4645 Amending Sections 66-32 and 66-36 - Police Officers' Retirement SystemOrdinance No. 2021-4645
An Ordinance of the City of Sanford, Florida, amending Chapter 66,
Article 11, of the Code of Ordinances of the City of Sanford pertaining
to the Police Officers' Retirement System by amending Section. 66-32,
and Section 66-36, relating to membership benefit amounts and
eligibility and normal retirement; providing for legislative findings and
intent and implementation; providing for conflicts; providing for a
savings provision; providing for codification; providing for
severability and providing for an effective date.
Whereas, certain vested members of the City of Sanford Police Officers'
Retirement System have continued their employment at the Police Department while also
collecting normal retirement benefits from the Police Officer Pension Plan; and
Whereas, amendments to the Plan are necessary to conform the Retirement
System to the collection of in-service distributions for the vested members who wish to
continue their employment with the Police Department and receive payment of such
benefits; and
Whereas, the amendments result from the recommendation of the actuaries for
the Trustees of the City's Police Officers' Retirement System, Drew Ballard, EA, MAAA,
of the Foster & Foster firm of Ft. Meyers, as well as Board Attorney, Pedro Herrera, which
amendments clarify that Members who are participating in the Florida Retirement System
are allowed to draw their vested retirement benefits from the Plan at their Normal
Retirement Date even if still employed by the City which amendments have been
determined to have no impact on the assumptions used in determining the funding
requirements to the program; and
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For the purposes of this Ordinance, underlined type shall constitute additions to the original text, * * * shall
constitute ellipses to the original text and s#*et#ret+� shall constitute deletions to the original text.
Whereas, because the amendments the changes do not result in a change in
the valuation results, the aforesaid consultants concluded that that a formal Actuarial
Impact Statement is not required in support of this Ordinance; and
Whereas, the trustees of the City's Police Officers' Retirement System have
requested and approved the amendments provided herein as being in the best interests
of the participants and beneficiaries and improving the administration of the Fund, and
Whereas, the City Commission has received and reviewed an actuarial impact
statement related to this change and attached as such; and
Whereas, the City Commission deems it to be in the public interest to provide this
change to the Retirement System for its Police Officers;
Be it Enacted by the People of the City of Sanford, Florida:
Section 1. Legislative findings and intent; implementation.
(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.
(c). The City Manager, or designee, shall implement the recommendations
made by the consultants to the Trustees of the City's Police Officers' Retirement System
upon the enactment of this Ordinance.
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For the purposes of this Ordinance, underlined type shall constitute additions to the original text, * * * shall
constitute ellipses to the original text and stFikethrough shall constitute deletions to the original text.
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 66-32, Membership, as follows:
Sec. 66-32. - Membership.
(1) Conditions of eligibility. All police officers employed by the city as of April 27,
1998, and all future new police officers, shall become members of this system as a
condition of employment. Notwithstanding the preceding sentence, this system shall be
closed to new members on October 1, 2017. Police officers hired on or after October 1,
2017 shall become compulsory members of the Florida Retirement System (FRS) and
shall not be eligible for membership in this system. Police officers hired before October
1, 2017 who are members of this system on September 30, 2017 may elect to participate
in FRS or continue participating in this system. All such eligible members who elect to
participate in the FRS shall be eligible for retirement benefits as provided for in Section
66-36. Eligibility for participation in the FRS, as well as FRS benefits and contributions,
will be determined in accordance with F.S. ch. 121 as that statute now exists and as it
may be amended in the future.
(2) ***
Section 3. 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
Sec. 66-36, Benefit amounts and eligibility, subsection (a), Normal Retirement, as follows:
Sec. 66-36. - Benefit amounts and eligibility.
(a) Normal retirement.
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constitute ellipses to the original text and stFikethrough shall constitute deletions to the original text.
(1) Normal retirement age and date. A member's normal retirement age is the
earlier of the attainment of age 55 and the completion of ten years of credited service or
the completion of 25 years of credited service, regardless of age. Each member shall
become 100 percent vested in his accrued benefit at normal retirement age. A member's
normal retirement date shall be the first day of the month coincident with or next following
the date the member retires from the city after attaining normal retirement age.
Notwithstanding, the normal retirement date for all eligible members who were employed
as of September 30, 2017 and elected to participate in the Florida Retirement System as
of October 1, 2017 shall be the first day of the first month coincident with or next following
the date such member attains their normal retirement age despite not separating from
City employment.
(2) Normal retirement benefit. A member retiring hereunder on or after his or her
normal retirement date shall receive a monthly benefit which shall commence on the first
day of the month coincident with or next following his or her retirement date, or attainment
of their respective Normal Retirement Age for eligible members as provided for herein,
and be continued thereafter during member's lifetime, ceasing upon death, but with 120
monthly payments guaranteed in any event. The monthly retirement benefit shall equal
three and fifty -hundredths percent of average final compensation, for each year of
credited service prior to October 1, 2017 and three percent of average final compensation,
for each year of credited service after October 1, 2017.
(3) ***
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constitute ellipses to the original text and 6trikethrough shall constitute deletions to the original text.
(b) - (i) ***
Section 4. Savings. The prior actions of the City of Sanford relating to the
administration of the police officers' retirement system and related matters are hereby
ratified and affirmed.
Section 5. Conflicts, All ordinances or parts of ordinances in conflict with this
Ordinance are hereby repealed.
Section 6. 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 7. Codification. Section 2 and 3 of this Ordinance shall become and
be made a part of the Code of Ordinances of the City of Sanford, Florida.
Section 8. Effective Date. This Ordinance shall become effective upon
passage; however, the provisions of enactment.
Passed and adopted this 13th day of December, A.D. 2021.
Attest.
Traci Houchin, M
City Clerk
Approved as to
City Commission of the City of
Sanford. Florida I
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constitute ellipses to the original text and strikethrough shall constitute deletions to the original text.
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WS RM
CITY OF Item No. 'T E
SkNFORD
FLORIDA
Crry COMMISSION MEMORANDUM 21.268
DECEMBER 13, 2021 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 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:
Adopt Ordinance No. 4644, amending Sections 66-32 and 66-36 of the Police Officers' Retirement
System for the City Commission's consideration.
FISCAL/STAFFING STATEMENT:
The Police Pension Board's actuary, Foster & Foster, Inc., advised there is not a change in the
valuation result associated with the adoption of this ordinance.
BACKGROUND:
At the November 4, 2021, Police Officers' Pension Board meeting, the board unanimously
recommended amending the following sections of the Police Officers' Retirement System to clarify
benefits related to in-service distributions.
• Section 66-36, Membership, is being amended to add (1) that members who elected to
participate in the FRS shall be eligible for retirement benefits as provided in Section 66-
36.
Section 66-36, Benefit Amounts and Eligibility, subsection (a), Normal Retirement, is
being amended to:
a. Correctly indicate that members who opted to join the FRS October 1, 2017,
their normal retirement date shall be the first day of the first month coincident
with or next following the date such member attains their normal retirement age
despite not separating from City employment; and
b. Section (1) Normal Retirement Benefit is amended as follows: retirement date
"or attainment of their respective normal retirement age for eligible members as
provided herein".
LEGAL REVIEW:
The ordinance has been prepared by the Police Officers' Pension Board attorney.
The City Commission approved the first reading of Ordinance No. 4645 on November 8, 2021.
The City Clerk published notice of the 2nd Public Hearing in the Sanford Herald on December 5,
2021.
REcomMENDATION:
The Police Officers' Pension Board recommends the City Commission adopt Ordinance No. 4645.
SUGGESTED MOTION:
"I move to adopt Ordinance No. 4645."
Attachments: Actuarial Impact Letter from Foster & Foster Actuaries
Ordinance No. 4645
FOSTER & FOSTER
ACT UAR�ES AND CONSUL"FANTS
October 19, 2021
Ms. Susy Pita
Sanford Police Officers' Retirement System
22233 Drawbridge Dr.
Leesburg, FL 34748
Re: City of Sanford Police Officers' Retirement System
Dear Susy:
In response to your email dated October 7, 2021, we have reviewed the proposed Ordinance including the
following proposed change:
Clarify that Members who are participating in the Florida Retirement System are allowed to draw
their vested retirement benefits from the Plan at their Normal Retirement Date even if still
employed by the City.
We have determined that its adoption will have no impact on the assumptions used in determining the
funding requirements to the program.
Because the changes do not result in a change in the valuation results, it is our opinion that a formal
Actuarial Impact Statement is not required in support of its adoption. However, since the Division of
Retirement must be aware of the current provisions of all public pension programs, it is recommended
that you send a copy of this letter and a copy of the fully executed Ordinance to each of the following
offices:
Mr. Keith Brinkman
Bureau of Local Retirement Systems
Division of Retirement
P.O. Box 9000
Tallahassee, FL 32315-9000
Mr. Steve Bardin
Municipal Police and Fire
Pension Trust Funds
Division of Retirement
P.O. Box 3010
Tallahassee, FL 32315-3010
The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets
the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial
opinions contained herein.
If you have any questions, please let me know.
Sincerely,
C/
Drew Ballard, EA, MAAA
cc: Pedro Herrera, Board Attorney
13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 • (239) 433-5500 • Fax (239) 481-0634 • www.foster-foster.com