HomeMy WebLinkAbout3902ORDINANCE NO. 3902
AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA,
AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE
XVI, FIREFIGHTERS' RETIREMENT SYSTEM; AMENDING
SECTION 2-281, DEFINITIONS, BY AMENDING THE
DEFINITION OF "BASE PAY"; AMENDING SECTION 2-
286, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING
SECTION 2-291, DIRECT TRANSFERS OF ELIGIBLE
ROLLOVER DISTRIBUTIONS; AMENDING SECTION 2-
293, MILITARY SERVICE PRIOR TO EMPLOYMENT;
AMENDING SECTION 2-294, PRIOR FIRE SERVICE;
ADDING SECTION 2-295, REEMPLOYMENT AFTER
RETIREMENT; PROVIDING FOR SEVERABILITY OF
PROVISIONS; 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 2, Administration, Article XVI of the
City Code of the City of Sanford entitled Firefighters' Retirement
System, is hereby amended by amending Section 2-281, Definitions,
by amending the definition of Base pay, to read as follows:
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 "Paramedic incentive'~ paid to Pirefighters who are
certified as Paramedics. Compensation in excess of the limitations
set forth in Section 401(a) (17) of the Code shall be disregarded.
The limitation on compensation for an "eligible employee" shall not
be less than the amount which was allowed to be taken into account
hereunder as in effect on July 1, 1993. "Eligible employee" is an
a member before the first Plan Year beginning
individual who was
after December 31,
1995.
ordinance No. 3902
Page 1
SECTION 2: That Chapter 2, Administration, Article XVI of the
City Code of the City of Sanford entitled Firefighters' Retirement
System, is hereby amended by amending
amounts and eligibility, subsection (e),
(f), Maximum pension, to read as follows:
Section
Vesting,
Vesting.
2-286, Benefit
and subsection
(e)
firefighter, either
eligible for any other benefits under this system,
be entitled to the following:
(1) If the member has less than ten (10) years credited
service upon termination, the member shall be entitled to
a refund of his accumulated contributions, or the member
may leave it deposited with the fund.
(2) If the terminated member has ten (10) or more years of
credited service upon termination, the member shall be
entitled to a monthly retirement benefit, determined in
the same manner as for normal or early retirement and
based upon the member's credited service, average final
compensation and the benefit accrual rate as of the date
of termination, payable to him commencing at member's
otherwise normal or early retirement date, determined as
if he had remained employed, provided he does not elect
to withdraw his accumulated contributions, and provided
member survives to his otherwise early or normal retire-
ment date. In the event that the member does not survive
to his otherwise early or normal retirement date, the
member's beneficiary shall receive the member's
accumulated contributions.
ordinance No. 3902
Page 2
If a member terminates his employment as a
voluntarily or by discharge, and is not
the member shall
(3)
In the event a member elects to receive his accumulated
contributions in lieu of any benefits hereunder, he shall
also receive an additional lump-sUm amount equal to five
(5) percent of the member's base pay for all years of
credited service between October 1, 1976 and June 30,
1998.
(f)
(1)
Maximum pension.
Basic limitation, subject to the adjustments hereinafter
set forth, the maximum amount of annual retirement income
payable with respect to a member under this system shall
not exceed one hundred sixty thousand dollars
($160,000.00).
For purposes of applying the above limitation, benefits
payable in any form other than a straight life annuity
with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the
actuarial equivalent of a straight life annuity. For
purposes of this subsection, the following benefits shall
not be taken into account:
a. Any ancillary benefit which is not directly related
to retirement income benefits;
b. Any other benefit not required under Section
415(b) (2) of the [Internal Revenue] Code and
Regulations thereunder to be taken into account for
purposes of the limitation of Section 415(b) (1) of
the [Internal Revenue] Code.
Ordinance No. 3902
Page 3
(2)
(3)
Participation in other defined benefit plans. The
limitation of this subsection with respect to any member
who at any time has been a member in any other defined
benefit plan (as defined in Section 414(j) of the
[Internal Revenue] Code) maintained by the city shall
apply as if the total benefits payable under all defined
benefit plans in which the member has been a member were
payable from one (1) plan.
Adjustments in limitations.
a. In the event the member's retirement benefits
become payable before age sixty-two (62), the one
hundred sixty thousand dollar ($160,000) limitation
prescribed by this subsection shall be reduced in
accordance with regulations issued by the Secretary
of the Treasury pursuant to the provisions of
Section 415(b) of the [Internal Revenue] Code, so
that such limitation (as so reduced) equals an
annual benefit (beginning when such retirement
income benefit begins) which is equivalent to a one
hundred sixty thousand dollar ($160,000) annual
benefit beginning at age sixty-two (62).
In the event the member's benefit is based on at
least fifteen (15) years of credited service, the
adjustments provided for in a. above shall not
apply.
The reductions provided for in a. above shall not
be applicable to disability benefits paid pursuant
to Sec. 2-286, Benefits amounts and eligibility,
ordinance No. 3902
Page 4
(4)
(5)
subsection (d), or pre-retirement death benefits
paid pursuant to Sec. 2-286, Benefit amounts and
eligibility, subsection (c).
If the member's retirement benefit becomes payable
after age sixty-five (65), for purposes of
determining whether this benefit meets the
limitation set forth in subsection (f) (1) of this
section, such benefit shall be adjusted so that it
is actuarially equivalent to the benefit beginning
at age sixty-five (65). This adjustment shall be
made in accordance with regulations promulgated bY
the Secretary of the Treasury or his delegate.
Less than ten years of service. The maximum retirement
benefits payable under this subsection to any member who
has completed less than ten (10) years of credited
service with the city shall be the amount determined
under subsection (f) (1) of this section multiplied by a
fraction, the numerator of which is the number of the
member's years of credited service and the denominator of
which is ten (10). The reduction provided for in this
subsection shall not be applicable to disability benefits
paid pursuant to Sec. 2-286, Benefits amounts and
eligibility, subsection (d),
benefits paid pursuant to Sec.
eligibility, subsection (c).
or pre-retirement death
2-286, Benefit amounts and
$10,000.00 limit. Notwithstanding the foregoing, the
retirement benefit payable with respect to a member shall
be deemed not to exceed the limitations set forth in this
ordinance No. 3902
Page 5
subsection if the benefits payable,
member under this
defined benefit
with respect to such
system and under all other qualified
pension plans to which the city
contributes, do not exceed ten thousand dollars
($10,000.00) for the applicable plan year and for any
prior plan year and the city has not at any time
maintained a qualified defined contribution plan in which
the member participated.
(6) Reduction of benefits. Reduction of benefits and/or con-
tributions to all plans, where required, shall be
accomplished by first reducing the member's benefit under
any defined benefit plans in which member participated,
such reduction to be made first with respect to the plan
in which member most recently accrued benefits and
thereafter in such priority as shall be determined by the
board and the plan administrator of such other plans, and
next, by reducing or allocating excess forfeitures for
defined contribution plans in which the member par-
ticipated, such reduction to be made first with respect
to the plan in which member most recently accrued
benefits and thereafter in such priority as shall be
established by the board and the plan administrator for
such other plans provided, however, that necessary
reductions may be made in a different manner and priority
pursuant to the agreement of the board and the plan
administrator of all other plans covering such member.
(7) Cost-of-living &djus~ment$. The limitations as stated in
subsections (f) (1), (f) (2)~ and (f) (3) herein shall be
ordinance No. 3902
Page 6
(8)
adjusted to the time payment of a benefit begins in
accordance with any cost-of-living adjustments prescribed
by the Secretary of the Treasury pursuant to Section
415(d) of the [Internal Revenue] Code.
Additional limitation on pension benefits.
Notwithstanding anything herein to the contrary:
a. The normal retirement benefit or pension payable to
a retiree who becomes a member of the system and
who has not previously participated in such system,
on or after January 1, 1980, shall not exceed one
hundred (100) percent of his average final
compensation. However, nothing contained in this
subsection shall apply to supplemental retirement
benefits or to pension increases attributable to
cost-of-living increases or adjustments.
b. No member of the system shall be allowed to receive
a retirement benefit or pension which is in part or
in whole based upon any service with respect to
which the member is already receiving, or will
receive in the
pension from a
system or plan.
future, a retirement benefit or
different employer's retirement
This restriction does not apply to
social security benefits or federal benefits under
Chapter 67, Title 10, U.S. Code.
SEC?ION 3: That Chapter 2, Administration, Article XVI of the
City Code of the City of Sanford entitled Firefighters' Retirement
System, is hereby amended by amending Section 2-291, Direct
ordinance No. 3902
Page 7
transfers of eligible rollover distributions, subsection (2),
Rollovers or transfers into the fund, to read as follows:
(2) Rollovers or transfers into the fund. On or after
January 1, 2002, the system will accept, solely for the purpose of
purchasing credited service as provided herein, permissible Member
requested transfers of funds from other retirement or pension plans,
member rollover cash contributions and/or direct cash rollovers of
distributions made on or after January 1, 2002, as follows:
(a) Transfers and direct rollovers or member rollover
contributions from other plans. The system will accept
either a direct rollover of an eligible rollover
distribution or a member contribution of an eligible
rollover distribution from a qualified plan described in
Section 401(a) or 403(a) of the [Internal Revenue] Code,
from an annuity contract described in Section 403(b) of
the [Internal Revenue] Code or from an eligible plan
under Section 457(b) of the [Internal Revenue] Code which
is maintained by a state, political subdivision of a
state, or any agency or instrumentality of a state or
political subdivision of a state. The system will also
accept legally permissible member requested transfers of
funds from other retirement or pension plans.
(b) Member rollover contributions from IRAs. The system will
accept a member rollover contribution of the portion of a
distribution from an individual retirement account or
annuity described in Section 408(a) or 408(b) of the
[Internal Revenue] Code that is eligible to be rolled
over and would otherwise be includible in gross income.
ordinance No. 3902
Page 8
SECTION 4: That Chapter 2, Administration, Article XVI of the
City Code of the City of Sanford entitled Firefighters' Retirement
System, is hereby amended by amending Section 2-293, Military
service prior to employment, subsection (1), to read as follows:
(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.
SECTION 5: That Chapter 2, Administration, Article XVI of the
City Code of the City of Sanford entitled Firefighters' Retirement
System, is hereby amended by amending Section 2-294, Prior fire
service, subsection (1) and subsection (6), to read as follows:
(1) The member contributes to the fund an actuarially
determined amount so that the crediting of the purchased
service does not result in any cost 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
ordinance No. 3902
Page 9
costs for all professional services rendered to the board
in connection with the purchase of years of credited
service.
(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 2-286,
subsection (f) (8)b.
S~C?ION 6: That Chapter 2, Administration, Article XVI of the
City Code of the City of Sanford entitled Firefighters' Retirement
System, is hereby amended by adding Section 2-295, Reemployment
after retirement, to read as follows:
Sec. 2-295. Reemployment after retirement.
(1) Any ~tiree under this system, except ~r disability retirement as pwviously provided
~r, may be reemployed by any public or p6vate employer, except the city, and may ~ceive
compens~ion from that employment without limiting or ~st~cting in any way me reti~ment
benefts payable under this system. Reemployment by the city shall be su~ect to the limitations set
~h in this section.
(2) A~er normal retirement. Any ~e who is ~d under normal (or e~ly) w~wment
pursuant to this system and who is ~employed as a frefghmr and, by vi~ue of ~ reemployment, is
eli~ble to participate in this system, sh~l upon being ~employed, ~scontinue receipt of benefts.
Upon reemployment, the member shall be deemed to be fully vested and the additional c~diwd
service accrued du~ng the subsequent employment pedod shall be used in computing a second
benefit amount ~t~butable to the subsequent employment pe6od, which beneft amount shall be
added to the beneft determined upon the initial wti~ment to dewrmine the total beneft payable
upon fnal ~tirement. Calcul~ions of benefts upon retirement shall be based upon the beneft
ordinance No. 3902
Page 10
accrual rate, average final compensation, and credited service (and early retirement reduction factor,
if applicable) as of that date and the retirement benefit amount for any subsequent employment
period shall be based upon the benefit accrual rate, average final compensation (based only on the
subsequent employment period), and credited service (and early retirement reduction factor, if
applicable) as of the date of subsequent retirement. The amount of any death or disability benefit
received during a subsequent period of employment shall be reduced by the amount of accrued
benefit eligible to be paid for a prior period of employment. The optional form of benefit and any
joint pensioner selected upon initial retirement shall not be subject to change upon subsequent
retirement except as otherwise provided herein, but the retiree may select a different optional form
and joint pensioner applicable only to the subsequent retirement benefit.
(3) Any retiree who is retired under normal retirement pursuant to this system who is
reemployed by the City in a position other than as a firefighter, shall upon being reemployed,
continue receipt of benefits for the period of any subsequent employment period.
(4) After early retirement. Any retiree who is retired under early retirement pursuant to
this system and who subsequently becomes an employee of the city in any capacity, shall discontinue
receipt of benefits from the system. If the reemployed person, by virtue of his reemployment, is
eligible to participate in this system, that person shall accrue a second benefit as provided for in
subsection (2) above and benefit payments shall remain suspended during any such subsequent
employment period. If the reemployed person is not eligible to participate in this system, that
person's pension benefit payments shall be suspended until the earl±er of
termination of employment or such time as the reemployed retiree
reaches the date that he would have been eligible for normal
retirement under this system had he continued employment and not
elected early retirement, "Normal retirement" as used in this
subsection shall be the current normal retirement date provided for
under this system.
(5) Reemployment of terminated vestedpersons. Reemployed terminated vested persons
shall not be subject to the provisions of this section until such time as they begin to actually receive
ordinance No. 3902
Page 11
benefits. Upon ~ceipt of benefits, terminmed vested persons shall be treated as normal or e~ly
retirees ~r proposes of applying the provisions of His section and their stmus as an early or normal
~tiree shall be determined by the d~e Hey elect to begin to receive their benefit.
SECTION 8: All ordinances or parts of ordinances in conflict
herewith be and the same are hereby repealed.
SECTION 8: If any section, subsection, sentence, clause,
phrase of this ordinance, or the particular application thereof
shall be held invalid by any court, administrative agency, or other
body with appropriate jurisdiction, the remaining section,
subsection, sentences, clauses, or phrases under application shall
not be affected thereby.
SECTION 9: That this ordinance shall become effective upon
adoption.
PASSED AND ADOPTED this 22nd day of November, A.D. 2004.
City Commission of the City of
ATTEST:
R. Doughert~, Cit~ Clurk
CERTIFICATE
I, Janet R. Dougherty, City Clerk of the City of Sanford,
Florida, do hereby certify that a true and correct copy of the
foregoing Ordinance No. 3902, PASSED AND ~OPTED by the City
co~ission of the City of Sanford, Florida, on the 22nd day of
November, 2004, was posted at the front door of the City Hall in
the City of Sanford, Florida, on the 23rd day of Nove~er, 2004.
of Sanford, Florida
bm\san\ fire\ 02 17-04. ord
ordinance No. 3902
Page 12