Plans Compliance Resolution System (or similar IRS
correction program).
(4) For limitation years beginning on or after January 1, 2009, a member's compensation
for purposes of this subsection (k) shall not exceed the annual limit under section
401(a)(17) of the code.
(1) Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
(1) The nonnal retirement benefit or pension payable to a retiree who becomes a member
of the system and who has not previously participated in such system, on or after
January 1, 1980, shall not exceed one hundred percent (100%) of his average final
compensation. However, nothing contained in this section shall applyto supplemen-
tal retirement benefits or to pension increases attributable to cost -of -living increases
or adjustments.
(2) No member of the system shall be allowed to receive a retirement benefit or pension
which is in part or in whole based upon any service with respect to which the
member is already receiving, or will receive in the future, a retirement benefit or
pension from a different employer's retirement system or plan. This restriction does
not apply to social security benefits or federal benefits under Chapter 67, Title 10,
U.S. Code.
Sec. 58-61. Minimum distribution of benefits.
(a) General Rules.
(1) Effective Date. Effective as of January 1, 1989, the plan will pay all benefits
in accordance with a good faith interpretation of the requirements of Code
Section 401(a)(9) and the regulations in effect under that section, as
applicable to a governmental plan within the meaning of Code Section
414(d). Effective on and after January 1, 2003, the plan is also subject to the
specific provisions contained in this section. The provisions of this Section
will apply for purposes of determining required minimum distributions for
calendar years beginning with the 2003 calendar year.
(2) Precedence. The requirements of this Section will take precedence over any
inconsistent provisions of the Plan.
(3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions
of this Section other than this subsection (a)(3), distributions may be made
under a designation made before January 1, 1984, in accordance with Section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the
provisions of the plan that related to Section 242(b)(2) of TEFRA.
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(b) Time and Manner of Distribution.
(1) Required Beginning Date. The Member's entire interest will be distributed,
or begin to be distributed, to the Member no later than the Member's required
beginning date which shall not be later than April 1 of the calendar year
following the later of the calendar year in which the Member attains age
seventy and one-half (70 %2) or the calendar year in which the Member
terminates employment with the city.
(2) Death of Member Before Distributions Begin. If the Member dies before
distributions begin, the Member's entire interest will be distributed, or begin
to be distributed no later than as follows:
a. If the Member's surviving spouse is the Member's sole designated
beneficiary, then distributions to the surviving spouse will begin by
December3l of the calendar year immediately following the calendar
year in which the Member died, or by a date on or before December
31 of the calendar year in which the Member would have attained age
70 '/2, if later, as the surviving spouse elects.
b. If the Member's surviving spouse is not the Member's sole designated
beneficiary, then, distributions to the designated beneficiary will
begin by December 31 ofthe calendar year immediately following the
calendar year in which the Member died.
C. If there is no designated beneficiary as of September 30 of the year
following the year of the Member's death, the Member's entire interest
will be distributed by December 31 of the calendar year containing
the fifth anniversary of the Member's death.
If the Member's surviving spouse is the Member's sole designated
beneficiary and the surviving spouse dies after the Member but before
distributions to the surviving spouse begin, this subsection (b)(2),
other than subsection (b)(2)a., will apply as if the surviving spouse
were the Member.
For purposes of this subsection (b)(2) distributions are considered to
begin on the Member's required beginning date or, if subsection
(b)(2)d. applies, the date of distributions are required to begin to the
surviving spouse under subsection (b)(2)a. If annuity payments
irrevocably commence to the Member before the Member's required
beginning date (or to the Member's surviving spouse before the date
distributions are required to begin to the surviving spouse under
subsection (b)(2)a.) the date distributions are considered to begin is
the date distributions actually commence.
(3) Death After Distributions Begin. If the member dies after the required
distribution of benefits has begun, the remaining portion of the member's
interest must be distributed at least as rapidly as under the method of
distribution before the member's death.
(4) Form of Distribution. Unless the Member's interest is distributed in the form
of an annuity purchased from an insurance company or in a single sum on or
before the required beginning date, as of the first distribution calendar year
distributions will be made in accordance with this Section. If the Member's
interest is distributed in the form of an annuity purchased from an insurance
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company, distributions thereunder will be made in accordance with the
requirements of Section 401 (a)(9) of the Code and Treasury regulations. Any
part of the Member's interest which is in the form of an individual account
described in Section 414(k) of the Code will be distributed in a manner
satisfying the requirements of Section 401(a)(9) of the Code and Treasury
regulations that apply to individual accounts.
(c) Determination of Amount to be Distributed Each Year.
(1) General Requirements. If the Member's interest is paid in the form of annuity
distributions under the Plan, payments under the annuity will satisfy the
following requirements:
a. The annuity distributions will be paid in periodic payments made at
intervals not longer than one year.
b. The member's entire interest must be distributed pursuant to Sec. 58-
51, Sec. 58-52, Sec. 58-54, or Sec. 58-55 (as applicable) and in any
event over a period equal to or less than the member's life or the lives
of the member and a designated beneficiary, or over a period not
extending beyond the life expectancy of the member or of the
member and a designated beneficiary. The life expectancy of the
member, the member's spouse, or the member's beneficiary may not
be recalculated after the initial determination for purposes of
determining benefits.
(2) Amount Required to be Distributed by Required Beginning Date. The
amount that must be distributed on or before the Member's required
beginning date (or, if the Member dies before distributions begin, the date
distributions are required to begin under section 58-52) is the payment that
is required for one payment interval. The second payment need not be made
until the end of the next payment interval even if that payment interval ends
in the next calendar year. Payment intervals are the periods for which
payments are received, e.g., monthly. All of the Member's benefit accruals
as of the last day of the first distribution calendar year will be included in the
calculation of the amount of the annuity payments for payment intervals
ending on or after the Member's required beginning date.
(3) Additional Accruals After First DistributionCalendarYear. Anyadditional
benefits accruing to the Member in a calendar year after the first distribution
calendar year will be distributed beginning with the first payment interval
ending in the calendar year immediately following the calendar year in which
such amount accrues.
(d) General distribution rules.
(1) The amount of an annuity paid to a member's beneficiary may not exceed the
maximum determined under the incidental death benefit requirement ofCode Section
401(a)(9)(G), and effective for any annuity commencing on or after January 1, 2008,
the minimum distribution incidental benefit rule under Treasury Regulation Section
1.401(a)(9)-6, Q&A -2.
(2) The death and disability benefits provided by the plan are limited by the incidental
benefit rule set forth in Code Section 401(a)(9)(G) and Treasury Regulation Section
1.401-1(b)(1)(I) or any successor regulation thereto. Asa result, the total death or
disability benefits payable may not exceed 25% of the cost for all of the members'
benefits received from the retirement system.
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(e) Definitions.
(1) Designated Beneficiary. The individual who is designated as the beneficiary
under the Plan and is the designated beneficiary under Section 401(a)(9) ofthe
Code and Section 1.401(a)(9)-1, Q&A -4, of the Treasury regulations.
(2) Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the Member's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the Member's required beginning
date. For distributions beginning after the Member's death, the first
distribution calendar year is the calendar year in which distributions are
required to begin pursuant to subsection (b)(2).
Sec. 58-62. Miscellaneous provisions.
(a) Interest of members in system. All assets of the fund are held in trust, and at no time
prior to the satisfaction of all liabilities under the system with respect to retirees and members and
their spouses or beneficiaries, shall any part of the corpus or income of the fund be used for or
diverted to any purpose other than for their exclusive benefit.
(b) Aro reduction of accrued benefits. No amendment or ordinance shall be adopted by
the City Council of the City of Sebastian which shall have the effect of reducing the then vested
accrued benefits of members or a member's beneficiaries.
(c) Qualification of system. It is intended that the system will constitute a qualified
public pension plan under the applicable provisions of the code for a qualified plan under Code
Section 401(a) and a governmental plan under Code Section 414(d), as now in effect or hereafter
amended. Any modification or amendment of the system may be made retroactively, if necessary
or appropriate, to qualify or maintain the system as a plan meeting the requirements ofthe applicable
provisions of the code as now in effect or hereafter amended, or any other applicable provisions of
the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations
issued thereunder.
(d) Use offorfeitures. Forfeitures arising from terminations of service of members shall
serve only to reduce future city contributions.
(e) Prohibited Transactions. Effective as of January 1, 1989, a board may not engage
in a transaction prohibited by Code Section 503(b).
(f) USERRA. Effective December 12, 1994, notwithstanding any other provision of this
system, contributions, benefits and service credit with respect to qualified military service are
governed by Code Section 414(u) and the Uniformed Services Employment and Reemployment
Rights Act of 1994, as amended. To the extent that the definition of "credited service" sets forth
contribution requirements that are more favorable to the member than the minimum compliance
requirements, the more favorable provisions shall apply.
(g) Vesting.
(1) Member will be 100% vested in all benefits upon attainment of the plan's age and
service requirements for the Plan's normal retirement benefit; and
(2) A member will be 100% vested in all accrued benefits, to the extent funded, if the
plan is terminated or experiences a complete discontinuance of employer
contributions.
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(h) Electronic Forms. In those circumstances where a written election or consent is not
required by the plan or the Code, an oral, electronic, or telephonic form in lieu of or in addition to
a written form maybe prescribed by the board. However, where applicable, the board shall comply
with Treas. Reg. § 1.401(a)-21.
(i) Compliance with Chapter 185, Florida Statutes. It is intended that the System will
continue to qualify for funding under F.S. § 185.08. Accordingly, unless otherwise required by law,
any provision of the System which violates the requirements of F.S. ch. 185, as amended from time
to time, shall be superseded by and administered in accordance with the requirements of such
chapter.
See. 58-63. Repeal or termination of system.
(a) This ordinance establishing the system and fund, and subsequent ordinances
pertaining to said system and fund, may be modified, terminated, or amended, in whole or in part;
provided that if this or any subsequent ordinance shall be amended or repealed in its application to
any person benefitting hereunder, the amount of benefits which at the time of any such alteration,
amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby.
(b) If this ordinance shall be repealed, or if contributions to the system are discontinued
or if there is a transfer, merger or consolidation of government units, services or functions as
provided in F.S. ch. 121, the board shall continue to administer the system in accordance with the
provisions of this ordinance, for the sole benefit of the then members, any beneficiaries then
receiving retirement allowances, and any future persons entitled to receive benefits under one of the
options provided for in this ordinance who are designated by any of said members. In the event of
repeal, discontinuance of contributions, or transfer, merger or consolidation of government units,
services or functions, there shall be full vesting (100%) ofbenefits accrued to date of repeal and such
benefits shall be non -forfeitable.
(c) The fund shall be distributed in accordance with the following procedures:
(1) The board shall determine the date of distribution and the asset value required to fund
all the nonforfeitable benefits after taking into account the expenses of such
distribution. The board shall inform the city if additional assets are required, in
which event the city shall continue to financially support the plan until all
nonforfeitable benefits have been funded.
(2) The board shall determine the method of distribution of the asset value, whether
distribution shall be by payment in cash, by the maintenance of another or substituted
trust fund, by the purchase of insured annuities, or otherwise, for each police officer
entitled to benefits under the plan as specified in subsection (3).
(3) The board shall distribute the asset value as of the date of termination in the manner
set forth in this subsection, on the basis that the amount required to provide any given
retirement income is the actuarially computed single -sum value of such retirement
income, except that if the method of distribution determined under subsection (2)
involves the purchase of an insured annuity, the amount required to provide the given
retirement income is the single premium payable for such annuity. The actuarial
single -sum value may not be less than the police officer's accumulated contributions
to the plan, with interest if provided by the plan, less the value of any plan benefits
previously paid to the police officer.
(4) If there is asset value remaining after the full distribution specified in subsection (3),
and after the payment of any expenses incurred with such distribution, such excess
shall be returned to the city, less return to the State of the State's contributions,
provided that, if the excess is less than the total contributions made by the city and
the State to date of termination of the plan, such excess shall be divided
proportionately to the total contributions made by the city and the State.
am
(5) The board shall distribute, in accordance with subsection (2), the amounts determined
under subsection (3).
If, after twenty-four (24) months after the date the plan terminated or the date the
board received written notice that the contributions thereunder were being permanently discontinued,
the city or the board of the fund affected has not complied with all the provisions in this section, the
Florida Department of Management Services will effect the termination of the fund in accordance
with this section.
Sec. 58-64. Domestic relations orders; retiree directed payments; exemption from execution,
non -assignability.
(a) Domestic relations orders.
(1) Prior to the entry of any domestic relations order which affects or purports to affect
the system's responsibility in connection with the payment of benefits of a retiree, the
member or retiree shall submit the proposed order to the board for review to
determine whether the system may legally honor the order.
(2) If a domestic relations order is not submitted to the board for review prior to entry
of the order, and the system is ordered to take action that it may not legally take, and
the system expends administrative or legal fees in resolving the matter, the member
or retiree who submits such an order will be required to reimburse the system for its
expenses in connection with the order.
(b) Retiree directed payments. The board may, upon written request by a retiree or by
a dependent, when authorized by a retiree or the retiree's beneficiary, authorize the system to
withhold from the monthly retirement payment those funds that are necessary to pay for the benefits
being received through the city, to pay the certified bargaining agent of the city, to make payment
to insurance companies for insurance premiums as permitted by F.S. Chapter 185 and to make any
payments for child support or alimony.
(c) Exemption from execution, non -assignability. Except as otherwise provided by law,
the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions
of this ordinance and the accumulated contributions and the cash securities in the fund created under
this ordinance are hereby exempted from any state, county or municipal tax and shall not be subject
to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable.
Sec. 58-65. Pension validity.
The board shall have the power to examine into the facts upon which any pension shall
heretofore have been granted under any prior or existing law, or shall hereafter be granted or
obtained erroneously, fraudulently or illegally for any reason. The board is empowered to purge the
pension rolls or correct the pension amount of any person heretofore granted a pension under prior
or existing law or any person hereafter granted a pension under this ordinance if the same is found
to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore
under any prior or existing law been or who shall hereafter under this ordinance be erroneously,
improperly or illegally classified. Any overpayments or underpayments shall be corrected and paid
or repaid in a reasonable manner determined by the board.
See. 58-66. Forfeiture of pension.
(a) Any member who is convicted of the following offenses committed prior to
retirement, or whose employment is terminated by reason of his admitted commission, aid or
abetment of the following specified offenses, shall forfeit all rights and benefits under this system,
except for the return of his accumulated contributions as of the date of termination. Specified
offenses are as follows:
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(1) The committing, aiding or abetting of an embezzlement of public funds;
(2) The committing, aiding or abetting of any theft by a public officer or employee from
employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in F.S. ch. 838;
(5) The committing of an impeachable offense;
(6) The committing of any felony by a public officer or employee who willfully and with
intent to defraud the public or the public agency, for which he acts or in which he is
employed, of the right to receive the faithful performance of his duty as a public
officer or employee, realizes or obtains or attempts to obtain a profit, gain, or
advantage for himself or for some other person through the use or attempted use of
the power, rights, privileges, duties or position of his public office or employment
position; or
(7) The committing on or after October 1, 2008, of any felony defined in Section 800.04,
Florida Statutes, against a victim younger than sixteen (16) years of age, or any
felony defined in Chapter 794, Florida Statutes, against a victim younger than
eighteen (18) years of age, by a public officer or employee through the use or
attempted use of power, rights, privileges, duties, or position of his or her public
office or employment position.
(b) Conviction shall be defined as an adjudication of guilt by a court of competent
jurisdiction; a plea of guilty or a nolo contendere; a juryverdict of guilty when adjudication of guilt
is withheld and the accused is placed on probation; or a conviction by the senate of an impeachable
offense.
(c) Court shall be defined as any state or federal court of competent jurisdiction which
is exercising its jurisdiction to consider a proceeding involving the alleged commission of a specified
offense. Prior to forfeiture, the board shall hold a hearing on which notice shall be given to the
member whose benefits are being considered for forfeiture. Said member shall be afforded the right
to have an attorney present. No formal rules of evidence shall apply, but the member shall be
afforded a full opportunity to present his case against forfeiture.
(d) Anymember who has received benefits from the system in excess ofhis accumulated
contributions after member's rights were forfeited shall be required to pay back to the fund the
amount of the benefits received in excess of his accumulated contributions. The board may
implement all legal action necessary to recover such funds.
Sec. 58-67. Conviction and forfeiture; false, misleading or fraudulent statements.
(a) It is unlawful for a person to willfully and knowingly make, or cause to be made, or
to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or
misleading oral or written statement or withhold or conceal material information to obtain any
benefit from the system.
(b) A person who violates subsection (a) commits a misdemeanor of the first degree,
punishable as provided in F.S. §775.082 or §775.083.
(c) In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection (a), a member or beneficiary of the system may, in the discretion of the
board, be required to forfeit the right to receive any or all benefits to which the person would
otherwise be entitled under the system. For purposes of this subsection, "conviction" means a
determination of guilt that is the result of a plea or trial, regardless of whether adjudication is
withheld.
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Sec. 58-68. Indemnification.
(a) To the extent not covered by insurance contracts in force from time to time, the city
shall indemnify, defend and hold harmless members of the board from all personal liability for
damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation,
or threat of same, herein referred to as "claims", against these individuals because of acts or
circumstances connected with or arising out of their official duty as members of the board. The city
reserves the right, in its sole discretion, to settle or not settl c the claim at any time, and to appeal or
to not appeal from any adverse judgment or ruling, and in either event will indemnify, defend and
hold harmless any members of the board from the judgment, execution, or levy thereon.
(b) This section shall not be construed so as to relieve any insurance company or other
entity liable to defend the claim or liable for payment of the judgment or claim, from any liability,
nor does this section waive anyprovision of law affording the city immunity from any suit in whole
or part, or waive any other substantive or procedural rights the city may have.
(c) This section shall not apply nor shall the city be responsible in any manner to defend
or pay for claims arising out of acts or omissions of members of the board which constitute felonies
or gross malfeasance or gross misfeasance in office.
Sec. 58-69. Direct transfers of eligible rollover distributions; elimination of mandatory
distributions.
(a) Rollover distributions.
(1) General. This section applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of the system to the contrary that would otherwise
limit a distributee's election under this section, a distributee may elect, at the time and
in the manner prescribed by the board, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the distributee in
a direct rollover.
(2) Definitions.
a. Eligible rollover distribution: An eligible rollover distribution is any
distribution of all or any portion of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and
the distributee's designated beneficiary, or for a specified period of ten years
or more; any distribution to the extent such distribution is required under
section 401(a)(9) of the code and the portion of any distribution that is not
includible in gross income. Effective January 1, 2002, any portion of any
distribution which wouldbe includible in gross income as after-tax employee
contributions will be an eligible rollover distribution if the distribution is
made to an individual retirement account described in section 408(a); to an
individual retirement annuity described in section 408(b); to a qualified
defined contribution plan described in section 401(a) or 403(a) that agrees to
separately account for amounts so transferred (and earnings thereon),
including separately accounting for the portion of such distribution which is
includible in gross income and the portion of such distribution which is not
so includible; or on or after January 1, 2007, to a qualified defined benefit
plan described in Code Section 401(a) or to an annuity contract described in
Code Section 403(b), that agrees to separately account for amounts so
transferred (and earnings thereon), including separately accounting for the
portion of the distribution that is includible in gross income and the portion
of the distribution that is not so includible.
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Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the code; an individual
retirement annuity described in section 408(b) of the code; an annuity plan
described in section 403(a) of the code; effective January 1, 2002, an eligible
deferred compensation plan described in section 457(b) of the code which is
maintained by an eligible employer described in section 457(e)(1)(A) of the
code and which agrees to separately account for amounts transferred into
such plan from this plan; effective January 1, 2002, an annuity contract
described in section 403(b) of the code; a qualified trust described in section
401(a) of the code; or effective January 1, 2008, a Roth IRA described in
Section 408A, that accepts the distributee's eligible rollover distribution.
This definition shall also apply in the case of an eligible rollover distribution
to the surviving spouse.
C. Distributee: A distributee includes an employee or former employee. It also
includes, the employee's or former employee's surviving spouse and the
employee's or former employee's spouse or former spouse. Effective January
1, 2007, it further includes a non -spouse beneficiary who is a designated
beneficiary as defined by Code Section 401 (a)(9)(E). However, a non -spouse
beneficiary may rollover the distribution only to an individual retirement
account or individual retirement annuity established for the purpose of
receiving the distribution and the account or annuity will be treated as an
"inherited" individual retirement account or annuity.
d. Direct rollover: A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
(b) Rollovers or transfers into the fund. On or after January 1, 2002, the system will
accept, solely for the purpose of purchasing credited service as provided herein, permissible police
officer requested transfers of funds from other retirement or pension plans, member rollover cash
contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as
follows:
(1) Transfers and direct rollovers or member rollover contributions from other plans.
The system will accept either a direct rollover of an eligible rollover distribution or
a member contribution of an eligible rollover distribution from a qualified plan
described in section 401(a) or 403(a) of the Code, from an annuity contract described
in section 403(b) of the Code or from an eligible plan under section 457(b) of the
Code which is maintained by a state, political subdivision of a state, or any agency
or instrumentality of a state or political subdivision of a state. The system will also
accept legally permissible member requested transfers of funds from other retirement
or pension plans.
(2) Member rollover contributionsfiomIRAs. The system will accept a member rollover
contribution of the portion of distribution from an individual retirement account or
annuity described in section 408(a) or 408(b) of the Code that is eligible to be rolled
over.
(c) Elimination ofMandatoryDistributions. Notwithstanding any other provision herein
to the contrary, in the event this Plan provides for a mandatory (involuntary) cash distribution from
the Plan not otherwise required by law, for an amount in excess of one -thousand dollars ($1,000.00),
such distribution shall be made from the Plan only upon written request of the Member and
completion by the Member of a written election on forms designated by the Board, to either receive
a cash lump sum or to rollover the lump sum amount.
ksh\dm\sebas\po1\05-23-14.ord
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CITY OF SEBASTIAN
POLICE OFFICERS' RETIREMENT SYSTEM
ACTUARIAL IMPACT STATEMENT
February 19, 2015
Attached hereto is a comparison of the impact on the Total Required Contribution (per Chapter 112,
Florida Statutes), and the Required City Contributions, resulting from implementation of the following
change:
A limitation on overtime and lump sum payments of unused sick and annual leave time for inclusion
in pensionable earnings as follows:
a. For Credited Service after July 1, 2011, annual overtime shall not exceed 300 hours.
Additionally, payment for unused sick and annual leave time shall not be considered
pensionable for hours accrued after July 1, 2011.
b. Payment for overtime and unused sick and annual leave time at the time of termination
shall not exceed the amounts in place on July 1, 2011.
The following assumptions are utilized for purposes of this Impact Statement:
Current Credited Service
Current Final Salary Load
Revised Final Sa]aEy Load
5 or more years
20.0%
20.0%
More than 2, less than 5 years
20.0%
10.0%
Less than 2 years
20.0%
0.0%
It is important to point out that these assumptions are based on current information available, and are
subject to further modification based on actual experience. Subsequent changes will be reflected in future
actuarial valuations.
The cost impact, determined as of October 1, 2014, as applicable to the fiscal year ending September 30,
2016, is as follows:
CITY OF SEBASTIAN
POLICE OFFICERS' RETIREMENT SYSTEM
ACTUARIAL IMPACT STATEMENT
February 19, 2015
(Page 2)
Current Proposed
Total Required Contribution
% of Total Annual Payroll 24.6% 24.4%
Member Contributions (Est.)
% of Total Annual Payroll
7.4%
7.4%
City and State Required Contribution
% of Total Annual Payroll
17.2%
17.0%
State Contribution (est.)
123,482
123,482
% of Total Annual Payroll
5.6%
5.6%
Balance from City
% of Total Annual Payroll
11.6%
11.4%
The changes presented herein are in compliance with Part VII, Chapter 112, Florida Statutes and
Section 14, Article X of the State Constitution. The liabilities were computed based on the data used for
the October 1, 2014 actuarial valuation utilizing the assumptions and methods stated in the October 1,
2014 actuarial valuation report with the exception to the change as previously described. This impact
statement and the October 1, 2014 valuation report are considered an integral part of the actuarial
opinions. The undersigned is familiar with the immediate and long-term aspects of pension valuations,
and meets the Qualification Standards of the American Academy of Actuaries necessary to render the
actuarial opinions contained herein.
D uglas ft. Loze , EA, MAAA
Enrolled #14-7778
STATEMENT OF PLAN ADMINISTRATOR
The prepared information presented herein reflects the estimated cost of the proposed improvement.
Chairman, Board of Trustees
COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS
B. Assets
Actuarial Value 11,253,240 11,253,240
Market Value 11,253,240 11,253,240
C. Liabilities
Present Value of Benefits
Proposed
Current
Active Members
10/1/2014
10/1/2014
A. Participant Data
9,407,714
9,429,676
Number Included
430,872
434,181
Actives
35
35
Service Retirees
8
8
Beneficiaries
l
I
Terminated Vested
6
6
Disability Retirees
2
2
Total
52
52
Total Annual Payroll
$2,196,343
$2,196,343
Payroll Under Assumed Ret. Age
2,196,343
2,196,343
Annual Rate of Payments to:
15,815,876
15,842,062
Service Retirees
427,945
427,945
Beneficiaries
7,211
7,211
Terminated Vested
137,836
137,836
Disability Retirees
24,283
24,283
B. Assets
Actuarial Value 11,253,240 11,253,240
Market Value 11,253,240 11,253,240
C. Liabilities
Present Value of Benefits
Active Members
Retirement Benefits
9,407,714
9,429,676
Disability Benefits
430,872
434,181
Death Benefits
66,361
66,516
Vested Benefits
131,589
132,349
Refund of Contributions
59,122
59,122
Service Retirees
4,446,914
4,446,914
Beneficiaries
35,584
35,584
Terminated Vested
990,626
990,626
Disability Retirees
184,449
184,449
Excess State Monies Reserve
62,645
62,645
Total
15,815,876
15,842,062
C. Liabilities - (Continued)
Liabilities Due and Unpaid
Present Value of Future
Salaries (Attained Age)
Normal Cost
(FIC, Method)
Present Value of Future
Member Contributions
Present Value of Future
Normal Costs (Entry Age)
Actuarial Accrued Liability
Unfunded Actuarial Accrued
Liability (UAAL)
D. Actuarial Present Value of Accrued Benefits
Vested Accrued Benefits
Inactives
Actives
Member Contributions
Total
Non -vested Accrued Benefits
Total Present Value Accrued
Benefits
Increase (Decrease) in Present Value of
Accrued Benefits Attributable to:
Plan Amendments
Assumption Changes
New Accrued Benefits
Benefits Paid
Interest
Other
Total:
Proposed Current
10/1/2014 10/1/2014
0 0
19,418,599 19,418,599
432,395 434,864
1,430,914 1,430,914
3,346,876
3,368,706
11,992,931
11,997,287
739,691
744,047
5,657,573
5,657,573
2,894,342
2,894,342
963,020
963,020
9,514,935
9,514,935
664,214
664,214
10,179,149
10,179,149
0
0
0
0
0
0
L1'
Proposed Current
Valuation Date 10/1/2014 10/1/2014
Applicable Fiscal Year End 9/30/2016 9/30/2016
E. Pension Cost
Normal Cost (with interest)
% of Total Annual Payroll' 20.4 20.6
Administrative Expense (with interest) 1.3 1.3
% of Total Annual Payroll'
Payment Required to Amortize
Unfunded Actuarial Accrued
Liability over 26 years as of 10/1/14
(with interest)
% of Total Annual Payroll' 2.7 2.7
Total Required Contribution
% of Total Annual Payroll 1 24.4 24.6
Expected Member Contributions
% of Total Annual Payroll 1 7.4 7.4
Expected City & State Contrib.
% of Total Annual Payroll 1 17.0 17.2
' Contributions developed as of 10/1/2014 are expressed as a percentage of total
annual payroll at 10/1/2014 of 2,196,343.
ACTUARIAL ASSUMPTIONS AND METHODS
Mortality RP -2000 Table with no projection — Based on a study
of over 650 public safety funds, this table reflects a
10% margin for future mortality improvements.
(Disabled lives set forward 5 years).
Interest Rate 7.75% per year compounded annually, net of
investment related expenses.
Retirement Aee Earlier of: l) age 55 and 10 years of credited service,
or 2) age 52 and 25 years of credited service,
regardless of age. Also, any member who has
reached Normal Retirement is assumed to continue
employment for one additional year.
Early Retirement Commencing at the assumed Early Retirement Age
(50), members are assumed to retire with an
immediate subsidized benefit at the rate of 5% per
year.
Disability Rate Age -based rates with increasing probability of
disablement at higher ages. A sample of rates are
shown below:
Termination Rate
Salary Increases
Age
Assumption
30
0.12%
40
0.21%
50
0.54%
60
2.70%
Additionally, it is assumed that 75% of disablements
and active Member deaths are service related.
Credited Service
Assumption
First 2 Years
14.0%
Years 3-9
5.7%
Years 10-14
2.8%
15 Years and Greater
0%
Credited Service
Assumption
First Year
16.0%
Years 2-14
7.4%
15 Years and Greater
3.8%
Final Salary Load The projected salary at retirement is increased 20% to
account for lump sum payments.
Administrative Expenses
Payroll Growth
Funding Method
Actuarial Asset Method
$27,814 annually.
3% for amortization of all UAAL bases.
Frozen Initial Liability Cost Method.
Market Value, net of investment -related expenses.
SUMMARY OF PLAN PROVISIONS
(Through Ordinance No. 0-12-09)
Eligibility
Credited Service
Salar
Average Final Compensation
Member Contributions
Members hired prior to 10/I/l I
Members hired after 9/30/11
City and State Contributions
Normal Retirement
Date
Benefit
Members hired prior to 4/11/12
Members hired after 4/10/12
Form of Benefit
Eat Retirement
Eligibility
Benefit
Full-time employees who are classified as full-time
sworn Police Officers participate in the System as a
condition of employment.
Total years and fractional pacts of years of employment
with the City as a Police Officer.
Total cash compensation reportable on Form W-2, paid
during the fiscal year, for services rendered to the City as
a Police Officer.
Average Earnings for the highest 5 years during the 10
years immediately preceding retirement or termination.
8% of Salary, effective October 1, 2012 (5% of Salary
prior to that date).
5% of Salary.
Remaining amount required in order to pay current costs
and amortize unfunded past service cost, if any, over a
period not exceeding 30 years.
Earlier of. 1) age 55 and 10 years of Credited Service, or
2) age 52 and 25 years of Credited Service.
3.0% of Average Final Compensation times Credited
Service.
2.0% of Average Final Compensation times Credited
Service.
Ten Year Certain and Life Annuity (options available).
Age 50 and 10 Years of Credited Service.
Accrued benefit, reduced 3% per year prior to Normal
Retirement.
Vesting
Schedule 100% after 10 years of Credited Service.
Benefit Amount Member will receive the vested portion of his (her)
accrued benefit payable at the otherwise Normal
Retirement Date.
Disability
Eligibility
Service Incurred Covered from Date of Employment.
Non -Service Incurred 10 years of Credited Service,
Benefit
Service Incurred Accrued benefit, but not less than 42% of Average Final
Compensation.
Non -Service Incurred Accrued benefit, but not less than 25% of Average Final
Compensation.
Duration Payable for life, with ten years certain, or until recovery
(as determined by the Board).
Death Benefits
Pre -Retirement
Not vested
Refund of accumulated contributions.
Vested:
Accrued benefit payable to Beneficiary for 10 years at
otherwise Normal Retirement Date.
Post -Retirement
Benefits payable to beneficiary in accordance with
option selected at retirement.
Board of Trustees
a. Two City Council appointees,
b. Two Members of the System, elected by the
Membership, and
c. Fifth Trustee elected by other 4 and
appointed by City Council.