HomeMy WebLinkAbout4016 Amending and restating Chapter 2, Police Officer RetirementORDINANCE NO. 4016
AN ORDINANCE OF THE CITY OF SANFORD
AMENDING AND RESTATING CHAPTER 2,
ADMINISTRATION, ARTICLE XV, THE CITY OF
SANFORD POLICE OFFICERS' RETIREMENT SYSTEM,
OF THE CITY CODE OF THE CITY OF SANFORD;
PROVIDLNG 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
ELIGIBLE 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
POLICE SERVICE; PROVIDING FOR REEMPLOYMENT
AFTER RETIREMENT; PROVIDING FOR A DEFERRED
RETIREMENT OPTION PLAN; PROVIDING FOR
CODIFICATION; PROVIDING FOR SEVERABILITY OF
PROVISIONS; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Senford Police Officers are presently provided pension and
certain other benefits under Ordinances of the City of Sanford and;
VV2-1EREAS, the City Commission desires to clarify end ~state the provisions of the
Police Officers' Retirement System to consolidate all prior ordinences end Code provisions and
to incorporate Federal law and the applicable provisions of Chapter 185, Florida Statutes;
NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF
SANFORD, FLORIDA;
SECTION 1: That Chapter 2, Administration, A~icle XV, the City of Senford Police
Officers' Retirement System, Sections 2-261 through 2-276, inclusive, of the City of Sanford
Code of Ordinances, be and the same is amended end restated as set forth in the document
designated POLICE OFFICERS' 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are hereby repealed.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, orthe
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.
Attest:
Cyntl~ia Porter, Acting City Clerk
City Commission of the City of Sanford,
Florida
Linda Ku~n, Mayor )
Certificate
I, Cynthia Porter, Acting City Clerk of the City of Sanford, Florida, do hereby
certify that a true and correct copy of the foregoing Ordinance No. 4016, Passed and
Adopted by the City Commission of the City of Sanford, Florida, on the 25th day of
September, 2006, was posted at the front door of the City Hall in the City of Sanford,
Florida, on the 27th day of September, 2006.
Cynthia Porter,
As the Acting City Clerk of the City
of Sanford, Florida
Approvedestofonn:
CITY ATTORNEY
ARTICLE XV, POLICE OFEICERS' RETIREMENT SYSTEM
Sec. 2-261. 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, plus the amount described
in Section 2-266 (e)(4), all without interest. 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 thc applicable member contribution rate, interest and any required actuarially
calculated payments lbr thc purchase of such credited service, shall be included in accumulated
contributions.
Actuarial equivah,nt means a bencfit or amount of equal value, based upon the 1983 Group
Annuity Mortality Table and an interest rate of eight (8) perccnt per annum.
A veragefinal compensation mcans one-twelfth ( I/12) of the average base pay of the five (5)
best years of credited service of thc last ten (10) years prior to retirement, termination or death or the
career average as a full-ti~ne police officer, whichever is greater. A year shall bc twelve (t2)
consecutive months.
Basepay means the pay for the grade and step in the salary classification pay plan m the city
for the given fiscal year, including education incentive payments and plus alt 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. Compensation in excess of thc limitations set forth
in Section 401(a)(17) of thc Code shall be disregarded. Thc limitation on cmnpensation lbr an
"eligible employee" shall not be less than the amount which was allowed to be taken into account
hereunder as in cft~ct on July l~ I993. "Eligible employee" is an individual who ,,,,'as a Mcmbcr
bcfure the first Plan Year beginning after December 31, 1995.
Benqficia~3, means thc person or persons entitled to receive bcncfils hereunder at thc death
ora member who has or have been designated in writing by the member and filed with the board.
If no such designation is in cfl~zct, or if no person so designated is living, at thc time of death of thc
member, thc beneficiary sh,'fll be tile estate of the member.
Board means thc board uf trustees, which shall administer and ~nanage tile syslcm hcrcJn
provided and serve as trustees of thc fired.
CiO, means City o£ Sanlbrd, Florida.
Code means thc Internal Revenue Code of 1986, as amcndcd t¥om time to time.
Credited servi~e means thc total number of years and fractional parts uf years of service as
a police officer wilh mcmbcr contributions when required, omitting intervening years or fractional
parts of years when such member was not employed by thc city as a police officer. A member may
vohmtarily leave his accumulatcd contributiuns in thc lhnd for a period of five (5) years after leaving
the employ of thc police department pending the possibility of being rccmploycd as a police ufficcr,
without losing credit for the Imm thai he was ti member of the system. If a vcstcd member leaves
the employ et'thc police department, his accomulatcd contribntions will bc rclumed only upon his
written request. Ifa mcmbcr who is not vcstcd is not rcemploycd ;cs a police officer with thc police
department within five (5));ears, his accumulated contributions, if one-thousand dollars ($1,000.00)
or less, shall be returned. Ifa member who is not vested is not reemployed within five (5) years, his
accumulated contributions, if more than onc4housand dollars ($1,000.00), will be returned only
upon the written request of the member and upon completion ora written election to receive a cash
lump sum or to rollover the lump stun amount on forms designated by the board. Upon return of a
member's accumulated contributions, all of his rights and benefits under the system are forfeited and
terminated. Upon any reemployment, a police officer shall not receive credit for the years and
fractional parts of years of service for which he has withdrawn his accumulated contributions from
the fund, unless the police officer repays into the fund the contributions he has withdrawn, with
interest, as determined by the board, within ninety (90) days after his reemployment.
In addition, a member may receive credited service for periods which the member is absent
from employment and receiving workers' compensation benefits for i~iuries sustained while acting
as a police officer for the city, up to thc time maximum medical improvement is reached, as
determined in accordance with thc Florida Workers' Compcnsatiun Law.
The years or fractional parts of years that a member serves in the military service of the
Armed Forces of the United States, the United States Merchant Marine ur the United States Coast
Guard, voluntarily or involuntarily, after separation from cmploy~ncnt as a police officer with the
city to perform training or service, shall be added to his years of credited service fur all purposes,
including vesting, provided that:
(a)
The mcmber must return tu his employment as a police officer within one (1) year
from the earlier of the date of his military discharge or release from active service.
(b)
(c)
The member is entitled to reemployment under thc provisions of the Uniformed
Services Employment and Reemployment Rights Act (USERRA), (P.L. 103-353).
The ~naximum credit lbr military service pursuant to this paragraph shall be five (5)
years.
Effective date means thc date on which this article bccomcs effective.
Fund means the trust fund established hercin as part of the system
Groxxpay means the total cash remuneration, excluding worker's cumpcnsatJon.
Member means an actively employed police ufficcr who fldfills the prescribed membership
requirements. Benefit improvements which, in thc past, have been provided lbr by amendments to
the system adopted by city ordinance, and any benefit improvements which migl~t bc made in the
future shall apply prospectively and shall not apply to members who terminate employment or who
retire prior to the efl'ecfivc date of any ordinance adopting such benefit improvements, unless such
ordinance specifically provides to thc contrary.
Plan Year means the twelve (12) month period bcginuing October 1 and ending September
30 of thc following year.
Police of/]cer means an actively employed full-time person, emploved bv the city, including
his initial probationary employment period, who is certified as a police }fffic~r as a condition of
employment in accordance with thc provisinns of Section 943.1395 Flurida Statutes. who is vested
with authority to bear arms and make arrests, and xvhosc primary rcspunsibilitv is Ibc prevention anti
detection of crime or thc enforcement of thc penal, traffic, or highway laws (~,f fl~c State of Ffurida.
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 Police Officers' Retirement System as contained herein and
all amendments thereto.
(2) Masculine gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
Sec. 2-262. Membership.
O)
(a)
Conditions of eligibility.
All police officers as of the effective date, and all finurc new police officers, shall
become members of this system as a condition of cmploy~nent.
(b)
All future new police officers shall bc required to complete a medical examination
as prescribed by the city.
(2)
(a)
(b)
Benqficiaries.
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 the 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 new
desigmation-of-beneficiary form. Upon such change, thc rights of all previously
designated beneficiaries to rcccivc any bencfils nndcr thc system shall cease.
Ifa deceased member or retiree failed to name a bcncficiary m thc manner prescribed
in subsection (a), or if the beneficiary (or bcncficiaries) named by a deceased member
or retiree predeceases the member or retiree, thc dcafi~ bcnefu, il' any, which may be
payable undcr the system with respect to such deceased member or rctirce~ shall bc
paid to the estate of the member or retiree and thc board, in its discretion, may dircct
that thc commuted value of the remaining monthly income benefits hc paid in a lump
(c)
Any payment made to any person pursuant ti) this section shall operate as a complete
discharge of all obligations under thc system x,. ilh ~cgard to fi~c deceased mcmbc~ and
any other persons with rights under thc system and shall not bc subject lo ~ cvicw by
anyone but shall be final, binding and conclusixc on all persons cvc~ interested
hereunder.
Sec. 2-263. Board of trustees.
(l) Board q/-truvteex; re~xT>onsibilities; co.y~oxition. 'lhe sole and exclusive adminislration
of and responsibility tbr thc proper operation of Iht systcm and li*r making ctlbclivc thc pmx ismns
of this article are hereby vested in a board oftmstccs. 'lhc board is hereby dcsignalcd as thc plan
5
administrator. The board of trustees shall consist of five (5) trustees, two of whom, unless otherwisc
prohibited by law, shall be legal residents of the city, who shall be appointed by the Sanford City
Commission, and two of whom shall be members of the system, who shall be elected by a majority
of the police officers who are members of the system. The fifth trustee shall be chosen by a m~jority
of the previous four (4) trustees as provided for herein, and such person's name shall bc submitted
to the Sanford City Commission. Upon receipt of thc fifth person's name, the Sanford City
Commission shall, as a ministerial duty, appoint such person to the board of trustees as its fifth
trustee. The fifth trustee shall have the same rights as each of the other four (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 thc Sanford City Commission at whose pleasure shall serve. The two
(2) resident trustees shall serve staggered terms. Each member trustee shall serve as trustee for a
period two (2) years, unless he sooner leaves the employment of the city as a police officer or
otherwise vacates his office as trustee, whereupon a successor shall bc chosen in lhe same manner
as the departing trustec. Each trustee may succeed himself Jn office and the two (2) police officer
trustees shall serve staggered tcrms. DROP participants can be elected as but not vote for elected
trustees. The board shall establish and administer the nominating ami election procedures for each
election. A city official who is otherwise eligible for appointment to thc board shall not be
disqualified for consideration solely on the basis of his official status unless such Js required by law.
The board of trustees shall meet at least quarterly each year. Thc board shall be a legal entity with,
in addition to other powers and responsibilities contained hereto, thc power to bring and defend
lawsuits of every kind, nature, and description.
(2) OJficers. The trustccs shall, by a majority vote, ctcct a chairman, vice chairman anti
a secretary/treasurer. The secrctary/treasurcr of the board shall kccp a complete minute book of the
actions, proceedings, or hearings of the board. The trustees shall nol receive any compensation as
such, but may receive expenses and per them as provided by law.
(3) Voting. Each trustee shall be entitled to one (I) vo~c on thc board. Three (3)
affirmative votes shall be necessary for any decision by the trustccs at any mceting of the board. A
trustee shall abstain from voting as the result of a conflict of interest and shall comply with the
provisions of Section 112.3143, Florida Statutes.
(4) Accounting; expenses, etc. Tbe board shall engage such actuarial, accounting, legal,
and other services as shall be required to transact the business of thc system. ]'he compensatim~ of
all persons engaged by the board and all other expenses of the board necessary for thc operation of
the system shall be paid l¥om thc fund at such rates and in such amounts as thc board shall agree.
In the event thc board chooses to nse the city's legal cnunscl, acluat~ nr other profcssionak technical
or other advisors, it shall do so only under terms and conditions acceptable to thc board.
(5) Dutiex. The duties and responsibilitics of Ibc board shall inclode, but not necessarily
be limited to, the following:
(a)
To construe the provisions of the system and determine all questions arising
thereunder.
(b) To determine all questions relating to eligibilitv and mcmbcrship.
(c)
To determine and certify thc amount of all retirement allowances or other benelits
hereundcr.
6
(d) To establish uniform rules and procedures to be followed for administrative purposes,
benefit applications and all matters required to administer the system.
(e) To distribute to members, at regular intervals, information concerning thc system.
(0 To receive and process all applications for benefits.
(g)
To authorize all payments whatsoever from the fund, and to notify the disbursing
agent, in writing, of approved benefit payments and other expenditures arising
through operation of the system and fund.
th)
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 nf
the system.
ti) To pcrfom~ such other duties as are required to prudently administer the system.
(J)
Roster of retirees. The secretary of the board shall keep a record of all persons
enjoying a pension under the provisions of this article in which it shall be noted the
time when the pension is allowed and when the same shall cease to be paid.
Additionally, the secretary shall keep a record of all members in such a manner as to
show the name, address, date of employment and date of termination of cmploymeut.
These records shall be exempt front disclosure to thc extent provided lbr in Chapter
119, Florida Statutes.
(5) 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 ducuments and information
required by Section 185.221, Florida Statutes.
(6) CiO, liaison to board. The city finance director shall act as city liaison to thc board.
(7) Indemnification.
(a)
To the extent not covered by insurance contracts in fi)roe from time to time, and 1o
the extent not covered by the Sovereign hnmunity Statute, thc city shall indcmni~,
defend and hold harmless members of the board from all personal liability
damages and costs, including court costs and attorneys' fees, arising out of claims,
suits, litigatiou, or threat of same, herein referred to as "claims." against these
individuals because of acts or circumstances counecled with or arisiug out of their
official duty as members of the board, other than as set fi)rrb in paragraph (b) aud (c
of this subsectiun (7). The city reserves the right, in its sole discretion, to settle or
not settle the claim at any time, and to appeal or to not appeal lkmn auy advmsc
judgment or ruling, and in either event will indcmni fy, defend ami hold harmless any
members of the board from the judgment, execution, or levy thereon.
(b)
This subsection shall not be construed so as to relieve any insmancc company or
other entity liable to defend the claim or liable for pa~nent of the judgment or claim.
from any liability, nor does this subsection waive any provision of law aflbrdmg thc
city imurunity from any suit in whole or part, or waive any other substanlivc or
procedural rights the city may have.
(c)
This ~subsecfion shall not apply nor shall the city be responsible in any manner to
defend or pay for claims arising out of acts or omissions of members of the board
which constitute felonies or gross malfeasance or gross misfeasance in office.
Sec. 2-264. Finances and fund management.
(1) Establishment offund. As part of the system, there is hereby established thc Ii, nd.
into which shall be deposited all of the contributions and assets whatsoever attributable to thc
system, including the assets of the prior police officers' retirement system.
(2) Custody and supervision offfund assets. The actual custody and supervision of the
fund (and assets thereof) shall be vested in the board. Payment of benefits and disbursements from
the fund shall be made by the disbursing agent but only upon written authorization from thc board
(3) Deposit of Ji~nd assets; investment management. All funds of the police officers'
retirement system may be deposited by thc board, with the finance director of the city, acting m a
ministerial capacity only, who shall be liable 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 the police officers' retirement system. In lieu thereof, the board shall deposit the funds of
the police officers' retirement system in a qualified public depository as defined in Section 280.02.
Florida Statutes, which depository with regard to such funds shall conform to and be bound bv all
of the provisions of Chapter 280, Florida Statutes. In order to fulfill its investment responsibil]tics
as set forth herein, the board may retain tile 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, fbr the purposes of investment
dccisions and management. Such investment manager shall have discretion, subject to any
guidelines as prescribed by the board, in the investment of all fund assets.
(4) Required .financial records. All funds and securities of thc systcm may bc
commingled in the fund, provided that accurate records are ~naintaincd at all times reflecting thc
financial composition of the fund, including accurate current accounts and entries as regards thc
lbllowing:
(a)
Current amounts of accumulated contributions of members on both an individual and
aggregate acgount basis, and
(b) Receipts and disbursements, and
(c) Benefit payments, and
(d)
Current amounts clearly reflecting all monies, funds and assets whatsocxc~
attributable to contributions and deposits from tile city, and
(e) All interest, dividends and gains (or losses) whatsoever, anti
Such other entries as may be properly required so as to reflect a clear anti complete
financial report of thc fund.
(5) Annual audit. An audit shall be performed annually by a certified public accmmtant
fi)r the most recent fiscal year ol'thc system showing a detailed listing of assets and a statement ol'
all mcomc and disbursements during the year. Such income and disbursements nmst be rcconcilctl
with the assets at the beginning and end of thc year. Such report shall reflect a completc evaluation
of assets on both a cost and market basis, as well as other items normally included in a certified
audit.
(6) Investment powers and authority of board. The board shall have the following
investment powers and authority:
(a) The board shall be vested with full legal title to said fund, subject, however, and in
any event to the authority and power of the Sanford City Commission to 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 time to time paid into lhe fund, and the income thereof, without distinction
between principal and income, shall be held and administered by the board or its
agent in the fund and thc board shall not be required to segregate or invest separately
any portion of thc fund.
(b) All monies paid into or held in the fund shall be invested and reinvested by thc board
and the investment of all or any part of such funds shall be limited to:
1. Annuity and life insurance contracts of life insurance companies m amounts
sufficient to provide, in whole or in part, the benefits to which all of the
members in the fund shall be entitled 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 Baok
Insurance Fund or a savings/building and loan association insured by the
Savings Association Insurance Fund which is administered by the Federal
Deposit insurance Corporation or a state or federal chartered credit union
whose share accounts arc insured by the National Credit Union Share
insurance Fund.
Obligations ol'the United States or obligations guaranteed as to principal and
interest by thc govermnent of the United States or by an agency of thc
government of thc United States.
Bonds issued by the State ot' Israel.
Stocks, commingled funds administered by National or Statc Banks. mutual
fumts and bonds, or evidences of indebtcdness, provided that:
a. All individually held securities and all sccurilies in a commingled or
mutual fund must be issued or guaranteed by a corporation organized
under the laws of the United States, any state or organized territory of
the United Stales, or thc District of Columbia.
b. Up to ten percent (I 0%) of the assets of the fund may bc invested in
foreign securities.
c. Thc board shall not invest more than five (5) percent ol' its assets in
the common stock, capital stock, or convertible scctlritics of any one
.(1) i?suing company, nor shall the aggregate investment in any one
issuing company exceed live (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.
(c) At least once every three (3) years, and ~nore often as determined by the board, the
board shall retain a professionally qualified independent consultant, as defined in
Section 185.06, Florida Statutes, to evaluate the performance of all current
investment managers and make recommendations regarding the retention of all such
investment managers. These recommendations shall be considered by the board at
its next regularly scheduled meeting.
(d) The board may retain in cash and keep unproductive of income such amount of the
fund as it may ~leem advisable, having regard for the cash requirements of the system.
(el Neitl~er thc board nor any trustee shall bc liable for the making, retention or sale of
any ~nvestment or reinvestnlcnt made as herein provided, nor for any loss or
diminishment of thc fund, except that due to his or its own gross negligence, willful
misconduct or lack of good faith.
(fl The board may cause any investment in securities held by it to bc registered in or
transferred into its name as trustee tlr 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 arc part of thc fund.
(gl 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, rccapitalizations, consolidations, and similar transactions
with respect to such securities; to deposit such stock tlr other securities in any voting
trust or any protective or like cmnmittee 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; ami generally to
exercise any of the powers of an owner with respect to stocks, bonds, or other
investments comprising the fired which it may deem to be to the best interest of the
fund to exercise.
6)
0)
The board shall not be required to make any inventory ur appraisal or report tn any
conrt, nor to secure any order of court for the exercise rjr'any power contained herein.
Where any actmn which Ire board is required to take or any duly or fimcfion which
it is required to pcrfimn either under the terms herein or under Ire general law
applicable to it as trustee, under this article, can reasonably bc taken or performed
only after receipt by it from a mculbcr, tile city, or an3, other entity, of specific
reformation, certification, direction or instructions, thc board shall be free of liability
m failing to take such actinn or pc~Ibrm such doly or fimction nntd such inforulation,
certification, direction or instruction has been received by it.
Any overpayments or mlderpayments l¥om thc fnnd u/ a member, retiree or
beneficiary caused by errors of computation shall be adjusted with interest at it rate
per ammm approved by thc board in snch a manner that thc actmnial equivalent of
(l)
(m)
the benefit tO which thc mcmbcr, 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. Underpayments shall be made
up from the fund in a prudent manner.
The board shall sustain no liability whatsoever for the sufficiency of the fund to meet
the payments and benefits provided for herein.
in any application to or proceeding or action in the courts, only the board shall bca
necessary party, and no member or other person having an interest in the fend 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.
Any of the tbregoing powers and fi~nctions reposed in the board may be performed
or carried out by thc board through duly authorized agents, provided that the board
at all times maintains continunus supervision over the acts of any such agent;
provided further, that lcgal title to said fund shall always remain in the board.
Sec. 2-265. Contributions.
(1)
(a)
Member contributions.
Amount. Each member of the system shall be required to make regular contributions
to thc fund in the amount of five and onc4cnth (5.1) percent of his gross pay.
Member contributions withheld by thc city on behalf of the member shall be
deposited with lhe board immediately after each pay period. The contributions made
by each member to the fund shall be designated as employer contributions pursuant
to Section 414(h) of thc Code. Such designation is contingent upou the contributions
being excluded from thc members' gross income for Federal Income Tax purposes.
For all other purposes of thc system, such contributions shall be considered to be
mcmber contributions.
(b) Method. Such cuntributions shall bc made by payroll deduction.
(2) State contributions. Any monies received or receivable by reason of laws of thc State
of Florida, for the express ptjrpose offimding and paying lbr retirement benefits lbr police officers
of the city shall be deposited in thc fired comprising part of this system immediately and nnder no
circumstances more than five (5) days after receipt by thc city.
(3) Uity contributions. So long as this system is m effccl, thc city shall make
contributions to thc fund in an amonnt cqnal to lhc dillizrcncc in each year, bclxvccn thc total
aggregate member contributions lbr thc year, plus state contributions which arc legally available to
offset city funding for such year, and the total cost for thc year, as shown by thc most rcccnl actuarial
valuation of thc system, but in no event shall thc city's annual contribution be less than ten (10)
percent of the total base pay of members tbr lbnding benefits provided for herein, including that in
section 2-266(c)(4). Such annual requirement shall bc funded in quarterly installments. Thc total
cost for any year shall be defined as the tutal normal cost plus the additional amount sufficient to
amortize the unfl~ndcd past service liability as provided in Part VI1 of Chapter I 12, Horida Stalutes.
(4) Other. Private donations, girls and contributions may be deposited to thc thnd. but
such deposits must bc accounted lbr separately and kept on a segregated bookkccpiug basis. }:uuds
arising from these sonrccs may bc used ooly fi~r additional benefits for members, as dctc~mincd by
I1
the board, and may not be used to reduce what would have otherwise been required city
contributions.
Sec. 2-266. Benefit amounts and eligibility.
(a) Normal retirement.
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 me~nber shall become one hundred (100) percent vested in his
accrued benefit on the member's nnrmal retirement date. Normal retirement under
the system is retirement from employment with the city on or after thc normal
retirement date.
(2)
Normal retirement benefit. A member retiring hereunder on or after his normal
rctircment date shall receive a monthly benefit which shall commence on the first day
of thc month coincident with or next following his retirement date and be continued
thereafter during member's lifetime, ceasing upon death, but with one hundred twenty
(120) monthly payinents guaranteed in any event. The monthly retirement benefit
shall equal three and fifty hundredths (3.50) percent of average final compensation,
for each year of credited scrvicc.
(b) Earl), retirt'ment.
(l)
Early retirement date. A member may retire on his early retirement date which shall
be thc 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 tile system is rctiremcnl from employment with the city on or after
thc early retirement date and prior tu thc normal retirement date.
(2)
Earl), retirement benrfit. A member retiring hereunder on his early rctiremeni date
may receive either a deferred or an iminediatc monthly retirement benefit payable in
the same form as for normal rctiremcnt as follows:
A deferred monthly retirement benefit which shall commence on what would
have bccn his nom~al retirement date had hc continued employment as a
police o~cer and shall be continued on the first (lay of each month thcrcafler.
The amount of each such deferred monthly retirement benefit shall be
detcrlnincd in the same manner as lbr retire~nent on his normal retirement
dale except that credited service and average final compensation shall be
determined as of his early retirement date: or
An immediate ~nonthly retirement benefit which shall commcnce on his early
retirement date and shall be continued on the first day of each month
thereafter. Thc benefit payable shall be as determined in paragraph a above.
rcduccd by three (3) percent l'tn each year by which the commencement of
benefits precedes thc date whicb would have been tile member's normal
retirement date had be continued cmpk);onent as a police officer.
(c)
(1)
(2)
Pre-retiremdnt 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 performance 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 membel
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:
lfthe 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 lbr ten
(10) yearn, beginning on the date that the deceased member would have been
eligible for early or normal retirement, at the option of the beneficiary. Thc
benefit shall be calculated as for normal retirement based on the deceased
mmnber's credited service and average final compensation as of thc (late of
his death and reduced as for early retirement, if applicable. Thc beneficiary.
may also elect to receive an immediate benefit, payable for ten (10) years,
which is actuarially reduced to reflect the commencement nfbenefits prio~ to
the early retirement date.
If the deceased member was eligible for normal or early retirement, thc
beneficiary shall receive a benefit payable for ten (10) yearn, beginning on thc
first day of the month following the member's death or at the deceased
member's otherwise early or normal retirement date, at the option of the
beneficiary. The benefit shall be calculated as for normal retirement based
on the deceased member's credited service and average final compensation
as of the date of his death and reduced as for early retirement, if applicable
In any event, if the member's death is caused by the performance of his duties
as a police officer (in line of duty), thc beneficiary shall receive a bcncfil
payable for ten (10) yearn, beginning on thc first day of thc month following
thc member's death. The benefit shall be calculated as for normal rctiremcm
(uurcduced) based on thc deceased member's credited service and average
final compensation as of the (late of death. The minimum benefit shall hc
forty (40) percent of average final compensation. Thc presumptions m
subsection (d)(2) of this section shall apply in determining whether a dcalh
was in linc of duty.
A beneficiary may elect an actuarial equivalent life annuity oplional form of
benefit, and the board may elect to make a lump sum payment pursuam m
section 2-267, subsection (7).
A beneficiary may, in lieu of any benefit provided fur in a. or b. above, elect
to receive a refund of the deceased member s accumulate t contribulions.
13
(d)
(1)
(2)
Disabifity.
Disability benefits on-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 police
officer, which disability was directly caused by the performance of his duty as a
police officer, shall, upon establishing the same to the satisfaction of thc board, be
entitled to a monthly pension equal to three and fifty hnndredths (3.50) 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 fifty (50) 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 bc disabled in-line of
duty and the disability resulted from the perpetration of an intentional act of violence
directed toward the police officer and the board reasonably believes the perpetrator
intended to cause great bodily harm or permanent disfigurement of thc police officer,
the minimum amount paid to the member shall be eighty (81)) percent of the average
final compensation of the member. Terminated persons, either vested or non vested.
are not eligible for disability benefits, except that those terminated by thc City for
medical reasons may apply for a disability within thirty (30) days after termma0on.
On duty presumptions.
(a)
Presumption. Any condition or impairment of hcalth of a member caused
by hypertension or heart disease shall be prcsmncd lo have been suffered in
line of duty unless the contrary is shown by competent evidence, provided
that such shall have successfully passed a physical examination upon entering
into such service, including cardiogram, which examination hiled to reveal
any evidence of such condition; and provided further, that such presumption
shall not apply to benefits payable or granted in a pnlicy of life insurance or
disability insurance.
(b)
Additionalpresumption. The prcsmnption provided lbr in this subparagraph
(b) shall apply only to those conditions describcd m this subparagraph (b) thai
arc diagnosed on or after January 1, 1996.
1. . Dg[inilions. As used in this subsection (2)(b), thc lbllnwing
definitions apply:
"Body fluids" means bloud and body fluids containing visible
blood and other body fluids to which universal prccamions tbr
prevention of occupational Iransmission of bhmd-burnc
pathogens, as established by thc Centers for l)iscasc Conrail.
apply. For purposes of polcmial transmissiun of
meningococcal meningitis or tuberculosis, the Icrm "body
fluids" includes respiratory, salivary, and sinus l]uJ(ls,
including droplets, sputtnn, and saliva, nmcous, and olhcr
fluids through which infectious airborne organisms can be
transmitted between persons.
"Emergency rescuc or public salkty mcmbcr" means any
member employed fifil time by the city as a firefightc~;.
paramedic, emergency medical lechnician, law enfi)rccmcm
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 elscwhcre 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.
"Hcpatitis" mcans hepatitis A, hepatitis B, hepatitis non-A,
hepatitis non-B, hepatitis C, or any other strain of hepatitis
gcnerally rccugnized by thc medical community.
"tligh risk of occupational exposure" means that risk that is
incurred because a person subject to the provisions of this
subsection, in pcrtbrming thc basic duties associated with his
employment:
Provides emergency medical treatment in a non-
health-care setting where there is a potential for
transfer of body fluids between persons;
At thc site of an accident, fire, or other rescue or
public safety operation, tlr in an emergency rescue or
public safety vehicle, handles body fluids in orout of
containers or works with or otherwise handles needles
or other sharp instmments exposed to body fluids;
iii.
Engages in the pursuit, apprehension, and arrest of
law violalors or suspected law violators and, in
performing such duties, may be exposed to body
fluids; or
iV,
Is responsible for tile custody, and physical restraint
when necessary, of prisoucrs or inmates within a
prison, jail, or uthct criminal dctcntion t;acility, while
on work detail uutsidc thc facility, or while being
transported and. in pcrlbnning such duties, may be
cxpnscd tn body lluids.
"()ccupational exposure," in thc case of hepatitis,
nmningocnccal meningitis, or tnberculosis, means an
cxpnsurc that occurs during thc performance of job duties that
may place a worker at risk of infection.
]~rc6'ltt~q~lto~. Any emergency rescue or public safety member who
suffcrs a condition or i~npairmcnt of health that is caused by hepatitis,
mcningococcal meningitis, or tuberculosis, that requires medical
treatment, and Ihal results in total or partial disability or death shall
bc presumed to have a disability suffered in thc line of duty. unless
thc contrarv is shown by competent evidence: however, in order to be
entitled to [he presumption, thc member must, by written affidavit as
15
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 for thc
treatment of a coagulation disorder since last
undergoing medical tests for hepatitis, which tests
failed to indicate the presence of hepatitis;
iii.
Engaged in unsafe sexual practices or other high-risk
behavior, as identified by the Centers for 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
iv. Used intravenous drugs not prescribed by a physician.
In the case of meningococcal meningitis, in the 10 days
immediately preceding diagnosis he ~vas not exposed, outside
the scope of his employment, to any person known to have
mcningococcal meningitis or known to be an asymptmnatic
carrier of the disease.
In the case of tuberculosis, in the period of time since thc
member's last negative tuberculosis skin test, he has not been
exposed, outside the scope of his mnployment, tu any person
known by him to have tuberculosis.
Immunization. Whenever any standard, medically recognized vaccine
or other form of immunization or prophylaxis exists tbr thc
prevention of a communicable disease lbr which a presumption is
granted under this section, if medically indicated in thc given
circmnstances pursuant to immunization policies established by the
Advisory Committee on Immunization Practices of the U.S. Public
Health Service, an emergency rescue or public safety member may bc
required by the city to undergo the immunization or prophylaxis
unless the me~nber's physician determines in writing that ~hc
immunization or other prophylaxis would posc a siguificant risk to
the member's health. Absent snch written declaration, failure or
refusal by an emergency rescue or public safety member to undergo
16
(3)
(4)
such immunization or prophylaxis disqualifies the member from the
benefits of the presumption.
Record of exposures. The city shall maintain 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 member shall file an incident or
accident report with the city of each instance of known or suspected
occupational exposure to hepatitis infectiom mcningococcal
meningitis, or tuberculosis.
Required medical tests; preemployment physical. In order lo be
entitled to the presumption provided by this section:
An emergency rescue or public safety member must, prior to
diagnosis, have undergone standard, medically acceptable
tests for evidence of the communicable disease for which thc
presumption is sought, or evidence of medical condifions
derived therefrom, which tests fail to indicate the presence of
infection. This paragraph does not apply m thc case of
meningococcal meningitis.
On or after June 15, 1995, an etnergcncy rescue or public
safety member may be required tu undergo a preemploymcnt
physical examination that tests lbr and fails to reveal any
evidence of hepatitis or tuberculosis.
Disability benqfits off-duty. Any member with five (5) years or more credited service
who shall become totally and permanently disabled to thc extent that hc is unable, by
reason ora medically detem~inable physical or mental impairment, to render uscfid
and efficient service as a police officer, which disability is not directly caused by thc
performance of his duties as a police officer shall, upon establishing thc same m the
satisfaction of the board, be entitled to a monthly pension equal to three and fifty
hundredths (3.50) percent of base pay at the date of disability for each year of
credited service. Terminated persons, either vested or non-vested, are not eligible
disability benefits, except that thosc tcrrninatcd by thc City for medical reasons may
apply for a disability within thirty (30) days after termination.
Conditions disqualifying disabilit3'benqfits. Each member who is claiming disabdity
benefits shall establish, to thc satisfaction of thc board, that such disability w~s
occasioned primarily by:
a. Excessive or habitual usc of any drags, intoxicants or narcotics.
Injury or disease sustained while willfully and illegally partic~pm mg in lights.
riots or civil insurrections or while committing a crime
c. Injury or disease sustained while serving in any branch of the Armed Forces.
Injury or disease sustained after his employment as a police officer with ihc
City of Sanford shall have terminated.
17
(5)
(6)
Injury or disease sustained by the member while working for anyone other
than the city and arising out of such employment.
Physical examination requirement. A member shall not become eligible for
disability benefits until and unless he undergoes a physical examination by a
qualified physician or physicians and/or surgeon or surgeons, who shall be selected
by the board for that purpose. The board shatl not select the member's treating
physician or surgeon for this purpose except in an unusual case where the board
determines that it would be reasonable and prudent to do so.
Any retiree receiving disability benctits under provisions of this article may be
required by the board to submit sworn statements of his condition accompanied by
a physician's statement (provided at the retiree's expense) 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 surgcon 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 efficicnt service as a police officer, thc board shall
recommend to the city that the retiree be returned to performance of duty as a police
officer, and the retiree so returned shall enjoy the same rights that he had at the time
he was placed upon pension. In the event the retiree so ordered to return shall refuse
to comply with the order within thirty (30) days from the issuance thereof, he shall
forfeit thc right to his pension.
Thc cost of the physical examination and/or reexamination of the member claiming
or the retiree receiving disability benefits shall be borne by the fund. All other
reasonable costs as determined by the board incident to the physical examination,
such as, but not limited to, transportation, mcan and hotel accommodations, shall be
borne by the fund.
If the member recovers from disabibty and reenters thc service of the city as a police
officer, his service will be dccmcd to have been continuous, but the period beginning
with the first month tbr which hc received a disability retirement income payment
and ending with the date he rccntcred the service of the city will not bc considcred
as credited service lbr the purposes of thc system.
The board shall have thc power and authority to make the final decisions regarding
all disability claims.
Dixabili~payments. Tbe monthly benefit to which a member is entitled in the event
of the member's disability rctircmem shall bc payable on the first day of thc first
month aftcr thc board determines such entitlement. } lowevcr, the monlhly rctiremcnt
income shall be payablc ils of thc date ibc board dcterufined such entitlement, and
any portion duc for a partial montb sbatl be paid together with thc first payment. The
last payment will be:
If the retiree recovers from tile disability prior to his normal retirement date,
the payment duc ncxl preceding thc dale of such recovery, or
18
If the retiree dies without recovering from disability or attains his normal
retirement date while still disabled, the payment due next preceding his death
or the one hundred twentieth monthly payment, whichever is later.
Provided, however, the disability retiree may select, at any time prior to the date on
which benefit payments begin, an optional forin of benefit payment as described in
section 2-267, subsection (l)(a) or (1)(b), which shall be the actuarial equivalent of
the normal form of benefit.
(7)
Workers'compensation. When a retiree is receiving a disability pension and workers'
compensation benefits pursuant to Florida Statutes, Chapter 440 and/or any other
disability benefit provided by thc 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
disabilily pension benefit shall be reduced so that the total monthly amount received
by the retiree does not exceed one hundred (100) percent of average monthly wage
Thc amount of any lump sum workers' compensation payment shall bc converted to
an equiwllcnt monthly benefit payable for ten (I O) years certain by dividing thc lump
sum amount by 83.9692. Notwithstanding thc foregoing, in no event shall thc
disability pension benefit be reduced below the greater of tbrty-two percent (42%)
of average final compensation or two percent (2%) of average final compensation
times years of credited service.
(e) Vesting. Ifa member terminates his employment as a police officer, either voluntarily
or by discharge, and is not eligible for any other benefits under this system, the member shall
entitled to the lbllowing:
If the ~ncmber has less than ten (10) years credited service upon tcrminatiom the
member shall be entitled to a refund of his accumulated contributions, or the member
may leave it deposited with the fund.
(2)
If thc terminated member has ten (I0) or more years of credited service upon
terminatiom thc member shall be entitled to a monthly retirement benefit, determined
in thc same manner as tbr normal or early retirement and based upon the member's
credited service, average final compensation and the benefit accrual rate as of thc
date of termination, payable to him commencing at member's otherwise normal or
early retirement date. dcler~nincd as if he had remained employed, provided Itc docs
not elect to withdraw his accumulated contributions, and provided member stow'ives
to his othm;visc early or normal retirement date. If the member docs 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 benefit as providc~.l
herein lBr a deceased member, vested or eligible lbr retirement tinder Pre-retirement
death.
(3)
In the event a member elects to receive }lis accumulated contributions m lieu of am,'
benefits hereunder, he shall also receive an additional lump-sum amount equal
(5) percent of thc member's base pay for all years of credited service since Octubcr
1, 1976.
19
(0
(1)
(2)
Maximum pension.
Basic limitation. Subject to the adjustments hereinafter set tbrth, thc maximum
amount of mmual 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 tbrm other
than a straight life annuity with no ancillary benefits shall be adjusted, as provided
by Treasury Regulations, so that such benefits are the actuarial cquJvalcm of a
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 [Inlemal
Revenue] Code and Regulations thereunder to be taken into account for
purposes of the limitation of Section 415(b)(I) of the [Internal Revenue
Code.
Participation in other defined bengfitplans. The li~nitation of this subsection ~vith
respect to any ~nember who at any time has been a member in any olhcr defined
benefit plan (as defined in Section 4140) of thc [Internal Rcvenuc] Code) maintained
by the city shall apply as if the total benefits payable under all dc fined bcnelh plans
in which the member has been a member were payable from nnc ( I ) plan.
(3) Adjustments in limitations.
In the event the member's retirement benefits become payable bel¥>rc age
sixty-two (62), the one hundred sixty thousand dollar ($160.000.00)
limitation prescribed by this subsection shall be reduced m accordance with
regulations issued by the Secretary of thc Treasury pursuant to thc provisions
of Section 415(b) of the [intemal Revenue} Code, so that such limitation (as
so reduced) equals an annual benefit (beginning when such retirement income
benefit begins) which is equivalent to a one hundred sixty lhousand dollar
($160,000) annual benefit beginning at age sixty-two (62).
In the event the member's benefit is bascd on at least fifteen ( 15 ) 3'cms of
credited service, the a4iustmcnts provided for in a. above shall not appl)
The reductions provided for in a. above shall not bc applicable to disability
benefits paid pursuant to Sec. 2-266, Benefits amounts and eli~ibilitl,.
subsection (d), or pre-retirement death benefits paid pursuant to Sec 2 266~
Benefit amounts and eligibility, snbsection (cl.
If the member's retirement benefit becomes payable after age sixty-risc (65 l,
for purposes of determining whether this benefit meets thc limitation sci
in section 2-265(0(1) herein, such benefit sball bc adjusted so that ii is
actuarially equivalent to thc benefit beginning at age sixty-five (65) Ibis
at[justmcnt shall be made in accordance witb regulations promulgated by thc
Secretary of the Treasury or his delegate.
20
(4)
(5)
(6)
(7)
(8)
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 amount determined under section 2-265(f)(1)
~nultiplied by a fraction, the numerator of which is the number of the member's years
of credited service and the denominator of which is ten (10). Thc reduction provided
for in this subsection shall not be applicable m disability benefits paid pursuant to
Sec. 2-266, Benefits amounts and eligibility, subsection rd), or pre-retirement death
benefits paid pursuant to Sec. 2-266, Benefit amounts and eligibility, subsection (c).
$10,000. O0 limit. Notwithstanding the foregoing, the retirement benefit payable with
respect to a member shall be deemed not to exceed the limitations set fbrth 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 qfbene, fits. Reduction of benefits and/or cnntributions to all plans, where
required, shall be accomplished by first reducing thc anember'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 thc board and the plan
administrator of such other plans, and next, by reducing or allocating excess
forfeitures for defined contribution plans iu which the member participated, such
reduction to bc made first with respect to the plan iai which member most recently
accrued benefits and thereafter in such priority as shall bc 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 othcr plans covering such member.
Cost qf-living a4justments. Thc limitations as stated in subsections (1)( I ), (t)(2) and
(0(3) herein shall be adjusted to the time pa)qncnt ora benefit begins in accordance
with any cost-of-living ac[justments prescribed by thc Secretary of the Treasury
pursuant to Section 415(d) of the [lntemal Revenue] Code.
Additional li*n~tation on pension benefits. Notwithstanding anything herein to the
contrary:
The normal retirement benefit or pension payable to a retiree who becomes
a member of the system and who has nnt previously participated in such
system, on or alter January I, 1980, shall not exceed ()nc hundred (I00)
percent of his average final compensation, ltowcver, nothing contained m
this subsection shall apply to supplemental retirement benefits or to pension
increases attributable to cost-of-living increases or adjustments.
No member of thc system shall be allowed to ~cccivc a retirement bcnctit oa
pension which is in part or in whole based upon any service with respect to
which the member is already receiving, or will receive m thc future, a
retirement benefit or pension from a difl~rent employer's retircmcm system
or plan. This restriction docs not apply to social sccnrity benefits oa fr.'doral
benefits under (?hap(er 67, Ti(lc }0, [J.g. Code.
21
(g) Minimum distribution of benefits.
( 1 ) General rules.
(2)
Effective date. The provisions of this section will apply for purposes of
determining required ~ninimum distributions for calendar years beginning
with the 2003 calendar year.
Precedence. The requirements of this section will take precedence over any
inconsistent provisions of the plan.
Requirements of Treasury regulations incorporated. Ail 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 may be made under
a designation made before January 1, 1984, in accordance with section
242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the
provisions of the plan that related to section 242(b)(2) of TEFRA.
Time and manner qf 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
following the later of the calendar year in which the member attains age
seventy and one-half(70 ½) or the calendar year in which the member retires
unless otherwise provided for in the plan or required by law.
Death of member bejbre distributions begin. If the me~nbcr dies bcfbrc
distributions begin, thc member's entire interest will be distributed, or begin
1o be distributed no later than as follows:
If thc member's snrviving spouse is the member's sole designalcd
beneficiary, then distributions to thc surviving spouse will begin by
Dcccmbcr 31 of thc calendar year immediately following thc calendar
year in which the member died, or by December 31 of the calendar
year in which thc member would have attained age 70 '/2, if later.
If the member's surviving spouse is not the member's sole designated
beneficiary, then, distributions to the designated beneficiary will
begin by December 31 of thc calendar year immediately fbllowing thc
calendar year in which the member died.
If there is no designated beneficiary as of September 30 of thc year
following thc year of the member's death, the member's entire in[cryst
will be distributed by December 31 of thc calendar year contmmng
the fifth anniversary of the member's death.
22
(3)
If the member's surviving spouse is the member's sole designated
beneficiary and the surviving spouse dies after the member but before
distributions to the surviving spouse begin, this subsection (2)b.,
other than subsection (2)b.l., will apply as if the surviving spouse
were thc member.
For purposes of this subsection (2)b. and subsection (5), distributions
are considered to begin on the member's required beginning date or,
if subsection (2)b.4. applies, the date of distributions are required to
begin to the surviving spouse under subsection (2)b.l. If annuity
payments irrevocably commence to the member before the member's
required beginning date (or to the member's surviving spouse before
the date distributions are required to begin to the surviving spouse
undcr subsection (2)b.l.) the date distributions are considered to
begin is the date distributions actually commence.
Form of distribution. Unless the member's interest is distributed in the form
of an annuity purchased from an insurance company or in a single sum on or
before the required beginning date, as of the first distribution calendar year
distributions will be made in accordance of subsections (3), (4) and (5) of this
section. If the member's interest is distributed in the form of an annuity
purchased from an insurance company, distributions thereunder will be made
in accordancc with the requirements of section 401(a)(9) of thc Code and
Treasury regulations. Any part of the member's interest which is in the form
of an individual account described in section 414(k) of the Code will be
distributed in a manner satistying thc requirements of section 401 (a)(9) of the
Code and Treasury regulations that apply to individual accounts.
Determination pf amount to be distributed each year.
General annuiO~ requirementx. If the me~nber's interest is paid in the form of
annuity distributions under the plan, payments undcr thc annuity will satisfy
the following requirements:
1. The annuity distributions will bc paid in periodic payments made at
. intervals not longer than onc year.
The distribution periud will be over a life (or lives) or over a period
certain not tongcr than thc period described m subsection (4) or (5).
Once payments have begun over a period certain, thc period ccrtain
will not be changed even if the period certain is shorter than thc
maximum permirted.
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 the
Burcau of I.abor Statistics ot by a fixed annual increase of
l]vc percent or less.
23
(4)
ii
'Fo the extent of the reduction in the amount of the 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 in subsection (4) dies or is
no longer thc member's beneficiary pursuant to a qualified
domestic relations order within thc meaning of section 414(p).
iii
To provide cash refunds of accumulated contributions upon
the member's death.
iv To pay increased benefits that result from a plan amendment.
Amount required to be distributed by required beginning date. The amount
that must be distributed on or before the member's required beginning date
(or, if the member dies before distributions begin, the date distributions are
required to begin under 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. Payment intervals are thc 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 the amount of thc annuity
payments for payment intervals ending on or after thc mc~nber's required
beginning date.
Additional accruals after.first distribution calendar year'. Any additional
benefits accruing to the member in a calendar year after the first distribntion
calendar year will be distributed beginning with thc first payment interval
ending in the calendar year immediately following thc calendar year in which
such amount accrues.
Requirementx fi>r annuity distributions that commence during a member g' I~f~time.
doinl life annuities where the beneficiary is not the member~' 37;ouse. If the
member's interest is being distributed in the form of a joint and survivor
annuity for the joint lives of the member and a nonspouse beneficiary, annuity
payments to be made on or after the member's required beginning dale to the
designated beneficiary after the member's death must not m any lime exceed
the applicable percentage of the annuity payment fur such period that would
have been payable tn the member using thc table scl fimh in Q&A 2 of
section 1.401(a)(9)-6TofthcTreasuryrcgulations. If the form of distribution
combines a joint and snrvivor annuity for the joint lives of thc member and
a uonspouse bcncficiaiy and a period certain annuity, the requirements in the
preceding sentence will apply to ammity payments ~obc made to the
designated beneficiary_ after the expiration of thc period certain.
Period certain annuities. Unless the member's spouse is the sole designated
beneficiary and the form of distribution is a period certain and no bfe annuity,
the period certain l~r an annuity distribution commcnciug during thc
member's lifetime may not exceed the applicable dismbution period fi~r the
member tinder thc Unifurm l~ifetime Table scl limb in section 1.401(a)(9)-9
of the Treasury rcgulaftons for thc calendar year 0ml contains thc annuity
24
begin.
(5)
startihg date. If thc annuity starting date precedes the year in which the
member reaches age 70, the applicable distribution period for the member is
the distribution period for age 70 under the Uniform Lifetime Table set forth
in section 1.401(a)(9)-9 of the Treasury regulations plus the excess of 70
over the age of the member as of the {nember's birthday in the year that
contains the annuity starting date. If the 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 may not exceed the longer of the
member's applicable distribution period, as determined under this subsection
(4)b., or the joint life and last survivor expectancy of the member and the
member's spouse as determined under the Joint and Last Survivor 'Fable set
forth in section 1.401 (a)(9)-9 of the Treasury regulations, using thc member's
and spouse's attained ages as of the member's and spouse's birthdays in the
calendar year that contains the annuity starting date.
Requirernents fl)r minimum distributions where member diex bt~fore date distributionx
Member survived by designated beneficiary. If the member dies before thc
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 thc life of
the designated beneficiary or over a period certain not exceeding:
1. Unless the annuity starting date is bclBrc thc first distribution
calendar year, the life expectancy of the designated beneficiary
determined using the bcneficiary's age as of the bone ficiary's birthday
in the calendar year immediately following the calendar year of thc
member's death.
2. If the annuity starting date is before the first distribution calendar
year, the life expectancy of thc designated beneficiary, dctcrnfincd
using thc beneficiary's age as of thc bencficiary's bii'thday in
calendar year the contains the annuity starting date.
No dosignated beneficialy. If the ~ncmber dies before thc date distributions
begin and there is no designated beneficiary as of September 30 of thc year
following the year of the member's death, distribution of thc member's entire
interest will be completed by Dccembc~ 31 of Irc calendar year containing
the fifth anniversary of the member's death.
Death qf surviving ~i)ouse bqfbre distrib1~tionx lo surviving xl~ouxe begin. If
the member dies before the date dislribution of his interest begins, thc
member's surviving spouse is the member's sole designalcd beneficiary, and
thc surviving spouse dies before distributions to the surviving spouse begin,
this subsection (5) will apply as if the surviving spouse were the member,
except that the time by which distributions must begin xvill bc determined
without regard to subsection (2)b. 1.
25
(6) Definitions.
(2)
(h)
(l)
a. Designated beneficiary. The individual who is designated as the beneficiary
under the plan and is the designated beneficiary under section 401(a)(9) of the
Code and section 1.401 (a)(9)- l, Q&A4, of the Treasury regulations.
b. Distribution calendar year. A calendar year for which a minimmn
distribution is required. For distributions beginning before thc member's
death, the first distribution calendar year is the calendar year immediately
preccding the calendar year which contains the member's required begimfing
date. For distributions beginning after the member's death, thc first
distribution calendar year is the calendar year in which distributions are
required to begin pursuant to subsection (2)b.
c. (-~,ex~ectancy. Life expectancy as computed by use o fthe Single Life Table
~n sectmn 1.401(a)(9)-9 of the Treasury regulations.
d. Required beginning date. Thc date specified in subsection (2)a.
Forfeiture of pension.
Any member who is convicted of the lbllowing offenses committed prior tu
retirement, or whose employment is terminated by reason of bis admitted
commission, aid or abetment of the following specified offenses, shall forfeit all
rights and benefits under this system, except for the return of his accumulated
contributions as of the date of termination. Specified offenscs are as follows:
a. Thc committing, aiding or abetting of art embezzlement of public funds;
b. The committing, aiding or abetting of any theft by a public officer or
employee from employer;
c. Bribery in connection with thc employment ora public officer or employee;
d. Any felony specified in Chapter 838, Florida Statutes.
c. The committing ()fan impeachable offcnse.
f. Thc committing of any felony by a pubbc officer or employee who. willfully
and with intcnt to defraud thc public or the public agency, for which hc acts
or in which hc is employed, of thc right to receive the faith fid pcrfnrmancc
of his duty as a pnblic officer or employee, realizes or obtains or atte~npts to
ubtain a profit, gain, or advantage for himself or for some other person
through the nsc 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
jnrisdiction: a plea of guilty or a nolo contenders; a jury verdict of guilty when
adiudication of guilt is withheld and thc accused is placed on ~robation; or a
conviction by the Senate of an ilnpeachable ot]~use.
26
(3)
(4)
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
commission of a specified offense. Prior to forfeiture, the board shall hold a hearing
on which notice shall be given to the member whose benefits are being considered
for forfeiture. Said member shall be afforded the right to have an attorney present.
No formal roles of evidence shall apply, but the member shall be afforded a full
opportunity to present his case against forfeiture_
Any member who has received benefits from the system in excess of his accumulated
contributions after member's rights were forfeited shall be required to pay back to the
fund the amount of the benefits received in excess of his accumulated contributions.
Tbc board may implement all legal action necessary to recover such funds.
(i) Conviction andJbrfeiture; false, misleading or fraudulent statements.
It is unlawful for a person to willfully and knowingly make, or cause to be 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.
(2)
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.
(3)
In addition to any applicable criminal penalty, upon conviction for a violation
described in subsection (1), a member or beneficiary of the system may, in the
discretion of the board, be required to forfeit the 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 ora plea
or trial, regardless of whether adjudication is withheld.
Sec. 2-267. Optional forms of benefits.
( 1 ) In lieu of the amount and form of retirement income payable in the event ofnnrmal
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 thc following options:
(a) A retirement income of a monthly amount payable to the retiree fur his lifetime only.
(h)
A retirement income of a modified monthly amount, payable to thc retiree (luring the
lifetime of the retiree and following the 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 thc retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of thc payments to the retiree shall not exceed the
applicable percentage provided fur in the applicable table in the Treasury
Regulations.
(c)
I f a member retires prior to thc time at which social security benefits are payable, he
may elect to receive an increased retirement benefit until such time as social security
benefits shall bc assumed to conuncnce and a reduced benefit thereafter in order to
27
provide, to hs great an extent as possible, a more level retirement allowance during
the entire period of retirement. The amounts payable shall be as recommended by
the actuaries for the system, based upon the social security law in effect at the time
of the 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 the benefit, if any,
payable under the system in the event of member's death, and will have thc power to change such
designation from time to time. Such designation will name a joint pensioner or one or more primary
beneficiaries where applicable. A member may change his beneficiary at any time. lfa member has
elected an option with a joint pensioner and the membcr's retirement income benefits have
commenced, the member may thereafter change his designated beneficiary at any time, but may only
change his joint pensioner twice. Subject to the restriction in the previous sentence, a member may
substitute a new joint pensioner for a deceased joint pensioner. Effective January 1, 2005, any
current retiree, regardless of his date of retirement, may elect the options provided for in this
subsection (2).
(3) Thc consent of a member's or retiree's joint pensioner or bcncficiary to any such
change shall not be required. The rights of all previously dcsignatcd 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 thc retirement income payable to the retiree shall be actuarially rcdetem~ined to take into account
the age of thc former joint pensioner, the new joint pcnsioncr and thc retiree and to ensure that thc
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 rcqucst
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 2-262(2).
(5) Retirement income payments shall be madc under the option elected in accordance
with the provisions of this section and shall be subject tO the following limitations;
(a)
If a member dies prior to his normal retirement date or early retirement date,
whichever fi~st occurs, no retirement benefit will be payable under the option to any
pcrson, but the benefits, if any, will be determined under section 2-266(c).
(b)
If the designated beneficiary (or beneficiaries) or .joint peusioner dies belBrc the
member's rctircment under thc system, thc option clcctcd will bc canceled
automatically and a retirement incomc of thc normal form anti amount will bc
payable to thc member upon his retirement as if thc election had not been made,
unless a new clcction is made in accordance with thc provisions of this section or a
new beneficiary is designated by the member prior to his retirement.
(c)
If both the retiree and the beneficiary. (or bcncficiarics) designated by member or
retiree die before the full payment has been effected under any option providing fi)r
payments for a period certain and life thereafter, made pursuant to the provisions of
subsection ( I ), thc board may, in its discretion, dircct that thc commuted value of thc
remaining payments be paid in a lump sum and Jn accordauce with section 2-262(2).
28
(d)
If a member ~:ontinues beyond his normal retirement date pursuant to the provisions
of section 2-266(a)(1), and dies prior to his actual retirement and while an option
made pursuant to the provisions of this section is in effect, monthly retirement
income payments will be made, or a retirement benefit will be paid, under the option
to a beneficiary (or beneficiaries) designated by the in the amount or amounts
computed as if the had retired under the option on the date on which his death
occurred.
(6) A refirce may not change his retirement option after the date of cashing or depositing
his first retirement check.
(7) Notwithstanding anything herein lo thc 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 is less than one hundred dollars ($t00.00) or the total commuted value of the
remaining monthly income payments to bc 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 the
board by the preceding sentence shall operate as a complete discharge of all obligations under the
system with regard to such member and shall not be sul~iecl to review by anyone, but shall be final,
binding and conclusive on all persons.
Sec. 2-268. 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 of any person ("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 lo 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 thc issuance of any subpoenas not to exceed the fees
set forth in Florida Statutes.
Sec. 2-269. 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 thc fund be used for or diverted to any purpose other than for their
exclusive benefit.
(2) No reduction (?['accrued benqfits. No amendment or ordinance shall be adopted by
the city commission which shah havc thc cfi'cot of reducing thc then vested accrued bcnetits of
members' or a member's beneficiaries.
(3) Domestic relations orders, retiree direr ted ]~ffvme~Jts; exemption from execution,
nonassignability.
(a) Domestic' relations orders.
Prior to the entry of any domestic rclalions order which all;eels or pnrporls to
affect the system's rcspensibility in connection with the payment of benefits
of a retiree, tile member or retiree shall subnrit the proposed order 1o thc
29
board for rcview 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 the order, and the system is ordered to take action that it may not
legally take, and thc system expends administrative or legal fees in resolving
thc matter, the member or retiree who submits such an order will be required
to reimburse the system for its expenses in connection with the order.
(b)
Retiree directed payments. The board may, upon written request by a retiree or by
a dependent, when authorized by a retiree or the retiree's beneficiary, authorize thc
system to withhold from the monthly retirement payment those funds that are
necessary to pay for the benefits being received through the city, to pay the certified
bargaining agent of the city, and to make any payments for child support or alimony.
(c)
Exemption from execution, non-assignability. Except as otherwise provided by law,
the pensions, annuities, or any other benefits accrued or accruing to any person under
the provisions of this article and the accumulated contributions and the cash
securities in thc fund created under this article are hereby exempted from any state,
county or municipal tax and shall not be subject to execution, attachment,
garnishment or any legal process whatsoever and shall be unassignable.
(4) Pension validity. The board shall have the power to examine into the facts upon
wbich 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. The board is
empowered to purge the pension rolls or correct the pension amount of any person heretofore granted
a pension under prior or existing law or any person hereafter granted a pension or heretofore granted
under this article if the same is found to be erroneous, fraudulent or illegal for any reason; and to
reclassify any person who has heretofore under any prior or existing law been or who shall hereafter
under this article be erroneously, improperly or illegally classified. Any overpayments or
underpayments shall be corrected and paid or repaid in a reasonable manner determined by the board.
(5) Qualification (t['.wstem. It is intended 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 requirements of the applicable
provisions of thc Code as noxv in effect or hereafter amended, or any other applicable provisions of
thc U.S federal tax laws, as now in effect or hereafter amended or adopted, and the regulations
issued thereunder.
(6) Uset?ffi~(feitures. Forfeitures arising from terminations of service of members shall
se~we only to reduce future city contributions.
Sec. 2~270. Repeal or termination of system.
( 1 ) This article establishing thc system and fund, and subsequent ordinances pertaining
to said system and fund, may be modified, terminated, or amended, in whole or in part; provided lhat
if this or any subsequent ordinance shall bc amended or repealed th its application to any person
benefiting hereunder, the amount of benefits which at the time of any such alteratiom amendment,
or repeal shall have accrued to the member or beneficiary shall not be affected thereby, except to thc
extent that thc assets of the fund may be determined to be inadequate.
3{)
(2) If this articleshall be repealed, or if contributions to the system are discontinued, or
if there is a transfer, merger or consolidation of government units, services or functions as provided
in Chapter 121, Florida Statutes, the board shall continue to administer the system in accordance
with the provisions of this article, for the sole benefit of the then members, any beneficiaries then
receiving retirement allowances, and any future persons entitled to receive benefits under one of the
options provided for in this article who are designated by any of said members. In the event of
repeal, discontinuance of contributions or transfer, merger or consolidation of government units,
services or functions or if contributions to the system are discontinued, there shall be full vesting
(100%) of benefits accrued to date of repeal and the assets of the systcm shall be allocated in an
equitable manner to provide benefits on a proportionate basis to thc persons so entitled m accordance
with the provisions thereof.
(3) The following shall be the order of priority for purposes of allocating thc assets of the
system as of the date of repeal of this article, or if contributions to the system are discontinued with
the date of such discontinuation being determined by the board.
(a)
Apportionment shall first be made in respect of each retiree receiving a rcfircmcm 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) membcr~ ami each
member who has, by such date, become eligible for nomml retirement but has not yet
retired, an amount which is the actuarial equivalent of such benefit, provided that. it'
such asset value be less than the aggregate of such amounts, such amotmts shall be
proportionately reduced so that the aggregate of such reduced amounts will bc equal
to such asset value.
(b)
If there be any asset value remaining after the apportionment under paragraph (3)(a)
above, 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 apportionmcm
under paragraph (3)(a) above, in the amount required to provide thc actuarial
equivalent of the vested portion of the accrued noru~al retircment bcncfiL but not less
than accumulated contributions (but not less than accumulated comribmiuns), based
on the credited service and average final compensation as of such date. and cach
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 thc amotmts
apportioned hereunder, such latter amounts shall be proportionately reduced st) that
the aggregate of such reduced amounts will be equal to such remaining asset value.
(c)
I fthere be any asset value after the apportionmcnts undcr paragraphs ( 3 )(a) a nd (X)I b)
above, apportionment shall be made in respect of each member m the service ollhc
city on such date who is not entitled to an apportionment under paragraphs 13){ a I and
(3)(b) above in the amount equal to member's accumulated cmnribntions, prox idcd
that, if such remaining asset value be less than the aggregate of the amotmls
apportioned hereunder such latter amount shall be proportionately reduced so thai thc
aggregate of such reduced amounts will be equal to such remaining asscl value
(d)
If there be any asset value remaining after thc apportionments undc~ t)aragml*hs
(3)(a), (3)(b), and (3)(c) above, apportionment shall lastly be made in respect of each
member included in paragraph (3)(c) above to the extcm of the actuarial cquix aleut
of the non-vested accrued normal retirement benefit~ less the amount appmliunctl m
paragraph (3)(c), based on the credited scrvice and average final compensatmn as ol
31
(e)
such date, prbvided that, if such remaining asset value be less than the aggregate of
the amounts apportioned hereunder, such amounts shall be reduced so that the
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 specified
in paragraphs (3)(a), (3)(b), (3)(c), and (3)(d), such excess shall be returned to the
city, less return of the state's contributions to the stale, provided that, if the excess is
less than the total contributions made by the city and the state to 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 the
board be carried out through the purchase of insurance company contracts to provide the benefits
determined in accordance with this subsection. The fund may be distributed in one sum to the
persons entitled to said benefits or the distribution may be carried out in such other equitable manner
as the board may direct. The fund may be continued in existence lbr 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 annual rctircment allowance provided by the city's
contributions at member's normal retirement date woukt 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 sxnaller 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 Commissioner of Internal Revenue, or otherwise, that the
provi sions of this paragraph arc not then necessary to qualil~, the system under the [lntemal Revenue]
Code, this paragraph shall be ineffective without the 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 satisfied, then and only then shall any remaining funds revert to the
general fund of the city.
Sec. 2-271. Direct transfe~-s of eligible rollover distributions; Elimination of mandatory
distributions.
(a)
Rollover distributions
General. This section applies to distributions made on or after January 1, 2002.
Notwithstanding any provision of thc system to the contrary that would otherwise
limit a distributec's election under this section, a distributes may elect, at the time and
in the manner prescribed by the board, to have any portion of an eligible rollover
distribution paid directly to an eligible retirement plan specified by the dislributes in
a direct rollover.
(b)
Definitions.
1. Eligible rollover distribution: An eligible rollovcr distribution is any
distribution of all or any portion of thc balance to thc credit of the distribotec,
32
except that an eligible rollover distribution does not include: any distribution
that is one of a series of substantially equal periodic payments (not less
frequently than annually) made for the life (or life expectancy) of the
distributee or the joint lives (or joint life expectancies) of the distributee and
the d istributee's designated beneficiary, or for a specified period of ten (10)
years or more; any distribution to the extent such distribution is required
under Section 401(a)(9) of the [Internal Revenue] Code; and the portion of
any distribution that is not includible in gross income. Any portion of any
distribution which would be includible in gross income will be an eligible
rollover distribution if the distribution is made to an individual retirement
account described in Section 408(a), to an individual retirement annuity
described in Section 408(b) or to a qualified defined contribution plan
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 thc portion of such
distribution which is not so includible.
Eligible retirement plan: An eligible retirement plan is an individual
renrement 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
m Section 457(b) of the [Internal Revenue] Code which is maintained by an
eligible employer described in Section 457(e)(1)(A) of the [Internal Revenue]
Code and which agrees to separately account for amounts transferred into
such plan from this plan, an annuity contract described in Section 403(b) of
the [Internal Revenue] Code, or a qualified trust described in Section 401 (a)
of thc [Internal Rcvcnue] Code, that accepts the distributee's eligible rollover
distribution. This definition shall also apply in the case of an eligible rollover
distribution to thc surviving spouse.
Dixtributee: A distributee includes an employcc 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.
Dire~ rollover. A direct rollover is a payment by the plan to the eligible
retirement plan specified by thc distributee.
(2) Rollovers or iran.y/hfs into the fund. On or after January 1, 2002, the syste~n will
accept, solely for the purpose of purchasing credited service as provided herein, permissible Member
requested transfers of funds l?om othcr retirement or pension plans, member rollover cash
contributions and/or direct cash rollovcrs of distributions madc on or after January 1, 2002, as
lbllows:
(a)
Tran~sfers and direct rollm'erx or member rollover contributions fi-om other plans.
The syste~n will accept either a direct rollover of an eligible rollover distribution or
a me~nber contribution o~' an eligible rollover distribution fi-om a qualified plan
described in Section 401(a) or 403(a) of the [internal Revenue] Code, from an
annuity contract described m Section 403(b) of the [Internal Revenue] Code or from
an eligible plan under Section 457(b) of the [Internal Revenue] Code which is
maintained by a state~ political subdivision o£ a statc~ or any agency or
instrnmcntatily of a state or political subdivision of a statc. Thc sy(tcm will also
33
accept legally, permissible member requested transfers of funds frmn other retircmcnt
or pension plans.
(b)
Member rollover contributions from IRAs. The system will accept a ~nember rollover
contribution of the portion of a distribution from an individual retirement account or
annuity described in Section 408(a) or 408(b) of the [Internal Revenue] Code that is
eligible to be rolled over and would otherwise be includible in gross income.
(3) EliminationofMandatoryDistributions. Notwithstanding any other provision herein
to the contrary, in the event this Plan provides for a mandatory (involuntary) cash distribution from
the Plan not otherwise required by law, for an amount in excess of one-thousand dollars ($1,000.00),
such distribution shall be made from the Plan only upon written request of the Member and
completion by the Member ora written election on forms designated by the Board, lo either receive
a cash lump sum or to rollover the lump sum amount.
Sec. 2-272. Family Medical Leave Act.
The fractional parts of the twelve (12) month period ending each September I 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, 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 thc fractional parts nf
the twelve (12) months ending each September I for which he is requesting credit
plus amounts actuarially determined such that the crediting of service does not rcsuh
in 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-month period
prior to each September 1 shall be made on or before September 30
(3) Payment by the member of the required amount shall be on or before Decembe~ 31
for the preceding twelve-month period ending September I and shall be made in {)ne
(1) lump-stun payment upon receipt of which credited service shall be issncd.
(4) Credited service purchased pursuant to this section shall not count toward vesting
(5) For those members who purchase credited service hereunder, only thal portion otany
payment representing the sum that he would have contributed (one (I) percent of
what would have been received as gross pay, plus five (5) percent of what xvouhl
have been received as base pay for all years of credited service since October l,
1976) had he been a member of the system for the fractional parts of years lbr which
he is requesting credit, shall be included in accumulated contributions.
Sec. 2-273. Military service prior to employment.
The years or fractional parts of years that a police officer servcs or has servcd on active duty
in the military service of the Arn~ed Forces of the United States, the United States Merchant Marine
or the United States Coast Guard, voluntarily or involuntarily and honorably or under honorable
conditions, prior to first and initial employment with the city police department shall be addcd to his
years of credited service provided that:
34
The member: contributes to the fund the sum that he would have contributed, based
on his salary and the member contribution rate in effect at the time that the credited
service is requested, had he been a member of the system for the years or fractional
parts of years for which he is requesting credit plus amounts actuarially determined
such that the crediting of service does not result in any cost to the fund plus payment
of costs for all professional services rendered to the board in connection with the
purchase of years of credited service.
(2)
Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement, but no purchase is permitted for a period of less than
one year.
(3)
Payment by the member of the required ainount shall be made within six (6) months
of his request for credit, but not later than the retirement date, and shall be made Jn
one lump sum payment upon receipt of which credited service shall be given.
(4) The maximum credit under this section shall be three (3) years~
(5)
Credited service purchased pursuant to this section shall not count toward vesting or
eligibility for not-in-line of duty disability retirement.
Sec. 2-274. Prior police service.
Unless otherwise prohibited by law, and except as provided for in section 2-261, the years
or fractional parts of years that a member previously served as a police officer with the city during
a period of previous employment and for which period accumulated contributions were withdrawn
from the fund, or the years and fractional parts of years that a member served as a full-rune police
officer for any other municipal, county or state law enforcement department in the State of Florida
shall be added to his years of credited service provided that:
(1)
The member contributes to the fund the sum that he would have contributed, based
on his salary and the member contribution rate in effect at thc time that thc credited
service is requested, had he been a member of the system for the years or ti-actional
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 the board in connection with the
purchase of years of credited service.
(2)
Multiple requests to purchase credited service pursuant to this section may be made
at any time prior to retirement, hut no purchase is pem~iltcd fur a period of less than
one year.
(3)
(4)
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, anti shall be made in
one lump sum payment upon receipt of which credited service shall be given.
The maximum credit for prior scrvice with another law cnforccment department
other than with the City of Sanfurd shall be live (5) years of credited se~x4ce and shall
count for all purposes, except vesting and eligibility for not-in4mc of duty disability
benefits.
35
(6)
There shall l~e no maximum credit for prior service with the City of Sanford police
department and all years of credited service shall count for all purposes, including
vesting.
In no event, ho~vever, may credited service be purchased pursuant to this section for
prior service with any other municipal, county or state law enforcement agency, if
such pri or sc(vi ce forms or will form the basis ora retirement benefit or pension from
a difl~rent employer's retirement system or plan as set forth in section 2-266,
subsection (f)(8)b.
Sec. 2-275. Reemployme~rt afler relirement.
(l) 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 ~nay receive
compensation from that employment without limiting or restricting in any way the retirement
benefits payable under this system. Reemployment by the city shall be subject to the limitations set
forth in this section.
(2) After normal retirement. Any retiree who is retired under normal (or early) retirement
pursuant to this systenr and who is recmployed as a police officer and, by virtue of that
reemployment, is eligible to participate in this system, shall upon being reemployed, discontinue
receipt of benefits. Upon reemployment, the member shall be deemed to be fully vested and the
additional credited service accrued during the subsequent employment period shall be used in
computing a second benefit anrount attributable to the subsequent employment period, which benefit
amount shall be added to the benefit dctemfined upon the initial retirement to determine the total
benefit payable upon final retirement. Calculations of benefits upon retirement shall be based upon
the benefit accrual rate, average final compensation, and credited service (and early retirement
reduction factor, if applicable) as of that date and the retirement benefit amount for any subsequent
employment period shall be based upon the benefit accrual rate, average final compensation (based
only on thc subscqueut employment period), and credited service (and early retirement reduction
factor, if applicable) as of the date of subsequent retirement. The amount of any death or disability
benefit received during a subsequent period of employment shall be reduced by the amount of
accrued benefit eligible to be paid for a prior period of employment. The optional form of benefit
and any joint pensioner selected upon initial retirement shall not be subject to change upon
subsequent retirement except as otherwise provided herein, but the retiree may select a different
optional form and joint pensioner applicable only to the subsequent retirement benefit.
(3) Anv retiree who is retired under normal retirement pursuant to this system who is
rcemployed by th~ City in a position other than as a police officer, shall upon being rcemployed,
continue receipt of benefits for thc period of any subsequent employment period.
(4) ,{[~er t~ar/~' rcta'cme~t. Any retiree who is retired under early retirement pursuant to
this system and who subsequently becomes an employee of the city in any capacity, shall discontinue
receipt of benefits from thc system. If thc reemployed person, by virtue of his reemployment, is
eligible to participate m this ~vstcm. that person shall accrue a second benefit as provided tbr in
subsection (2) above amt ben'fit payments shall remain suspended dunng any such subsequent
employment period. Il' thc rccmplo~cd pc(son is not eligible to participate in this system, that
pc(son's pension benefit payments shall bc suspended until the earlier of termination of employment
or such time as the rcemploycd retiree reaches the date that he would have been eligible for normal
retircmcnt under this system bad hc continued employment alld not elected early retirement.
"Normal retirement" as used in this subsection shall be thc current normal retirement (late provided
for under this system.
36
(5) Reemploymeht ofterrninated vestedpersons. Reemployed terminated vested persons
shall not be subject to the provisions of this section until such time as they begin to actually receive
benefits. Upon receipt of benefits, terminated vested persons shall be treated as normal or early
retirees for purposes of applying the provisions of this section and their status as an early or normal
retiree shall be determined by the date they elect to begin to receive their benefit.
(6) DROPparticipants. Members or retirees who are or were in the deterred retirement
option plan shall, following termination of employment after DROP participation, have the options
provided for in this section for reemployment.
Sec. 2-276. Deferred retirement option plan.
(a)
(1)
(2)
Definitions. As used in this section 2-276, the following definitions apply:
"DROP" -- The City of Sanford Police Officers' Deferred Retirement Option Plan.
"DROP account" -- The account established for each DROP participant under
subsection (c).
(b)
(1)
(2)
(3)
Participation.
Eligibility to participate. In lieu of terminating his employment as a police officer,
any member who is eligible for normal retirement under the system may elect to defer
receipt of such service retirement pension and to participate in thc DROP.
Election to participate. A member's election to participate in thc DROP must be
made in writing in a time and manner determined by the board and shall be effective
on the first day of the first calendar month which is at least fifteen (15) business days
after it is received by the board.
Period qfparticipation. A member who elects to participate in thc I)ROP 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 becomcs effective.
An election to participate in the DROP shall constitute an irrevocable clection to
rcsign l?om thc service of the city not later than the date providcd lbr in the previous
sentence. A member may participate only once.
(4)
Termination qf parlicipation.
a. A member's participation in thc DROP shall cease at the earlier of:
1. the end of his permissible pcriod of participation in thc I)ROP as
determined under subsection (b)(3); or
termination of his employment as a police officer.
Upon the member's termination of participation in the DROP, pursuant to
subsection I above, all amounts provided for in subsection (c)(2), including
monthly benefits and investment earnings and losses, shall ceasc to be
transfcrred from thc system to his DROP account. Any amounts remaining
in his DROP account shall be paid to him in accordance with thc provisions
of subsection (d) when he terminates his employment as a police officcr.
37
(5)
(c)
(1)
(2)
Co
A member who terminates his participation in the DROP under this
subsection (b)(4) shall not be permitted to again become a participant in the
DROP.
Effect of DROP participation on the syxtem.
A member's credited service and his accrued benefit under the system shall
be determined on the date his election to participate in the DROP first
becomes effective. For proposes of determining the accrued benefit, the
member's base pay for the purposes of calculating his average final
compensation shall include an amount equal to any lump sum payments
which would have been paid to the mcmber and included as base pay as
defined herein, had the member retired under normal retirement and not
elected DROP participation. Member contributions attributable to any lump
sums used in the benefit calculation and not actually received by the member
shall be deducted from the first payments to tbc member's DROP account.
The member shall not accrue any additional credited service or any additional
benefits under the system (except lbr any additional benefits provided under
any cost-of-living adjustmcnt for retirees in the system) while he is a
participant in the DROP. After a member commences participation, he shall
not be permitted to again contribute to the system nor shall he be eligible for
disability or pre-retirement death benefits, except as provided for in section
2-275, Reemployment after retirement.
No amounts shall bc paid to a mcmbcr l?om thc system while the member is
a participant in the DROP. Unless otherwise specified in the system, ifa
member's participation in the DROP is terminated other than by terminating
his employment as a police officer, no amounts shall be paid to him l¥om the
system until he terminates his emph)ymcnt as a police officer. Unless
otherwise specified in the system, amounts transl~rrcd flora the system to the
member's DROP account shall bc paid directly to the member only on the
termination of his e~nployment as a police officer.
Funding.
Extablishment qfDROP account. A DROP account shall bc established for each
member participating in the DROP. A member's I)ROP account shall consist of
amounts transferred to the DROP ureter subsection (c)(2), and earnings on those
amounts.
Tranxferx from retirement .s3,stem.
As of the first day of each momh ora member's period of participation m thc
DROP, thc mnnthly retirement bcncfi! hc would have received nnder the
system had he terminated his employmem as a police officer and elected to
receive monthly benefit payments Ihcrcundcr shall be lransfcrred to his
DROP account, except as otherwise provided for in subsection (b)(4)b. A
member's period of participation m thc I)ROP shall bc determined m
accordance with the provisions of subsections (b)(3) anti (b)(4), but m no
event shall it continue past the date he terminalcs his cmptoymcm as a police
officer.
38
(d)
Except as otherwise provided in subsection (b)(4)b., a member's DROP
account under this subsection (c)(2) shall be debited or credited after each
fiscal year quarter with earnings, determined as follows:
The average daily balance in a member's DROP account shall be
credited or debited at a rate equal to the net investment return realized
by the system for that quarter. "Net investment return" for thc
purpose of this paragraph is the total return of the assets in which the
member's DROP account is invested by the board net of brokerage
commissions, transaction costs and management fees.
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 thc DROP lbr thc permissible
period of DROP participation, then beginning with the member's I 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 transferred to thc DROP
account. Ail such non-transferred amounts shall be forfeited and continue to
be forfeited while the member is employed by the police department. A
member employed by thc police department after the permissible period of
DROP participation will still not be eligible for pre-retirement death or
disability benefits, and he will accrue additional credited service only as
provided for in section 2-275.
Distribution t?f l)ROP accounts on termination (?f 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 police officer. Except as provided in subsection (d)(5), no amounts
shall be paid.to a member from the DROP prior Io his termination of employment as
a police officcr.
(2) Form of dtstribution.
Unless the member elects otherwise, distribution of his DROP account shall
be made in a lump sum, subject to thc dirccl rollover provisions set lbrth in
subsection (d)(6). A member ~nay elect, however, in such time and manner
as the board shall prescribe, that his DROP distribution be used to pnrchase
a nonlbrfeitablc 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 thc board shall dctcmmie.
Ifa member dies before his benefit is paid, his DROP account shall bc paid
to his beneficiary in such optional lbrm as his beneficiary may selecL If no
beneficiary designation is made, the I)ROP account shall be distribmed to the
member's cstale.
39
(3) Date of payment of dixtribution.
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 election, on forms designated by the Board, to either
receive a cash lump sum or a rollovcr of the lump sum amount.
(4)
(6)
(c)
(1)
(2)
Proof p[ death and right of beneficiary or other person. The board ~nay require and
rely upon such proof of death and such evidence of the right of any beneficiary or
other person to receive the value ora deceased member's DROP account as the board
may deem proper and its determination of the right of that beneficiary or other person
to receive payment shall be conclusive.
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 pfcertain distributions. This subsection applies to distributions made
on or after January 1, 2002. Notwithstanding any provision of thc DROP to the
contrary, a distributee may elect to have any portion of an eligible rollovcr
distribution paid in a direct roIlover as otherwise provided under the system in
section 2-271.
Administration of DROP.
Board administers the DROP. The general administration of the DROP, thc
responsibility for carrying out the provisions of the DROP and the responsibility of
overseeing the investment of the DROP's assets shall be placed in the board. 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 dccm desirable [hr the conduct of their affairs; may authorize ()ne
or more of their ntunber or any agent to execute or dclivcr 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 carrying
out the provisions of the DROP; and may allocate among themselves or delegate to
other persons all or such portion of their duties under the DROP, other titan those
granted to them as trustee under any trust agreement adopted ibr use in implemcntiog
the DROP, as they, in their sole discretion, shall decide. A trustee shall not vote on
any question rclating exclusively to himself.
Individual accounts, records and reports. The board shall maintain records showing
the operation and condition of the DROP, including records showing thc individual
balances in each member's DROP account, and lhe board shall keep in convenient
form such data as may bc necessary for the valuation of thc assets and liabilities of
thc DROP. Thc board shall prepare and distribute to members participating in thc
DROP and other individuals or file with the appropriate govcrmncntal agencies, as
4O
(3)
the case may be, all necessary descriptions, reports, information returns, and data
required to be distributed or filed for the DROP pursuant to the Code and any other
applicable laws.
Establishment of rules. Subject to the limitations of the DROP, the board from time
to time shall establish roles for the administration of the DROP and the transaction
of its business. The board shall have discretionary authority to construe and interpret
the DROP (including but not limited to determination of an individual's eligibility for
DROP participation, the fight and amount of any benefit payable under the DROP
and the date on which any individual ceases to be a participant in the DROP). The
determination of the board as to the interpretation of the DROP or its determination
of any disputed questions shall be conclusive and final to thc extent permitted by
applicable law.
(4) Limitation of liability.
(1)
(2)
(3)
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 oftbc DROP.
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, bnt 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 faitb
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.
Amendment of DROP. Thc DROP may be amended by an ordinance of the city at
any time and from time to time, and retroactively if deemed necessary or appropriale,
to amend in whole or in part any or all of the provisions of thc DROP. ltowevcr,
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 thc DROP account
of any member.
Facilit)' c?/'pco.'ment. If a member or other person entitled to a bcnefit under thc
DROP is unable to care lbr his aflairs because of illness or accident or is a minor, the
board shall direct that any benefit due him shall be made only lo a duly appointcd
legal representative. Any payment so made shall be a complete discharge of the
liabilities of the DROP for that benefit.
b~formation. 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 filc with
the board the inlbrmation that it sball require to establish his rights and bcncfits
under the DROP.
41
(4)
(7)
(8)
Prevention ~fescheat. 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 date such pay~nent is due, mail a notice of such due and owing
payment to the last known address of such person, as shown on the records of the
board or the city. lfsuch person has not made written claim therefor within three (3)
months of the date of the mailing, the board may, if it so elects and upon receiving
advice frmn counsel to the DROP, direct that such payment and all remaining
payments otherwise due such person be canceled on the records of the DROP. Upon
such cancellation, the DROP shall have no further liability therefor except that, in the
event such person or his beneficiary later notifies the board of his whereabouts and
requests the payment or payments due to him under the DROP, the amount so applied
shall bc paid to him in accordance with the provisions of the DROP.
Written elections, notification.
Any elections, notifications or designations made by a mmnbcr 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 roles 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 ad~ninistration
of the DROP. in the event of a conflict between the provisions for making
an election, notification or designation set lbrth in the DROP and such new
ad~ninistrative procedures, those new administrative procedures shall prevail.
Each member or Retiree who has a DROP account shall bc responsible for
fi~rnishing 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 ccrtified United Statcs 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.
Benq/itx not guaranteed. All benefits payable to a member from the DROP shall bc
paid only from the assets of the member's DROP account and neither the city nor lhc
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.
('rmstrur'lion
The DROP shall be construed, regulated and administered under the laws of
Florida, except where other applicable law controls.
Thc titles and headings of thc subsections in this section 2-276 arc for
convenience only. In the case of ambiguity or inconsistency, the text rather
than the titles or headings shall control.
]"o~.'/t, tlure O['t-etirement benc/itx. Nothing in this section shall bc construed to
rcmovc I)ROP participants from thc application of any lbrfcimrc provismns
42
applicable to the system. DROP participants shall be sul~ject to forfeiture of all
retirement benefits, including DROP benefits.
(9)
Effect of DROP participation on employment. Participation in thc DROP is not a
guarantee of employment and DROP participants shall be subject to the same
employment standards and policies that are applicable to employees who are not
DROP participants.
Secs. 2-277-2-280. Reserved.
A l B\san~pol\09-06 -06.or d.CLN
43