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2021-O-36 - Firefighters Pension Plan AmendmentORDINANCE 2021-0-36 AN ORDINANCE OF THE CITY COUNCIL OF EDGEWATER, FLORIDA, AMENDING ORDINANCE NO. 2014-0-20 RELATING TO THE CITY OF EDGEWATER, FLORIDA FIREFIGHTERS' PENSION PLAN; PROVIDING FOR CLARIFICATION OF THE ANNUAL DISTRIBUTION OF STATE PROVIDED EXCESS RESERVE FUNDS THROUGH A SUM OF YEARS (SENIORITY) SHARE PLAN; PROVIDING FOR CONFLICTING PROVISIONS, SEVERABILITY AND APPLICABILITY; PROVIDING FOR AN EFFECTIVE DATE AND ADOPTION. WHEREAS, On September 22, 2014, City Council adopted Ordinance No. 2014-0-20 which amended and restated the City of Edgewater, Florida Firefighters' Pension Plan, and WHEREAS, the City Council of the City of Edgewater wishes hereby to provide additional rules relating to the Supplemental Retirement Benefit, and WHEREAS, the Trustees of the City of Edgewater, Florida Firefighters' Pension Plan approved the additional rules provided herein as being in the best interests of the participants and beneficiaries, and WHEREAS, the City Council has received and reviewed an actuarial impact statement related to this change and has determined there is no actuarial impact to the Plan. NOW, THEREFORE, BE IT ENACTED by the City Council of the City of Edgewater, Florida: PART A. Section 4.07, Supplemental Benefit, is hereby amended by deleting the following stricken language and by adding the following underlined language: Section 4.07 -- SupplementaI Benefit Supplemental Retirement Benefit: There is hereby provided for firefighters that attain Credited Service of five (5) or more years, in addition to all other benefits provided in this section, an annual supplemental retirement benefit. Entitlement to such supplemental retirement benefit shall be determined annually based upon the receipt by the Fund of any "additional premium tax revenues," as defined in sub -section 175.162(2)(a), of the Florida Statutes. Payment of such supplemental Stfuek t#reag# passages are deleted. Underlined passages are added. 2021-0-36 retirement benefit shall be made annually to each eligible firefighter, (defined for this subsection only as an active firefighter that has attained Credited Service of five (5) or more years no later than the I" of December after receipt of the "additional premium tax revenues" from the state, provided that it has been confirmed in writing that the eligible firefighter was alive on September 30 of such year, beginning with fiscal year 2007. The amount of such supplemental retirement benefit shall be equal to the quotient of: the total amount of all "additional premium tax revenues" received by the Fund during that calendar year (regardless of the year to which the revenues relate), multiplied by each eligible firefighter's percentage of the total number of combined years of service for all eligible firefighters. Such supplemental benefit for each eligible firefighter shall be credited er- debited to an account to be maintained by the Pension Fund, which shall be credited with the actual rate of investment return, (less expenses) of the Pension Fund and shall be distributed as a lump sum or rolled over to a designated qualified plan or a combination thereof, on retirement or termination or in the event of death prior to retirement paid to a designated beneficiary. If for any year the actual rate of investment return (less expenses) is less than zero, the return (less expenses) shall be deemed to be equal to zero. Firefighters shall vest in their respective supplemental benefit accounts, including earnings, on the same date they vest under the terms of the Retirement Plan. Vested supplemental benefit accounts are non -forfeitable to the extent permitted by law. Should a non -vested member die before vesting, the account of said non - vested Firefighter shall be forfeited. Should a non -vested member separate from employment or otherwise cease to be an eligible Firefighter, the supplemental benefit account of such non -vested Firefighter shall be forfeited. Forfeited supplemental benefit accounts shall be allocated pro rata to the supplement benefit accounts of all remaining eligible Firefighters in the year after termination of employment. Co -mingling of assets: For investment purposes all supplemental benefit accounts shall be co -mingled with other assets of the Retirement Plan. However, there shall be separate accountings for each individual supplemental benefit account. Distribution: Within ninety (90) days after retirement or termination of employment, each vested Firefighter shall be issued a distribution of the individual's supplemental benefit account balance equivalent to the prior year's ending account balance. There may be a second distribution of any subsequent allocations that are credited during the following year. a. Share account balances shall be calculated as a lump sum. b. Distribution of the supplemental benefit balances shall be by: Q) Direct lump sum distribution to the Firefighter subject to a 20% tax withholding, or Strdek threugh passages are deleted. Underlined passages are added. 2021-4-36 ii As a direct rollover to a qualified plan (IRA, etc.). or iii As a partial direct lump sum subject to a 20% tax withholding and a partial direct rollover. Section 415 Limits: All distributions are subject to the maximum benefit limitation of section 415 of the Internal Revenue Code. Such limitation shall be calculated in combination with other benefits that may be payable under the Retirement Plan. Limitation: Firefighters shall have no right or access to the individual supplemental benefit account balances until retirement or termination of employment. Inalienability: Share accounts shall not be subject to execution or attachment or to any legal process whatsoever, and shall be unassignable. Death: In the event a vested Firefighter dies prior to termination of employment, the Firefighter's supplemental benefit account shall be paid to his or her designated beneficiary, or in the absence of a living designated beneficiary, to his or her estate. PART B. EFFECTIVENESS OF REMAINDER OF CHAPTER 175 FLORIDA STATUTES. All other provisions of Chapter 175, Florida Statutes, shall remain in full force and effect. PART C. FILING WITH THE DIVISION OF RETIREMENT. Upon adoption, a copy of this Ordinance shall be filed with the Division of Retirement of the Florida Department of Management Services. All conflicting ordinances and resolutions, or parts thereof in conflict with this ordinance are hereby superseded by this ordinance to the extent of such conflict. PART E. SEVERABILITY AND APPLICABILITY. If any portion of this ordinance is for any reason held or declared to be unconstitutional, inoperative, or void, such holding shall not affect the remaining portions of this ordinance. If this ordinance or any provisions thereof shall be held to be inapplicable to any person, property, or Strdeie th eagle passages are deleted. Underlined passages are added. 2021-0-36 circumstances, such holding shall not affect its applicability to any other person, property, or circumstance. PART F. EFFECTIVE DATE. This Ordinance shall take effect upon adoption. PART G. ADOPTION. After Motion by Councilwoman Power, and Second by Councilwoman O'Keefe, the vote on the first reading of this ordinance held on August 2, 2021 was as follows: AYE NAY Mayor Mike Thomas X Councilwoman Christine Power X Councilwoman Gigi Bennington X Councilwoman Megan O'Keefe X Councilman Jonah Powers X Stmek flifeto passages are deleted. 4 Underlined passages are added. 2021-0-36 After Motion by (kl"a� . `t ► q and second by the vote on the second reading of this ordinance held on this 13"' day of September, 2021 was as tbllows AVE NAY Mayor Mike `I'hornas Councilwoman Christine Power Councilwoman + i i Bennington Councilwoman Megan O'Keefe Councilman Jonah Powers PASSED AND DULY ADOPTED this 13"' day of September, 20)21; CITE' COUNCIL OF THE CITY OF ED a WATE , FLORIDA RIDA a t* T�I"L F Bonnie Brown, CMC' City Clerk For the Use and reliance only by the City of Edgewater, Florida Approved as to form and legality by. Aaron R. Wolfe, Esquire City Attorney Doran, sines, Wolfe & Ycaaaaa Approved by the City Council of the City of Edµtewater at d meeting held on this 13'x' dray of September, ` 021 Gander Agenda Mena No 8 7'w. - traaal�tlaraa;la ptassages tare deleted: Underlined passages are added.