3279 ORDINANCE NO. 3279
"AN ORDINANCE.OF THE CITY COMMISSION OF THE
CITY OF SANFORD, FLORIDA, ENACTING INTO LAW
THE CITY OF SANFORD GENERAL EMPLOYEES PENSION
PLAN TO COVER ALL REGULAR GENERAL EMPLOYEES
WHOSE POSITIONS ARE REFLECTED IN THE
AUTHORIZED POSITIONS SECTION OF THE CITY OF
SANFORD'S CLASSIFICATION AND PAY PLAN AND
ELECTED OFFICERS WHOARE HIRED, OR ELECTED, BY
THE CITY OF SANFORD ON OR AFTER JANUARY 1,
1996; ALL GENERAL EMPLOYEES AND FIREFIGHTERS
WHO ARE HIRED BY THE SANFORD AIRPORT
AUTHORITY, A DEPENDENT SPECIAL DISTRICT ON OR
AFTER JANUARY 1,1996; PROVIDING A SAVINGS
CLAUSE; PROVIDING DEFINITIONS, BENEFITS AND
ELIGIBILITY; PROVIDING FOR ADMINISTRATION,
FINANCES AND FUND MANAGEMENT; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND AMENDING
ARTICLE X, SECTION 2-155 THROUGH 2-161 OF THE
CODE OF ORDINANCES; PROVIDING FOR CODIFICATION
IN THE CODE OF ORDINANCES; AND PROVIDING FOR
AN EFFECTIVE DATE."
WHEREAS: The City Commission of the City of Sanford, Florida
desires to opt out of the Florida Retirement System, and
NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF
SANFORD, FLORIDA, as follows:
That this Ordinance be adopted to read as follows:
SECTION 1. DEFINITIONS.
As used herein, unless otherwise defined or required by the
context, the following words and phrases shall have the meaning
indicated:
1. Actuarial Equivalence - means a form of benefit differing
in time, period, or manner of payment from a specific benefit
provided hereunder but having the same value when computed using
the 1983 Group Annuity Mortality Table and eight percent (81)
interest.
2. Agreement - means this written instrument setting forth
the provisions of the Pension Plan.
3. Average Final Compensation - means one-twelfth (1/12th) of
the arithmetic average of Salary for the highest five (5) years of
salary paid during covered employment. For those Members who are
employed for fewer than five years, Average Final Compensation
shall be the arithmetic average of salary during the total months
of employment.
4. Beneficiary - means the person or persons designated to
receive benefits hereunder at the post-retirement death of a Member
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who has been designated in writing by the Member and filed with the
Board. If no person so designated is living at that time, the
Beneficiary, if applicable, shall be the estate of the Member.
5. Board means the Board of Trustees, which shall
administer and manage the Plan herein provided and serve as
Trustees of the Fund.
6. City - means City of Sanford, Florida.
7. Credited Service means the total number of years and
fractional parts of years of service with the City as a General
Employee, but omitting intervening years and completed months when
such General Employee was not employed by the City. "Fractional
parts of years" shall mean a fraction whose numerator is the number
of completed days and whose denominator is 365.
Members whose service is interrupted by active military
service with the U. S. Armed Forces will receive benefit
credit for up to four such years of active military service
provided:
A. the Member is entitled to reemployment under the
provisions of the Veterans, Reemployment Rights Act,
B. the Member was employed by the City as a General
Employee immediately prior to the commencement of active military
service, and
C. the Member applies for reemployment with the City as
a General Employee within 90 days of discharge from active military
service.
8. Joint Annuitant - means a Spouse, dependent child, or any
person receiving 50% or more of their support from the Member or is
eligible to be claimed as a dependent on the federal income tax
return of the member and who is designated by the Member for
purposes of receiving benefits in the event of the pre-retirement
death of the Member.
9. Employee or General Employee - means all persons employed
by the City who are classified as regular, General Employees and
whose positions are reflected in the authorized positions section
of the City of Sanford's Classification and Pay Plan or are General
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Employees of the Sanford Airport Authority.
9.5. Elected Official means the five members of the City
Commission of the City of Sanford, Florida as defined under Article
II, Section 2.01 of the City of Sanford Charter.
10. Firefighter - means an actively employed full-time person
employed by the Sanford Airport Authority, a dependent special
district of the City, including his initial probationary employment
period, who is certified as a Firefighter as a condition of
employment in accordance with the provisions of Chapter 633.35,
Florida Statutes, and whose duty it is to extinguish fires, to
protect life and to protect property.
11. Salary means base compensation, including regular
earnings, vacation pay, sick pay, and all tax deferred items of
income, but excluding lump sum payments.
12. Fund - means the Trust Fund established herein as part of
the Plan.
13. Member means an actively employed authorized General
Employee or elected official or firefighter who fulfills the
prescribed participation requirements.
14. Plan means the City of Sanford General Employees,
Pension Plan as contained herein and all amendments thereto.
15. Special Risk Class - means member(s) who are employed by
a dependent special district of the City as a firefighter(s) after
December 31, 1995 and meet the criteria under Florida Statutes
633.35 to qualify as a firefighter.
16. Spouse - means the lawful wife or husband of a
Member at the time of pre-retirement death or retirement.
SECTION 2. MEMBERSHIP.
1. Conditions and Eligibility.
All General Employees who are employed by the City on or
after January 1, 1996 shall participate in the Plan as a condition
of employment and all elected officials who are hired or elected on
or after January 1, 1996 may participate. Provided, however,
elected officials only may irrevocably waive their participation in
the Plan. Dependent special districts of the City may elect to
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participate in an alternate self sponsored retirement program or
may elect by resolution of the dependent special district Board to
participate in the City's plan for employees hired on or after
January 1, 1996 upon approval of such election by the City
Commission. Firefighters employed by a dependent special district
which has elected by resolution of the dependent special district
Board to participated in the City's plan upon approval of such
election by the City Commission shall participate as a special risk
class of membership.
2. Beneficiary Designation.
Each eligible General Employee, elected official and
firefighter shall complete a Beneficiary Designation form for
purposes of naming beneficiaries to receive any death benefits
provided hereunder.
A Member may from time to time change his or her
designated Beneficiary by written notice to the Board upon forms
provided by the Board. Upon such change the rights of all previ-
ously designated Beneficiaries to receive any benefits under the
Plan shall cease.
SECTION 3. BENEFIT AMOITNTS AND ELIGIBILITY.
1. Retirement Dates
I. General Employees and Elected Officials.
A. Normal Retirement - a Member's Normal Retirement
Date shall be the first day of the month coincident with or next
following the earlier of:
a) the attainment of age sixty-two (62) and
completion of ten years of credited service, or
b) the completion of thirty (30) years of
Credited Service, regardless of age.
Members who continue in employment beyond
their Normal Retirement Date continue to earn benefit credit under
the Plan.
Each Member shall become 100% vested in his or her
accrued benefit on his or her Normal Retirement Date.
B. Early Retirement - a Member's Early Retirement
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Date shall be the first day of the month coincident with or next
following the completion of ten (10) years of Credited Service,
regardless of age.
II. Firefighters
A. Normal Retirement - a Member's Normal Retirement
Date shall be the first day of the month coincident with or next
following the earlier of:
(a) the attainment of ten (10) years of service
and age fifty-five (55), or
(b) the completion of twenty-five (25) years of
Credited Service, regardless of age.
Members who continue in employment beyond
their Normal Retirement Date continue to earn benefit credit under
the Plan.
Each Member shall become 100% vested in his or her
accrued benefit on his or her Normal Retirement Date.
B. Early Retirement - a Member's Early Retirement
Date shall be the first day of the month coincident with or next
following the completion of ten (10) years of Credited Service,
regardless of age.
2. Retirement Benefits.
I. General Employees and Elected Officials
A. Normal - a Member retiring hereunder on or
after his or her Normal Retirement Date shall receive a monthly
benefit which shall commence on his or her Retirement Date and be
continued thereafter during his or her lifetime. The monthly
retirement benefit shall equal one point six percent (1.6%) of
Average Final Compensation for each year of Credited Service.
Provided, however, if the Member has completed more than thirty
years of Credited Service or is older than age 62 at the time of
retirement, the applicable benefit rate for all years of Credited
Service shall be as follows:
Age 63 or 31 years of Credited Service 1.63%
Age 64 or 32 years of Credited Service 1.65%
At or over age 65 or 33 or more years 1.68%
of Credited Service
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B. Early - If a member is vested under his or her
membership class but has not reached normal retirement age or date,
early retirement can be taken and shall be computed as for Normal
Retirement, but shall be reduced 5/12% for each month by which the
commencement of monthly benefit payments precedes the Member's
Normal Retirement Date or age.
II. Firefighters - Special Risk Class
A. Normal - a Member retiring hereunder on or after
his or her Normal Retirement Date shall receive a monthly benefit
which shall commence on his or her Retirement Date and be continued
thereafter during his or her lifetime, ceasing upon death, but with
one hundred twenty (120) monthly payments guaranteed in any event.
The monthly retirement benefit shall equal two percent (2.0%) of
Average Final Compensation for each year of Credited Service.
B. Early - If a Member is vested under his or her
membership class but has not reached normal retirement age or date,
early retirement can be taken and shall be computed as for Normal
Retirement, but shall be reduced 5/12% for each month by which the
commencement of monthly benefit payments precedes the Member's
Normal Retirement Date or age.
3. Disability
A. Eligibility. Members shall be covered from date
of employment for disabilities which are determined by the Board to
have been incurred while performing duties as a General Employee or
elected official of the City. Members shall be covered following
the completion of ten (10) years of Credited Service for
disabilities which are determined by the Board not to have been
incurred while performing duties as a General Employee or elected
official of the City.
B. Exclusions. A Member will be considered totally
disabled if, in the opinion of the Board, he or she is wholly
prevented from rendering useful and efficient service as a General
Employee; and a Member will be considered permanently disabled if,
in the opinion of the Board of Trustees, such Member is likely to
remain so disabled continuously and permanently from a cause other
than is specified below:
(a) Excessive and habitual use by the Member
of drugs, intoxicants or narcotics;
(b) Injury or disease sustained by the Member
while willfully and illegally
participating in fights, riots, civil
insurrections, or while committing a
crime;
(c) Injury or disease sustained by the Member
while serving in any armed forces;
(d) Injury or disease sustained by the Member
after his or her employment has
terminated.
(e) Self-inflicted injury.
C. Determination of Disability. No Member shall
be permitted to retire under the provisions of this section until
examined by a duly qualified physician or surgeon, to be selected
by the Board for that purpose, and is found to be disabled in the
degree and in the manner specified in this section. Any Member
retiring under this section may be examined periodically by a duly
qualified physician or surgeon or board of physicians and surgeons
to be selected by the Board for that purpose, to determine if such
disability has ceased to exist.
D. Benefit Amount
1. General Employees and Elected Officials.
The benefit payable to a Member who retires with a disability which
is not service incurred shall be an amount equal to one point six
percent (1.6%) of his or her Average Final Compensation multiplied
by his or her years of Credited Service, but not less than 25% of
Average Final Compensation. In the event of a service incurred
disability, the benefit shall be determined as for non-service
related disabilities, but not less than 42% of Average Final
Compensation.
(2.) Firefighters - Special Risk Class Benefit
Amount. The benefit payable to a Member who retires with a
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disability which is not service incurred shall be an amount equal
to two percent (2.0%) of his or her Average Final Compensation
multiplied by his or her years of Credited Service, but not less
than 25% of Average Final Compensation. In the event of a service
incurred disability, the benefit shall be determined as for non-
service related disabilities, but not less than 42% of Average
Final Compensation.
E. Payment of Benefits. The monthly retirement
income to which a Member is entitled in the event of his or her
disability retirement will be payable on the first day of each
month. The first payments will be made on the first day of the
month following the date the Board determines such entitlement.
However, the monthly retirement income shall be payable as of the
date the Board determines such entitlement, and any portion due for
a partial month shall be paid together with the first payment. The
last payment will be on the earlier of the following:
(a) The first day of the month preceding
the later of the 120th monthly payment or the Member's date of
death, or
(b) the first day of the month preceding
the Member's recovery as determined by the Board.
F. Recovery. If the Board finds that a Member who
is receiving a disability retirement income is no longer
disabled, as provided herein, the Board shall direct that the
disability retirement income be discontinued. Recovery from
disability as used herein shall mean the ability of the Member
to render useful and efficient service as a General Employee.
If the Member recovers from disability, the period of time
during which the Member was receiving disability income from
the Plan shall not be considered in determining the service
retirement benefits payable from the Plan.
G. Benefit Offsets. In the event that the
disability benefits described herein plus other monthly
amounts to which the disabled Member is entitled, under the
City-financed Worker's Compensation program exceeds one-
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hundred percent (100%) of the Member's Average Final
Compensation in effect on the date of disability, the
disability benefits provided herein shall be reduced so that
the total of all such re~p/lar monthly amounts does not exceed
one-hundred percent (100%) of such Average Final Compensation.
4. Pre-Retirement Death.
A. Vested. In the event that a Member dies
following the completion of ten (10) or more years or Credited
Service or after the attainment of age 62, if earlier, the Member's
designated beneficiary shall receive, at their discretion, an
immediate or deferred annuity which shall be computed based upon
the assumption that the Member had retired on the date of death and
had elected the 100% Joint and Survivor Annuity form of payment.
B. Non-vested. In the event that a Member dies
prior to the completion of ten (10) years of Credited Service, no
benefits are payable.
5. Vesting if a Member terminates his employment,
either voluntarily or by discharge, and is not eligible for any
other benefits under this Plan, he shall be entitled to the
following:
A. With less than ten (10) years of Credited
Service - none.
B. With 10 or more years of Credited Service
1. The pension benefit accrued to his date
of termination payable for life, commencing at the Member's Normal
Retirement Date or Early Retirement Date, provided the Member
survives until benefit payments actually begin. The benefit shall
be determined as for Normal Retirement, but shall be reduced 5/12%
for each month that the benefit commencement date precedes the
Normal Retirement Date. In the event that the Member dies prior to
the commencement of benefits, no benefits are payable.
Forfeitures arising from terminations of employment
shall serve only to reduce future City contributions and shall
remain as a part of the assets of the Fund.
SECTION 4. COST-OF-LIVING ADJUSTMENTS.
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Each July 1 following the commencement of monthly benefit
payments, retired Members and beneficiaries of deceased Members who
are receiving monthly benefit payments shall receive a three
percent (3%) increase in their monthly benefit amount.
SECTION 5. OPTIONAL FORMS OF BENEFITS.
Each Member entitled to a Normal or Early Retirement Benefit
shall have the right at any time prior to the date on which benefit
payments begin to elect to have his or her benefit payable under
any of the Options hereinafter set forth in lieu of the benefits
provided herein, and to revoke any such elections and make a new
election at any time prior to the actual commencement of payments.
The Member shall make such an election by written request to the
Board, such request being retained in the Board's files.
OPTION 1 - Joint and Last Survivor Option
The Member may elect to receive a benefit during his or her
lifetime and have such benefit (or designated fraction thereof)
continued after his or her death to and during the lifetime of his
or her Beneficiary. The Election of Option 1 shall be null and
void if the designated Beneficiary dies before the Member's benefit
payments commence.
OPTION 2 - Ten Year Certain and Life Annuity Option
The Member may elect to receive a reduced benefit which is
payable for life, with the first 120 monthly payments guaranteed
payable in any event.
OPTION 3 - Social Security Option
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
amounts payable shall be as recommended by the actuaries for the
Plan, based upon the Social Security law in effect at the time of
the Member's retirement.
OPTION 4 - Other
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In lieu of the other optional forms enumerated in this
Section, benefits may be paid in any form approved by the Board so
long as actuarial equivalence with the benefits otherwise payable
is maintained. Provided, however, lump sum payments of all or a
portion of the Member's benefit entitlement are prohibited.
SECTION 6. CONTRIBUTIONS.
1. City Contributions
So long as this Plan is in effect, the City shall make
contributions to the Fund in an amount equal to the total cost for
the year as shown in the most recent actuarial valuation of the
Plan. The City contributions shall be made not less frequently
than quarterly installments. The total cost for any year shall be
defined as the total Normal Cost plus the additional amount
sufficient to amortize any Unfunded Actuarial Accrued Liabilities
over not more than a thirty (30) year period.
SECTION 7. ADMINISTRATION.
1. The General Administration and responsibility for the
proper operation of the Pension Plan and for making effective the
provisions of this Ordinance are hereby vested in a Board of
Trustees which shall be designated as the Plan Administrator for
the Plan. The Board shall consist of five (5) persons as follows:
A. Two legal residents of the City who shall be
appointed by the City Commission to serve for a period of 2 years
unless sooner replaced by the City Commission. Art appointed Member
may succeed himself or herself. A City official who is otherwise
eligible for appointment to the Board of Trustees shall not be
disqualified from consideration solely on the basis of his or her
official status.
B. Two Members of the Plan to be elected as
hereinafter provided, and
C. A fifth Member, shall be the Personnel Director
of the City, to be appointed by the City Commission as a
ministerial duty.
2. The regular term of office of each elected or appointed
Trustee shall be two (2} years. Each elected Trustee may succeed
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himself or herself if reelected as hereinafter provided.
3. Elected General Employee Trustees shall be elected in the
following manner: by vote of all actively employed Members of the
Plan at places designated by the Board, of which all qualified
Members entitled to vote shall be notified in person or by written
notice ten (10) days in advance of said election. The candidate
who receives the highest number of votes for office shall be
declared elected and shall take office immediately upon
commencement of the term of office for which elected or as soon
thereafter as he or she shall qualify therefore. An election shall
be held not more than thirty (30) days and not less than ten (10)
days prior to the commencement of the term for which a Trustee is
to be elected. The Board shall establish and administer the
nominating and election procedure for each election. The Board of
Trustees shall elect from among its Members a Chairman and Vice
Chairman within (10) days after a new Trustee is elected or
appointed. The Personnel Director shall serve as Secretary.
4. If a vacancy occurs in the office of Trustee, the vacancy
shall be filled for the unexpired term in the same manner as the
office was previously filled.
5. The Trustees shall serve without compensation, but they
may be reimbursed from the Fund for all official expenses which
they may necessarily actually expend through service on the Board.
6. Each Trustee shall, within ten (10) days after his or her
appointment or election, take an oath of office before the City
Clerk of the City, that so far as it develops upon him or her they
will diligently and honestly administer the affairs of the said
Board, and that he or she will not knowingly violate or willingly
permit to be violated any of the provisions of the law applicable
to the Pension Plan. Such oath shall be subscribed to by the
Members making it and shall be certified by the said Clerk and
filed in the Office of the City Clerk.
7. Each Trustee shall be entitled to one (1) vote on the
Board. Three (3) affirmative votes shall be necessary for a
decision by the Trustees at any meeting of the Board. The Chair-
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man shall have the right to one (1) vote only. Trustees may not
cast proxy votes.
8. Subject to the limitations of this Ordinance, the Board of
Trustees shall from time to time establish uniform rules and
regulations for the administration of funds created by this
Ordinance and for transactions of its business, including provi-
sions for expulsion due to non-attendance of its elected Members
which could result in a vacancy.
9. The Board of Trustees shall engage such actuarial,
accounting, legal and other services as shall be required to
transact the business of the Pension Plan. The compensation of all
persons engaged by the Board of Trustees and all other expenses of
the Board necessary for the operation of the Pension Plan shall be
paid from the Fund at such rates and in such amounts as the Board
of Trustees shall agree. Funds may be distributed by a disbursing
agent as determined by the Board, but only upon written
authorization by the Board of Trustees.
10. For all acts and determinations of the Board the Secre-
tary shall prepare minutes.
11. The duties and responsibilities of the Board of Trustees
shall include, but not necessarily be limited to the following:
A. Construe the provisions of the Plan and
determine all questions arising thereunder.
B. Determine all questions relating to eligibility
for benefits hereunder.
C. Determine and certify the amount of all
retirement allowances or other benefits hereunder.
D. Establish uniform rules and procedures to be
followed for administrative purposes, benefit applications and all
matters required to administer the Plan.
E. Distribute to the Members information con-
concerning the Plan.
F. Receive and process all applications for
participation and benefits.
G. Authorize all payments whatsoever from the Fund,
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and to notify the disbursing agent, in writing, of approved benefit
payments and other expenditures arising through operation of the
Plan and Fund.
H. Have actuarial studies and actuarial valuations
performed, and make recommendations regarding any and all changes
in the provisions of the Plan.
I. Make the final determination of a Member's
eligibility for the Disability Benefits provided herein.
J. Perform such other duties as are specified in
this Ordinance.
12. The Board of Trustees shall furnish to the City Auditor
and the City Finance Director such required investment and actu-
arial information regarding the Plan as shall be requested.
13. Any dependent special district participating in the Plan
shall be governed by the Board as defined herein.
SECTION 8. FINANCES AND FUND MANAGEMENT.
1. All of the contributions and assets whatsoever at-
tributable to the Plan shall be deposited to the Fund.
2. The actual custody and supervision of the Fund (and assets
thereof) shall be vested in the Board of Trustees. Payments of
benefits and disbursements from the Fund shall be made by the
disbursing agent but only upon written authorization from the
Board.
3. The Board shall be required to appoint a National or State
Bank with Trust powers for the purpose of serving as Custodian of
the Fund and all assets of the Fund shall be promptly and
continually deposited therewith. Such bank shall be certified as
a Qualified Public Depository under the Florida Security for Public
Deposits Act (Chapter 280 of Florida Statutes), which depository
with regard to such funds and securities shall conform to and be
bound by all of the provisions of Chapter 280, Florida Statutes.
In order to fulfill its investment responsibilities as set forth
herein, the Board shall be required to retain the services of the
Custodian Bank, an investment advisor registered under Investment
Advisory Act of 1940, an insurance company, or a combination of
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these, for purposes of investment decisions and management.
Such investment manager shall have full discretion in the
investment of assets subject to limitation of this agreement and
any guidelines as prescribed by the Board.
4. All funds and securities of the Plan may be commingled in
the Fund, provided that accurate records are maintained at all
times reflecting the financial composition of the Fund, including
accurate current accounts and entries as regards the following:
A. Receipts and disbursements of the fund;
B. Benefit payments;
C. All cash investments realized and unrealized
gains or losses whatsoever;
D. All interest, dividends and capital gains (or
losses) whatsoever attributable to contributions and deposits to
the Fund;
E. Such other entries as may be properly required so
as to reflect a clear and complete financial report of the Fund.
5. The Board of Trustees shall have the following investment
powers and authority:
A. The Board of Trustees shall be vested with full
legal title to said Fund, subject, however, and in any event to the
authority and power of the City Commission of the City of Sanford,
Florida to amend or terminate this Trust, 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 Plan. 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.
B. 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
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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.
2) Time or savings accounts of a national
bank, a state bank or a savings/building and
loan association insured by the Federal
Deposit Insurance Corporation.
3) Obligations of the United States or
obligations guaranteed as to principal and
interest by the government of the United
States.
4) Bonds, stocks, commingled funds
administered by National or State Banks or
evidences of indebtedness 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, provided that the
security of the corporation is traded on a
nationally recognized exchange and holds a
rating in one of the three highest
classifications by a major rating service, and
if such investments are made in a pooled fund
administered by a state or national bank, then
the rating of each issue in the pooled fund
shall hold a rating within the top three (3)
rating classifications of a major rating
service and no foreign investments shall be
permitted in the pooled fund.
C. The Board shall not invest more than five
percent (5%) of its assets in the common stock, capital stock, or
convertible securities of any one issuing company, nor shall the
aggregate investment in any one issuing company exceed five percent
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(5%) 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 percent (50%) of assets
of the Fund.
D. The Board of Trustees 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 Plan.
E. No person or entity shall be liable for the
making, retention or sale of any investment or reinvestment made as
herein provided nor for any loss or diminishment of the Fund,
except that due to his, her or its own negligence, willful mis-
conduct or lack of good faith.
F. 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 transfera-
bility, but the books and records shall at all times show that all
investments are part of the Trust Fund.
G. 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 of
power of attorney with or without power of substitutions; to
participate in mergers, reorganizations, recapitalizations,
consolidations, and similar transactions with respect to such
securities; to deposit such stock, or other securities in any
voting trust or any protective or like committee with the Trustees
or with depositories designated thereby; to amortize or fail to
amortize any part or all of the premium or discount resulting from
the acquisition or disposition of assets; and generally to exercise
any of the power of an owner with respect to stocks, bonds, or
other investments comprising the Fund which it may deem to be in
the best interest of the Fund to exercise.
H. 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 herein contained.
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I. 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 Ordinance, 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 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 or Beneficiary caused by errors of computation shall be
adjusted with interest at a rate per annum approved by the Board.
Overpayments shall be charged against payments next succeeding the
correction. Underpayments shall be made up from the Trust Fund.
K. The Board shall sustain no liability whatsoever
for the sufficiency of the Fund to meet the payments and benefits
herein provided for.
L. In any application to or proceeding or action in
the courts, only the City and the Board shall be necessary parties,
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.
6. 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 of Trustees.
SECTION 9. MAXIMUM BENEFIT LIMITATIONS.
1. Basic Limitation.
Subject to the adjustments hereinafter set forth, the maximum
amount of annual retirement income payable with respect to a Member
under this Plan shall not exceed the lesser of:
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A, $90,000 (or such lesser dollar amount as may be
allowable for any calendar year pursuant to Section 415(b) of the
Internal Revenue Code, as adjusted in such calendar year for
increases in the cost of living in accordance with regulations
issued by the Secretary of the Treasury under Section 415(d) of the
Code), or
B. 100% of the Members' average aggregate Compensation
for the three (3) consecutive calendar years during which the
General Employee or elected official was an active member and had
his or her highest aggregate compensation. "Compensation" shall
mean the General Employee's total annual remuneration paid or
accrued for personal services rendered to the City during the Plan
Year as reported on the Member's W-2.
For purposes of applying the above limitation, benefits
payable in any form 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 Equivalent of
a straight life annuity. For purposes of this Section, the
following benefits shall not be taken into account:
i. Any ancillary benefit which is not directly
related to retirement income benefits;
ii. Any other benefit not required under Section
415(b) (2) of the Internal Revenue Code and Regulations thereunder
to be taken into account for purposes of the limitation of Section
415{b)(1) of the Internal Revenue Code.
2. Participation in Other Defined Benefit Plan. The
limitation of this Section with respect to any Member who at any
time has been a Member in any other defined benefit Plan (as
defined in Section 414(j) of the Internal Revenue Code) maintained
by the City shall apply as if the total benefits payable under all
defined benefit Plans in which the Member has been a Member were
payable from one Plan.
3. Adjustments in Limitations. In the event the Member's
retirement benefits become payable before unreduced Social Security
benefits are payable, the $90,000 limitation prescribed by this
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Section shall be reduced in accordance with Regulations issued by
the Secretary of the Treasury pursuant to the provisions of Section
415(b) of the Internal Revenue Code. If the Member's retirement
benefit becomes payable after unreduced Social Security benefits
are payable, for purposes of determining whether this benefit meets
the limitation set forth in subsection 1 herein, such benefit shall
be adjusted so that it is actuarially equivalent to the benefit
beginning at the age when unreduced Social Security benefits are
payable. This adjustment shall be made using an assumed interest
rate of five percent (5%) and shall be made in accordance with
regulations promulgated by the Secretary of the Treasury or his or
her delegate.
4. Less than Ten Years of Service. The maximum retirement
benefits payable under this Section to any Member who has completed
less than ten (10) years of credited service with the City shall be
the amount determined under subsection 1 of this Section multiplied
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 (!0).
5. $10,000 Limit. Notwithstanding the foregoing, the
retirement benefit payable with respect to a Member shall be deemed
not to exceed the limitations set forth in this Section if the
benefits payable, with respect to such Member under this Plan and
under all other qualified defined benefit pension plans to which
the City contributes, do not exceed $10,000 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.
6. Accrued Benefit of Effective Date. Notwithstanding the
above limitations, if any Member as of the effective date hereof,
has an Accrued Benefit as of that date that exceeds the above
limitations, then such limitations shall equal such Accrued
Benefit. However, no cost of living adjustments as provided in
subsection 9 below shall be applicable to the amount of retirement
benefit so determined.
7. Member in Defined Contribution Plan. In any case where a
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Member under this Plan is also a Member in a "Defined Contribution
Plan" as defined in Section 414(i) of the Internal Revenue Code,
maintained by the City, the sum of the "Defined Benefit Plan
Fraction" and the "Defined Contribution Plan Fraction" (both as
defined in Section 415(e) of the Internal Revenue Code) shall not,
subject to the restrictions and exceptions contained in Section
2004 of the Act, exceed 1.0.
8. Reduction of benefits. Reduction of benefits and/or
contributions to all Plans, where required, shall be accomplished
by first reducing the Member's benefit under any defined benefit
Plans in which Member participated, such reduction to be made first
with respect to the Plan in which Member most recently accrued
benefits and thereafter in such priority as shall be determined by
the Trustees and the Plan Administrator of such other Plans, and
next, by reducing or allocating excess forfeitures for defined
contribution Plans in which the Member participated, such reduction
to be made first with respect to the Plan in which Member most
recently accrued benefits and thereafter in such priority as shall
be established by the Trustees and the Plan Administrato~ for such
other provided, however, that necessary reductions may be made in
a different manner and priority pursuant to the agreement of the
Trustees and the Plan Administrator of all other Plans covering
such Member.
9. Cost-of-Living Adjustments. The limitations as stated in
subsections 1, 2, 3, and 7 herein shall be adjusted to the time
payment of a benefit begins in accordance with any cost-of-living
adjustments prescribed by the Secretary of the Treasury pursuant to
Section 415(d) of the Internal Revenue Code.
SECTION 10. REPEAL OR TERMINATION OF SYSTEM.
1. This Ordinance establishing the Plan and Fund, and
subsequent Ordinances pertaining to said Plan and Fund, may be
modified, terminated or amended in whole or in part; provided that
if this or any subsequent Ordinance shall be amended or repealed in
its application to any person benefiting hereunder, the amount of
benefits which at the time of any such alteration, amendment or
21
repeal shall have accrued to the Member or Beneficiary shall not be
affected thereby, except to the extent that the assets of the Fund
may be determined to be inadequate.
2. If this Ordinance shall be repealed, or if contributions
to the Plan are discontinued, the Board shall continue to
administer the Plan in accordance with the provisions of this
Ordinance, for the sole benefit of the then Members, any Benefi-
ciaries then receiving retirement allowances, and any future person
entitled to receive benefits under one of the Options provided for
in this Ordinance who are designated by any of said Members. In
the event of repeal, or if contributions to the Plan are
discontinued, there shall be full vesting (100%) of benefits
accrued to date of repeal and the assets of the Plan shall be
allocated in an equitable manner to provide benefits on a
proportionate basis to the persons so entitled to benefits in
accordance with the provisions thereof.
3. The following shall be the order of priority for purposes
of allocating the assets of the Plan upon repeal of this Ordinance
or if contributions to the Plan are discontinued:
A. Members already retired under the Early or Normal
Retirement or Disability provisions of the Plan and those eligible
for such Retirement or Disability provisions of the Plan and those
eligible for such Retirement, active or deceased, but not actually
retired, and their Beneficiaries, in proportion to and to the
extent of the then actuarially determined present value of the
benefits payable less amounts received. If any funds remain, then
B. Beneficiaries Of deceased Members, in the same manner
as in A. above. If any funds remain, then
C. To all other Members and their Beneficiaries in the
same manner as A. but based upon Credited Service and Average Final
Compensation as of the date of Termination of the Plan, and with
any vested benefits given precedence.
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
22
accordance with this subsection. The Fund may be distributed in
one sum to the persons entitled to said benefits or the dis-
tribution may be carried out in such other equitable manner as the
Board may direct. The Trust may be continued in existence for
purposes of subsequent distributions.
4. After all the vested 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.
SECTION 11. CLAIMS PROCEDURES
1. If any Member of the Plan has been:
A. Placed on pension under the terms and provisions
of this Ordinance for disability, or
B. Placed on pension because the Member has served
the required number of years to entitle him to a pension, or
C. Refused benefits under this Plan, and is
dissatisfied with the amount of pension the Member is receiving, or
believes that he should be entitled to benefits under the Plan, the
Member may, in writing, request the Board to review the case and
enter such order thereon as it deems right and proper within sixty
{60) days from receipt of such written request and the receipt by
the Board of Trustees of a written request and the receipt by the
Board of Trustees of a written medical release authorization and a
list of names and addresses of all treating health care providers
for such review of disability claims; provided, that the Board of
Trustees may extend the time for entering such order by an
additional forty-five (45) days if it determines such time is
necessary for discovery in full and adequate review.
2. In the event that the order from the Board of Trustees
denies the claim for a change in such benefit or denies the claim
for benefits, the order of the Board of Trustees shall be put in
writing. Such written order shall include:
A. The specific reasons for the denial, including
specific references to pertinent provisions of the Plan on which
the denial is based;
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B. A description of any additional material or
information that the Board of Trustees feels is necessary for the
Member to perfect his claim, together with an explanation of why
such material or information is necessary; and
C. Artexplanation of the review procedure next open
to the Member. Such review procedure shall provide that:
(1) Prior to such review, the member or his
duly authorized representative may review any pertinent documents
including Plan provisions, minutes of the meeting of the Board of
Trustees in which denial of the claim was originally recommended,
and any other documents material to the case;
(2) After such review, the Member and/or his
duly authorized representative shall submit their case in writing
to the Board of Trustees and request a hearing. Such submission
shall be filed with the Board of Trustees no later than ninety (90)
days after the receipt of the order of the Board of Trustees. Upon
receipt of the written submission by the Member, the Board of
Trustees shall schedule an opportunity for a full and fair hearing
of the issue within the next ninety (90) days, and such scheduled
hearing shall be communicated in writing to the Member. The Member
and/or his duly authorized representative may then appear at such
scheduled hearing to present their case. The Board of Trustees
shall consider the facts presented at the scheduled hearing and
shall, within thirty (30) days after such hearing, make a final
ruling in writing on the request of the Member. The written
decision shall include the reasons for such decision and, such
decision shall be final.
i. The Chairman shall preside over the
hearing and shall rule on all evidentiary and other legal questions
that arise during the hearing.
ii. Either party, the claimant or the
Board of Trustees, may file pleadings within the time limits set
herein. Procedural motions are to be determined by the Chairman of
the Board of Trustees at any time. All parties are to furnish
copies of all pleadings to the opposing parties and exchange lists
24
with names and addresses of witnesses expected to be called to
testify at the hearing, as well as the list of exhibits that are
intended to be introduced, at least forty-five (45) days prior to
the hearing. Testimony of witnesses shall be under oath or
affirmation. Depositions or affidavits shall not be admissible
unless upon stipulation by all parties. The Chairman, any member
of the Board of Trustees, the attorney for the Board of Trustees,
the Claimant and the Claimant's attorney, upon recognition by the
Chairman, may direct questions to any witness during the
proceedings. Each party shall have the right to present evidence
relevant to the issues, to cross-examine witnesses, to impeach
witnesses and to respond to the evidence presented against the
party. Each party shall have the right to present any opening and
closing arguments. Any party may secure the services of a court
reporter to record the proceedings with the cost to be borne by the
party requesting the court reporter or requesting the transcription
of the proceeding.
iii. In all cases, unless otherwise
provided in this Section, the burden of proof shall be on the
Claimant who seeks to draw his entitlement to a pension, disability
pension, or increased pension benefit.
3. In all proceedings under subsections 1. and 2. hereof, the
Board of Trustees shall have the power to subpoena and require the
attendance of witnesses and the production of documents for
discovery prior to and at the proceedings provided for in each
paragraph. All orders entered by the Board of Trustees pursuant to
these proceedings shall be in writing. A reasonable fee may be
charged for the issuance of any subpoenas not to exceed the fees
set forth in Florida Statutes.
SECTION 12. DIRECT TRANSFER OF ELIGIBLE ROLLOVER DISTRIBUTIONS.
1. General. This Section applies to distributions made on or
after January 1, 1996. Notwithstanding any provision of the Plan
to the contrary that would otherwise limit a distributee's election
under this Section, a distributee may elect, at the time and in the
manner prescribed by the Board, to have any portion of an eligible
25
rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover.
2. Definitions.
A. Eligible Rollover Distribution: An eligible
rollover distribution is any distribution of all or any portion of
the balance to the credit of the distributee, 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 distributee's designated
Beneficiary, or for a specified period of ten 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 includable in gross income.
B. Eligible Retirement Plan: An eligible re-
tirement plan is an individual retirement account described in
Section 408(a) of the Internal Revenue Code, and 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, or a qualified trust described in Section
401(a) of the Internal Revenue Code, that accepts the distributee's
eligible rollover distribution. However, in the case of an
eligible rollover distribution to the surviving Spouse, and
eligible retirement plan is an individual retirement account or
individual retirement annuity.
C. Distributee: A distributee includes an employee
or former employee. In addition, the employee's or former
employee's surviving Spouse is a distributee with regard to the
interest of the Spouse.
D. Direct Rollover: A direct rollover is a payment
by the Plan to the eligible retirement plan specified by the
distributee.
SECTION 13. MISCELLANEOUS.
1. Discharged Members - Unless otherwise required by Florida
26
law, Members entitled to a pension shall not forfeit the same upon
dismissal by the City, but shall be retired as herein described.
2. Non-Assignability - no benefit provided for herein shall
be assignable or subject to garnishment for debt or for other legal
process.
3. Pension Validity - The Board of Trustees shall have the
power to examine into the facts upon which any pension shall
heretofore have been granted under any prior or existing law, or
shall hereafter be granted or obtained erroneously, fraudulently or
illegally for any reason. Said Board is empowered to purge the
pension rolls of any person heretofore granted a pension under
prior or existing law or heretofore granted under this Ordinance if
the same is found to be erroneous, fraudulent or illegal for any
reason; and to reclassify any pensioner who has heretofore under
any prior or existing law or who shall hereafter under this
Ordinance be erroneously, improperly or illegally classified.
4. Incompetents if any Beneficiary is a minor or if a
Member or Beneficiary is, in the judgment of the Board, otherwise
incapable of personally receiving and giving a valid receipt for
any payment due him or her under the Plan, the Board may, unless
and until claims shall have been made by a duly appointed guardian
or committee of such person, make such payment or any part thereof
to such persons, Spouse, children or other person deemed by the
Board to have incurred expenses or assumed responsibility for the
expenses of such person. Any payment so made shall be a complete
discharge of any liability under the Plan for such payment.
5o Specific authority is hereby granted to codify and
incorporate this Ordinance as Article X, Section 163, et seq. of
ChaDter 2 of the Code of Ordinances of the City of Sanford,
Florida.
6. All Ordinances or parts of Ordinances in conflict herewith
be and the same are hereby repealed. Existing Article X, Section
2-155 throuqh 2-161 of the Code of Ordinances is hereby amended to
exclude from the Florida Retirement System all new employees of the
City hired on or after January 1, 1996 and all new elected
27
Officials elected or hired on or after January 1, 1996. Section 2~
162 of the Code of Ordinances is hereby created and shall read as
follows:
Section 2~162. Exclusion from the Florida Retirement System.
There is excluded from the Florida Retirement System all General
Employees who are hired by the City on or after January 1, 1996 and
all new elected officials elected or hired on or after January 1,
1996.
7. Should any section or provision of this Ordinance or any
portion thereof, any paragraph, sentence or word be declared by a
court of competent jurisdiction to be invalid, such decision shall
not affect the validity of the remainder hereto as a whole or part
thereof other than the part to be declared invalid.
SECTION 14. EFFECTIVE DATE.
This Ordinance shall become effective immediately upon its
passage and adoption.
Mayor ~~'~
ATTEST:
CERTIFICATE
I, Janet R. Dougherty, City Clerk of the City of Sanford,
Florida, do hereby certify that a true and correct copy of the
Commission of the City of Sanford, Florida, on the a
the City of Sanford, Florida, of December, 1995.
Sanford, Florida
28