HomeMy WebLinkAbout4198 FF Pension
ORDINANCE NO. 4198
AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA,
AMENDING CHAPTER 66, PENSIONS AND RETIREMENT,
ARTICLE III, FIREFIGHTERS' RETIREMENT SYSTEM;
AMENDING SECTION 66-71, DEFINITIONS; AMENDING
SECTION 66-73, BOARD OF TRUSTEES; AMENDING
SECTION 66-74, FINANCES AND FUND MANAGEMENT;
AMENDING SECTION 66-75, CONTRIBUTIONS; AMENDING
SECTION 66-76, BENEFIT AMOUNTS AND ELIGIBILITY;
AMENDING SECTION 66-77, OPTIONAL FORMS OF
BENEFITS; AMENDING SECTION 66-79, MISCELLANEOUS
PROVISIONS; AMENDING SECTION 66-80, REPEAL OR
TERMINATION OF SYSTEM; AMENDING SECTION 66-81,
DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS, ELIMINATION OF MANDATORY
DISTRIBUTIONS; AMENDING SECTION 66-83, MILITARY
SERVICE PRIOR TO EMPLOYMENT; AMENDING SECTION
66-84, PRIOR FIRE SERVICE; AMENDING SECTION 66-86,
DEFERRED RETIREMENT OPTION PLAN; ADDING
SECTION 66-87, 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 III, ofthe City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-71, Definitions, to amend the definitions of "Actuarial equivalent",
"Base pay", "Firefighter", 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 adooted by the board with the advice of the plan's actuary.
such that actuarial assumptions are not subiect to city discretion.
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Ordinance No. 4198
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 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. Base pay shall also include "Education Incentive",
"Engineer Incentive", as well as "Paramedic Incentive" paid to firefighters who are certified
as paramedics and Specialty Pay. Compensation in excess of the limitations set forth in
Section 401 (a)(17) of the Code Gholl be diErogoFded as of the first day of the plan year
shall be disreaarded for any ouroose. includina emoloyee contributions or any benefit
calculations. The annual comoensation of each member taken into account in determinina
benefits or emoloyee contributions for any olan year beainnina on or after January 1. 2002.
may not exceed $200.000. as adiusted for cost-of-livina increases in accordance with Code
Section 401(a)(17)(B). Comoensation means comoensation durina the fiscal year. The
cost-of-Iivina adiustment in effect for a calendar year aoolies to annual comoensation for
the determination oeriod that beains with or within such calendar year. If the determination
period consists of fewer than 12 months. the annual comoensation limit is an amount eaual
to the otherwise aoolicable annual compensation limit multiolied by a fraction. the
numerator of which is the number of months in the short determination oeriod. and the
denominator of which is 12. If the comoensation for any orior determination period is taken
into account in determinina a member's contributions or benefits for the current plan year.
the compensation for such prior determination oeriod is subiect to the applicable annual
comoensation limit in effect for that prior oeriod. 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.
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Ordinance No.
Page 2
Credited service means the total number of years and fractional parts of years of
service as a firefighter with member contributions when required, omitting intervening years
or fractional parts of years when such member was not employed by the city as a
firefighter. Upon any reemployment, a firefighter shall not receive credit for years or
fractional parts of years of service for which he has withdrawn his accumulated
contributions from the fund, unless the firefighter repays into the fund, within ninety (90)
days after his reemployment as a firefighter, all the contributions he has withdrawn, plus
interest for the period the funds were withdrawn at the rate assumed by the actuarial
valuation for the fund on the contribution from the date of withdrawal to date of repayment.
Such repayment of contributions shall include any additional lump sum amounts withdrawn
equal to five (5) percent of the member's base pay for all years of credited service from
October 1, 1976 to June 30, 1998, as referenced in Section 2-285(e)(4), plus interest
thereon at the rate assumed by the actuarial valuation. A member may voluntarily leave
his accumulated contributions in the fund for a period of five (5) years after leaving the
employ of the fire department pending the possibility of being reemployed as a firefighter,
without losing credit for the time that he was a member of the system. If a vested member
leaves the employ of the fire department, his accumulated contributions will be returned
only upon his written request. If a member who is not vested is not reemployed as a
firefighter with the fire 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 ofthe 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.
Ordinance No. 4198
Page 3
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 firefighter 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 the military servioo of
the Armed Foraes of the United States, the United States Morchant Marine or the United
States Coast GuaFd, ':oluntmily or involuntarily performs "Qualified Military Service"
consistinQ of voluntary or involuntary "service in the uniformed services" as defined in the
Uniformed Services Employment and Reemployment Riahts Act (USERRA) (P.L.1 03-353),
after separation from employment as a firefighter with the city to perform training or service,
shall be added to his years of credited service for all purposes, including vesting, provided
that:
La} The member is entitled to reemployment under the provisions of USERRA.
(a 12) The member ffitfSt return2 to his employment as a firefighter 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 Act (USERRA),
(P.L.103363).
(c) The maximum credit for military service pursuant to this paragraph shall be
five (5) years.
,(Q) 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.
Ordinance No. 4198
Page 4
In the event a member dies on or after J~nuary 1.2007. while oerformina USERRA
Qualified Military Service. the beneficiaries of the member are entitled to anv benefits
(other than benefit accruals relatina to the oeriod of aualified military service) as if the
member had resumed emolovment and then died while emoloved.
*****
Firefighter means an actively employed full-time person employed by the city,
including his initial probationary employment period, who is certified as a firefighter as a
condition of employment in accordance with the provisions of Section 633.35, Florida
Statutes, and whose duty it is to extinguish fires, to protect life and to protect property. The
term includes all certified. suoervisory. and command oersonnel whose duties include. in
whole or in oart. the suoervision. trainina. auidance. and manaaement resoonsibilities of
full-time firefiahters. oart-time firefiahters. or auxiliary firefiahters but does not include oart-
time firefiahters or auxiliary firefiahters.
SECTION 2: That Chapter 66, Pensions and Retirement, Article III, ofthe City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-73, Board of Trustees, to read as follows:
Sec. 66-73. Board of trustees.
(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
of trustees 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, and two of whom shall
be members of the system, who shall be elected by a majority of the firefighters 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
Ordinance No. 4198
Page 5
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
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 of two years, unless he or she sooner
leaves the employment of the City as a firefighter 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 firefighter
trustees shall serve staggered terms. A City official who is otherwise eligible for
appointment to the board shall not be disqualified from consideration solely on the basis of
his or her official status unless so required by law. 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. The board of trustees shall meet at
least quarterly each year. The board of trustees shall be a legal entity with, in addition to
other powers and responsibilities contained herein, the power to bring and defend lawsuits
of every kind, nature, and description. Seotion 2 122(e) of the City Code shall oontrol
romovals from offioe.
(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 of the actions, proceedings, or hearings of the board. The trustees
shall not receive any compensation as such, but may receive expenses and per diem as
provided by law.
(3) Voting. Each trustee shall be entitled to one (1) vote on the board. Three (3)
affirmative votes shall be necessary for any decision by the trustees at any meeting of the
Ordinance No. 4198
Page 6
board. A trustee shall abstain from votina as the result of a conflict of interest and shall
complv with the provisions of Section 112.3143. Florida Statutes.
(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.
(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.
Ordinance No. 4198
Page 7
(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.
0) Roster of retirees. The secretary of the board shall keep a record of all
persons enjoying a pension under the provisions of this ordinance 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
exempt from disclosure to the extent provided for in F.S. ch. 119.
(k) 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 ~175.261.
(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
shall indemnify 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 paragraphs (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,
Ordinance No. 4198
Page 8
and in either event will indemnify 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 III, ofthe City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-74, Finances and fund management, subsection (6)(b)5.b., to read
as follows:
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b. Up.to teA twenty-five percent (4Q.% 25%) of the assets of the fund at
market value. may be invested in foreign securities.
* * * **
SECTION 4: That Chapter 66, Pensions and Retirement, Article III, of the City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-75, 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 diffor.onoo in oaoh yoar, bet-woon tho
total aggrogato momber oontributions for tho yoar, plus stato oontributions '::hioh ar.o logally
availablo to offsot oity funding for suoh yoar, and tho total oost for the yoar required city
Ordinance No. 4198
Page 9
contribution, as shown by the most rooent 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 ee-
76(e)(4) 66-76(e)(3). Such annual requirement shall be funded in quarterly installments.
The total cost for any year shall be defined as the total normal oost plus the additional
amount suffioient to amortize the unfunded past service liability as provided in Part VII of
Chapter 112, Florida Statutes.
SECTION 5: That Chapter 66, Pensions and Retirement, Article III, ofthe City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-76, Benefit amounts and eligibility, subsection (a), Normal retirement,
to add subsection (a)(3), Required distribution date, to read as follows:
Ql 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
vear 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 6: That Chapter 66, Pensions and Retirement, Article III, ofthe City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-76, Benefit amounts and eligibility, subsection (b), Early retirement,
to add subsection (b)(3), Required distribution date, to read as follows:
Ql 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
yearfollowina 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 emoloyment with the city.
SECTION 7: That Chapter 66, Pensions and Retirement, Article III, of the City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
Ordinance No. 4198
Page 10
amending Section 66-76, 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) aoolies onlv when the member's soouse
is the sole desianated beneficiarv. The soouse 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 soouse beneficiary
shall receive a benefit payable for ten (10) years, beginning on the
date that the deceased member would have been eligible for early or
normal retirement, at the option of the soouse 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 soouse 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.
Ordinance No. 4198
Page 11
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 firefighter (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.
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 66-77, 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 Notwithstandina anvthina contained in this section to the contrary. in
any event. distributions to the spouse beneficiarv will beain bv
December 31 of the calendarvear immediatelvfollowina the calendar
Ordinance No. 4198
Page 12
year in which the member died. or bv a date selected oursuant 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%.
9.:. If the survivina soouse beneficiary commences receivina a benefit
under subsection a. or b. above. but dies before all oavments are
made. the actuarial value of the remainina benefit will be oaid to the
soouse beneficiary's estate in a lumo sum.
m Deceased Members Vested or Eliaible for Retirement with Non-Soouse
Beneficiary. This subsection aoolies onlv when the member's soouse is not
the beneficiary or is not the sole desianated beneficiary. but there is a
survivina beneficiary. The beneficiary of any member who dies and who. at
the date of his death was vested or eliaible for earlv or normal retirement.
shall be entitled to a benefit as follows:
a. If the member was vested. but not eliaible for normal or earlv
retirement and the member's death did not result directlv from an
occurrence arisina in the oerformance of duty. the beneficiary will
receive a benefit oavable for ten (10) years. The benefit will beain bv
December 31 ofthe calendar year immediatelv 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 comoensation and actuariallv reduced to reflect the
commencement of benefits orior to the normal retirement date.
h:. If the deceased member was eliaible for normal or earlv retirement.
the beneficiary will receive a benefit oavable 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
Ordinance No. 4198
Page 13
deceased member's credited service and averaae final comoensation
as of the date of his death and reduced for early retirement. if
aoolicable.
c. In any event. if the member's death is caused by the oerformance of
his duties as a firefiohter (in line of duty). the beneficiary shall receive
a benefit oayable 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 comoensation as of the
date of death. The minimum benefit shall be forty (40) oercent of
averaae final comoensation. The oresumotions in subsection (d)(2) of
this section shall aooly in determinina whether a death was in line of
duty.
d. A beneficiary may not elect an ootional form of benefit. however the
board may elect to make a lumo sum oayment oursuant to Sec. 66-
77. subsection (7).
~ A beneficiary. mav. in lieu of any benefit orovided for in a.. b. or c.
above. elect to receive a refund of the deceased member's
accumulated contributions.
1:. If a survivina beneficiary commences receivina a benefit under
subsection a. or b. above. but dies before all Qayments are made. the
actuarial value of the remainina benefit will be oaid to the survivina
beneficiary's estate by December 31 of the calendar year of the
beneficiary's death in a lumo sum.
9.:. If there is no survivina beneficiary as of the member's death. and the
estate is to receive the benefits. the actuarial eauivalent of the
Ordinance No. 4198
Page 14
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 III, of the City Code
of the City of Sanford entitled Firefighters' 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 his normal retirement
9ate, the payment due next preceding the date of such recovery, or
b. If the retiree dies without recovering from disability or 3ttnins his
norm31 retirement dote .....hile 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 66-77, 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 III, of the City Code
of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
Ordinance No. 4198
Page 15
amending Section 66-76, Benefit amounts and eligibility, subsection (f), Maximum pension,
to read as follows:
(f) Maximum pension.
(1) Basic Nmitat.ion. Subject to the adjustments heminafter set forth, the
maximum amount of annual r{)timment inoome payable with r{)spect to a
member under this system shall not exceed one hundred sixty thous~md
dollars ($160,000.00).
For purposes of applying the above limitation, benefits payable in any form
othor than a straight life annuity with no anoillary benefits shall be adjusted,
as providod by Tmasury Regulations, so that suoh benefits am the actuarial
equi':alent of a straight life annuity. For purposes of this subsection, the
following benefits shall not be taken into aooount:
a. .^.ny anoillary benefit 'A'hioh is not dimotly related to retimment inoome
benef.its;
b. Any other benefit not mquimd under Section 415(b )(2) of the [Internal
Revenue] Code and Regulations themunderto be takon into aooount
for purposes of the limitation of Section 41 a(b)( 1) of the [I nternal
Revenue] Code.
(2) P-arti~pat,ion in other dotinod bORet;t fi)klRs. Tho limitation of this subsoction
v.'ith mspoct to any member ':.rho at any timo has been a membor in any
other dofinod bonofit plan (as definod in Seotion 4140) of the [Internal
Revonuo] Code) maintainod by the oity shall apply as if the total benefits
payable under all defined benefit plans in 'A'hioh the member has been a
member'l.'ere payable from one (1) plan.
l')~ 1\"/' ~ ~.,. .~ ~.
,0, /uJJusLmonrS H7 .ffR{LULlons.
a. In the ovent the member's retiromont benefits beoome payable before
age sixty a'.'o (82), the one hundred sixty thousand dollar
Ordinance No. 4198
Page 16
($160,000.00) limitation presoribed by this subseotion shall bo
reduoed in aooordanoe ':/ith regulations issued by the Seoretary of the
Treasury pl:lrGuant to the provisions of Section 415(b) of the [Internal
Re'/enue] Code, so that such limitation (as so reduced) oqu~:lIs ~m
~mnual benefit (beginning when suoh retirement inoome benefit
begins) whioh is equivalent to a one hundred sixty thousand dollar
($160,000) annual benefit beginning at age sixty two (62).
b. In the event the member's benefit is based on at least fifteen (15)
years of oredited servioe, the adjustments provided for in a. above
shall not apply.
o. The reductions provided for in a. abo'/e shall not be applicable to
disability benefits paid pursuant to Sec. 66 76, Benefits amounts and
eligibility, subsection (d), or pre retirement death benefits paid
pursuant to Sec. 66 76, Benefit amounts and eligibility, subsection (0).
d. If the member's retirement benefit beoomes payable after age
sixty five (65), for purposes of determining whether this benefit meets
the limitation set forth in subseotion (f)( 1) of this section, such benefit
shall be adjusted so that it is actuarially equivalent to the benefit
beginning at age sixty fi'.'e (65). This adjustment shall be made in
accordance ':/ith regulations promulgated by the Seoretary of the
Treasury or his delegate.
(4) Less theR teR years of sori/Go. Tho maximum retiroment benefits payable
under this subsection to any member who has completed less than ten (10)
years of oredited service ':lith the oity shall be the amount determined under
subsection (f)(1) of this section multiplied by a fraction, the numerator of
'-',hioh is the number of the member's years of oredited service and the
denominator of whioh is ten (10). The reduction provided for in this
Ordinance No. 4198
Page 17
subseotion shall not be applioable to disability benefits paid pursuant to Seo.
66 76, Benefits amounts and eligibility, subseotion (d), or pre retirement
death benefits paid pursuant to Seo. 66 76, Benefit amounts and eligibility,
subsection (c).
(6) $10,000.00 limIt. Notwithstanding the foregoing, the retirement benefit
payable with respect to a member shall be deemed not to exoeed the
limitations set forth in this subsection if the benefits payable, ':/ith respect to
such member under this system and under all other qualified defined benefit
pension plans to which the oity oontributes, do not exceed ten thousand
dollars ($10,000.00) for the applioable plan year and for any prior plan year
and the city has not at any time maintained a qualified defined contribution
plan in whioh the member participated.
(6) Reoootion of benofits. Reduction of benefits andJor contributions to all plans,
v:here required, shall be aooomplished by first reducing the member's bene~t
under any defined benefit plans in whioh member partioipated, suoh
reduction to be made first with respeot to the plan in whioh member most
reoently aoorued benefits and thereafter in suoh priority as shall be
determined by the board and the plan adminiEtrntor of Euoh other plans, and
next, by reduoing or allooating exoess forfeitures for defined contribution
plans in v:hich the member partioipated, Euoh reduction to be made first 'Nith
reEpect to the plan in whioh member most reoently accrued benefits and
thereafter in such priority as shall be eEtabliEhed by the board and the plan
administrator for suoh other planE provided, however, that neoeEEary
reduotionE may be made in a different manner and priority pursuant to the
agreement of the boar<l and the plan administrator of all other plans oovering
such member.
Ordinance No. 4198
Page 18
(7) Cost af Ji','!ng adjf;Jstmaflts. Tha limitations as statad in subsectians (f)(1 ),
(f)(2) and (f)(3) herein shall be adjusted to the time payment of a benefit
begins in accOFdance '/lith any cost of living adjustments prescribed by the
Secretary of the Treasury pUrGu:mt to Section 115(d) of the [Internal
Revenue] Code.
(8) /\dditiafwl limitatiofl on f3ensiofl banents. Notwithstanding anything herein to
the contr~u)':
a. The normal retirement benefit or pension payoble to 0 retiree '.vho
becomes a member of the system and who hos not previously
participated in such system, on or after January 1, 1980, sholl not
exceed one hundred (100) peroent of his a'/erage final compensation.
Hov:ever, nothing contained in this subsection shall opply to
supplemental retirement benefits or to pension increases ottributable
to cost of living increases or adjustments.
b. No member of the system shall be allov:ed to reoeive 0 retirement
benefit or pension which is in port or in whole based upon any service
with respect to \":hich the member is already receiving, or will reoeive
in the f.uture, a retirement benefit or pension from a dif.f.orent
employer's retirement system or pion. This restriction does not apply
to social seourity benefits or foderal benefits under Chapter 67, Title
10, U.S. Code.
ill Basic limitation. NotwithstandinQ any other oroyisions of this system to the
contrary. the member contributions oaid to. and retirement benefits oaid
from. the system shall be limited to such extent as may be necessary to
conform to the requirements of Code Section 415 for a Qualified retirement
olan. Before January 1. 1995. a plan member may not receive an annual
benefit that exceeds the limits soecified in Code Section 415(b). subiect to
Ordinance No. 4198
Page 19
the aoolicable adiustments in that section. On and after January 1. 1995. a
olan member may not receive an annual benefit that exceeds the dollar
amount soecified in Code Section 415(b)(1 )(A) ($160.000). subiect to the
aoolicable adiustments in Code Section 415(b) and subiect to any additional
limits that may be soecified in this System. For ourooses 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 aoolicable at the annuity startina date is
reduced to an actuariallv eauivalent amount (determined usina the
assumotions soecified in Treasury Reaulation Section 1.415(b)-1(c)(2)(ii))
that takes into account the death benefits under the form of benefit.
Q) Benefits Not Taken into Account. For ourooses of this Section. the followina
benefits shall not be taken into account in aoolvina these limits:
2.:. Anv ancillary benefit which is not directlv related to retirement income
benefits:
!L Anv other benefit not reauired under ~415(b )(2) of the Code and
Reaulations thereunder to be taken into account for ourooses of the
limitation of Code Section 415(b)( 1 ).
~ COLA Effect. Effective on and after January 1. 2003. for ourooses of
aoolvina the limits under Code Section 415(b) (the "Limit"). the followina will
aoolv:
2.:. A member's aoolicable limit will be aoolied to the member's annual
benefit in the member's first calendar year of benefit oavments
without reaard to any automatic cost of Iivina adjustments:
b. thereafter. in any subseauent calendar year. a member's annual
benefit. includina any automatic cost of Iivina increases. shall be
Ordinance No. 4198
Page 20
tested under the then aoolicable benefit limit includina any adjustment
to the Code Section 415(b)(1 )(A) dollar limit under Code Section
41S( d). and the reaulations thereunder: but
c. in no event shall a member's benefit oayable under the system in any
calendar year be areater than the limit aoolicable at the annuity
startina date. as increased in subseauent years pursuant to Code
Section 41S(d) and the reaulations thereunder.
Unless otherwise soecified in the system. for ourposes of aoolyina the limits
under Code Section 41S(b). a Member's aoolicable limit will be aoolied takina
into consideration cost of Iivina increases as reauired by Section 41S(b) of
the Code and aoolicable Treasury Reaulations.
@ Other Adiustments in Limitations.
~ In the event the member's retirement benefits become oayable before
aae sixty-two (62). the limit orescribed by this section shall be reduced
in accordance with reaulations issued by the Secretary of the
Treasury pursuant to the provisions of Code Section 41S(b) of the
Code. so that such limit (as so reduced) eauals an annual straiaht life
benefit (when such retirement income benefit beains) which is
eauivalent to a one hundred sixty thousand dollar ($160.000) annual
benefit beainnina at aae sixtv-two (62).
~ In the event the member's benefit is based on at least fifteen (1S)
years of credited service as a full-time emoloyee of the fire or police
deoartment of the City. the adiustments provided for in (S)a. above
shall not aooly.
Q:. The reductions orovided for in (S)a. above shall not be aoolicable to
disability benefits pursuant to Sec. 66-76( d). or ore-retirement death
benefits paid pursuant to Sec. 66-76( c).
Ordinance No. 4198
Page 21
d. In the event the member's retirement benefit becomes oayable after
aae sixty-five (65). for ourooses of determinina whether this benefit
meets the limit set forth in subsection (1) herein. such benefit shall be
adiusted so that it is actuarially eauivalent to the benefit beainnina at
aae sixty-five (65), This adiustment shall be made in accordance with
reaulations oromulaated by the Secretarv of the Treasurv or his
deleaate.
@ Less than Ten (10) Years of Service. The maximum retirement benefits
oayable under this section to any member who has comoleted less than ten
(10) years of credited service with the City shall be the amount determined
under subsection (1) of this section multiolied 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 orovided by this subsection
cannot reduce the maximum benefit below 10%. The reduction orovided for
in this subsection shall not be aoolicable to disability benefits paid pursuant
to Sec. 66-76(d). or ore-retirement death benefits paid pursuant to Sec. 66-
76(c).
ill Particioation in Other Defined Benefit Plans. The limit of this section with
resoect to any member who at any time has been a member in any other
defined benefit olan as defined in Code Section 414(j) maintained by the City
shall aooly as if the total benefits oayable under all City defined benefit plans
in which the member has been a member were oayable from one olan.
@} Ten Thousand Dol/ar ($10.000) Limit. Notwithstandina the foreaoina. the
retirement benefit oayable with resoect to a member shall be deemed not to
exceed the limit set forth in this section if the benefits oayable. with resoect
to such member under this system and under all other aualified defined
benefit pension plans to which the City contributes. do not exceed ten
Ordinance No. 4198
Page 22
thousand dollars ($10.000) for the aoolicable olan year and for any orior olan
year and the City has not any time maintained a Qualified defined
contribution olan in which the member oarticioated.
ill1 Reduction of Benefits. Reduction of benefits and/or contributions to all
olans. where required. shall be accomolished by first reducinQ the member's
benefit under any defined benefit olans in which member oarticioated. such
reduction to be made first with resoect to the olan in which member most
recently accrued benefits and thereafter in such oriority as shall be
determined by the board and the olan administrator of such other olans. and
next. by reducina or allocatinQ excess forfeitures for defined contribution
olans in which the member oarticioated. such reduction to be made first with
resoect to the olan in which member most recently accrued benefits and
thereafter in such oriority as shall be established by the board and the olan
administrator for such other olans orovided. however. that necessary
reductions may be made in a different manner and oriority oursuant to the
aQreement of the board and the olan administrator of all other olans coverina
such member.
{1Ql Service Credit Purchase Limits.
~ Effective for oermissive service credit contributions made in limitation
years beainnina after December 31. 1997. if a member makes one or
more contributions to ourchase oermissive service credit under the
system. as allowed in Sec. 66-83 and Sec. 66-84. then the
requirements of this section will be treated as met only if:
.L the requirements of Code Section 415(b) are met. determined
by treatinQ the accrued benefit derived from all such
contributions as an annual benefit for ourooses of Code
Section 415(b)' or
Ordinance No. 4198
Page 23
6:. the reauirements of Code Section 415(c) are met. determined
by treatina all such contributions as annual additions for
ourooses of Code Section 415( c).
3. For ourposes of aoolyina suboaraaraoh (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 suboaraaraoh c.. and for
ourooses of aoolyina suboaraaraoh (1 o)b.2. the system will not
fail to meet the oercentaae limitation under Section
415( c)( 1 )(8) of the Code solely by reason of this suboaraaraoh
c.
b. For ourposes of this subsection the term "oermissiye service credit"
means service credit-
1:. recoanized by the system for ourposes of calculatina a
member's benefit under the olan.
2. which such member has not received under the olan. and
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 oermissive service credit contributions made in
limitation years beainnina after Dec~mber 31. 1997. such term
may. if otherwise orovided by the system. include service credit
for oeriods for which there is no oerformance of service. and.
notwithstandina clause (10)b.2.. may include service credited
in order to orovide an increased benefit for service credit which
a member is receivina under the system.
Ordinance No. 4198
Page 24
~ For purposes of applyina the limits in this subsection (10). only and for
no other purpose. the definition of compensation where applicable will
be compensation actually paid or made available durina a calendar
year. except as noted below and as permitted by Treasurv
Reaulations Section 1.415(c)-2. or successor reaulations. 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
reaard to any rules under Code Section 3401(a) that limit the
remuneration included in waaes based on the nature or location of the
employment or the services performed (such as the exception for
aariculturallabor in Code Section 3401(a)(2).
.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 Januarv 1. 2007.
compensation for the calendar year will also include
compensation paid by the later of 2% months after an
Ordinance No. 4198
Page 25
emolovee's severance from emolovment or the end of the
calendar year that includes the date of the emolovee's
severance from emolovment if:
ill the oavment is reaular comoensation for services durina
the emolovee's reaularworkina hours. orcomoensation
for services outside the emolovee's reaular workina
hours (such as overtime or shift differential).
commissions. bonuses or other similar oavments. and.
absent a severance from emolovment. the payments
would have been paid to the emolovee while the
emolovee continued in emolovment with the emolover:
ill
!ill the oavment is for unused accrued bona fide sick.
vacation or other leave that the emolovee would have
been able to use if emolovment had continued.
3. Back Day. within the meanina of Treasurv Reaulations
Section 1.415(c)-2(a)(8)' shall be treated as comoensation for
the limitation year to which the back Day relates to the extent
the back Day reoresents waaes and comoensation that would
otherwise be included under this definition.
d. Notwithstandina any other orovision of law to the contrarv. the board
may modify a reauest bv a member to make a contribution to the
system if the amount of the contribution would exceed the limits
orovided in Code Section 415 bv usina the followina methods:
.L If the law reauires a lumo sum oavment for the purchase of
service credit. the board may establish a periodic payment
Ordinance No. 4198
Page 26
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 (10)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.
f11l Additional Limitation on Pension Benefits. Notwithstandina anvthina herein to
the contrary:
SL. The normal retirement benefit or pension payable to a retiree who
becomes a member of the system and who has not oreviously
participated in such system. on or after Januarv 1. 1980. shall not
exceed one hundred percent (100%) of his averaae final comoensa-
tion. However. nothino contained in this section shall apoly to
suoplemental retirement benefits orto pension increases attributable
to cost-of-Iivino increases or adiustments.
~ No member of the system shall be allowed to receive a retirement
benefit or pension which is in Dart or in whole based upon any service
with resoect 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 Chaoter 67. Title
10. U.S. Code.
SECTlpN 10: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
Ordinance No. 4198
Page 27
amending Section 66-76, 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 Januarv 1. 1989. the plan will pavall
benefits in accordance with a aood faith interpretation of the
reauirements of Code Section 401(a)(9) and the reaulations in effect
under that section. as applicable to a aovernmental plan within the
meanina of Code Section 414(d). Effective on and after Januarv 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.
o. ROf/l:Jiromonts of Troasl:H}' rogl:Jlations ifloorPOF:Jwd. /\11 distributions
required under this seotion will be determined and made in
aooordanoe with the Treasury regubtions under section 101 (a)(9) of
the Code.
Ei ~. TEFRA section 242(b)(2) elections. Notwithstanding the other
provisions of this section other than this subsection fBEi ~.,
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.
Ordinance No. 4198
Page 28
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 retires unless other-vise provided for in the
plan or required by bw 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 survivina spouse elects.
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.
Ordinance No. 4198
Page 29
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)bA. 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.
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 raoidlv as under the
method of distribution before the member's death.
s 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), (~) and (6) 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
Ordinance No. 4198
Page 30
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 ::mnf.:Jity 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 will be over a Iifo (or lives) or o\(er n
period oertain not longer than the period desoribed in
subsection (1) or (5). The member's entire interest must be
distributed oursuantto Sec. 66-76(aHbHc),or (e), or Sec.66-
77 (as aoolicable) and in any event over a oeriod equal to or
less than the member's life or the lives of the member and a
Ordinance No. 4198
Page 31
4. PaymentE: '.viii either be noninoreaE:ing or inoreaE:e only as
follm",IE::
By an annual percentage incroaE:e that does not exoeed
the oumulative annual percontago inoroaE:o in a OOE:t of
li',Iing indox that is basod on prioos of all items and
issued by tho Buroau of Labor Statistios or by a fixod
annual increase of fi'lo porcont or loss.
ii To tho extont of tho reduotion in tho amount of the
mombor's payments to provido for a survivor bonofit
upon doath, but only if tho bonofioiary whose lifo was
boing usod to dotormino tho distribution poriod
dosoribod in subsoction (4) dios or is no longor tho
momber's bonofioiary pursuant to a qualified dome&tio
relations ordor I,",ithin tho moaning of soction 414(p).
iii To provido oash rofunds of aooumulated oontributions
upon the mombor's doath.
1'-1
..
To pay inoreasod bonofits that result from a plan
amondment.
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 subsoction (2)b.1. or
(2)b.3 Sec. 66-76(c).) is the payment that is required forone 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
Ordinance No. 4198
Page 32
'.""-"-"
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) Reqf:Jiromonts for annuity distribf:Jtions that commence during a member's
lifetime.
3. ,,1oint lifo anrwitio6 v:herf) the benefioiary is not tho mombor's SpOf:Jso.
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
beneficiary, annuity payments to be made on or 3fter the member's
required beginning date to the designated beneficiary 3tter the
member'!;; death must not at any time exceed the applic3ble
percentage of the annuity payment for such period that would h3ve
been payable to the member using the t3ble set forth in Q&'^ 2 of
section 1.401 (a)(O) 6T of the Troa!;;ury regulations. If the form of
distribution combines a joint and survivor annuity for the joint lives of
the member and 3 nonspouse beneficiary and a period certain
annuity, the requirement!;; in the preceding sentenco '.',(i11 apply to
annuity payments to be made to the design3ted beneficiary 3fter the
expiration of the period certain.
b. P.eriod certain ~Jnnu.;tfos. Unless the member's spouse is the Gole
design3ted benefici3ry 3nd the form of distribution is 3 period certain
Ordinance No. 4198
Page 33
and no life annuity, the period certain for an annuity distribution
commenoing during the member's lifetime may not exceed the
applioable distribution period for the member under the Uniform
Lifetime Table set forth in section 1.401(a)(9) 9 of the Treasury
regulations for the calendar year that contains the annuity starting
date. If the annuity starting date precedes the year in which the
member reaches age 70, the applicable distribution period for the
member is the distribution period for age 70 under the Uniform
Lifetime Table set forth in section 1.401 (a)(9) 9 of the Treasury
regulations plus the excess of 70 over the age of the member as of
the member's birthday in the year that oontains the annuity starting
date. If the member's spouse is the member's sole designated
benefioiary and the form of distribution is a period certain and no life
~mnuity, the period certain may not exceed the longer ofthe member's
applicable distribution period, as determined under this subsection
(4 )b., or the joint life and last survivor expectancy of the member and
the member's spouse as determined undor the Joint and Last
Survivor Table set forth in section 1.401 (a)(9) 9 of the Treasury
regulations, using the member's and spouse's attained ::1ges as ofthe
member's and spouse's birthdays in the oalendar year that contains
the annuity starting date.
(5) R-equir-oments for minimum distr,ibutiofls VlRe.~() member dies beforo data
distributions beg.in.
a. Membor stJfViv-ed /).y oosigf1Dted l:)()f1eficiary. If the member dies
before the date distriblltion of his or her interest begins and there is a
designated beneficiary, the member's entire interest 'I.-ill be
distributed, beginning no later than the time desoribed in subseotion
Ordinance No. 4198
Page 34
(2)b.1. or (2)b.2., over the life of the designated benefioiary or over 0
period oertain not exoeeding:
1. Unless the ~mnuity etarting dote is before the first distribution
oalendar year, the life expeotanoy of the doeignated
benefioiary detorminod using the benefioiary's age as of the
beneficiary's birthday in the calendar year immediately
following tho oalendar year of the member's doath.
2. If the annuity starting dote is before the first distribution
oalendar year, the lifo oxpectanoy of the doeignated
benef.iciary determinod using the beneficiary's age ae of the
benefioiary's birthday in the oalendar year the oontains the
annuity starting date.
b. 1\'0 oosignarod Goneficiary. If the momber diee before the date
distributions begin and thero is no designated benefioiary os of
September 30 of the year following the year of the member's death,
distribution of the member's entire intorest will be oompleted by
Deoember 31 of the calendar year oontaining the fifth anniversary of
the member's death.
o. Death of sUr/j'I'.iAg spouse before distrfbutfoAS to st:JNfvfng SPOUSD
bog/A. If the momber diee before the dote dietribution of his interest
begins, the member's surviving spouse is the member's sole
deeignated benefioiary, and the eurviving spouee diee beforo
dietributions to the Gurvi'Jing spouso begin, this subseotion (5) will
apply as if the surviving spouse '/Jere the member, exoept that the
time by which distributions must bogin will be determined without
regard to subsoction (2)b.1.
Ordinance No. 4198
Page 35
-
ill General distribution rules.
~ 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 disabilitv benefits provided bv the plan are limited bv
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 disabilitv benefits
pavable may not exceed 25% of the cost for all of the members'
benefits received from the retirement system.
(9~) Definitions.
a. Designated beneficiary. The individual who is designated as the
beneficiary under the plan and is the designated beneficiary under
section 401(a)(9) ofthe 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
GubGootion (2)b Sec. 66-76(c).
Ordinance No. 4198
Page 36
o. Lifo OXpDstanoy. Lifo expectancy ac oomputod by use of the Single
Lifo Table in seotion 1.401 (a)(9) 9 of the Treasury regulationo.
d. Roquirod bogkmiRg datD. The date cpeoifiod in cubcootion (2)a.
SECTION 11: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-76, 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;
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
Ordinance No. 4198
Page 37
of the power, rights, privileges, duties or position of his public office or
employment position.
SL. 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 younaer than 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 III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-77, 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
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)
*****
lltl The Member's benefit under this section 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 (70X1)
Ordinance No. 4198
Page 38
or the calendar vear in which the member terminates emplovment with the
citv.
*****
(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 bonofit amount is loss than one hundrod dollms ($100.00) or tho
total oommuted valuo of tho remaining monthly inoomo payments to bo paid do not oxoeod
fi'/o thousand dollars ($5,000.00) total commuted value ofthe monthlv income pavments 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.
SECTION 13: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-79, Miscellaneous provisions, to read as follows:
Sec. 66-79. 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
execuffon,nonas&gnabHfty
(a) Domestic relations orders.
Ordinance No. 4198
Page 39
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,
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 oavment to
insurance comoanies for insurance oremiums as oermitted bv F.S. ch 175.
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,
Ordinance No. 4198
Page 40
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 ofthe system may be
made retroactively, if necessary or appropriate, to qualify or maintain the System as a Plan
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.
ill Prohibited Transactions. Effective as of January 1. 1989. a board mav not
enaaae in a transaction prohibited by Code Section 503(b ).
lID USERRA. Effective December 12. 1994. notwithstandina any other provision
of this system. contributions. benefits and service credit with respect to
aualified military service are aoverned by Code Section 414(u) and the
Uniformed Services Employment and Reemployment Riahts Act of 1994. as
amended. To the extent that the definition of "credited service" sets forth
contribution reauirements that are more favorable to the member than the
Ordinance No. 4198
Page 41
minimum compliance reauirements. the more favorable provisions shall
applv.
!ill Vestina.
a. Member will be 1 00% ve~ted in all benefits upon attainment of the
plan's ace and service re9uirements for the Plan's normal retirement
benefit: and
12:. 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. In those circumstances where a written election or
consent is not reauired 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.
Rea. ~ 1.40Ha)-21.
!.111 Comoliance with Chaoter 175. Florida Statutes. It is intended that the
system will continue to aualify for fundina under F .S. ~ 175.101. Accordinalv.
unless otherwise reauired bv law. any provision of the system which violates
the reauirements of F.S. ch. 175. as amended from time to time. shall be
superseded bv and administered in accordance with the reauirements of
such chapter.
SECTION 14: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-80, Repeal or termination of system, to read as follows:
Sec. 66-80. 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
Ordinance No. 4198
Page 42
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, exoopt to the eK-tont that the assets of the fund
may be determined to be inadequ:lte.
(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
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 assets of the system shall be
allooated in an equit:lble m:lnner to provide benefits on a pr{)portionate basis to the
persons so entitled in :lcoordanoe with the provisions thereof such benefits shall be
nonforfeitable.
(3) The follO'.ving shall be the order of priority for purposes of allooating tho
assets of the system as of the date of repeal of this artiole, or if oontributions to the system
are disoontinued with the date of suoh discontinuation being detormined by the board.
(a) /\pportionment shall first be mado in rospeot of eaoh retiree reoeiving a
retirement or disability benefit herounder on suoh d:lto, eaoh person
reoeiving a benefit on suoh date on aooount of a r-otired or disabled (but sinoe
deoeasod) member, and eaoh member who has, by suoh date, become
eligiblo for norm:ll retirement but has not yet retired, an amount '.vhioh is tho
aotuarial equivalent of suoh benefit, pmvided that, if suoh asset value bo less
than the aggregate of suoh amounts, suoh amounts shall bo proportionately
Ordinance No. 4198
Page 43
reduoed so that the aggregato of suoh reduoed amounts will bo oqual to such
asset value.
(b) If there be any asset value romaining after the apportionment under
paragraph (3)(a) abo'Je, apportionment shall next be made in respect of each
member in the servioe of the oity on suoh date '.vho is vested and who is not
entitled to an apportionment under paragraph (3)(a) a bO\(e , in the amount
r{)quired to provide the actuarial equivalent of the vested portion of the
aoorued normal retirement benefit, but not less than aooumulated
oontributions (but not less than aooumulated oentributions), based on the
oredited servioe and average final oompensation as of suoh date, and eaoh
vested former member then entitled to a deferred benefit who has not, by
suoh date, begun reoeiving 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, suoh latter amounts
shall be proportionately reduced so that the aggregate of suoh reduced
amounts 'Nill be equal to suoh remaining asset '/alue.
(0) If there be any asset value after the apportionments under paragraphs (3)(a)
and (3)(b) above, apportionment shall be made in r{)spect of eaoh member in
the servioe of the oity 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 oontributions, pro'Jided that, if suoh romaining mmet value be
less than the aggregate of the amounts apportioned hereunder suoh latter
amount shall be proportionately roduoed so that the aggregate of suoh
reduoed amounts will be equal to suoh remaining asset value.
(d) If thero be any asset value remaining after the apportionments under
paragraphs (3)(0), (3)(b), and (3)(0) above, apportionment shall lastly be
Ordinance No. 4198
Page 44
made in r.ospect of eaoh member inoluded in paragraph (3)(0) above to tho
ox:tont of tho actuarial oquivalont of tho non 'losted aooruod normal
rotiremont bonofit, loss tho amount apportionod in paragraph (3)(0), basod
on tho creditod sorvioo and a'/orago final oomponsation os of such dote,
pro'.(idod that, if suoh remaining asset value bo less than the aggregate of the
amounts apportionod hereundor, suoh amounts shall be roduoed so that tho
aggregato of suoh reduood amounts will bo oqual to such remaining assot
\'alue.
(e) In tho ovont that there bo asset value remaining after the full apportionmont
spooifiod in paragraphs (3)(a), (3)(b), (3)(c), and (3)(d), suoh exoess shall be
returned to the oity, loss return of the stato's oontributions to tho state,
provided that, if tho ex:ooss is less than the total oontributions made by tho
oity and tho state to tho date of tormination suoh exoess sholl be dividod
proportionately to tho total oontributions made by the oity and the state.
The allooation of the fund pro':idod for in this subsoction may, os dooidod by
tho board be oarried out through tho pur{)hase of insuranoe oompany oontracts to provide
the benefits detorminod in aooordanoe with this subsection. The fund may be distributod in
one sum to tho pen;ons ontitled to said bonof1ts or the distribution may be oarried out in
suoh other equitable mannor os tho board may diroct. The fund may be oontinued in
existence for purposos of subsequent distributions.
If, at any time during the first ton (10) years after the offective dato of the
ordinanco originally ostablishing this systom, the system sholl be terminated or the full
ourrent oosts of tho system shall not have boen met, anything in the systom to tho oontrary
notv:ithstanding, oity oontributions whioh may bo used for tho benofit of anyone of the
twonty fivo (25) highest paid membors on tho offoctive dato, v:hose antioipated annual
retirement allo'/.'anoe provided by tho oity's oontributions at member's normal retirement
dote would exoeod one thousand fi\'e hundrod dollars ($1,500.00), shall not oxoeod the
Ordinance No. 4198
Page 45
graator of oithor a) twonty thousand dollam ($20,000.00), or b), an amount oomputod by
multiplying tho smallor of ton thousand dollars ($10,000.00) or t\\'onty (20) paroont of suoh
mombor's avor:ago annual oarnings during his last fi'/o (6) yoars of sorvioo by tho numbor
of yoars of sorvioo since the effectivo dato. In tho event that it shall heroafter be
dotermined by statuto, oourt decision, ruling by tho Commissioner of Intornal Rovenuo, or
otherwise, that the pra'Jisions of this paragraph ara not thon necessary to qualify tho
system under tho [Intornal Revenue] Code, this paragraph shall be ineffoctive without the
nooessity of furthor amondmont of this artiolo.
(4) After all tho vested and aooruod benefits providod hereunder havo beon paid
and aftor all othor Iiabilitios havo boon satisfiod, thon and only thon shall any romaining
funds ravort to tho gonoral fund of tho city.
@} 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 aftertakinq into account
the expenses of such distribution. The board shall inform the citv 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 firefiqhter entitled to benefits
under the plan as specified in subsection c..
c. The board shall distribute the asset value as ofthe date of termination
in the manner set forth in this subsection. on the basis that the
amount required to provide any aiven retirement income is the
actuarially computed sinqle-sum value of such retirement income.
Ordinance No. 4198
Page 46
exceot that if the method of distribution determined under subsection
b. involves the purchase of an insured annuity. the amount reauired to
provide the aiven retirement income is the sinale premium oayable for
such annuity. The actuarial sinale-sum value may not be less than
the firefiahter's accumulated contributions to the olan. with interest if
orovided by the olan. less the value of any olan benefits oreviously
oaid to the firefiahter.
~ If there is asset value remainina after the full distribution soecified in
subsection c.. and after the oayment of any exoenses incurred with
such distribution. such excess shall be returned to the city. less return
to the State of the State's contributions. orovided that. if the excess is
less than the total contributions made by the city and the State to date
of termination of the olan. such excess shall be divided
orooortionately to the total contributions made by the city and the
State.
~ 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 olan terminated or
the date the board received written notice that the contributions thereunder
were beina oermanently discontinued. the citv or the board of the fund
affected has not comolied with all the orovisions in this section. the Florida
Deoartment of Manaaement Services will effect the termination of the fund in
accordance with this section.
SECTION 15: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
Ordinance No. 4198
Page 47
amending Section 66-81, Direct transfers of eligible rollover distributions, elimination of
mandatory distributions, to read as follows:
Sec. 66-81. 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
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. Af+y Effective
January 1. 2002. any portion of any distribution which would be
includible in gross income as after-tax emolovee contributions will be
an eligible rollover distribution if the distribution is made to an
Ordinance No. 4198
Page 48
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 earninas 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 aualified defined benefit plan described in Code
Section 401(a) or to an annuitv contract described in Code Section
403(b), that aorees to separatelv account for amounts so transferred
(and earninas thereon). includina separatelv 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 [Intemal 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
Ordinance No. 4198
Page 49
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 intermit of the
spouse and the emplovee's or former emplovee's spouse or former
spouse. Effective January 1. 2007. it further includes a non-spouse
beneficiary who is a desianated beneficiary as defined bv Code
Section 401(a)(9)(E). However. a non-spouse beneficiary may
rollover the distribution only 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 orfrom an eligible plan under Section 457(b) ofthe [Internal
Revenue] Code which is maintained by a state, political subdivision of a
Ordinance No. 4198
Page 50
~c
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
[Internal Revenue] Code that is eligible to be rolled over and 'A'Ould othor\viGO
bo includiblo in gross incomo.
(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 III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-83, 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 purchaso is pormitted for 0
poriod of loss than one year.
SECTION 17: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-84, Prior fire service, to read as follows:
Sec. 66-84. Prior fire service.
Ordinance No. 4198
Page 51
Unless otherwise prohibited by law, and except as provided for in section 66-71, the
years or fractional parts of years that a member previously served as a firefighter 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 firefighter for any other municipal, county or state law
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 pUFohaso is pormittod for a
poriod of loss than one yoar.
(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 special district fire
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.
Ordinance No. 4198
Page 52
(5) There shall be no maximum credit for prior service with the City of Sanford
fire 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
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 66-76, subsection (f)(8)b (f)(11 )b.
ill For purposes of determinina credit for prior service as a firefiahter as
provided for in this section. in addition to service as a firefiahter in this state.
credit mav be purchased by the member in the same manner as provided
above for federal. other state. county or municipal service if the prior service
is recoanized by the Division of State Fire Marshal. as provided under
Chapter 633. Florida Statutes. or the firefiahter provides proof to the board
that such service is eauivalent to the service reauired to meet the definition
of a firefiahter under Sec.66-71.
SECTION 18: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
amending Section 66-86, Deferred retirement option plan, subsection (d)(2)a., to read as
follows:
*****
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). /\ mombor m3Y oloct,
howovor, in suoh time 3nd mannor as tho board shall prosoribo, th3t
his DROP distribution bo usod to purohaso a nonforfoit3blo fixod
Ordinance No. 4198
Page 53
annuity payable in suoh form os the member may elect. Elections
under this paragraph shall be in writing and shall be made in such
time or manner as the board shall determine.
*****
SECTION 19: That Chapter 66, Pensions and Retirement, Article III, of the City
Code of the City of Sanford entitled Firefighters' Retirement System, is hereby amended by
adding Section 66-87, Convictions and forfeitures; False, misleading or fraudulent
statement, to read as follows:
Sec. 66-87. Conviction and forfeiture: false. misleadina or fraudulent statements.
ill It is unlawful for a person to willfullv and knowinalv make. or cause to be
made. orto assist. conspire with. or urqe 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.
ill A person who violates subsection (1) commits a misdemeanor of the first
deqree. punishable as provided in F.S. &775.082 or &775.083.
ru In addition to any applicable criminal penaltv. 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,
Ordinance No. 4198
Page 54
administrative agency, or other body with appropriate jurisdiction, the remaining section,
subsection, sentences, clauses, or phrases under application shall not be affected thereby.
SECTION 23: That this Ordinance shall become effective upon adoption.
PASSED AND ADOPTED this 11 th day of January, A.D. 2010.
CITY COMMISSION OF THE CITY OF
SANFORD, FLORIDA
<~N'MAY~~ '
ATTEST:
~ (Y.:;!h
CYN HIA PORTER, DEPUTY CITY CLERK
DM/san/fire/12-02-09.ord
Ordinance No. 4198
Page 55