Loading...
3562AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE XV, POLICE OFFICERS' RETIREMENT SYSTEM; AMENDING SECTION 2-261, DEFINITIONS, TO DELETE THE DEFINITION OF "ACT" AND AMEND THE DEFINITION OF "CREDITED SERVICE"; AMENDING SECTION 2-262, MEMBERSHIP; AMENDING SECTION 2- 263, BOARD OF TRUSTEES; AMENDING SECTION 2-264, FINANCES AND FUND MANAGEMENT; AMENDING SECTION 2-265, CONTRIBUTIONS; AMENDING SECTION 2-266, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 2-267, OPTIONAL FORMS OF BENEFITS; PROVIDING FOR SEVERABILITY OF PROVISIONS, REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. WHEREAS, it is the desire of the Sanford City Commission to amend the Police Officers' Retirement System to comply with the recent amendments to Chapter 185, Horida Statutes. NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA: SECTION 1: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford enti~ed Police Officers' Retirement System, is hereby amended by amending Section 2-261, Definitions, to delete the definition of "Act" and amend the definition of "Credited Service", to read as follows: Credited service means the total number of years and fractional parts of years of service as a police officer with member contributions when required, omitting intervening years or fractional parts of years when such member was not employed by the city as a police officer. A member may voluntarily leave his accumulated contributions in the fund for a period of five (5) years after leaving the employ of the police department pending the possibility of being reemployed as a police officer, without losing credit for the time that he was a member of the system. If a vested member leaves the employ of the police department, his accumulated Ordinance No. Page 1 contributions will be returned only upon his written request. If a member who is not vested is not reemployed as a police officer with the police department within five (5) years, his accumulated contributions shall be retumed. Upon return of a member's accumuhted 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a police officer shall not receive credit for the years and fractional parts of years of service for which he has withdrawn his accumulated contributions from the fund, unless the police officer repays into the fund the contributions he has withdrawn, 'with interest, as determined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 injuries sustained while acting as a police officer for the city, up to the time maximum medical improvement is reached, as determined in accordance with the Florida Workers' Compensation 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 or the United States Coast Guard, voluntarily or involuntarily, after separation from employment as a police officer with the city to perform trig or service, shall be added to his years of credited service for all purposes, including vesting, provided that: (a) The member must return to 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) The member is entitled to reemployment under the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), (P.L.103- 353). (c) The maximum credit for military service pursuant to this paragraph shall be five (5) years. Ordinance No. Page 2 SECTION 2: That Chapter 2, AdministratiOn, Article XV of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 2-262, Membership, subsection 2, Beneficiaries, to read as follows: (2) Beneficiaries. (a) Each member or retiree may, on a form provided for 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 designation-of-beneficiary form. Upon such change, the rights of all previously designated beneficiaries to receive any benefits under the system shall cease. (b) If a deceased member or retiree failed to name a beneficiary in the manner prescribed in subsection (a) , or if the beneficiary (or beneficiaries) named by a deceased member or retiree predeceases the member or retiree, the death benefit, ff any, which may be payable under the system with respect to such deceased member or retiree, shall be paid to the estate of the member or retiree · and the board, in its discretion, may direct that the commuted value of the remaining monthly income benefits be paid in a lump sum. (c) Any payment made to any person pursuant to this section shall operate as a complete discharge of all obligations under the system with regard to the deceased member and any other persons with rights under the system and shall not be subject to review by anyone but shall be final, binding and conclusive on all persons ever interested hereunder. SECTION 3: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford enti~ed Police Officers' Retirement System, is hereby amended by amending Section 2-263, Board of trustees, subsections (4), Accounting, expenses, etc., and (5)(k), Ordinance No. Page 3 Reports to division of retirement, deleting subsection (7), Board attorney and professionals, and to renumber the remaining subsection (8), Indemnification, as subsection (7), as follows: (4) Accounting; expenses, etc. The board shall engage such actuarial, accounting, legal, and other services as shall be required to transact the business of the system. The compensation of all persons engaged by the board and all other expenses of the board necessary for the operation of the system shall be paid from the fund at such rates and in such amounts as the board shall agree. In the event the board chooses to use the city' s legal counsel, actuary or other professional, technical or other advisors, it shall do so only under terms and conditions acceptable to the board. (5)(k) Reports to division of retirement. Each year and no later than March 15th, the board shall file an annual report with 'the division of retirement containing the documents and information required by Section 185.221, Florida Statutes. SECTION 4: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 2-264, Finances and fund management, subsections (5), Annual audit, and (6), Investment powers and authority of board, to read as follows: (5) Annual 'audit. An audit shall be performed annually by a certified public accountant for the most recent. fiscal year of the system showing a detailed listing of assets and a statement of all income and disbursements during the year. Such income and disbursements must be reconciled with the assets at the beginning and end of the year. Such report shall reflect a complete evaluation of assets on both a cost and market basis, as well as other items normally included in a certified audit. (6) 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 ti~e to said fund, subject, however, and in any event to the authority and power of the Sanford City Commission to Ordinance No. Page 4 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 the 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 the board shall not be required to segregate or invest separately any portion of the fund. All monies paid into or held in the fund shall be invested and reinvested by the board and the investment of all or any part of such funds shall be limited to: 1. Annuity and life insurance contracts of life insurance companies in amounts sufficient to provide, in whole or in part, the benefits to which all of the members in the fund shall be enti~ed under the provisions of this system and pay the initial and subsequent premium thereon. 2. Time or savings accounts of a national bank, a state bank insured by the Bank 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 are insured by the National Credit Union Share Insurance Fund. 3. Obligations of the United States or obligations guaranteed as to principal and interest by the government of the United States or by an agency of · the government of the United States. 4. Bonds issued by the State of Israel. 5. Stocks, commingled funds administered by National or State Banks, mutual funds and bonds, or evidences of indebtedness, provided that: Ordinance No. Page 5 (c) (d) (e) a. All individually held securities and all securities 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 States, or the District of Columbia. b. Up to ten percent (10 % ) of the assets of the fund may be invested in foreign securities. c. The board shall not invest more than five (5) percent of its assets in the common stock, capital stock, or convertible securities of any one (1) issuing company, nor shall the aggregate investment in any one issuing company exceed five (5) percent of the outstanding capital stock of that company; nor shall the aggregate of its investments in common stock, capital stock and convertible securities at cost exceed fifty (50) percent of the assets of the fund. At least once every three (3) years, and more often as determined by the board, the board shall retain a professionally qualified 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. The board may retain in cash and keep unproductive of income such amount of the fund as it may deem advisable, having regard for the cash requirements of the system. Neither the board nor any trustee shall be liable for the making, retention or sale of any investment or reinvestment made as herein provided, nor for any loss or Ordinance No. Page 6 (g) diminishment of the fund, except that due to his or its own gross negligence, willful misconduct or lack of good faith. The board may cause any investment in securities held by it to be registered in or transferred into its name as trustee or into the name of such nominee as it may direct, or it may retain them unregistered and in form permitting transferability, but the books and records shall at all times show that all investments are part of the fund. The board is empowered, but is not required, to vote upon any stocks, bonds, or securities of any corporation, association, or trust and to give general or specific proxies or powers of attorney with or without power of substitufii>n; to participate in mergers, reorganizations, recapitaliTations, consolidations, and similar transactions with respect to such securities; to deposit such stock or other securities in any voting trust or any protective or like committee with the trustees or with depositories designated thereby; to amortize or fail to amortize any part or all of the premium or discount resulting from the acquisition or disposition of assets; and generally to exercise any of the powers of an owner with respect to stocks, bonds, or other investments comprising the fund which it may deem to be to the best interest of the fund to exercise. The board shall not be required to make any inventory or appraisal or report to any court, nor to secure any order of court for the exercise of any power contained herein. Where any action which the board is required to take or any duty or function which it is required to perform either under the terms herein or under the general law applicable to it as trustee, under this article, can reasonably be taken or performed only after receipt by it from a member, the city, or any other entity, of specific information, certification, direction or instructions, the board Ordinance No. Page 7 shall be free of liability in failing to take such action or perform such duty or function'until such information, certification, direction or instruction has been received by it. ' (j) Any overpayments or underpayments from the fund to a member, retiree or beneficiary caused by errors of computation shall be adjusted with interest at a rate per annum approved by the board in such a manner that the actuarial equivalent of the benefit to which the member, retiree or beneficiary was correc~y 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. (k) The board shall sustain no liability whatsoever for the sufficiency of the fund to meet the payments and benefits provided for herein. (1) In any application to or proceeding or action in the courts, only the board shall be a necessary party, and no member or other person having an interest in the fund shall be entitled to any notice or service of process. Any judgment entered in such a proceeding or action shall be conclusive upon all persons. (m) Any of the foregoing powers and functions reposed in the board may be performed or carried out by the board through duly authorized agents, provided that the board at all times maintains continuous supervision over the acts of any such agent; provided further, that legal title to said fund shall always remain in the board. SECTION 5: That Chapter 2, Administration, Article XV of the City Cede of the City of Sanford enti~ed Police Officers' Retirement System, is hereby amended by amending Section 2-265, Contributions, subsections (1), Member contributions, and (3), City contributions, to read as follows: Ordinance No. Page 8 (1) Member contributions. (a) Amount. Each member of the system shall be required to make regular contributions to the fund in the amount of five and one-tenth (5.1) percent of his gross pay. Member contributions withheld by the city on behalf of the member ~hall be deposited with the 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 the Code. Such designation is . contingent upon the contributions being excluded from the members' gross income for Federal Income Tax purposes. For all other purposes of the system, such contributions shall be considered to be member contributions. Co) Method. Such contributions shall be made by payroll deduction. (3) City contributions. So long as this system is in effect, the city shall make contributions'to the fund in an amount equal to the difference in each year, between the total aggregate member contributions for the year, plus state contributions for such year, and the total 'cost for the year, as shown by the most recent actuarial valuation of the system, but in no event shall the city 's annual contribution be less than ten (10) percent of the total base pay of members for funding benefits provided for herein, including that in section 2-266(e)(4). Such annual requirement shall be funded in quarterly installments. The total cost for any year shall be deemed as the total normal cost plus the additional amount sufficient to amortize the unfunded past service liability as provided in Part VII of Chapter 112, Florida Statutes. SECTION 6: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 2-266, Benefit amounts and eligibility, subsections (d)(4), Conditions disqualifying disability benefits, (d)(6), Disability payments, (d)(7), Workers' compensation, (e), Vesting, and (f)(9), Additional limitation on pension benefits, and adding subsection (i) , Conviction and forfeiture; false, misleading or fraudulent statements, to read as follows: Ordinance No. Page 9 (d)(4) Conditions disqualifying disability benefits. Each member who is claiming disability benefits shall establish, to the satisfaction of the board, that such disability was not occasioned primarily by: a. Excessive or habitual use of any drugs, intoxicants or narcotics. b. Injury or disease sustained while willfully and illegally participating in fights, riots or civil insurrections or while committing a crime. c. Injury or disease sustained while serving in any branch of the Armed Forces. d. Injury or disease sustained after his employment as a police officer with the City of Sanford shall have terminated. e. Injury or disease sustained by the member while working for anyone other than the city and arising out of such employment. (d)(6) Disability payments. The monthly benefit to which a member is enti~ed in the event of the member' s disability retirement shall be payable on the first day of the first month after the board determines such enti~ement. However, the monthly retirement income shall be payable as of the date the board determined such enti~ement, and any portion due for a partial month shall be paid together with the first payment. The last payment will be: a. If the retiree recovers from the disability prior to his normal retirement date, the payment due next preceding the date of such recovery, or b. 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 form of benefit payment as described in section 2-267, subsection (1)(a) or (1)Co), which shah be the actuarial equivalent of the normal form of benefit. Ordinance No. Page 10 (d)(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 the city, for the same disability, and the total monthly benefits received from all sources exceeds one hundred (100) percent of the member' s average monthly wage, as defined in Chapter 440, Florida Statutes, the disability pension benefit shall be reduced so that the total monthly amount received by the retiree does not exceed one hundred (100) percent of average monthly wage. The amount of any lump sum workers' compensation payment shall be converted to an equivalent monthly benefit payable for ten (10) years certain by dividing the lump sum amount by 83.9692. Notwithstanding the foregoing, in no event shall the disability pension benefit be reduced below the greater of forty-two percent (42 % ) of average final compensation and two percent (2 % ) of average final compensation times years of credited service. (e) Vesting. If a member terminates his employment as a police officer, either voluntarily or by discharge, and is not eligible for any other benefits under this system, the member shall be enti~ed to the following: (1) If the member has less than ten (10) years credited service upon termination, the member shall be enti~ed to a refund of his accumulated contributions, or the member may leave it deposited with the fund. (2) If the terminated member has ten (10) or more years of credited service upon termination, the member shall be en~~ed to a monthly retirement benefit, determined in the same manner as for normal or early retirement and based upon the member' s credited service, average final compensation and the benefit accrual rate as of the date of termination, payable to him commencing at member' s otherwise normal or early retirement date, determined as if he had remained employed, provided he does not elect to withdraw his accumulated contributions, and provided member survives to his otherwise early or normal retirement date. In the event that the member does not does not survive to his otherwise early or normal Ordinance No. Page 11 retirement date, the member's beneficiary shall receive the member's accumulated contributions. (3) Any vested member of the system whose position is terminated, for whatever reason, but who remains employed by the city in some other capacity, shall have all retirement benefits accrued up to the date of such termination under this system preserved, provided he does not elect to withdraw his accumulated contributions from this system. Such accrued retirement benefits shall be payable at his otherwise early (reduced as for early retirement) or normal retirement date hereunder, or later, in accordance with the provisions of this system. (4) In the event a member elects to receive his accumulated contributions in lieu of any benefits hereunder, he shall also receive 'an additional lump-sum amount equal to five (5) percent of the member' s base pay for all years of credited service since October 1, 1976. (f)(9) Additional limitation on pension benefits. Notwithstanding anything herein to the contrary: a. The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in such system, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. However, nothing contained in this subsection shall apply to supplemental retirement benefits or to pension increases attributable to cost-of-living increases or adjustments. b. No member of the system shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the future, a retirement benefit or pension from a different employer's retirement system or plan. This restriction does not apply to social Ordinance No. Page 12 security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. (i) Conviction and forfeiture; false, misleading or fraudulent statements. (1) 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 of a plea or trial, regardless of whether adjudication is withheld. SECTION 7: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford en~~ed Police Officers' Retirement System, is hereby mended by mending Section 2-267, Optional forms of benefits, to read as follows: Sec. 2-267. Optional forms of benefits. (1) In lieu of the mount and form of retirement income payable in the event of normal or early retirement as specified herein, a member, upon written request to the board, may elect to receive a retirement income or benefit of equivalent actuaxial value payable in accordance with one of the following options: (a) A retirement income of a monthly mount payable to the retiree for his lifetime only. Ordinance No. Page 13 (b) A retirement income of a modified monthly amount, payable to the retiree during 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 the retiree's joint pensioner is his spouse; the present value of payments to the retiree shall not be less than fifty percent (50 % ) of the total present value of payments to the retiree and his joint pensioner. (c) If a member retires prior to the 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 be assumed to commence and a reduced benefit thereafter in order to provide, to as great an extent as possible, a more level retirement allowance during the entire period of retirement. The mounts 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 the joint pensioner (subsection (1)(b) above) or beneficiary (or beneficiaries) to receive the benefit, ff any, payable under the system in the event of member' s death, and will have the power to change such designation from lime 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. If a member has elected an option with a joint pensioner and the member'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. Ordinance No. Page 14 (3) The consent of a member's or retiree's joint pensioner or beneficiary to any such change shall not be required. The rights of all previously designated beneficiaries to receive benefits under the system shall thereupon cease. (4) Upon change of a retiree's joint pensioner in accordance with this section, the amount of the retirement income payable to the retiree shall be actuarially redetermined to take into account the age of the former joint pensioner, the new joint pensioner and the retiree and to ensure that the benefit paid is the actuarial equivalent of the present value of the retiree's then-current benefit at the time of the change. Any such retiree shall pay the actuarial recalculation expenses. Each request for a change will be made in writing on a form prepared by the board and on completion will be filed with the board. In the event that no designated beneficiary survives the retiree, such benefits as are payable in the event of the death of the retiree subsequent to his retirement shall be paid as provided in section 2-262(2). (5) Retirement income payments shall be made 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 first occurs, no retirement benefit will be payable under the option to any person, but the benefits, if any, will be determined under section 2-266(c). (b) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the member's retirement under the system, the option elected will be canceled automatically and a retirement income of the normal form and amount will be payable to the member upon his retirement as if the election had not been made, unless a new election is made in accordance with the 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 beneficiaries) designated by member or retiree die before the full payment has been effected under any option providing for payments for a period certain and life thereafter, made pursuant Ordinance No. Page 15 to the provisions of subsection (1), the board may, in its discretion, direct that the commuted value of the remaining payments be paid in a lump sum and in accordance with section 2-262(2). (d) If a member continues 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 retiree may not change his retirement option after the date of cashing or depositing his first retirement check. ('7) Notwithstanding anything herein to the contrary, the board in its discretion, may elect to make a lump sum payment to a member or a member's beneficiary in the event that the monthly benefit amount is less than one hundred dollars ($100.00) or the total commuted value of the remaining monthly income payments to be paid do not exceed five thousand dollars ($5,000.00). Any such payment made to any person pursuant to the power and discretion conferred upon 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 subject to review by anyone, but shall be final, binding and conclusive on all persons. SECTION 8: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 9: If any section, subsection, sentence, clause, phrase of this ordinance, or the particular application thereof shall be held invalid by any court, administrative agency, or other body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. Ordinance No. Page 16 SECTION 10: That this Ordinance shall become effective retroactively to December 31, 1999. PASSED AND ADOPTED this day of ~/~/~ , A.D. 2000. ATTEST: - As the City Commission of the City of Sanford, Florida CERTIFICATE I, Janet R. Dougherty, City Clerk of the City of Sanford, Florida, do hereby certify that a tree and correct copy of the foregoing Ordinance No35'd~ , P .~.ED A ADOPTED by the City Commission of the City of Sanford, Florida, on th As ~e~k of~h~anford, Florida bm\san\p_oi\O!-l:O.~.~ln Ordinance No. Page 17