10-005
" I
August 10, 2009
October 1, 2009
ORDINANCE 10-005
AN ORDINANCE OF THE CITY OF BOYNTON BEACH, FLORIDA,
REPEALING ARTICLE III, OF CHAPTER 18 OF THE BOYNTON BEACH
CODE OF ORDINANCES, ENTITLED "PENSIONS FOR POLICE
OFFICERS," AND ADOPTING A NEW ARTICLE III IN REPLACEMENT
THEREOF TO BE ENTITLED "MUNICIPAL POLICE OFFICERS'
RETIREMENT TRUST FUND;" PROVIDING FOR CODIFICATION;
PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND,
PROVIDING FOR AN EFFECTIVE DATE HEREOF.
WHEREAS, the State Legislature of the State of Florida has enacted numerous
amendments to Chapter 185, Florida Statutes, known as the Municipal Police Officers'
Retirement Trust Fund; and
WHEREAS, the Federal law has been amended by the Heroes Earnings Assistance
and Relief Tax Act of 2008 ("HEART")(H.R. 6081; P.L. 110-245) was passed into law and
requires qualified pension plans to provide certain benefits; and
WHEREAS, the City Commission of the City of Boynton Beach, Florida, desires to
revise its Police Officers' Pension Ordinance in order to comply with the State Statutes and
Federal law changes;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOYNTON BEACH, FLORIDA:
Section 1 . The foregoing "WHEREAS" clauses are hereby certified as being true
and correct and are incorporated herein by this reference
Section 2. Article III of Chapter 18 of the Boynton Beach Code of Ordinances is
hereby repealed and a new Article III of Chapter 18 is hereby adopted as follows:
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ARTICLE III. MUNICIPAL POLICE OFFICERS' RETIREMENT TRUST FUND
Section 18-164. Creation and Maintenance of Fund and Retirement System
A. There is hereby created a special pension fund for the Police Officers of
Boynton Beach, Florida, to be known as the Boynton Beach Police Officers'
Pension Fund. All assets of every description held in the name of the
Boynton Beach Police Officers' Retirement Trust Fund shall continue to be
held, but such fund shall hereafter be known as the Boynton Beach Police
Officers' Pension Fund and shall be administered as set forth in this Article
of Chapter 18 of the City of Boynton Beach Code.
B. The Fund shall be maintained in the following manner:
1. By payment to the Fund of the net proceeds of the .85% excise tax
which is imposed by the City of Boynton Beach upon certain casualty
insurance companies on their gross receipts of premiums from
holders of policies, which policies cover property within the corporate
limits of the City of Boynton Beach as authorized in Chapter 185,
Florida Statutes, amended. These amounts are to be deposited with
the Board of Trustees within five (5) days of receipt by the
municipality. Chapter 185, Fla. Stat.
2. By the payment to the Fund of seven percent (7%) of the salary of
each full time police officer duly appointed and enrolled as a member
of the City of Boynton Beach Police Department; which seven percent
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(7%) shall be picked up, rather than deducted, by the City of Boynton
Beach from the compensation due to the Police Officer and paid over
to the Board of Trustees of the Boynton Beach Police Officers'
Pension Fund on a bi-weekly basis. All pickup contributions shall be
treated as employer contributions for the purposes of determining tax
treatment under the Internal Revenue Code of 1986, as amended. All
such pick up amounts shall be considered as employee contributions
for purposes of this plan. The percentage deducted from the police
officers' salaries are to be deposited with the Board of Trustees
immediately. Chapter 185, Fla. Stat., Boynton Beach Code of
Ordinances Sec. 18-170.
3. By all fines and forfeitures imposed and collected from any police
officer because of the violation of any rule and regulation adopted by
the Board of Trustees. Chapter 185, Fla. Stat.
4. By mandatory payment at least quarterly by the City of Boynton
Beach a sum equal to the normal cost and the amount required to
fund any actuarial deficiency shown by an actuarial valuation as
provided in Part VII of Chapter 112, Florida Statutes. Chapter 185,
Fla. Stat. On an annual basis, the Board of Trustees will evaluate the
actuarial assumptions used.
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5. By all gifts, bequests, and devises when donated to the fund. Chapter
185, Fla. Stat.
6. By all accretions to the fund by way of interest or dividends on bank
deposits, or otherwise. Chapter 185, Fla. Stat.
7. By all other sources or income now or hereafter authorized by law for
the augmentation of the Boynton Beach Police Officers' Pension
Fund. Chapter 185, Fla. Stat.
C. Under no circumstances may the City of Boynton Beach reduce the member
contribution to less than one-half (Yz) of one percent (1 %) of salary.
Section 18-165. Definitions.
A. The following words or phrases, as used in this ordinance, shall have the
following meaning:
1. "Actuarial Equivalence" or "Actuarially Equivalent" means that any
benefit payable under the terms of this Plan in a Form other than the
normal form of benefit shall have the same actuarial present value on
the date payment commences as the normal form of benefit. For
purposes of establishing the actuarial present value of any form of
payment, all future payments shall be discounted for interest and
mortality by using eight percent (8%) interest and the 1983 Group
Annuity Mortality Table, blending eighty percent (80%) Males and
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twenty percent (20%) Females, with ages set ahead five (5) years in
the case of disability retirees.
2. "Average final compensation" shall mean the average total
remuneration received by a police officer during the best five (5)
years of service with the city within the last ten (10). Chapter 185,
Fla. Stat., Boynton Beach Code of Ordinances Sec. 18-168, as
amended by Ordinance No. 0 00-18 and 00-004.
3. "Compensation" or "salary" shall mean the total cash remuneration
including lump sum payments for accumulated sick and vacation
leave and "overtime" paid by the primary employer to a police officer
for services rendered, but not including any payments for extra duty
or a special detail work performed on behalf of a second party
employer paid directly to the police officer by the second party
employer and amounts paid to a police officer after December 31.
2008 as differential waQes durinQ any period of active duty
militarv service lasinQ more than 30 davs. This definition also
excludes severance pay and other similar payments which are not for
services rendered. The member's compensation or salary contributed
as employee-elective salary reductions or deferrals to any salary
reduction, deferred compensation, or tax-sheltered annuity program
authorized under the Internal Revenue Code shall be deemed to be
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the compensation or salary the member would receive if he or she
were not participating in such program and shall be treated as
compensation for retirement purposes under this Article.
For any person who first becomes a member in any Plan year
beginning on or after January 1, 1996, compensation for any Plan
year shall not include any amounts in excess of section, 401(a)(17)
of the Internal Revenue Code limitation (as amended by the Omnibus
Budget Reconciliation Act of 1993), which limitation of $150,000 shall
be adjusted as required by federal law for qualified government plans
and shall be further adjusted for changes in the cost of living in the
manner provided by section 401 (a)(17)(B) of the Internal Revenue
Code. For any person who first became a member prior to the first
plan year beginning on or after January 1, 1996, the limitation on
compensation shall be not less than the maximum compensation
amount that was allowed to be taken into account under the plan as
in effect on July 1, 1993, which limitation shall be adjusted for
changes in the cost of living since 1989 in the manner provided by
section 401 (a)(17)(B) of the Internal Revenue Code. Chapter 185,
Fla. Stat.
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4. "Creditable service" or "credited service" shall mean the aggregate
number of years of service and fractional parts of years of service of
any police officer, omitting intervening years and fractional parts of
years when such police officer may not have been employed by the
municipality subject to the following conditions:
a. No police officer will receive credit for years or fractional parts
of years of service if he or she has withdrawn his or her
contributions to the fund for those years or fractional parts of
years of service, unless the police officer repays into the Fund
the amount he or she has withdrawn, plus interest as
determined by the board in accordance with 918-172.
b. A police officer may voluntarily leave his or her contributions in
the Fund for a period of five (5) years after leaving the employ
of the police department, pending the possibility of his or her
being rehired by the same department, without losing credit for
the time he or she has participated actively as a police officer.
If he or she is not reemployed as a police officer with the same
department within five (5) years, his or her contributions shall
be returned to him or her without interest.
c. In determining the creditable service of any police officer,
credit for up to five (5) years of the time spent in the military
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service of the Armed Forces of the United States shall be
added to the years of actual service, if:
(1 ) The police officer is in the active employ of the
municipality prior to such service and leaves a position,
other than a temporary position, for the purpose of
voluntary or involuntary service in the Armed Forces of
the United States.
(2) The police officer is entitled to reemployment under the
provisions of the Uniformed Services Employment and
Reemployment Rights Act.
(3) The police officer returns to his or her employment as
a police officer of the municipality within one (1) year
from the date of his or her release from such active
service except that effective Januarv 1. 2007. police
officers who die or become disabled while servina
on active duty militarv service shall be entitled to
the riahts of this section even thouah such member
was not re-employed by the City as a police officer.
Members who die or become disabled while on
active duty militarv service shall be treated as
thouah re-employed as a police officer the day
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before the member became disabled or died. and
then considered for entitlement for a death or
disability benefit. Ifthe Member's death or disability
arises out of the Member's active service in the
militarv. then the Member is to be entitled to a duty
death or duty disability benefit. If the death or
disability occurs while the Member is servina on
active duty militarv service but does not arise out of
such service. then the Member. if vested. is entitled
to a non-duty disability benefit.
d. Continuous service with the employer shall not be broken in
the event of :
(1 ) Absence on an approved leave of absence;
(2) Absence from work because of occupational injury or
disease incurred in employment for which a police
officer is entitled to Workers' Compensation payments;
(3) Absence due to service in the armed forces of the
United States provided the officer shall re-enter
employment with the City within one (1) year of
discharge.
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5. "Beneficiary" shall mean any person, including the estate of the
member, who is entitled to receive a pension benefit payable from the
Boynton Beach Police Officers' Pension Fund upon the death of a
member or participant. Chapter 185, Fla. Stat.
6. "Fund" or "Police Officers' Pension Fund" shall mean the Boynton
Beach Police Officers' Pension Fund. Chapter 185, Fla. Stat.
7. "Plan year" shall mean the fiscal year commencing October 1st and
ending the following September 30th. Boynton Beach Code of
Ordinances Sec. 18-171, Ord. No. 90-23, 91, 8-7-90.
8. "Police officer" shall mean any person who is elected, appointed or
employed full time by the City of Boynton Beach, who is certified or
required to be certified as a law enforcement officer in compliance
with 9943.1395, 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,
criminal, traffic or highway laws of the state. This definition includes
all certified supervisory and command personnel whose duties
include, in whole or in part, the supervision, training, guidance, and
management responsibilities of full-time law enforcement officers,
part-time law enforcement officers or auxiliary law enforcement
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officers as the same are defined in 9943.10(6) and (8), Florida
Statutes. Chapter 185, Fla. Stat.
9. "Retiree" or "retired police officer" shall mean a police officer who has
entered retirement status. For the purposes of the Deferred
Retirement Option Plan (DROP), a police officer who enters the
DROP shall be considered a retiree for all purposes of the plan.
Chapter 185, Fla. Stat.
10. "Retirement" shall mean a police officer's separation from City
employment with immediate eligibility for receipt of benefits under the
plan. For purposes of the DROP, "retirement" means the date a
police officer enters the DROP. Chapter 185, Fla. Stat.
B. The masculine gender includes the feminine and words of the singular with
respect to persons include plural and vice versa.
Section 18-166. Board of Trustees Created.
A. Board of Trustees. There is hereby created a Board of Trustees of the
Boynton Beach Police Officers' Pension Fund which shall be solely
responsible for administering the Pension Fund. The Board of Trustees shall
be a legal entity, with the power to bring and defend lawsuits of every kind,
nature and description, and to the extent required to accomplish the intent,
requirements and responsibilities provided for in this Article. The Board shall
consist of five (5) Trustees as follows:
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1. Two (2) legal residents of the City, who shall be appointed by the City
Commission. Effective for terms beainnina after the effective date
of this Ordinance. each Eaeh City Trustee shall have a term offour
(4) years but serve serves at the pleasure of the City Commission.
Each City Trustee may succeed himself or herself as a Trustee.
2. Two (2) police officer participants of the City of Boynton Beach Police
Officers Pension Fund, who are elected by a majority of the police
officer participants in the Fund. Elections shall be held under such
rules and regulations as the Board of Trustees shall from time to time
adopt. Effective for terms beainnina after the effective date of
this Ordinance. each Eaeh police officer Trustee shall serve as a
Trustee for a period of four (4) two (2) years, unless he or she sooner
ceases to be a police officer in the employ of the Boynton Beach
Police Department, whereupon their successor shall be elected by a
majority of the participants of the Boynton Beach Police Officers'
Pension Fund. Each police officer Trustee may succeed himself or
herself as a Trustee.
3. A fifth Trustee shall be chosen by the majority of the other four (4)
Trustees. This fifth Trustee's name shall be submitted to the City
Commission, which shall, as a ministerial duty, appoint such person
to the Board as a fifth Trustee. Effective for terms beainnina after
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the effective date of this Ordinance. the ~ fifth Trustee shall
serve as a Trustee for a period of four (4) tvvo (2) years, and may
succeed himself or herself as a Trustee.
B. Board Vacancies; Procedures to Fill Same. In the event a Trustee provided
for in Section 18-166(A)(2) ceases to be a police officer in the employ of the
City of Boynton Beach Police Department, he shall be considered to have
resigned from the Board of Trustees. In the event such a Trustee shall
resign, be removed, or become ineligible to serve as Trustee, the Board
shall, by motion, declare that office of Trustee vacated as of the date of
adoption of such motion. If such a vacancy occurs in the office of Trustee
within ninety (90) days of the next succeeding election for Trustee, the
vacancy shall be filled at the next regular election for the unexpired portion
of the term; otherwise, the vacancy shall be filled for the unexpired portion
of the term at a special election called by the Board. In the event a Trustee
provided for in Section 18-166(A)(1) and (3) shall resign, be removed or
become ineligible to serve as Trustee, the Board shall, by motion, declare
that office of Trustee vacated as of the date of adoption of the motion. The
successor for the unexpired portion of the term shall be chosen in the same
manner as an original appointment.
C. Board Meetings: Quorum: Procedures. The Board of Trustees shall hold
meetings regularly, at least once each quarter and shall designate the time
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and place thereof. At any meeting of the Board, three (3) Trustees shall
constitute a quorum. Each Trustee shall be entitled to one (1) vote on each
question before the Board and at least three (3) concurring votes shall be
required for a decision by the Board at any of its meetings. The Board shall
adopt its own rules and procedures and shall keep a record of its
proceedings. All meetings of the Board shall be open to the public. No
Trustee shall take part in any action in connection with their own participation
in the Fund, and no unfair discrimination shall be shown to any individual
police officer participating in the Fund.
1. Board Chairman and Secretary.
a. The Board of Trustees shall, by majority vote, elect from its
members a Chairman and a Secretary.
b. The secretary of the Board shall keep:
(1 ) a complete minute book of the actions, proceedings or
hearings of the Board;
(2) A record of all persons receiving retirement payments
under the plan which includes the time when the
pension is allowed and when the pension shall cease to
be paid; and
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(3) A list of all police officers employed by the municipality
which includes the name, address and dates of hire and
termination.
D. Compensation. The Trustees of the Boynton Beach Police Officers' Pension
Fund shall not receive any compensation for their services as such, but may
receive expenses and per diem when performing official duties in
administering the fund.
Section 18-167. Powers of the Board of Trustees.
A. The Board of Trustees may:
1. Invest and reinvest the assets of the Boynton Beach Police Officers'
Pension Fund in annuity and life insurance contracts of life insurance
companies in amounts sufficient to provide, in whole or in part, the
benefits to which all the participants in the Pension Fund shall be
entitled under the provisions of this Article and pay the initial and
subsequent premiums thereon from the integral part of the Fund. If
current state contributions are adequate to fund minimum
requirements of Chapter 185, Florida Statutes additional State funds
may be used to provide benefits that exceed requirements of Chapter
185.
2. The Board shall have the power and authority to invest and reinvest
the monies of the Fund and to hold, purchase, sell, assign, transfer,
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and dispose of any securities and investments held in the Fund,
including the power and authority to employ counseling or investment
management services. The aim of the investment policies shall be to
preserve the integrity and security of Fund principal, to maintain a
balanced investment portfolio, to maintain and enhance the value of
the Fund principal, and to secure the maximum total return on
investments that is consonant with safety of principal, provided that
such investments and re-investments shall be limited only by the
investments permitted by the investment policy guidelines adopted by
the Board in accordance with Florida law, notwithstanding the
provisions of 918-221 of the Code. Further, notwithstanding the
foregoing, investments in foreign investments are limited in
accordance with 185.06(1)(b)4. The Board must discharge these
duties with respect to the plan solely in the interest of the participants
and beneficiaries and (i) for the exclusive purpose of providing
benefits to participants and their beneficiaries and defraying
reasonable expenses of administering the plan; (ii) with the care, skill,
prudence, and diligence under the circumstances then prevailing that
a prudent person acting in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a like character
and with like aims; and (iii) by diversifying the investments of the plan
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so as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so.
3. Issue drafts upon the Boynton Beach Police Officers Pension Fund
pursuant to this Article and rules and regulations prescribed by the
Board of Trustees. All such drafts shall be consecutively numbered
and shall be signed by the Chairman and Secretary of the Board or
their designee and shall state upon their faces the purpose for which
the drafts are drawn. The City Treasurer shall retain such drafts when
paid, as permanent vouchers for disbursements made, and no money
shall be otherwise drawn from the Fund.
4. Convert into cash any securities of the Fund as it may deem
advisable, having regard for the cash requirements of the fund.
5. Keep complete record of all receipts and disbursements and of the
Boards, acts and proceedings.
6. The Board of Trustees 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 but the books and records
shall at all times show that all investments are part of the Fund.
B. The sole and exclusive administration of, and the responsibilities for, the
proper operation of the retirement fund and for making effective the
provisions of this chapter are vested in the Board of Trustees.
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C. The Board of Trustees shall retain a professionally qualified independent
consultant who shall evaluate the performance of any existing professional
money manager and shall make recommendations to the Board of Trustees
regarding the selection of money managers, if necessary. The term
"professionally qualified independent consultant" shall have the meaning as
set forth in 9185.06(5 )(b), Florida Statutes.
D. The Board of Trustees may employ such independent professional, technical
or other advisers as may be needed to fulfill the Board's responsibilities
under this Pension Plan. These professionals include but are not limited to:
legal counsel, actuary and certified public accountants. If the Board chooses
to use the City's legal counsel, actuary or other professional, technical or
other advisers, it must do so only under terms and conditions acceptable to
the Board.
E. Notwithstandina anvthina else in this subsection and as provided in
Florida Statutes ~215.473. the board of trustees must identify and
publicly report any direct or indirect holdinas it may have in any
scrutinized company. as defined in that section. Beainnina Januarv 1.
2010. the Board must proceed to sell. redeem. divest. or withdraw all
publicly traded securities it may have directly in that company. The
divesture of any such security must be completed bY September 10.
2010. The board and its named officers or investment advisors may not
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be deemed to have breached their fiduciary duty in any action taken to
dispose of any such security. and the board shall have satisfactorily
discharaed the fiduciary duties of loyalty. prudence. and sole and
exclusive benefit to the participants of the pension fund and their
beneficiaries if the actions it takes are consistent with the duties
imposed by Florida Statutes ~215.473. as provided for in Florida
Statues 185.06(7) and the manner of the disposition. if any. is
reasonable as to the means chosen. For purposes of determininQ
which companies are scrutinized companies. the Board may utilize the
list of scrutinized companies as developed bY the Florida State Board
of Administration. No person may brina any civil. criminal. or
administrative action aaainst the board of trustees or any employee.
officer. director. or advisor of such pension fund based upon the
divesture of any security pursuant to this subsection.
Section 18-168. Membership
All police officers who are participants in the Fund as of the effective date of this
ordinance shall be members of this retirement system. Each police officer shall be
included in this plan on the date of hire.
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Section 18-169. Requirements for Retirement-Benefit Amounts
A. Normal Retirement
1. Normal Retirement Date. The normal retirement date of each police
officer shall be the first day of the month coinciding with, or next
following, the date on which he or she has attained and completed
twenty (20) years of service or the first day of the month coinciding
with or next following the date on which he or she has attained age
fifty-five (55) and completed ten (10) years of service or age fifty (50)
and completed fifteen (15) years of service.
2. Normal Retirement Benefit. The normal retirement benefit payable to
a police officer who retires on or after the normal retirement date shall
be an amount equal to the number of years of his or her credited
service multiplied by three and one half percent (3.5%) of his or her
average final compensation.
3. Form of Benefit. A retired police officer's retirement benefit normally
shall be payable in the form of a monthly life annuity with 120 monthly
payments guaranteed. This form of annuity provides for a retirement
benefit payable monthly to the retired employee during their lifetimes
with a guarantee that not less than 120 monthly retirement benefits
shall be paid, even if the retired employee dies prior to the receipt of
120 payments.
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B. Early Retirement.
1. Early Retirement Date An employee who has attained age fifty (50)
and completed at least ten (10) years of credited service may elect to
terminate employment and retire on an Early Retirement Date which
may be the first day of any month after ten (10) years of service and
attainment of age fifty (50).
2. Early Retirement Benefit. The monthly amount of early retirement
benefits payable to a police officer who retires on the Early
Retirement date shall be determined in accordance with Sec. 18-
169(A) based on credited service to the early retirement date subject
to an actuarial reduction of one and one-half percent (1.5%) per year
of service to take into account the police officer's younger age and the
earlier commencement of retirement benefits. The early retirement
benefit shall be paid in accordance with 918-169.(A) .
C. Disability Retirement.
1. Service Incurred. Any member who receives a medically
substantiated service connected injury, disease or disability which
injury, disease or disability totally and permanently disabled him or her
to the extent that in the opinion of the Board of Trustees, he or she is
wholly prevented from rendering useful and efficient service as a
police officer shall receive a monthly benefit equal to sixty-six and
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two-thirds percent 66 2/3% of his basic rate of earnings in effect on
the date of disability. Such benefit shall be payable on the first day of
each month, commencing on the first day of the month following the
latter to occur of the date on which the disability has existed for three
(3) months and the date the Board of Trustees approved the payment
of such retirement income. A disability retiree may select from the
optional forms of benefits available to service retirees in accordance
with section 18-170. In the event of recovery prior to the otherwise
normal retirement date, credit for service during the period of disability
shall be granted for purposes of subsequent retirement benefits.
Subsequent retirement benefits will be actuarially reduced to account
for the benefits that were paid during the period of disability. The
amount of the disability benefit payment from the fund shall be
reduced by any amounts paid from worker's compensation and the
federal social security system. The reduction for social security
benefits shall be in the amount of the primary insurance amount (PIA)
only, and future increases, if any, in the disabled member's social
security disability benefits shall not serve to reduce any further the
disability benefit from the fund. The reduction for social security shall
terminate upon the attainment of age sixty-five (65). The pension
benefit may only be reduced to the extent that the total of the benefits
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from this Fund, workers' compensation and social security benefits
exceed one hundred percent 100% of the disabled member's basic
rate of earnings on the date of disability. However, in all cases the
benefit will be at least forty-two percent (42%) of average final
compensation.
Any condition or impairment of health of a member caused by
tuberculosis, hypertension, heart disease, hardening of the arteries,
hepatitis, or meningococcal meningitis resulting in total or partial
disability or death, shall be presumed to be accidental and suffered
in the line of duty unless the contrary be shown by competent
evidence. Any condition or impairment of health caused directly or
proximately by exposure, which exposure occurred in the active
performance of duty at some definite time or place without willful
negligence on the part of the member, resulting in total or partial
disability, shall be presumed to be accidental and suffered in the line
of duty, provided that such member shall have successfully passed
a physical examination upon entering such service, which physical
examination including electrocardiogram failed to reveal any evidence
of such condition. In order to be entitled to presumption in the case
of hepatitis, meningococcal meningitis, or tuberculosis, the member
must meet the requirements of 9112.181, Florida Statutes. The final
decision whether a member meets the requirements for duty disability
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pension rests with the Board and shall be based on substantial
competent evidence on the record as a whole.
2. Nonse/Vice incurred. Effective October 1,2000, any member with ten
(10) years of continuous service who receives a nonservice incurred
injury, illness, disease or disability, and which illness, injury, disease
or disability totally and permanently disables him to the extent that, in
the opinion of the Board of Trustees, he is wholly prevented from
rendering useful and efficient service as a police officer, shall receive
from the fund in equal monthly installments an amount equal to three
and one half percent (3.5%) of his average final compensation for
each year of continuous service until death or recovery from disability
whichever shall first occur, provided, however, the maximum benefit
to which a member may become entitled under this paragraph shall
not exceed sixty percent (60%) of his average final compensation
during said period, but in all cases the benefit will be at least twenty-
five percent (25%) of average final compensation during said period.
Such benefit shall be payable on the first day of each month,
commencing on the first day of the month following the latter to occur
of the date on which the disability has existed for three (3) months
and the date the Board of Trustees approved the payment of such
retirement income.
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3. Medical Board. Whenever it becomes necessary for the board to
avail itself of the services of physicians in the case of an application
for disability retirement, the board shall designate a medical board to
be composed of competent medical authorities and/or specialists, as
needed. The medical board shall arrange for and pass upon the
medical examinations required under the provisions of this section,
shall investigate all essential statements or certificates made by or on
behalf of a member in connection with an application for disability
retirement and shall report in writing to the Board its conclusions and
recommendations upon all matters referred to it. The payment for
such services shall be determined by the Board.
4. Return to active duty from disability retirement. In the event a
member who has been retired on a pension on account of permanent
and total incapacity regains his health and is found by the medical
board designated by the Board to be in such physical and mental
condition as to meet the requirements of the personnel department for
service as a police officer of the city, the Board shall order his pension
discontinued, and he shall be ordered to resume active duty in the city
at the same rate of compensation currently in effect for his pay grade.
The Board shall review periodically, in its discretion, the condition of
any member receiving a pension for disability and if there is
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substantial evidence that the retired member is capable of performing
service acceptable to the city as a police officer, he shall be ordered
to resume active duty and his pension shall be discontinued.
5. Disability Exclusions. No member shall be granted a disability
pension upon a showing to the satisfaction of the Board:
a. That the disability resulted from an intentionally self-inflicted
wound, injury or ailment, or
b. That the disability resulted from excessive and habitual use of
narcotics, drugs, or intoxicants (alcoholic beverages);
c. That the disability resulted from an injury or disease sustained
by the police officer while willfully and illegally participating in
fights, riots, civil insurrections or while committing a crime;
d. That the disability resulted from an injury or disease sustained
by the police officer while serving in any armed forces. This
exclusion does not affect members who have become
disabled as a result of intervenina militarv service under
the federal Heroes Earninas Assistance and Relief Tax Act
of 2008 tH.R. 6081: P.L. 110-245);
e. That the disability resulted from an injury or disease sustained
by the police officer after employment has been terminated; or
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f. That, in the case of a duty disability only, the disability resulted
from an injury or disease sustained by the police officer while
working for anyone other than the City and arising out of such
other employment.
6. Further disability provisions. Each member applying for a service
incurred disability benefit from this fund shall be required to apply for
disability benefits under social security, and, if applicable, workers'
compensation. Furthermore, each person granted a service incurred
disability shall be required to submit to the bBoard , no later than
March 1 st of each year, a statement showing the monthly amount of
social security (PIA only) and workers' compensation benefits
received by him or her as of March 1 st. Willful refusal by such
persons to comply with these regulations shall be grounds for the
termination of or nonapproval of disability benefits from this system.
However, the Board shall exercise its discretion in each case.
D. Death benefit.
1. If any member shall die prior to retirement or other termination of
employment with the city and that death is found by the Board of
Trustees to have occurred in the line of duty regardless of the years
of service, a death benefit shall be payable to the deceased member's
spouse. The benefit shall equal three and one half percent (3.5%) of
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average final compensation for each year of continuous service;
provided, however, the benefit will be at least thirty percent (30%) of
average final compensation. It shall be payable in equal monthly
installments commencing the first day of the month following the date
of death and ceasing upon the death of the spouse. If there is no
spouse, the benefit, if any, will be paid to the deceased participant's
estate.
2. If any member with at least ten (10) years of continuous service shall
die prior to retirement or other termination of employment with the
city, a death benefit shall be payable to the deceased member's
spouse. The benefit shall equal three and one half percent (3.5%) of
average final compensation for each year of continuous service. It
shall be payable in equal monthly installments commencing the first
day of the month following the date of death and ceasing upon the
death or remarriage of the spouse. If there is no spouse, the benefit,
if any, will be paid to the deceased participant's estate.
3. If a member dies before being eligible to retire, the heirs, legatees,
beneficiaries or personal representatives of such deceased member
shall be entitled to a refund of 100% of the contributions made by the
member to the Fund, without interest.
E. Separation from Service.
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1. Effective for terminations on and after October 1, 2002, if a member
leaves the service of the City before accumulating aggregate time of
5 years toward retirement and before being eligible to retire, such
member shall be entitled to a refund of all of his or her contributions
made to the Fund, without interest.
2. If any member who had been in the service of the City for at least ten
(10) years elects to leave his or her accrued contributions in the Fund,
such police officer upon attaining age fifty (50) years or more (without
reaching what would have been twenty years of service had he not
terminated his employment) may receive an early retirement benefit
at the actuarial equivalent of the amount of such retirement income
otherwise payable to him or her at early retirement or upon attaining
what would have been normal retirement had he not terminated his
employment, such police officer may receive his or her accrued
normal retirement benefit.
3. Effective for terminations after October 1, 2002, if any member who
had been in the service of the city for at least five (5) years elects to
leave his or her accrued contributions in the Fund, the police officer
upon attaining age fifty-five (55) with 10 or more years of service (had
he or she not terminated employment) or reaching what would have
been twenty (20) years of service (had he or she not terminated his
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or her employment) may receive the accrued normal retirement
benefit. The member may receive the benefits payable in the normal
form or any option available under Section 18-170.
F. Monthly Supplemental Benefits.
1. Effective October 1, 2006, any eligible retiree, including DROP
participants, or beneficiary receiving pension benefits is entitled to a
monthly supplemental pension benefit. The benefit pool will be
funded by one hundred percent (100%) of the annual earnings and
ten percent (10%) of the principal created by the contributions set
forth in sub-paragraph b below.
a. Such benefit will be funded by a one (1 %) contribution from the
Members and a one (1%) contribution from the 185 monies.
The Member and the 185 contributions shall be effective
October 1, 2001. Employees will contribute to this benefit
through twenty (20) years of service.
b. The distribution provided for in this paragraph shall be divided
among eligible retirees on a pro-rata basis in shares. The
shares shall be determined based upon the sum of an eligible
retiree's years and partial years of credited service (maximum
credit is twenty (20) years) plus the eligible retiree's years and
partial retirement years as of September 30 of the current year
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(maximum credit of twenty (20) years). The share value shall
be determined by totaling all of the shares of eligible retirees
divided into the current years' total distribution amount. An
individual eligible retiree's distribution shall be equal to the
number of the eligible retiree's shares multiplied by the share
value.
c. This benefit shall be payable annually in a lump sum as of
October 1, of each year, beginning December 1, 2006. The
benefit shall be payable to the eligible retiree, including DROP
participants, or any beneficiary eligible to receive benefits as
a result of the death of a retiree. The benefit shall cease upon
the death of the eligible retiree or beneficiary, whichever is the
last surviving pension recipient.
2. Beginning October 1, 2003, 100% of the money received pursuant to
Chapter 185, Florida Statutes, ("185 money"), each calendar year in
excess of the base amount of $465,087, plus one percent (1%) of
payroll annually to fund the benefit as provided in paragraph 1 , plus
any 185 money held in reserve, shall be distributed to all current
eligible retirees, including DROP participants, or beneficiaries
receiving benefits. These supplemental benefit payments will be
distributed according to the formula set forth in sub-paragraph a. This
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distribution is in addition to the benefit provided for in paragraph 1
which shall begin October 1, 2006.
a. The distribution provided for in this paragraph shall be divided
among eligible retirees on a pro-rata basis in shares. The
shares shall be determined based upon the sum of an eligible
retiree's years and partial years of credited service (maximum
credit is twenty (20) years) plus the eligible retiree's years and
partial retirement years as of September 30 of the current year
(maximum credit of twenty (20) years). The share value shall
be determined by totaling all of the shares of eligible retirees
divided into the current years' total distribution amount. An
individual eligible retiree's distribution shall be equal to the
number of the eligible retiree's shares multiplied by the share
value.
b. Allocations for surviving spouses and surviving dependent
children shall be based upon the formula in this paragraph,
adjusted by the percentage of the optional form of benefit
selected.
c. This benefit shall be payable annually in a lump sum as of
June 1 of each year, beginning June 1, 2004. The benefit
shall be payable to the eligible retiree, including DROP
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participants, or any beneficiary eligible to receive benefits as
a result of the death of a retiree. The benefit shall cease upon
the death of the eligible retiree or beneficiary, whichever is the
last surviving pension recipient.
3. Definitions.
a. For purposes of this section only, "credited service" means the
number of years and partial years of service originally used by
the pension plan to determine pension benefits. For eligible
retirees who retired on a duty disability retirement, 20 years of
service is credited for this part of the monthly supplemental
benefit calculation at the time that the disability benefit begins.
Non-duty disability retirees shall be credited with actual years
of credited service.
b. For purposes of this section only, "retirement years" means the
number of years and partial years that a retiree has received
a pension benefit to include the number of years and partial
years as a DROP participant. For eligible retirees who retired
on a duty disability retirement, no retirement years will be
accumulated for this part of the monthly supplemental benefit
calculation until after the member would have attained 20
years of credited service, had he not retired on a duty disability
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retirement. Non-duty disability retirees shall be credited with
actual years in receipt of a pension benefit.
c. For purposes of this section only, "eligible retirees" means
current retirees who were retired as of September 30 of each
year, including DROP participants, or beneficiaries receiving
benefits.
Section 18-170. Optional Forms of Benefits.
A. Each member entitled to a normal, early or disability retirement benefit shall
have the right at any time prior to the date on which the benefit begins to
elect to have the benefit payable under any of the options hereinafter set
forth in lieu of the amount and form of benefits provided above, and to
revoke an such elections and make a new election at any time prior to the
actual commencement of payment.
B. The value of optional benefits shall be the actuarial equivalent of the value
of benefits otherwise payable. The member shall make an election by
written request to the Board, such request being retained in the Board's files.
The options available to the members of the Fund are as follows:
1. Life Annuity. The member may elect to receive a benefit payable for
the member's life only.
2. Contingent Annuitant (Joint and Survivor Option). The member may
elect to receive a benefit during the joint lifetime of the member and
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a joint pensioner designated by the police officer, and following the
death of either of them, 100%, 75%, 662/3% or 50% of such monthly
benefit payable to the survivor for the lifetime of the survivor.
3. Survivor Annuity. The member may elect to receive a benefit during
the member's lifetime and then following the death of the member, a
reduced amount to a beneficiary. At the time of retirement, the
member may choose a survivor benefit of 100%, 75%, 66 2/3% or
50% of the member's monthly benefit. This amount will be payable
to the beneficiary for the lifetime of the beneficiary.
C. The member upon electing any option of this section will designate the joint
pensioner or beneficiary (or beneficiaries) to receive the benefit, if any,
payable under the plan in the event of the member's death, and will have the
power to change such designation from time to time but any such change
shall be deemed a new election and will be subject to approval by the
Pension Board. Such designation will name a joint pensioner or one (1) or
more primary beneficiaries where applicable. If a member has elected an
option with a joint pensioner or beneficiary and his or her retirement income
benefits have commenced, he or she may thereafter change the designated
joint pensioner or beneficiary UP to twice in accordance with Florida
Statutes 6185.341 without the approval of the board of trustees or the
current ioint annuitant or beneficiary. The retiree is not reauired to
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provide proof of the aood health of the joint annuitant or beneficiary
beina removed. and the joint annuitant or beneficiary beina removed
need not be Iivina. Any retired member who desires to chanae his or
her joint annuitant or beneficiary shall file with the board of trustees a
notarized notice of such chanae. Upon receipt of a completed chanae
of joint annuitant form or such other notice. the board of trustees shall
adjust the member's monthly benefit by the application of actuarial
tables and calculations developed to ensure that the benefit paid is the
actuarial eauivalent of the present value of the member's current
benefit and there is no impact to the Plan. The member shall also be
responsible for the cost of the recalculation of the benefit by the
actuary but only if the Ooard of Trustees consents to such change and if the
joint pensioner last previously designated by the police officer is alive when
he or she files vv'ith the Ooard of Trustees a request for such change. The
consent of a member's joint pensioner or beneficiary to any such change
shall not be required. The Ooard of Trustees may request such evidence of
the good health of the joint pensioner that is being removed as it may require
and the amount of the retirement income payable to the police officer upon
the designation of a ne'~v joint pensioner shall be actuarially redetermined
taking into account the ages and sex of the former joint pensioner, the nevv
joint pensioner, and the member. each such designation will be made in
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'vVriting on a form prepared by the 130ard of Trustees, and on completion will
be filed with tho Board of Trustees. Any subseQuent reQuests for chanQes
in beneficiary will reQuire Board of Trustees approval and the ioint
pensioner beinQ removed must be alive when the reQuest for chanae
is made. The Board of Trustees may reQuest such evidence ofthe Qood
health of the ioint pensioner that is beina removed as it may reQuire.
In the event that no designated beneficiary survives the member, such
benefits as are payable in the event of the death of the member subsequent
to his or her retirement shall be paid as provided in s. 18-171.
D. 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 or her normal retirement date or early
retirement date, no benefit will be payable under the option to any
person, but the benefits, if any, will be determined under s. 18 -169
(D).
2. If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the member's retirement under the plan, 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 or her retirement
as if the election had not been made, unless a new election is made
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in accordance with the provisions of this section or a new beneficiary
is designated by the member prior to his or her retirement.
3. If both the member and the designated beneficiary (or beneficiaries)
die before the full payment has been effected under any option
providing for payments for a period certain and life thereafter, the
Board of Trustees may, in its discretion, direct that the commuted
value of the remaining payments be paid in a lump sum.
4. If a member continues beyond his or her normal retirement date and
dies prior to 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 police officer had retired
under the option on the date on which death occurred.
5. A member may not make any change in retirement option after the
date of cashing or depositing the first retirement check.
Sec. 18-171. Beneficiaries.
A. Each member may, on a form provided for that purpose which was signed
and filed with the Board of Trustees, designate a beneficiary (or
beneficiaries) to receive the benefit, if any, which may be payable in the
event of death; and each designation may be revoked by such member by
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signing and filing with the Board of Trustees a new designation of beneficiary
form.
B. If a deceased member officer failed to name a beneficiary in the manner
prescribed above in subsection A, or if the beneficiary (or beneficiaries)
named by the deceased member predeceases the member, the death
benefit, if any, which may be payable under the plan with respect to such
deceased police officer may be paid at the discretion of the Board of
Trustees to the estate of the deceased member, provided that the Board of
Trustees may direct that the commuted value of the remaining monthly
income payments be paid in a lump sum. Any payment made to any person
pursuant to this section shall operate as a complete discharge of all
obligations under the plan with regard to such deceased member and shall
not be subject to review by anyone, but shall be final, binding and conclusive
on all persons ever interested hereunder.
Section 18-172. Buy Back of Service
A. Re-employment. When any former police officer of the city is re-
employed, he will become a member of the plan upon re-employment as a
full time permanent police officer. When a former police officer of the City
is re-employed and had withdrawn contributions previously made to the plan,
he may reinstate his previous service provided:
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The plan is paid the total amount previously withdrawn (consisting of
accumulated member contributions plus any interest previously paid by the
plan on those contributions) within six months of re-employment. This total
amount is brought forward with interest for the total number of months from
the date of withdrawal to the date of repayment, calculated to the nearest
month. This calculated amount equals the amount to be repaid to the Plan
in a lump sum. The interest to bring forward the total amount will be at the
equivalent compound monthly rate derived from the earning rate assumed
by the actuary in the most recent actuarial valuation submitted to the Division
of Retirement pursuant to Chapter 112, Part VII, Florida Statutes.
B. Prior police officer service.
Unless otherwise prohibited by law, the years or fractional parts of years that
a police officer previously served as a police officer for any other municipal,
county, Of state. or federal police department or service in the military shall
be added to the years of credited service provided that:
1. The police officer contributes to the Fund the sum that would have
been contributed, based on the police officer's salary and the
employee contribution rate in effect at the time that the credited
service is requested, had the police officer been a member of this
system for the years or fractional parts of years for which the credit is
requested plus amount actuarially determined such that the crediting
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of service does not result in any 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.
2. Payment by the police officer of the requirement amount may be
made within six (6) months of the request for credit and in one (1)
lump sum payment, or the police officer can buy back this time over
a period equal to the length of time being purchased or five (5) years,
whichever is greater, at an interest rate which is equal to the Fund's
actuarial assumption. A police officer may request to purchase a
maximum of five (5) years of service. No credit shall be given for any
service until all years of service which are to be repurchased, have
been repurchased.
3. The credit purchased under this section shall count for benefit
computation purposes, but not for vesting.
4. In no event, however, may credited service be purchased pursuant to
this section for prior service with any other municipal, county or state
police department, if such prior service forms or will form the basis of
a retirement benefit or pension from another retirement system or
plan. This sub-paragraph does not apply to military service.
Section 18-173. Rollovers
A. Direct transfers of eligible rollover distributions.
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1. General. This subsection applies to distributions made on or after
January 1, 1993. Notwithstanding any provision of the plan to the
contrary that would otherwise limit a distributee's election under this
subsection, a distributee may elect, at the time and in the manner
prescribed by the Board of Trustees, 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 does not
include any distribution that is one (1) of a series of
substantially equal periodic payments (not less frequently than
annually) made forthe 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 (10) years or more; any distribution to the extent
such distribution is required under section 401 (a )(9) of the
Internal Revenue Code; and the portion of any distribution that
is not includable in gross income.
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b. Eligible retirement plan: An eligible retirement plan is an
individual retirement account described in section 408(a) of the
Internal Revenue Code, an individual retirement annuity
described in section 408(b) of the Internal Revenue Code, an
annuity plan described in section 403(a) of the Internal
Revenue Code, or a qualified trust described in section 401 (a)
of the Internal Revenue Code, that accepts the distributee's
eligible rollover distribution. However, in the case of an eligible
rollover distribution to the surviving spouse, an eligible
retirement plan is an individual retirement account or individual
retirement annuity.
c. Distributee: A distributee includes an employee or former
employee. In addition, the employee's or former employee's
surviving spouse and the employee's or former employee's
spouse or former spouse who is entitled to payment for
alimony and child support under an income deduction order,
are distributees with regard to the interest of the spouse or
former spouse.
d. Direct rollover. A direct rollover is a payment by the plan to the
eligible retirement plan specified by the distributee.
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B. Rollovers from qualified plans. A member may roll over all or a part of his or
her interest in another qualified plan to the Fund, provided all of the following
requirements are met:
1. Some or all of the amount distributed from the other plan is rolled over
to this plan no later than the 60th day after distribution was made from
the Plan or, if distributions are made in installments, no later than the
60th day after the last distribution was made.
2. The amount rolled over to this Fund does not include any amount
contributed by the member to the Plan on a post-tax basis. Effective
October 1, 2002, a member may rollover amounts contributed on a
post-tax basis.
3. The rollover is made in cash.
4. The member certifies that the distribution is eligible for a rollover.
5. Any amount which the trustees accept as a rollover to this Fund shall,
along with any earnings allocated to them, be fully vested at all times.
A rollover may also be made to this Plan from an individual retirement
account qualified under section 408 of the Internal Revenue Code when the
individual retirement account was merely used as a conduit for funds from
another qualified plan and the rollover is made in accordance with the rules
provided in paragraphs 1 - 5. Amounts rolled over may be segregated from
other Fund assets. The trustees shall separately account for gains, losses,
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and administrative expenses of these rollovers. In addition, the Fund may
accept the direct transfer of a member's benefits from another qualified
retirement plan or to a deferred compensation plan pursuant to section 457
of the Internal Revenue Code. The Fund shall account for direct transfers
in the same manner as a rollover and shall obtain certification from the
member that the amounts are eligible for a rollover or direct transfer to this
Fund.
C. Transfer of Accumulated Leave
1. Members eligible to receive accumulated sick leave, accumulated
vacation leave or any other accumulated leave payable upon
retirement, including entry into the DROP, shall have the leave
transferred to the Plan. For purposes of this section, the term
"separation" shall mean termination of service as a police officer with
the City. Members on whose behalf leave has been transferred may
elect one of the following distribution options within thirty (30) days of
separation. Members failing to elect a distribution option within thirty
(30) days of separation will be deemed to have elected option (a)
below:
(a) Receive a lump sum equal to the transferred leave balance; or
(b) Transfer the entire amount of the transferred leave balance
directly to any eligible retirement plan; or
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(C) Purchase additional service credit as may be permitted by the
Code. If the leave balance exceeds the cost of the service
credit purchased, the balance shall be paid to the member in
a lump sum; or
(d) Transfer the entire amount of the transferred leave balance
into the member's DROP account; or
(e) Maintain the entire leave balance within the Plan. Earnings
shall be paid as follows:
(1 ) Gains or losses at the same interest rate earned by the
Pension Plan; or
(2) A guaranteed rate of seven percent (7%) or
(3) A percentage of the leave balance account will be
credited with interest gains or losses at the same rate
earned by the pension plan and the remaining
percentage will be credited with earnings at a
guaranteed rate of seven percent (7%). The actual
percentage shall be selected by the member on a form
provided by the Board of Trustees. The total of the two
percentages must equal 100%.
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These accounts will be assessed an administrative fee that is based
upon the ratio that the Employee's DROP account bears to the Fund
as a whole.
2. If a member on whose behalf the City makes a transferred leave
balance to the Plan dies after retirement or other separation, but
before making an election, as provided, or after making an election
but before any distribution is made, the election option shall be void.
In such an event, any person who would have received a death
benefit had the member died in service immediately prior to the date
of retirement or other separation, shall be entitled to receive an
amount equal to the transferred leave balance in a lump sum. In the
case of a surviving spouse or former spouse, an election may be
made to transfer the leave balance to an eligible retirement plan in
lieu of the lump sum payment. Failure to make such an election by
the surviving spouse or former spouse within sixty (60) days of the
member's death will be deemed an election to receive a lump sum
payment.
3. The Board, by rule, shall have the authority to enact administrative
rules for purposes of administering the provisions of this Section,
consistent with the Federal tax laws in effect on the date of transfer.
No such rule shall conflict with the provisions of this section.
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4. The value of the leave transferred shall be determined in accordance
with applicable city personnel policies or collective bargaining
agreements.
Section 18-174. Miscellaneous.
A. Pension Validity. The Board of Trustees shall have the power to examine
the facts upon which any pension shall have been granted or obtained
erroneously, fraudulently, or illegally for any reason. The Board is
empowered to purge the pension rolls of any person granted a pension
under proper or existing law or granted under this ordinance if the pension
is found to be erroneous, fraudulent or illegal for any reason; and to
reclassify any pensioner who has under any prior or existing law or who shall
hereafter under this ordinance be erroneously, improperly, or illegally
classified.
B. False or misleading statements made to obtain retirement benefits
prohibited.
1. 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 under this plan.
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2. a. A person who violates subparagraph 1. commits a
misdemeanor of the first degree, punishable as provided in
99775.082 or 775.083, Florida Statutes.
b. In addition to any applicable criminal penalty, upon conviction
for a violation described in subparagraph 1., a participant or
beneficiary of this plan may, in the discretion of the b .!;!oard of
~ Irustees, be required to forfeit the right to receive any or all
benefits to which the person would otherwise be entitled under
this plan. For purposes of this sub-subparagraph, "conviction"
means a determination of guilt that is the result of a plea or
trial, regardless of whether adjudication is withheld.
C. Incompetence. If any member or beneficiary is a minor or is, in the judgment
of the Board, otherwise incapable of personally receiving and giving a valid
receipt for any payment due them from the Fund, the Board may, unless and
until claims have been made by a duly appointed guardian or committee of
such person, make such payment or any part thereof to such person's
spouse, children, parent or other person deemed by the Board to have
incurred expenses or assumed responsibility for the expenses of such
person. Any payments so made shall be a complete discharge of any liability
under the system for such payment.
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D. Rights and Benefits Not Subject to Legal Process. The rights and benefits
provided for herein are vested rights of participants in the Fund and shall not
be subject to attachment, garnishment, execution or any other legal process.
This section does not Bpply in the event of Bn
However:
1. The Board shall honor an income deduction order for alimony or
child support in accordance with rules and procedures adopted by
the Board: and
2. Upon written reQuest bY the retiree. the Board of Trustees may
authorize the Plan administrator to withhold from the monthly
retirement payment funds necessary to:
a. pay for benefits beina received throuQh the City:
b. pay the certified barQaininQ aaent: or
c. pay for premiums for accident health and lona-term care
insurance for the retiree's spouse and dependents. A
retirement plan does not incur liability for participation in
this permissive proaram if its actions are taken in Qood
faith pursuant to Florida Statutes ~185.05(6).
E. Lump Sum Payment of Small Retirement Income. Notwithstanding any
provision of the Fund to the contrary, if the monthly retirement income
payable to any person entitled to benefits hereunder is less than $30.00 or
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if the single sum value of the accrued retirement income is less than
$5,000.00 as of the date of retirement or termination of service, whichever
is applicable, the Board of Trustees, in the exercise of its discretion, may
specify that the actuarial equivalent of such retirement income be paid in
lump sum.
F. Required Distributions
1. In accordance with section 401 (a)(9) of the Internal Revenue Code,
all benefits under this plan will be distributed, beginning not later than
the required beginning date set forth below, over a period not
extending beyond the life expectancy of the member or the life
expectancy of the member and a beneficiary.
2. Any and all benefit payments shall begin by the later of:
a. April 1 of the calendar year following the calendar year of the
member's retirement date; or
b. April 1 of the calendar year following the calendar year in
which the member attains age 70Yz.
3. If an employee dies before his entire vested interest has been
distributed to him, the remaining portion of such interest will be
distributed at least as rapidly as provided for under this Plan.
G. Internal Revenue Code limits.
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1. Basic Limitations. Subject to the adjustments in paragraph 3, the
maximum amount of the actual annual retirement income paid in any
year with respect to a Participant under this Plan shall not exceed the
dollar amount allowable for any calendar year pursuant to 9415(b) of
the Code, as adjusted in such calendar year for increases in the cost
of living in accordance with Regulations issues by the Secretary of the
Treasury under 9415(d) of the Code. For purposes of applying the
basic limitation, benefits payable in any form other than a straight life
annuity with no ancillary benefits shall be adjusted, as provided by
Treasury Regulations, so that such benefits are the Actuarial
Equivalent of a straight life annuity. For purposes of this subsection
Article, the following benefits shall not be taken into account:
a. Any ancillary benefit which is not directly related to retirement
income benefits;
b. Any other benefit not required under 9415(b )(2) of the Code
and Treasury Regulations thereunder to be taken into account
for purposes of the limitation of 9415(b)(1) of the Code.
2. Participation in Other Defined Benefit Plans. The limitation of this
subsection with respect to any Participant who at any time has been
a Participant in any other defined benefit plan (as defined in 94140)
of the Code) maintained by the City shall apply as if the total benefits
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payable under all defined benefit plans in which the Participant has
been a Participant where payable from one Plan.
3. Adjustments in Limitations.
a. In the event the Participant's retirement benefits become
payable before age sixty-two (62), the maximum amount of
annual retirement income limitation prescribed by this Article
shall be reduced in accordance with Regulations issued by the
Secretary of the Treasury pursuant to the provisions of 9415(b)
of the Code, so that such limitation (as reduced) equals an
annual benefit (beginning when such retirement income
begins) which is equivalent to the Code 9415(b) maximum
amount of annual retirement income beginning at age 62.
b. In the event the Participant's benefit is based on at least fifteen
(15) years of Credited Service, the adjustments provided for in
subparagraph (a) above shall not apply.
c. The reductions provided for in subparagraph (a) above shall
not be applicable to disability benefits pre-retirement death
benefits.
d. In the event the Participant's retirement benefit becomes
payable after age sixty-five (65), for purposes of determining
whether this benefit meets the basic limitation set forth in
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paragraph 1 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 using an assumed interest
rate of five percent (5%) and shall be made in accordance with
regulations promulgated by the Secretary of the Treasury or
his delegate.
e. Less than Ten (10) Years of Service. The maximum
retirement benefits payable under this Article to any Participant
who has completed less than ten (10) years of Credited
Service with the City shall be the amount determined under
paragraph 1 multiplied by a fraction, the numerator of which is
the number of the Participant's years of Credited Service and
the denominator of which is ten (10). The reduction provided
for in this subparagraph shall not be applicable to disability
benefits or pre-retirement death benefits.
f. Ten Thousand Dollar $10,000 Limit. Notwithstanding the
foregoing, the retirement benefit payable with respect to a
Participant shall be deemed not to exceed the limitations in this
subsection if the benefits payable, with respect to such
Participant under this Plan and under all other qualified defined
benefit pension plans to which the City contributes, do not
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exceed ten thousand dollars ($10,000) for the applicable Plan
year and for any prior Plan Year and the City has not at any
time maintained a qualified defined contributions plan in which
the Participant participated.
g. Reduction of benefits. Reduction of benefits and/or
contributions to all plans, where required, shall be
accomplished by first reducing the Participant's benefit under
any defined benefit plans in which Participant participated,
such reduction to be made first with respect to the plan in
which Participant 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 Participant participated, such reduction to be
made first with respect to the plan in which Participant 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 different manner and priority
pursuant to the agreement of the Board and the plan
administrator of all other plans covering such Participant.
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h. Cost-of-Living Adjustments. The limitations as stated herein
shall be adjusted annually in accordance with any cost-of-living
adjustments prescribed by the Secretary of the Treasury
pursuant to 9415( d) of the Code.
4. Additional Limitation on Pension Benefits. Notwithstanding anything
herein to the contrary:
a. the normal retirement benefit or pension payable to a Retiree
who becomes a Participant of the Plan on or after January 1,
1980, and who has not previously participated in such Plan,
shall not exceed 100 percent of his Average Final
Compensation. However, nothing contained in this Article shall
apply to supplemental retirement benefits or to pension
increases attributable to cost-of-living increases or
adjustments.
b. No Participant of the Plan 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 Participant is
already receiving, or will receive in the future, a retirement
benefit or pension from a different employer's retirement plan.
This restriction does not apply to social security benefits,
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military benefits or federal benefits under Chapter 67, Title 10,
U.S. Code.
Section 18-175. Deferred retirement option plan.
A. A deferred retirement option plan ("DROP") is hereby created.
B. Eligibility to participate in the DROP is based upon eligibility for normal
service retirement in the Plan. Members shall elect to participate by applying
to the Board of Trustees on a form provided for that purpose.
C. Full participation in the DROP must be exercised within the first twenty-five
(25) years of combined credited service.
D. A member shall not participate in the DROP beyond the time of attaining
thirty (30) years of service and the total years of participation in the DROP
shall not exceed five (5) years. For example:
1. Members with twenty (20) years of credited service at time of entry
shall only participate for five (5) years.
2. Members with twenty-five (25) years of credited service at time of
entry shall only participate for five (5) years.
3. Members with twenty-six (26) years of credited service at time of entry
shall only participate for four (4) years.
E. Upon a member's election to participate in the DROP, he or she shall cease
to be a member and is precluded from accruing any additional benefit under
the Pension Fund. For all Fund purposes, the member becomes a retirant.
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The amount of credited service and final average salary freeze as of the date
of entry into the DROP. Accumulated, unused sick and vacation leave shall
be included in the compensation calculation; provided however, that a
minimum balance of 120 hours of sick leave and 120 hours of vacation leave
shall be maintained by the employee and excluded from this calculation.
The retained leave balance, including any additions, shall be distributed at
the conclusion of DROP participation and separation from service.
F. Payment shall be made into the employee's DROP account as if the
employee had retired from the employ of the City. The amounts paid will be
determined in accordance with this Plan and the employee's selection of the
payment option. Payments into the DROP will be made monthly over the
period the employee participates in the DROP, up to a maximum of sixty (60)
months.
G. Effective January 1, 2003, DROP participants have the option to select
optional methods to credit investment earnings to their account less any
outstanding loan balances. The method may be changed each year
effective January 1, however, the method must be elected prior to January
1 on a form provided by the Board of Trustees. The methods are:
1. Gains or losses at the same interest rate earned by the Pension Plan;
or
2. A guaranteed rate of seven percent (7%) ; or
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3. A percentage of the DROP account will be credited with interest gains
or losses at the same rate earned by the pension plan and the
remaining percentage will be credited with earnings at a guaranteed
rate of seven percent (7%). The actual percentage shall be selected
by the member on a form provided by the Board of Trustees. The
total of the two (2) percentages must equal 100%.
Employee's DROP accounts will be assessed an administrative fee that is
based upon the ratio that the Employee's DROP account bears to the Fund
as a whole.
H. An employee's participation in the DROP shall terminate at the end of five (5)
years or thirty (30) years of service, whichever comes first. Failure to end
DROP participation may result in penalties at the discretion of the Trustees,
up to and including forfeiture of the DROP account. Upon entering into the
DROP, an employee shall file with the Board a binding letter of resignation
from City employment. The binding letter of resignation shall establish a
deferred termination date in accordance with the limitations of this DROP,
which may be amended.
I. All interest shall be credited to the employee's DROP account less any
outstanding loan balances on a quarterly basis with quarterly statements
provided. In the event that a member dies while in the DROP, interest shall
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be pro-rated to the last business day of the month preceding the death of the
member.
J. Upon termination of employment, participants in the DROP will receive the
balance of the DROP account in accordance with the following rules:
1. Members may elect to begin to receive payment upon termination of
employment or defer payment of DROP until the latest day as
provided under sub-subparagraph (3)
2. Payments may be made in the following ways:
a. Lump sum - the entire account balance will be paid to the
retirant upon approval of the Board of Trustees.
b. Installments - the account balance will be paid out to the
retirant in five (5) equal annual payments paid over five (5)
years, the first payment to be made upon approval of the
Board of Trustees.
c. Monthly installments - the account balance will be paid out to
the retirant on a monthly basis until the account balance is paid
out based on actuarial tables provided by the actuary.
3. Any form of payment selected by a police officer must comply with the
minimum distribution requirements of section 401 (A)(9) of the Internal
Revenue Code, and is subject to the requirements of subsection 18-
174(F) e.g., payments must commence by age 70Yz.
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4. The beneficiary of the DROP participant who dies before payments
from DROP begin shall have the same right to select payment options
as the participant in accordance with this subsection. A DROP
participant may designate a beneficiary to receive the DROP balance
in the event of the participant's death prior to payout of the full DROP
balance.
K. No payments will be made from DROP until the employee actually separates
from service with the City.
L. If an employee shall die during participation in the DROP, a survivor benefit
shall be payable in accordance with the form of benefit chosen at the time
of entry into the DROP.
M. Upon commencement of participation in the DROP, the member shall no
longer be eligible for disability retirement from the pension plan.
N. Loans from the DROP.
1. Availability of Loans
a. Loans are available to members only after termination of
employment, provided the member had participated in the
DROP for a period of 12 months.
b. Loans may only be made from a member's own account.
c. There may be no more than one loan at a time.
2. Amount of Loan
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a. Loans may be made up to a maximum of 50 percent of
account balance.
b. The maximum dollar amount of a loan is $50,000.00, reduced
by the highest outstanding loan balance during the last 12
months.
c. The minimum loan is $5,000.00.
3. Limitations on loans shall be made from the amounts paid into the
DROP and the earnings thereon.
4. Term of Loan.
a. The loan must be for at least 1 year.
b. The loan shall be no longer than 5 years.
5. Loan Interest Rate
a. The Interest Rate shall be fixed at time the loan is originated
for the entire term of loan.
b. The Interest Rate shall be equal to the prime rate published by
an established local bank on the last day of each calendar
quarter preceding the date of loan application.
6. Defaults on Loans.
a. Loans shall be in default if two consecutive months'
repayments are missed or if a total offour months' repayments
are missed.
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b. Upon default, the entire balance becomes due and payable
immediately.
c. If a loan in default is not repaid in full immediately, the loan
may be canceled and the outstanding balance treated as a
distribution, which may be taxable.
d. Upon default of a loan, a member will not be eligible for
additional loans.
7. Miscellaneous provisions.
a. All loans must be evidenced by a written loan agreement
signed by the member and the Board of Trustees. The
agreement shall contain a promissory note.
b. A member's spouse must consent in writing to the loan. The
consent shall acknowledge the effect of the loan on the
member's account balance.
c. Loans shall be considered a general asset of the Fund.
d. Loans shall be subject to administrative fees to be set by the
Board of Trustees.
e. Outstanding loan balances shall not be credited with earnings
or losses. As the outstanding balance is repaid with interest,
earnings and losses shall be applied to the payments and
interest as provided for in Section 18-175 I.
Section 18-176. Termination of plan and distribution of Fund.
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Upon termination of the Plan by the municipality for any reason, or because of a
transfer, merger, or consolidation of governmental units, services, or functions as provided
in Chapter 112, Florida Statutes or upon written notice to the Board of Trustees by the
municipality that contributions under the Plan are being permanently discontinued, the
rights of all employees to benefits accrued to the date of such termination or
discontinuance and the amounts credited to the employees' accounts are nonforfeitable.
The Fund shall be apportioned and distributed in accordance with the following procedures:
A. The Board of Trustees shall determine the date of distribution and the asset
value reQuired to fund all the nonforfeitable benefits to be distributed,
after taking into account the expenses of such distribution. The board shall
inform the municipality if additional assets are reQuired. in which event
the municipality shall continue to financially support the plan until all
nonforfeitable benefits have been funded.
B. The Board of Trustees shall determine the method of distribution of the asset
value, that is, 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 member entitled to benefits under the plan,
as specified in subsection (C).
C. The Board of Trustees shall distribute apportion 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 shaft
mean the actuarially computed single-sum value of such retirement income,
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except that if the method of distribution determined under subsection (B)
involves the purchase of an insured annuity, the amount required to provide
the given retirement income is snail mean the single premium payable for
such annuity. The actuarial sinale-sum value may not be less than the
employee's accumulated contributions to the plan. with interest. if
provided by the plan. less the value of any plan benefits previously paid
to the employee.
1. Apportionment snail first be made in respect of each retired member
receh/ing a retirement income nereunder on such date, each person
receiving a retirement income on sucn date on account of a retired
(but since deceased) member, and eacn police officer wno nas, by
such date, become eligible for normal retirement but nas not yet
retired, in the amount required to prov'ide sucn retirement income,
provided that, if such asset value is less than tne aggregate of such
amounts, sucn amounts shall be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such asset 'v'alue.
2. If there is any asset 'V'alue remaining after the apportionment under
paragrapn (1 ), apportionment snail next be made in respect of each
member in the service of the municipality on such date vvho nas
completed at least ten (10) years of credited service, in tne rund for
at least ten (10) years, and '~'v'ho is not entitled to an apportionment
under paragraph (a), in the amount required to provide the actuarial
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equivalent of the accrued normal retirement income, based on the
police officer's credited service and earnings to such date, and each
former par1:icipant then entitled to a benefit 'Nho has not by such date
reached his or her normal retirement date, in the amount required to
provide the actuarial equivalent of the accrued normal retirement
income to 'v~hich he or she is entitled, provided that, if such remaining
asset value is less than the aggregate of the amounts appor1:ioned
hereunder, such latter amounts shall be propor1:ionately reduced so
that the aggregate of such reduced amounts vvill be equal to such
ren,aining asset value.
3. If there is an asset value after the appor1:ionments under paragraphs
(a) and (b), appor1:ionment shall lastly be made in respect of each
member in the service of the municipality on such date 'who is not
entitled to an appor1:ionment under paragraphs (a) and (b) in the
amount equal to the member's total contributions to the rlan to date
of termination, provided that, if such remaining asset value is less
than the aggregate of the amounts appor1:ioned hereunder, such latter
amounts shall be propor1:ionately reduced so that the aggregate of
such reduced amounts Vv'ill be equal to such remaining asset 'v'alue.
4. D. If 11"1 the event that there is asset value remaining after the full
distribution apportionment specified in paragraphs (a), (b), and (c),
and after payment of any expenses incurred with such
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distribution such excess shall be returned to the municipality, less
return to the state of the state's contributions, provided that, if the
excess is less than the total contributions made by the municipality
and the state to date of termination of the Plan, such excess shall be
divided proportionately to the total contributions made by the
municipality and the state.
5.&9:- The Board of Trustees shall distribute, in accordance with the manner of
distribution determined under subsection (B), the amounts distributed
apportioned under subsection (C). If, after a period of tvventy-four (24}
months after the date on 'y'vhich the Plan terminated or the date on which the
board received written notice that the contributions thereunder were being
permanently discontinued, the municipality or the Board of Trustees of the
municipal police officers' retirement trust fund affected has not complied with
all the provisions in this section, the Department of Manaaement Services
di'y.ision shall effect the termination of the fund in accordance with this
section.
Section 18-177. Cost of Living Adjustment
A. Subject to the conditions set forth in this section, the Board of Trustees shall
annually authorize a cost of living adjustment, the amount of which shall be
determined as of each September 30th. The amount of the cost of living
adjustment shall be equal to the actuarial present value of future pension
payments to current pensioners multiplied by the positive difference, if any,
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between the rate of investment return and eight percent (8%). The actuary
shall determine whether there may be a cost of living adjustment based on
the following factors:
1. The actuary for the Pension Fund shall determine the rate of
investment return on the Pension Fund assets during the twelve (12)
month period ending each September 30th. The rate determined
shall be the rate reported in the most recent actuarial report submitted
pursuant to Part VII of Chapter 112, Florida Statutes.
2. The actuary for the Pension Fund shall, as of September 30,
determine the actuarial present value of future pension payments to
current pensioners. The actuarial present values shall be calculated
using an interest rate of eight percent (8%) a year compounded
annually, and a mortality table approved by the Board of Trustees and
as used in the most recent actuarial report submitted pursuant to Part
VII of Chapter 112, Florida Statutes. This will be the pool of funds
available to fund the cost of living adjustment.
3. If the actuary determines there may be a cost of living adjustment, the
Board of Trustees shall authorize such a distribution unless the
administrative expenses of distribution exceed the amount available
for the distribution.
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October 1, 2009
4. The cost of living adjustment shall be funded only if the present value
of the pool of funds does not exceed the net actuarial experience
accumulated from all sources of gains and losses.
B. Cost of living adjustments will be made to pensioners, including DROP
members, and beneficiaries, who are referred to as eligible persons.
C. The cost of living adjustment shall be allocated among eligible persons
based upon the participant's years of service in the proportion that the
participant's years of service bear to the aggregate amount of years of
service of all eligible persons. Allocations for beneficiaries will be in
proportion that the beneficiary benefit bears to the retiree benefit. Maximum
service credits shall be twenty (20) years. Minimum allocations for duty
disability pensioners shall be based on 13.33 years of service.
D. The cost of living adjustment shall be made as of July 1,2001 and each July
1 st thereafter. Each eligible person shall be paid his or her allocated portion
from the preceding September 30th. Eligible persons must be retired for one
(1) year from September 30 to receive a cost of living adjustment. A
pensioner's estate is entitled to a pro-rata share of the deceased retirant's
cost of living adjustment based on a number of months that the deceased
retirant received a pension during the year ending the September 30th prior
to the retirant's death.
Section 3. It is the intention of the City Commission of the City of Boynton Beach
that the provisions of this Ordinance shall become and be made a part of the Code of
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October 1, 2009
Ordinances of the City of Boynton Beach, Florida. The Sections of this ordinance may be
renumbered, re-Iettered and the word "Ordinance" may be changed to "Section," "Article"
or such other word or phrase in order to accomplish such intention.
Section 4. All Ordinances or parts of Ordinances, Resolutions or parts of
Resolutions in conflict herewith be and the same are hereby repealed to the extent of such
conflict.
Section 5. If any clause, section, or other part or application of this Ordinance
shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such
unconstitutional or invalid part or application shall be considered as eliminated and so not
effecting the validity of the remaining portions or applications remaining in full force and
effect.
Section 6. Unless otherwise provided by the terms of the Ordinance, this Ordinance
shall become effective when the following have occurred:
(a) the City Commission has received and has accepted a report establishing the
actuarial soundness of these amendments;
(b) when a collective bargaining agreement ratifying the foregoing changes to
pension benefits has been ratified by the City Commission and the Police
Pension Board of Trustees or their successor organization; and
(c) a copy of this Ordinance is transmitted to the State of Florida Division of
Retirement.
Upon satisfaction of all of the above requirements, then in that event, the terms and
provisions of this Ordinance shall become effective.
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FIRST READING THIS ~ DAY OF January ,2010
SECOND, FINAL READING and PASSAGE THIS ~ DAY OF fe.brua.ry , aOl'O
PASSEDANDADOPTEDTHIS~DAYOF ~ ' ~'o.
CITY OF BOYNTON BACH, FLORIDA
ATTEST:
~7'n. p~
CIT CLERK \Amend\2008-09\HEART+SB38 COMB.wpd
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