HomeMy WebLinkAbout3903ORDINANCE NO. 3903
AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA,
AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE
XV, POLICE OFFICERS' RETIREMENT SYSTEM;
AMENDING SECTION 2-261, DEFINITIONS, BY
AMENDING THE DEFINITION OF "BASE PAY";
AMENDING SECTION 2-266, BENEFIT AMOUNTS AND
ELIGIBILITY; AMENDING SECTION 2-271, DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS;
AMENDING SECTION 2-273, MILITARY SERVICE PRIOR
TO RETIREMENT; AMENDING SECTION 2-274, PRIOR
POLICE SERVICE; ADDING SECTION 2-275,
REEMPLOYMENT AFTER RETIREMENT; PROVIDING FOR
CODIFICATION; 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 XV of the
City Code of the City of Sanford entitled Police Officers,
Retirement System, is hereby amended by amending Section 2-261,
Definitions, by amending the definition of Base pay, to read as
follows:
Base pay means the pay for the grade and step
classification pay plan in the city for the given
including education incentive payments and plus all
tax sheltered or tax-exempt items of income derived
employee payroll deductions or salary reductions
in the salary
fiscal year,
tax-deferred,
from elective
and otherwise
includible in base pay. 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
Ordinance No. 3903
Page 1
individual who was a Member before the first Plan Year beginning
after December 31, 1995.
~ECTION 2: That Chapter 2, Administration, Article XV of the
City Code of the City of Sanford entitled Police Officers'
Retirement System, is hereby amended by amending Section 2-266,
Benefit amounts and eligibility, subsection (e), Vesting, and
subsection (f), Maximum pension, to read as follows:
(e) Vesting. If a member terminates his employment as a
police officer, either voluntarily or by discharge, and is not
eligible for any other benefits under this system, the member shall
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
Ordinance No. 3903
Page 2
(3)
(f)
(1)
retirement date. In the event that the member does not
does not survive to his otherwise early or normal
retirement date, the member,s beneficiary shall receive
the member's accumulated contributions.
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 since October 1, 1976.
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
purposes of this subsection,
not be taken into account:
straight life annuity. For
the followin~ benefits shall
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
Ordinance No. 3903
Page 3
Regulations thereunder to be taken into account for
purposes of the limitation of Section 415(b) (1) of
the [Internal Revenue] Code.
(2) 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.
(3) 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 ($160,000.00)
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
($160,000)
two (62).
to a one hundred sixty thousand dollar
annual benefit beginning at age sixty-
Ordinance No. 3903
Page 4
(4)
b. 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.
c. The reductions provided for in a. above shall not
be applicable to disability benefits paid pursuant
to Sec. 2-266, Benefits amounts and eligibility,
subsection (d), or pre-retirement death benefits
paid pursuant to Sec. 2-266, Benefit amounts and
eligibility, subsection (c).
d. 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 section 2-265(f) (1) herein,
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 section 2-265(f) (1) 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
Ordinance No. 3903
Page 5
(5)
(6)
(10). The reduction provided for in this subsection
shall not be applicable to disability benefits paid
pursuant to Sec. 2-266, Benefits amounts and eligibility,
subsection (d),
pursuant to Sec.
subsection (c).
or pre-retirement death benefits paid
2-266, Benefit amounts and eligibility,
$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
subsection if the benefits payable, with respect to such
member under this system and under all other qualified
defined benefit pension plans to which the city
contributes, do not 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
of benefits and/or
required, shall be
the member participated.
Reduction of benefits. Reduction
contributions to all plans, where
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
Ordinance No. 3903
Page 6
(7)
(8)
defined contribution plans in which the member
participated, such reduction to be made first with
respect to the plan in which member most recently accrued
benefits and thereafter in such priority as shall be
established by the board and the plan administrator for
such other plans provided, however, that necessary
reductions may be made in a different manner and priority
pursuant to the agreement of the board and the plan
administrator of all other plans covering such member.
Cost-of-living adjustments. The limitations as stated in
subsections (f) (1), (f) (2)~ (f) (3) herein shall be
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,
subsection shall apply
benefits or to pension
cost-of-living increases
nothing contained in this
to supplemental retirement
increases attributable to
or adjustments.
Ordinance No. 3903
Page 7
bo
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.
SECTION 3: That Chapter 2, Administration, Article XV of the
City Code of the City of Sanford entitled Police Officers.
Retirement System, is hereby amended by amending Section 2-271,
Direct transfer 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
Ordinance No. 3903
Page 8
(b)
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.
Member rollover contributions from IRAs. The system will
accept a member rollover contribution of the portion of a
an individual retirement account or
in Section 408(a) or 408(b) of the
Code that is eligible to be rolled
includible in gross income.
distribution from
annuity described
[Internal Revenue]
over and would otherwise be
SECTION 4: That Chapter 2, Administration, Article XV of the
City Code of the City of Sanford entitled Police Officers,
Retirement System, is hereby amended by adding
Military service prior to employment,
follows:
Section 2-273,
subsection (1), to read as
(i)
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
Ordinance No. 3903
Page 9
S__~CTION 5:
City Code of
Retirement System, is hereby amended by amending
Prior police service, subsection (1) and subsection
follows:
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.
That Chapter 2, Administration, Article XV of the
the City of Sanford entitled Police Officers,
Section 2-274,
(6), to read as
(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.
(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 2-266,
subsection (f) (8)b.
Ordinance No. 3903
Page 10
_~ECTION 6: That Chapter 2, Administration,
City Code of the City of Sanford entitled
Retirement System, is hereby amended by adding Section
Reemployment after retirement, to read as follows:
Sec. 2-275. Reemployment after retirement,
(1) Any retiree under this system, except for disability retirement as previouslyprovided
for, may be reemployed by any public or private employer, except the city, and may receive
compensation from that employment without limiting or restricting in any way the retirement
benefits payable under this system. Reemployment by the city shall be subject to the limitations set
forth in this section.
Article XV of the
Police Officers,
2-275,
(2) After normal retirement. Any retiree who is retired under normal (or early) retirement
pursuant to this system and who is memployed as a police officer and, by virtue of that
reemployment, is eligible to participate in this system, shall upon being reemployed, discontinue
receipt of benefits. Upon reemployment, the member shall be deemed to be fully vested and the
additional credited service accrued during the subsequent employment period shall be used in
computing a second benefit amount attributable to the subsequent employment period, which benefit
amount shall be added to the benefit determined upon the initial retirement to determine the total
benefit payable upon final retirement. Calculations of benefits upon retirement shall be based upon
the benefit 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
Ordinance No. 3903
Page 11
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 police officer, 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
termination of employment or such
reaches the date that he would
suspended until the earlier of
time as the reemployed retiree
have been eligible for normal
retirement under this system had he continued employment and not
el ected early ret irement. "Normal retirement" as used in this subsection shall be the
current normal retirement date provided for under this system.
(5) Reemployment of terminated vested persons. Reemployed terminated vested persons
shall not be subject to the provisions of this section until such time as they begin to actually receive
benefits. Upon receipt of benefits, terminated vested persons shall be treated as normal or early
retirees for purposes of applying the provisions of this section and their status as an early or normal
retiree shall be determined by the date they elect to begin to receive their benefit.
Ordinance No. 3903
Page 12
~EC?ION 7:
herewith be and the same are hereby repealed.
~EC?ION 8: If any section, subsection, sentence,
phrase of this ordinance, or the particular application
shall be held invalid by any court, administrative agency,
body with appropriate jurisdiction, the remaining section,
subsection, sentences, clauses, or phrases under application shall
not be affected thereby.
SEC?ION 9: That this Ordinance shall become effective upon
adoption.
Ail Ordinances or parts of Ordinances in conflict
clause,
thereof
or other
PASSED AND ADOPTED this
22nd day of November, A.D. 2004.
As the City Commission of the
City of Sanf~~a
~~, Mayor
ATTEST:
a~let R. Dougher~, Cit~ Clerk
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. 3903, PASSED AND ADOPTED by the City
Commission 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 November, 2004.
A~/the City Clerk ty
of Sanford, Florida
bm\san\pol\02~23 04.ord
Ordinance No. 3903
Page 13