HomeMy WebLinkAbout3966ORDINANCE NO. 3966
AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA,
AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE XV,
POLICE OFFICERS' RETIREMENT SYSTEM; AMENDING
SECTION 2-266, BENEFIT AMOUNTS AND ELIGIBILITY;
AMENDING SECTION 2-267, OPTIONAL FORMS OF
BENEFITS; ADDING SECTION 2-276, DEFERRED
RETIREMENT OPTION PLAN; 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 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, to read as follows:
(e) Vesting. Ifa 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 retirement date. If the member does not withdraw his
accumulated contributions and does not survive to his otherwise normal or early
Ordinance No. 3966
Page 1
retirement date, his designated beneficiary shall be entitled to a benefit as provided
herein for a deceased member, vested or eligible for retirement under Pre-retirement
death.
(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 since October
1, 1976.
SECTION 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 2-267,
Optional forms of benefits, subsection (2), to read as follows:
(2) The member, upon electing any option of this section, will designate the joint
pensioner (subsection (1)(b) above) or beneficiary (or beneficiaries) to receive the benefit, if any,
payable under the system in the event of member's death, and will have the power to change such
designation from time to time. Such designation will name a joint pensioner or one or more primary
beneficiaries where applicable. A member may change his beneficiary at any time. Ifa member has
elected an option with a joint pensioner and the member's retirement income benefits have
commenced, the member may thereat~er change his designated beneficiary at any time, but may only
change his joint pensioner twice. Subject to the restriction in the previous sentence, a member may
substitute a new joint pensioner for a deceased joint pensioner. Effective January 1, 2005, any
current retiree, regardless of his date of retirement, may elect the options provided for in this
subsection (2).
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 adding Section 2-276,
Deferred retirement option plan, to read as follows:
Sec. 2-276. Deferred retirement option plan.
(a) Definitions. As used in this section 2-276, the following definitions apply:
(1) "DROP" -- The City of Sanford Police Officers' Deferred Retirement Option Plan.
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(2)
"DROP account" -- The account established for each DROP participant under
subsection (c).
(b) Participation.
(1) Eligibility to participate. In lieu of terminating his employment as a police officer,
any member who is eligible for normal retirement under the system may elect to defer
receipt of such service retirement pension and to participate in the DROP.
(2) Election to participate. A member's election to participate in the DROP must be
made in writing in a time and manner determined by the board and shall be effective
on the first day of the first calendar month which is at least fifteen (15) business days
after it is received by the board.
(3) Period of participation. A member who elects to participate in the DROP under
subsection (b)(2), shall participate in the DROP for a period not to exceed 60 months
beginning at the time his election to participate in the DROP first becomes effective.
An election to participate in the DROP shall constitute an irrevocable election to
resign from the service of the city not later than the date provided for in the previous
sentence. A member may participate only once.
(4)
Termination of partict~ation.
a. A member's participation in the DROP shall cease at the earlier of:
1. the end of his permissible period of participation in the DROP as
determined under subsection (b)(3); or
2. termination of his employment as a police officer.
b. Upon the member's termination of participation in the DROP, pursuant to
subsection 1 above, all amounts provided for in subsection (c)(2), including
monthly benefits and investment earnings and losses, shall cease to be
transferred from the system to his DROP account. Any amounts remaining
in his DROP account shall be paid to him in accordance with the provisions
of subsection (d) when he terminates his employment as a police officer.
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(5)
c. A member who terminates his participation in the DROP under this subsection
(b)(4) shall not be permitted to again become a participant in the DROP.
Effect of DROP participation on the system.
a. A member's credited service and his accrued benefit under the system shall be
determined on the date his election to participate in the DROP first becomes
effective. For purposes of determining the accrued benefit, the member's base
pay for the purposes of calculating his average final compensation shall
include an mount equal to any lump sum payments which would have been
paid to the member and included as base pay as defined herein, had the
member retired under normal retirement and not elected DROP participation.
Member contributions attributable to any lump sums used in the benefit
calculation and not actually received by the member shall be deducted from
the first payments to the member's DROP account. The member shall not
accrue any additional credited service or any additional benefits under the
system (except for any additional benefits provided under any cost-of-living
adjustment for retirees in the system) while he is a participant in the DROP.
After a member commences participation, he shall not be permitted to again
contribute to the system nor shall he be eligible for disability or pre-retirement
death benefits, except as provided for in section 2-275, Reemployment after
retirement.
b. No amounts shall be paid to a member from the system while the member is
a participant in the DROP. Unless otherwise specified in the system, if a
member's participation in the DROP is terminated other than by terminating
his employment as a police officer, no amounts shall be paid to him from the
system until he terminates his employment as a police officer. Unless
otherwise specified in the system, amounts transferred from the system to the
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(c)
(1)
(2)
member's DROP account shall be paid directly to the member only on the
termination of his employment as a police officer.
Funding.
Establishment of DROP account. A DROP account shall be established for each
member participating in the DROP. A member's DROP account shall consist of
amounts transferred to the DROP under subsection (c)(2), and earnings on those
amounts.
Transfers from retirement system.
a. As of the first day of each month ora member's period of participation in the
DROP, the monthly retirement benefit he would have received under the
system had he terminated his employment as a police officer and elected to
receive monthly benefit payments thereunder shall be transferred to his DROP
account, except as otherwise provided for in subsection (b)(4)b. A member's
period of participation in the DROP shall be determined in accordance with
the provisions of subsections (b)(3) and (b)(4), but in no event shall it
continue past the date he terminates his employment as a police officer.
b. Except as otherwise provided in subsection (b)(4)b., a member's DROP
account under this subsection (c)(2) shall be debited or credited atter each
fiscal year quarter with earnings, determined as follows:
The average daily balance in a member's DROP account shall be
credited or debited at a rate equal to the net investment return realized
by the system for that quarter. "Net investment return" for the
purpose of this paragraph is the total return of the assets in which the
member's DROP account is invested by the board net of brokerage
commissions, transaction costs and management fees.
c. A member's DROP account shall only be credited or debited with earnings and
monthly benefits while the member is a participant in the DROP. A member's
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(2)
final DROP account value for distribution to the member upon termination of
participation in the DROP shall be the value of the account at the end of the
quarter immediately preceding termination of participation date plus any
monthly periodic additions made to the DROP account subsequent to the end
of the previous quarter and prior to distribution. If a member fails to
terminate employment after participating in the DROP for the permissible
period of DROP participation, then beginning with the member's 1st month
of employment following the last month of the permissible period of DROP
participation, the member's DROP account will no longer be credited or
debited with earnings, nor will monthly benefits be transferred to the DROP
account. All such non-transferred amounts shall be forfeited and continue to
be forfeited while the member is employed by the police department. A
member employed by the police department after the permissible period of
DROP participation will still not be eligible for pre-retirement death or
disability benefits, and he will accrue additional credited service only as
provided for in section 2-275.
(d) Distribution of DROP accounts on termination of employment.
(1) Eligibil#yfor benefits. A member shall receive the balance in his DROP account in
accordance with the provisions of this subsection (d) upon his termination of
employment as a police officer. Except as provided in subsection (d)(4), no amounts
shall be paid to a member from the DROP prior to his termination of employment as
a police officer.
Form of distribution.
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)(7). A member may elect, however, in such time and manner
as the board shah prescribe, that his DROP distribution be used to purchase
Ordinance No. 3966
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(3)
(4)
a nonfoffeitable fixed annuity payable in such form as 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. If the annuity form selected is
not a qualified joint and 50 percent survivor annuity with the member's spouse
as the beneficiary, the annuity payable to the member and thereafter to his
beneficiary shall be subject to the incidental death benefit rule as described in
Section 401(a)(9)(G) of the Code and its applicable regulations.
b. Ifa member dies before his bene~t is paid, his DROP account shall be paid to
his beneficiary in such optional form as his beneficiary may select. If no
beneficiary designation is made, the DROP account shall be distributed to the
member's estate.
Date of payment of distribution.
a. Except as otherwise provided in this subsection (d), distribution ora member's
DROP account shall be made as soon as administratively practicable following
the member's termination of employment.
b. In lieu ora distribution as described in paragraph a. above, a member may, in
accordance with such procedures as the board shall prescribe, elect to have
the distribution of his DROP account made as of the first day of any month
coincident with or following his termination of employment as a police officer;
provided, however, payments shall be made before the distribution date
elected by the member to the extent necessary to comply with the provisions
of subsections (d)(4) and (d)(6).
Age 70-1/2 required distribution. In no event shall the provisions of subsection (d)
operate so as to allow the distribution of a member's DROP account to be later than
the April 1 following the later of the calendar year in which he terminates his
employment as a police officer or he attains age 70-1/2. In the event a member is
required to receive payment while in service under the provisions of this subsection
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(e)
(4), he shall receive one lump sum payment on or before his required beginning date
equal to his entire DROP account balance and annual lump sum payments thereafter
of amounts credited to his DROP account during each calendar year. Upon the
member's subsequent termination of employment, payment of his DROP account shall
be made in accordance with the provisions of subsection (d)(2).
(5) Proof of death and right of beneficiary or other person. The board may require and
rely upon such proof of death and such evidence of the right of any beneficiary or
other person to receive the value ora deceased member's DROP account as the board
may deem proper and its determination of the right of that beneficiary or other person
to receive payment shall be conclusive.
(6) Distribution limitation. Notwithstanding any other provision of subsection (d), all
distributions from the DROP shall conform to the regulations issued under Section
401 (a)(9) of the Code, including the incidental death benefit provisions of Section
401(a)(9)(G) of the Code. Further, such regulations shall override any DROP
provision that is inconsistent with Section 401 (a)(9) of the Code.
(7) Directrolloverofcertaindistributions. This subsection applies to distributions made
on or after January 1, 2002. Notwithstanding any provision of the DROP to the
contrary, a distributec may elect to have any portion of an eligible rollover distribution
paid in a direct rollover as otherwise provided under the system in section 2-271.
Administration of DROP.
(1) Board administers the DROP. The general administration of the DROP, the
responsibility for carrying out the provisions of the DROP and the responsibility of
overseeing the investment of the DROP's assets shall be placed in the board. The
members of the board may appoint from their number such subcommittees with such
powers as they shall determine; may adopt such administrative procedures and
regulations as they deem desirable for the conduct of their affairs; may authorize one
or more of their number or any agent to execute or deliver any instrument or make
Ordinance No. 3966
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(3)
(2)
any payment on their behalt~ may retain counsel, employ agents and provide for such
clerical, accounting, actuarial and consulting services as they may require in carrying
out the provisions of the DROP; and may allocate among themselves or delegate to
other persons all or such portion of their duties under the DROP, other than those
granted to them as trustee under any trust agreement adopted for use in implementing
the DROP, as they, in their sole discretion, shall decide. A trustee shall not vote on
any question relating exclusively to himself.
Individualaccounts, records and reports. Theboard shall malntainrecords showing
the operation and condition of the DROP, including records showing the individual
balances in each member's DROP account, and the board shall keep in convenient
form such data as may be necessary for the valuation of the assets and liabilities of the
DROP. The board shall prepare and distribute to members participating in the DROP
and other individuals or file with the appropriate governmental agencies, as the case
may be, all necessary descriptions, reports, information returns, and data required to
be distributed or filed for the DROP pursuant to the Code and any other applicable
laws.
Establishment of rules. Subject to the limitations ofthe DROP, the board from time
to time shall establish rules for the administration of the DROP and the transaction of
its business. The board shall have discretionary authority to construe and interpret the
DROP (including but not limited to determination of an individual's eligibility for
DROP participation, the right and amount of any benefit payable under the DROP and
the date on which any individual ceases to be a participant in the DROP). The
determination of the board as to the interpretation of the DROP or its determination
of any disputed questions shall be conclusive and final to the ex'tent permitted by
applicable law.
(4) Limitation of liabili(v.
Ordinance No. 3966
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(0
(1)
(2)
(3)
a. The trustees shall not incur any liability individually or on behalf of any other
individuals for any act or failure to act, made in good faith in relation to the
DROP or the funds of the DROP.
b. Neither the board nor any trustee of the board shall be responsible for any
reports furnished by any expert retained or employed by the board, but they
shall be entitled to rely thereon as well as on certificates furnished by an
accountant or an actuary, and on all opinions of counsel. The board shall be
fully protected with respect to any action taken or suffered by it in good faith
in reliance upon such expert, accountant, actuary or counsel, and all actions
taken or suffered in such reliance shall be conclusive upon any person with
any interest in the DROP.
General provisions.
Amendment of DROP. The DROP may be amended by an ordinance of the city at any
time and from time to time, and retroactively if deemed necessary or appropriate, to
amend in whole or in part any or all of the provisions of the DROP. However, except
as otherwise provided by law, no amendment shall make it possible for any part of the
DROP's funds to be used for, or diverted to, purposes other than for the exclusive
benefit of persons entitled to benefits under the DROP. No amendment shall be made
which has the effect &decreasing the balance of the DROP account of any member.
Facility of payment. If a member or other person entitled to a benefit under the
DROP is unable to care for his affairs because of illness or accident or is a minor, the
board shall direct that any benefit due him shall be made only to a duly appointed legal
representative. Any payment so made shall be a complete discharge of the liabilities
of the DROP for that benefit.
Information. Each member, beneficiary or other person entitled to a benefit, before
any benefit shall be payable to him or on his account under the DROP, shall file with
Ordinance No. 3966
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the board the information that it shall require to establish his rights and benefits under
the DROP.
(4) Prevention of escheat. If the board cannot ascertain the whereabouts of any person
to whom a payment is due under the DROP, the board may, no eariier than three (3)
years from the date such payment is due, mail a notice of such due and owing
payment to the last known address of such person, as shown on the records of the
board or the city. If such person has not made written claim therefor within three (3)
months of the date of the mailing, the board may, if it so elects and upon receiving
advice from counsel to the DROP, direct that such payment and all remaining
payments otherwise due such person be canceled on the records of the DROP. Upon
such cancellation, the DROP shall have no further liability therefor except that, in the
event such person or his beneficiary later notifies the board of his whereabouts and
requests the payment or payments due to him under the DROP, the amount so applied
shall be paid to him in accordance with the provisions of the DROP.
(5) Written elections, notification.
a. Any elections, notifications or designations made by a member pursuant to the
provisions of the DROP shall be made in writing and filed with the board in
a time and manner determined by the board under rules uniformly applicable
to all employees similarly situated. The board reserves the right to change
from time to time the manner for making notifications, elections or
designations by members under the DROP if it determines after due
deliberation that such action is justified in that it improves the administration
of the DROP. In the event of a conflict between the provisions for making an
election, notification or designation set forth in the DROP and such new
administrative procedures, those new administrative procedures shall prevail.
b. Each member or Retiree who has a DROP account shall be responsible for
furnishing the board with his current address and any subsequent changes in
Ordinance No. 3966
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his address. Any notice required to be given to a member or Retiree
hereunder shall be deemed given if directed to him at the last such address
given to the board and mailed by registered or certified United States mail.
If any check mailed by registered or certified United States mail to such
address is returned, mailing of cheeks will be suspended until such time as the
member or Retiree notifies the board of his address.
(6) Benefits not guaranteed All benefits payable to a member from the DROP shall be
paid only from the assets of the member's DROP account and neither the city nor the
board shall have any duty or liability to furnish the DROP with any funds, securities
or other assets except to the extent required by any applicable law.
(7) Construction.
a. The DROP shall be construed, regulated and administered under the laws of
Florida, except where other applicable law controls.
b. The titles and headings of the subsections in this section 2-276 are for
convenience only. In the case of ambiguity or inconsistency, the text rather
than the titles or headings shall control.
(8) Forfeiture of retirement benefits. Nothing in this section shall be construed to
remove DROP participants from the application of any forfeiture provisions applicable
to the system. DROP participants shall be subject to forfeiture of all retirement
benefits, including DROP benefits.
(9) F~ffect of DROP participation on employment. Participation in the DROP is not a
guarantee of employment and DROP participants shall be subject to the same
employment standards and policies that are applicable to employees who are not
DROP participants.
SECTION 4: All Ordinances or parts of Ordinances in conflict herewith be and the same are
hereby repealed.
Ordinance No. 3966
Page 12
SECTION 5: Specific authority is hereby granted to codify and incorporate this Ordinance
in the existing Code of Ordinances of the City of San_ford.
SECTION 6: If any section, subsection, semence, 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 7: That this Ordinance shall become effective upon adoption.
PASSED AND ADOPTED this 12th day of December, A.D. 2005.
CITY COMMISSION OF THE CITY OF
SANFORD, FLORIDA
ATTEST:
CERT~ICATE
I, Janet R. Dougherty, City Clerk of the City of Sanford, Florida, do hereby certify that a tree
and correct copy of the foregoing Ordinance No. 3966, PASSED AND ADOPTED by the City
Commission of the City of Sanford, Florida, on the 12th day of December, 2005, was posted at the
from door of the City Hall in the City of Sanford, Florida, on the 14th day of December, 2005.
Asgthe City Clerk of the Cit6f of Sanfofd,
Florida
bm\san\poi\ 12-06-05.cln
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