2020-O-32 - General Employee Retirement Plan AmendmentORDINANCE NO. 2020-0-32
AN ORDINANCE OF THE CITY OF EDGEWATER, FLORIDA, AMENDING
THE CITY OF EDGEWATER GENERAL EMPLOYEES' RETIREMENT
PLAN BY MODIFYING ARTICLE IV (RETIREMENT BENEFITS), BY
AMENDING SUBSECTION (b) OF SECTION 4.04 (BENEFITS UPON
EMPLOYMENT AFTER RETIREMENT DATE); BY MODIFYING ARTICLE V
(OTHER BENEFITS), BY AMENDING SUBSECTION (a) OF SECTION
5.01 (DEATH BENEFITS); BY MODIFYING ARTICLE VII (REQUIRED
MINIMUM DISTRIBUTIONS), BY AMENDING SECTION 7.02
(DEFINITIONS); BY MODIFYING ARTICLE VII (REQUIRED MINIMUM
DISTRIBUTIONS), BY AMENDING SUBSECTION (b) of SECTION 7.03
(REQUIRED MINIMUM DISTRIBUTIONS); BY MODIFYING ARTICLE VII
(REQUIRED MINIMUM DISTRIBUTIONS), BY AMENDING SUBSECTION
(d) OF SECTION 7.03 (REQUIRED MINIMUM DISTRIBUTIONS); BY
MODIFYING ARTICLE X (GENERAL PROVISIONS), BY AMENDING
SECTION 10.09 (SMALL AMOUNTS); BY MODIFYING ARTICLE X
(GENERAL PROVISIONS), BY ADDING A NEW SECTION 10.12 (IRS
COMPLIANCE); PROVIDING FOR CONFLICTING PROVISIONS,
SEVERABILITY AND APPLICABILITY; PROVIDING FOR CODIFICATION,
AN EFFECTIVE DATE AND ADOPTION
WHEREAS, the City Council of the City of Edgewater, Florida has made the
following determinations:
1. The General Employees' Pension Board recommended a modification to the
Plan Document during their March 9, 2020 meeting. The Board wishes to
amend the Plan Document as set forth herein.
NOW, THEREFORE, BE IT ENACTED by the People of the City of Edgewater,
Florida:
PART A. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE IV (RETIREMENT
BENEFITS), BY AMENDING SUBSECTION (b) OF SECTION 4.04
(BENEFITS UPON EMPLOYMENT AFTER RETIREMENT DATE) OF THE
CODE OF ORDINANCES FOR THE CITY OF EDGEWATER, FLORIDA TO
READ AS FOLLOWS:
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SECTION 4.04 --BENEFITS UPON EMPLOYMENT AFTER RETIREMENT DATE.
(b) For a Participant whose Normal Retirement Date occurs on or after October 1,
2007, such Participant may elect to have the provisions of (1), (2), or (3) below
applied to him:
(1) The Participant may cease to be an Employee and begin receiving his
monthly retirement payments from the Plan.
(2) The Participant may continue to work for the Employer after Normal
Retirement Date and continue accruing benefits according to the ACCRUED
BENEFIT SECTION of this article. The Participant shall continue to make
Required Contributions according to the REQUIRED CONTRIBUTIONS BY
PARTICIPANTS SECTION of Article III, and his retirement benefits will not
begin until he has a Severance from Employment.
(3) The Participant may elect to begin receiving retirement benefits on his
Normal Retirement Date and continue to work for the Employer. This receipt
of retirement benefits will be considered an In -Service Distribution
under Section 401(a)(36) of the Code and the rep lations thereunder.
Under this subsection (3), the following shall apply:
(1) he will no longer be required to make Required Contributions
to the Plan;
(ii) he may elect (A) or (B) below:
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(A) become a participant in the City of Edgewater Money Purchase
Plan; or
(B) any other option approved by the Employer.
Notwithstanding, the provisions of (a) and (b) above shall not apply to a Participant
who had a Severance from Employment before October 1, 2007, and whose
retirement benefits have already begun. Any monthly retirement benefit payment
such Participant is receiving shall continue unchanged. If any such Participant
continues to be or again becomes an Active Participant after his Retirement Date,
his benefits under the Plan shall not be duplicated. The retirement benefit from the
Accrued Benefit resulting from any such additional period of Accrual Service shall be
payable according to the provisions of this article and Article VI. Any death
benefit from the Accrued Benefit he accrued during his latest period as an Active
Participant shall be determined as provided in the DEATH BENEFITS SECTION of
Article V.
PART B. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE V (OTHER BENEFITS), BY
AMENDING SUBSECTION (a) OF SECTION 5.01 (DEATH BENEFITS) OF
THE CODE OF ORDINANCES FOR THE CITY OF EDGEWATER,
FLORIDA TO READ AS FOLLOWS:
SECTION 5.01—DEATH BENEFITS.
If a Participant dies before his Annuity Starting Date, death benefits shall be determined
under subsections (a) and (b) below. The distribution of death benefits shall be subject to
the distribution of benefits provisions of Article VI and the provisions of the SMALL
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AMOUNTS SECTION of Article X.
(a) Preretirement Survivor Annuity:
A Preretirement Survivor Annuity shall be payable if the following requirements are
met:
(1) The Participant is survived by a spouse to whom he was continuously
married throughout the one-year period ending on the date he dies.
(2) The Participant's Vesting Percentage or Required Contribution Account on
the date of his death was greater than zero.
If the requirements above are met on the date the Participant dies, a Preretirement
Survivor Annuity shall be payable on the earliest date on or after the date of his
death on which he could have elected to retire if he had a Severance from
Employment on the date of his death (the date he last had a Severance from
Employment, if earlier) and survived to retire. The spouse may elect to start benefits
on any later first day of the month. If the spouse chooses to start benefits later, the
Preretirement Survivor Annuity shall be the Actuarial Equivalent of the Preretirement
Survivor Annuity that would have been payable on the date the Preretirement
Survivor Annuity would otherwise have been payable. Benefits must start by the
date the Participant would have been age ZZ -Cage -70 Y:, if they reached that age
on or before December 31 20201. If the spouse dies before the Preretirement
Survivor Annuity starts, the only death benefit payable from the Participant's
Accrued Benefit is that provided in (b) below.
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If a single sum death benefit would otherwise be payable in (b) below, the
monthly benefit payable to the spouse under the Preretirement Survivor Annuity on
the date the Preretirement Survivor Annuity first becomes payable shall not be less
than the Preretirement Survivor Annuity that is the Actuarial Equivalent of the single
sum death benefit on that date.
If the Participant waives the Preretirement Survivor Annuity, according to the
provisions of the ELECTION PROCEDURES SECTION of Article VI, by electing to
have the single sum death benefit in (b) below paid to his Beneficiary after the
requirements above are met or if the spouse waives the Preretirement Survivor
Annuity, according to the ELECTION PROCEDURES SECTION of Article VI, by
electing to have the single sum death benefit in (b) below paid to himself as
Beneficiary after the requirements above are met, the Preretirement Survivor
Annuity on the date the Preretirement Survivor Annuity first becomes payable shall
be reduced. The amount of the reduction shall be equal to the Preretirement
Survivor Annuity that is the Actuarial Equivalent of what would have been the single
sum death benefit on that date.
PART C. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE VII (REQUIRED MINIMUM
DISTRIBUTIONS), BY AMENDING SECTION 7.02 (DEFINITIONS) OF THE
CODE OF ORDINANCES FOR THE CITY OF EDGEWATER, FLORIDA TO
READ AS FOLLOWS:
SECTION 7.02 --DEFINITIONS.
For purposes of this article, the following terms are defined:
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Actuarial Gain means the difference between an amount determined using the
actuarial assumptions (i.e., investment return, mortality, expense, and other similar
assumptions) used to calculate the initial payments before adjustment for any
increases and the amount determined under the actual experience with respect to
those factors. Actuarial Gain also includes differences between the amount
determined using actuarial assumptions when an annuity was purchased or
commenced and such amount determined using actuarial assumptions used in
calculating payments at the time the Actuarial Gain is determined.
Designated Beneficiary means the individual who is designated by the Participant
(or the Participant's surviving spouse) as the Beneficiary of the Participant's interest
under the Plan and who is the designated beneficiary under Code Section 401
(a)(9) and section 1.401 (a)(9)-4 of the regulations.
Distribution Calendar Year means 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 that 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 under (b)(2)
of the REQUIRED MINIMUM DISTRIBUTIONS SECTION of this article.
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Eligible Cost -of -living Index means an index described in paragraph (b)(2), (b)(3).
or (b)(4) in O&A-14 in section 1.401 (a)(9)-6 of the regulations.
Life Expectancy means life expectancy as computed by use of the Single Life
Table in O&A-1 in section 1.401 (a)(9)-9 of the regulations.
Required Beginning Date means, for a Participant, April 1 of the calendar year
following the later of the calendar year in which he attains age 72 (age 70 1 /2 if
they reached that age on or before December 31. 20201 or the calendar year in
which he retires.
PART D. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE VII (REQUIRED MINIMUM
DISTRIBUTIONS), BY AMENDING SUBSECTION (b) of SECTION 7.03
(REQUIRED MINIMUM DISTRIBUTIONS) OF THE CODE OF
ORDINANCES FOR THE CITY OF EDGEWATER, FLORIDA TO READ AS
FOLLOWS:
SECTION 7.03 --REQUIRED MINIMUM DISTRIBUTIONS.
(b) Time and Manner of Distribution.
(1) Required Beginning Date. The Participant's entire interest will be distributed,
or begin to be distributed, no later than the Participant's Required Beginning
Date.
(2) Death of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant's entire interest will be distributed, or begin
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to be distributed, no later than as follows:
(1) 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 died, or by December 31 of the
calendar year in which the Participant would have attained age 72
(age 70 1 /2 if they reached that ace on or before December 31
20201, if later, except to the extent that an election is made to receive
distributions in accordance with the 5 -year rule under (1) below. Under
the 5 -year rule, the Participant's entire interest will be distributed to
the Designated Beneficiary by December 31 of the calendar year
containing the fifth anniversary of the Participants death.
(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,
except to the extent that an election is made to receive distributions in
accordance with the 5 -year rule under (f) below. Under the 5 -year
rule, the Participant's entire interest will be distributed to the
Designated Beneficiary by December 31 of the calendar year
containing the fifth anniversary of the Participant's death.
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(iii) If there is no Designated Beneficiary as of September 30 of the year
following the year of the Participant's death, the Participants entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant's death.
(iv) If the Participant's surviving spouse is the Participants sole
Designated Beneficiary and the surviving spouse dies after the
Participant but before distributions to the surviving spouse are
required to begin, this (b)(2), other than (b)(2)(I), will apply as if the
surviving spouse were the Participant.
For purposes of this (b)(2) and (e) below, unless (b)(2)(iv) above applies,
distributions are considered to begin on the Participants Required Beginning
Date. If (b)(2)(iv) above applies, distributions are considered to begin on the
date distributions are required to begin to the surviving spouse under (b)(2)(1)
above. If distributions under an annuity meeting the requirements of this
article commence to the Participant before the Participants Required
Beginning Date (or to the Participants surviving spouse before the date
distributions are required to begin to the surviving spouse under (b)(2)(1)
above), the date distributions are considered to begin is the date distributions
actually commence.
(3) Forms of Distribution. Unless the Participants interest is distributed in the
form of an annuity purchased from an insurance company or in a single sum
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on or before the Required Beginning Date, as of the first Distribution
Calendar Year distributions will be made in accordance with (c), (d), and (e)
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 Code Section 401 (a) (9) and section
1.401 (a)(9) of the regulations. Any part of the Participant's interest that is in
the form of an individual account described in Code Section 414(k) will be
distributed in a manner satisfying the requirements of Code Section 401
(a)(9) and section 1.401 (a)(9) of the regulations that apply to individual
accounts.
PART E. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE VII (REQUIRED MINIMUM
DISTRIBUTIONS), BY AMENDING SUBSECTION (d) of SECTION 7.03
(REQUIRED MINIMUM DISTRIBUTIONS) OF THE CODE OF
ORDINANCES FOR THE CITY OF EDGEWATER, FLORIDA TO READ AS
FOLLOWS:
SECTION 7.03 --REQUIRED MINIMUM DISTRIBUTIONS.
(d) Requirements For Annuity Distributions That Commence During Participant's
Lifetime.
(1) Joint Life Annuities Where the Beneficiary Is Not the Participants Spouse. If
the Participant's interest is being distributed in the form of a joint and
survivor annuity for the joint lives of the Participant and a nonspouse
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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 O&A-2(c)(2), in the manner described in Q&A -
2(c)(1), in section 1.401(a)(9)-6 of the regulations, to determine the
applicable percentage. If the form of distribution combines a joint and
survivor annuity for the joint lives of the Participant and a nonspouse
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.
(2) Period Certain Annuities. Unless the Participants 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 O&A-2 in section
1.401 (a)(9)-9 of the 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 72 (age 70 if they reached that age on or
before December 31. 20201, the applicable distribution period for the
Participant is the distribution period for age 72 (age 70 if they reached that
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ane on or before December 31 20201 under the Uniform Lifetime Table set
forth in Q&A -2 in section 1.401 (a)(9)-9 of the 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
Participanfs 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 Participants applicable distribution period, as determined under
this (d)(2), 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 Q&A -3 in section 1.401 (a)(S)-9 of the regulations, using
the Participants and spouse's attained ages as of the Participant's and
spouse's birthdays in the calendar year that contains the Annuity Starting
Date.
PART F. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE X (GENERAL
PROVISIONS), BY AMENDING SECTION 10.09 (SMALL AMOUNTS) OF
THE CODE OF ORDINANCES FOR THE CITY OF EDGEWATER,
FLORIDA TO READ AS FOLLOWS:
SECTION 10.09 -SMALL AMOUNTS.
If the Present Value of the Participanfs Vested Accrued Benefit does not exceed $1.000
$5090, and the Participant has not had an Annuity Starting Date with respect to any
portion of such Vested Accrued Benefit, the Present Value of the Participant's entire
Vested Accrued Benefit shall be paid in a single sum as of the earliest of his Retirement
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Date or the date he has a Severance from Employment for any reason other than death
(the date the Employer provides notice to the record keeper of the Plan of such event, if
later) . If a Participant would have received a distribution under the first sentence of this
paragraph but for the fact that the Present Value of the Participant's Vested Accrued
Benefit exceeded $1.000 $5990, and if at a later time the Present Value of the
Participant's Vested Accrued Benefit does not exceed $7.000 $5;000, and the Participant
has not had an Annuity Starting Date with respect to any portion of such Vested Accrued
Benefit and such Participant has not again become an Employee or died, the Present
Value of the Participants entire Vested Accrued Benefit shall be paid in a single sum. This is
a small amounts payment. Such small amounts payment is in full settlement of all
benefits otherwise payable.
If the Present Value of the Preretirement Survivor Annuity derived from the
Participants Accrued Benefit does not exceed E1.000 $5;000, on the date of the
Participant's death, the Present Value of the Preretirement Survivor Annuity shall be paid
in a single sum as of the date the Participant dies. If the single sum death benefit payable
to a Beneficiary does not exceed $1.000 $5,900, on the date of the Participant's death,
such death benefit shall be paid in a single sum as of the date the Participant dies. This
is a small amounts payment.
Such small amounts payment shall be made to the Participants Beneficiary (spouse if
the death benefit is payable to the spouse). Such small amounts payment is in full
settlement of the death benefit otherwise payable. No other small amounts payments shall
be made.
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Elimination of mandatory distributions Notwithstandina any other provision
herein to the contrary, in the event this Plan provides for a mandatory (involuntary)
cash distribution from the plan not otherwise reouired by law, for an amount in
excess of 81.000.00 such distribution shall be made from the Plan only upon written
request of the member and completion by the member of a written election on forms
designated by the board to either receive a cash Iumn sum or to rollover the lump
sum amount.
PART G. AMENDING THE CITY OF EDGEWATER GENERAL EMPLOYEE'S
RETIREMENT PLAN BY MODIFYING ARTICLE X (GENERAL
PROVISIONS), BY ADDING A NEW SECTION 10.12 (IRS COMPLIANCE)
TO THE CODE OF ORDINANCES FOR THE CITY OF EDGEWATER,
FLORIDA TO READ AS FOLLOWS:
ECTION 10.12 -- IRS COMPLIANC
(a) It is intended that the Plan be administered at all times in accordance
with the provisions of the Internal Revenue Code and the
corresponding Treasury Reaulations applicable to a oov rnmental
defined benefit retirement plan
(b) In recognition of the chanaina reouirements of plan qualification the
Board shall adopt an administrative policy settina forth the required
provisions for tax qualification Such a Policy shall be amended by the
Board as reauired to maintain Contin ina compliance with the Internal
Revenue Code and that policy and any amendments shall have the
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force of law as if adopted by the City Council,
PART H. 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 I. SEVERABILITY AND APPLICABILITY.
If any portion of this ordinance is for any reason held or declared to be
unconstitutional, inoperative, or void by a court of competent jurisdiction, 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 by a
court of competent jurisdiction, such holding shall not affect its applicability to any other
person, property, or circumstance.
PART J. CODIFICATION.
Provisions of this ordinance shall be incorporated in the Code of Ordinances of the
City of Edgewater, Florida, and the word 'ordinance", may be changed to "section",
"article", or other appropriate word, and the sections of this ordinance may be renumbered
or re- lettered to accomplish such intention.
PART K. EFFECTIVE DATE.
This Ordinance shall take place upon adoption.
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PART L. ADOPTION.
After Motion to approve by Councilwoman Power and second by
Councilwoman Yanev, the vote on the first reading of this ordinance on November 4 , 2020
was as follows:
(� After Motion to approve by l't711 !lf)i
AYE NAY
Mayor Mike Thomas
X
Councilwoman Christine Power
X
Councilwoman Kimberly Yaney
X
Councilwoman Megan O'Keefe
X
Vice Mayor Gary Conroy
X
(� After Motion to approve by l't711 !lf)i
lr y1Mnnyyry nV and second by
l (11 t 1\0J AILV_y++in r ler
the vote on the second reading/public hearing
of this ordinance on 1 V-Ce(Y)ber
% , 2020 was as follows:
AYE NAY
Mayor Mike Thomas
Councilwoman Christine Power
Councilwoman Gigi Bennington
Councilwoman Megan O'Keefe
Councilman Jonah Powers
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PASSED AND DULY ADOPTED this f day of I .pDDYY,L LtA- —2020.
ATTEST:
��� fly. `�f�llll�
$onnie Brown, CMC
City Clerk
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
legality by: Aaron R. Wolfe, Esquire day of2)Wo vV-At A, , 2020 under Agenda
City Attorney Item #8 G
Doran Sims Wolfe Ciocchetti & Yoon
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