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Home My WebLink AboutO-16-07 Police Officers Retirement SystemORDINANCE NO. 0-16-07 AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING CHAPTER 58, LAW ENFORCEMENT, ARTICLE III, POLICE OFFICERS' RETIREMENT SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF SEBASTIAN; AMENDING SECTION 58-46, DEFINITIONS BY AMENDING THE DEFINITIONS OF "ACTUARIAL EQUIVALENT", "CREDITED SERVICE" AND "SPOUSE'; AMENDING SECTION 58-49, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 58-50, CONTRIBUTIONS; AMENDING SECTION 58-51, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 58-60, MAXIMUM PENSION; ADDING SECTION 58-70, SUPPLEMENTAL BENEFIT COMPONENT FOR SPECIAL BENEFITS; CHAPTER 185 SHARE ACCOUNTS; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, that; SECTION 1: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement System, of the Code of Ordinances of the City of Sebastian, is amended by amending Section 58- 46, Definitions, by amending the definitions of Actuarial equivalent, Credited service, Spouse, to read as follows: Actuarial equivalent means a benefit or amount of equal value, based upon the RP 2000 Combined Healthy Unisex Mortality Table and an interest rate actuanalyamatton report approvea by me boara. 1mS aeIlnitlon may only be amenaea 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. 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 -1- 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 after January 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. Spouse means the lawfi ' wife or husba~a e f member's or retiree's spouse under applicable law at the time benefits become payable. -2- SECTION 2: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement System, of the Code of Ordinances of the City of Sebastian, is amended by amending Section 58- 49, Finances and fund management, subsection (f)(2)c., to read as follows: (f)(2) 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, IRS Notice 2012-6 and Revenue Ruling 2014-24 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 or separate tax favored account maintained by an insurance company that is treated as a trust under section 401(f) or under section 457(g)(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. 2. 3. SECTION 3: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement System, of the Code of Ordinances of the City of Sebastian, is amended by amending Section 58- 50, Contributions, subsection (c) City contributions, to read as follows: (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, but in no event less than fourteen and two tenths (14.2) percent of payroll, as shown by the applicable actuarial valuation of the system. -3- SECTION 4: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement System, of the Code of Ordinances of the City of Sebastian, is amended by amending Section 58- 51, Benefit amounts and eligibility, subsection (a) Normal retirement date, to read as follows: SECTION 5: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement System, of the Code of Ordinances of the City of Sebastian, is amended by amending Section 58-60, Maximum pension, subsection (1) Additional limitation on pension benefits and adding new subsection (m) Effect of direct rollover on 415(b) limit, to read as follows: (1) (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 1223, Title 10, U.S. Code. ME SECTION 6: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement System, of the Code of Ordinances of the City of Sebastian, is amended by adding Section 58- 70., Supplemental benefit component for special benefits; Chapter 185 share accounts, to read as follows: Share Account Funding. (c) Allocation of Monies to Share Accounts. Allocation of Chapter 185 Contributions. a. -5- ifAl «] a RA in M Retirement Benefit. a. 2 Such payment shall be made as provided in subsection (fl. (2) Termination Benerit. a. with Section 58-54. b. Such payment shall be made as provided in subsection (fl. (3) Disability Benefit. a. b. Such payment shall be made as provided in subsection (fl. (4) Death Benefit. a. 0 Such payment shall be made as provided in subsection (fl. -7- SECTION 7: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Sebastian. SECTION 8: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 9: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. I" SECTION 10: That this Ordinance shall become effective immediately upon its adoption by the City Council. The foregoing Ordinance was moved for adoption by Councilmember Hill The motion was seconded by Councilmember McPartlan and, upon being put to a vote, the vote was as follows: Mayor Bob McPartlan aye Vice Mayor Jerome Adams ave Councilmember Andrea Coy aye Councilmember Jim Hill ave Councilmember Richard Gillmor The Mayor thereupon declared this Ordinance duly passed and adopted this 28th day of September 12016. ATTEST: Manette Williams, MMC leity Clerk Approved as to foum and legality for Rel' ct� by the City of Sebastian only: G%r" Robert A. Ginsburg City Attorney CITY OF SE e S IAN PF7jPRlA By: ✓ Mayor Bob McPartlan 510