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HomeMy WebLinkAbout4015 Amending and restating Chapter 2, Sanford Firefighter RetirementORDINANCE NO. 4015 AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA, AMENDING AND RESTATING CHAPTER 2, ADMINISTRATION, ARTICLE XVl, THE CITY OF SANFORD FIREFIGHTERS' RETIREMENT SYSTEM, OF THE CITY CODE OF THE CITY OF SANFORD; PROVIDING FOR DEFINITIONS; PROVIDING FOR MEMBERSHIP; PROVIDING FOR A BOARD OF TRUSTEES; PROVIDING FOR FINANCES AND FUND MANAGEMENT; PROVIDING FOR CONTRIBUTIONS; PROVIDING FOR BENEFIT AMOUNTS AND ELIGIBILITY; PROVIDING FOR OPTIONAL FORMS OF BENEFITS; PROVIDING FOR CLAIMS PROCEDURES; PROVIDING FOR MISCELLANEOUS PROVISIONS; PROVIDING FOR REPEAL OR TERMINATION OF SYSTEM; PROVIDING FOR DIRECT TRANSFERS OF ELIGIDLE ROLLOVER DISTRIBUTIONS AND ELIMINATION OF MANDATORY DISTRIBUTIONS; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR ABSENCES PURSUANT TO THE FAMILY MEDICAL LEAVE ACT; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR MILITARY SERVICE PRIOR TO EMPLOYMENT; PROVIDING FOR THE PURCHASE OF CREDITED SERVICE FOR PRIOR FIRE SERVICE; PROVIDING FOR REEMPLOYMENT AKI'ER RETIREMENT; PROVIDING FOR A DEFERRED RETIREMENT OPTION PLAN; PROVIDING FOR SEVERABILITY OF PROVISIONS; PROVIDING FOR CODIFICATION; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Sanford Firefighters are presently provided pension and certain other benefits under Ordinances of the City of Sanford and; WHEREAS, the City Commission desires to clarify and restate the provisions of the Firefighters' Retirement System to consolidate all prior ordinances end Code provisions and to incorporate Federal law and the applicable provisions of Chapter 175, Florida Statutes; NOW, THEREFORE, BE lT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA; SECT1ON 1: ~Hmt Chapter 2, Administration, Article XVI, the City of Sanford Firefightars' Retirement System, Sections 2~281 through 2-296, inclusive, of the City of Sanford Code of Ordinances, be and the same is amended and restated as set forth in the document designated FIREFIGHTERS' RETIREMENT SYSTEM, attached hereto and made a part hereof. SECTION 2: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 3: 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 4: That this Ordinance shall become effective upon its adoption. PASSED AND ADOPTED this 25th day of September, A.D. 2006. City Commiaaion of the City of Sanford, Florida Attest: Cynthia Porter, Acting City Clerk Linda n, Mayor Certificate I, Cynthia Porter, Acting City Clerk of the City of Sanford, Flodda, do hereby certify that a true and correct copy of the foregoing Ordinance No. 4015, Passed and Adopted by the City Commission of the City of Sanford, FIodda, on the 25th day of September, 2006, was posted at the front door of the City Hall in the City of Sanford, Flodda, on the 27th day of September, 2006. Cynthia Porter, As the Acting City Clerk of the City of Sanford, Florida Approved as to form: CITY ATTORNEY CITY OF SANFORD CODE OF ORDINANCES ARTICLE XVI, FIREFIGHTERS' RETIREMENT SYSTEM Sec. 2-281. Definitions. (1) As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Accumulated contributions means a member's own contributions, without interest, plus the amount described in Section 2-286 (e)(4). For those members who purchase credited service with interest or at no cost to the system, any payment representing the amount attributable to member contributions based on the applicable member contribution rate, interest and any required actuarially calculated payments for the purchase of such credited service, shall be included in accumulated contributions. 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%) per annum. Average final compensation means one-twelfth ( 1/I 2) of the average base pay of the five (5) best years of credited service of the last ten (10) years prior to rctiremcnl, termination or death, or the career average as a full-time firefighter, whichever is greater. A year shall be twelve (12) consecutive months. Basepay means the pay for the grade and step in thc 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" as well as "Paramedic Incentive" paid to firefighters who are certified as paramedics. Compcnsatiou in excess of thc limitations set ft)rth in Section 401(a)(17) of the Code shall be disregarded. The Innitation on compensation for an "eligible employee" shall not be less than the amonnl which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individnal who was a member before the first plan year beginning after December 3 I, 1995. Beneficiary means the person or persons entitled to receive bcnelits hcrcundcr al the death ora member who has or have been designated in writing by the member and filed with thc board. If no such designation is in effect, or if no person so designated is living, at fi~e time of death of thc member, the beneficiary shall be thc estate of thc member. Board means thc board of trustees, which shall administer and manage thc System herein provided and serve as trustees of the Innd. City means City of Sanford, Florida. Code means the Internal Rcvcnue Code nf 1986, as amended from time to lime. Credited service means the total number of years anti fractional parts ol 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 fircfighter. Upon any reemployment. a fircfighter shall not receive credit for years or fi-actiomd parts of years of scrvicc for which lie has withdrawn his accumulated contributions from thc fund. unless thc fircfightcr icpavs into the fund, within ninety (90) days after his reemployment as a fircfighlcr, all thc connibutions hc has withdrawn, pins interest for thc period thc funds xvcrc wilh(h awn at thc rate assmned by the actuarial valnation for irc fired on the contribution from thc dale of withdrawal to date ofrcpayu}cnt. 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 thc employ of the ftre department pending the possibility of being rcemployed as a firefighter, without losing credit for the time that he was a member of the system. Ifa vested member leaves the employ of the fire department, his accumulated contributions will be returned only upon his written request. Ifa 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 recmployed within five (5) years, his accumulated contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon the written request of the member and upon completion of a written election to receive a cash lump sum or to rollover the lump sum amom~t on forms designated by thc board. Upon return ora member's accumulated contributions, all of his rights and benefits under the syste~n are forfeited and tern~inated. In addition, a member may receive credited scrvice for periods which the member is absent from employment and receiving workers' compcnsation 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 thc Florida Workers' Compensation Law. Thc years or fractional parts of a year that a member serves in the military service of thc Armed Forces of thc United States, thc United States Merchant Marine orthe United States Coast Guard, voluntarily or involuntarily, after separation fi-om employment as a firefighter with the city to perfom~ training or service, shall be added to his years of credited service fi)r all purposes, including vesting, provided that: (a) The ~nember must return to his employment as a firefighter within one (1) year from thc earlier of thc date of his military discharge or release from service. (b) The member is entitled to rcmnployment under the provisions of thc Uniformcd Services Employment and Recmploymcnt Rights Act (USERRA), (P.L.103-353). (c) The maximum credit liar military service pursuant to this paragraph shall be fivc (5) years. Effective date means thc date on which this articlc bccomcs effective. Firefighter means an actively employed full4ime pcrson employed by thc city, including his initial probationary employment period, who is certified as a fircfighter as a condition of employmcnt in accordance ;vith thc provisions of Section 633.35, Florida Statntes, and whose duty it is to extinguish rims, to protect life and to protect property. F~mdmeans the trust fund established herein as part of thc systcm. Gross pay means thc total cash rcmuncralion, excluding worker's compensation. Member mcans an actively employed tirefightcr who fulfills the prescribed membership requirements. Benefit improvements which, in thc past, have been provided for by amcndmcnts to the system adopted by city ordinance, and any bcncfit improvements which might be made in thc lhture shall apply prospectively and shall not apply to members who terminate cmployment or who retire prior to the effective date of any ordinance adopting such benefit improvements, unless such ordinance specifically provides to the contrary. Plan Year means the twelve (12) month period beginning October 1 and ending September 30 of the following year. Retiree means a member who has entered retirement status. Retirement means a member's separation from city employment with eligibility for immediate receipt of benefits under the system or entry into the Deferred Retirement Option Plan. Spouse means the lawful wife or husband of a member or retiree at the time benefits become payable. System means the City of Sanford Firefighters' Retirement System as contained herein and all amendments thereto. (2) Masculine gender. The inasculine gender, where used herein, unless thc cnntext specifically requires otherwise, shall include both the feminine and masculine genders. Sec. 2-282. Membership. (1) Conditions of eh~,ibility. (a) All firefighters as of the effective date, and all future new firefighters, shall become members of this system as a condition of employment. (b) All future new firefighters shall be required to cnmplete a medical examination as prescribed by the city. (2) Beneficiaries. (a) Each member or retiree may, on a form provided lbr that purpose, signed and filed with the board, designate a beneficiary (or beneficiaries) to receive thc benefit, if any, which may be payable in the event of his death. Each designation may be revoked or changed by such member or retiree by signing and filing with the board a ncxv designation-of-beneficiary form. Upon such change, the rights of all prcvionsly designated beneficiaries to receive any benefits umler thc system shall cease. (b) Ifa deceased member or retiree failed to name a beneficiary in the manner prescribed in subsection (a), or if the beneficiary (or beneficiaries) hatred by a deceased member or retiree predeceases the member or retiree, the death benefit, if any. which may be payable under the system with respect to such deceased member or retiree, shal-I be paid to the estate of the member or retiree and the buard, n ts discretion, may direct that the commuted value of the remaining monthly income benefits be paid in'a hunp (c) Any payment made to any person pursuant to this section shall operate as a complete discharge of all obligations under the system with regard to the deceased member and any other persons with rights under the system and shall not be sul/ject to review bv anyone bu! shall be final, binding and conclusive on all persons cvcr intcrest6~l hereunder. 5 Sec. 2-283. Board of trustees. (1) Board of trustees; responsibilities; composition. The sole and exclusive administration of and responsibility for the proper operation of thc system and for making effective the provisions of this article arc hereby vested in a board of trustees. The board of trustees is hereby designated as thc plan administrator. The board of trustees shall consist of five (5) trustees, two (2) of whom, unless other~vise prohibited by law, shall be legal residents of thc city, who shall bc appointed by the city commission, and two (2) of whom shall be members of thc 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 (4) trustees as provided for herein, and such person's name shall be submitted to thc city commission. Upon receipt of thc 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 thc same rights as each of the other four (4) trustees appointed or elected as herein provided and shall serve a two (2) year term unless he sooner vacates the office. Each resident trustee shall serve as trustee for a period of two (2) years, unless he sooner vacates the office or is sooner replaced by the city commission at whose pleasure he shall serve. The two (2) resident trustees shall serve staggered terms. Each member trustee shall serve as trustee for a period of two (2) years, unless he sooner leaves the employment of the city as a firefightcr or otherwise vacates his office as trustee, whereupon a successor shall be chosen in the same manner as thc departing trustee. Each trustee may succeed himself in office and the two (2) 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 official status unless so required by law. DROP participants can be elected as but not vote for elected trustees. Thc 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. (2) Officers. The trustees shall, by a mr[jority vote, elect a chairman, vice-chairman and a secretary/treasurer. The secretary/treasurer of the board shall keep a complete minute book 9fthe actions, proceedings, or hearings of thc board. The trustees shall not receive any compensation as such, but may receive expenses aod 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 thc trustees at any meeting of the board. A trustee shall abstain from v. oting ~s the result of a conflict of interest and shall comply with the provisions of Section 112.3143, Florida Statutes. (4) Accounting, expenses, etc. Thc buard 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 thc IBnd at such rates and in such amounts as the board shall agree. In the event the board chooses to use thc city's legal counsel, actuary or other professional, technical or other advisors, it shall do so only under terms ami conditions acceptable to thc board. (5) Duties. Thc duties and responsibilities of thc board shall inclndc, but not necessarily be limited to, the lbllowing: (a) To construe the provisions or' the system and determine all questions arising thereunder. (b) 'Fo determine all qucstiuns relating to eligibility and membership. 6 td) re) tg) (h) (i) O) (6) (7) (a) (b) To determine and certify the amount of all retirement allowances or other benefits hereunder. To establish uni form rules and procedures to be followed for administrative purposes, benefit applications and all matters required to administer the system. To distribute to members, at regular intervals, information concerning the system. To receive and process all applications for benefits. 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. 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 syslem. To perform such other duties as are required to prudently administer the system. Roster t~fretirees. 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 thc 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 tbe nmne, address, date of employment and date of termination ofemploymem These records shall be exempt from disclosure to the extent provided fur in Chapter 1 19, Florida Statutes. 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 Section 175.261, Florida Statutes. CiO, lia£~on to board. ']'he city finance director shall act as a city liaison to the board. Indemnification. To the extent not covered by insurance contracts in force from time to time, and to the extent not covered by thc Sovereign Immunity Statute, the city shall indemnify and bold harmless members of thc board frum 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 tu 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 (7). Thc city reserves the right, in its sole discretion, to settle or not settle the claim at any time, and to appeal or tu not appeal from any adverse judgment or ruling, and in either event will indemnify and hold harmless any members of the board from the judgment, execution, or levy thereon. This subsection sball not be coustrucd so as to relieve any insurance company or other entity liable to defend lhc claim or liable for payment ofthejudgmem or claim, from any liability, nor docs tbis subsection waive any provision ()flaw aftbrdmg thc (c) city immuni/y from any suit in whole or part, or waive any other substantive or procedural rights the city may have. 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 off]ce. Sec. 2-284. Finances and fund management. (1) Establishment offund. As part of the system, there is hereby established thc fund, into which shall be deposited all of the contributions and assets whatsoever attributable to thc system, including the assets of the prior firefighters' retirement system. (2) Custody and supervision offund assets. Thc actual custody and supervision of the fund (and assets thereof) shall be vested in the board. Payment ofbcncfits and disbursements from the fund shall be made by the disbursing agent but only upon written authorization from the board. (3) Deposits of fund assets; investment management. All funds of the firefighters' retirement systmn may be deposited by the board with the finance director of the city, acting in a ministerial capacity only, who shall be liable for the safe keeping of the funds in the same manner and to the same extent as he is liable for the safekeeping of funds for the city. However, any funds so deposited with the finance director of the city shall be kept in a separate fund by the finance director or clearly identified as such funds of thc firefighters' retirement system. In lieu thereof, the board shall deposit the funds of the firefighters' rctirmnent system in a qualified public depository as defined in Section 280.02, Florida Statutes, which depository with regard to snch funds shall confom~ to and be bound by all of the provisions of Chapter 280, Florida Statutes. fu order to fulfill its investment responsibilities as set forth herein, thc board may retain the services of a custodian bank, an investment advisor registered under the Investment Advisors Act of 1940 or otherwise exempt from such required registration, an insurance company, or a combination of these, for the purposes of investment decisions and management. Such investment manager shall have discretion, subject to any guidelines as prescribed by the board, in thc investment of all fund assc~s. (4) Required financial records. All funds and securities of thc system may be corn mingled in the fund, provided that accurate records are maintained at all times rellectmg the financial composition of the fund, including accurate current accounts and entries as regards the following: (a) Current amounts of accumulated contributions of members on both an individual anti aggregate account basis; (b) Receipts and disbursements; (c) (d) Benefit payments; Current amounts clearly reflecting all monies, funds and assets whalsoevcr attributable to contributions and deposits from the city; (e) All interest, dividends and gains (or fosses) whatsocvcr: and Such other entries as may be properly required so as to reflect a clear and complete financial repor~ of thc fund. (5) AnnUalaudit. An audit shall be performed annually by a certified public accountant for the most recent fiscal year of the system showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Snch report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. (6) Investmentpowersandauthority(?lboard. The board shall have the following invest- ment powers and authority: (a) The board shall be vested with fifll legal title to saki fund, subiect, however, and in any event to the authority and power of thc city com~nission t0 amend or terminate this fund, provided that no amendment or fund termination shall ever result in the use of any assets of this fund except for the payment of regular expenses and benefits under this system, except as otherwise provided herein. All contributions from tilne to time paid into the fund, and the incomc thcrcof, without distinction between prin~ cipal and income, shall be held and adminislcrcd by the board or its agent in the fund and the board shall not bc required to scgrcgatc or invest separately any portion of the fund. (b) Alimonies paid into or held in the fund shall be invested and reinvested by the board and the investment of all or any part of such funds shall be limited to: Annuity and life insurance comracts with tifc insurance companies in amounts sufficient to provide, in whole or m parL the benefits to which all of the members in the fund shall be entillcd under the provisions of this system and pay the initial and subsequent premium thereon. Time or savings accounts of a national bank, a state bank insured by the Bank Insurance Fond or a savings/buikling and loan association insured by the Savings Association Insurance Fnnd which is administered by the Federal Deposit Insurance Corporation tlr a state or fi2deral chartered credit union whose share accounts arc insured by thc National Credit Union Share Insurance Fund. Obligations of the United States or obligatious guaranteed as to principal and interest by the government of the United States or by an agency of the government of the United States. 4. Bonds issued by thc State of israel. Stocks, commingled funds administered bv National or State Banks, mutual funds and bonds, or evidences of mdcbicd'ncss~ provided that: All individually held securilics and all securities in a commingled or mutual fund ~nust bc issued or guaranteed by a corporation organized under the laws of the United ,grates. any state or organized territory of the United States, tlr ibc l)islrJcl of ('oh~mbia. Up to ten percent (10%) of thc asscls of thc fired may be invested in tbreign securities. 9 (c) (d) (e) (0 (g) (h) (i) The board shall not invest more than five (5) percent of its assets in the common stock, capital stock, or convertible securities of any one (1) issuing company, nor shall the aggregate investment in any one issuing company exceed five (5) percent of the outstanding capital stock of that company; nor shall the aggregate of its investments in common stock, capital stock and convertible securities at cost exceed sixty-five (65) percent of the assets of the fund. At least once every three (3) years, and more often as determined by the board, the board shall retain a professionally qualified iudependent consultant, as defined in Section 175.071, Florida Statutes, to evaluate the performance of all current investment managers and make recommendations regarding the retention of all such investment managers. These rccolnmendations shall be considered by the board at its next regularly scheduled meeting. The board may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable, having regard for the cash requirements of the system. Neither the board nor any trustee shall be liable for lhe making, retention or sale of any investment or reinvestment made as hereto provided, nor for any loss or diminishment of the fund, except that due to his or its own gross negligence, willful misconduct or lack of good faith. The board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the fund. The board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitution; to participate in mergers, reorganizations, recapitalizations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the Trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of thc premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of thc powers of an owner with respect to stocks, bonds, or other invcstlnents comprising the fund which it may deem to be to the best interest of thc fund to exercise. Thc board shall not be required to make any inventor)' or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. Where any action which thc board is required to take or any duty or function which it is required to perform either under thc terms herein or under the general law applicable to it as trustee onder this article, can reasonably be taken or performed only after receipt by it from a member, thc city, or any other entity, of specific information, certification, direction or instructions, the board shall be free of liability in failing to take such action or perlbrm such duty ur function until such information. certification, direction or instruction has been received by it. 10 (i) Any overpayments or underpayments from the fund to a mcmber, retiree or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the board in such a manner that the Actuarial Equivalent of the benefit to which the member, retiree or beneficiary was correctly entitled, shall be paid. Overpayments shall be charged against payments next succeeding the correction, or collected in another manner if prudent. Underpaymcnts shall be made up from the fund in a prudent manner. (k) The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits provided for herein. 0) In any application to or proceeding or action in the courts, only the board shall be a necessary party, and no member or other person having an interest in the fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. (m) Any of the foregoing powers and functions reposed in thc board may be perforated or carried out by the board through duly authorized agents, provided that thc board at all times maintains continuous supervision over the acts of any such agent: provided further, that legal title to said fund shall always remain in the board. Sec. 2-285. Contributions. ( 1 ) Member contributions. (a) Amount. Each member of the system shall be required to make regular contributions to thc fund in the amount of seven (7) percent of his base pay. Member contributions withheld by the city on behalf of the member shall be deposited with the board immediately after each pay period. The contributions made by each member to thc fund shall be designated as employer contributions pursuant to Section 414(h) of the Code. Such designation is contingent upon the contributions being excluded from the melnbers' gross income for Federal lncome Tax purposes. For all other pnrposcs of the system, such contributions shall be considered to be member contributions. (b) Method. Such contributions shall be made by payroll deduction. (2) State contributions. Any monies received or receivable by reason of laws of the Statc of Flurid& for the express purpose of funding and paying for retirement benefits for firefighters of the city shall be deposited in thc fund comprising part of this system immediatel, and under no circumstances more than five (5) days after receipt by the city. (3) City contrtbutions. So long as this system is in cflkct, the c~ty shall make contributions to the fund in an amount equal to the difference in each year, between thc total aggregate member contributions for the year, plus state contributions which arc legally available to offset city funding for such year, and thc total cost for the year, as shown by the most recent actuarial valuation of the system, but in no event shall the city's annual contribution bc less than ten (10) percent of thc total base pay of members for funding benefits provided tbr herein, including that in section 2~286(e)(4). Such annual requirement shall be funded in quarterly installmcnts. Thc total cost for any year shall be defined as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability as provided in Pan Vll of Chapter I 12, Florida Statutes. II (4) Other. Priv~te donations, gifts and contributions may be deposited to the fund, but such deposits must be accounted for separately and kept on a segregated bookkeeping basis, funds arising from these sources may be used only for additional benefits for members, as determined by the board, and may not be used to reduce what would have otherwise been required city contribu- tions. Sec. 2-286. Benefit amounts and eligibility. (a) Normal retirement. ti) Normal retirement date. A member's normal retirement date shall be the first day of the month coincident with, or the next following the earlier of the attainment of age fifty-five (55) and the completion of ten (10) years of credited service or the completion of twenty-five (25) years of credited service, regardless of age. A member may retire on his normal retirement date or on the first day of any month thereafter, and each member shall become one hundred (100) pcrccm vested in his accrued benefit on the member's normal retirement date. Normal retirement under the system is retirement from employment with the city on or after the nom~al retirement date. (2) Normal retirement benqfit. A member retiring hereunder on or after his normal retirement date shall receive a monthly benefit which shall commence on the first day of the month coincident with or next following his retirement date anti be continued thereafter during the member's lifetime, ceasing upon death, but with one hundred twenty (120) monthly payments guaranteed in any event. Thc monthly retirement benefit shall equal three and eight hundredths (3.08) percent of average final compensation, for each year of credited service. (b) Early retirement. ti) Early retirement date. A member may retire on his early retirement date which shall be the first day of any month coincident with or next following the attainment of age forty-five (45) and the completion of ten (10) years of credited service. Early retirement under thc system is retirement from employment with the city on or after the early retirement date and prior to the normal retirement date. (2) Early retirement benqfit. A member retiring hereunder on his early retirement date may receive either a deferred or an immediate monthly retirement benefit payable m the same form as for normal retirement as follows: A deferred monthly retirement benefit which shall commence on what would have been his normal retirement date had he continued employment as a firefighter and shall be continued on the first day of each month thereafter. The amount of each such deferred monthly retirement benefit shall be determined in the same manner as for retirement on his normal retircmcut date except that credited service and average final compensation shall be determined as of his early retirement date; or An immediate monthly retirement benefit which shall commence on his early retirement date and shall be continued on the first day of each month thereafter. The benefit payable shall be as determined in paragraph a. above, reduced by three (3) percent for each year by which the commencement of 12 (c) ()) (2) benefits precedes the date which would have becn the member's normal retirement date had he continued employment as a firefightcr. Pre-retirement death. 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 perfom~ance of duty, shall receive a refund of one hundred (100) percent of the member's accumulated contributions. Deceased members vested or eligible for retirement. The 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: 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 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 beneficiary. The benefit shall be calculated as for normal retirement based on the deceased member's credited service and avcrage final compensation as of the date of his death and reduced as for early retirement, if applicable. The 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. If the deceased member was eligible for normal or early retirement, the 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 dcceased member's otherwise early or normal retirement date, at the option of the beneficiary. Thc benefit shall be calculated as for normal retirement based on the deceased member's credited service and average final compensation as of thc date of his death and reduced its for early retirement, if applicable. In any'event, if thc membcr's death is caused by thc perlbrmance of his duties as a firefighter (in line of duty), lhe beneficiary shall receive a benefit payable [br ten (10) years, beginning on thc first day of thc month following thc member's death. The bcncfit shall be calculated as fur nom~al retirement (unreduced) based on the deceased member's credited scrvicc and average final compcnsation as of thc date of dcath. Thc minimnm bcncfit shall be ibrly (40) percent of average final compensation. Thc presumptions in subsection ((1)(2) of this section shall apply in determining whether a death was in line of duty. A beneficiary may elect an actuarial equivalent life annuity optional lbrm of benefit, and the board may elect to make a lump sum payment pursuant to section 2-287, subsection (7). A beneficiary may, in lieu of any benefit provided for in a. or b. above, elect to receive a retired of thc deceased member's accumulated comributions. 13 (d) Disability. (1) Disabilitybenffitson-duty. Any member who shall become totally and permanently disabled to the extent that he is unable, by reason of a medically determinable physical or mental impairment, to render useful and efficient service as a firefighter, which disability was directly caused by the performance of his duty as a fircfighter, shall, upon establishing the same to the satisfaction of the board, be entitled to a monthly pension equal to three and eight hundredths (3.08) percent of base pay at the date of disability for each year of credited service, but in any event the minimum amount to be paid to the member shall be equal to sixty (60) percent of the base pay of the member at the date of disability. Notwithstanding the previous sentence, in the event a member is determined by the board to be disabled in-line of duty and the disability resulted fi.om the perpetration of an intentional act of violence directed toward the fircflghter and the board reasonably believes the perpetrator intended to cause great bodily harm or permanent disfigurement of the firefighter, the minimum amount paid to thc member shall be eighty (80) percent of thc average final compensation of the member. Terminated persons, either vested or non-vested, are not eligible for disability benefits, except that those terminated by the City for medical reasons may apply for a disability within thirty (30) days after termination. __.(2) On duty presumptions. (a) ?resumption. Any condition or impairment of health of a member caused by hypertension or heart disease shall be presumed to have been suffered in line of duty unless the contrary Js shown by competent evidence, provided that such member shall have successfully passed a physical examination upon entering into such service, which examination failed to reveal any evidence of such condition; and provided further, that such presumption shall not apply to benefits payable or granted in a policy of life insurance or disability insurance. .(b) Additionalpresumption. Thc presumption provided fur in this subparagraph (b) shall apply only to those conditions described in this subparagraph (b) that are diagnosed on or after January 1, 1996. __D~finitions. As used in this subsection (2)(b), the following definitions apply: "Body tluids" means blood and body fluids containing visible blood and other body fluids to which universal prccautfuns for prevention of occupational transmission of blood-borne pathogens, as established by the Centers lbr Disease Control, apply. For purposes of potential transmission of meningococcal meningitis or tuberculosis, thc tcnn "body fluids" includes respiratory, salivary, and sinus fluids, including droplets, sputum, and saliva, mucous, and other lluids through which infectious airborne organisms can be transmitted between persons. ___"Emcrgcncy rescue or public safety melnber" means any member employed full time by the city as a firefightcr. paramedic, emergency medical tcchnician, law enforccmenl 14 officer, or correctional officer who, in the course of employment, runs a high risk of occupational exposure to hepatitis, meningococcal meningitis, or tuberculosis and who is not employed elsewhere in a similar capacity. However, the term "emergency rescue or public safety member" does not include any person employed by a public hospital licensed under Chapter 395, Florida Statutes, or any person employed by a subsidiary thereof. __"Hepatitis" means hepatitis A, hepatitis B, hepatitis non-A, hepatitis non:B, hepatitis C, or any other strain of hepatitis generally recognized by the medical community. "High risk of occupational exposure" means that risk that is incurred because a person sul~ject to the provisions of this subsection, in perfomung the basic duties associated with his employment: __Provides emergency ~nedical treatment in a non- health-care setting where there is a potential for transfer of body fluids between persons; ii. At the site of an accidcut, fire, or nther rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids; iii. __.Engages in the pursuit, apprehension, and arrest of law violators or suspected law violatom and, in performing such duties, may be exposed to body fluids; or iv. Is responsible tbr the custody, and physical restraint when necessary, of prisoners or i~unates within a prison, jail, or other criminal detention facility, while on work detail outside the facility, or while being transported and, in performing such duties, may bc exposed to body fluids. "Occupational exposure," in thc case of hepatitis, mcningococcal meningitis, or tuberculosis, means an exposure that occurs (luring the performance o(job duties that may place a worker at risk of infection. Presumption. Any emergency rescue or public salary me~nber who suffers a condition or impairment of health that is caused by hepatitis, meningococcal meningitis, or tuberculosis, that requires medical treatment, and that results in total or partial disability or death shall be presumed to have a disability suffered in the line of duty, unless the contrary is shown by competent evidence: howcvcr, in order lo be cntillcd to the prcsnmption, the member must, by written affidax it as provided in Section 92.50, Florida Statutes, verify by written declara- tion that, to the best of his knowledge and belief: In the case of a medical condition caused by or derived from hepatitis, he has not: Been exposed, through transfer of bodily fluids, to any person known to have sickness or medical conditions derived from hepatitis, outside the scope of his employment; ii. Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with his present employment, or received any blood products tbr the treatment of a coagulation disorder since last undergoing medical tests for hepatitis, which tests failed to indicate the presence of hepatitis; iii. iv. Engaged in unsafe sexual practices or other high-risk behavior, as identified by the Centers fur Disease Control or the Surgeon General of the United States or had sexual relations with a person known to him to have engaged in such unsafe sexual practices or other high-risk behavior; or Used intravenous drugs not prescribed by a physician. In the case of meningococcal meningitis, in the 10 days immediately preceding diagnosis he was not exposed, outside the scope of his employment, to any pcrsou known to have meningococcal meningitis or known to be an asymptomatic carrier of the disease. In the case of tuberculosis, in the period of time since the member's last negative tuberculosis skin test, hc has not been exposed, outside the scope of his mnploymcnt, to any person known by him to have tuberculosis. Immunization. Whenever any standard, medically recognized w~ccinc or other form of iminunization or prophylaxis exists for thc prevention ora communicable diseasc tbr which a presumption is granted under this section, if ~ncdically indicated m thc given circumstances pursuant to imnmnization policies established by the Advisory Committee on Immunization Practices of thc U.S. Public ttealth Service, an emergency rescue or public safety membcr may be required by the city to undergo the immunization or prophylaxis unless the member's physician determines in writing that thc immunization or other prophylaxis would pose a significant risk m the member's health. Absent such written declaration, failurc or refusal by an emergency rescue or public safety mcmbcr to trade, go 16 such immunization or prophylaxis disqualifies the member/?om the benefits of the presumption. Record of exposures. The city shall maintaiu a record of any known or reasonably suspected exposure of an emergency rescue or public safety member in its employ to the disease described in this section and shall immediately notify the member of such exposure. An emergency rescue or public safety mmnber shall file an incident or accident report with the city of each instance of known or suspected occupational exposure to hepatitis infection, meningococcal meningitis, or tuberculosis. Required medical tests; preemployment physical. In order to be entitled to the presumption provided by this section: (3) (4) An emergency rescue or public salkty member must, prior to diagnosis, have undergone standard, medically acceptable tests for evidence of the co~nmunicable disease for which thc presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to iudicate the presence of infection. This paragraph docs not apply in the case of meningococcal meningitis. On or after June 15, t995, an emergency rescue or public safety member may be required to underg6 a prccmploymem physical examination that tests for and fails to reveal any evidence of hepatitis or tuberculosis~ Disability benefits off-duty. Any member with five (5) years or more credited service who shall becgme totally and permanently disabled lo the extent that he is uuablc, by reason of medically determinable physical or mental impairment, to render useful and efficient service as a firefighter, which disability is not direcflv caused by thc performance of his duties as a firefighter shall, upon cslablishing' thc same to thc satisfaction of the board, be entitled to a monthly pension equal to three and eight hundredths (3.08) percent of base pay at the date of disability lbr each vcar of credited servit:e. Terminated persons, either vested ur non vesled, arc not clig-ible fl)r disability benefits, except that those terminated by the City fi)r medical reasons may apply for a disability within thirty (30) days after termination. Conditions disqualifying disability benq[~ts. Each member who is claiming disability benefits shall establish, to the satisfac on of he board, that such disability was m~t occasioned primarily by: Excessive or habitual use of any drags, intoxicanls or narcotics. Injury or disease sustained while willfully and illegally pamcipaling m lights. riots or civil insurrections or while committing a crime. Injury or disease sustained while serving in any branch of thc Armed Forces. Injury or disease sustained after his employ~ncnt as a fircfighter with thc City of Sanford shall have terminated. 17 (5) Physical ex[~mination requirement. A meinber shall not become eligible for disability benefits until and unless he undergoes a physical examination by a quali- fied physician or physicians and/or surgeon or surgeons, who shall be selected by the board for that purpose. The board shall not select the member's treating physician or surgeon for this purpose cxcept in an unusual case where the board determines that it would be reasonable and prudent to do so. Any retiree receiving disability benefits under provisions of this article may be required by the board to sub,nit sworn statements of his condition accompanied by a physician's statement (provided at the retiree's cxpense) to the board annually and may be required by the board to undergo additional periodic re-examinations by a qualified physician or physicians and/or surgeon or surgeons who shall be selected by the board, to determine if such disability has ceased to exist. If the board finds that the retiree is no longer permanently and totally disabled to the extent that he is unable to render useful and efficient servicc as a firefighter, the board shall recommend to the city that the retiree be returned to performance of duty as a firefighter, and the retiree so returned shall cnjoy the same rights that he had at the time he was placed upon pension. In the event thc retiree so ordered to return shall refuse to comply with the order within thirty (30) days front the issuance thereof, he shall forfeit the right to his pension. The cost of the physical examination and/or rc-examination of the member claiming or the retiree receiving disability benefits shall be borue by thc fund. All other reasonable costs as determined by thc board incident to the physical examination, such as, but not fimitcd to, transportation, meals and hotel accommodations, shall be borne by the fund. If the member recovers from disability and reenters the service of the city as a firefighter, his service will be deemed to have been continuous, but the period beginning with the first month for which he received a disability retirement income payment and ending with the date he reentered the service of the city will not be considered as credited service for the purposes of the system. The board shall have the power and authority to make the final decisions regarding all disability claims. (6) Disabilitypayments. The monthly benefit to which a member is entitled in the event of the member's disability rctire~nent shall be payable on the first day of the first month after the board determines such entitle~ncnt. 110wcver, the monthly retirement income shall be payable as of the date the board detcnmned such entitlement, and any portion duc for a partial month shall bc paid together with the first payment. The last payment will be: a. If the retiree recovers fi-om the disability prior to his normal retirement date, the payment due next preceding thc da~c of such recovery; or b. If the retiree dies without recovering t¥om disability or attains his normal retirement date wh e still disabled, the payment duc next preceding his death or thc 120th 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 18 section 2-287, subsection (l)(a) or (1)(b), which shall be the actuarial equivalent of thc normal forn~ of benefit. (7) Workers'compensation. When a retiree is receiving a disabilitypension and workers' compensation benefits pursuant to Chapter 440, Florida Statute and/or any other disability benefit provided by the city, for the same disability, and the total monthly benefits received from all sources exceeds one hundred (100) percent of the member's average monthly wage, as defined in Chapter 440, Florida Statutes, the disability pension benefit shall be reduced so that the total monthly amount received by thc retiree does not exceed one hundred (100) percent of average monthly wage. The amount of any lump sum workers' compensation payment shall be converted to an equivalent monthly benefit payable for ten (10) years certain by dividing the lump sum amount by 83.9692. Notwithstanding the foregoing, in no event shall the disability pension benefit be reduced below the greater of forty-two percent (42%) of average final compensation or two percent (2%) of average final compensation times years of credited service. (e) Vesting. If a member terminates his employment as a firefightcr, either voluntarily or by discharge, and is not eligible for any other benefits under this system, the member shall be entitled to the following: If thc tnember 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 thc tncmber'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 uthcrw, ise early or normal retirement date. If the member does not withdraw his accumulated contributions and does not survive to his otherwise normal or early retirement date, his designated beneficiary shall be entitled to a bcncfit as provided herein for a deceased member, vested or eligible for retirement under Pre-retirement death (3) In thc 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) perccm of thc member's base pay for all years of credited service between October I, 1976 and June 30, 1998. (f) Maximum pension. Basir 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 thau a straight life annuity with nn ancillary benefits shall be adjusted, as provided by Treasury Regulations, so that such benefits are the actuarial cquivalcnt of a 19 (2) straight life annuity. For purposes of this subsection, the following benefits shall not be taken into account: Any ancillary benefit which is not directly related to retirement income benefits; Any other benefit not required under Section 415(b)(2) of thc [Internal Revenue] Code and Regulations thereunder to be taken into account for pur- poses of the limitation of Section 415(b)(1 ) of thc [Internal Revcunc] Code. 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 4140) of the [Internal Revenue] (.'ode) 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 ( I ) plan. (3) Adjustments in limitations. (4) 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 rctircmcnt iucomc beuefit begins) which is equivalent to a one hundred sixty thousand dollm ($100.000) annual benefit beginning at age sixty-two (62). In the event the member's benefit is based on at least fillecn (15) years of credited service, the adjustments provided for in a. above shall not apply. The reductions provided for in a. above shall not bc applicable to disability benefits paid pursuant to Sec. 2-286, Benefits amounts and eligibility. subsection (d), or pre-retirement death benefits paid porsuant to Sec. 2-286. Benefit amounts and eligibility, subsection (c). If the-member's retirement benefit becomes payable after age sixty-five (65), lbr purposes of determining whether this benefit meets thc Immation set tbrth in subsection (f)(l) of this section, such benefit shall bc adjusted st) that it is actuarially equivalent to the benefit beginning at age sixty-five (65) This adjustment shah be made in accordance with regulatious pronmlgatcd by the Secretary of thc Treasury or his delegate. Less than tenyears 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 a~nount determined nnder subsection (l)( I } of this section multiplied by a fraction, the numerator of which is thc uumbcr of thc 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 di sability benefits paid pursuant to Sec. 2-286, Benefits amounts and eligibility, subsection (d). or pre- retirement death benefits paid pursuant to Sec. 2-286, Benefit a mounts and eligibility. subsection (c). 2O (5) (6) (7) (8) $1 O, 000. O0 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 the member participated. Reduction of benefits. Reduction of benefits and/or contributions 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 forfei- tures for defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be established by the board and the plan administrator for such other plans provided, however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the board and the plan administrator of all other plans covering such member. Cost-oflliving adjustments. Thc limitations as stated in subsectinns (f)(1), (f)(2) and (0(3) herein shall be adjusted to the time payment ora benefit begins in accordance with any cost-of-living adjustments prescribed by the Secretary of thc Treasury pursuant to Section 415(d) of thc [Internal Revenne] Code. Additional limitation on pension ben~ts. 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. 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, nr will receive in thc fi~tnrc, a retire~nent benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social sccority benefits or federal benefits under Chapter 67, Title 10, U.S. Code. (g) Minimum distribution of benefits. ( 1 ) General rules. l~'fl./'ective date. Thc provisions of this section wilt apply tbr purposes of determining reqoired minmmm distributions for calendar years beginning with the 2003 calendar year. 21 (2) Precbdence. The requirements of this section will take precedence over any inconsistent provisions of the plan. Requirements of Treasury regulations incorporated. All distributions required under this section will be determined and made in accordance with the Treasury regulations under section 401(a)(9) of the Code. TEFRA section 242(b)(2) elections. Notwithstanding the other provisions of this section other than this subsection (1)d., distributions maybe 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. Time and manner of distribution. 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 I of the calendar year lbllowing the later of the calendar year in which the member attains age seventy and one-half(70 V2) or the calendar year in which the member retires unless otherwise provided for in the plan or required by law. Death q[ tnetnber bqfi~re 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: If the ~ncmber'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 thc member died, or by December 31 of the calendar year in which the member would have attained age 70 '/2, if later. lfthe 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. 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 thc Ii fib anniversary, of the member's death. If the member's surviving spouse is thc member's sole designated beneficiary and the surviving spouse dies after the member but before distributions to thc 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 subscction (2)b. and subsection (5), distributions are considered to begin on the member's required beginning date or, if subsection (2)b.4. applies, the date of distributions are required to begin to the surviving spouse under subsection (2)b.l. If annuity 22 payments irrevocably commence to thc member bcfore the member's required beginning date (or to thc member's surviving spouse before the date distributions are required to begin to lhc surviving spouse under subsection (2)b.1.) the date distributions arc considered to begin is the date distributions actually commence. Form of distribution. Unless the member's interest is distributed in the lbrm 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 of subsecfions (3), (4) and (5) o fthis section. If the member's interest is distributed in the furm of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of section 401(a)(9) of the Code and Treasury regulations. Anypart 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 individnal accounts. (3) Determination of amount to be distributed each year. General annuity requirements. If the member's interest is paid in thc fom~ of annuity distributions under the plan, payments under the annuity will satisfy the following requirements: The annuity distributions will be paid in periudic payments made at intervals not longer than one year. The distribution period will be over a life (or lives) or over a period certain not longer than the period described in subsection (4) or (5). Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter lhan thc maximum permitted. 4. Payments will either be nonincreasing or increase only as follows: By an annual percentage increase that does not exceed the cumulative annual percentage increase in a cost-of-living index that is based on prices of all items and issued by thc Bureau of Labor Statistics or by a fixed annual increase of five percent or less. ii To the extent of the reduction m the amount of thc member's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described m subsection (4) dies or is no longer the member's beneficiary pursuant to a qualified domestic relations order within the meaning o fscction 414(p). iii To provide cash refunds of accumulated contributions npon the member's death. 23 (4) iv To pay increased benefits that result from a plan amendment. Amount required to be distribuled by required beginning date. The amount that must be distributed on or before the member's required beginning date (or, if thc member dies before distributions begin, the date distributions are required to begin under subsection (2)b.1. or (2)b.3.) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Pabanent inlervals arc the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the member's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of thc amount of thc armuity payments for payment intervals ending on or after the member's required beginning date. Additional accruals afler firsl 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 lbllowing the calendar year in which such amount accrues. Requirements for annuity distributions that commence during a member~ lifetime. ,Joint l~[b annuities where the bent?ficiat3' i.s nol the member's spouse. If the member's interest is being distributed in thc fnrm of a joint and survivor annuity for the joint lives of the member and a nonspouse beneficiary, annuity payments to be made on or after the member's required beginning date to the designated beneficiary after the member's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the member using thc table set forth in Q&A-2 of section 1.401 (a)(9)-6T of the Treasury regulations. If the form of distribution combines a joint and survivor annuity lbr the joint lives of the member and a nonspouse beneficiary and a period certain annuity, the requirements in the preceding sentence will apply to anmfity payments to be made to the designated beneficiary after the expiration of the period certain. Period certain annuities. Unless the member's spouse is the sole designated beneficiary and the form of distribution is a pcried certain and no life annuity, the period certain for an annuity distribution commencing during the member's lifetime may not exceed the applicable distribution period for the member ureter thc Uniform Liliztime Table scl lbrth in section 1.401(a)(9)-9 of the Treasury regulatious for thc calendar year that contains the annuity starting date. If the annuity starting dale precedes thc year in which the meJnber reaches age 70, the applicable distribution period for the member is the distribution period for age 70 nnder thc Uniftmn 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 contains the annuity starting date. Il-thc member's spouse is the member's sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain ajay mJt exceed thc longer of the member's applicable distribution period, as dctcrmmed under this subsection (4)b., or thc joint life and last sn~vivor expectancy of the member and thc 24 begin. member's spouse as determined under the Joint and Last Survivor Table set forth in section 1.401 (a)(9)-9 of the Treasury regulations, using the member% and spouse's attained ages as of the member's and spouse's birthdays in thc calendar year that contains the annuity starting date. (5) Requirements.fi~r minimum distributions where member dies before date distributions (6) Member survived by designated beneficiary, lfthe member dies before the date distribution of his or her interest begins and there is a designated beneficiary, the member's entire interest will be distributed, beginning no later than the time described in subsection (2)b. 1. or (2)b.2., over the life of the designated beneficiary or over a period certain not exceeding: Unless thc annuity starting date is before the first distribution calendar year. the life expectancy of the designated beneficiary dctcrmined using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar year of thc member's death. If the annuity starting date is before the first distribution calendar year, the lifc expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in thc calendar year thc contains the annuity starting date. No designated beneficiary. If the member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the member's death, distribution of the member's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the me~nber's death. Death ~'surviving .V~ouse b~re distributions to surviving spouse begin. If the member dies before the date distribution of his interest begins, the member's surviving spouse is the member's sole designated beneficiary, and the surviving spouse dies betbre distributions to the surviving spouse begin, this subscctiou (5) will apply as if the surviving spouse were the member, except that thc time by which distributions must begin will be determined without regard to subsection (2)b.l. D~jfinitionx. Designated ben~/iciary. The individual who is designated as the beneficiary under the plan and is thc designated bcncficiary under section 401(a)(9) of the Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations Distribution calendar 3,ear. A calendar year for which a minimum distribution is required. For distributions beginning belbrc the member's death, the first distribution calendar year is thc calendar year immediately preceding thc calendar year which contains thc member's required beginning date. For distributions beginning after the member's death, the first distribution calendar year is thc calendar year in which distributions arc rcqnired to begin pursuant lo subsection (2)b. 25 (2) (3) (4) (i) LifeeXPectancy. Life expectancy as computed byuse of the Single Life Table in section 1.401(a)(9)-9 of the Treasury regulations. d. Required beginning date. The date specified in subsection (2)a. Forfeiture of pension. Any vested member who is convicted of the following offenses committed prior to retirement, or whose employment is terminated by reason of his admitted commis- sion, aid or abetment of the following specified offenses, shall forfeit all rights and benefits under this system, except for the retum of his accumulated contributions as of the date of termination. Specified offenses are as follows: a. The committing, aiding or abetting of an embezzlement of public funds; 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; The committing of any felony by a public officer or employee who wilffidly and with intent to defraud the public or the public agency, for which he acts or in which he is employed, of the right to receive the faithful performance of his duty as a public officer or employee, realizes or obtains or attempts to obtain a profit, gain, or advantage for himself or for some other person through the use or attempted use of the power, rights, privileges, duties or position of his public office or employment position. Conviction shall be defined as an adjudication of guilt by a court of competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty when adjudication of guilt is withheld and the accused is placed on probation: or a convic- tion by the Senate of an impeachable offense. Court shall be defined as any state or federal court of competent jurisdiction which is exercising its jurisdiction to consider a proceeding involving the alleged commis- sion of a specified offense. Prior to forfeiture, the board shall hold a hearing on which notice shall be given to the member whose benefits arc being considered tbr forfeiture. Said )nember shall be afforded the right to have ao attorney present. No formal mles of evidence shall apply, but the tncmber shall be aflbrdcd a full opportunity to present his case against forfeiture. Any member who has received benefits from the system in excess of his accunmlatcd contributions after member's rights were forfeited shall be required to pay back to thc fund the amount of thc benefits received Jn excess of his accumulated contribution, s. The board may implement all legal action necessary to recover such funds. Conviction and forfeiture;false, mixleading or fraudulent xtatements. 26 (l) (2) (3) It is Unlawfui for a person to willfully and knowingly make, or cause to bc made, or to assist, conspire with, or urge another to make, or cause to be made, any false, fraudulent, or misleading oral or written statement or withhold or conceal material information to obtain any benefit from the system. A person who violates subsection (1) commits a misdemeanor of the first degree, punishable as provided in Section 775.082 or Section 775.083, Florida Statutes. In addition to any applicable criminal penalty, upon conviction [bra violation described in subsection (1), a member or beneficiary of the system may, in the discretion of the board, be required to forfeit the right 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 guilt that is the result of a plea or trial, regardless of whether adjudication is withheld. Sec. 2-287. Optional forms of benefits. (1) In lieu of the amount and form of retirement income payable in the event of normal or early retirement as specified herein, a member, upon written request to the board, may elect to receive a retirement income or benefit of equivalent actuarial value payable in accordance with one of the following options: (a) A retirement income of a monthly amount payable to the retiree for his li[ktime only. (b) A retirement income ora modified monthly amount, payable to the retiree during the lifetime of the retiree and following thc death of the retiree, one hundred (100) percent, seventy-five (75) percent, sixty-six and two-thirds (66 2/3) percent or fifty (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 thc applicable percentage provided for in the applicable table in the Treasury regnlation s. (c) If a member retires prior to the time at which social security benefits are payable, hc may elect to receive an increased retirement benefit until such time as social security benefits shall be assumed to commence and a reduced benefit thereafter in order to provide, to ag great an extent as possible, a more level retirement allowance during the entire period of retirement. The amounts payable shall be as recommended by thc actuaries for the system, based npon the social security law in effect at thc time of thc member's retirement. (2) The member, upon electing any option of this section, will designate thc joint pensioner (subsection (1)(b) above) or beneficiary (or beneficiaries) to receive thc benefit, il' 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 (1) or more primary beneficiaries where applicable. A member may change his beneficiary tit any time. tfa member has elected an option with a joint pensioner anti the member's retirement income benefits have commenced, the member may thereafter change his designated beneficiary at any tune, but may only change his joint pensioner twice. Subject to the restriction in the previous sentence, a member may substitute a new ioiut pensioner tbr 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 snbscction {2). 27 (3) The consent of a member's or retiree's joint pensioner or beneficiary to any such change shall not be required. The rights of all previously-designated beneficiaries to receive benefits under the system shall thereupon cease. (4) Upon change of a retiree's joint pensioner in accordance with this section, the amount of the retirement income payable to the retiree shall be actuarially redetermined to take into account the age of the former joint pensioner, the new joint pensioner and the retiree and to ensure that the benefit paid is the actuarial equivalent of the present value of the retiree's then current benefit at the time of the change. Any such retiree shall pay the actuarial recalculation expenses. Each request for a change will be made in writing on a form prepared by the board and on completion will be filed with the board. In the event that no designated beneficiary survives the retiree, such benefits as are payable in the event of the death of the retiree subsequent to his retirement shall be paid as provided in section 2-282 (2). (5) Retirmnent income payments shall bc made under the option elected in accordance with the provisions of this section and shall be sut~ject to the following lilnitations: (a) If a member dies prior to his normal retirement date or early retirement date, whichever first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under section 2-286(c). (b) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the member's retirement under the system, the option elected will be canceled automatically and a rctire~ncnt income of the normal fonn and amount will be payable to the member upon his retirement as if the election had not been made, unless a new ejection is made in accordance with the provisions of this section or a new beneficiary is designated by thc member prior to his retirement. (c) If both the retiree and the beneficiary (or beneficiaries) designated by member or retiree die before the full payment has been effected under any option providing for payments for a period certain and lilh thereafter, made pursuant to the provisions of subsection ( 1 ), thc board may, Jn its discretion, direct that the commuted value of the remaining pa3anents be paid in a lump sum and in accordance with section 2-282 (2). (d) If a member continues bcyoud his normal retirc~nent date pursuant to the provisions of section 2-~86(a)(1), and dies prior to his actual retirement and while an option made pursuant to thc provisions of this section is in effect, lnonthly retirement income pa~ncnts will be made, or a retirement befiefit will be paid, under the option to a beneficiary (or beneficiaries) designated by the member in tile amount or amounts computed as if thc member had retired under thc option on the (late on whicb his death occurre& (6) A retiree may not change his retirement option after the date of cashing or depositing his first retirement check. (7) Notwithstanding anything herein to the contrary, the board in its discretion, may elect to make a lump sum payment to a member or a member's beneficiary in the event that the monthly benefit amount Js less than one hundred dollars ($100.00) or the total conmmted value of the remaining monthly income payments to be paid do not exceed five thousand dollars ($5,000.00). Any such payment made to any person pursuant to the power and discretion conferred upon file board by the preceding sentence shall opcralc as a co~nplete discharge of all obligations under thc 28 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. Sec. 2-288. Claims procedures. (1) The board shall establish administrative claims procedures to be utilized in processing written requests ("claims"), on matters which affect the substantial rights ofanyperson ("Claimant"), including members, retirees, beneficiaries, or any person affected by a decision of the board. (2) The board shall have the power to subpoena and require the attendance of witnesses and the production of documents for discovery prior to and at any proceedings provided for in the board's claims procedures. The claimant may request in writing the issuance of subpoenas by the board. A reasonable fee may be charged for the issuance of any subpoenas not to exceed the fees set forth in Florida Statutes. Sec. 2-289. Miscellaneous provisions. (1) Interest of members in system. 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 amcnthnent 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, except that thc city may prospectively alter benefits payable to nonvested members. (3) Domes'tic relations orders; retiree directed payments; exemption .from execution, nonassignability. __(a) Domestic relations orders. 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 thc board' for review to determine whether the system may legally honor the order. If a domestic relations order is not submitted to the board for review prior to entry of thc 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, thc member or retiree who submits such an order will be required to reimburse the system for its expenses in connection with the order. (b) (c) Retiree directed payments. Thc board may, upon written request by a retiree or by a dependent, when authorized by a retiree or the retiree's beneficiary, amhorize the system to withhold l¥om thc monthly retirement payment those funds that arc necessary to pay for the benefits being received through the city, to pay thc certified bargaining agent of the city, and to make any payments for child support or alimony. Exenwtion fi'om execution, non-assignabtlity. Except as otherwise provided by law~ thc pensions, annuities, or any other benefits accrued or accruing to any person under 29 the provisions of this article and the accumulated contributions and the cash securities in the fund created under this article are hereby exempted f~om any state, county or municipal tax and shall not be subject to execution, attachment, garnishment or any legal process whatsoever and shall be unassignable. (4) Pension validity. The board shall have the power to examine into the facts upon which any pension shall heretofore have been granted under any prior or existing law, or shall hereafter be granted or obtained erroneously, fraudulently or illegally for any reason, he board is empowered to purge the pension rolls or correct the pension amount ofanyperson 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 t?fsystem. It is intcnded that the system will constitute a qualified public pension plan under the applicable provisions of the Code, as now in effect or hereafter amended. Any modification or amendment of the system may be made retroactively, if necessary or appropriate, to qualify or maintain the System as a Plan meeting the reqnirements 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 offorfeitures. Forfeitures arising frmn terminations of service of members shall serve only to reduce future city contributions. Sec. 2-290. Repeal or termination of system. (1) This article establishing the system and fund, and subsequent ordinances pertaining to said system and fund, maybe modified, terminated, or amended, in whole or in part; provided that if this or any subsequent ordinance shall be amended or repealed in its application to any person benefiting hereunder, thc amount of benefits which at thc time of any such alteration, amendment, or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to the extent that the assets of the fund may be determined to be inadequate. (2) If this article-shall be repealed, or if contributious 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, thc board shall continue to administer thc 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 ( 1 ) of the options provided tbr in this article who are designated by any of said members. In the event of repeal, discontinuance of contributions or transfer, merger or cousolidation of government units, services or functions or if contributions to the system arc discontinued, thcrc shall be full vesting (100%) of benefits accrued to date of repeal and the assets of the system shall be allocated in an equitable manner to provide benefits on a proportionate basis to thc persons so entitled in accordance with the provisions thereof. (3) The following shall be the order of priority fur purposes of allocating the assets of thc systcm as of thc date of repeal of this article, or if contributions to the system are discootinucd with thc date of such discontinuation being determined by the board. 3O (a) (b) (c) (d) (e) Apportionment shall first be made in respect of each retiree receiving a retirement or disability benefit hereunder on such date, each person receiving a benefit on such date on account of a retired or disabled (but since deceased) member, and each member who has, by such date, become eligible for normal retirement but has not yet retired, an amount which is the actuarial equivalent of such benefit; provided that, if such asset value be tess than the aggregate of such amounts, such amounts shall be proportionately reduced so that the aggregate of such reduced amounts will be equal to such asset value. lfthere be any asset value remaining after the apportionment under paragraph (3)(a), apportionment shall next be made in respect of each member in the service of the city on such date who is vested and who is not entitled to an apportionment under paragraph (3)(a) above, in the amount required to provide the actuarial eqnivalent of the vested portion of the accrued normal retirement benefit, but not less than accumulated contributions, based on the credited service and average final compensation as of such date (but not less than accumulated contributions), and each vested former member then entitled to a deferred benefit who has not, by such date, begun receiving benefit payments, in the amount required to provide said actuarial equivalent of the vested portion of the accrued normal retirement benefit, provided that, if such remaining asset value be less than the aggregate of the a~nounts apportioned hereunder, such latter amounts shall be proportionately rednced so that the aggregate of such reduced amounts will be equal to such remaining asset value. lfthere be any asset value after the apportionments under paragraphs (3)(a) and (3)(b) above, apportionment shall be made in respect of each member in the service of the city on such date who is not entitled to an apportionment under paragraphs (3)(a) and (3)(b) above in the amount equal to member's accumulated contributions, provided that, if such remaining asset value be less than thc aggregate of the amounts apportioned hereunder such latter amount shall be proportionately reduced so that thc aggregate of such reduced amounts will be equal to such remaining asset wdue. If there be any asset value remaining after the apportionments under paragraphs (3)(a), (3)(b), and (3)(c) above, apportionment shall lastly be made m respect of each member included in paragraph (3)(c) above to the extent of the actuarial equivalent of the non-vested accrued normal retirement benefit, less the amount apportioned in paragraph (3Xc), based on the credited service and average final compensation as of such (late; provided that, if such remaining asset value bc less than the aggregate of the amounts apportioned hcrenndcr, such amounts shall bc reduced so that thc aggregate of such reduced amounts will be equal to such remaining asset value. In the event that there be asset value remaining after the full apportionment spcci ficd in paragraphs (3)(a), (3)(b), (3)(c), and (3)(d), such excess shall bc returned to thc city, less return of the state's contributions to the state; provided that. if thc excess is less than the total contributions made by the city and the state tu the date of termination such excess shall be divided proportionately to the total contributions made by the city and the state. The allocation of the fund provided for in this subsection may, as decided by thc board be carried out through the purchase of insurance company contracts to provide the benefits determined in accordance with this subsection. Thc fund may be distributed in one sum to the persons cntitled to said benefits or thc distribution m;~y 31 be carried out in such other equitable manner as the board may direct. The fund may be continued in existence for purposes of subsequent distributions. If, at any time during the first ten (10) years after the effective date of the ordinance originally establishing this system, the system shall be terminated or the full current costs of the system shall not have been met, anything in the system to the contrary notwithstanding, city contributions which may be used for the benefit of any one of the twenty-five (25) highest paid members on the effective date, whose anticipated an .nual retirement allowance provided by the city's contributions at member's normal retirement date would exceed one thousand five hundred dollars ($1,500.00), shall not exceed the greater of either a) twenty thousand dollars ($20,000.00), or b), an amount computed by multiplying the smaller often thousand dollars ($10,000.00) or twenty (20) percent of such member's average annual earnings during his last five (5) years of service by the number of years of service since the effective date. In the event that it shall hereafter be determined by statute, court decision, ruling by the Cmnmissioner of Internal Revenue, or otherwise, that the provisions of this paragraph are not then necessary toquali~y the system under the [lnterual Revenue] Code, this paragraph shall bc iueffcctive without thc necessity of further amendment of this article. (4) After all the vested and accrued benefits provided hereunder have been paid and after all other liabilities have been satisficd, then and only then shall any remaining funds revert to the general fund of thc city. See. 2-291. 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 distributec's elcction under this section, a distributee may elect, at the time and in the ~nanner prescribed by the board, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollovcr. (b) Definitions. Eligible rollover distribution: An eligible rollover distribution is anv distribution of all or any portion of the balance to the credit of the distribute~. except that an eligible rollovcr distribution does not include: any distribution that is onc (1) ora series of substantially equal periodic payments (not less fi'equently than annually) made for the life (or life expectancy) of the distribulee or thc joint livcs (or joint life expectancies) of the distributee and the distributec's designated bcneficimT, or for a specified period of leu (10) years or more; any distribntion to the extent such distribution is required under Section 401(a)(9) of the [Internal Revenue] Code; and thc portion of any distribution that is not includible in gross incomc. Any portion of any distribution which woukl bc includible in gross income will be an eligible rollovcr distribotion if thc distribution is made to an individual retiremen~ account described in Section 408(a), to an individual rctiremcut annuity described m Scclion 408(b) or to a qualified defined contribution plah 32 described in Section 401 (a) or 403(a) that agrees to separately account for amounts so transferred, 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. 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, 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)(l)(A) of the [Internal Revenue] Code and which agrees to separately account for amounts transferred into such plan from this plan, an annuity contract described in Section 403(b) of thc [internal Revenue] Code, or a qualified trust described in Section 401(a) of thc [Internal Revenue] Code, that accepts the distributee's eligible rollover distribution. This definition shall also apply in the case of an eligible rollovcr distribution to thc surviving spouse. 3. Distributee: A distributee includes an employee or former employee: In addition, the employee's or former employee's surviving spouse is a distributee with regard to the interest of the spouse. 4. l)irect rallover: A direct rollover is a payment by the plan to the eligible retirement plan specified by the distributee. (2) Rollovers or tran.¥fers into theJhnd. 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) 7)'an~¥/~'rs' anti direct rollovers or member rollover contributions from other plans. Thc 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 thc [Internal Revenue] Code which is mamtaincd 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 i)crmissJblc member requested transfers of funds frown other retirement or pension plans. (b) Member rollover rontributionsfrom lR~s. The system will accept a member rollover contribution of the portion ora distribution from an individual retirement account or anunitv described in Section 408(a) or 408(b) of the [Internal Revenue] Code that is cligibl~ to be rolled over and would otherwise be includible in gross income. (3'} Elimimttion o[mandatorv distributions. Notwithstanding any other provision herein to thc contrary, in thc evcnt fl~is plan pr(~vidcs IBr a mandatory (involuntary) cash distribntion fiom the plan not otherwise required by law, for an amount in excess of one-thousand dollars ($ ,000.00). such distribution shall bc mad~ l¥om thc 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. Sec. 2-292. Family Medical Leave Act. The fractional parts of the twelve (l 2) month period ending each September 1 that a member is on leave from the city pursuant to the Family and Medical Leave Act (FMLA) shall be added to his credited service provided that: (1) The member contributes to the fund the sum that he would have contributed, bascd on h!s s.alary and the member contribution rate in effect at the time that thc credited servme ~s requested, had he been a member of the system for the fractional parts of the twelve (12) months ending each September 1 for which he is requesting credit ?lus amounts actuarially determined such that the crediting of service does not result m any cost to the fund plus payment of costs for all professional services rendered to the board in connection with the purchase of periods of credited service. (2) The request for credited service for FMLA leave time for the twelve-~nonth period prior to each Septmnber I shall be made on or before September 30. (3) Payment by the member of the required amount shall be on or before December 31 fur the preceding twelve-month period ending September 1 and shall be made in one ( 1 ) lump-sum payment upon receipt of which credited service shall be issued. (4) Credited service purchased pursuant to this section shall not count toward vesting. (5) For those members who purchase credited service hereunder, only that portion of any payment representing the sum that he would have contributed (seven (7) percent of what would have been received as base pay, plus five (5) percent of what would have been received as base pay for all years of credited service since October 1, 1976) had he been a mcmber of the syste~n for the fractional parts of years for which he is rcqucsting credit, shall be included in accumulated contributions. Sec. 2-293. Military service prior to employment. Thc years or fractio~ml parts of years that a firefighter serves or has served on active duty in the military service of the Armed Forces of the United States, the United States Merchant Marine or thc United States Coast Guard, voluntarily or involuntarily and honorably or under honorable conditions, prior to first and initial e~nploymcnt with the city fire department shall be added tn his years of credited scrvice provided that: The member contributes to the fund the sum that he would have contributed, bascd on his salary and the member contribution rate in effect at thc time that thc credited service is requested, had he been a member of the system for thc years or fractional parts of years for which he is requesting credit plus amounts acmarially dctcnnmcd such that the crediting of service does not result in any cost to the fund l)lUS payment of costs for all professional services rendered to the board in connection with thc purchase of years of credited service. (2) Multiple requests to purchase credited service pursuant to this sec on may bc made at any time prior to retirement, but no purchase is permitted for a period of less than one year. 34 (3) (4) (5) 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. The maximum credit under this section shall be three (3) years. Credited service purchased pursuant to this section shall not count toward vesting or eligibility for not-in-line of duty disability benefits. Sec. 2-294. Prior fire service. Unless otherwise prohibited by law, and except as provided for in section 2-281, 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 i¥om 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 special district fire department in thc State of Florida shall be added to his years of credited service provided that: (1) The member contributes to the fi~nd 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 lYactiona] 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 thc fund plus payment of costs for all professional services rendered to thc board m connection with the purchase of years of credited service. (2) Multiple requests to purchase credited service pursmmt to this section may bc made at any time prior to retirement, but no purchase is permitted for a period o]' less than one year. (3) Payment by the member of the required amount shall bc made within six (6) months of his request for credit, but not later than the retirement dam. ami shall be made in one lump sum payment upon receipt of which credited service shall bc given. (4) The maximum credit for prior service with another special district lire department other than with the City of Sanford shall bc five (5) years of credited service and shall count for all purposes, except vesting and eligibility for not-in-linc o£dnty disability benefits. (5) There shall be no maximmn credit for prior service with thc City of Sanfm'd 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 pursnanl to this section prior service with any other municipal, county, state or special district fire depamnent in the State of Florida, if such prior service forms or will titan thc basis of a retirement benefit or pension from a different employer's rc~iremcnt system or plan as set forth in section 2-286, subsection (f)(8)b. 35 Sec. 2-295. Reemployment after retirement. (1) Any retiree under this system, except for disability retirement as previously provided 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. Reemploymen! by the city shall be subject to the limitations set forth in this section. (2) Afiernormalretirement. Any retiree who is retired under normal (or early) retirement pursuant to this system and who is reemployed as a firefightcr 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 thc initial rem'ement to determine the total benefit payable upon final retirement. Calculations of benefits upun 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 e~nployment shall be reduced by the amount of accrued .benefit eli~gible to be paid for a prior period of employment. ]'he optional form of benefit and any joint pensioner selected upon initial retirement shall not bc sut~ject to change upon subsequent retirement except as othcrwisc provided hereto, but thc retiree may select a different optional form and joint pensioner applicable only to the snbscqucnt retirement benefit. (3) Any retiree who is retired under normal rctircment pursuant to this system who is reemployed by the City in a position other than as a fircfightcr, shall upon being reemployed, continue receipt of benefits for the period of any subsequcnt employment period. (4) After early retirement. Any retiree who is retired under early retirement pursuant to this system and who subsequently bccornes an employee of the city in any capacity, shall discontinue receipt of benefits from the system. If the rcemployed 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 thc reemployed person is not eligible lo participate in this system, that person's pension bcnefit payments shall bc suspended until thc earlier ofterminatiou of employment or such time as the reemploycd retiree reaches thc date thru hc wonld have been eligible for normal retirement under this system had he continued employment and not elected early retirement. "Nom~al retirement" as used in this subsection shall bc thc current oormal retirement date provided for under this system. (5) Reempluyment qfterminated vestedpersonx. Reemploycd 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. (6) DROPpartictpants. Members or retirees who arc or were in the deferred retirement option plan shall, fbllowing termination of employment afic~ DROP participation, have thc options provided for in this section for reemployment. 36 Sec. 2-296. Deferred retirement option plan. (a) Dqfinitions As used in this section 2-296, the following definitions apply: (1) "DROP" -- The City of City of Sanford Firefighters Deferred Retirement Option Plan. (2) "DROP account" -- The account established for each DROP participant tinder subsection (c). (b) Participation. (l) (2) (3) (4) Eligibility to participate. In lieu of terminating his employment as a firefighter, any member who is eligible for normal retirement under the system may elect to deter receipt of such service retirement pension and to participate in the DROP. Election to participate. A Inember's election to participate in the DROP must be made in wining Jn 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 (l 5) business days after it is received by the board. 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. Terminalion oJ)varticipation. a. member s partm~patton 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. lermination uf his employment as a firefighter. b. Upon the member's terminal/on of participation in thc DROP, pursuant to subsection I above, all amounts provided for in subsection (c)(2), including monthly benefits and inveslment earnings and losses, shall cease to be transferred from thc system to his I)ROP account. Any amounts remaining in bis DROP acconnt shall be paid to him in accordance with thc provisions of subsection (d) when he terminates his employment as a fircfightcr. c. A member who terminates his participation in thc DROP under Ibis subsection (b)(4) shall not be permitted to again become a participant m tim DROP. 37 (c) (1) {2) F~[feCt 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. 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 2-295, 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 , ' ' ation in the DROP is terminated other than by terminating member s parhc~p ,- -- ,-,Ar no amounts shall be paid to hi~n from the his employment as a nrengntc-, --- ' · system until he terminates his employment as a firefighter. Unless otherw~s,~ specified in the system, amounts transferred from the syste~n to the member DROP account shall be paid directly to the member only on the termination of his employment as a firefighter. 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. 7Yansfers from retirement system. a. As of the first day of each month ora member s perm of participation in the DROP, the monthly retirement benefit he would have received under the system had he terminated his employment as a firefighter 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 dctermined m accordance with the provisions of subsections (b)(3) and (b)(4), but m no event shall it continue past thc date he terminates his employment as a firefighter. ' rovided in subsection (b)(4)b., a member's DROP Except as otherwise p .... ~ o~.~n h,~ debited or credited after each b. account under this subsecUon [c~t/-j >-,, .... ' fiscal year quarter with earnings, determined as follows: The average daily balance in a member's DROP account shall bc credited or debited at a rate equal to the net investment rcturu real by the system for that quarter. "Net investment return" for the purpose of this paragraph is the total return of the assets in which thc member's DROP account is invested by the board net of brokerage commissions, transaction costs and management fees. 38 (d) (1) 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 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. Ifa member fails to terminate employment after participating in the DROP for the permissible period of DROP participation, then beginning with the member's 1 st 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 transt~rred to the DROP account. All such non-transferred amounts shall be forfeited and continue to be forfeited while the member is employed by the Fire Department. A member employed by the Fire 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 2-295. Distribution of DROP accounts on termination of employment. Eligibility for 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 firefighter. Except as provided in subsection (d)(5), no amounts shall be paid to a member from the DROP prior to his termination of employment as a firefighter. (2) Form of distribution. (3) 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). A member may elect, however, in such time and manner as the board shall prescribe, that his DROP distribution be used to purchase a nonforfeitable 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. Ifa member dies befbre his benefit 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 thc member's estate. Date (~ayment of distribution. Except as otherwise provided in this subsection (d), distribution of a member's DROP account shall be made as soon as administratively practicable following the member's termination of employment. Distribution of the amount in a Member's DROP account will not be made unless the Member completes a written request for distribution and a written electiom on forms designated by the Board, to either receive a cash lump sum or a rollover of the lump stun amnunt. 39 (4) (6) (e) (2) (3) Proof of deaih 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 of a 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. Distribution limitation. Notwithstanding any other provision of this subsection (d), all distributions from the DROP shall conform to the "Minimum Distribution Of Benefits" provisions as provided for herein. Direct rollover of certain distributions. This subsection applies to distributions made on or after January 1, 2002. Notwithstanding any provision of the DROP to thc contrary, a distributee may elect to have any portion of an eligible rollover distribution paid in a direct rollover as otherwise provided under the system in section 2-291. Administration of DROP. 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 thc investment of thc DROP's assets shall be placed in the board. Thc 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 any payment on their behalf; may retain counsel, employ agents and provide for such clerical, accounting, actuarial and consulting services as they may require in cm?ying out thc 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 thc DROP, as they, in their sole discretion, shall decide. A trustee shall not w)tc on any question relating exclusively to himself. lndividualaccounts, recordsandreports. The board shall maintain records showing the operation and condition of the DROP, including records showing the individual balances m 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 m thc- DROP and other individuals or file with thc appropriate governmental agcncies~ as the case may be, all necessary descriptions, reports, infnrmation returns, and data required to bc distributed or filed for the DROP pursuant to the Code and any other applicable laws. Estabhxhment ofrulex. Subject to the limitations of the DROP, the board from time to time shall establish rules for the administration of thc DROP and thc 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 eligi bility DROP participation, the right and amount of any benefit payable nndcr thc DROP and the date on which any individual ceases to be a participant in the DROP). Thc determination of the board as to the interpretation of the DROP or its determination of any dispotcd questions shall be conclusive ami final to thc extent permitted by appbcablc law. 40 (4) (1) (2) (3) (4) Limitation qf liability. 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 of decreasing the balance of the DROP account of any member. Facility qfpayment. If a member or other person entitled to a benefit under the DROP is i~nable to care for his affairs because of illness or accident or is a minor, the board shall direct that any benefit due hi~n shall be made only to a duly appointed legal representative. Any payment so made shall be a complete discharge of thc 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 the board the information that it shall require to establish his rights and benefits under thc DR'OP. Prevention q['escheat. If the board cannot ascertain the whereabouts of any person to whom a payment is due under the DROP, the board may, no earlier than three (3) years from the (late such payment is due, mail a notice of such duc and owing payment to thc last known address of such person, as shown on thc records of the board or the city. If such person has not made written claim therelbr 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 othcrxvise 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 thc event such person or his beneficiary later notifies the board of his whereabouts and requests the payment or payments duc to him under the DRO , thc amount so applied shall be paid to him in accordance with the provisions of thc DROP. 41 (6) (7) (9) Written election& notification. 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. Each me~nber or Retiree who has a DROP account shall be responsible for furnishing the board with his current address and any subsequent changes in 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 checks will be suspended until such time as the member or Retiree notifies the board of his address. t!tenqfits not guaranteed. All benefits payable to a member from the DROP shall bc paid only from thc 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. (7onstruction. The DROP shall be construed, regulated and administered under the laws of Florida, cxcep! where other applicable law controls. Thc titles and headings of the subsections in this section 2-296 are for convenience only. In the case of ambiguity or inconsistency, the text rather than thc titles or headings shall control. Foci, irate ri/' r~'tirement bencfils. Nothing in this section shall bc 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. ~£['ec! p['DROPparticipation on employment. Participation in the DROP is not a guaranlec of employment and DROP participants shall bc subject to thc same empk)yment standards and policies that are applicable to employees who are not DROP participams. Sees. 2-297-2-300. Reserved. 42