2014-O-20 ORDINANCE #2014-0-20
AN ORDINANCE OF THE CITY OF EDGEWATER REPEALING
ORDINANCE NUMBERS 99-0-04,2000-0-18, 2005-0-46 and 2008-0-06 IN
THEIR ENTIRETY AND AMENDING, RESTATING AND ADOPTING
THE CITY OF EDGEWATER, FLORIDA, FIREFIGHTERS' PENSION
PLAN; PROVIDING FOR FILING WITH THE DIVISION OF
RETIREMENT OF THE FLORIDA DEPARTMENT OF MANAGEMENT
SERVICES; PROVIDING FOR CONFLICTING PROVISIONS,
SEVERABILITY, APPLICABILITY; PROVIDING FOR AN EFFECTIVE
DATE AND FOR ADOPTION.
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. 99-0-04, which
amended and restated the City of Edgewater, Florida Firefighters' Pension Fund.
2. On September 11, 2000, City Council adopted Ordinance #2000-0-18, which
clarified the length of service required to qualify for an in the line-of-duty disability benefit.
3. On September 12, 2005, City Council adopted Ordinance #2005-0-46, which
upgraded the current status of the Firefighters' Pension Fund to provide similar benefits to the
Florida Retirement System (FRS).
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4. On July 28, 2008, City Council adopted Ordinance #2008-0-06, which provided
for the annual distribution of state provided excess reserve funds through a sum of years
(seniority) share plan.
5. Changes to federal laws and regulations require that various amendments be made
to the City of Edgewater. Firefighters' Retirement Fund in order to maintain its status as a
qualified plan under Section 401(a) of the Internal Revenue Code.
6. On August 12, 2014, the Trustees of the City of Edgewater Firefighters'
Retirement Fund approved such amendment/restatement as being in the best interests of the
participants and beneficiaries as well as improving the administration of the Plan.
7. 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.
8. In an effort to comply with this objective it is necessary to modify our
Firefighters' Pension Fund accordingly and thereby repeal Ordinance #99-0-04, #2000-0-18,
#2005-0-46 and#2008-0-06 and restate the Plan.
NOW, THEREFORE, BE IT ENACTED BY THE CITY
COUNCIL OF THE CITY OF EDGEWATER,FLORIDA
PART A. REPEAL OF ORDINANCE NOS. 99-0-04, 2000-0-18, 2005-0-46 AND
2008-0-06 IN THEIR ENTIRETY
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Ordinance Nos. 99-0-04, 2000-0-18, 2005-0-46 and 2008-0-06 are hereby repealed.
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PART B. RESTATEMENT OF CITY OF EDGEWATER FLORIDA
FIREFIGHTERS' PENSION PLAN
The restatement of City of Edgewater, Florida, Firefighters' Pension Plan, attached hereto
and incorporated herein by reference as Exhibit"A" is hereby adopted.
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.
PART D. 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 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 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 Councilman Emter with Second by Councilwoman Power the vote on
first reading of this ordinance held on September 8, 2014 was as follows:
AYE NAY
Mayor Mike Thomas X
Councilwoman Christine Power X
Councilwoman Gigi Bennington X
Councilman Mike Ignasiak X
Councilman Gene Emter X
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After a motion by ,('j('&v}lik with second by eaLpioilman , the
vote on the second reading/public hearing of this ordinance held on September 22, 2014 is as
follows:
AYE NAY
Mayor Mike Thomas �(
Councilwoman Christine Power
Councilwoman Gigi Bennington X
Councilman Mike Ignasiak �(
Councilman Gene Emter X
PASSED AND DULY ADOPTED this 22nd day of September, 2014.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
Ali frO
Bonnie Wenzel 0 ike Th mas
City Clerk ayor
Robin L. Matusick
Paralegal
For the use and reliance only by the City of Approved by the City Council of the City of
Edgewater, Florida. Approved as to form and Edgewater at a meeting held on this 22nd day
legality by: Aaron R. Wolfe, Esquire Of September, 2014 under Agenda Item
City Attorney No. 8 b .
Doran, Sims, Wolfe,Kundid,
Ciocchetti&Wagner
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EXHIBIT "A"
CITY OF EDGEWATER, FLORIDA
FIREFIGHTERS' PENSION PLAN
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CITY OF EDGEWATER, FLORIDA
FIREFIGHTERS'
RETIREMENT PLAN
TABLE OF CONTENTS
INTRODUCTION
ARTICLE I FORMAT AND DEFINITIONS
Section 1.01 --- Format
Section 1.02 --- Definitions
ARTICLE II PARTICIPATION
Section 2.01 --- Active Participant
Section 2.02 --- Inactive Participant
Section 2.03 --- Cessation of Participation
ARTICLE III CONTRIBUTIONS
Section 3.01 --- Employee Contributions
Section 3.02 --- State Contributions
Section 3.03 --- Employer Contributions
Section 3.04 --- Other Contributions
Section 3.05 --- Return of Overpayments
Section 3.06 --- Rollover Contributions
ARTICLE IV RETIREMENT BENEFITS
Section 4.01 --- Normal Retirement Benefit
Section 4.02 --- Delayed Retirement Benefit
Section 4.03 --- Early Retirement Benefit
Section 4.04 --- Termination benefit (Generally)
Section 4.05 --- Optional Forms of Benefits
Section 4.06 --- Deferred retirement Option Plan (DROP)
Section 4.07 --- Supplemental Benefit
ARTICLE V OTHER BENEFITS
Section 5.01 --- Disability Benefits on-duty
Section 5.02--- Disability Benefits off-duty
Section 5.03--- Death Benefits
Section 5.04--- Vested Benefits
ARTICLE VI INTERNAL REVENUE CODE COMPLIANCE
ARTICLE VII WHEN BENEFITS START AND DISTRIBUTIONS OF BENEFITS
Section 7.01 --- When Benefits Start
Section 7.02--- Election Procedures
ARTICLE VIII REQUIRED MINIMUM DISTRIBUTIONS
Section 8.01 --- Application
Section 8.02--- Required Minimum Distributions
ARTICLE IX TERMINATION OF THE PLAN
ARTICLE X ADMINISTRATION OF THE PLAN
Section 10.01 --- Board of Trustees
Section 10.02 --- Finances and Fund Management
Section 10.03 --- Records
Section 10.04 --- Rights to Plan Assets
Section 10.05 --- Beneficiary
ARTICLE XI GENERAL PROVISIONS
Section 11.01 --- Amendments
Section 11.02 --- Direct Rollovers
PLAN EXECUTION
INTRODUCTION
The City of Edgewater established a defined benefit retirement Plan, restating
said Plan on November 13, 1989 and declaring the Plan a Local Law Plan on May 16,
1994. 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 is incorporated by reference. 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
fund amendments.
There is hereby assessed, imposed and levied on every insurance company,
corporation or other insurer now engaging in or carrying on, or which shall hereafter
engage in or carry on the business of property insurance, as shown by the records of
the Insurance Commissioner of the State of Florida an excise or license tax in addition
to any license tax or excise tax now levied by the City of Edgewater, which said tax shall
be in the amount of $1.85% of the gross amount of receipts of premiums from
policyholders on all premiums collected on property insurance policies covering property
within the corporate limits of the City of Edgewater.
ARTICLE I
FORMAT AND DEFINITIONS
SECTION 1.01 —FORMAT
Words and phrases defined in the DEFINITIONS SECTION (SECTION 1.02) of
Article I shall have that defined meaning when used in this Plan, unless the context
clearly indicates otherwise.
These words and phrases will have an initial capital letter to aid identifying them
as defined terms.
SECTION 1.02—DEFINITIONS
As used herein, unless otherwise defined or required by the context, the following words
and phrases shall have the meaning indicated:
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Accrued benefit means the benefit accrued by a member under the terms of the Plan.
Accumulated contributions means a member's own contributions without interest. For
those members who purchase Credited service with interest and at no cost to the Plan,
any payment representing the amount attributable to member contributions based on
the applicable member contribution rate, and any actuarially calculated payments for
their purchase, shall be included in accumulated contributions.
Act means the Employee Retirement Income Security Act of 1974 (P.L. 93-406) and
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any regulations issued thereunder by the Department of Labor and the Internal
Revenue Service, as that statute and these regulations shall be amended.
Actuarial equivalent means a benefit or amount of equal value, based upon the most
recent group annuity mortality table and rate in investment return as stated in the most
recent actuarial valuation for the Plan
Average final compensation means one-twelfth (1/12) of the average salary of the five
(5) best years of the last ten (10) years of creditable service prior to retirement,
termination, or death or the career average as a full-time firefighter, whichever is
greater. A year shall be twelve (12) consecutive months.
Bargaining Unit means a specific group of City firefighters represented by one
authorized union or association for the purposes of collective bargaining.
Beneficiary means the person or persons entitled to receive benefits hereunder at the
death of a member of this Plan.
Board means the board of trustees, which shall administer and manage the Plan herein
provided and serve as trustees of the fund.
City means City of Edgewater, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited service means the total number of years and fractional parts of years of
service as a firefighter with member contributions, when required, omitting intervening
years or fractional parts of years when such member was not employed by the City as a
firefighter. A member may voluntarily leave his contributions in the Plan for a period of
up to five (5) years after leaving the employ of the City pending the possibility of being
re-employed as a firefighter without losing credit for the time that he was a member of
the Plan, if after he is rehired he remains re-employed with the same department not
less than three (3) years, otherwise his contributions shall be returned without interest. If
the member who left the employ of the fire department should not be re-employed as a
firefighter within five (5) years, then accumulated contribution will be returned upon the
written request of the member and all of his rights and benefits under the Plan shall be
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forfeited and terminated. However, no member will receive credit for service for which
the member has withdrawn the member's contributions unless the member pays into
the Plan the contributions withdrawn, with interest, at the actuarially assumed rate within
ninety (90) days of reemployment. Years and completed months of employment with the
City during which time the member is participating in the deferred retirement option Plan
(DROP) as described in this Plan, shall not be counted as Credited service for benefit
purposes unless the member elects to continue employment with the City following the
completion of the DROP period and makes payment of the omitted member
contributions. In the event of continued employment following participation in the DROP
program, the member will receive credit for the DROP period in accordance with the
required procedure.
In the event that a member of this Plan has also accumulated Credited service in
another pension Plan maintained by the City, or has a period or periods of previous
employment as a firefighter, but is not eligible to receive Credited service for this period
or periods of previous employment for benefit calculation purposes, then such other
Credited service shall be used in determining eligibility for early or normal retirement.
Such other Credited service will not, however, be considered in determining benefits
under this Plan. Unless otherwise provided herein only the member's Credited service
and compensation under this Plan on or after the member's latest date of membership
in this Plan will be considered for benefit calculation. In addition, any benefit calculation
for a member of this Plan who is or becomes eligible for a benefit from this Plan after
the member has become a member of another pension Plan maintained by the City,
shall be based upon the member's average final compensation, Credited service and
benefit accrual rate as of the date the member ceases to be a firefighter.
Credited service shall be provided only for service as a firefighter, with the City of
Edgewater or for military service while a firefighter with the City. A firefighter may
purchase up to a combined total of five (5) years of Credited service for voluntary
firefighter service with the City of Edgewater, military service prior to employment or
prior service as a firefighter for some other employer provided:
(1) the firefighter is not entitled to receive a benefit for such other prior
service as a firefighter, and
(2) the firefighter purchases such prior military or prior other firefighter
service at the full actuarial cost of such Credited service.
In determining the Creditable service of any firefighter, credit for up to 5 years of
the time spend 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
immediately prior to such service and leaves a firefighter position; for the
purposes of voluntary or involuntary service in the Armed Forces of the
United States.
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(2) The firefighter is entitled to reemployment under the provisions of
the Uniformed Services Employment and Reemployment Rights Act
(USERRA).
(3) The firefighter returns to employment as a firefighter of the City of
Edgewater within 1 year from the date of release from such active service.
In determining the creditable service for, military service in the armed forces of
the United States, service as a firefighter with another employer prior to employment
with City of Edgewater or voluntary firefighter with the City of Edgewater, service up to
five (5) years 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 Plan.
(2) The firefighter purchases such Credited service at the full actuarial cost of
such Credited service.
Division means the State of Florida Division of Retirement.
Effective date is hereby restated to be effective as of November 13, 1989.
Enrolled Actuary means an actuary who is enrolled under Subtitle C of Title III of the
Employee Retirement Income Security Act of 1974 and who is a member of the Society
of Actuaries or the American Academy of Actuaries.
Firefighter means any person employed full-time in the City of Edgewater fire
department who is certified as a firefighter as a condition of employment in accordance
with the provisions of Florida Statute §633.408. Full-time employment shall be deemed
to be employment of a minimum of 40 hours per week.
Volunteer firefighter means any person whose name is carried on the active
membership roll of a constituted volunteer with the City of Edgewater fire and whose
duty it is to extinguish fires, to protect life, and to protect property. Compensation for
services rendered by a volunteer firefighter shall not disqualify him or her as a
volunteer. A person shall not be disqualified as a volunteer firefighter solely because he
or she has other gainful employment. Any person who volunteers assistance at a fire
but is not an active member of a department described herein is not a volunteer
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firefighter within the meaning of this paragraph. Volunteer firefighters for the City of
Edgewater shall not be eligible to participate in this pension Plan.
Fund means the trust fund established herein as part of the Plan.
General Counsel means the attorney retained by the board to represent it with respect
to the Plan.
Local Law Plan means a defined benefit pension Plan for firefighters as described in
Section 175.351 of the Florida Statutes, established by municipal ordinance, which
enactment sets forth all Plan provisions. Local law Plan provisions may vary from the
provisions of Chapter 175 FS, provided that required minimum benefits and minimum
standards are met. Any such variance shall provide a greater benefit for firefighters.
Masculine gender where used herein, unless the context specifically requires otherwise,
shall include both the feminine and masculine genders.
Member means an actively employed full-time firefighter who fulfills the prescribed
membership requirements. Benefit improvements which, in the past, have been
provided for by amendments to the Plan adopted by City ordinance, and any benefit
improvements which might be made in the future shall apply prospectively and shall not
apply to members who terminate employment or who retire prior to the effective date of
any ordinance adopting such benefit improvements, unless such ordinance specifically
provides to the contrary.
Plan means the City of Edgewater Firefighter's Pension Plan and Trust.
Plan year means the twelve (12) month period beginning October 1 and ending
September 30 of the following year. The Plan year shall be the computation period for
the purposes of the Plan.
Property Insurance means property insurance as defined in §624.604 and covers real
and personal property within the corporate limits of the City of Edgewater. "Multiple
peril' means a combination or package policy which includes both property and casualty
coverage for a single premium.
Retiree means a member who has entered retirement status.
Retirement means a firefighter's separation from the City employment as a firefighter
with immediate eligibility for receipt of benefits under the Plan. For purposes of a Plan
that includes a Deferred Retirement Option Plan (DROP), "retirement" means the date a
firefighter enters the DROP.
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Salary prior to October 1, 2012, means total cash remuneration paid a firefighter for
service rendered, reported on the member's W-2 form, plus all tax deferred, tax
sheltered or tax exempt items of income derived from elective employee payroll
deductions or salary reductions. Compensation in excess of limitations set forth in
Section 401(a)(17) of the Internal Revenue Code shall be disregarded. The limitation
on compensation for an "eligible employee" shall not be less than the amount which
was allowed to be taken into account hereunder in effect on July 1, 1993. The City
understands and acknowledges that it has no authority to amend Chapter 175.
Salary on October 1, 2012 and thereafter means the fixed monthly remuneration paid a
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firefighter, provide that when calculating retirement benefits, up to three hundred (300)
hours per year in overtime compensation and any accrued leave balance shall be
included, but payments for accrued unused sick or vacation leave accrued after said
date may not be included.
For the purpose of applying the limitations set forth in Sections 401(a)(17) and
415 of the Internal Revenue Code, earnings shall include any elective deferral (as
defined in Code Section 402(g)(3) of the Internal Revenue Code), and any amount
which is contributed or deferred by the employer at the election of the member and
which is not includible in the gross income of the member by reason of Section 125 or
457 of the Internal Revenue Code. For limitation years beginning on and after January
1, 2001, for the purposes of applying the limitations described herein compensation paid
or made available during such limitation years shall include elective amounts that are
not includible in the gross income of the member by reason of Section 132(f)(4) of the
Internal Revenue Code.
Supplemental Plan means a Plan to which deposits are made to provide extra benefits
for firefighters. Such a Plan is an element of a local law Plan and exists in conjunction
with a defined benefit Plan that meets the minimum benefits and minimum standards of
this chapter.
Plan means the City of Edgewater Firefighter's Pension Plan and Trust as contained
herein and all amendments thereto.
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ARTICLE II
PARTICIPATION
SECTION 2.01—Active Participant
Conditions of eligibility.
All full-time firefighters, and all future new full-time firefighters, shall become
members of this Plan as a condition of employment with the City of Edgewater,
(1) For the purpose of this Plan, the Fire Chief shall have an option to
participate, or not, in this pension Plan.
(2) Such option shall be exercised within ninety (90) days of initial
employment or promotion and shall be irrevocable.
All future firefighters shall be required to complete a medical examination as
prescribed by the City. Based upon medical evidence of a pre-existing adverse health
condition, resulting from the prescribed examination or other records or medical history,
the board may declare any member ineligible for disability benefits hereunder, as
related to such preexisting condition. Each declaration must also be reflected in the
minutes of the meeting of the board at which such declaration was formally adopted or
established by the board.
Application for membership. Each firefighter shall complete a form prescribed by
the board providing the following information:
(1) Acceptance of the terms and conditions of the retirement Plan;
(2) Designation of a beneficiary or beneficiaries;
(3) A sworn statement as to prior medical history;
(4) A written release and waiver of right to privacy permitting the board to
obtain, discuss and distribute all medical records to the board, the board attorney
and any medical professions retained by the board; and
(5) Authorization for payroll deductions payable to the Plan.
SECTION 2.02 – Inactive Participant
An active participant shall become an inactive participant (stop accruing benefits)
on the earliest of the following:
(1) The date he/she ceases to be an eligible employee
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(2) The effective date of complete termination of the Plan
(3) Voluntary discontinuance date
SECTION 2.03 — Cessation of Participation
A participant, whether active or inactive shall cease to be a participant on the
earlier of the following:
(1) The date of death
(2) The date he/she received a single sum distribution that is in lieu of all
benefits under the Plan if vesting percentage is 100%.
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ARTICLE III
CONTRIBUTIONS
SECTION 3.01 - Employee contributions.
Amount. Each member of the Plan shall be required to make regular
contributions to the Plan in the amount of six (6) percent. Member contributions shall be
withheld by the City on behalf of the member shall be deposited with the board each
payroll period. For all other purposes of the Plan, such contributions shall be considered
to be member contributions. Such contributions shall be made by payroll deduction. No
firefighter shall have any right to the money so paid into the fund except as provided
herein.
SECTION 3.02 — State Contributions
Any monies received or receivable by reason of laws of the state for the express
purpose of funding and paying for retirement benefits for firefighters of the City shall be
deposited in the Plan immediately, and under no circumstances more than five (5) days
after receipt by the City.
SECTION 3.03 — Employer Contributions
So long as this Plan is in effect, the City shall make quarterly contributions to the
Plan in an amount equal to the difference in each year between the total aggregate
member contributions for the year, plus state contributions for such year, and the total
cost for the year, in a manner which is authorized under the provision of Part VII of
Chapter 112, Florida Statutes, or its successor. The total cost for any year shall be
defined as the total normal cost plus the additional amount sufficient to amortize the
unfunded past service liability up to a thirty (30) year period, commencing with the fiscal
year in which the effective date of this Plan occurs.
SECTION 3.04 — Other Contributions
Private donations, gifts and contributions may be deposited to the fund, but such
deposits must be accounted for separately and kept on a segregated bookkeeping
basis. Funds arising from these sources may be used only for additional benefits for
members, as determined by the board, and may not be used to reduce what would have
otherwise been required City contributions.
SECTION 3.05 — Return of Overpayments member or beneficiary
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Any overpayment or underpayment from the fund to a member or beneficiary
caused by errors of computation shall be adjusted with interest at a rate per annum
approved by the board. Overpayment shall be charged against payments next
succeeding the correction. Underpayment shall be made up from the fund.
SECTION 3.06 — Rollover contributions
The Plan does not permit member rollover contributions, or voluntary
contributions other than the mandatory contribution required pursuant to the Plan.
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ARTICLE IV
RETIREMENT BENEFITS
SECTION 4.01 — Normal Retirement
Normal retirement date. A member's normal retirement date shall be the first day
of the month coincident with, or next following the date the member attains the earlier
of:
(1) Age fifty-five (55) with five (5) or more years of Credited service; or
(2) Completes twenty (20) years of Credited service.
A member may retire on his or her normal retirement date or on the first day of
any month thereafter. Normal retirement under the Plan is retirement from employment
with the City on or after the normal retirement date. Each member who retires on or
after normal retirement age shall receive a normal retirement pension.
Normal retirement benefit. A member retiring hereunder on or after his or her
normal retirement date shall receive a monthly benefit consisting of a single life annuity
which shall commence on the first day of the month next following his or her retirement
and be continued thereafter during member's lifetime, ceasing upon death, but with one
hundred twenty (120) monthly payments guaranteed in any event. The monthly
retirement benefit for a firefighter shall equal: (i) three percent of average final
compensation, for each year of credited. The normal retirement date shall be the first
day of the month coincident with, or next following, actual retirement.
SECTION 4.02 - Delayed retirement.
Retirement may be delayed by a member and shall not be mandatory solely by
reason of age prior to the required beginning date. The delayed retirement date shall be
the first day of the month coincident with, or next following, actual retirement.
SECTION 4.03 - Early retirement date.
A member may retire on his or her early retirement date which shall be the first
day of any month coincident with or next following the attainment of age fifty (50) and
the completion of ten (10) years of Credited service. Early retirement under the Plan is
retirement from employment with the City on or after the early retirement date and prior
to the normal retirement date.
Early retirement benefit. A member retiring hereunder on his or her early
retirement date may receive either a deferred or an immediate monthly retirement
benefit payable for life, with one hundred twenty (120) monthly payments guaranteed,
as follows:
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A deferred monthly retirement benefit which shall commence on what
would have been the member's normal retirement date had he remained a
firefighter and shall be continued on the first day of each month thereafter. The
amount of each such deferred monthly retirement benefit shall be a life annuity
determined in the same manner as for retirement at normal retirement date
except that Credited service and average final compensation shall be determined
as of the early retirement date; or
- An immediate monthly retirement benefit which shall commence on the
member's early retirement date and shall be continued on the first day of each
month thereafter. The benefit payable shall be as determined in subsection (1)
above, which is actuarially reduced from the amount to which the member would
have been entitled had the member retired on his normal retirement date and
with the same number of years of Credited service as at the time benefits
commence and based on the member's average final compensation at that date.
In no event shall the early retirement reduction exceed three (3) percent for each
year by which the member's age at retirement precedes the member's normal
retirement age.
Immediate and deferred payment of early retirement benefit. The board shall
commence payment of the immediate early retirement pension on the first day of the
month designated by the member as the annuity starting date, so long as such date
follows the member's termination of service with the City. If a member elects a deferred
early retirement pension, or fails to designate an annuity starting date, the board shall
commence payment following the member's attainment of normal retirement age.
SECTION 4.04 - Termination benefit—Generally.
A member whose employment terminates for any reason prior to becoming
eligible for an early or normal retirement pension, shall receive either a deferred
pension, calculated in the manner set forth herein; or a refund benefit in an amount
equal to the total contributions made by the member to the Plan without interest. A
member shall only be entitled to a deferred pension if he has at least five (5) years of
Credited service. Notwithstanding the provisions of this section, a member, at any time
prior to the commencement of his normal retirement pension, his early retirement
pension or his deferred pension, may elect to receive a refund benefit in lieu thereof.
Amount of deferred pension. The member's deferred pension shall be a single
life annuity, with a one hundred twenty-month guarantee, computed in the same manner
as the early retirement pension if the member elects to begin receiving his monthly
pension before age fifty-five (55) or it shall be a single life annuity, with a one hundred
twenty-month guarantee, computed in the same manner as the normal retirement
pension if the member elects to begin receiving his pension on or after age fifty-five
(55), with such benefit to be determined as of the date on which his termination of
employment occurs.
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Payment of deferred pension. A terminated member's deferred pension shall
become payable in the same manner as a normal retirement pension, or if elected by
the member in the manner provided in the same manner as an early retirement pension.
SECTION 4.05 - Optional forms of benefits.
In lieu of the amount and form of retirement income payable in the event of
normal, early, or delayed retirement, or deferred pension, as specified herein, a
member, upon written request to the board, which request shall be retained by the
board, may elect to receive a retirement income or benefit of equivalent actuarial value
payable in accordance with one (1) of the following options:
- A retirement income of a larger monthly amount, payable to the member
for his or her lifetime only.
- A retirement income of a modified monthly amount, payable to the
member during the lifetime of the member, and following the death of the
member, one hundred (100) percent, seventy-five (75) percent, sixty-six and two-
thirds (66 2/3) percent, or fifty (50) percent of such monthly amounts payable to a
joint pensioner for his or her lifetime. Except where the retiree's joint pensioner is
his or her spouse, the present value of payments to the retiree shall not be less
than fifty (50) percent of the total present value of payments to the retiree and his
or her joint pensioner.
- An actuarially equivalent larger monthly amount, with a reduction in the
monthly amount when the member's social security benefits are estimated to
start so that the member's total monthly benefit, inclusive of social security
benefits, will remain constant upon the starting date of his social security
benefits.
The member, upon electing any option of this section, will designate the joint
pensioner (subsection (a)(2) above) or beneficiary (or beneficiaries) to receive the
benefit, if any, payable under the Plan in the event of member's death, and will have the
power to change such designation from time to time. 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 the member's retirement
income benefits have commenced, the member may thereafter change his or her
designated beneficiary up to two (2) times and may change his or her joint pensioner up
to two (2) times without the approval of the board or the current designated survivor.
The retiree member need not provide proof of the good health of the designated
survivor being removed, and the designated survivor being removed need not be living.
Provided that in the absence of proof of good health, the actuary will assume that the
designated survivor being removed has deceased for purposes of calculating the new
benefit payment.
13
The consent of a member's or retiree's joint pensioner or beneficiary to any such
change shall not be required. The rights of all previously designated beneficiaries to
receive benefits under the Plan shall thereupon cease.
Upon change of a retiree's beneficiary or joint pensioner in accordance with this
section, the board shall adjust the retiree's monthly benefit by application of actuarial
calculations to insure that the benefit paid is the actuarial equivalent of the retiree's then
current benefit. Any such retiree shall pay the actuarial recalculation expenses and shall
make repayment of any overage of previously paid pension benefits as a result of said
recalculations. Each request for a change will be made in writing on a form prepared by
the board and on completion will be filed with the board. In the event that no designated
beneficiary survives the retiree, such benefits as are payable in the event of the death of
the retiree subsequent to his or her retirement shall be paid as provided herein.
Retirement income payments shall be made under the option elected in
accordance with the rovisions of this section and shall be subject to the following
subject g
limitations:
(1) If a member dies prior to his or her normal retirement date or early
retirement date, whichever first occurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will be
determined under the provisions of the Plan.
(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 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 retiree and the beneficiary (or beneficiaries) designated by
member or retiree die before the full payment has been effected under any
option providing for payment for a period certain and life thereafter, made
pursuant to the provisions of subsection (a), the board may, in its
discretion, direct that the commuted value of the remaining payments be
paid in a lump sum and in accordance with applicable law.
(4) If a member continues beyond his or her normal retirement date pursuant
to the provisions of and dies prior to his or her 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 member had
retired under the option on the date on which his or her death occurred.
14
Except as set forth herein a retiree may not change his or her retirement option after the
date of cashing or depositing his or her first retirement check.
The board of trustees shall, upon written request by a retired firefighter of the
Plan, withhold from the monthly retirement payment those funds that are necessary to
pay for the benefits being received through the City of Edgewater, to pay the certified
bargaining agent of the City of Edgewater firefighters and to make payment for child
support or alimony.
Notwithstanding anything herein to the contrary, the board in its discretion, may
elect to make a lump sum payment to a member or a member's beneficiary in the event
that the total commuted value of the remaining monthly income payments to be paid do
not exceed five thousand dollars ($5,000.00). Any such payment made to any person
pursuant to the power and discretion conferred upon the board by the preceding
sentence shall operate as a complete discharge of all obligations under the Plan with
the regard to such member and shall not be subject to review by anyone, but shall be
final, binding and conclusive on all persons.
SECTION 4.06— Deferred Retirement Option Plan
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:
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 coincident with or next following
such election, which date shall constitute the "initial date of eligibility."
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
15
shall not be eligible for disability retirement benefits, pre-retirement death
benefits or later enhancements to the City of Edgewater Firefighters' Pension
Plan.
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.
Benefit Credits to DROP account
Upon entry into DROP, the monthly retirement benefit which would have been
payable had the firefighter ceased employment and commenced receiving a
normal retirement benefit shall be credited to the firefighter's DROP account on a
month basis. No benefit credits from the Plan shall be made to a DROP account
for more than the maximum period of DROP participation.
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 actually discontinued the firefighter's
contributions to the Plan.
DROP account earnings
Each DROP account shall be eligible to earn interest in accordance with the
following method, which may be amended 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 1st of each fiscal year by the Board of
Trustees.
Maximum period of participation
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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.
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 1st, the administrative fees shall be paid on a prorated basis
for the partial year of participation.
Distribution of DROP account
Upon termination of a firefighter's City employment, whether by retirement,
resignation, discharge a or death, no further benefit credits shall be m ade to th
e
DROP account.
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.
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.
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 payments to
comply with the maximum benefit provisions of the Internal Revenue Code.
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.
17
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 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.
Forms
All forms and notices used in the administration of the DROP shall be prepared
through joint cooperation between the City of Edgewater and the Board of
Trustees.
Back DROP
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. This subsection
sets forth rights for participation in the Back-DROP.
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, but not before the attainment of normal retirement
date. 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 the net investment return of the Plan annually from the
selected date of Back Drop initiation to the date of the participant's retirement or
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 resignation to take effect immediately upon
completion of the Back Drop application process. Participants electing the Back
18
DROP shall also elect a distribution methodology of the Back DROP account on
the same basis as a DROP participant as provided herein.
SECTION 4.07 — Supplemental 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 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 and
terminates service with the City or an active firefighter that retires under the retirement
provisions herein) no later than the 1st 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 30th 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 to an account to be maintained by the Pension Fund, which
shall be credited or debited with the actual rate of investment return (less expenses) of
the Pension Fund and shall be rolled over to a designated qualified Plan on retirement
or termination or in the event of death prior to retirement paid to a designated
beneficiary.
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ARTICLE V
OTHER BENEFITS
SECTION 5.01 --- Disability Benefits on-duty
Disability benefits in-duty. Each firefighter who is a member in the Plan and who
shall have become totally and permanently disabled, while, actively employed as a
firefighter with the City to the extent that he is unable, by reason of a medically
determinable physical or mental impairment, to render useful and efficient service as a
firefighter, and which disability was directly caused by the performance of his duty as a
firefighter shall, upon establishing the same to the satisfaction of the board, be entitled
to a monthly pension equal to either, (i) accrued normal retirement benefit or (ii) a
minimum amount paid to the member of not less than forty-two (42) percent of the
member's compensation. For the purposes of this paragraph, compensation shall be
deemed to be the greater of the member's monthly compensation based upon his or her
pay status at the time the disability occurred or his or her average final compensation.
Any condition or impairment of health of a firefighter caused by tuberculosis,
hypertension or heart disease resulting in total or partial disability or death shall be
presumed to have been suffered in the line of duty unless the contrary is shown by
competent evidence; provided, that such firefighter shall have successfully passed a
physical examination upon entering into such service, including a cardiogram, which
examination failed to reveal any evidence of such condition; and provided further, that
such presumption shall not apply to benefits payable or granted in a policy of life
insurance or disability insurance.
The presumption provided for in this paragraph shall apply only to those
conditions described in this subsection that are diagnosed on or after January 1, 1996.
Definitions. As used in this section, the following definitions apply:
(1) "Body fluids" means blood and body fluids containing visible blood and
other body fluids to which universal precautions for prevention of
occupational transmission of blood-borne pathogens, as established by
the Centers for Disease Control, apply. For purposes of potential
transmission of meningococcal meningitis or tuberculosis, the term "body
fluids" includes respiratory, salivary, and sinus fluids, including droplets,
sputum, and saliva, mucous, and other fluids through which infectious
airborne organisms can be transmitted between persons.
(2) "Emergency rescue or public safety member" means any member
employed full-time by the City as a firefighter, paramedic, emergency
medical technician, law enforcement officer, or correctional officer who, in
20
the course of employment, runs a high risk of occupational exposure to
hepatitis, meningococcal meningitis, or tuberculosis and who is not
employed elsewhere in a similar capacity. However, the term "emergency
rescue or public safety member" does not include any person employed
by a public hospital licensed under F.S. Ch. 395, or any person employed
by a subsidiary thereof.
(3) "Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A, hepatitis non-B,
hepatitis C, or any other strain of hepatitis generally recognized by the
medical community.
(4) "High risk of occupational exposure" means that risk that is incurred
because a person subject to the provisions of this subsection, in
performing the basic duties associated with his or her employment:
Provides emergency medical treatment in a non-healthcare setting
where there is a potential for transfer of body fluids between
persons;
ii. At the site of an accident, fire, or other rescue or public safety
operation, or in an emergency rescue or public safety vehicle,
handles body fluids in or out of containers or works with or
otherwise handles needles or other sharp instruments exposed to
body fluids;
(5) "Occupation exposure," in the case of hepatitis, meningococcal meningitis,
or tuberculosis, means an exposure that occurs during the performance of
job duties that may place a worker at risk of infection.
Presumption. Any emergency rescue or public safety member who suffers a
condition or impairment of health that is caused by hepatitis, meningococcal meningitis,
or tuberculosis, that requires medical treatment, and that results in total or partial
disability or death shall be presumed to have a disability suffered in the line of duty,
unless the contrary is shown by competent evidence; however, in order to be entitled to
Y Y p
the presumption, the member must, by written affidavit as provided in F.S. §92.50, verify
p Y p § fY
by written declaration that, to the best of his or her knowledge and belief:
(1) In the case of a medical condition caused by or derived from hepatitis, he
has not:
Been exposed, through transfer of bodily fluids, to any person
known to have sickness or medical conditions derived from
hepatitis, outside the scope of his employment;
21
ii. Had a transfusion of blood or blood components, other than a
transfusion arising out of an accident or injury happening in
connection with his present employment, or received any blood
products for the treatment of a coagulation disorder since last
undergoing medical tests for hepatitis, which tests failed to indicate
the presence of hepatitis;
iii. Engaged in unsafe sexual practices or other high-risk behavior, as
identified by the Centers for Disease Control or the Surgeon
General of the United States or had sexual relations with a person
known to him to have engaged in such unsafe sexual practices or
other high-risk behavior; or
iv. Used intravenous drugs not prescribed by a physician.
(2) In the case of meningococcal meningitis, in the ten (10) days immediately
preceding diagnosis he or she was not exposed, outside the scope of his
or her employment, to any person known to have meningococcal
meningitis or known to be an asymptomatic carrier of the disease.
(3) In the case of tuberculosis, in the period of time since the member's last
negative tuberculosis skin test, he or she has not been exposed, outside
the scope of his or her employment, to any person known by him or her to
have tuberculosis.
Immunization. Whenever any standard, medically recognized vaccine or other
form of immunization or prophylaxis exists for the prevention of a communicable
disease for which a presumption is granted under this section, if medically indicated in
the given circumstances pursuant to immunization policies established by the Advisory
Committee on Immunization Practices of the U.S. Public Health Service, an emergency
rescue or public safety member may be required by the City to undergo the
immunization or prophylaxis unless the member's physician determines in writing that
the immunization or other prophylaxis would pose a significant risk to the member's
health. Absent such written declaration, failure or refusal by an emergency rescue or
public safety member to undergo such immunization or prophylaxis disqualifies the
member from the benefits of the presumption.
Record of exposures. The City shall maintain a record of any known or
reasonable suspected exposure of an emergency rescue or public safety member in its
employ to the disease described in this section and shall immediately notify the member
of such exposure. An emergency rescue or public safety member shall file an incident
or accident report with the City of each instance of known or suspected occupational
exposure to hepatitis infection, meningococcal meningitis, or tuberculosis.
22
Required medical tests; pre-employment physical. In order to be entitled to the
presumption provided by this section:
(1) An emergency rescue or public safety member must, prior to diagnosis,
have undergone standard, medically acceptable tests for evidence of the
communicable disease for which the presumption is sought, or evidence
of medical conditions derived therefrom, which tests fail to indicate the
presence of infection. This paragraph does not apply in the case of
meningococcal meningitis.
(2) On or after June 15, 1995, an emergency rescue or public safety member
may be required to undergo a pre-employment physical examination that
tests for any evidence of hepatitis or tuberculosis.
SECTION 5.02 - Disability benefits off-duty.
Every firefighter who is a member in the Plan with five (5) years or more Credited
service who shall have become totally and permanently disabled to the extent that he is
unable, by reason of a medically determinable physical or mental impairment, to render
useful and efficient service as a firefighter, which disability is not directly caused by the
performance of his duties as a firefighter, shall be entitled to a monthly pension equal to
either: (i) two and one-half (21/2) percent of monthly compensation for a member
separating from service prior to October 1, 1998, or (ii) three (3) percent of monthly
compensation for a member separating from service on or after October 1, 1998,
multiplied by the total years of Credited service, but in any event, the minimum amount
paid to the member shall be twenty-five (25) percent of his compensation. This
provision shall not apply to a member who has reached early or normal retirement age.
Any disability occurring after termination shall not constitute a basis for disability
payments. For the purposes of this paragraph, compensation shall be deemed to the
greater of the member's monthly compensation based upon his or her pay status at the
time the disability occurred or his or her average final compensation.
Conditions disqualifying disability benefits. Each firefighter who is claiming
disability benefits shall establish, to the satisfaction of the board, that such disability or
death was not occasioned primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
(2) Injury or disease sustained while willfully and illegally participating in
fights, riots or civil insurrections.
(3) Injury or disease sustained while committing a crime.
(4) Injury or disease sustained while serving in any branch of the armed
forces.
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(5) Injury or disease sustained after his employment as a firefighter with the
City shall have terminated.
(6) A condition pre-existing the firefighter's membership in the Plan. No
member shall be entitled to a disability pension because of or due to the
aggravation of a specific injury, impairment or other medical condition pre-
existing at the time of membership in the Plan; provided, that such
preexisting condition and its relationship to a later injury, impairment or
other medical condition be established by competent substantial evidence.
Nothing herein shall be construed to preclude a disability pension to a
member who, after membership in the Plan, suffers an injury, impairment
or other medical condition different from some other injury, impairment or
other medical condition existing at or prior to said membership.
Physical examination requirement. A firefighter shall not become eligible for
disability benefits until and unless he undergoes a physical examination by a qualified
physician or physicians and/or surgeon or surgeons, who shall be selected by the board
for that purpose. The board shall not select the member's treating physician or surgeon
for this purpose except in an unusual case where the board determines that it would be
reasonable and prudent to do so.
Any firefighter receiving disability benefits under provisions of this section shall
be periodically re-examined by a qualified physician or physicians and/or surgeon or
surgeons, who shall be selected by the board, to determine if such a disability has
ceased to exist. If the board finds that the retiree is no longer permanently and totally
disabled to the extent that he is unable to render useful and efficient service as a
firefighter, the board shall recommend to the City that the retiree be returned to
performance of duty as a firefighter and that the disability retirement income be
discontinued and the retiree so returned shall enjoy the same rights that member had at
the time he was placed upon pension.
The cost of the physical examination and/or re-examination of the firefighter
claiming and/or receiving disability benefits shall be borne by the board of this Plan. All
other reasonable costs as determined by the board incident to the physical examination,
such as, but not limited to, transportation, meals and hotel accommodations, shall be
borne by the board.
If the firefighter recovers from disability and re-enters the service of the City as a
firefighter, his service will be deemed to have been continuous, but the period beginning
with the first month for which he received a disability retirement income payment and
ending with the date he re-entered the service of the City will not be considered as
Credited service for the purposes of the Plan.
The board shall have the power and authority to make the final decisions
regarding all disability claims.
24
Disability payments. The monthly benefit to which a member is entitled in the
event of the member's disability retirement shall be payable on the first day of the first
month after the board determines such entitlement. However, the monthly retirement
income shall be payable as of the date the board determined such entitlement, and any
portion due for a partial month shall be paid together with the first payment. The last
payment will be:
(1) If the firefighter recovers from the disability prior to his normal retirement
date, the payment due next preceding the date of such recovery; or
(2) If the firefighter dies without recovering from disability or attains his normal
retirement date while still disabled, the payment due next preceding his
death or the one hundred twentieth monthly payment, whichever is later.
(3) Any monthly retirement income payments due after the death of a
disabled firefighter shall be paid to the firefighter's designated beneficiary
or beneficiaries as provided in Florida Statutes §§ 175.181 and 175.201.
A disabled member may select an actuarially equivalent optional form of benefit
in the same manner as a retired member, or in such other actuarially equivalent form as
may be allowed by the board.
SECTION 5.03 — Death Benefits
Death prior to retirement; refunds of contributions; death benefits.
If a firefighter dies prior to retirement and has at least 5 years of contributing
service, his beneficiary is entitled to the benefits otherwise payable to the firefighter at
early or normal retirement age or the immediate refund of one-hundred (100%) percent,
without interest, of the contributions made to the firefighters' pension trust fund by such
deceased firefighter.
Death while performing USERRA-qualified active military service.
In the case of a Member who dies on or after January 1, 2007 while performing
"Qualified Military Service" under Title 38, United States Code, Chapter 43, Uniformed
Services Employment and Reemployment Rights Act ("USERRA") within the meaning of
Section 414(u) of the Internal Revenue Code, any "additional benefits" (as defined by
Section 401(a)(37) of the Internal Revenue Code) provided under the Plan that are
contingent upon a Member's termination of employment due to death shall be
determined as though the Member had resumed employment immediately prior to his
death. With respect to any such "additional benefits," for vesting purposes only, credit
shall be given for the period of the Member's absence from covered employment during
"Qualified Military Service".
25
SECTION 5.04 — Vested Benefits
If a firefighter leaves the service of the City before accumulating aggregate time
of five (5) years toward retirement and before being eligible to retire under the
provisions of this chapter, the firefighter shall be entitled to a refund of all of his or her
contributions made to the firefighters' pension trust fund, without interest. If a firefighter
who has been in the service of the City for at least five (5) years and has contributed to
the firefighters' pension trust fund for at least five (5) years elects to leave his or her
accrued contributions in the firefighters' pension trust fund, such firefighter upon
attaining the age of 50 years may retire at the actuarial equivalent of the amount of such
retirement income otherwise payable. In no event shall the early retirement reduction
exceed three (3) percent for each year by which the member's age at retirement
precedes the member's normal retirement age.
ARTICLE VI
INTERNAL REVENUE CODE COMPLIANCE
(a) Maximum Pension
Notwithstanding any provision of this Plan to the contrary, the Annual Pension
that is accrued by or paid to a participant shall not exceed the Dollar Limitation
set forth below. If the benefit the participant would otherwise accrue in a
Limitation Year would produce an Annual Pension in excess of the Dollar
Limitation, the benefit shall be limited to a benefit that does not exceed the Dollar
Limitation.
(1) Definitions Used in the Section
(A) "Annual Pension" means the benefits received by a participant
under this Plan expressed in the form of a straight life annuity. In
determining whether benefits payable exceed the Dollar Limitation set
forth below, benefits payable in any form other than a straight life annuity
shall be adjusted to the larger of:
(i) The annual amount of the straight life annuity (if any)
payable to the participant under the Plan commencing at the same
annuity starting date as the form of benefit payable to the
participant; or
(ii) The annual amount of the straight life annuity commencing
at the same annuity starting date that has the same actuarial
present value as the form of benefit payable to the participant,
computed using a 5 percent interest assumption and the applicable
mortality table described in Internal Revenue Code §1.417(e)-
1(d)(2) for that annuity starting date.
26
No actuarial adjustment to the benefit shall be made for benefits that are not
directly related to retirement benefits (such as a qualified disability benefit,
preretirement incidental death benefits, and postretirement medical benefits); or
the inclusion in the form of benefit of an automatic benefit increase feature,
provided the form of benefit is not subject to §417(e)(3) of the Internal Revenue
Code and would otherwise satisfy the limitations of this Subsection (a), and the
amount payable under the form of benefit in any Limitation Year shall not exceed
the limits of this Subsection (a) applicable at the annuity starting date, as
increased in subsequent years pursuant to §415(d) of the Code. For this
purpose, an automatic benefit increase feature is included in a form of benefit if
the form of benefit provides for automatic, periodic increases to the benefits paid
in that form.
(B) "Dollar Limitation" means $160,000 (subject to the annual
adjustments provided under Section 415(d) of the IRC). Said amount
shall be adjusted based on the age of the participant when benefits begin
as follows:
(i) Except with respect to a participant who is a "Qualified
Participant" as defined in Section 415(b)(2)(H) of the Code, for
benefits (except survivor and disability benefits as defined in
Section 415(b)(2)(I) of the Code) beginning before age 62 the Age-
Adjusted Dollar Limitation is equal to the lesser of—
(I) the actuarial equivalent of the annual amount of a
straight life annuity commencing at the annuity starting date
that has the same actuarial present value as a deferred
straight life annuity commencing at age 62, where annual
payments under the straight life annuity commencing at age
62 are equal to the Dollar Limitation (as adjusted pursuant to
section 415(d) for the limitation year), and where the
actuarially equivalent straight life annuity is computed using
a 5 percent interest rate and the applicable mortality table
under §1.417(e)-1(d)(2) that is effective for that annuity
starting date (and expressing the participant's age based on
completed calendar months as of the annuity starting date);
and
(2) the Dollar Limitation (as adjusted pursuant to section
415(d)) multiplied by the ratio of the annual amount of the
straight life annuity under the Plan to the annual amount of
the straight life annuity under the Plan commencing at age
62, with both annual amounts determined without applying
the rules of section 415.
27
(ii) For benefits beginning after the age of 65, the age-adjusted
Dollar Limitation is equal to the lesser of:
(I) the actuarial equivalent of the annual amount of a
straight life annuity commencing at the annuity starting date
that has the same actuarial present value as a straight life
annuity commencing at age 65, where annual payments
under the straight life annuity commencing at age 65 are
equal to the dollar limitation of section 415(b)(1)(A) (as
adjusted pursuant to section 415(d) for the limitation year),
and where the actuarially equivalent straight life annuity is
computed using a 5 percent interest rate and the applicable
mortality table under §1.417(e)-1(d)(2) that is effective for
that annuity starting date (and expressing the participant's
age based on completed calendar months as of the annuity
starting date); and
(2) the section 415(b)(1)(A) Dollar limitation (as adjusted
pursuant to section 415(d) and §1.415(d)-1 for the limitation
year) multiplied by the ratio of the annual amount of the
adjusted immediately commencing straight life annuity under
the Plan to the adjusted age 65 straight life annuity. The
adjusted immediately commencing straight life annuity
means the annual amount of the immediately commencing
straight life annuity payable to the participant, computed
disregarding the participant's accruals after age 65 but
including actuarial adjustments even if those actuarial
adjustments are applied to offset accruals. For this purpose,
the annual amount of the immediately commencing straight
life annuity is determined without applying the rules of
section 415. The adjusted age 65 straight life annuity means
the annual amount of the straight life annuity that would be
payable under the Plan to a hypothetical participant who is
65 years old and has the same accrued benefit (with no
actuarial increases for commencement after age 65) as the
participant receiving the distribution (determined
disregarding the participant's accruals after age 65 and
without applying the rules of section 415).
(iii) There shall be no age adjustment of the Dollar Limitation with
respect to benefits beginning between the ages of 62 and 65.
(b) The limitations set forth in this Subsection (a) shall not apply if the Annual
Pension does not exceed $10,000 provided the participant has never participated
in a Defined Contribution Plan maintained by the City.
28
(c) Cost-of-living adjustments in the Dollar Limitation for benefits shall be limited to
scheduled annual increases determined by the Secretary of the Treasury under
Section Subsection 415(d) of the Code.
(d) In the case of a participant who has fewer than 10 years of participation in the
Plan, the Dollar Limitation set forth in Paragraph (1)(B) of this Subsection (a)
shall be multiplied by a fraction — (i) the numerator of which is the number of
years (or part thereof) of participation in the Plan, and (ii) the denominator of
which is 10.
(e) Any portion of a participant's benefit that is attributable to mandatory employee
contributions (unless picked-up by the City) or rollover contributions, shall be
taken into account in the manner prescribed in the regulations under Section 415
of the Code.
(f) Should any participant participate in more than one defined benefit Plan
maintained by the City, in any case in which the participant's benefits under all
such defined benefit Plans (determined as of the same age) would exceed the
Dollar Limitation applicable at that age, the accrual of the participant's benefit
under this Plan shall be reduced so that the participant's combined benefits will
equal the Dollar Limitation.
(g) For a participant who has or will have distributions commencing at more than one
annuity starting date, the Annual Benefit shall be determined as of each such
annuity starting date (and shall satisfy the limitations of this Section as of each
such date), actuarially adjusting for past and future distributions of benefits
commencing at the other annuity starting dates. For this purpose, the
determination of whether a new starting date has occurred shall be made without
regard to §1.401(a)-20, Q&A 10(d), and with regard to §1.415(b)1(b)(1)(iii)(B)
and (C) of the Income Tax Regulations.
(h) The determination of the Annual Pension under Paragraph (a)(1) of this
Subsection (a) shall take into account (in the manner prescribed by the
regulations under Section 415 of the Code) social security supplements
described in §411(a)(9) of the Internal Revenue Code and benefits transferred
from another defined benefit Plan, other than transfers of distributable benefits
pursuant §1.411(d)-4, Q&A-3(c) of the Income Tax Regulations.
(i) The above limitations are intended to comply with the provisions of Section 415
of the Code, as amended, so that the maximum benefits provided by Plans of the
City shall be exactly equal to the maximum amounts allowed under Section 415
of the Code and regulations thereunder. If there is any discrepancy between the
provisions of this Subsection (a) and the provisions of Section 415 of the Code
and regulations thereunder, such discrepancy shall be resolved in such a way as
to give full effect to the provisions of Section 415 of the Code. The value of any
benefits forfeited as a result of the application of this Subsection (a) shall be used
to decrease future employer contributions.
29
ARTICLE VII
WHEN BENEFITS START AND DISTRIBUTION OF BENEFITS
SECTION 7.01 –When Benefits Start
The monthly retirement income payable in the event of normal retirement will be
payable on the first day of each month. The first payment will be made on the
firefighter's normal retirement date, or on the first day of the month coincident with or
next following his or her actual retirement, if later, and the last payment will be the
payment due next preceding the firefighter's death; except that, in the event the
firefighter dies after retirement but before he or she has received retirement benefits for
a period of 10 years, the same monthly benefit will be paid to the beneficiary (or
beneficiaries) as designated by the firefighter for the balance of such 10-year period. If
a firefighter continues in the service of the municipality or special fire control district
beyond his or her normal retirement date and dies prior to his or her date of actual
retirement, without an option made pursuant to s. 175.171 FS being in effect, monthly
retirement income payments will be made for a period of 10 years to a beneficiary (or
beneficiaries) designated by the firefighter as if the firefighter had retired on the date on
which his or her death occurred.
Required Beginning Date:
Notwithstanding any other provision of the Plan, payment of a participant's
retirement benefits under the Plan shall commence not later than the participant's
Required Beginning Date, which is defined as the later of:
(1) April 1 of the calendar year that next follows the calendar year in which
the participant attains or will attain the age of 70 1/2 years; or
(2) April 1 of the calendar year that next follows the calendar year in which
the participant retires.
SECTION 7.02—Election Procedures
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 firefighter dies prior to his or her normal retirement date or early
retirement date, whichever first occurs, no retirement benefit will be
payable under the option to any person, but the benefits, if any, will be
determined under §175.201 Florida Statutes.
(2) If the designated beneficiary (or beneficiaries) or joint pensioner dies
before the firefighter'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 firefighter upon retirement as if the election
31
had not been made, unless a new election is made in accordance with the
provisions of this section or a new beneficiary is designated by the
firefighter prior to retirement and within 90 days after the death of the
beneficiary.
(3) If both the retired firefighter and the beneficiary (or beneficiaries)
designated by him or her die before the full payment has been effected
under any option providing for payments for a period certain and life
thereafter, made pursuant to the provisions herein, the board of trustees
may, in its discretion, direct that the commuted value of the remaining
payments be paid in a lump sum and in accordance with §175.181, Florida
Statutes.
(4) If a firefighter continues beyond his or her normal retirement date pursuant
to the provisions herein 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
firefighter in the amount or amounts computed as if the firefighter had
retired under the option on the date on which death occurred.
No firefighter may make any change in his or her retirement option after the date
of cashing or depositing the first retirement check.
32
ARTICLE VIII
REQUIRED MINIMUM DISTRIBUTIONS
SECTION 8.01 - Application
Benefits shall begin as provided in the Plan.
SECTION 8.02—Required Minimum Distributions
Required Minimum Distributions.
(1) Required Beginning Date. The participant's entire interest will be
distributed, or begin to be distributed, to the participant no later than the
participant's Required Beginning Date as defined in Subsection (b) of this
Section.
(2) Death of participant Before Distributions Begin.
(A) If the participant dies before distributions begin, the participant's
entire interest will be distributed, or begin to be distributed, no later than
as follows:
(i) If the participant's surviving spouse is the participant's sole
designated beneficiary, then distributions to the surviving spouse
will begin by December 31 of the calendar year immediately
following the calendar year in which the participant dies, or by
December 31 of the calendar year in which the participant would
have attained age 70 1/2, if later.
(ii) If the participant's surviving spouse is not the participant's
sole designated beneficiary, then distributions to the designated
beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the participant
died.
(iii) If there is no designated beneficiary as of September 30 of
the year following the year of the participant's death, the
participant's entire interest will be distributed by December 31 of
the calendar year containing the fifth anniversary of the participant's
death.
(B) The participant's entire interest shall be distributed as follows:
(i) Participant Survived by Designated Beneficiary. If the
participant dies before the date distribution of his or her interest
33
begins and there is a designated beneficiary, the participant's entire
interest will be distributed, beginning no later than the time
described in Subparagraph (2)(A) above, over the life of the
designated beneficiary or over a period certain not exceeding:
(a) unless the annuity starting date is before the first
distribution calendar year, the life expectancy of the
designated beneficiary determined using the beneficiary's
age as of the beneficiary's birthday in the calendar year
immediately following the calendar year of the participant's
death; or
(b) if the annuity starting date is before the first
distribution calendar year, the life expectancy of the
designated beneficiary determined using the beneficiary's
age as of the beneficiary's birthday in the calendar year that
contains the annuity starting date.
(ii) No Designated Beneficiary. If the participant dies before the
date distributions begin and there is no designated beneficiary as of
September 30 of the year following the year of the participant's
death, distribution of the participant's entire interest will be
completed by December 31 of the calendar year containing the fifth
anniversary of the participant's death.
(C) Death of Surviving Spouse before Distributions to Surviving Spouse
Begin. In any case in which (i) the participant dies before the date
distribution of his or her interest begins, (ii) the participant's surviving
spouse is the participant's sole designated beneficiary, and (iii) the
surviving spouse dies before distributions to the surviving spouse being,
Subparagraphs (2)(A) and 2(B) above shall apply as though the surviving
spouse were the participant.
(3) Requirements For Annuity Distributions That Commence During
participant's Lifetime.
(A) Joint Life Annuities Where the Beneficiary Is Not the participant's
Spouse.
If the participant's interest is being distributed in the form of a joint and
p p 9 joint
annuity for the joint lives of the participant and a non-spousal
beneficiary, annuity payments to be made on or after the participant's
Required Beginning Date to the designated beneficiary after the
participant's death must not at any time exceed the applicable percentage
of the annuity payment for such period that would have been payable to
the participant using the table set forth in Q&A-2 of Section 1.401(a)(9)-6T
of the Treasury regulations. If the form of distributions combines a joint
34
and survivor annuity for the joint lives of the participant and a non-spousal
beneficiary and a period certain annuity, the requirement in the preceding
sentence will apply to annuity payments to be made to the designated
beneficiary after the expiration of the period certain.
(B) Period Certain Annuities. Unless the participant's spouse is the
sole designated beneficiary and the form of distribution is a period certain
and no life annuity, the period certain for an annuity distribution
commencing during the participant's lifetime may not exceed the
applicable distribution period for the participant under the Uniform Lifetime
Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations for the
calendar year that contains the annuity starting date. If the annuity
starting date precedes the year in which the participant reaches age 70,
the applicable distribution period for the participant is the distribution
period for age 70 under the Uniform Lifetime Table set forth in Section
1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the
age of the participant as of the participant's birthday in the year that
contains the annuity starting date. If the participant's spouse is the
participant's sole designated beneficiary and the form of distribution is a
period certain and no life annuity, the period certain may not exceed the
longer of the participant's applicable distribution period, as determined
under this Subparagraph (3)(B), or the joint life and last survivor
expectancy of the participant and the participant's spouse as determined
under the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9
of the Treasury regulations, using the participant's and spouse's birthdays
in the calendar year that contains the annuity starting date.
(4) Form of Distribution. Unless the participant's interest is distributed in
the form of an annuity purchased from an insurance company or in a single sum
on or before the Required Beginning Date, as of the first distribution calendar
year distributions will be made in accordance with Subparagraphs (4)(A), (4)(B)
and (4)(C) below. If the participant's interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder will be
made in accordance with the requirements of Section 401(a)(9) of the Code and
the Treasury regulations. Any part of the participant's interest which is in the
form of an individual account described in Section 414(k) of the Code will be
distributed in a manner satisfying the requirements of Section 401(a)(9) of the
Code and the Treasury regulations that apply to individual accounts.
(A) General Annuity Requirements. If the participant's interest is paid
in the form of annuity distributions under the Plan, payments under the
annuity will satisfy the following requirements
(i) the annuity distributions will be paid in periodic payments
made at intervals not longer than one year;
35
(ii) the distribution period will be over a life (or lives) or over a
period certain, not longer than the distribution period described in
Paragraphs 2 or 3 above, whichever is applicable, of this
Subsection (c);
(iii) once payments have begun over a period certain, the period
certain will not be changed even if the period certain is shorter than
the maximum permitted;
(iv) payments will either be non-increasing or increase only as
follows:
(I) by an annual percentage increase that does not
exceed the annual percentage increase in a cost-of-living
index that is based on prices of all items and issued by the
Bureau of Labor Statistics;
(2) to the extent of the reduction in the amount of the
participant's payments to provide for a survivor benefit upon
death, but only if the beneficiary whose life was being used
to determine the distribution period dies or is no longer the
participant's beneficiary pursuant to a qualified domestic
relations order within the meaning of Section 414(p) of the
Code;
(3) to provide cash refunds of employee contributions
upon the participant's death; or
(4) to pay increased benefits that result from a Plan
amendment.
(B) Amount Required to be Distributed by Required Beginning Date.
The amount that must be distributed on or before the participant's
Required Beginning Date (or, if the participant ides before distributions
begin, the date distributions are required to begin under Subparagraph
(2)(A)(i) or (2)(A)(ii), whichever is applicable) is the payment that is
required for one payment interval. The second payment need not be
made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods
for which payments are received, e.g., bi-monthly, monthly, semi-annually,
or annually. All of the participant's benefit accruals as of the last day of the
first distribution calendar year will be included in the calculation of the
amount of the annuity payments for payment intervals ending on or after
the participant's Required Beginning Date.
(C) Additional Accruals after First Distribution Calendar Year. Any
additional benefits accruing to the participant in a calendar year after the
first distribution calendar year will be distributed beginning with the first
36
payment interval ending in the calendar year immediately following the
calendar year in which such amount accrues.
(5) For purposes in this Subsection (c), distributions are considered to begin
on the participant's Required Beginning Date. If the annuity payments
irrevocably commence to the participant (or to the participant's Surviving Spouse)
before the participant's Required Beginning Date (or, if to the participant's
Surviving Spouse, before the date distributions are required to begin in
accordance with Subparagraph (2)(A) above), the date distributions are
considered to begin is the date distributions actually commence.
(6) Definitions.
(A) Designated beneficiary. The individual who is designated as the
beneficiary under the Plan and is the designated beneficiary under Section
401(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.
(B) Distribution calendar year. A calendar year for which a minimum
distribution is required. For distributions beginning before the participant's
death, the first distribution calendar year is the calendar year immediately
preceding the calendar year which contains the participant's Required
Beginning Date. For distributions beginning after the participant's death,
the first distribution calendar year is the calendar year in which
distributions are required to begin pursuant to Paragraph (2) of this
Subsection (c).
C) Life expectancy. Life expectancy as computed by use of the
Single Life Table in Section 1.401(a)(9)-9 of the Treasury regulations.
(7) Notwithstanding any other provision of this Plan, the maximum amount of
any mandatory distribution, as defined in Section 401(a)(31) of the Code,
payable under the Plan shall be $1000.
(8) Compensation Limitations Under 401(a)(17):
In addition to other applicable limitations set forth in the Plan, and
notwithstanding any other provision of the Plan to the contrary, the annual
compensation of each participant taken into account under the Plan shall not
exceed the EGTRRA annual compensation limit for limitation years beginning
after December 31, 2001. The EGTRRA annual compensation limited is
$200,000, as adjusted by the Commissioner for increases in the cost of living in
accordance with Section 401(a)(17)(B) of the Code. The cost-of-living
adjustment in effect for a calendar year applies to any period, not exceeding 12
months, over which Compensation is determined (determination period)
beginning in such calendar year. If a determination period consists of fewer than
37
12 months, the EGTRRA annual compensation limit will be multiplied by a
fraction, the numerator of which is the number of months in the determination
period, and the denominator of which is 12.
Any reference in the Plan to the limitation under Section 401(a)(17) of the Code
shall mean the EGTRRA annual compensation limit set forth in this provision.
(9) At no time prior to the satisfaction of all liabilities under the Plan with
respect to members and their spouses or beneficiaries, shall any part of the
corpus or income of the fund be used for or diverted to any purpose other than
for their exclusive benefit.
38
ARTICLE IX
TERMINATION OF THE PLAN
Termination of Plan and distribution of fund.
Upon termination of the Plan by the municipality for any reason, or upon written
notice by the municipality to the board of trustees that contributions under the Plan are
being permanently discontinued, the fund shall be apportioned and distributed in
accordance with the following procedures:
(1) The board of trustees shall determine the date of distribution and the asset
value to be distributed, after taking into account the expenses of such
distribution.
(2) 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 firefighter entitled to benefits under the Plan as
specified in subsection (3).
(3) The board of trustees shall 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 shall mean the
actuarially computed single-sum value of such retirement income, except that if
the method of distribution determined under subsection (2) involves the purchase
of an insure annuity, the amount required to provide the given retirement income
shall mean the single premium payable for such annuity.
(4) Apportionment shall first be made in respect of each retired firefighter
receiving a retirement income hereunder on such date, each person receiving a
retirement income on such date on account of a retired (but since deceased)
firefighter, and each firefighter who has, by such date, become eligible for normal
retirement but has not yet retired, in the amount required to provide such
retirement income, provided that, if such asset value is less than the aggregate of
such amounts, such amounts shall be proportionately reduced so that the
aggregate of such reduced amounts will be equal to such asset value.
(5) If there is any asset value remaining after the apportionment under
paragraph (4), apportionment shall next be made in respect of each firefighter in
the service of the municipality or special fire control district on such date who has
completed at least 10 years of Credited service, who has contributed to the
firefighters' pension trust fund for at least 10 years, and who is not entitled to an
apportionment under paragraph (a), in the amount required to provide the
actuarial equivalent of the accrued normal retirement income, based on the
firefighter's Credited service and earnings to such date, and each former
39
participant then entitled to a benefit under the provisions of §175.211 Florida
Statutes who 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 which he or she is entitled under §175.211 Florida Statutes;
provided that, if such remaining asset value is less than the aggregate of the
amounts apportioned hereunder, such latter amounts shall be proportionately
reduced so that the aggregate of such reduced amounts will be equal to such
remaining asset value.
(6) If there is any asset value after the apportionments under paragraphs (4)
and (5), apportionment shall lastly be made in respect of each firefighter in the
service of the municipality or special fire control district on such date who is not
entitled to an apportionment under paragraphs (a) and (b) in the amount equal to
the firefighter's total contributions to the Plan to date of termination; provided
that, if such remaining asset value is less than the aggregate of the amounts
apportioned hereunder, such latter amounts shall be proportionately reduced so
that the aggregate of such reduced amounts will be equal to such remaining
asset value.
(7) In the event that there is asset value remaining after the full apportionment
specified in paragraphs (4), (5), and (6), such excess shall be returned to the
municipality or special fire control district, less return to the state of the state's
I
contributions, provided that, if the excess is less tha n the tota co ntributions made
by the municipality or special fire control district and the state to date of
termination of the Plan, such excess shall be divided proportionately to the total
contributions made by the municipality or special fire control district and the state.
(8) The board of trustees shall distribute, in accordance with the manner of
distribution determined under subsection (2), the amounts apportioned under
subsection (3).
If, after a period of 24 months after the date on which the Plan terminated or the
date on which the board received written notice that the contributions thereunder were
being permanently discontinued, the municipality or special fire control district or the
board of trustees of the firefighters' pension trust fund affected has not complied with all
the provisions in this section, the division shall effect the termination of the fund in
accordance with this section.
ARTICLE X
ADMINISTRATION OF THE PLAN
SECTION 10.01—Board of Trustees
Make-up of board. The sole and exclusive administration of and responsibilities for the
proper operation of the pension Plan and for making effective the provisions of this
40
article are hereby vested in a board herein designated the Plan administrator, consisting
of five (5) trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal
residents of the City, who shall be appointed by the City commission, and two (2) of
whom shall be full-time firefighter members of the Plan, who shall be elected by a
majority of the firefighters who are members of the Plan. The fifth trustee shall be
chosen for a four-year term by a majority of the previous four (4) trustees as provided
for herein, and such person's name shall be submitted to the City commission. Upon
receipt of the fifth person's name, the City commission shall, as a ministerial duty,
appoint such person to the board as its fifth trustee. The fifth trustee shall have the
same rights as each of the other four (4) trustees appointed or elected as herein
provided and shall serve a four-year term unless the office is sooner vacated and may
succeed himself in office. Each resident trustee shall serve as trustee for a period of two
(2) years, unless sooner replaced by the City commission at whose pleasure each
trustee shall serve, and may succeed himself as a trustee without limitation. Each
firefighter trustee shall serve as trustee for a period of two (2) years, unless he sooner
leaves the employment of the City as a firefighter or otherwise vacates his office as
trustee, whereupon a successor shall be chosen in the same manner as the departing
trustee. Each firefighter may succeed himself in office.
Terms and election. The regular term of office shall be two (2) years. Employee
members shall be elected in the following manner:
(1) No less than thirty (30) days before the expiration of a regular term or
immediately upon notice of a vacancy on the board, the City clerk will notify all
actively employed members that an employee member must be elected to the
board and request nominations. Such notification will be in writing and will
include a nomination form and a list of all employees eligible for nomination.
Employees eligible for nomination will include all actively employed members.
Nominations will be forwarded to the City clerk before the time and date specified
on the nomination form.
(2) If one (1) nominee receives a minimum of fifty-one (51) percent of the
nominations, that nominee shall be declared elected and shall take office
immediately upon commencement of the term of office for which elected.
(3) If no nominee receives fifty-one (51) percent of all nominations, the City
clerk will prepare an election ballot listing the nominees receiving the three (3)
largest number of nominations and forward a ballot to all actively employed
members. Election ballots shall be returned to the City clerk before the time and
date specified on the ballot. The nominee receiving the highest number of votes
for office shall be declared elected and shall take office immediately upon
commencement of the term of office for which elected.
(4) If two (2) or more nominees tie for the highest number of votes, a runoff
ballot shall be prepared and a runoff election shall be conducted.
41
(5) An election shall be held not more than thirty (30) and not less than ten
(10) days prior to the commencement of the term for which a board member is to
be elected. The City shall establish and administer the nominating and election
procedure for each election.
Vacancies. If a vacancy occurs in the office of trustee, the vacancy shall be filled for
the unexpired term in the same manner as the office was previously filled.
Resignation. The trustee may resign at any time as a trustee of the Plan by giving thirty
(30) days written notice in advance to the City and to the board.
Removal. The board, upon the vote of a majority of its members, may submit to the
City commission its recommendation that the City commission remove any appointed
trustee who neglects the duties of his office. The City commission may, by majority vote,
thereafter remove such member as a trustee.
Expenses. The trustees shall serve without compensation, but they may be
reimbursed from the fund for all necessary expenses which they may actually expend
through service on the board, as provided by law.
Oath of office. Each trustee shall, within ten (10) days after his appointment or
election, take an oath of office before the City clerk, that he will diligently and honestly
administer the affairs of the board, and that he will not knowingly violate or willingly
permit to be violated any of the provisions of the law applicable to the pension Plan.
Such oath shall be subscribed to by the members making it and certified by the clerk
and filed in the office of the City clerk.
Officers. The board shall elect annually by majority vote from among its members a
chairman, and secretary.
Voting. Each trustee shall be entitled to one (1) vote on the board. Three (3)
affirmative votes shall be necessary for a decision by the trustees at any meeting o f the
board. The chairman shall have the right to one (1) vote only.
Rules. Subject to the limitations of this section, the board shall from time to time
establish uniform rules and regulations for the administration of funds created by this
Plan and for transaction of its business.
Services. The board shall engage such actuarial, accounting and other services as
shall be required to transact the business of the retirement Plan. The compensation of
all persons engaged by the board and all other expenses of the board necessary for the
operation of the retirement Plan shall be paid from the fund at such rates and in such
amounts as the board shall agree. Funds may be disbursed by the City finance
department or other disbursing agent as determined by the board, but only upon written
authorization by the board.
42
Professionals. The board may employ and pay from the fund reasonable
compensation to agents, attorneys, accountants and other persons to advise the board
as in its opinion may be necessary. The board may delegate to any agent, attorney,
accountant or other person selected by it any non-trustee power or duty vested in it by
the Plan, and the board may act or refrain from acting on the advice or opinion of any
agent, attorney, accountant or other person so selected.
Powers and duties. The powers, duties and responsibilities of the board shall include
the power and duty to:
(1) Construe the provisions of the Plan and determine all questions arising
thereunder;
(2) Determine all questions relating to eligibility and participation;
(3) Determine and certify the amount of all retirement allowances or other
benefits hereunder;
(4) Establish uniform rules and procedures to be followed for administrative
purposes, benefit applications and all matters required to administer the
Plan;
(5) Distribute to members at regular intervals information concerning the Plan;
(6) Receive and process all applications for participation and benefits;
(7) Authorize all payments whatsoever from the fund, and to notify the
disbursing agent, in writing, of approved benefit payments and other
expenditures arising through operation of the Plan and fund;
(8) Have performed actuarial studies and annual actuarial valuations and
make recommendations regarding any and all changes in the provisions of
the Plan;
(9) Select a secretary, who shall keep a complete minute book of the actions,
proceedings, or hearings of the board and who shall keep a record of all
persons receiving pension payments, noting the time of commencement
and cessation thereof. Minutes prepared by the secretary shall be filed
with the City clerk and made part of the official records of the City;
(10) Enforce the terms of the Plan and the rules and regulations it adopts;
(11) Direct the crediting and distribution of the trust;
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(12) Review and render decisions respecting a claim for (or denial of a claim
for) a benefit under the Plan;
(13) Furnish the City with information which the City may require for tax or
other purposes;
(14) Engage the services of an investment manager or, each of whom shall
have such power and authority to manage, acquire or dispose of any Plan
asset under its control as authorized by the board;
(15) Establish and maintain a funding standard account and to make credits
and charges to the account to the extent required by and in accordance
with the provisions of the pension Plan;
(16) Perform such other duties as are specified in this document; and
Manner of action. The board shall exercise all of its powers, duties and discretion
under the Plan in a uniform and nondiscriminatory manner.
Legal entity. The board represents a legal entity with, in addition to other powers and
responsibilities contained herein, the power to bring and defend lawsuits of every kind,
nature, and description.
Meetings. The board shall hold meetings, at least quarterly, determining the notice,
place and time of each. A majority of its members shall constitute a quorum.
Recusal. A trustee shall have the right to recuse himself or herself from voting as
the result of a conflict of interest provided that the trustee complies with the provisions
of Florida Statute §112.3143.
Authorized representative. The board may authorize any one (1) of its members, to sign
on its behalf any notices, directions, applications, certificates, consents, approvals,
waivers, letters or other documents. The board must evidence this authority by an
instrument signed by all members and filed with the trustee.
Third party. No person dealing with the board shall be obligated to see to the proper
application of any money paid or property delivered to the board, or to inquire whether
the board has acted pursuant to any of the terms of the Plan. Each person dealing with
the board may act upon any notice, request or representation in writing by the board, or
by the board's duly authorized agent, and shall not be liable to any person whomsoever
in so doing. The certificate of the board that it is acting in accordance with the Plan shall
be conclusive in favor of any person relying on the certificate.
44
Member records. The board shall keep such records and shall prepare such reports
concerning members' accounts as required. Upon a member's written request, the
board shall furnish the member the information requested.
Annual review. The board shall review, not less often than annually, all pertinent
employee information and Plan data in order to establish the funding policy of the Plan
and to determine the appropriate methods of carrying out the Plan's objectives. The
board shall communicate periodically, as it deems appropriate, to any Plan investment
manager the Plan's short-term and long-term financial needs so investment policy can
be coordinated with Plan financial requirements.
Parties to litigation. Except as otherwise provided by the act, only the City and the
board shall be necessary parties to any court proceeding involving the Plan. No
member, beneficiary or other person having an interest in the fund shall be entitled to
any notice of process unless required by the Act.
SECTION 10.02 Finances and fund management.
Establishment and operation of fund.
As part of the Plan, there exists the fund, into which shall be deposited all of the
contributions and assets whatsoever attributable to the Plan, which are hereby retained
in this fund.
The actual custody and supervision of the fund (and assets thereof) shall be
vested in the board. Payment of benefits and disbursements from the fund shall be
made by the disbursing agent designated by the board but only upon written
authorization from the board.
All funds of the Plan may be deposited by the board with the finance director of
the City, acting in a ministerial capacity only, who shall be liable in the same manner
and to the same extent as he or she is liable for the safekeeping of funds for the City.
However, any funds so deposited with the finance director of the City shall be kept in a
separate fund by the finance director or clearly identified as such funds of the Plan. In
lieu thereof, the board shall deposit the funds of the Plan in a qualified public depository
as defined in F.S. §280.02, which depository with regard to such funds shall conform to
and be bound by all of the provisions of F.S. Ch. 280, as it may be amended from time
to time. In order to fulfill its investment responsibilities as set forth herein, the board may
retain the services of a custodian bank, an investment advisor registered under
Investment Advisors Act of 1940 or otherwise exempt from such required registration,
an insurance company, or a combination of these, for the purposes of investment
decisions and management. Such investment manager shall have discretion, subject to
any guidelines as prescribed by the board, in the investment of all fund assets.
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All funds and securities of the Plan may be commingled in the fund, provided that
accurate records are maintained at all times reflecting the financial composition of the
fund, including accurate current accounts and entries as regards the following:
(1) Current amounts of accumulated contributions of members on both an
individual and aggregate account basis;
(2) Receipts and disbursements;
(3) Benefit payments;
(4) Current amounts clearly reflecting all monies, funds and assets
whatsoever attributable to contributions and deposits from the City;
(5) All interest, dividends and gains (or losses) whatsoever; and
(6) Such other entries as may be properly required so as to reflect a clear and
complete financial report of the fund.
An audit shall be performed annually by a certified public accountant chosen by
the board for the most recent fiscal year of the City showing a detailed listing of assets
and a statement of all income and disbursements during the year. Such income and
disbursements must be reconciled with the assets at the beginning and end of the year.
Such report shall reflect a complete evaluation of assets on both a cost and market
basis, as well as other items normally included in a certified audit.
The board shall have the following investment powers and authority:
(1) The board shall be vested with full legal title to said fund, subject,
however, in any event to the authority and power of the City commission to
amend or terminate this fund, provided that no amendment or fund termination
shall ever result in the use of any assets of this fund except for the payment of
regular expenses and benefits under the Plan, except as otherwise provided
herein. All contributions from time to time paid into the fund, and the income
thereof, without distinction between principal and income, shall be held and
administered by the board or its agent in the fund and the board shall not be
required to segregate or invest separately any portion of the fund.
(2) All monies paid into or held in the fund shall be invested and reinvested by
the board and the investment of all or any part of such funds shall be limited to:
A. Foreign securities in an amount not to exceed twenty-five (25)
percent of the assets of the fund at market value.
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B. Notwithstanding any limitation in prior City ordinances to the
contrary, pursuant to §175.071(1), Fla. Stat., the City Council has passed
an ordinance granting the Board a variance so that all monies paid into or
held in the Fund may be invested and reinvested in such securities,
investment vehicles or property wherever situated and of whatever kind,
as shall be approved by the Board, including but not limited to common or
preferred stocks, bonds, and other evidences of indebtedness or
ownership.
(3) The board shall not invest more than five (5) percent of its assets in the
common stock or capital stock of any one (1) issuing company, nor shall the
aggregate investment in any one (1) issuing company exceed five (5) percent of
the outstanding capital stock of that company; nor shall the aggregate of its
investments in equities (common stock or capital stock) at cost exceed seventy
(70) percent of the Pension Fund's assets and the aggregate of the Pension
Fund's investments in fixed income securities at cost shall not be less than 30%
of the Pension Fund's assets.
(4) The board may retain in cash and keep unproductive of income such
amount of the fund as it may deem advisable, having regard for the cash
requirements of the Plan.
(5) The board 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, or it may retain them unregistered and in form
permitting transferability, but the books and records shall at all times show that all
investments are part of the fund.
(6) The board is empowered, but is not required, to vote upon any stocks,
bonds, or securities of any corporation, association, or trust and to give general
or specific proxies or powers of attorney with or without power of substitution; to
participate in mergers, reorganizations, recapitalizations, consolidations, and
similar transactions with respect to such securities; to deposit such stock or other
securities in any voting trust or any protective or like committee with the trustees
or with depositories designated thereby; to amortize or fail to amortize any part or
all of the premium or discount resulting from the acquisition or disposition of
assets; and generally to exercise any of the powers of an owner with respect to
stocks, bonds, or other investments comprising the fund which it may deem to be
in the best interest of the fund to exercise.
(7) The board shall not be required to make any inventory or appraisal or
report to any court, nor to secure any order of court for the exercise of any power
contained herein.
47
(8) Where any action which the board is required to take or any duty or
function which it is required to perform either under the terms herein or under the
general law applicable to it as trustee under this article, can reasonably be taken
or performed only after receipt by it from a member, the City, or any other entity,
of specific information, certification, direction or instructions, the board shall be
free of liability in failing to take such action or perform such duty or function until
such information, certification, direction or instruction has been received by it.
(9) Any overpayment or underpayment from the fund to a member, retiree or
beneficiary caused by errors of computation shall be adjusted with interest at a
rate per annum approved by the board in such a manner that the actuarial
equivalent of the benefit to which the member, retiree or beneficiary was correctly
entitled to, shall be paid. Overpayment shall be charged against payments next
succeeding the correction or collected in another manner if prudent.
Underpayment shall be made up from the fund in a prudent manner.
(10) The board shall sustain no liability whatsoever for the sufficiency of the
fund to meet the payments and benefits herein provided for.
(11) In any application to or proceeding or action in the courts, any judgment
entered in such a proceeding or action shall be conclusive upon all persons.
(12) Any of the foregoing powers and functions reposed in the board may be
performed or carried out by the board through duly authorized agents, provided
that the board at all times maintains continuous supervision over the acts of any
such agent; provided further, that legal title to said fund shall always remain in
the board.
The board shall not have any obligation or responsibility with respect to any
action required by the Plan to be taken by the City or, any member, nor shall the board
be required to collect any contribution required under the Plan, or determine the
correctness of the amount of any contribution. The board need not inquire into or be
responsible for any action or failure to act on the part of the others.
The board and the City in no way guarantee the trust fund from loss or
depreciation. The City does not guarantee the payment of any money which may be or
becomes due to any person from the fund. The liability of the board to make any
payment from the fund at any time and all times is limited to the then available assets of
the fund.
The board shall not be liable for the acts or omissions of any investment
manager or managers the board may appoint, nor shall the board be under any
obligation to invest or otherwise manage any asset of the Plan which is subject to the
management of a properly appointed investment manager. The board and any properly
appointed investment manager may execute a letter of agreement as a part of this Plan
48
delineating the duties, responsibilities and liabilities of the investment manager with
respect to any part of the trust fund under the control of the investment manager.
At least once every three (3) years, the board shall retain an independent
consultant professionally qualified to evaluate the performance of professional money
managers. The independent consultant shall make recommendations to the board
regarding the selection of money managers for the next investment term. These
recommendations shall be considered by the board at its next regularly scheduled
meeting. The date, time, place, and subject of this meeting shall be advertised in a
newspaper of general circulation in the municipality at least ten (10) days prior to the
date of the hearings.
The board shall identify and publicly report any direct or indirect holdings it may
have in any scrutinized company, as defined in Florida Statutes, §215.473, and proceed
to sell, redeem, divest, or withdraw all publicly traded securities it may have in such
company beginning January 1, 2010 and shall thereafter be prohibited from purchasing
or holding such securities. The divestiture of any such security must be completed by
September 30, 2010. In accordance with Ch. 2009-97, Laws of Florida, no person may
bring any civil, criminal, or administrative action against the board or any employee,
officer, director, or advisor of such board based upon the divestiture of any security
pursuant to this paragraph.
The board of trustees shall, upon written request by a retired firefighter of the
Plan, or the retiree's beneficiary, authorize the Plan to withhold from the monthly
retirement payment those funds that are necessary to pay for the benefits being
received through the City of Edgewater, to pay the certified bargaining agent of the City
of Edgewater fire department, and to make payments for child support or alimony.
SECTION 10.03 — Records.
Employment records required to be kept by secretary of board of trustees.
The secretary of the board of trustees shall keep a record of all persons receiving
retirement payments under the provisions of this chapter, in which shall be noted the
time when the pension is allowed and when the pension shall cease to be paid. In this
record, the secretary shall keep a list of all firefighters employed by the municipality or
special fire control district. The record shall be kept in such manner as to show the
name, address, and time of employment of such firefighters and when they cases to be
employed by the municipality or special fire control district.
Annual report to Division of Retirement; actuarial reports.
(1) Each year, the chair or secretary of the board of trustees shall file a report
with the division which contains:
49
(A) A statement of whether in fact the municipality or special fire control
district is within the provisions of §175.041.
(B) An independent audit by a certified public accountant if the fund
has $100,000 or more in assets, or a certified statement of
accounting if the fund has less than $100,000 or more in assets, for
the most recent fiscal year of the municipality or special fire control
district, showing a detailed listing of assets and methods used to
value them and a statement of all income and disbursements
during the year. Such income and disbursements shall be
reconciled with the assets at the beginning of and end of the year.
(C) A statistical exhibit showing the total number of firefighters on the
force, the number included in the retirement Plan and the number
ineligible, classified according to the reason for their being
ineligible, and the number of disabled firefighters and retired
firefighters and their beneficiaries receiving pension payments and
the amounts of annual retirement income or pension payments
being received by them.
(D) A statement of the amount the municipality or other income source,
has contributed to the retirement fund for the most recent fiscal
year and the amount the municipality will contribute to the
retirement fund during its current fiscal year.
(E) If any benefits are insured with a commercial insurance company,
the report should include a statement of the relationship of the
insured benefits to the benefits provided by this chapter as well as
the name of the insurer and information about the basis of premium
rates, mortality table, interest rates, and method used in valuing
retirement benefits.
(2) By February 1 of each triennial year, beginning with February 1, 1986, and
at least every 3 years commencing from the last actuarial report of the Plan or
Plan or from February 1, 1987, if no actuarial report has been issued within the 3-
year period prior to February 1, 986, the chair shall report to the division such
data that it needs to complete an actuarial valuation of each fund. The forms for
each municipality shall be supplied by the division. The expense of this actuarial
valuation shall be borne by the firefighters' pension trust fund.
SECTION 10.04 — Rights to Plan Assets.
An Employee shall not have any right to or interest in any assets of the Plan
upon termination of employment or otherwise except as specifically provided under this
Plan, and then only to the extent of the benefits payable to such Employee according to
the Plan provisions.
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SECTION 10.05 — Beneficiary.
Beneficiaries.
(1) Each firefighter may, on a form provided for that purpose, 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 his or her death; and each
designation may be revoked by such firefighter by signing and filing with the board of
trustees a new designation-of-beneficiary form.
(2) If a deceased firefighter fails to name a beneficiary in the manner
prescribed in subsection (1), or if the beneficiary (or beneficiaries) named by a
deceased firefighter predecease the firefighter, the death benefit, if any, which may be
payable under the Plan with respect to such deceased firefighter may be paid, in the
discretion of the board of trustees, either to:
(A) The spouse or dependent children of the firefighter; or
(B) The dependent living parents of the firefighter.
(3) Notwithstanding any other provision of law to the contrary, the surviving
spouse of any pension participant member killed in the line of duty shall not lose
survivor retirement benefits if the spouse remarries. The surviving spouse of such
deceased member whose benefit terminated because of remarriage shall have the
benefit reinstated as of July 1, 1994, at an amount that would have been payable had
such benefit not been terminated.
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ARTICLE XI
GENERAL PROVISIONS
SECTION 11.01 —Amendments.
Adoption or Revision of a Local Law Plan - No retirement Plan or amendment to
a retirement Plan shall be proposed for adoption unless the proposed Plan or
amendment contains an actuarial estimate of the costs involved. No such proposed
Plan or proposed Plan change shall be adopted without the approval of the municipality.
Copies of the proposed Plan or proposed Plan change and the actuarial impact
statement of the proposed Plan or proposed Plan change shall be furnished to the
division prior to the last public hearing thereon. Such statement shall also indicate
whether the proposed Plan or proposed Plan change is in compliance with Section 14,
Art. X of the State Constitution and those provisions of part VII of Chapter 112.
Notwithstanding any other provision, only those local law Plans created by special act of
legislation prior to May 25, 1939, shall be deemed to meet the minimum benefits and
minimum standards only in this chapter.
The retirement Plan setting forth the benefits and the trust agreement, if any,
covering the duties and responsibilities of the trustees and the regulations of the
investment of funds must be in writing, and copies thereof must be made available to
the participants and to the general public.
SECTION 11.02 — Direct Rollovers.
(1) Notwithstanding any provision of the Plan to the contrary that would
otherwise limit a distributee's election under this Section, a distribute may elect, at the
time and in the manner prescribed by the Administrator, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement Plan specified by the
distribute in a direct rollover
(2) Definitions
The following definitions apply to this Section:
(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 distribution does not include:
(i) any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or
life expectancy) of the distribute or the joint lives (or joint life
expectancies) of the distribute and the distributee's designated
beneficiary, or for a specified period of 10 years or more;
(ii) any distribution to the extent such distribution is required under
Section 401(a)(9) of the Code;
52
(iii) the portion of any distribution that is a hardship distribution
described in Section 401(k)(2)(B)(i)(IV) of the Code; and
(iv) the portion of any distribution that is not includible in gross income
(determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities), provided that a
portion of a distribution shall not fail to be an eligible rollover
distribution merely because the portion consists of after-tax
Employee contributions which are not includible in gross income.
However, such portion may be transferred only to an individual
retirement account or annuity described in Section 408(a) or (b) of
the Code, or to a qualified defined contribution Plan described in
Section 401(a) or 403(a) of the Code that agrees to separately
account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible in
gross income and the portion of such distribution which is not so
includible.
(B) Eligible retirement Plan: An eligible retirement Plan is an individual
retirement account described in Section 408(a) of the Code, an individual
retirement annuity described in Section 408(b) of the Code, an annuity Plan
described in Section 403(a) of the Code, an annuity contract described in Section
403(b) of the Code, a qualified trust described in Section 401(a) of the Code, an
eligible Plan under Section 457(b) of the Code which is maintained by a state,
political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state and which agrees to separately account for
amounts transferred into such Plan from this Plan, or a Roth IRA (subject to the
limitations of Code Section 408A(c)(3)) that accepts the distributee's eligible
rollover distribution.
(C) Distributee: A distribute 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 the alternate
payee under a qualified domestic relations order, as defined in Section 414(p) of
the Code, are distributes with regard to the interest of the spouse or former
spouse. Furthermore, effective January 1, 2007, a surviving designated
beneficiary as defined in Section 401(a)(9)(E) of the Code who is not the
surviving spouse and who elects a direct rollover to an individual retirement
account described in Section 408(a) of the Code or an individual retirement
annuity described in Section 408(b) of the Code shall be considered a
distributee.
(D) Direct rollover: A direct rollover is a payment by the Plan to the
eligible retirement Plan specified by the distributee.
53
By executing this Plan, the Employer Primary Employer acknowledges having
counseled to the extent necessary with selected legal and tax advisors regarding the
Plan's legal and tax implications.
Executed this s teP'c�
day of ' '-LemD
2014.
CITY OF DGEW TE ,
FLORIDA
13y:di/47
- r
Title
ACKNOWLEDGED as PLAN ADMINISTRATOR this JO day of oc.-16 /2. ,
2014. ;� * �
By: ?a, "'Parr
Title
• 54
•