2005-O-46
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ORDINANCE NO. 2005-0-46
AN ORDINANCE OF THE CITY OF EDGEWATER
AMENDING ORDINANCE NO. 1999-0-04; PROVIDING FOR
THE PURCHASE OF CREDITABLE SERVICE FOR
VOLUNTEER FIREFIGHTER SERVICE WITH THE CITY
OF EDGEW A TER, MILITARY SERVICE IN THE ARMED
FORCES OF THE UNITED STATES AND SERVICE AS A
FIREFIGHTER WITH ANY OTHER EMPLOYER PRIOR TO
EMPLOYMENT WITH THE CITY OF EDGEW A TER;
PROVIDING FORA DEFERRED RETIREMENT PROGRAM
(DROP) OF A FIVE YEAR MAXIMUM; PROVIDING FOR
THIRD PARTY PAYMENTS FROM BENEFITS UPON
WRITTEN REQUEST OF A RETIRED PARTICIPANT;
PROVIDING FOR FILING WITH THE DIVISION OF
RETIREMENT OF THE FLORIDA DEPARTMENT OF
MANAGEMENT SERVICES; PROVIDING FOR
CONFLICTING PROVISIONS, SEVERABILITY AND
APPLICABILITY AND PROVIDING AN EFFECTIVE DATE.
Whereas, the City Council of the City of Edgewater, Florida, has made the following
determinations:
1. On September 27, 1999, City Council adopted Ordinance No. 1999-0-04, which
amended and restated the City of Edgewater, Florida Firefighters' Pension Fund.
2. The City Council of the City of Edge water is desirous of upgrading the current status
of the Firefighters' Pension Fund to provide similar benefits to the Florida Retirement System
(FRS ).
3. In an effort to comply with this objective it is necessary to modify our Firefighters'
Pension Fund accordingly.
NOW, THEREFORE, BE IT ENACTED BY THE CITY
COUNCIL OF THE CITY OF EDGEW A TER , FLORIDA:
PART A.
AMENDMENT OF THE CITY OF EDGEWATER, FLORIDA
FIREFIGHTERS' PENSION FUND.
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Section 1.
Incorporating the Provisions of Chapter 175. Florida Statutes. Except as
Provided Herein
The provisions of Chapter 175, Florida Statutes, shall be effective and constitute the City of
Edgewater, Florida Firefighters' Pension Fund except as specifically set forth herein. Accordingly,
Chapter 175, Florida Statutes (1997) are attached hereto and incorporated by reference as Exhibit
A. This Pension Fund may be amended at any time by the city council enacting an appropriate
ordinance, provided that such amendment complies with the Internal Revenue Code, Florida Statutes
and other applicable laws. The board of trustees may make recommendations by a majority vote
to the city council concerning proposed pension plan amendments.
Section 2.
Amending the Definition of Creditable Service
For the purposes of this plan, the definition of "Creditable service" or "credited service" set
forth in Section 175.032(4) is hereby revised to read as follows: "Creditable service" or "credited
service" means the aggregate number of years of service, and fractional parts of years of service,
of any firefighter, omitting intervening years and fractional parts of years when such firefighter may
not have been employed by the municipality or special fire control district, subject to the following
conditions:
(c) Credited service under this chapter shall be provided only for service as a firefighter,
with the City of Edgewater as defined in Section 175.032(8)(a)&(b). or for military service
while a firefighter.and shall not indudc cledit fOl any OthCl type of set v icc. A nltllliGipality
m.:ry, by local ordinance, or a special fire contlol dist!ict m.:ry, by rcsolution, provide for the
pU1ehasc of crcdit A firefighter may purchase up to a combined total of five (5) years of
Credited service for voluntary firefighter service with the City of Edge water. military service
prior to employment as vvdl as for or prior service as a firefighter for some other employer
provided: (i) as long as a the firefighter is not entitled to receive a benefit for such other prior
service as a firefighter. and (in the firefighter purchases such prior military or prior other
firefighter service at the full actuarial cost of such Credited service. (See Appendix, attached
hereto and incorporated herein)
(d) In determining the Creditable service of any firefighter, credit for up to 5 years of the
time spent in the military service of the Armed Forces of the United States shall be added
to the years of actual service if:
1. The firefighter is in the active employ of the City of Edgewater an cmployel
immediately prior to such service and leaves a firefighter position, othCI than
a tcmpOlal') position, for the purpose of voluntary or involuntary service in
the Armed Forces of the United States.
2. The firefighter is entitled to reemployment under the provisions of the
uniformed Services Employment and Reemployment Rights Act.
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3. The firefighter returns to his or her employment as a firefighter of the City
of Edgewater municipality or 5pccial fire control di5ttict within I year from
the date of release from such active service.
(e) In determining the creditable service for, military service in the armed forces of the
Um1:edStates~ service as a firefighter with another emplQyer prior to employment with City
of Edgewater or voluntary firefighter, service up to five (5) vears for the years or fractional
parts of years that a firefighter served in the armed forces of the United States, as a
firefighter with any other employer or as a volunteer firefighter with the City of Edgewater
may be purchased provided that:
1.
The firefighter did not receive credited service, for time spent in such prior
service in the armed forces of the United States, in such prior service as a
firefighter with another employer or as a volunteer firefighter for the City of
Edgewater Fire Department. from any other private or governmental
retirement or pension system.
2.
The firefighter purchases such Credited service at the full actuarial cost of
such Credited service. (See Appendix, attached hereto and incorporated
herein)
Section 3.
Amending Optional forms of retirement income
For any municipality, special fire control district, chapter plan, local law municipality, local
law special fire control district, or local law plan under this chapter:
(1) In lieu of the amount and form of retirement income payable in the event of normal
or early retirement as specified in s. 175.162, a firefighter, upon written request to the board
of trustees and subject to the approval of the board of trustees, may elect to receive a
retirement income or benefit of equivalent actuarial value payable in accordance with one
of the following options:
(d) A firefighter may retire for all purposes of the plan and defer receipt of
retirement benefits into a DROP account while continuing employment with the City
as follows:
.L Eligibility
A "eligible firefighter" of the City of Edgewater, Florida Firefighters'
Pension Fund, is defined as a firefighter who has attained age fifty-five (55)
and has five (5) years of creditable service, or has twenty (20) years of
creditable service, may elect to participate in the DROP. On such election,
participation in the DROP shall commence on the first day of the month
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coincident with or next following such election. which date shall constitute
the "initial date of eligibilitv. "
2. Written Election
An eligible firefighter electing to participate in DROP must complete and
execute such forms as may be required by the Board of Trustees not less than
thirty (30) days prior to entering into the DROP. The forms shall include. but
not be limited to. an irrevocable letter of resignation effective no later than
the conclusion of the maximum period of DROP participation. Election into
DROP is irrevocable provided. however. there is no minimum period of
participation.
~ Limitation/disqualification for other benefits
An eligible firefighter may elect to participate in the DROP only once. After
commencement of participation in DROP. a firefighter shall no longer earn.
accrue or purchase additional service credits towards retirement benefits and
shall not be eligible for disability retirement benefits. pre-retirement death
benefits or later enhancements to the City of Edge water Firefighters' Pension
Plan.
4. Cessation or reduction of contributions
Upon the effective date of an eligible firefighter's participation in DROP. all
contributions by and on behalf of the firefighter to the Plan shall be
discontinued.
~ Benefit calculation
For all plan purposes. service and vesting credits of an eligible firefighter
electing DROP shall be fixed as of the effective date of commencement of
DROP participation. Any service as a firefighter after entry into DROP shall
not be used for calculation or determination of benefits payable by the Plan.
The average final compensation of a participant. as defined in this Plan. shall
be determined as of the effective date of commencement of DROP
participation and any subsequent earnings shall not be used for calculation
or determination of benefits payable by the Plan.
6. Benefit Credits to DROP account
a. Upon entry into DROP. the monthly retirement benefit which
would have been payable had the firefighter ceased employment and
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commenced receiving a normal retirement benefit shall be credited
to the firefighter's DROP account on a monthly basis. No benefit
credits from the Plan shall be made to a DROP account for more than
the maximum period of DROP participation.
b. No firefighter shall receive a credit to the firefighter's DROP
account until the required DROP forms have been submitted
including the firefighter's irrevocable letter of resignation and the
City has actuallv discontinued the firefighter's contributions to the
plan.
7. DROP account earnings
Each DROP account shall be eligible to earn interest in accordance with the
following method. which may be amendment by the Board of Trustees
periodically:
The DROP account shall earn interest equal to the actual earnings of
the investments of City of Edgewater Firefighters' Pension Plan. net
of fees as determined by the actuary using the standard IRS formula
for purposes of reporting the annual investment return on Schedule
B (Form 5500). whether or not such form is actually required for this
plan and less an administrative fee to be established annually on
October 1 st of each fiscal year by the Board of Trustees.
~ Maximum period of participation
An eligible firefighter may elect to participate in DROP for a maximum of
sixty (60) months. At the conclusion of the maximum period of DROP
participation. retirement benefit payments to the DROP account shall cease
and the firefighter's termination from employment with the City shall become
effective pursuant to the irrevocable letter of resignation.
9. Administrative Fee for DROP account
An annual administrative fee shall be charged on each October 1st for the
administration and operation of a firefighter's DROP account at a rate
established by the Board of Trustees. In the case of a participant who
separates from service after October 1 s1. the administrative fee shall be paid
on a prorated basis for the partial year of participation.
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.l.!1. Distribution of DROP account
a. Upon termination of a firefighter's City employment. whether
by retirement, resignation, discharge or death, no further benefit
credits shall be made to the DROP account.
b. All retirement benefits paid after termination of employment
shall be made directly to the firefighter, or in the case of death, in
accordance with any survivorship option which the firefighter
elected.
c. Within sixty (60) days following the end of the month in
which the firefighter terminated employment. the balance of the
firefighter's DROP account shall be paid to the firefighter as a lump
sum or by rollover to another qualified retirement plan. The
firefighter must elect the method of payment within thirty (30) days
following the end of DROP participation and the election shall be
irrevocable. Failure to elect a payment within the prescribed time
shall be deemed an election to receive payment of the entire DROP
account balance in cash, less required income tax withholding.
d. Notwithstanding the option selected by the firefighter, the
Board of Trustees reserves the right to accelerate payments to comply
with the minimum distribution provisions of the Internal Revenue
Code or to defer pavments to comply with the maximum benefit
provisions of the Internal Revenue Code.
LL Disability of a DROP participant
If the City determines that a firefighter has become unable to perform the
duties of an Edgewater firefighter due to service or non-service related
disability and terminates the employment of the firefighter for this reason,
the firefighter shall be deemed to have retired on a service retirement and
DROP participation shall end. Distribution of the DROP account balance
shall be made in accordance with the provisions and requirements of this
section in the manner elected by the firefighter.
lb Death of a DROP participant
If a DROP participant dies, the firefighter shall be deemed to have retired
upon entry into DROP and the balance in the DROP account shall be
distributed in accordance with the distribution methodology (Paragraph 10
above) elected by the firefighter, or if no such election has been made, the
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firefighter's designated beneficiary may elect the method of payment in
accordance with the time and election requirements of paragraph 10 above.
Survivorship benefits, if any, shall be paid in accordance with the firefighter's
benefit elections upon entry into DROP.
1l Forms
All forms and notices used in the administration of the DROP shall be
prepared through ioint cooperation between the City of Edgewater and the
Board of Trustees.
@ Back DROP
ill Eligibility: Duration of Back-DROP election.
The Back-DROP shall be defined as a partial lump sum distribution with a
forward annuity for the remainder of the lifetime of the participant available
only to participants who have passed the initial DROP eligibility date as of
the effective date of this ordinance. This sub-section sets forth rights for
participation in the Back-DROP.
ill Participation in Back-DROP.
Participants who have attained age fifty-five (55) and have five (5) years of
creditable service, or have twenty (20) years of creditable service, as of the
effective date of the ordinance shall be eligible to elect to participate in the
Back DROP. Back-DROP benefits shall be up to twenty-four (24) months
of accumulated pension payments utilizing service accrued and average final
compensation based on what would have been the participant's selected date
of eligibility then in existence. Any contributions paid by the eligible
participant during the Back DROP period, not to exceed twenty-four (24)
months, shall be transferred to the participant's Back DROP account. The
Back DROP account shall be credited with interest equal to five percent (5%)
annually from the selected date of Back DROP initiation to the date of the
participant's retirement resignation from employment with the city. In the
case of a partial year's participation, interest shall be prorated to achieve that
applicable rate of interest set forth in this section on an annualized basis.
Interest shall be compounded annually. As part of the application process
for Back DROP, participants shall submit an irrevocable letter of retirement
resignation to take effect immediately upon completion of the Back DROP
application process. Participants electing the Back DROP shall also elect a
distribution methodology of the Back DROP account on the same basis as a
DROP participant as provided in section (d) (10) herein.
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Section 4.
Amending Requirements for Retirement
Any firefighter who completes five (5) or more years of creditable service as a firefighter
and attains age 55, or completes twenty (20) years of creditable service as a firefighter and who for
such minimum period has been a member of the firefighters' pension trust fund is eligible for normal
retirement benefits. Normal retirement under the plan is retirement from the service of the
municipality or special fire control district on or after the normal retirement date. In such event,
payment of retirement income will be governed by the following provisions of this section 175.162:
(7) The board oftrustees may shall, upon written request of.l2y a retiree retired firefighter of the
plan, 01 by a dependent, wlrGn authOlized by the letiree 01 the letiree's beneficiary, autholize the plan
administratol to withhold from the monthly retirement payment those funds that are necessary to
pay for the benefits being received through the go vCllUncntal entity fiCm which the employee retired
the City of Edgewater, to pay the certified bargaining agent of the gOvellullental entity City of
Edgewater fire department, and to make any-payments for child support or alimony.
Section 5.
Effectiveness of Remainder of Chapter 175. Florida Statutes
All other provisions of Chapter 175, Florida Statutes, shall remain in full force and effect.
PART B.
FILING WITH THE DIVISION OF RETIREMENT.
Upon adoption, a copy of this Ordinance shall be filed with the Division of REtirement ofthe
Florida Department of Management Services.
PARTC.
CONFLICTING PROVISIONS.
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 D.
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
circumstance, such holding shall not affect its applicability to any other person, property, or
circumstance.
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PART E.
EFFECTIVE DATE.
That this ordinance shall become effective upon its final adoption.
PART F. ADOPTION.
After Motion by Councilwoman Lichter and Second by Councilwoman Rhodes, the vote on
the first reading of this ordinance held on August 15,2005 is as follows:
AYE NAY
Mayor Donald A. Schmidt X
Councilman James P. Brown X
Councilman Dennis Vincenzi ABSENT
Councilwoman Harriet E. Rhodes X
Councilwoman Judy Lichter X
After Motion by Councilman Vincenzi and Second by Connd lmRn RrmMn
the vote on the second reading of this ordinance was as follows:
AYE NAY
Mayor Donald A. Schmidt X
Councilman James P. Brown X
Councilman Dennis Vincenzi X
Councilwoman Harriet E. Rhodes X
Councilwoman Judy Lichter x
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PASSED AND DULY ADOPTED this 12th day of September, 2005.
ATTEST:
For the use and reliance only by the City of
Edgewater, Florida. Approved as to form and
legality by: Paul E. Rosenthal, Esquire
City Attorney
Foley & Lardney LLP
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CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
By:
Donald A. chmrdt
Mayor
� iNBX
Robin L. Matusick
Legal Assistant/Paralegal
Approved by the City Council of the City of
Edgewater at a meeting held on this 12th day
of September, 2005 under Agenda Item No.
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