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Home My WebLink About4197 Police Pension ORDINANCE NO. 4197 AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA, AMENDING CHAPTER 66, PENSIONS AND RETIREMENT, ARTICLE II, POLICE OFFICERS' RETIREMENT SYSTEM; AMENDING SECTION 66-31, DEFINITIONS; AMENDING SECTION 66-33, BOARD OF TRUSTEES; AMENDING SECTION 66-34, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 66-35, CONTRIBUTIONS; AMENDING SECTION 66-36, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 66-37, OPTIONAL FORMS OF BENEFITS; AMENDING SECTION 66-39, MISCELLANEOUS PROVISIONS; AMENDING SECTION 66-40, REPEAL OR TERMINATION OF SYSTEM; AMENDING SECTION 66-41, DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS, ELIMINATION OF MANDATORY DISTRIBUTIONS; AMENDING SECTION 66-43, MILITARY SERVICE PRIOR TO EMPLOYMENT; AMENDING SECTION 66-44, PRIOR POLICE SERVICE; AMENDING SECTION 66- 46, DEFERRED RETIREMENT OPTION PLAN; ADDING SECTION 66-47, CONVICTION AND FORFEITURE; FALSE, MISLEADING OR FRAUDULENT STATEMENTS; PROVIDING FOR SEVERABILITY OF PROVISIONS; PROVIDING FOR CODIFICATION; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA: SECTION 1: That Chapter 66, Pensions and Retirement, Article II, ofthe City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-31, Definitions, to amend the definitions of "Actuarial equivalent", "Base pay", and "Credited service", to read as follows: Actuarial equivalent means a benefit or amount of equal value, based upon the 1983 Group Annuity Mortality Table and an interest rate of eight (8) percent per annum. This definition may only be amended by the city pursuant to the recommendation of the board usina the assumptions adopted by the board with the advice of the plan's actuary. such that actuarial assumptions are not subiect to city discretion. ***** Ordinance No. 4197 Page 1 Base pay means the pay for the grade and step in the salary classification pay plan in the city for the given fiscal year, including education incentive payments and plus all tax-deferred, tax sheltered or tax-exempt items of income derived from elective employee payroll deductions or salary reductions and otherwise includible in base pay. Compensa- tion in excess of the limitations set forth in Section 401 (a)(17) of the Code shall bo disrogardod as of the first dav of the plan vear shall be disreqarded for any purpose. includinq employee contributions or any benefit calculations. The annual compensation of each member taken into account in determinina benefits or employee contributions for any plan year beqinninq on or after January 1. 2002. may not exceed $200.000. as adiusted for cost-of-Iivinq increases in accordance with Code Section 401 (a)( 17)(8). Compensation means compensation durinq the fiscal year. The cost-of-livinq adiustment in effect for a calendar year applies to annual compensation for the determination period that beains with orwithin such calendar year. If the determination period consists of fewer than 12 months. the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction. the numerator of which is the number of months in the short determination period. and the denominator of which is 12. If the compensation for any prior determination period is taken into account in determininq a member's contributions or benefits for the current plan Year. the compensation for such prior determination period is subiect to the applicable annual compensation limit in effect for that prior Deriod. The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a Member before the first Plan Year beginning after December 31, 1995. ***** Credited service means the total number of years and fractional parts of years of service as a police officer with member contributions when required, omitting intervening Ordinance No. Page 2 years or fractional parts of years when such member was not employed by the city as a police officer. A member may voluntarily leave his accumulated contributions in the fund for a period of five (5) years after leaving the employ of the police department pending the possibility of being reemployed as a police officer, without losing credit for the time that he was a member of the system. If a vested member leaves the employ of the police department, his accumulated contributions will be returned only upon his written request. If a member who is not vested is not reemployed as a police officer with the police department within five (5) years, his accumulated contributions, if one-thousand dollars ($1,000.00) or less, shall be returned. If a member who is not vested is not reemployed within five (5) years, his accumulated contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon the written request of the member and upon completion of a written election to receive a cash lump sum or to rollover the lump sum amount on forms designated by the board. Upon return of a member's accumulated contributions, all of his rights and benefits under the system are forfeited and terminated. Upon any reemployment, a police officer shall not receive credit for the years and fractional parts of years of service for which he has withdrawn his accumulated contributions from the fund, unless the police officer repays into the fund the contributions he has withdrawn, with interest, as determined by the board, within ninety (90) days after his reemployment. In addition, a member may receive credited service for periods which the member is absent from employment and receiving workers' compensation benefits for injuries sustained while acting as a police officer for the city, up to the time maximum medical improvement is reached, as determined in accordance with the Florida Workers' Compensation Law. The years or fractional parts of years that a member serves in tho military servioe of the /\rmed Foraes of the United State6, the United States Merahant Marine or the United States Coast GU::lrd, '1Oluntarily or involuntnrily performs "Qualified Militarv Service" consistina of voluntary or involuntary "service in the uniformed services" as defined in the Ordinance No. 4197 Page 3 Uniformed Services Employment and Reemployment Riahts Act (USERRA) (P .L.1 03-353), after separation from employment as a police officer with the city to perform training or service, shall be added to his years of credited service for all purposes, including vesting, provided that: !.ill The member is entitled to reemployment under the provisions of USERRA. (a Q) The member ffH:ISt return~ to his employment as a police officer within one (1) year from the earlier of the date of his military discharge or release from active service. unless otherwise required by USERRA. (b) The member is entitled to reemployment under the provisions of the Uniformed Servioes Employment and Reemployment Rights ''.at (USERR"\), (P.L.10a a53). (c) The maximum credit for military service pursuant to this paragraph shall be five (5) years. lltl This paraQraph is intended to satisfy the minimum requirements of USERRA. To the extent that this paraQraph does not meet the minimum standards of USERRA. as it may be amended from time to time. the minimum standards shall apply. In the event a member dies on or after January 1.2007. while performinQ USERRA Qualified Military Service. the beneficiaries of the member are entitled to any benefits (other than benefit accruals relatina to the period of Qualified militarv service) as if the member had resumed employment and then died while employed. ***** SECTION 2: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-33, Board of Trustees, to read as follows: Sec. 66-33. Board of trustees. Ordinance No. 4197 Page 4 (1) Board of trustees; responsibilities; composition. The sole and exclusive administration of and responsibility for the proper operation of the system and for making effective the provisions of this article are hereby vested in a board of trustees. The board is hereby designated as the plan administrator. The board of trustees shall consist of five trustees, two of whom, unless otherwise prohibited by law, shall be legal residents of the City, who shall be appointed by the City Commission one of whom shall be the Chief of Police os ~m ox afRaio mombor if the residency r{)quiremont is mot, and two of whom shall be members of the system, who shall be elected by a majority of the police officers who are members of the system. The fifth trustee shall be chosen by a majority of the previous four 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 of trustees as its fifth trustee. The fifth trustee shall have the same rights as each of the other four trustees appointed or elected as herein provided and shall serve a two year term unless he or she sooner vacates the office. Each resident trustee shall serve as trustee for a period of two years, unless he or she sooner vacates the office or is sooner replaced by the City Commission at whose pleasure he or she shall serve. The two resident trustees shall serve staggered terms. Each member trustee shall serve as trustee for a period two years, unless he or she sooner leaves the employment of the City as a police officer or otherwise vacates his or her office as trustee, whereupon a successor shall be chosen in the same manner as the departing trustee. Each trustee may succeed himself or herself in office and the two police officer trustees shall serve staggered terms. DROP participants can be elected as but may not vote for elected trustees. The board shall establish and administer the nominating and election procedures for each election. A City official who is otherwise eligible for appointment to the board shall not be disqualified for consideration solely on the basis of his or her official status unless such is required by law. The board of trustees shall meet at least quarterly each year. The board shall be a legal entity with, in addition to other powers Ordinance No. 4197 Page 5 and responsibilities contained herein, the power to bring and defend lawsuits of every kind, nature, and description. Section 2 122( e) of the City Code Ghall oontrol romo':alG from offioo. (2) Officers. The trustees shall, by a majority vote, elect a chairman, vice chairman and a secretary/treasurer. The secretary/treasurer of the board shall keep a complete minute book ofthe actions, proceedings, or hearings of the board. The trustees shall not receive any compensation as such, but may receive expenses and per them as provided by law. (3) Voting. Each trustee shall be entitled to one vote on the board. Three affirmative votes shall be necessary for any decision by the trustees at any meeting of the board. A trustee shall abstain from votina as the result of a conflict of interest and shall complv with the provisions of F.S. &112.3143. (4) Accounting; expenses, etc. The board shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the system. The compensation of all persons engaged by the board and all other expenses of the board necessary for the operation of the system shall be paid from the fund at such rates and in such amounts as the board shall agree. In the event the board chooses to use the city's legal counsel, actuary or other professional, technical or other advisors, it shall do so only under terms and conditions acceptable to the board. (5) Duties. The duties and responsibilities of the board shall include, but not necessarily be limited to, the following: (a) To construe the provisions of the system and determine all questions arising thereunder. (b) To determine all questions relating to eligibility and membership. (c) To determine and certify the amount of all retirement allowances or other benefits hereunder. Ordinance No. 4197 Page 6 (d) To establish uniform rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system. (e) To distribute to members, at regular intervals, information concerning the system. (f) To receive and process all applications for benefits. (g) To 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 system and fund. (h) To have performed actuarial studies and valuations, at least as often as required by law, and make recommendations regarding any and all changes in the provisions of the system. (i) To perform such other duties as are required to prudently administer the system. U) Roster of retirees. The secretary of the board shall keep a record of all persons enjoying a pension under the provisions of this article in which it shall be noted the time when the pension is allowed and when the same shall cease to be paid. Additionally, the secretary shall keep a record of all members in such a manner as to show the name, address, date of employment and date of termination of employment. These records shall be exemot from disclosure to the extent orovided for in F.S. ch. 119. (5) Reports to division of retirement. Each year and no later than March 15th, the board shall file an annual report with the division of retirement containing the documents and information required by F.S. 9185.221. (6) Indemnification. (a) To the extent not covered by insurance contracts in force from time to time, and to the extent not covered by the Sovereign Immunity Statute, the City Ordinance No. 4197 Page 7 shall indemnify, defend and hold harmless members of the board from all personal liability for damages and costs, including court costs and attorneys' fees, arising out of claims, suits, litigation, or threat of same, herein referred to as "claims," against these individuals because of acts or circumstances connected with or arising out of their official duty as members of the board, other than as set forth in paragraph (b) and (c) of this subsection. The City reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or to not appeal from any adverse judgment or ruling, and in either event will indemnify, defend and hold harmless any members of the board from the judgment, execution, or levy thereon. (b) This subsection shall not be construed so as to relieve any insurance company or other entity liable to defend the claim or liable for payment of the judgment or claim, from any liability, nor does this subsection waive any provision of law affording the City immunity from any suit in whole or part, or waive any other substantive or procedural rights the City may have. (c) This subsection shall not apply nor shall the City be responsible in any manner to defend or pay for claims arising out of acts or omissions of members of the board which constitute felonies or gross malfeasance or gross misfeasance in office. SECTION 3: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-34, Finances and fund management, subsection (6)(b)5.b., to read as follows: ***** (6)(b) 5. b. Up to teA twenty-five percent (W% 25%) of the assets of the fund at market value. may be invested in foreign securities. Ordinance No. 4197 Paae 8 SECTION 4: That Chapter 66, Pensions and Retirement, Article II, ofthe City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-35, Contributions, subsection (3), City contributions, to read as follows: (3) City contributions. So long as this system is in effect, the city shall make contributions to the fund in an amount equal to the differenoo in oach yoar, botwoen tho total aggregato mombor contributions for tho yoar, plus state oontributions 'lIhioh are log ally tl':ailablo to offsot oity funding for suoh yoar, and tho total oost for tho yoar required city contribution, as shown by the most recont applicable actuarial valuation of the system, but in no event shall the city's annual contribution be less than ten (10) percent of the total base pay of members for funding benefits provided for herein, including that in section &e- 36(0)(1) 66-36(e)(3). Such annual requirement shall be funded in quarterly installments. Tho total oost for any yoar shall bo dofinod as tho total normal oost plUG tho additional amount sufficiont to amortizo the unfundod past sorvioo liability as providod in Part VII of Chaptor 112, Florida Statutos. SECTION 5: That Chapter 66, Pensions and Retirement, Article II, ofthe City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-36, Benefit amounts and eligibility, subsection (a), Normal retirement, to add subsection (a)(3), Required distribution date, to read as follows: m Reauired distribution date. The member's benefit under this subsection must beQin to be distributed to the member no later than April 1 of the calendar year followinQ the later of the calendar year in which the member attains aae seventy and one-half (70~) or the calendar year in which the member terminates employment with the city. SECTION 6: That Chapter 66, Pensions and Retirement, Article II, ofthe City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by Ordinance No. 4197 Page 9 amending Section 66-36, Benefit amounts and eligibility, subsection (b), Early retirement, to add subsection (b)(3), Required distribution date, to read as follows: ill Reauired distribution date. The member's benefit under this subsection must beain to be distributed to the member no later than April 1 of the calendar year followina the later of the calendar year in which the member attains aae seventy and one-half (70%) or the calendar year in which the member terminates employment with the city. SECTION 7: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-36, Benefit amounts and eligibility, subsection (c), Pre-retirement death, to read as follows: (c) Pre-retirement death. (1) Prior to vesting or eligibility for retirement. The beneficiary of a deceased member who was not receiving monthly benefits or who was not yet vested or eligible for early or normal retirement and whose death did not result directly from an occurrence arising in the performance of duty, shall receive a refund of one hundred (100) percent of the member's accumulated contributions. (2) Deceased members vested or eligible for retirement with SDouse as beneficiary. This subsection (c)(2) applies only when the member's spouse is the sole desianated beneficiary. The spouse beneficiary of any member who dies and who, at the date of his death was vested or eligible for early or normal retirement, shall be entitled to a benefit as follows: a. If the member was vested, but not eligible for normal or early retirement, and the member's death did not result directly from an occurrence arising in the performance of duty, the spouse beneficiary shall receive a benefit payable for ten (10) years, beginning on the Ordinance No. 4197 Page 10 date that the deceased member would have been eligible for early or normal retirement, at the option of the spouse beneficiary. The benefit shall be calculated as for normal retirement based on the deceased member's credited service and average final compensation as of the date of his death and reduced as for early retirement, if applicable. The spouse beneficiary may also elect to receive an immediate benefit, payable for ten (10) years, which is actuarially reduced to reflect the commencement of benefits prior to the early retirement date. b. If the deceased member was eligible for normal or early retirement, the spouse beneficiary shall receive a benefit payable for ten (10) years, beginning on the first day of the month following the member's death or at the deceased member's otherwise early or normal retirement date, at the option of the spouse beneficiary. The benefit shall be calculated as for normal retirement based on the deceased member's credited service and average final compensation as of the date of his death and reduced as for early retirement, if applicable. c. In any event, if the member's death is caused by the performance of his duties as a police officer (in line of duty), the spouse beneficiary shall receive a benefit payable for ten (10) years, beginning on the first day of the month following the member's death. The benefit shall be calculated as for normal retirement (unreduced) based on the deceased member's credited service and average final compensation as of the date of death. The minimum benefit shall be forty (40) percent of average final compensation. The presumptions in subsection (d)(2) of this section shall apply in determining whether a death was in line of duty. Ordinance No. 4197 Page 11 d. A spouse beneficiary may elect an actuarial equivalent life annuity optional form of benefit, and the board may elect to make a lump sum payment pursuant to section 66-37, subsection (7). e. A spouse beneficiary may, in lieu of any benefit provided for in a. or b. above, elect to receive a refund of the deceased member's accumulated contributions. t Notwithstandinq anvthinq contained in this section to the contrary. in any event. distributions to the spouse beneficiary will beain by December 31 of the calendar year immediately followina the calendar year in which the member died. or by a date selected pursuant to the above provisions in this section that must be on or before December 31 of the calendar year in which the member would have attained 70%. ~ If the survivinq spouse beneficiary commences receivinq a benefit under subsection a. or b. above. but dies before all payments are made. the actuarial value of the remainina benefit will be paid to the spouse beneficiary's estate in a lump sum. ill Deceased Members Vested or Eliaible for Retirement with Non-Spouse Beneficiary. This subsection applies only when the member's spouse is not the beneficiary or is not the sole desianated beneficiarY. but there is a survivinq beneficiary. The beneficiary of any member who dies and who. at the date of his death was vested or eliaible for early or normal retirement. shall be entitled to a benefit as follows: a. If the member was vested. but not eliqible for normal or early retirement and the member's death did not result directly from an occurrence arisinq in the performance of duty. the beneficiary will receive a benefit payable for ten (10) years. The benefit will beqin by Ordinance No. 4197 Page 12 December 31 of the calendar year immed iatelv followina the calendar year in which the member died. The benefit will be calculated as for normal retirement based on the deceased member's credited service and averaae final compensation and actuariallv reduced to reflect the commencement of benefits prior to the normal retirement date. h:. If the deceased member was eliaible for normal or earlv retirement. the beneficiary will receive a benefit pavable for ten (10) years, beainnina on the first day of the month followina the member's death. The benefit will be calculated as for normal retirement based on the deceased member's credited service and averaae final compensation as of the date of his death and reduced for earlv retirement. if applicable. ~ In any event. if the member's death is caused bv the performance of his duties as a police officer (in line of dutv), the beneficiary shall receive a benefit pavable for ten (10) years, beainnina on the first day of the month followina the member's death. The benefit shall be calculated as for normal retirement (unreduced) based on the deceased member's credited service and averaae final compensation as of the date of death. The minimum benefit shall be forty (40) percent of averaae final compensation. The presumptions in subsection (d)(2) of this section shall applv in determinina whether a death was in line of duty. d. A beneficiary may not elect an optional form of benefit. however the board may elect to make a lump sum payment pursuant to Sec. 66- 37. subsection (7). Ordinance No. 4197 Page 13 ~ A beneficiary. may. in lieu of any benefit provided for in a.. b. or c. above. elect to receive a refund of the deceased member's accumulated contributions. t. If a suryivina beneficiary commences receiving a benefit under subsection a. or b. above. but dies before all payments are made. the actuarial value of the remainina benefit will be paid to the surviving beneficiary's estate by December 31 of the calendar year of the beneficiary's death in a lump sum. ~ If there is no surviving beneficiary as of the member's death. and the estate is to receive the benefits. the actuarial eauivalent of the member's entire interest must be distributed by December 31 of the calendar year containina the fifth anniversary of the member's death. !1. The Uniform Lifetime Table in Treasury Reaulations ~ 1.401(a)(9)-9 shall determine the payment period for the calendar year benefits commence. if necessary to satisfy the reaulations. SECTION 8: That Chapter 66, Pensions and Retirement, Article II, ofthe City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-36, Benefit amounts and eligibility, subsection (d)(6), Disability payments, to read as follows: (6) 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: a. If the retiree recovers from the disability prior to hie: normal retirement Gate, the payment due next preceding the date of such recovery, or Ordinance No. 4197 Page 14 b. If the retiree 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. Provided, however, the disability retiree may select, at any time prior to the date on which benefit payments begin, an optional form of benefit payment as described in section 66-37, subsection (1 )(a) or (1 )(b), which shall be the actuarial equivalent of the normal form of benefit. SECTION 9: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-36, Benefit amounts and eligibility, subsection (f), Maximum pension, to read as follows: (f) Maximum pension. (1) Basio Hmitation. Subject to the adjustments hereinafter set forth, the maximum amount of annual retirement inoome payable with respect to a member under this system shall not exoeed one hundred sixty thousand dollars ($160,000.00). For purposes of applying the above limitation, benefits payable in any form other than a straight life annuity with no anoillary benefits shall be adjusted, as pro'tided by Treasury Regulations, so that suoh benefits are the actuarial equivalent of a straight life annuity. For purposes of this subsection, the following benefits shall not be taken into aooount: a. /\.ny ancillary benefit whioh is not directly related to retirement inoome benefits; b. /\ny other benefit not required under Seotion ~ 15(b)(2) of the [Internal Re'.'enue] Code and Regulations thereunder to be tal<on into aooount Ordinance No. 4197 Page 15 for purposes of the limitation of Section 415(b)(1) of the [lntern31 Revenue] Code, (2) Partieip:JtioR In othor dofinod bOAOfit p/:JRS. The limitation of this subseotion with respect to any member who 3t 3ny time h3s been a member in any other defined benefit pbn (3S defined in Section 4140) of the [lntern31 Revenue] Code) maintained by the oity shall apply 3S if the total benefits p3Y3ble under 311 defined benefit plans in whioh the member has been a member were p3Y3ble from one (1) plan. l')~ IIdJ' 4- 4-." '4- 4-' \.;J I I h..j{;lSlmOntl~ In .fm:.:J.:ons. 3. In the eyent the member's retirement benefits beoome p3Y3ble before age sixty two (62), the one hundred sixty thousand dollar ($160,000.00) limit3tion presoribed by this subsection shall be reduced in 3ccord3nce with regul3tions issued by the Secret3ryofthe Treasury pursu3nt to the provisions of Seotion 415(b) of the [Internal Revenue] Code, so th3t such limit3tion (3S so reduaed) equ31s 3n annual benefit (beginning when such retirement income benefit begins) which is equivalent to a one hundred sixty thousand dollar ($160,000) 3nnual benefit beginning at age sixty two (62). b. In the event the member's benefit is based on at least fifteen (15) ye3rs of aredited servioe, the 3djustments provided for in 3. 3bove shall not apply. a. The reductions provided for in 3. 3bo'le shall not be 3pplicable to disability benefits paid pursuant to Seo. 66 36, Benefits amounts and eligibility, subseotion (d), or pre retirement de3th benefits paid pursu3nt to Sea. 66 36, Benefit 3mounts and eligibility, subsection (0). d, If the member's retirement benefit becomes payable 3fter age sixty five (65), for purposes of determining whether this benefit meets Ordinance No. 4197 Page 16 the limitation set forth in sootion 66 36(1)(1) hemin, such benefit shall be adjusted so that it is actuarially equi'/alent to the benefit beginning 3t 3ge sixty five (65). This adjustment sh311 be made in aooordanoe 'Nith regubtions promulgated by the Secmt3ry of the Tmasury or his deleg3te. (1) Less tJ:13n ten years of eer/ioe. The m3ximum retirement benefits p3yable under this subsection to any memberwho h3s completed less than ten (10) ye3rG of oredited servioe with the city sh311 be the amount determined under section 66 36(f)(1) multiplied by 3 fr3ction, the numer3tor of which is the number of the member's ye3rs of cmdited service 3nd the denomin3tor of which is ten (10). The reduotion provided for in this subsection shall not be applic3ble to dis3bility benefits p3id pursuant to Sec. 66 36, Benefits 3mounts and eligibility, subsection (d), or pre retirement death benefits paid pursuant to Sec. 66 36, Benefit amounts and eligibility, subsection (c). (6) $10,000.00 f.imit. Notwithstanding the fomgoing, the mtimment benefit payable with respect to a member shall be deemed not to exoeed the limitations set forth in this subsection if the benefits payable, with respect to such member under this system and under all other qualified defined benefit pension plans to which the city contributes, do not exoeed ten thousand dollars ($10,000.00) for the applicable plan year and for any prior plan year and the city has not at any time maintained a qualified defined contribution plan in ':-,hich the member p3rticipated. (6) ReckJction of bonefits. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished byflFSt reduoing the member's benefit under 3ny defined benefit plans in which member partioipated, such reduction to be m3de first 'Nith respect to the pbn in which member most recently 3ccrued benefits and thereafter in such priority as shall be Ordinance No. 4197 Page 17 determined by the board and the plan administrator of such other plans, and next, by reducing or allocating excess forfeitures for defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in 'A'hich member most recently accrued benefits and thereafter in e:uch priority as shall be established by the bonr-d and the plan administrator for such other plans pro'Jided, however, that necessary reductione: may be made in a different manner and priority pursuant to the agreement of the board and the plan administrator of all other plane: cO'/ering such member. (7) Cost of .'i'l.wg 3djt:lstments. The limitations as stated in subsections (f)(1 ), (f)(2) and (f)(3) herein shall be adjusted to the time payment of a benefit begins in accordance with any cost of living adjue:tments prescribed by the Secretary of the Treasury pursuant to Section <115( d) of the [Internal Re'Jenue] Code. (8) /\dditjOR3! .'imItation on pension benefits. Notwithstanding anything herein to the contrary: a. The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in such system, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. HO'l.'e'ler, nothing contained in this subsection e:hall apply to supplemental retirement benefits or to pension increases attributable to cost of li'Jing increases or adjustments. b. No member of the system shall be allowed to receive a retirement benefit or pension '",hich is in part or in whole based upon any service with respect to which the member is already recei'./ing, or will receive in the future, a retirement benefit or pension from a different Ordinance No. 4197 Page 18 employer's retirement system or plan. This restriotion does not apply to sooial security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. ill Basic limitation. Notwithstandina any other provisions of this system to the contrary. the member contributions paid to. and retirement benefits paid from. the system shall be limited to such extent as may be necessary to conform to the reauirements of Code Section 415 for a aualified retirement plan. Before January 1. 1995. a plan member may not receive an annual benefit that exceeds the limits specified in Code Section 415(b). subiect to the applicable adiustments in that section. On and after January 1. 1995. a plan member may not receive an annual benefit that exceeds the dollar amount specified in Code Section 415(b)(1)(A) ($160.000). subiect to the applicable adiustments in Code Section 415(b) and subiect to any additional limits that may be specified in this System. For purposes of this section. "limitation year" shall be the calendar year. ill Adiustments to Basic Limitation for Form of Benefit. If the form of benefit without reaard to any benefit increase feature is not a straiaht life annuity. then the Code Section 415(b) limit applicable at the annuity startina date is reduced to an actuarially eauivalent amount (determined usina the assumptions specified in Treasury Reaulation Section 1.415(b)-1(c)(2)(ji)) that takes into account the death benefits under the form of benefit. Q1 Benefits Not Taken into Account. For purposes of this Section. the followina benefits shall not be taken into account in applyina these limits: ~ Any ancillary benefit which is not directly related to retirement income benefits: Ordinance No. 4197 Page 19 b. Any other benefit not required under ~415(b )(2) of the Code and ReQulations thereunder to be taken into account for purposes of the limitation of Code Section 415(b)( 1 ). ill COLA Effect. Effectiye on and after January 1. 2003. for purposes of applyina the limits under Code Section 415(b) (the "Limit"). the followina will apply: a. A member's applicable limit will be applied to the member's annual benefit in the member's first calendar year of benefit payments without reaard to any automatic cost of IiYina adjustments: !2.:. thereafter. in any subseauent calendar year. a member's annual benefit. includina any automatic cost of IiYina increases. shall be tested under the then applicable benefit limit includina any adjustment to the Code Section 415(b)(1 )(A) dollar limit under Code Section 415(d)' and the reaulations thereunder: but c. in no event shall a member's benefit payable under the system in any calendar year be areater than the limit applicable at the annuity startina date. as increased in subseauent years pursuant to Code Section 415(d) and the reaulations thereunder. Unless otherwise specified in the system. for purposes of applYina the limits under Code Section 415(b). a Member's applicable limit will be applied takina into consideration cost of Iiyina increases as reauired by Section 415(b) of the Code and applicable Treasury Reaulations. @ Other Adiustments in Limitations. a. In the event the member's retirement benefits become payable before aae sixty-two (62). the limit prescribed by this section shall be reduced in accordance with reaulations issued by the Secretary of the Treasury pursuant to the provisions of Code Section 415(b) of the Ordinance No. 4197 Page 20 Code. so that such limit (as so reduced) eauals an annual straiaht life benefit (when such retirement income benefit beains) which is equivalent to a one hundred sixty thousand dollar ($160.000) annual benefit beainnina at aae sixty-two (62). b. In the event the member's benefit is based on at least fifteen (15) years of credited service as a full-time employee of the fire or police department of the City. the adiustments provided for in (5)a. above shall not apply. c. The reductions provided for in (5)a. above shall not be applicable to disability benefits pursuant to Sec. 66-36(d). or pre-retirement death benefits paid pursuant to Sec. 66-36(c). d. In the event the member's retirement benefit becomes payable after aQe sixty-five (65), for purposes of determinina whether this benefit meets the limit set forth in subsection (1) herein. such benefit shall be adiusted so that it is actuarially equivalent to the benefit beainnina at aae sixty-five (65). This adiustment shall be made in accordance with reaulations promulQated by the Secretarv of the Treasury or his deleaate. lID Less than Ten (10) Years of Service. The maximum retirement benefits payable under this section to any member who has completed less than ten (10) years of credited service with the City shall be the amount determined under subsection (1) of this section multiplied by a fraction. the numerator of which is the number of the member's years of credited service and the denominator of which is ten (10). The reduction proyided by this subsection cannot reduce the maximum benefit below 10%. The reduction provided for in this subsection shall not be applicable to disability benefits paid pursuant Ordinance No. 4197 Page 21 to Sec. 66-36(d). or pre-retirement death benefits paid pursuant to Sec. 66- 36( c ). ill Particioation in Other Defined Benefit Plans. The limit of this section with respect to any member who at any time has been a member in any other defined benefit plan as defined in Code Section 414(j) maintained by the City shall apply as if the total benefits payable under all City defined benefit plans in which the member has been a member were payable from one plan. !ill Ten Thousand Dollar ($10.000) Limit. Notwithstandina the foreqoinq. the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this section if the benefits payable. with respect to such member under this system and under all other qualified defined benefit pension plans to which the City contributes. do not exceed ten thousand dollars ($10.000) for the applicable plan year and for any prior plan year and the City has not any time maintained a qualified defined contribution plan in which the member participated. !.ill Reduction of Benefits. Reduction of benefits and/or contributions to all plans. where required. shall be accomplished by first reducinq the member's benefit under any defined benefit plans in which member participated. such reduction to be made first with respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be determined by the board and the plan administrator of such other plans. and next. by reducinq or allocatinq excess forfeitures for defined contribution plans in which the member participated. such reduction to be made first with . respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be established by the board and the plan administrator for such other plans provided. however. that necessary reductions may be made in a different manner and priority pursuant to the Ordinance No. 4197 Page 22 aareement of the board and the plan administrator of all other plans coverina such member. !1Q} Service Credit Purchase Limits. a. Effective for permissive service credit contributions made in limitation vears beainnina after December 31. 1997. if a member makes one or more contributions to purchase permissive service credit under the system. as allowed in Sec. 66-43 and Sec. 66-44. then the reauirements of this section will be treated as met only if: 1.:. the reauirements of Code Section 415(b) are met. determined by treatina the accrued benefit derived from all such contributions as an annual benefit for purposes of Code Section 415(b). or 2. the reauirements of Code Section 415(c) are met. determined by treatina all such contributions as annual additions for purposes of Code Section 415( c ). 3. For purposes of applyina subparaaraph (10)a.1.. the System will not fail to meet the reduced limit under Code Section 415(b)(2)(C) solely by reason of this subparaaraph c.. and for purposes of applYina subparaaraph (1 0)b.2. the system will not fail to meet the percentaae limitation under Section 415( c)( 1 )(8) of the Code solely by reason of this subparaaraph c. !L For purposes of this subsection the term "permissive service credit" means service credit- 1.:. recoanized by the system for purposes of calculatina a member's benefit under the plan. 2. which such member has not received under the plan. and Ordinance No. 4197 Page 23 3. which such member may receive only by makina a voluntarv additional contribution. in an amount determined under the system. which does not exceed the amount necessary to fund the benefit attributable to such service credit. Effective for permissive service credit contributions made in limitation years beginnina after December 31. 1997. such term may. if otherwise provided by the system. include service credit for periods for which there is no performance of service. and. notwithstanding clause (10)b.2.. may include service credited in order to provide an increased benefit for service credit which a member is receiving under the system. c. For ourposes of applying the limits in this subsection (10). only and for no other purpose. the definition of compensation where aoplicable will be compensation actually paid or made available during a calendar year. except as noted below and as permitted by Treasurv Regulations Section 1.415(c)-2. or successor regulations. Unless another definition of compensation that is permitted by Treasurv Reaulations Section 1.415(c)-2. or successor reaulation. is specified by the system. compensation will be defined as waaes within the meanina of Code Section 3401(a) and all other payments of compensation to an employee by an employer for which the employer is reauired to furnish the employee a written statement under Code Sections 6041 (d). 6051 (a )(3) and 6052 and will be determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401 (a)(2). Ordinance No. 4197 Page 24 .1. However. for calendar years beainnina after December 31. 1997. compensation will also include amounts that would otherwise be included in compensation but for an election under Code Sections 125(a), 402(e)(3). 402(h)(1)(B), 402(k). or 457(b). For calendar years beainnina after December 31. 2000. compensation will also include any elective amounts that are not includible in the aross income of the employee by reason of Code Section 132(f)( 4 ). 2. For limitation years beainnina on and after January 1. 2007. compensation for the calendar year will also include compensation paid by the later of 2~ months after an employee's severance from employment or the end of the calendar year that includes the date of the emplovee's severance from employment if: ill the payment is reaular compensation for services durina the emplovee's reaularworkina hours. or compensation for services outside the employee's reaular workina hours (such as overtime or shift differential). commissions. bonuses or other similar payments. and. absent a severance from emplovment. the payments would have been paid to the emplovee while the emplovee continued in employment with the emplover: or !.ill the payment is for unused accrued bona fide sick. vacation or other leave that the emplovee would have been able to use if emplovment had continued. Ordinance No. 4197 Page 25 3. Back pay. within the meanina of Treasurv Reaulations Section 1.415(c)-2(a)(8). shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents waaes and compensation that would otherwise be included under this definition. d. Notwithstandina any other provision of law to the contrary. the board may modify a reauest by a member to make a contribution to the system if the amount of the contribution would exceed the limits provided in Code Section 415 by usina the followina methods: .1. If the law reauires a lump sum payment for the purchase of service credit. the board may establish a periodic payment deduction plan for the member to avoid a contribution in excess of the limits under Code Sections 415(c) or 415(n). 2. If payment pursuant to subparaaraph (1 0)d.1. will not avoid a contribution in excess of the limits imposed by Code Section 415( c). the board may either reduce the member's contribution to an amount within the limits of that section or refuse the member's contribution. .l111 Additional Limitation on Pension Benefits. Notwithstandina anvthina herein to the contrary: a. The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in such system. on or after Januarv 1. 1980. shall not exceed one hundred percent (100%) of his averaae final compensa- tion. However. nothina contained in this section shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-livina increases or adjustments. Ordinance No. 4197 Page 26 b. No member of the system shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receivina. or will receive in the future. a retirement benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social security benefits or federal benefits under Chapter 67. Title 10. U.S. Code. SECTION 10: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-36, Benefit amounts and eligibility, subsection (g), Minimum distribution of benefits, to read as follows: (g) Minimum distribution of benefits. (1 ) General rules. a. Effective date. Effective as of January 1. 1989. the plan will pay all benefits in accordance with a Qood faith interpretation of the requirements of Code Section 401(a)(9) and the reaulations in effect under that section. as applicable to a Qovernmental plan within the meanina of Code Section 414(d). Effective on and after January 1. 2003. the plan is also subiect to the specific provisions contained in this section. The provisions of this section will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year. b. Precedence. The requirements of this section will take precedence over any inconsistent provisions of the plan. c. ROf!f:Jiremonro of Troasl:Jry rogl;/.~tions inoorpo:'atod. All distributions required under this scotion will be determined and made in Ordinance No. 4197 Page 27 oooordonoe with the Treasul)' regul3tions under seotion 401(3)(9) of tho Codo. a f. TEFRA section 242(b)(2) elections. Notwithstanding the other provisions of this section other than this subsection (4)9 ~., distributions may be made under a designation made before January 1, 1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that related to section 242(b )(2) of TEFRA. (2) Time and manner of distribution. a. Required beginning date. The member's entire interest will be distributed, or begin to be distributed, to the member no later than the member's required beginning date which shall not be later than April 1 of the calendar year following the later of the calendar year in which the member attains age seventy and one-half (70 ~) or the calendar year in which the member retireE: unloss othorwise providod for in tho plan or roquired by law terminates emplovment with the city. b. Death of member before distributions begin. If the member dies before distributions begin, the member's entire interest will be distributed, or begin to be distributed no later than as follows: 1. If the member's surviving spouse is the member'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 member died, or by a date on or before December 31 of the calendar year in which the member would have attained age 70 ~, if later. as the survivinq spouse elects. Ordinance No. 4197 Page 28 2. If the member's surviving spouse is not the member'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 member died. 3. If there is no designated beneficiary as of September 30 of the year following the year of the member's death, the member's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death. 4. If the member's surviving spouse is the member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to the surviving spouse begin, this subsection (2)b., other than subsection (2)b.1., will apply as if the surviving spouse were the member. For purposes of this subsection (2)b. and subsection (5), distributions are considered to begin on the member's required beginning date or, if subsection (2)b.4. applies, the date of distributions are required to begin to the surviving spouse under subsection (2)b.1. If annuity payments irrevocably commence to the member before the member's required beginning date (or to the member's surviving spouse before the date distributions are required to begin to the surviving spouse under subsection (2)b.1.) the date distributions are considered to begin is the date distributions actually commence. Ordinance No. 4197 Page 29 c. Death After Distributions Beain. If the member dies after the reauired distribution of benefits has beaun. the remainina portion of the member's interest must be distributed at least as rapidly as underthe method of distribution before the member's death. 6 g. Form of distribution. Unless the member'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 ef subsections (3), (1) and (5) of with this section. If the member'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 Treasury regulations. Any part of the member'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 Treasury regulations that apply to individual accounts. (3) Determination of amount to be distributed each year. a. General annuity requirements. If the member's interest is paid in the form of annuity distributions under the plan, payments under the annuity will satisfy the following requirements: 1. The annuity distributions will be paid in periodic payments made at intervals not longer than one year. 2. The distribution period '.viii be over a life (or lives) or over a period oertain not longer than the period desoribed in subsection (-4) or (5). The member's entire interest must be distributed pursuant to Sec. 66-36la)'(b),(c),or le), or Sec.66- Ordinance No. 4197 Page 30 37 (as applicable) and in any event over a period equal to or less than the member's life or the lives of the member and a desianated beneficiary. or over a period not extendinQ beyond the life expectancy of the member or of the member and a desionated beneficiary. The life expectancy of the member. the member's spouse. or the member's beneficiary may not be recalculated after the initial determination for purposes of determininQ benefits. 3. Once payments have begun over a period oertain, the period certain will not be ohanged even if the period oertain is Ghorter than the maximum permitted. 4. Payments v..ill either be noninoreasing or inorease only as follows: By an annual percentage inor{)ase that does not exoeed the cumulative annual percentage increase in a cost of living index that is based on prioes of all items and issued by the Bureau of Labor Statistics or by a fixed annual increase of five percent or leoo. ii To the extent of the reduotion in the amount of the member's payments to pro'.'ide for a ourvi'Jor benefit upon death, but only if the benefioiary whose life ....,as being used to determine the diGtribution period described in subsection (4) dies or is no longer the member's beneficiary pursuant to a qualified domestio relations order within the meaning of section 41 4(p ). iii To provide oash refunds of aooumulated oontributions upon the member's death. Ordinance No. 4197 Page 31 I" . To pay inoreased 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 member's required beginning date (or, if the member dies before distributions begin, the date distributions are required to begin under subsection (2)b.1. or (2)b.3 Sec. 66-36( c).) 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 member'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 member's required beginning date. c. Additional accruals after first distribution calendar year. Any additional benefits accruing to the member in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. ( 4) Requirements for ::mnutty d/str/butfons th:Jt oommence el:J."ing :J member's fifot/me. a. ,Joint life :Jnflu/tfes vlhef() the beneficiary is not tho member's spouse. If the member's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the member and a nonspouse benefioiary, annuity payments to be made on or after the member's required beginning date to the designated beneficiary after the Ordinance No. 4197 Page 32 mombor's d03th must not 3t 3ny time oxoood tho applioablo porcontago of tho 3nnuity paymont for such period that 'Al()uld h3VO boon payablo to tho membor using tho t3blo sot forth in Q&/\ 2 of sootion 1.401(a)(9) 6T of tho Tr03sury regulations. If tho form of distribution combines a joint 3nd survivor annuity for tho joint livos of tho membor 3nd a nonspouso bonofici31)' 3nd 3 poriod cort3in annuity, tho requiremonts in tho preceding sontonco will apply to 3nnuity paymonts to bo modo to tho dosignatod bonofioi3ry after tho oxpiration of the poriod oort3in. b. Period oertaIn annuitIes. Unloss tho mombor's spouse is tho solo dosignatod bonoficiary and tho form of distribution is 3 poriod oortain and no life annuity, tho poriod cortain for 3n 3nnuity distribution commencing during tho membor's lifetime m3Y not exoood tho 3pplioablo distribution poriod for tho mombor undor tho Uniform Lifetimo Table sot forth in soction 1.401 (3)(9) 9 of tho Treasury regulations for the oalondar yoar that cont3ins tho annuity starting dato. If the annuity st3rting date preoodos tho yoar in whioh tho mombor roaohos ago 70, the applioablo distribution poriod for tho momber is tho distribution poriod for ago 70 undor tho Uniform Lifotimo Tablo sot forth in soction 1.401(a)(9) 9 of the Treasury rogulations plus tho exooos of 70 over tho ago of tho membor as of tho momber's birthday in tho Y03r that contains tho annuity st3rting dato. If tho mombor's spouso is the momber's solo dosign3tod bonoficiary and the form of distribution is 3 poriod oortain 3nd no lifo annuity, tho poriod oertain may not oxcood tho longor of the mombor's applic3blo distribution poriod, as dotormined undor this subsoction (4 )b., or tho joint life and last survivor oxpeotanoy of tho mombor and Ordinance No. 4197 Page 33 the member's spouse os determined under the Joint and L3st Survi'.fOr T3ble set forth in eection 1.401 (3)(9) 9 of the Treasury regul3tions, using the member's and spouGe's attained ages 3S of the member'!:: and !::pou!::e's birthdays in the calendar year that oontains the annuity starting date. (5) Roquiromonts for minimum distributions whore member dIos bofore data distributions bogln. a. Member sUr/ivod by dosigrKltod bonoficiary. If tho member dios before the date distribution of his or her interest begins and thore is a designated benefioiary, the member's entire interest will be distributed, beginning no later than the time de!::oribed in subsection (2)b.1. or (2)b.2., over the life of the designated beneficiary or over a period certain not exoeeding: 1. Unless the annuity starting dote is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age os of the beneficiary's birthday in the calendar year immediately following the oalend3r year of the member's death. 2. If the annuity starting date in before the first dietribution c31endar year, the lif-o expectancy of the designated beneficiary determined using the benefioiary's age os of the beneficiary's birthday in the calendar year the oontains the annuity starting date. b. .^.'<J dosignatad bonefieiary If the member dies before the date distributions begin and there in no designated benefioiary as of September 30 of the year following the year of the member's death, distribution of the member's entire intere!::t ',.'i11 be completed by Ordinance No. 4197 Page 34 December d 1 of the oalendar year oontaining the fifth anniversal)' of the member's death. c. Doath of sl:Jr/,;'.',;ng SpOl:JSO bofore distribl:Jtions to sl:Jr/iving SfJOl:JSO bogin. If the member dies before the date distribution of his interest begins, the member's surviving spouse is the member's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this subsection (5) '/Iill apply as if the survi':ing spouse were the member, exoept that the time by whioh distributions must begin will be determined without regard to subsection (2)b.1. ill General distribution rules. a. The amount of an annuity paid to a member's beneficiary may not exceed the maximum determined under the incidental death benefit reauirement of Code Section 401(a)(9)(G). and effective for any annuity commencina on or after January 1. 2008. the minimum distribution incidental benefit rule under Treasury Reaulation Section 1.401(a)(9)-6. Q&A-2. b. The death and disability benefits provided by the plan are limited by the incidental benefit rule set forth in Code Section 401 (a)(9)(G) and Treasury Reaulation Section 1.401-1(b)(1)(I) or any successor reaulation thereto. As a result. the total death or disability benefits payable may not exceed 25% of the cost for all of the members' benefits received from the retirement system. (9 ft) Definitions. a. Designated beneficiary. The individual who is designated as the beneficiary under the plan and is the designated beneficiary under Ordinance No. 4197 Page 35 section 401(a)(9) of the Code and section 1.401(a)(9)-1, Q&A-4, ofthe Treasury regulations. b. Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the member's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the member's required beginning date. For distributions beginning after the member's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to subseotion (2)b Sec. 66-36(c). o. Lifo expectancy. Lifo expeotanoy ::IS oomputed by use of the Single Lifo Table in section 1.401(0)(0) 0 of the Treasury regulations. d. Reql:Jirod boginrqing cklte. The date Gpeoified in GubGeotion (2)0. SECTION 11: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-36, Benefit amounts and eligibility, subsection (h), Forfeiture of pension, to amend subsection (h)(1), to read as follows: (1) Any member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his admitted commission, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this system, except for the return of his accumulated contributions as of the date of termination. Specified offenses are as follows: a. The committing, aiding or abetting of art embezzlement of public funds; b. The committing, aiding or abetting of any theft by a public officer or employee from employer; Ordinance No. 4197 Page 36 c. Bribery in connection with the employment of a public officer or employee; d. Any felony specified in Chapter 838, Florida Statutes. e. The committing of an impeachable offense. f. The committing of any felony by a public officer or employee who. willfully and with intent to defraud the public or the public agency, for which he acts or in which he is employed, of the right to receive the faithful performance of his duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his public office or employment position. 9.:. The committina on or after October 1. 2008. of any felony defined in Section 800.04. Florida Statutes. aaainst a victim younaer than sixteen (16) years of aae. or any felony defined in Chapter 794. Florida Statutes. aaainst a victim younaerthan eiahteen (18) years of aae. by a public officer or employee throuah the use or attempted use of power. riahts. privileaes. duties. or position of his or her public office or employment position. SECTION 12: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-37, Optional forms of benefits, by amending subsection (1 )(b), adding subsection (5)(e) and amending subsection (7), to read as follows: ***** (b) A retirement income of a modified monthly amount, payable to the retiree during the lifetime of the retiree and following the death of the retiree, 100 percent, 75 percent, 66 2/3 percent or 50 percent of such monthly amount Ordinance No. 4197 Page 37 payable to a joint pensioner for his lifetime. Except where the retiree's joint pensioner is his spouse, the payments to the joint pensioner as a percentage of the payments to the retiree shall not exceed the applicable percentage provided for in the applicable table in the Treasury Regulations. (See Q & A- 2 of 1.401(a)(9)-6) ***** ~ The Member's benefit under this section must beain to be distributed to the member no later than April 1 of the calendar year followino the later of the calendar year in which the member attains aoe seventy and one-half (70%) or the calendar year in which the member terminates emplovment with the city. ***** (7) 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 monthly benefit 3mount is less th3n one hundred dollars ($100.00) or the total oommuted v31ue of the remaining monthly income p3yments to be paid do not exoeed five thous3nd dollars ($5,000.00) total commuted value of the monthlv income payments to be paid do not exceed one thousand dollars ($1.000.00). 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 system with regard to such member and shall not be subject to review by anyone, but shall be final, binding and conclusive on all persons. Ordinance No. 4197 Page 38 SECTION 13: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-39, Miscellaneous provisions, to read as follows: Sec. 66-39. Miscellaneous provisions. (1) Interest of members in system. At All assets of the fund are held in trust and at no time prior to the satisfaction of all liabilities under the system with respect to retirees and 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. (2) No reduction of accrued benefits. No amendment or ordinance shall be adopted by the city commission which shall have the effect of reducing the then vested accrued benefits of members' or a member's beneficiaries. (3) Domestic relations orders; retiree directed payments; exemption from execution, nonassignability. (a) Domestic relations orders. 1 . Prior to the entry of any domestic relations order which affects or purports to affect the system's responsibility in connection with the payment of benefits of a retiree, the member or retiree shall submit the proposed order to the_board for review to determine whether the system may legally honor the order. 2. If a domestic relations order is not submitted to the board for review prior to entry of the order, and the system is ordered to take action that it may not legally take, and the system expends administrative or legal fees in resolving the matter, the member or retiree who submits such an order will be required to reimburse the system for its expenses in connection with the order. (b) Retiree directed payments. The board may, upon written request by a retiree or by a dependent, when authorized by a retiree or the retiree's beneficiary, Ordinance No. 4197 Page 39 authorize the system to withhold from the monthly retirement payment those funds that are necessary to pay for the benefits being received through the city, to pay the certified bargaining agent of the city, to make payment to insurance companies for insurance premiums as permitted bv F.S. ch 185. and to make any payments for child support or alimony. (c) Exemption from execution, non-assignability. Except as otherwise provided by law, the pensions, annuities, or any other benefits accrued or accruing to any person under the provisions of this article and the accumulated contributions and the cash securities in the fund created under this article are hereby exempted from any state, county or municipal tax and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. (4) Pension validity. The board shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason. The board is empowered to purge the pension rolls or correct the pension amount of any person heretofore granted a pension under prior or existing law or any person hereafter granted a pension or heretofore granted under this article if the same is found to be erroneous, fraudulent or illegal for any reason; and to reclassify any person who has heretofore under any prior or existing law been or who shall hereafter under this article be erroneously, improperly or illegally classified. Any overpayments or underpayments shall be corrected and paid or repaid in a reasonable manner determined by the board. (5) Qualification of system. It is intended that the system will constitute a qualified public pension plan under the applicable provisions of the Code for a aualified plan under Code Section 401(a) and a aovernmental plan under Code Section 414(d), as now in effect or hereafter amended. Any modification or amendment of the system may be made retroactively, if necessary or appropriate, to qualify or maintain the System as a Plan Ordinance No. 4197 Page 40 meeting the requirements of the applicable provisions of the Code as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder. (6) Use of forfeitures. Forfeitures arising from terminations of service of members shall serve only to reduce future city contributions. (8) R{)tirco d.irofJwd paymonts. The board may, upon 'Nritten request by a retiree or by a dependent, when authorized by a retiree or the retiree's benefioiary, authorize the system to \O,ithhold from the monthly retirement payment those funds that me necessary to pay for the benefits being received through the City, to pay the oertified bargaining agent of the City, to make payment to insuranoe companies for insurance premiums if permitted by F.S. oh 185 and to make any payments for child support or alimony. ill Prohibited Transactions. Effective as of January 1. 1989. a board may not enqaqe in a transaction prohibited by Code Section 503(b ). fill USERRA. Effective December 12. 1994. notwithstandina any other provision of this system. contributions. benefits and service credit with respect to qualified military service are qoverned by Code Section 414(u) and the Uniformed Services Employment and Reemployment Riqhts Act of 1994. as amended. To the extent that the definition of "credited service" sets forth contribution requirements that are more favorable to the member than the minimum compliance requirements. the more favorable provisions shall apply. !ill Vestina. 2.=. Member will be 100% vested in all benefits upon attainment of the plan's aqe and service requirements for the Plan's normal retirement benefit: and Ordinance No. 4197 Page 41 b. A member will be 100% vested in all accrued benefits. to the extent funded. if the plan is terminated or experiences a complete discontinuance of emplover contributions. !..1Q) Electronic Forms. I n those circumstances where a written election or consent is not required bv the plan or the Code. an oral. electronic. or telephonic form in lieu of or in addition to a written form may be prescribed bv the board. However. where applicable. the board shall complv with Treas. ReQ. & 1.401(a)-21. f11.1 Comoliance with Chaoter 185. Florida Statutes. It is intended that the system will continue to qualifv for fundinQ under F.S. &185.08. AccordinQlv. unless otherwise required bv law. any provision of the system which violates the requirements of F.S. ch. 185. as amended from time to time. shall be superseded bv and administered in accordance with the requirements of such chapter. SECTION 14: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-40, Repeal or termination of system, to read as follows: Sec. 66-40. Repeal or termination of system. (1) This article establishing the system and fund, and subsequent ordinances pertaining to said system and fund, may be modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefitting hereunder, the amount of benefits which at the time of any such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to the extent that the assets of the fund may be determined to be inadequate. (2) If this article shall be repealed, or if contributions to the system are discontinued, or if there is a transfer, merger or consolidation of government units, services Ordinance No. 4197 Page 42 or functions as provided in Chapter 121, Florida Statutes, the board shall continue to administer the system in accordance with the provisions of this article, for the sole benefit of the then members, any beneficiaries then receiving retirement allowances, and any future persons entitled to receive benefits under one of the options provided for in this article who are designated by any of said members. In the event of repeal, discontinuance of contributions or transfer, merger or consolidation of government units, services or functions or if contributions to the system are discontinued, there shall be full vesting (100%) of benefits accrued to date of repeal and the 3ssets of the system Sh311 be 3110cated in 3n equit3ble m3nner to provide benefits on 3 proportionate b3Sis to the persons so entitled in 3ocord3noe with the provisions thereof such benefits shall be nonforfeitable. (3) The following sholl be the order of priority for purposes of alloc3ting the assets of the system as of the date of repeal of this 3rticle, or if oontributions to the system 3re discontinued with the d3te of such disoontinu3tion being determined by the board. (0) Apportionment shall first be m3de in respect of e3ch retiree reoei'/ing 3 retirement or dis3bility benefit hereunder on suoh d3te, e3ch person reoeiving 3 benefit on such dote on 3ccount of 0 retired or disabled (but since deceased) member, 3nd each member who h3S, by Guoh d3te, become eligible for norm31 retirement but has not yet retired, 3n amount 'lJhich is the aotuori31 equiv31ent of such benefit, pro':ided th3t, if such asset value be less than the aggreg3te of such amounts, suoh amounts sh311 be proportionately reduoed so that the aggreg3te of such reduced amounts '."Jill be equal to suoh 3sset value. (b) If there be 3ny DEmet '/alue remaining 3fter the 3pportionment under parogr3ph (3)(3) abo'/e, apportionment sholl ne><< be m3de in respect of e3ch member in the service of the oity on such date who is vested 3nd '-"ho is not entitled to 3n apportionment under paragraph (3)(0) 3bove, in the amount Ordinance No. 4197 Page 43 required to provide the aotuarial equivalent of the '.'ested portion of the aoorued normal retirement benefit, but not less than aooumulated oontributions (but not less than accumulated contributions), bm;ed on the credited service and average final oompensation as of suoh date, and each vested former member then entitled to a def-orred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the vested portion of the aoorued normal retirement benefit, provided that, if suoh remaining asset value be less than the aggregate of the amounts apportioned hereunder, such latter amounts shall be proportionately reduced GO that the aggregate of suoh reduced amounts will be equal to such remaining asset value. (0) If there be any asset value after the apportionments under paragraphs (3)(a) and (3)(b) above, apportionment shall be made in respect of each member in the Gervice of the city on suoh date who is not entitled to an apportionment under paragraphs (3)(a) and (3)(b) above in the amount equal to member's aooumulated contributions, provided that, if suoh remaining asset value be less than the aggregate of the amounts apportioned hereunder suoh latter amount shall be proportionately reduced so that the aggregate of such reduoed amounts will be equal to suoh remaining asset value. (d) If there be any asset '.'alue remaining after the apportionments under paragraphs (3)(a), (3)(b), and (3)(0) above, apportionment shall lastly be made in respeot of eaoh member inoluded in paragraph (3)(0) above to the extent of the aotuarial equivalent of the non vested accrued normal retirement benefit, less the amount apportioned in paragraph (3)(0), based on the oredited service and average final compensation as of such date, provided that, if such remaining asset value be leGG than the aggregate of the amounts apportioned hereunder, suoh amounts shall be reduoed so that the Ordinance No. 4197 Page 44 aggregate of suoh reduoed amounts will be equal to suoh remaining asset value. (e) In the eventthatthere be asset value remaining after the full apportionment specified in paragraphs (3)(a), (3)(b), (3)(0), ~md (3)(d), such excess shall be returned to the oity, less return of the state's oontributions to the state, provided that, if the excess is less than the total oontributions made by the oity and the state to the date of termination suoh exoess shall be divided proportionately to the total oontributions made by the oity and the state. The allooation of the fund provided for in this subseotion may, as deoided by the board be carried out through the purchase of insuranoe oompany oontraots to provide the benefits determined in accordanoe '.\'ith this subsection. The fund may be distributed in one sum to the persons entitled to said benefits or the distribution may be carried out in suoh other equitable manner as the board may direct. The fund may be continued in existence for purposes of subsequent distributions. If, at any time during the first ten (10) years atter the effeotive date of the ordinance originally establishing this system, the system shall be terminated or the full ourrent oosts of the syotem shall not ha'.'e been met, anything in the system to the oontrary notwithstanding, oity contributions 'Nhioh may be used for the benefit of anyone of the t\\'enty five (25) highest paid members on the effecti'.'e date, 'Nhose antioipated annual retirement allm:.lanoe provided by the oity's oontributions at member's normal retirement date would exceed one thousand five hundred dollars ($1,500.00), shall not exoeed the greater of either a) PNenty thousand dollars ($20,000.00), or b), an amount oomputed by multiplying the smaller often thousand dollars ($10,000.00) ort\a'enty (20) percent of suoh member's average annual earnings during his last five (5) years of servioe by the number of years of service sinoe the eff.octive date. In the event that it shall hereafter be determined by statute, oourt decision, ruling by the Commissioner of Internal Re'Jenue, or otherwise, that the provisions of this paragraph are not then neoessary to qualify the Ordinance No. 4197 Page 45 system under the [Internal Re'Jenue] Code, this paragraph shall be ineffootive without the necessity of further amendment of this artiole. (<I) I\.fter nil the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisfied I then and only then shall any remaining funds re'.'ert to the general fund of the oity. ill The fund shall be distributed in accordance with the followina procedures: a. The board shall determine the date of distribution and the asset value required to fund all the nonforfeitable benefits aftertakina into account the expenses of such distribution. The board shall inform the city if additional assets are required. in which event the city shall continue to financially support the plan until all nonforfeitable benefits have been funded. b. The board shall determine the method of distribution of the asset value. 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 police officer entitled to benefits under the plan as specified in subsection c.. c. The board shall distribute 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 Qiven retirement income is the actuarially computed sinQle-sum value of such retirement income. except that if the method of distribution determined under subsection b. involves the purchase of an insured annuity. the amount required to provide the Qiven retirement income is the sinale premium payable for such annuity. The actuarial sinale-sum value may not be less than the police officer's accumulated contributions to the plan. with interest Ordinance No. 4197 Page 46 if provided by the plan. less the value of any plan benefits previously paid to the police officer. fL If there is asset value remainina after the full distribution specified in subsection c.. and after the payment of any expenses incurred with such distribution. such excess shall be returned to the city. less return to the State of the State's contributions. provided that. if the excess is less than the total contributions made by the city and the State to date of termination of the plan. such excess shall be divided proportionately to the total contributions made by the city and the State. e. The board shall distribute. in accordance with subsection b.. the amounts determined under subsection c. If. after twenty-four (24) months after the date the plan terminated or the date the board received written notice that the contributions thereunder were beino permanently discontinued. the city or the board of the fund affected has not complied with all the provisions in this section. the Florida Department of Manaoement Services will effect the termination of the fund in accordance with this section. SECTION 15: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-41 , Direct transfers of eligible rollover distributions, elimination of mandatory distributions, to read as follows: Sec. 66-41. Direct transfers of eligible rollover distributions; Elimination of mandatory distributions. (1 ) Rollover distributions. (a) General. This section applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the system to the contrary that would Ordinance No. 4197 Page 47 otherwise limit a distributee's election under this section, a distributes may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributes in a direct rollover. (b) Definitions. 1. 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: 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 distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Section 401 (a)(9) of the [Internal Revenue] Code; and the portion of any distribution that is not includible in gross income. AAy Effective January 1. 2002. any portion of any distribution which would be includible in gross income as after-tax emplovee contributions will be an eligible rollover distribution if the distribution is made to an individual retirement account described in Section 408(a)~ to an individual retirement annuity described in Section 408(b)~ 9f to a qualified defined contribution plan described in Section 401 (a) or 403(a) that agrees to separately account for amounts so transferred (and earninQs thereon), 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: or on or after January 1. 2007. to a Qualified defined benefit plan described in Code Ordinance No. Page 48 Section 401(a) or to an annuity contract described in Code Section 403(b). that aarees to separately account for amounts so transferred (and earninas thereon). includina separately accountina for the portion of the distribution that is includible in aross income and the portion of the distribution that is not so includible. 2. Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Section 408(a) of the [Internal Revenue] Code~ an individual retirement annuity described in Section 408(b) of the [Internal Revenue] Code~ an annuity plan described in Section 403(a) of the [Internal Revenue] Code: effective January 1. 2002, an eligible deferred compensation plan described in Section 457(b) of the [Internal Revenue] Code which is maintained by an eligible employer described in Section 457(e)(1 )(A) of the [Internal Revenue] Code and which agrees to separately account for amounts transferred into such plan from this plan: effective January 1. 2002, an annuity contract described in Section 403(b) of the [Internal Revenue] Code~ 9f a qualified trust described in Section 401 (a) of the Code: or effective January 1. 2008. a Roth IRA described in Section 408A of the [Internal Revenue] Code, that accepts the distributee's eligible rollover distribution. This definition shall also apply in the case of an eligible rollover distribution to the surviving spouse. 3. Distributee: A distributee includes an employee or former employee. In addition, It also includes the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse and the employee's or former employee's spouse or former spouse. Effective January 1. 2007. it further includes a non-spouse Ordinance No. 4197 Page 49 beneficiary who is a desianated beneficiary as defined bv Code Section 401(a)(9)(E). However. a non-spouse beneficiary may rollover the distribution onlv to an individual retirement account or individual retirement annuity established for the purpose of receivina the distribution and the account or annuity will be treated as an "inherited" individual retirement account or annuity. 4. Direct rollover. A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. (2) Rollovers or transfers into the fund. On or after January 1, 2002, the system will accept, solely for the purpose of purchasing credited service as provided herein, permissible Member requested transfers of funds from other retirement or pension plans, member rollover cash contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as follows: (a) Transfers and direct rollovers or member rollover contributions from other plans. The system will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in Section 401 (a) or 403(a) of the [Internal Revenue] Code, from an annuity contract described in Section 403(b) of the [Internal Revenue] Code or from an eligible plan under Section 457(b) ofthe [Internal Revenue] 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. The system will also accept legally permissible member requested transfers of funds from other retirement or pension plans. (b) Member rollover contributions from IRAs. The system will accept a member rollover contribution of the portion of a distribution from an individual retirement account or annuity described in Section 408(a) or 408(b) of the Ordinance No. 4197 Page 50 [Internal Revenue] Code that is eligible to be rolled over and 'l.'Quld otherv:ise be includible in gross income. (3) Elimination of Mandatory Distributions. Notwithstanding any other provision herein to the contrary, in the event this Plan provides for a mandatory (involuntary) cash distribution from the Plan not otherwise required by law, for an amount in excess of one- thousand dollars ($1,000.00), 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 lump sum or to rollover the lump sum amount. SECTION 16: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-43, Military service prior to employment, subsection (2), , to read as follows: (2) Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement, but no purchase is permitted for 3 period of less than one year. SECTION 17: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-44, Prior police service, to read as follows: Sec. 66-44. Prior police service. Unless otherwise prohibited by law, and except as provided for in section 66-31, the years or fractional parts of years that a member previously served as a police officer with the city during a period of previous employment and for which period accumulated contributions were withdrawn from the fund, or the years and fractional parts of years that a member served as a full-time police officer for any other municipal, county or state law Ordinance No. 4197 Page 51 enforcement department in the State of Florida shall be added to his years of credited service provided that: (1 ) The member contributes to the fund the sum that he would have contributed, based on his salary and the member contribution rate in effect at the time that the credited service is requested, had he been a member of the system for the years or fractional parts of years for which he is requesting credit plus amounts actuarially determined such that the crediting of service does not result in any cost to the fund plus payment of costs for all professional services rendered to the board in connection with the purchase of years of credited service. (2) Multiple requests to purchase credited service pursuant to this section may be made at any time prior to retirement, but no purchaGe is permitted for a period of leGs than one year. (3) Payment by the member of the required amount shall be made within six (6) months of his request for credit, but not later than the retirement date, and shall be made in one lump sum payment upon receipt of which credited service shall be given. (4) The maximum credit for prior service with another law enforcement department other than with the City of Sanford shall be five (5) years of credited service and shall count for all purposes, except vesting and eligibility for not-in-line of duty disability benefits. (5) There shall be no maximum credit for prior service with the City of Sanford police department and all years of credited service shall count for all purposes, including vesting. (6) In no event, however, may credited service be purchased pursuant to this section for prior service with any other municipal, county or state law Ordinance No. 4197 Page 52 enforcement agency, if such prior service forms or will form the basis of a retirement benefit or pension from a different employer's retirement system or plan as set forth in section 66-36, subsection (f)(8)b (f)(11 )b. ill For purposes of determinina credit for prior service as a police officer as provided for in this section. in addition to service as a police officer in this state. credit mav be purchased bv the member in the same manner as provided above for federal. other state, county or municipal service if the prior service is recoanized bv the Criminal Justice Standards and Traininq Commission within the Department of Law Enforcement. as provided under Chapter 943. Florida Statutes. or the police officer provides proof to the board that such service is equivalent to the service required to meet the definition of a police officer under Sec. 66-31. SECTION 18: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 66-46, Deferred retirement option plan, subsection (d)(2)a., to read as follows: (d)(2) a. Unless the member elects otherwise, distribution of his DROP account shall be made in a lump sum, subject to the direct rollover provisions set forth in subsection (d)(6). /\ member may elect, however, in suoh time and manner as the board shall prescribe, that his DROP distribution be used to purohm;e a nonforfeitable fixed annuity payable in such form as the member may eleat. Elections under this paragraph shall be in writing and shall be made in such time or manner as the board shall determine. ***** Ordinance No. 4197 Page 53 SECTION 19: That Chapter 66, Pensions and Retirement, Article II, of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by adding Section 66-47, Convictions and forfeitures; False, misleading or fraudulent statement, to read as follows: Sec. 66-47. Conviction and forfeiture: false. misleadina or fraudulent statements. ill It is unlawful for a person to willfully and knowinqly make. or cause to be made. or to assist. conspire with. or urae another to make. or cause to be made. any false. fraudulent. or misleadinq oral or written statement or withhold or conceal material information to obtain any benefit from the system. m A person who violates subsection (1) commits a misdemeanor of the first dearee. punishable as provided in F.S. &775.082 or &775.083. Ql In addition to any applicable criminal penalty. upon conviction for a violation described in subsection (1). a member or beneficiary of the system may. in the discretion of the board. be required to forfeit the riqht to receive any or all benefits to which the person would otherwise be entitled under the system. For purposes of this subsection. "conviction" means a determination of quilt that is the result of a plea or trial. reqardless of whether adiudication is withheld. SECTION 20: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 21: Specific authority is hereby granted to codify and incorporate this Ordinance in the existing Code of Ordinances of the City of Sanford. SECTION 22: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. Ordinance No. 4197 Page 54 SECTION 23: That this Ordinance shall become effective upon adoption. PASSED AND ADOPTED this 11th day of January, A.D. 2010. CITY COMMISSION OF THE CITY OF SANFORD, FLORIDA "----=:~ -. =+<. '-----.. LINDA K HN, MAYOR · ATTEST: ~(?~ CYNTHIA PORTER, DEPUTY CITY CLERK DM/san/pol/11-16-09.ord Ordinance No. 4197 Page 55