HomeMy WebLinkAboutO-17-03 Police Officers Retirement SystemORDINANCE NO. 0-17-03
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; AMENDING SECTION 58-48,
BOARD OF TRUSTEES; AMENDING SECTION 58-50,
CONTRIBUTIONS; AMENDING SECTION 58-51, BENEFIT
AMOUNTS AND ELIGIBILITY; AMENDING SECTION 58-55,
OPTIONAL FORMS OF BENEFITS; ADDING SECTION 58-70.1,
MILITARY SERVICE PRIOR TO EMPLOYMENT; ADDING
SECTION 58-70,2, PRIOR POLICE SERVICE; ADDING SECTION
58-70.3, DEFERRED RETIREMENT OPTION PLAN; ADDING
SECTION 58-70.4, REEMPLOYMENT AFTER RETIREMENT;
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, to amend the definition of "Retirement", to read as follows:
Retirement means amember's separation from city employment with eligibility for immediate
receipt of benefits under the system (or entry into the Deferred Retirement Option Plan).
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 58-48,
Board of trustees, subsection (a), to read as follows:
Sec. 5848. 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,
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 forherein,
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
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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. DROP particinants can be elected as but not vote for elected
trustees. 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.
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 (a) Member contributions, to read as follows:
(a) Member contributions
(1) Amount. l]µJ11111V111LV1 VL"theiy$i LY111 J11lLLl LV LYL1 U11YUtV 111[(1\Y IY�Y,L{LW YV11UlULLL1V11J
to the fiand in the arnotrat of five fL:. 3alaly, Y Y^�Y Effective on the
date of the adoption of th or ce ad/o�m/ine this dr�}ee V YIJV l 1, L3i72 each
member of the system, 1111 N! VULJVYl 1, "M 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 contributions 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.
SECTION 4: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement
System, of the Code of Ordinances of the Cityof Sebastian, is amended by amending Section 58-51,
Benefit amounts and eligibility, subsection (b) Normal retirement benefit and adding subsection (f)
Cost -of -Living Adjustment, to read as follows:
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(b) Normal retirement benefit.
The amount of the monthly retirement income payable to a member hired
prior to October 1, 2011 who retires JuLJ y Illi t� I/lay 71, 2902 and on or
after his normal retirement date shall be an amount equal to the number ofthe
members years of credited service multiplied by three (3) percent of his
average final compensation.
Nvtwi1J..,J:.6 \lY Y.YYJ:IIs , .Y .',cnce,,-f For members hired on or after
Al,d.. 11, Z&H October 1, 2011, 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'1.,..... ..1 V1 J years of credited
service multiplied by two (2) percent of his average final compensation for
the dears of credited service Qinnin op or after Ayril l 1, 2012 and ending
October 1, 2016 and three ercenot'averaee final co�nq�r� tion for all
credited service before An(nl, 2012 and after October TICK,
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(fit Cost -of -Living Adiustment. Future retirees with a minimum of fifteeniiff
) years of
credited service shall receive a one percent (1%) automatic cost -of -living adjustment ing opthe first October 1 following the attainment of age fifty-eight (58). The COLA is a.Rae to all
forms of retirement, including normal and early retirement, terminated vested. disability retirees and
pre -retirement death beneficiaries.
SECTION 5: That Chapter 58, Law Enforcement, Article III, Police Officers' Retirement
System, of the Code of Ordinances of the Cityof Sebastian, is amended by amending section 58-55,
Optional Forms of Benefits, subsection (a)(4), to read as follows:
(4) r members who do not participate in the DROP pursuant to Section 58-70.3, the
Wmember 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 (15) 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.
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 58-70.1,
Military service prior to employment, to read as follows:
See. 58-70.1. Military service prior to employment.
The years or fractional parts of years that a olice officer serves or has served on active duty
in the military service of the Armed Forces of the United States, the United States Merchant Marine
or the United States Coast Guard, voluntarily or involuntaril and honorably or under honorable
conditions, prior to first and initial employment with the city police department shall be added to his
years of credited service provided that:
The member contributes to the fund the sum that he would have contributed, based
on his salary and the member contribution rate in effect at the time that the credited
service is requested, had he been a member of the system for the years or fractional
parts of years for which he is requesting credit Rlus amounts actuarially determined
such that the crediting of service does not result in anv, cost to the fund plus payment
of costs for all professional services rendered to the board in connection with the
purchase of years of credited service.
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Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement, in one year increments, upon the completion of five
(5) years of credited service.
Payment by the member of the re uired amount shall be made within six (6) months
of his request for credit, but not later than the retirement date, and shall be made in
one lump sum payment upon receipt of which credited service shall be given.
The maximum credit under this section shall be four (4) years.
Credited service purchased pursuant to this section shall count for all purposes,
except vesting.
SECTION 7: 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 58-70.2,
Prior police service, to read as follows:
Sec. 58-70.2. Prior police service.
Unless otherwise qrohibited by law, and except as provided for in section 58-46, the years
or fractional parts of years that a m tuber vrevip{�sly served as a full-time golice officer with the city
dump a period of t�revious emp�ovment and for which period accumulated contributions were
withdrawn from the fund, or the years and fractionalyarts of years that a memb r served as a full-
time police officer or the years and fractional parts of years that a me bel s �veYas apolice officer
for any other munici al, county or state law gpforcement department inn the tate of Florida shall be
added to his years o credited service provided that:
The member contributes to the fund the sum that he would have contributed. based
on his salary and the lrie}liber contribution rate in effect at the time that the credited
service is requested had a been a member of the system for the years or fractional
parts of years for which he is requesting credit plus amounts actuariallX determined
such that the crediting of service does not result in anxcost to the fund plus navinent
of costs for all professional services rendered to the board in connection with the
purchase of years of credited service.
Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement, in one year increments, upon the completion of five
(5) years of credited service.
Pav�ent by the police officer of the required amount shall be made within six (6)
months of his request for credit, but not later than thgptirerr��it date, and shall be
made in one lump sum payment upon receipt of w ich creddited service shall be
given.
The maximum credit under this section for service other than with the City of
Sebastian shall be four (4) years of credited service and shall count for all mpvoses,
exceyt vesting, There shall Ib no n{�px In port ps of credit foregor service with
the City of Sebastian and such credit scall count or all purposes, including vesting.
In no event, however, may credited service be purchased pursuant to this section for
prior service with any other municipal, county or state law enforcement department
police department, if such prior service forms or will form the basis of a retirement
benefit or t ensionYrom a different employer's retirement system or plan as set forth
in section 58-60, subsection (1)(2).
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fmuses of determining credit for prior service as a police officer as provided
}or in tlhius section, in addition to service as a police officer in this state, credit may
be�urchased by the member in the qTe mynner as provided above for federal, other
state, county or municipal service i the i)9ok servic is reco ized by the Criminal
Justice Standards and Training Commission within the DeDartment of Law
Enforcement, as provided under Chapter 943, Florida Statutes, or the police officer
provides proof to the board that such service is euiv4ent to a service required to
meet the definition of a nolice officer under Sec. 58-46, above.
SECTION 8: 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 58-70.3,
Deferred retirement option plan, to read as follows:
Sec. 58-70.3. Deferred Retirement Option Plan.
(a) Definitions. As used in this section 58-70.3, the followine definitions apply:
"DROP" -- The City of Sebastian Deferred Retirement Option Plan.
"DROP account" -- The account established for each DROP participant under
subsection (c).
bS) Particivation.
Eligibility to Participate. In lieu of terminating his employment as a notice officer.
any member who is eligible for normal retirement under the system and who is not
on unpaid leave status may elect to defer receipt of such service retirement nension
and to narticioate in the DROP.
Election to garticivate. A member's election to participate in the DROP must be
made in writing in a time and manner determined by the board and shall be effective
on the first day of the first calendar month which is at least fifteen (15) business days
after it is received by the board.
fL Period of Pax t' '''r�t*Q . A member who elects to Dartj'cigate in the DROP under
subsection AM, shalfnartici ate in the DROP for a Denod not to exceed sixty (60)
months be nnina at the time his election to Dartici ate in the DROP first becomes
effective. An election to participate in the DROP shall constitute an irrevocable
election to resign fromtyre service of the city not later than the date Provided for in
the previous sentence. A member may participate only once.
Termination ofvarticivation.
a. A member's participation in the DROP shall cease at the earlier of:
1. the end of his permissible period of participation in the DROP as
determined under subsection (b)(3); or
2. termination of his emnlovment as a police officer.
b. Upon the member's termination of ptipipa�ion in the DROP, ursuant to
subsection 1 above, all amounts vrovi`ddedd four in subsection (c)(, including
monthly benefits and interest, shall cease to be tr s e from the system
to his DROP account. Any amounts remaining in his ���P account shall be
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yaid to him in accordance with the provisions of subsection (d) when he
terminates his employment as a police officer.
C. A member who terminates his varticipation in the DROP under this
subsection (b)(4) shall not be permitted to again become a participant in the
DROP.
Effect ofDROP oarticibation on the system.
a. A member's credited service and his accrued benefit under the system shall
be determined on the date his election to participate in the DROP first
becomes effective. For purposes of determinirty the accrued benefit, the
member's salagv for the purposes of calculating his average final
cotriDensation shall include an amount eaual to any lump sum payments
which would have been paid to the member and included as salary as defined
herein, had the Temb@@r r tired under normal retirement and not elected
DROP Tart) civa``ion. Min er contributions attributable to any lump sums
used m the benefit calculation and not actually received by thg member all
be deducted from the first payments to the member's DROP account. The
member shall not accrue any additional credited service or any additional
benefits under the system (excqpt for any supplemental benefit payable to
DROP participants or any additional benefits Rrovided under any cost -of -
living adjustment for retirees in the system) while he is a participant in the
DROP. After p memb r commences pairporation, he shall not be permitted
to again contribute to the system nor shall he be eligible for disability or pre-
retirement death benefits.
b. No amounts shall bepaid to a member from the system while the member}s
a participant in the DROP. Unless otherwise specified in the system, if a
member s participation in the DROP is terminated other than by terminating
his emplovgent as a police officer, no amounts shall be paid to him from the
system until he terminates his employment as a police officer. Unless
otherwise sD ecified in the system, amounts transferred from the system to the
member's DROP account shall be paid directly to the member only on the
termination of his employment as a police officer.
(c) Funding.
Establishment of DROP account. A DROP account shall be established for each
member partic'pat in the DROP. A member's DROP account shall consist of
amounts transferred to the DROP under subsection (c)(2), and interest on those
amounts.
Transfers from retirement system.
a. As of the first daX of each month of a member's geriod of participation in the
DROP, the monthly retirement benefit he would have received under the
system had he terminated his emplovment as a police officer and elected to
receive monthly benefit payments thereunder shall be transferred to his
DROP account, except as otherwise provided for in subsection (b)(Qb. A
member's period of varticpation in the DROP shall be determined in
accordance with the provisions of subsections (b)(3) and (b)(4), but in no
event shall it continue past the date he terminates his employment as a nolice
officer.
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b. Except as otherwise provided in subsection (b)(4)b., a member's DROP
account under this subsection (c)(2) shall be credited with interest at an
effective rate of one and three tenths percent (1.3%siness per apnum coytyyour�i�d
monthly determined on the last buday of the prior month's endm_Q
balance and credited to the member's DROP account as of such date.
C. A member's DROP account shall onlx be credited with interest and monthly
benefits while the member is a participant 'n the DROP. A member's final
DROP account value for distribution to the member upon termination of
participation in the DROP shall be the value of the account at the end of the
month immediately preceding termination ofparti'civation plus any monthly
periodic additions made to the DROP account subsequent to the end of the
previous month, and prior to distribution. If a member fails to terminate
em Reryar(cipat�ig in the DROP for the permissible period of
DROP partrc3+p iog, then beginning with the member's fust month of
employment fo�lsowi the last month of the p rm sible period of DROP
participation, the member's DROP account wi[I no oneer be credited with
interest, nor will monthly benefits be transferred to the DROP account. All
such non -transferred amounts shall be forfeited and continue to be forfeited
while the member is employed by the police de�iartment, and no cost -of -
living adiustments shall be apqplied to the me�pnibei reg t during such period
of continued emglovment. A member emploveyty the police department
after the permissible period of DROP par ioipatipn will still not be eligible
for pre -retirement death or disability benefits and will not accrue additional
credited service.
Distribution ofDROP accounts on termination ofemplovment.
Eligibility for benefits. A member shall receive the balance in his DROP account in
accordance with the provisions of this subsection (d) upon his termination of
emplovment as a police officer. Exce t § provided in subsection (d) f 5). no amounts
shall be paid to a member from the I� O prior to his termination of emulovment as
a police officer.
Form of distribution.
a. Unless the member elects otherwise, distribution of his DROP account shall
be made in a lump sum, subiect to the direct rolloyergroyisiop set forth in
subsection (d`(6). Elections under this paragraph shhalt a in wnting and shall
be made within sixty (60) days.
b. Notwithstanding the preceding, if a member dies before his benefit is raid,
his DROP account shall be aid to his beneficii�v in such optional form as
his benefm rigv select. paid
beneficiary designation is made, the DROP
account shNe distributed to the members estate.
Date ofgavment ofdistribution. Except as qt1�@�yvise niovided in this subsection (d).
distribution of a member's DROP account shall be made as soon as drrrr��mi. tratiyeI
practicable following the member's temunati p of emplovigent. Distribution of the
amount in a Member's DROP account wiill not be made unless the Member
completes a written request for distribution and a written election, on forms
designated by the Board, to either receive a cash lump sum or a rollover of the lumn
sum amount.
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Proof ofdeath and right of beneficiary or other person. The board may require and
rely upon such proof of death and such evidence of the right of any beneficiary or
other person to receiv the value of a dece�s�dmemb�{'s DROP account as the board
may deem proper and its determination of"the right ofthat beneficiary or other person
to receive payment shall be conclusive.
Distribution limitation. Notwithstandingany other provision of subsection id). all
distributions from the DROP shall conform to the "Minimum Distribution Of
Benefits" provisions as provided for herein.
Direct rollover ofcertain distributions. Thi$ ubsection applies to distributions made
on or after Januvv 1, 2002. Notwithstanding any provisiop of the DROP to the
contrary, a distributee may elect to have an -K portion of" an elgjble rollover
distribution ppaid in a direct rollover as otherwise provided under the system in
section 58-69.
(e) Administration ofDROP.
Board administers the DROP. The �pneraldrpipLs$atioq of the DROP, the
responsibiliV�v for carrying out the R�]rovisions of t e DDRROO andel the resvonsibilny of
overseeing the investment of the DROP's assets shall be placed in the board. The
members of the board may apRoint from their number such subcommittees}vith such
powers as they shall determine,- may adopt such 4iniptive procedures and
regulations as they deem desirabe for the conduct o t eir a airs; may authorize one
or more of their number or any agent to execute or deliver any instrument or make
any payment on their behalf; mayTetain Vounsel, employ agents and provide for such
clerical, accounting, actuarial and consultingserr'yyices as they may require in carrying
out the provisions of the DROP; and may aocate among themselves or delegate to
other persons all or such portion of their duties under the DROP, other than those
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to them as trustee under any tru$$t afire rt�efit Adopted for use ip i�iplementing
the DROP, as they, in their sole discretion s�all decide. A trustee shall not vote on
any question relating exclusively to himself.
Individual accounts, records and re orts. The board shall maintain records showing
the operation and condition of the TROP, including records showing the individua
balances in each member's DROP account, and the board shall keen in convenient
form such data as may be necessary for the valuation of the assets and liabilities of
the DROP. The board shall prepare and distribute to members partic ating in the
DROP and other individuals or file with the appropriate goverpmental agencies, as
the case may be, all necessary descr'l tions rep Forts information returns, and data
required to be distributed or filed for t�e DIIOP pursuant to the Code and any other
applicable laws.
Establishment ofrules. Subject to the limitations of the DROP the board from time
to time shall establish rules for the administration of the DRO and the transaction
of its business. The board shall have discretionary authority to construe and interpret
the DROP (including but not limited to deterr}natign of an individual's el�g�bility for
DROP p�rticipatip,9, the right and amount of"any benefit payable under the DkOP
and the. dilate on whhich anX individual ceases to be a participant in the DROP. The
deprm�ation oqf the boar as to the interpretation of the DROP or its deteng;inaflt pn
of any dis uted questions shall be conclusive and final to the extent veruntted by
applicable law.
In
Limitation of liability.
a. The trustees shall not incur any liability individually or on behalf of any other
individuals for any act or failure to act, made in eood faith in relation to the
DROP or the funds of the DROP.
b. Neither the board nor any trustee of the board shall be responsible for any
reports finnished by any exnert retain( or emploved by the board, but they
shall be entitled to rely thereon as well as on certificates furnished by an
accountant or an pftuarv, and on all opinions of counsel. The board shall be
fully protected wit respect to any action taken or suffered by it in %ood faith
in reliance tpon such expert, accountant, actin or counsel, and all actions
taken or suffered in such reliance shall be conclusive anon any person with
any interest in the DROP.
(f) General provisions.
The DROP is not a setrZarate retirement Dlan. Instead, it is a nroeram under which
a member who is eli¢ible for normal retirementunder the rstem;navelect to accrue
future retirement benefits in the tia er trovided in this section 58-70.3 for the
remainder of his emplovmen rather than in the normal Fiarni p oyyided under the
gIan. Upon termination of�emplovment, a member is entitled to a lumn sum
distribution of his or her DROP account balance or may elect a rollover. The DROP
account distribution is in addition to the member's monthly benefit.
Notional account. The DROP account established for such a member is a notional
account, used only for the Rurgose of calculation of the DROP distribution amount.
It is not a separate account in the system. There is no change in the system's assets,
and there is no distribution available to the meTber ugtil the members termination
from the DROP. The member has no control over the investment of the DROP
account.
No emDlover discretion. The DROP benefit is determined n_ ursuant to a s_aecific
formula which does not involve employer discretion.
IRC limit. The DROP account distribution, alone with other benefits Payable from
the system, is subiect to limitation under Internal Revenue Code Section 415(b).
Amendment ofDROP. The DROP may be amended by an ordinance of the city at
any time and fromtime totime. and retroactively ifdeemed necessary oranprounate,
to amend in whole or in tart an or all of the provisions of the DROP. However,
except as otherwise provided bylaw no amendment shall make it possible for any
part of the DROP's funds to be used tor, or diverted to, puVoses other than for the
exclusive benefit of Verson entitled to benefits under the DROP. No amendment
shall be made which has the effect of decreasine the balance of the DROP account
of any member.
Facility of Davment. If a member or other person entitled to a benefit under the
DROP is unable to care for his affairs because of illness or accident or is a minor, the
board shall direct that any benefit due him shall be made onl to a dulv appointed
ley.�1 �presvptot�vg. Any va ent so made shall be a compete discharee of the
liabilities of the IiROP for that benefit.
Information. Each member, beneficiarvor other person entitled to a berieft before
any benefit shall be payable to him or on his account under the DROP, shall file with
the board the information that it shall require to establish his ri¢hts and benefits
under the DROP.
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Prevention of escheat. If the board cannot ascertain the whereabouts of any person
to wh(C a i)vm nt is due under the DROP, the board may, no earlier than three f3 )
years from the date such Davment is due, mail a notice of such due and owing
pavment to the last known address of suchperson, as shown on the records of the
board or the city. If such person has not made written claim therefor within three f3)
months of the date of the mailing, the board may, if it so elects and upon receiving
advice from counsel to the system, direct that such payment and all remaining
payinents otherwise due such Qerson be canceled on the records of the system. Upon
such cancellation, the system shall have no further liability therefor except that, in the
event such person or his beneficiary later notifies the board of his whereabouts and
reau�gts the pav�i{ent9r pavm nts due to him under the DROP, the amount so annlied
shad be paid to him in accordance with the provisions of the DROP.
Written elections. notification.
a. Any elections, notifications or designations made by a member pursuant to
the provisions of the DROP shall be made in writing and filed with the board
in a time and manner determined by the board under rules uniformly
applicable to all employees similarly situated. The board reserves the right
to change from time to time the manner for making notifications, elections
or designations by members under the DROP if it determines after due
deliberation that such action is iustifted in that it improves the administration
of the DROP. In the event of a conflict between the q_ovisions for making
an election, notification or designation set forth in the DROP and such new
administrative procedures, those new administrative procedures shall prevail.
b. Each member or Retiree who has a DROP account shall be responsible for
furnishing the board with his current address and any subsequent changes in
his address. Any notice required to be given to a member or Retiree
hereunder shall be deemed given if directed to him at the last such address
g'yen to the board and mailed by registered or certified United States mail.
If any check mailed by registered or certified United States mail to such
address is returned, mailing of checks will be sus ended until such time as
the member or Retiree notifies the board of his address.
Benefits not guaranteed. All benefits Da able to a memberorq the DROP shall be
paid only from the assets of the member's DROP ac qq��ppttancgpeither the city nor the
board shall have any duty or liability to furnish the 6I1:OP with any funds_, securities
or other assets except to the extent required by any applicable law.
11 Construction.
a. The DROP shall be construed, regulated and administered under the laws of
Florida, except where other applicable law controls.
b. The titles and headirq � of the subsections in this section 58-70.3 are for
convenience only. In the case of ambiguity or inconsistency, the text rather
than the titles or headings shall control.
Forfeiture of retirement benets. Nothingin this section shall be construed to
remove DROP participants from the application of any forfeiture Provisions
an9licable to the system. DROP participants shall be subiect to forfeiture of all
retirement benefits, including DROP benefits.
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Effect of DROP participation on emplovment. Participation in the DROP is not a
guarantee of em to ent and DROP participants shall be subject to the same
emglovment standards and policies that are applicable to employees who are not
DROP participants.
SECTION 9: 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 58-70.4,
Reemployment After Retirement, to read as follows:
See. 58-70.4. Reemolovment After Retirement.
(a) Any retireeynder this gptem, except for disability retirement as previously provided
for, may be reemployed by any public or private employer, except the city, and may receive
pompensatiog from that employm�r�t without limitR' g or restricting in any way the retirement
benefits payable under this system. Reemployment by the city shall be subject to the limitations set
forth in this section.
,(b) After normal retirement. Anvrei eeyvhoisretired under normal (or early) retirement
pursuant to this system and who is reenploved as a police officer and, by virtue of that
reeVIo ent is eli }ble to participate jn this system, shall upon being r emplgved, discontinue
recei t of beneaits. Upon reemployrl}en the member shall be deemed tore fullX vested and the
additional credited service accrued dunng the subsequent employment period shall be used in
computing a second �epefit r�}punt�ttributable to the subsequent employment pe od, whjchbenefit
amount shall be added to t�e benefit determined upon the initial retirement to determine the total
benefit payable upon final retirement. Calculations of benefits uyp retiretmegt shall be based upon
the benefit accrual rate average final compensation, and credited service (and early retirement
redt;ction factor, if ar prcable) as of that date and the retirement benefit apoynt for any subsequent
emptovrgent v riod shall be based upon the benefit accrual rate, average final compensation (based
only on the subsequent emvlovment period and not including any genod of DROP p icIvation).
and credited service (and early re�replent reduction factor, ifapglicable) as ofthe date of subseauent
retirement. The amount of any Bath or disability benefit received during a subs eauent➢enod of
e to ent shall be reduced by the amount of accrued benefit eligible to be paid for a Qnor period
of mployment. The optional form ofbenefit and any joint pensioner selected upon initial retirement
shall not be subject to chhaarryyge upon subsequent retirement except as otherwise provided herein, but
the.retiree rpav select a Itrent optional form and joint pensioner applicable only to the subseauent
retirement benefit.
(c) Any retiree who is retired under normal retirement pursuant to this system who is
reemploved by the City in aposition other than as ayolice officer, shall upon being reemQloved
continue receipt of benefits for the period of any subsequent employment period. Former ROI!
participants shall begin receipt of benefits under these circumstances.
A ter early retirement. Any retiree who is retired under early retirement rl�1ursuapt to
this system and who subsequently bec?p s an emp)oyee ofthe city in anv carjacifv, shall discommue
recei}�t of benefits from the system. If"te reemployed person, by virtue of his reemployrkient, is
eligible to participate in this system, that person shall accrue a second benefit as provided for in
subsection (b) above and benetit payments shall remain suspended during any such subsequent
employment period. If the reempllo gg,,� person is not eli 'ble tq palicipa�e in this system, that
persons pension, �enefitpavinepis sha�l�e suspended until the earlier of tor�}mattQp of employment
or such time as the reemployed}'et; a reaches the date that he would have been eligible for normal
retirement under this system hae continued}�lplpvment and not elected early retirement.
"Normal retirement" as used in this subsection shad be the current normal retirement date provided
for under this system.
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(e) ReemDlovmento(terminatedvestedDersons. Reemolovedterminated vested oersons
shall not be subiect to the provis��ns of this section until such time as they be¢in to actually receive
benefits. Upon receipt of benefits, terminated vested persons shall be treated as normal or early
retirees for Rmgoses of applvine t1�e Dr%visiops of this section and their status as an early or normal
retiree shall be determined by the date thev elect to beein to receive their benefit.
(I DROP Participants. Members or retirees who are or were in the deferred retirement
optionpplan shall have the options provided for in this section for reemplovment upon termination
of emplovment.
SECTION 10: Specific authority is hereby granted to codify and incorporate this Ordinance
in the existing Code of Ordinances of the City of Sebastian.
SECTION 11: All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
SECTION 12: If any section, subsection, sentence, clause, phrase of this ordinance, or the
particular application thereof shall be held invalid by anycourt, administrative agency, or other body
with appropriatejurisdiction, the remaining section, subsection, sentences, clauses, orphrases under
application shall not be affected thereby.
SECTION 13: That this Ordinance shall become effective immediately upon adoption by
the City Council.
The foregoing Ordinance was moved for adoption by Councilmember Hill
The motion was seconded by Councilmember Cov and upon being put to a vote, the
vote was as follows:
Mayor Bob McPartlan aye
Vice Mayor Andrea Coy ave
Councilmember Jim Hill aye
Councilmember Ed Dodd ave
Councilmember Linda Kinchen aye
PASSED ON FIRST READING, this 26th day of July 2017.
PASSED AND ADOPTED ON SECOND READING, this 23rd day of
August , 2017. W
MAYOR/��
ATTEST:
4ft(LERK
Approved as to form:
J/44
LO�Rlll—
ksh\dm\sebas\po1\06-05-17.ord
CITY
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