2016-O-33 ORDINANCE NO.2016-0-33
AN ORDINANCE OF THE CITY COUNCIL OF
EDGEWATER, FLORIDA, AMENDING ORDINANCE NO.
2014-0-20; PROVIDING FOR THE PURCHASE OF PAST
CREDITED SERVICE BY INSTALLMENT PAYMENTS
FOR THE FIREFIGHTERS RETIREMENT/PENSION
PLAN; PROVIDING FOR CONFLICTING PROVISIONS,
SEVERABILITY AND APPLICABILITY; PROVIDING FOR
AN EFFECTIVE DATE AND ADOPTION.
WHEREAS,the City Council of the City of Edgewater, Florida, has made the following
determinations:
WHEREAS, the Board of Trustees of the City of Edgewater, Florida Firefighters'
Retirement Plan recommend allowing the purchase of past credited service by installment
payment; and
WHEREAS, the City Council has reviewed an actuarial impact statement setting forth
the actuarial impact of this ordinance amendment; and
WHEREAS, the City Council has determined that this ordinance amendment is in the
public interest;
NOW, THEREFORE, BE IT ENACTED by the People of the City of Edgewater,
Florida:
PART A. Section 1.02 of the City of Edgewater, Florida Firefighters' Retirement
Plan shall be amended as follows:
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 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
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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 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
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(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.
(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
prior service in tthe
such h armedforces 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.
i, Payment for said purchase of Credited service may be
made as a lump sum, by direct in-service transfer into the
pension fund from any deferred compensation account
pursuant to Section 457(e)(17) of the Code, or by
installments not to exceed five (5) years, provided that all
installment payments are completed prior to retirement or
termination.
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ii. Installment payments shall require interest at the actuarial
rate of return at the time of purchase, provided that the
Firefighter shall pay for all actuarial calculations after the
first inquiry. Such purchase of Credited Service shall take
effect upon vesting. If a member terminates service prior to
vesting and receives a refund of employee contributions,
the amount paid for Credited Service shall also be
refunded.
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 F.S. § 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 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
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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, Florida Firefighters' Retirement Plan and
Trust as contained herein and all amendments thereto.
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 s. 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.
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 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 firefighter, provide that when calculating retirement
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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(0(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.
PART B. 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 C. 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 D. EFFECTIVE DATE.
This ordinance shall take effect upon adoption.
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PART F. ADOPTION.
After Motion to approve by Councilman Conroy, with Second by Councilwoman Power,
the vote on the first reading of this ordinance held on May 2,2016,was as follows:
AYE NAY
Mayor Mike Ignasiak X
Councilwoman Christine Power X
Councilwoman Gigi Bennington ABSENT
Councilman Dan Blazi X
Councilman Gary T. Conroy X
After Motion to approve by ea,e 2G//l?7d'Y) Cake ) with
Second by CNA v►l't/t.1)0)- et ✓1_ sO" r) cJP�/� , the vote on
the second reading/public hearing of this ordinance held on June 6,2016 was as follows:
AYE NAY
Mayor Mike Ignasiak
Councilwoman Christine Power
Councilwoman Gigi Bennington _ ✓
Councilman Dan Blazi
Councilman Gary T. Conroy
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PASSED AND DULY ADOPTED this 6th day of June, 2016.
ATTEST: CITY COUNCIL OF THE
CITY OF EDGEWATER,FLORIDA
7A/� By:
,%4 / /J #
Mitch Hon er Mike Ignasia •
Deputy City Clerk Mayor
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 6th day of
legality by: Aaron R. Wolfe,Esquire June,2016 under Agenda Item No. 8 0 .
City Attorney
Doran, Sims,Wolfe&Ciocchetti
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