4505 Amending Police OfficersRetirement SystemOrdinance No. 2019- 4505
An Ordinance of the City of Sanford, Florida, Amending Chapter 66,
pensions and retirement, Article 11, police officers' retirement system of
the Code of Ordinances of the City of Sanford; amending section 66-36,
benefit amounts and eligibility, subsection (c), pre -retirement death and
subsection(d), disability; amending section 66-39, miscellaneous
provisions; amending section 66-45, reemployment after retirement;
amending section 66-46, deferred retirement option plan; providing for
legislative findings and intent; providing for conflicts; providing for a
savings provision; providing for codification; providing for severability
and providing for an effective date.
Be it Enacted by the People of the City of Sanford, Florida:
Section 1. Legislative findings and intent.
(a). The City Commission of the City of Sanford hereby adopts and incorporates
into this Ordinance the City staff report and City Commission agenda memorandum
relating to this ordinance.
(b). The City of Sanford has complied with all requirements and procedures of
Florida law in processing and advertising this Ordinance.
Section 2. Police Officers' Retirement System. Chapter 66, Article 11, Code of
Ordinances of the City of Sanford, is hereby amended to read as follows by amending
Section 66-36, Benefit Amounts and Eligibility, subsection (c), Pre -Retirement, subsection
(c)(2)a., b., and c., and subsections (c)(3)a., b., and c.:
(c)(2) a. If the member was vested, but not eligible for normal or early
retirement, and the member's death did not result directly from an
occurrence arising in the performance of duty, the spouse beneficiary
shall receive a benefit payable for ten (10) years, beginning on the
date that the deceased member would have been eligible for early or
normal retirement, or an actuarially equivalent benefit payable for the
spouse beneficiarV's lifetime at the option of the spouse 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. The spouse beneficiary may also elect to receive an
immediate benefit, payable for ten (10) years or a lifetime benefit,
which is actuarially reduced to reflect the commencement of benefits
prior to the early retirement date.
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses to theiginal text and strikethrough shall constitute
deletions to the original text.
b. If the deceased member was eligible for normal or early retirement,
the spouse beneficiary shall receive a benefit payable for ten (10)
years, beginning on the first day of the month following the member's
death or at the deceased member's otherwise early or normal
retirement date, or an actuarially equivalent benefit payable for the
spouse beneficiary's lifetime at the option of the spouse 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.
C. In any event, if the member's death is caused by the performance of
his duties as a police officer (in line of duty), the spouse beneficiary
shall receive a benefit payable for ten (10) years or an actuarially
equivalent benefit payable for the spouse beneficiary's lifetime,
beginning on the first day of the month following the member's death.
The benefit shall be calculated as for normal retirement (unreduced)
based on the deceased member's credited service and average final
compensation as of the date of death. The minimum benefit shall be
forty (40) percent of average final compensation. The presumptions
in subsection (d)(2) of this section shall apply in determining whether
a death was in line of duty.
***
(c)(3) a. If the member was vested, but not eligible for normal or early
retirement and the member's death did not result directly from an
occurrence arising in the performance of duty, the beneficiary will
receive a benefit payable for ten (10) years or an actuarially
equivalent benefit payable for the beneficiary's lifetime. The benefit
will begin by December 31 of the calendar year immediately following
the calendar year in which the member died. The benefit will be
calculated as for normal retirement based on the deceased member's
credited service and average final compensation and actuarially
reduced to reflect the commencement of benefits prior to the normal
retirement date.
b. If the deceased member was eligible for normal or early retirement,
the beneficiary will receive a benefit payable for ten (10) years or an
actuarially equivalent benefit payable for the beneficiary's lifetime,
beginning on the first day of the month following the member's death.
The benefit will 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 for early retirement, if
applicable.
C. In any event, if the member's death is caused by the performance of
his duties as a police officer (in line of duty), the beneficiary shall
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses to tie original text and strikethrough shall constitute
deletions to the original text.
2
receive a benefit payable for ten (10) years or an actuarially
equivalent benefit payable for the beneficiary's lifetime, beginning on
the first day of the month following the member's death. The benefit
shall be calculated as for normal retirement (unreduced) based on the
deceased member's credited service and average final compensation
as of the date of death. The minimum benefit shall be forty (40)
percent of average final compensation. The presumptions in
subsection (d)(2) of this section shall apply in determining whether a
death was in line of duty.
***
Section 3. Police Officers' Retirement System. Chapter 66, Article II, Code of
Ordinances of the City of Sanford, is hereby amended to read as follows by amending
Section 66-36, Benefit Amounts and Eligibility, subsection (d), Disability, subsection (d)(1),
Disability Benefits On -Duty, subsection (d)(3), Disability Benefits Off -Duty, subsection
(d)(7), Workers' Compensation, and by adding subsection (d)(8), Eligibility for Disability
Benefits:
(d)(1) Disability benefits on -duty. Any member who shall become totally and
permanently disabled to the extent that he or she 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 the board, be entitled to a monthly pension equal to
three and fifty -hundredths percent of base pay at the date of disability for
each year of credited service prior to October 1, 2017 and three percent of
base paV, for each year of credited service after
October 1, 2017, but in any event the minimum amount to be paid to the
member shall be equal to 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 be 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 the police officer, the minimum amount paid to the member shall be 80
percent of the average final compensation of the member. Terminated
fog-abGvp Eliaibilitv reauirements for disability benefits are set forth in
***
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses to tHe original text and strikethrough shall constitute
deletions to the original text.
3
(d)(3) Disability benefits off-duty. Any member with five years or more credited
service who shall become totally and permanently disabled to the extent that
he or she is unable, by reason of a medically determinable physical or
mental impairment, to render useful and efficient service as a police officer,
which disability is not directly caused by the performance of his or her duties
as a police officer shall, upon establishing the same to 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 prior to October 1, 2017 and three percent of av ref— i
seMpensatioe base pay, for each year of credited service after October 1,
2017. Terminated oither vested nr nE)n vested aro not eligible
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disabilitv benefits are set forth in subsection (d)(8), below.
(d)(7) Workers' compensation. When a retiree is receiving a disability pension and
workers' compensation benefits pursuant to F.S. ch. 440 and/or any other
disability benefit provided by the city, for the same disability, and the total
monthly benefits received from all sources exceeds one hundred (100)
percent of the member's average monthly wage, as defined in F.S. ch. 440,
the disability pension benefit shall be reduced so that the total monthly
amount received by the retiree does not exceed 100 percent of average
monthly wage. The amount of any lump sum workers' compensation
payment shall be converted to an equivalent monthly benefit payable for ten
years certain by dividing the lump sum amount by 83.9692. Notwithstanding
the foregoing, in no event shall the disability pension benefit be reduced
below the greater of 42 percent of average final compensation or two and
three-quarters percent of average final compensation times years of credited
service.
(d)(8) Eligibility for Disability Benefits. Subject to (8)d. below, only active members
of the system on the date the board determines entitlement to a disability
benefit are eligible for disability benefits.
a. Terminated persons either vested or non -vested, are not eligible for
b. If a member voluntarily terminates his employment, either before or
after filina an application for disability benefits, he is not eligible for
C. If a member is terminated
or aver ne
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other than
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses to te —original text and strikethroatgh shall constitute
deletions to the original text.
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d. The only exception to a., above is:
1. If the member is terminated by the City for medical reasons
and he has alreadv applied for disability benefitsbefore the
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2. If the member is terminated by the City for medical
If either d.1., or d.2., above applies, the member's a
Section 4. Police Officers' Retirement System. Chapter 66, Article II, Code of
Ordinances of the City of Sanford, is hereby amended to read as follows by amending
Section 66-39, Miscellaneous Provisions to add subsection (13), Missing Benefit
Recipients:
Missing Benefit Recipients. The System shall tollow the procedures
in the IRS Employee Plans Compliance Resolution System (1
Proaram and other applicable IRS guidance to locate any missing ini
conclusion
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cancellina oavments otherwise due (provided that, it the individual is later
Section 5. Police Officers' Retirement System. Chapter 66, Article Il, Code of
Ordinances of the City of Sanford, is hereby amended to read as follows by adding Section
66-45, Reemployment After Retirement:
Sec. 66-45. Reemployment after retirement.
(1) Any retiree under this system, wnopt for disability retirement as proving sly
previdedfer-F-may be reemployed by any public or private employer, eXGe t the +,,, and
may receive compensation from that employment without limiting or restricting in any way
the retirement benefits payable under this system. Notwithstanding the previous sentence,
reemployment by the city shall be subject to the limitations set forth in this section.
(2) After norma/ retirement. Any retiree who is retired under normal (or early)
retirement pursuant to this system and who is reemployed as a police officer any vide
is ineligible to participate in this system, and his benefit shall, upon
being reemployed, be discontinued diSGGRtiRue FeGeipt of benefits and benefit payments
shall remain suspended during any such subsequent employment period. Rehired retirees
shall become members of the Florida Retirement_ System. Upon Feempleyment, t
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses tot e original text and strikethrough shall constitute
deletions to the original text.
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(3) Any retiree who is retired under normal retirement pursuant to this system
who is reemployed by the city in a position other than as a police officer, shall upon being
reemployed, continue receipt of benefits for the period of any subsequent employment
period.
(4) After early retirement. Any retiree who is retired under early retirement
pursuant to this system and who subsequently becomes an employee of the city in any
capacity, shall discontinue receipt of benefits from the system. If the reemployed person is
reemnloved as a police officer. he shall become a member of the Florida Retirement
benefit as provided for in subseGtion (2) above and benefit payments
shall remain suspended during any such subsequent employment period. If the
reemployed person is not reemployed as a police officer eligible tG paFtiGipate in this
sys-tern, that person's pension benefit payments shall be suspended until the earlier of
termination of employment or such time as the reemployed retiree reaches the date that he
would have been eligible for normal retirement under this system had he continued
employment and not elected early retirement. "Normal retirement" as used in this
subsection shall be the current normal retirement date provided for under this system.
After disability retirement.
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deletions to the original text.
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(c) If a disability retiree is reemployed as a police officer
disabilitv benefit shall cease. Section 66-36(d)(5) shall
a member OT Tne
(5 6) Reemployment of terminated vested persons. Reemployed terminated
vested persons shall not be subject to the provisions of this section until such time as they
begin to actually receive benefits. Upon receipt of benefits, terminated vested persons shall
be treated as normal or early retirees for purposes of applying the provisions of this section
and their status as an early or normal retiree shall be determined by the date they elect to
begin to receive their benefit.
(6 7) DROP participants. MembeFs ^r Retirees who are er were in the deferred
retirement option plan shall, following termination of employment after DROP participation,
have the options provided for in this section for reemployment.
Section 6. Police Officers' Retirement System. Chapter 66, Article II, Code of
Ordinances of the City of Sanford, is hereby amended to read as follows by adding Section
66-46, Deferred Retirement Option Plan, subsections (f)(8) through (f)(13):
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(6 8) Written elections, notification.
a. Any elections, notifications or designations made by a member
pursuant to the provisions of the DROP shall be made in writing and
filed with the board in a time and manner determined by the board
under rules uniformly applicable to all employees similarly situated.
The board reserves the right to change from time to time the manner
for making notifications, elections or designations by members under
the DROP if it determines after due deliberation that such action is
justified in that it improves the administration of the DROP. In the
event of a conflict between the provisions for making an election,
notification or designation set forth in the DROP and such new
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses t -6 --the iginal text and strikethrough shall constitute
deletions to the original text.
0
administrative procedures, those new administrative procedures shall
prevail.
b. Each member or retiree who has a DROP account shall be
responsible for furnishing the board with his current address and any
subsequent changes in his address. Any notice required to be given
to a member or retiree hereunder shall be deemed given if directed to
him at the last such address given to the board and mailed by
registered or certified United States mail. If any check mailed by
registered or certified United States mail to such address is returned,
mailing of checks will be suspended until such time as the member or
retiree notifies the board of his address.
(40 9) Benefits not guaranteed. All benefits payable to a member from the DROP
shall be paid only from the assets of the member's DROP account and
neither the city nor the board shall have any duty or liability to furnish the
DROP with any funds, securities or other assets except to the extent required
by any applicable law.
(44 10) Construction.
a. The DROP shall be construed, regulated and administered under the
laws of Florida, except where other applicable law controls.
b. The titles and headings of the subsections in this section 66-46 are
for convenience only. In the case of ambiguity or inconsistency, the
text rather than the titles or headings shall control.
(4-2 11) Forfeiture of retirement benefits. Nothing in this section shall be construed to
remove DROP participants from the application of any forfeiture provisions
applicable to the system. DROP participants shall be subject to forfeiture of
all retirement benefits, including DROP benefits.
(4-3 12) Effect of DROP participation on employment. Participation in the DROP is
not a guarantee of employment and DROP participants shall be subject to
the same employment standards and policies that are applicable to
employees who are not DROP participants.
Section 7. Savings. The prior actions of the City of Sanford relating to the
administration of the police officers' retirement system and related matter are hereby
ratified and affirmed.
Section 8. Conflicts. All Ordinances or parts of Ordinances in conflict with this
Ordinance are hereby repealed.
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses tot e original text and strikethrough shall constitute
deletions to the original text.
Section 9. Severability. If any section, sentence, phrase, word, or portion of this
ordinance is determined to be invalid, unlawful or unconstitutional, said determination shall
not be held to invalidate or impair the validity, force or effect of any other section, sentence,
phrase, word, or portion of this Ordinance not otherwise determined to be invalid, unlawful,
or unconstitutional.
Section 10. Codification. Sections 2-6 of this Ordinance shall become and be
made a part of the Code of Ordinances of the City of Sanford, Florida.
Section 11. Effective Date. This Ordinance shall become effective immediately
upon enactment by the City Commission.
Passed and Adopted this 13th day of May, A.D. 2019.
Attest:
raci Houchin, CMC, FCRM
City Clerk
Approved as to form and legal sufficiency:
e��-
, � � �' � . •- • -
City Commission of
Sanford, Florida.,
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V OR
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e City of
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses to t�iginal text and strilkethroag-h shall constitute
deletions to the original text.
9
dm/san/pol/09-17-18.ord/ rev 01-17-19
For the purposes of this Ordinance, underlined type shall constitute additions to the original
text, * * * shall constitute ellipses to ff-original text and strikethrough shall constitute
deletions to the original text.
10
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Item No. TE
CITY COMMISSION MEMORANDUM 19-116
MAY 13, 2019 AGENDA
TO: Honorable Mayor and Members of the City Commission
PREPARED BY: Cynthia Lindsay, Finance Director
SUBMITTED BY: Norton N. Bonaparte, Jr., City Manager
SUBJECT: City of Sanford Police Officers' Retirement System Proposed Ordinance
STRATEGIC PRIORITIES:
❑ Unify Downtown & the Waterfront
❑ Promote the City's Distinct Culture
❑ Update Regulatory Framework
❑ Redevelop and Revitalize Disadvantaged Communities
SYNOPSIS:
Ordinance No. 4505 has been prepared amending Sections 66-76, 66-79, 66-85, and 66-86 of the
Police Officers' Retirement System for the City Commission's consideration.
FISCALISTAFFING STATEMENT:
The Police Pension Board's actuary, Foster & Foster, Inc., advised there is no cost associated with
the adoption of this ordinance.
BACKGROUND:
At the November 1, 2018 Police Officers' Pension Board meeting, the board unanimously
recommended amending the following sections of the Police Officers' Retirement System to comply
with changes to the Internal Revenue Code and its associated Regulations, as well as guidance from
the Internal Revenue Service (IRS) and recent litigation.
• Section 66-36, Benefit Amounts and Eligibility, subsection (c), Pre -Retirement Death,
is being amended to provide for a lifetime optional form of benefit to the beneficiary of
a vested member who dies prior to retirement.
• Section 66-36, Benefit Amounts and Eligibility, subsection (d), Disability, is being
amended to:
a. Correctly indicate that the disability benefit for years of service after October 1,
2017 is based on base pay and not average final compensation; and
b. More clearly identify those individuals who may be eligible to apply for a
disability pension in the event that they have resigned or their employment is
terminated. This clarification does not change the way in which this provision has
been applied or interpreted in the past. This change is being made because the
current language has been challenged in litigation as being unclear and has
resulted in unintended application of the language. The recommended change
clarifies the language with no change in the intended application. Subsection
(d)(7), Workers' Compensation, is also being amended to clearly identify the new
minimum benefit accrual rate of 2.75%, as provided for in Chapter 185, Florida
Statutes.
Section 66-39, Miscellaneous Provisions, is being amended to add subsection (13),
Missing Benefit Recipients. This provisions is in accordance with a recent IRS Programs
Compliance Memorandum that requires plans to have an approved method for locating
terminated individuals who are due benefits from the plan.
Section 66-45, Reemployment After Retirement, is being amended to make several
changes as required by the Internal Revenue Code to satisfy the qualification requirements
applicable to the reemployment of a disability retiree. Additional changes have been made
to clarify reemployment after receipt of early retirement benefits as well as changes
necessary to reflect the plan is closed to new members.
Section 66-46, Deferred Retirement Option Plan, is being amended to remove subsection
(f)(8), Prevention of Escheat and re -number the remaining subsections. The information
contained in the subsection is being expanded in accordance with IRS guidance and moved
to a more appropriate Section of the Plan where is will apply to all benefit recipients rather
than just DROP recipients.
LEGAL REVIEW:
Ordinance No. 4505 has been prepared by the Police Officers' Pension Board attorney.
The City Commission approved the first reading of Ordinance No. 4505 on April 22, 2019.
The City Clerk published notice of the 2"a Public Hearing in the Sanford Herald on May 12, 2019.
REGOMMENDATION:
The Police Officers' Pension Board recommends the City Commission adopt Ordinance No. 4505.
SUGGESTED MOTION:
"I move to adopt Ordinance No. 2019-4505."
Attachments: Cover letter from the Law Offices of Christiansen & Dehner, P.A.
Actuarial Impact Letter from Foster & Foster Actuaries
Ordinance No. 2019-4505
okSr.,FOAp � J •
T. I FLORIDA
+r r
WS _ RM
Item No. TE
CITY COMMISSION MEMORANDUM 19-116
MAY 13, 2019 AGENDA
To: Honorable Mayor and Members of the City Commission
PREPARED BY: Cynthia Lindsay, Finance Director
SUBMITTED BY: Norton N. Bonaparte, Jr., City Manager
SUBJECT: City of Sanford Police Officers' Retirement System Proposed Ordinance
STRATEGIC PRIORITIES:
❑ Unify Downtown & the Waterfront
❑ Promote the City's Distinct Culture
❑ Update Regulatory Framework
❑ Redevelop and Revitalize Disadvantaged Communities
SYNOPSIS:
Ordinance No. 4505 has been prepared amending Sections 66-76, 66-79, 66-85, and 66-86 of the
Police Officers' Retirement System for the City Commission's consideration.
F'ISCALISTAFFING STATEMENT:
The Police Pension Board's actuary, Foster & Foster, Inc., advised there is no cost associated with
the adoption of this ordinance.
BACKGROUND:
At the November 1, 2018 Police Officers' Pension Board meeting, the board unanimously
recommended amending the following sections of the Police Officers' Retirement System to comply
with changes to the Internal Revenue Code and its associated Regulations, as well as guidance from
the Internal Revenue Service (IRS) and recent litigation.
• Section 66-36, Benefit Amounts and Eligibility, subsection (c), Pre -Retirement Death,
is being amended to provide for a lifetime optional form of benefit to the beneficiary of
a vested member who dies prior to retirement.
Section 66-36, Benefit Amounts and Eligibility, subsection (d), Disability, is being
amended to:
a. Correctly indicate that the disability benefit for years of service after October 1,
2017 is based on base pay and not average final compensation; and
b. More clearly identify those individuals who may be eligible to apply for a
disability pension in the event that they have resigned or their employment is
terminated. This clarification does not change the way in which this provision has
been applied or interpreted in the past. This change is being made because the
current language has been challenged in litigation as being unclear and has
resulted in unintended application of the language. The recommended change
clarifies the language with no change in the intended application. Subsection
(d)(7), Workers' Compensation, is also being amended to clearly identify the new
minimum benefit accrual rate of 2.75%, as provided for in Chapter 185, Florida
Statutes.
Section 66-39, Miscellaneous Provisions, is being amended to add subsection (13),
Missing Benefit Recipients. This provisions is in accordance with a recent IRS Programs
Compliance Memorandum that requires plans to have an approved method for locating
terminated individuals who are due benefits from the plan.
Section 66-45, Reemployment After Retirement, is being amended to make several
changes as required by the Internal Revenue Code to satisfy the qualification requirements
applicable to the reemployment of a disability retiree. Additional changes have been made
to clarify reemployment after receipt of early retirement benefits as well as changes
necessary to reflect the plan is closed to new members.
• Section 66-46, Deferred Retirement Option Plan, is being amended to remove subsection
(f)(8), Prevention of Escheat and re -number the remaining subsections. The information
contained in the subsection is being expanded in accordance with IRS guidance and moved
to a more appropriate Section of the Plan where is will apply to all benefit recipients rather
than just DROP recipients.
LEGAL REVIEW:
Ordinance No. 4505 has been prepared by the Police Officers' Pension Board attorney.
The City Commission approved the first reading of Ordinance No. 4505 on April 22, 2019.
The City Clerk published notice of the 2❑d Public Hearing in the Sanford Herald on May 12, 2019.
RECOMMENDATION:
The Police Officers' Pension Board recommends the City Commission adopt Ordinance No. 4505.
SUGGESTED MOTION:
"I move to adopt Ordinance No. 2019-4505."
Attachments: Cover letter from the Law Offices of Christiansen & Delmer, P.A.
Actuarial Impact Letter from Foster & Foster Actuaries
Ordinance No. 2019-4505