3188 ORDINANCE NO. 3188
AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA,
AIr[ENDING ARTICLE XV OF THE CITY CODE ENTITLED
POLICE OFFICERS RETIREMENT SYSTEM; PROVIDING
DEFINITIONS, MEMBERSHIP, BOARD OF TRUSTEES,
FINANCES AND FUND MANAGEiV~ENT, CONTRIBUTIONS,
BENEFIT AMOUNT AND ELIGIBILITY, PRE-RETIREMENT
DEATH, DISABILITY, VESTING, OPTIONAL FORMS OF
BENEFITS, BENEFICIARIES, CLAIMS PROCEDURES,
REPORTS TO DEPARTMENT OF MANAGEMENT SERVICES,
ROSTER OF RETIREES, BOARD ATTORNEY AND
PROFESSIONALS, MAXIMUMPENSIONS, COMMENCEMENT
OF BENEFITS, DISTRIBUTION OF BENEFITS,
MISCELLANEOUS PROVISIONS , REPEAL OR
TERMINATION OF SYSTEM, EXEMPTION FROM
EXECUTION, ASSIGNABILITY, PENSION VALIDITY,
FORFEITURE OF PENSION, INDEMNIFICATION, DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS,
FAMILY MEDICAL LEAVE ACT; PROVIDING FOR
SEVERABILITY, CONFLICTS AND EFFECTIVE DATE.
WHEREAS, it is the desire of the Sanford City Commission to amend the Police
Officers' Retirement System.
NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF
SANFORD, FLORIDA:
SECTION 1. DEFINITIONS.
1. As used herein, unless otherwise defined or required by the context,
the following words and phrases shall have the meaning indicated:
Accumulated Contributions means a Member's own contributions assessed at
the rate of one percent (1%) of Gross Pay, all without interest.
Actuarial Equivalent means a benefit or amount of equal value, based upon the
1984 UP Group Mortality Table and an interest rate of eight (8%) per annum.
Average Final Compensation means one-twelfth (1/12 ) of the average Base Pay
of the five (5) best years of Credited Service of the last ten (10) years prior to
retirement, termination or death. A year shall be twelve (12) consecutive
months.
Base Pay means the pay for the grade and step in the salary classification pay
plan in the City for the given fiscal year, including all tax deferred or tax exempt
items of income otherwise includible in Base Pay.
Beneficiary means the person or persons entitled to receive benefits
hereunder at the death of a Member who has or have been designated in writing by
the Member and filed with the Board. If no such designation is in effect, or if no
person so designated is living, at the time of death of the Member, the Beneficiary
shall be the estate of the Member.
Board means the Board of Trustees, which shall administer and manage the
System herein provided and serve as trustees of the Fund.
City means City of Sanford, Florida.
Code means the Internal Revenue Code of 1986, as amended from time to time.
Credited Service means the total number of years and completed months of
service as a Police Officer with Member contributions to the System, omitting
intervening years or completed months when such Police Officer was not employed
by the City. A Police Officer may voluntarily leave his contribution in the Fund for
a period of five (5) years after leaving the employ of the Police Department pending
the possibility of being rehired, and remaining employed for a period of not less than
three (3) years, without losing credit for the time of active participation as a Police
Officer. If a Police Officer leaves the employ of the Police Department and elects to
receive a return of his Accumulated Contributions, he forfeits all rights in the
System. If the Police Officer does not remain employed for a period of three (3)
years upon reemployment within five (5) years, then the Accumulated Contributions
will be returned upon written request of the Member.
In addition, a Police Officer may receive Credited Service for periods which
the Police Officer 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 completed months that a Police Officer serves in the military
service of the Armed Forces of the United States or the United States Merchant
Marine, voluntarily or involuntarily, after separation from employment as a Police
Officer with the City, shall be added to his years of Credited Service for all
purposes, including vesting, provided that (except as otherwise prohibited by law,
Ordinance No. 3188
Page --2--
in which case the minimum standards for compliance shall apply):
A. The Police Officer must return to his employment as a Police
Officer with the City within ninety (90) days from the date of his
military discharge.
B. The Police Officer deposits into the Fund the same sum that
Member would have contributed if he had remained a Police
Officer, plus an amount of interest that substantially
approximates the amount earned by the Fund from the date of
return to employment to the date of deposit. For those Members
who purchase Credited Service hereunder, only that portion of
any payment representing the sum that he would have
contributed (14 of what would have been received as Gross Pay)
had he been a Member of the System for the years or completed
months for which he is requesting credit, shall be included in
Accumulated Contributions.
C. The maximum credit for military service shall be four (4) years.
D. The Police Officer was discharged under honorable conditions.
Effective Date means the date on which this ordinance becomes effective.
Fund means the trust fund established herein as part of the System.
Gross Pay means the total cash remuneration, excluding worker's
compensation.
Member means an actively employed Police Officer who fulfills the prescribed
membership requirements. Benefit improvements which, in the past, have been
provided for by amendments to the System adopted by City ordinance, and any
benefit improvements which might be made in the future shall apply prospectively
and shall not apply to Members who terminate employment or who retire prior to the
effective date of any ordinance adopting such benefit improvements, unless such
ordinance specifically provides to the contrary.
Police Officer means an actively employed full-time person, employed by the
City, including his initial probationary employment period, who is certified as a
Ordinance No. 3188
Page --3--
Police Officer as a condition of employment in accordance with the provisions of
§943.14, Florida Statutes, who is vested with authority to bear arms and make
arrests, and whose primary responsibility is the prevention and detection of crime
or the enforcement of the penal, traffic, or highway laws of the State of Florida.
Retirement means a Member's separation from City employment with eligibility
for immediate receipt of benefits under the System.
Spouse means the lawful wife or husband of a Member at the time of pre-
retirement death or retirement.
System means the City of Sanford Police Officers' Retirement System as
contained herein and all amendments thereto.
2. Masculine Gender.
The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine
genders.
SECTION 2. MEMBERSHIP.
1. Conditions of Eligibility.
A. All Police Officers as of the Effective Date, and all future new
Police Officers, shall become Members of this System as a
condition of employment.
B. All future new Police Officers shall be required to complete a
medical examination as prescribed by the City. Based upon
medical evidence of a pre-existing adverse health condition,
resulting from the prescribed examination or other records or
medical history, the Board may declare any Member ineligible for
disability benefits hereunder, as related to such pre-existing
condition. Each declaration shall be reflected in the minutes of
the meeting of the Board at which such declaration was formally
adopted or established by the Board.
2. Membership.
Each Police Officer shall complete a form prescribed by the Board pro-
viding the following information:
A. Acceptance of the terms and conditions of the System, and,
B. Designation of a Beneficiary or Beneficiaries.
C. A signed statement as to prior medical history.
D. A written release and waiver of right to privacy permitting the
Ordinance No. 3188
Page --4--
Board to obtain and distribute all medical records to the Board
members, its attorney, and any medical professionals retained by
the Board.
SECTION 3. BOARD OF TRUSTEES.
l. The sole and exclusive administration of and responsibility for the
proper operation of the System and for making effective the provisions of this
ordinance are hereby vested in a Board of Trustees. The Board of Trustees is
hereby designated as the plan administrator. The Board of Trustees shall consist
of five (5) Trustees, two of whom, unless otherwise prohibited by law, shall be legal
residents of the City, who shall be appointed by the Sanford City Commission, one
of whom shall be the mayor, and two of whom shall be full-time Police Officer
Members of the System, who shall be elected by a majority of the Police Officers who
are Members of the System. The fifth Trustee shall be chosen by a majority of the
previous four Trustees as provided for herein, and such person's name shall be
submitted to the Sanford City Commission. Upon receipt of the fifth person's name,
the Sanford City Commission shall, as a ministerial duty, appoint such person to the
Board of Trustees as its fifth Trustee. The fifth Trustee shall have the same rights
as each of the other four Trustees appointed or elected as herein provided and shall
serve a two (2) year term unless he sooner vacates the office. Each resident
Trustee shall serve as Trustee for a period of two (2) years, unless he sooner
vacates the office or is sooner replaced by the Sanford City Commission at whose
pleasure he shall serve. Each Police Officer Trustee shall serve as Trustee for a
period of two (2) years, unless he sooner leaves the employment of the City as a
Police Officer or otherwise vacates his office as Trustee, whereupon a successor
shall be chosen in the same manner as the departing Trustee. Each Trustee may
succeed himself in office and the two Police Officer Trustees shall serve staggered
terms. The Board of Trustees shall meet at least quarterly each year. The Board
of Trustees shall be a legal entity with, in addition to other powers and responsibil-
ities contained herein, the power to bring and defend lawsuits of every kind,
nature, and description.
2. The Trustees shall, by a majority vote, elect a Chairman, Vice-
Chairman and a Secretary/Treasurer. The Secretary/Treasurer of the Board shall
keep a complete minute book of the actions, proceedings, or hearings of the Board.
The Trustees shall not receive any compensation as such, but may receive expenses
and per diem as provided by law.
Ordinance No. 3188
Page --5--
3. Each Trustee shall be entitled to one vote on the Board. Three (3)
affirmative votes shall be necessary for any decision by the Trustees at any meeting
of the Board. A Trustee shall have the right to abstain from voting as the result of
a conflict of interest provided that Trustee complies with the provisions of Section
112. 3143, Florida Statutes.
4. The Board shall engage such actuarial, accounting, legal, and other
services as shall be required to transact the business of the System. The compensa-
tion 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 mounts as the Board shall agree.
5. The duties and responsibilities of the Board shall include, but not
necessarily be limited to, the following:
A. To construe the provisions of the System and determine all
questions arising thereunder.
B.To determine all questions relating to eligibility and membership.
C. To determine and certify the amount of all retirement allowances
or other benefits hereunder.
D. To establish uniform rules and procedures to be followed for
administrative purposes, benefit applications and all matters
required to administer the System.
E. To distribute to Members, at regular intervals, information
concerning the System.
F.To receive and process all applications for benefits.
G. To authorize all payments whatsoever from the Fund, and to
notify the disbursing agent, in writing, of approved benefit
payments and other expenditures arising through operation of
the System and Fund.
H. To have performed actuarial studies and at least biennial
valuations, and make recommendations regarding any and all
changes in the provisions of the System.
I. To perform such other duties as are required to prudently
administer the System.
6. The City Finance Director shall act as a City Liaison to the Board, and
shall have the same duties and responsibilities as any other Board Member, but shall
not be entitled to vote.
Ordinamce No. 3188
Page --6--
SECTION 4. FINANCES AND FUND MANAGEMENT.
Establishment and Operation of Fund.
1. As part of the System, there is hereby established the Fund, into which
shall be deposited all of the contributions and assets whatsoever attributable to the
System, including the assets of the prior Police Officers' Retirement System.
2. The actual custody and supervision of the Fund (and assets thereof)
shall be vested in the Board. Payment of benefits and disbursements from the Fund
shall be made by the disbursing agent but only upon written authorization from the
Board.
3. All funds and securities of the Police Officers' Retirement System may
be deposited by the Board with the Finance Director of the City, acting in a
ministerial capacity only, who shall be liable in the same manner and to the same
extent as he is liable for the safekeeping of funds for the City. However. any funds
and securities so deposited with the Finance Director of the City shall be kept in a
separate fund by the Finance Director or clearly identified as such funds and
securities of the Police Officers' Retirement System. In lieu thereof, the Board shall
deposit the funds and securities of the Police Officers' Retirement System in a
qualified public depository as defined in §280.02, 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 may retain the services of a custodian
bank, an investment advisor registered under the Investment Advisors Act of 1940
or otherwise exempt from such required registration, an insurance company, or a
combination of these, for the purposes of investment decisions and management.
Such investment manager shall have discretion, subject to any guidelines as
prescribed by the Board, in the investment of all Fund assets.
4. All funds and securities of the System 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. Current amounts of Accumulated Contributions of Members on
both an individual and aggregate account basis, and
B.Receipts and disbursements, and
C.Benefit payments, and
D.Current amounts clearly reflecting all monies, funds and assets
Ordinance No. 3188
Page --7--
whatsoever attributable to contributions and deposits from the
City, and
E. All interest, dividends and gains (or losses) whatsoever, and
F. Such other entries as may be properly required so as to reflect
a clear and complete financial report of the Fund.
5. An audit shall be performed annually by a certified public accountant
for the most recent fiscal year of the City 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. The Board shall have the following investment powers and authority:
A. The Board shall be vested with full legal title to said Fund,
subject, however, and in any event to the authority and power
of the Sanford City Commission to amend or terminate this Fund,
provided that no amendment or Fund termination shall ever result
in the use of any assets of this Fund except for the payment of
regular expenses and benefits under this System, except as
otherwise provided herein. All contributions from time to time
paid into 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 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.
Ordinance No. 3188
Page --8--
(3) Obligations of the United States or obligations guaranteed
as to principal and interest by the government of the
United States.
(4) Bonds issued by the State of Israel.
( 5 ) Bonds, stocks, comingled 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 (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 the
assets of the Fund.
D. 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.
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 diminishmerit of the Fund, except that due to
his or its own gross negligence, willful misconduct 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
Ordinance No. 3188
Page --9--
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.
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 or powers of
attorney with or without power of substitution; to participate in
mergers, reorganizations, recapltalizations, consolidations, and
similar transactions with respect to such securities; to deposit
such stock or other securities in any voting trust or any protec-
tive 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.
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 contained herein.
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, certi-
fication, 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 that is equal to the actuarially
assumed rate during the years of error. Overpayments shall be
charged against payments next succeeding the correction, or
Ordinance No. 3188
Page --10--
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 herein
provided for.
L. 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. CONTRIBUTIONS.
1. Member Contributions.
A. Amount. Members of the System shall be required to m~ke
regular contributions to the Fund in the mount of one percent
(1%) of his Gross Pay. Member contributions withheld by the
City on behalf of the Member shall be deposited with the Board
at least monthly. The contributions made by each Member to the
Fund shall be designated as employer contributions pursuant to
§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.
B. Method. Such contributions shall be made by payroll deduction.
2. State Contributions.
Any monies received or receivable by reason of laws of the State of
Florida, for the express purpose of funding and paying for retirement benefits for
Police Officers of the City shall be deposited in the Fund comprising part of this
System immediately and under no circumstances more than five (5) days after receipt
Ordinance No. 3188
Page --11--
by the City.
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 actuariat valuation of
the System, but in no event shall the City's annual contribution be less than ten
percent (10%) of the total Base Pay of Members for funding benefits provided for
herein, including that in Section 9, paragraph 4. Such annual requirement shall be
funded in quarterly installments. The total cost for any year shall be defined as the
total normal cost plus the additional amount sufficient to amortize the unfunded past
service liability over a thirty (30) year period, corarnencing with the fiscal year in
which the Effective Date of this System occurs.
4. Other.
Private donations, gifts and contributions may be deposited to the
Fund, but such deposits must be accounted for separately and kept on a segregated
bookkeeping basis. Funds arising from these sources may be used only for addi-
tional benefits for Members, as determined by the Board, and may not be used to
reduce what would have otherwise been required City contributions.
SECTION 6. BENEFIT AMOUNTS AND ELIGIBILITY.
1. Normal Retirement Date.
A Member's normal retirement date shall be the first day of the month
coincident with, or the next following attainment of age fifty-five (55) and the
completion of ten (10) years of Credited Service or the completion of twenty-five
(25) years of Credited Service. A Member may retire on his normal retirement date
or on the first day of any month thereafter, and each Member shall become 100%
vested in his accrued benefit on the Member's normal retirement date. Normal
retirement under the System is retirement from employment with the City on or after
the normal retirement date.
2. Normal Retirement Benefit.
A Member retiring hereunder on or after his normal retirement date shall
receive a monthly benefit which shall commence on his retirement date and be
continued thereafter during Member's lifetime, ceasing upon death, but with one
hundred twenty (120) monthly payments guaranteed in any event. The monthly
retirement benefit shall equal three and nineteen hundredths percent (3.19%) of
Ordinance No. 3188
Page --lZ--
Average Final Compensation, for each year of Credited Service.
3. Early Retirement Date.
A Member may retire on his early retirement date which shall be the first
day of any month coincident with or next following the later of the attainment of age
forty-five (45) and the completion of ten (10) years of Credited Service. Early
retirement under the System is retirement from employment with the City on or after
the early retirement date and prior to the normal retirement date.
4. Early Retirement Benefit.
A member retiring hereunder on his early retirement date may receive
either a deferred or an immediate monthly retirement benefit payable in the same
form as for normal retirement as follows:
A. A deferred monthly retirement benefit which shall commence on
what would have been his normal retirement date had he remained
a Police Officer and shall be continued on the first day of each
month thereafter. The mount of each such deferred monthly
retirement benefit shall be determined in the same manner as for
retirement on his normal retirement date except that Credited
Service and Average Final Compensation shall be determined as
of his early retirement date; or
B. An immediate monthly retirement benefit which shall commence on
his early retirement date and shall be continued on the first day
of each month thereafter. The benefit payable shall be as
determined in paragraph A above, reduced by one-fifteenth
(1/15th) for each of the first five (5) years and one-thirtieth
(1/30th) for each of the next five (5) years by which the
commencement of benefits precedes the date which would have
been the Member's normal retirement date had he continued
employment as a Police Officer.
SECTION 7. PRE-RETIREMENT DEATH.
1. Prior to Eligibility for Retirement.
A. Service Connected.
A death benefit shall be payable on behalf of any Member who
becomes deceased as a direct result of an occurrence arising in
the performance of duty, as follows:
(1) To the Spouse, until the earlier of death or remarriage, a
Ordinance No. 3188
Page --13--
monthly benefit equal to forty percent (40%) of the
Member's Base Pay.
(2) If there is no Spouse, or upon the death or remarriage of
the Spouse, for each unmarried child until he or she shall
have reached the age of eighteen (18). The child's
pension shall terminate on the earlier of death, marriage
or the attainment of age eighteen (18). Legally adopted
children shall be eligible the same as natural children.
The maximum total amount payable to all such children
shall be forty percent (40%) of the Base Pay.
(3) If a Member dies prior to retirement and is not survived by
a Spouse or children under the age of eighteen (18) years
or if payments provided for in subsections 1 and 2 above,
cease prior to the time when the Spouse or children have
received an amount equal to the Member's Accumulated
Contributions, the Member's Beneficiary shall receive the
Accumulated Contributions or the balance thereof.
B. Non-Service Connected.
The death benefit payable to the designated Beneficiary of a
Member who dies, but not as a direct result of an occurrence
arising in the performance of duty, and who is not otherwise
eligible for early or normal retirement at the time of death, shall
equal the Member's Accumulated Contributions.
2. Deceased Members Eligible for Retirement.
For any deceased actively employed Member who was eligible for early
or normal retirement as of his date of death, the benefit payable shall be the greater
of the retirement benefit determined as though the deceased Member had retired on
his date of death, with the resulting mount then being payable to the Beneficiary
on a monthly basis for ten (10) years, or on such other actuarially equivalent basis
as approved by the Board, or the benefits provided for in paragraph 1. of this
Section 7.
SECTION 8. DISABILITY.
1. Disability Benefits On-Duty.
Any Member and who shall become totally and permanently disabled to
the extent that he is unable, by reason of a medically determinable physical or mental
Ordinance No. 3188
Page --14--
impairment, to render useful and efficient service as a Police Officer, which
disability was directly caused by the performance of his duty as a Police Officer,
shall, upon establishing the same to the satisfaction of the Board, be entitled to a
monthly pension equal to three and nineteen hundredths percent (3.19%) of Base Pay
for each year of Credited Service, but in any event the minimum amount to be paid
to the Member shall be equal to fifty percent (50%) of the Base Pay of the Member.
Any condition or impairment of health of a Police Officer caused by
tuberculosis, hypertension or heart disease shall be presumed to have been suffered
in line of duty unless the contrary is shown by competent evidence, provided that
such Police Officer shall have successfully passed a physical examination upon
entering into such service, including cardiogram, which examination failed to revea/
any evidence of such condition; and provided further, that such presumption shall
not apply to benefits payable or granted in a policy of life insurance or disability
insurance.
2. Disability Benefits Off-Duty.
Any Member with five (5) years or more Credited Service who shall have
become totally and permanently disabled to the extent that he is unable, by reason
of a medically determinable physical or mental impairment, to render useful and
efficient service as a Police Officer, which disability is not directly caused by the
performance of his duties as a Police Officer shall, upon establishing the same to the
satisfaction of the Board, be entitled to a monthly pension equal to three and
nineteen hundredths percent (3.19%) of Base Pay for each year of Credited Service.
3. Conditions Disqualifying Disability Benefits.
Each Police Officer 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 alcohol.
B. Injury or disease sustained while willfully and illegally
participating in fights, riots or civil insurrections.
C.Injury or disease sustained while committing a crime.
D. Iniury or disease sustained while serving in any branch of the
Armed Forces.
E. Injury or disease sustained after his employment as a Police
Officer with the City of Sanford shall have terminated.
F.Willful, wanton or intentional conduct or gross negligence of the
Ordinance No. 3188
Page --15--
Member.
G. Injury or disease sustained by the Police Officer while working
for anyone other than the City and arising out of such
employment.
H. A condition pre-existing the Police Officer's membership in the
System. No Member shall be entitled to a disability pension,
whether in line of duty or not in line of duty, because of or due
to the aggravation of a specific injury, impairment or other
medical condition pre-existing at the time of membership in the
System, provided that such pre-existing condition and its
relationship to a later injury, impairment or other medical
condition be established by competent substantial evidence.
Nothing herein shall be construed to preclude a disability
pension to a Member who, after membership in the System,
suffers an injury, impairment or other medical condition different
from some other injury, impairment, or other medical condition
existing at or prior to said membership.
4. Physical Examination Requirement.
A Police Officer shall not become eligible for disability benefits until and
unless he undergoes a physical examination by a qualified physician or physicians
and/or surgeon or surgeons, who shall be selected by the Board for that purpose.
The Board shall not select the Member's treating physician or surgeon for this
purpose except in an unusual case where the Board determines that it would be
reasonable and prudent to do so.
Any Police Officer receiving disability benefits under provisions of this
ordinance may be periodically re-examined by a qualified physician or physicians
and/or surgeon or surgeons who shall be selected by the Board, to determine if such
disability has ceased to exist. If the Board finds that the retiree is no longer
permanently and totally disabled to the extent that he is unable to render useful and
efficient service as a Police Officer, the Board shall recommend to the City that the
retiree be returned to performance of duty as a Police Officer, and the retiree so
returned shall enjoy the same rights that Member had at the time he was placed upon
pension. In the event the retiree so ordered to return shall refuse to comply with
the order within thirty (30) days from the issuance thereof, Member shall forfeit the
right to his pension.
Ordinance No. 3188
Page --16--
The cost of the physical examination and/or re-examination of the Police
Officer claiming and/or receiving disability benefits shall be borne by the Fund. All
other reasonable costs as determined by the Board incident to the physical examina-
tion, such as, but not limited to, transportation, meals and hotel accommodations,
shall be borne by the Fund.
If the Police Officer recovers from disability and reenters the service
of the City as a Police Officer, his service will be deemed to have been continuous,
but the period beginning with the first month for which he received a disability
retirement income payment and ending with the date he reentered the service of the
City will not be considered as Credited Service for the purposes of the System.
The Board shall have the power and authority to make the final decisions
regarding all disability claims.
5. Disability Payments.
The monthly benefit to which a Member is entitled 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 entitlement. However, the monthly retirement
income shall be payable as of the date the Board determined such entitlement, and
any portion due for a partial month shall be paid together with the first payment.
The last payment will be:
A. If the Police Officer recovers from the disability prior to his
normal retirement date, the payment due next preceding the date
of- such recovery, or
B. If the Police Officer dies without recovering from disability or
attains his normal retirement date while still disabled, the
payment due next preceding his death or the 120th monthly
payment, whichever is later.
6. Workers' Compensation.
When a Member is receiving a disability pension, workers' compensation
benefits pursuant to Florida Statute 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 100% of the Member's Base Pay, the disability
pension benefit shall be reduced so that the total monthly amount received by the
Member does not exceed 100% of Base Pay.
SECTION 9. VESTING.
If a Member terminates his employment with the City, either voluntarily or by
Ordinance No. 3188
Page --17--
discharge, and is not eligible for any other benefits under this System, such
terminated Member shall be entitled to the following:
1. If the terminated Member has less than ten (10) years Credited Service
upon termination, the Member shall be entitled 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 entitled 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, based on the value of his accrued benefit on his
date of termination, 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 survive to his otherwise
early or normal 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 percent (5%) of the Member's Base Pay for all years of Credited
Service since October l, 1976.
SECTION 10. OPTIONAL FORMS OF BENEFITS.
1. In lieu of the amount and form of retirement income payable in the event
of normal or early retirement as specified herein, a Police Officer, upon written
request to the Board, may elect to receive a retirement income or benefit of
equivalent actuarial value payable in accordance with one of the following options:
A. A retirement income of a monthly amount payable to the Police
Officer for his lifetime only.
B.A retirement income of a modified monthly amount, payable to the
Ordinance No. 3188
Page --18--
Police Officer during the lifetime of the Police Officer and
following the death of the Police Officer, 100%, 75%, 66-2/34 or
50% of such monthly mount payable to a joint pensioner for his
lifetime.
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
amounts payable shall be as recommended by the actuaries for the
System, based upon the social security law in effect at the time
of the Member's retirement.
2. The Police Officers, upon electing any option of this Section, will
designate the joint pensioner (subsection 1.,B. above) or Beneficiary (or
Beneficiaries) to receive the benefit, if any, payable under the System in the event
of Memberls death, and will have the power to change such designation from time to
time. Such designation will name a joint pensioner or one or more primary
Beneficiaries where applicable. If a Police Officer has elected an option with a joint
pensioner or Beneficiary and Member's retirement income benefits have commenced,
Member may thereafter change his designated Beneficiary at any time, but may only
change his joint pensioner if the designated joint pensioner and the Member were
married at the time of Member's retirement and are divorced subsequent thereto and
the joint pensioner is alive at the time of the change; provided however, in no event
may a Member change his or her designated joint pensioner more than twice.
3. The consent of a Police Officerls 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 Member's Beneficiary or joint pensioner in accordance
with this section, the Board shall adjust the Member's monthly benefit by application
of actuarial calculations to insure that the benefit paid is the Actuarial Equivalent
of the Member's then-current benefit. Any such Member shall pay the actuarial
recalculation expenses and shall make repayment of any overage of previously-paid
pension benefits as a result of said recalculations. Each request for a change will
be made in writing on a form prepared by the Board and on completion will be filed
Ordinance No. 3188
Page --19--
with the Board. In the event that no designated Beneficiary survives the Police
Officer, such benefits as are payable in the event of the death of the Police Officer
subsequent to his retirement shall be paid as provided in Section ll.
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 Police Officer 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 7.
B. If the designated Beneficiary (or Beneficiaries) or joint
pensioner dies before the Police Officer's retirement under the
System, the option elected will be canceled automatically and a
retirement income of the normal form and mount will be payable
to the Police Officer 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 Police Officer prior to his retirement.
C. If both the retired Police Officer and the Beneficiary (or
Beneficiaries ) designated by Member die before the full payment
has been effected under any option providing for payments for
a period certain and life thereafter, made pursuant to the
provisions of subsection l, the Board may, in its discretion,
direct that the actuarially commuted value of the remaining
payments be paid in a lump sum and in accordance with Section
11.
D. If a Police Officer continues beyond his normal retirement date
pursuant to the provisions of Section 6, subsection 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 Police Officer 'in the amount or amounts
computed as if the Police Officer had retired under the option on
the date on which his death occurred.
Ordinance No. 3188
Page --20--
6. A Police Officer 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 total commuted value of the remaining monthly
income payments to be paid do not exceed Three Thousand Five Hundred Dollars
($3,500.00). Any such payment made to any person pursuant to the power and
discretion confined 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 11. BENEFICIARIES.
1. Each Police Officer 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 Police Officer 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.
2. If a deceased Police Officer fails to name a Beneficiary in the manner
prescribed in subsection 1, or if the Beneficiary (or Beneficiaries) named by a
deceased Police Officer predeceases the Police Officer, the death benefit, if any,
which may be payable under the System with respect to such deceased Police Officer,
shall be paid to the estate of the Police Officer.
SECTION lZ. CLAIi~S PROCEDURES.
1. Claims of Affected Persons.
A. The Board of Trustees shall grant an initial hearing upon receipt
of a written request ("Claim"), on matters which affect the
substantial rights of any person ("Claimant"), including
Members, active or retired, Beneficiaries, or any person affected
by a decision of the Board of Trustees.
B. The Board shall review the Claim at an initial hearing and enter
an order within sixty (60) days from the date of receipt of the
Claim and, in the case of disability claims, receipt by the Board
of a written medical release authorization in a form approved by
Ordinance No. 3188
Page --Zl--
the Board Attorney and a completed set of interrogatories
prepared by the Board Attorney and provided to the Claimant.
The Board may extend the time for entering the order at an
initial hearing for an additional forty-five (45) days if it
determines such time is necessary for full discovery and
adequate review. The Board Attorney and the Claimant may
stipulate to further extensions of time.
C. It shall be the function of the Board Attorney, throughout the
claims procedure, to assist the Board in the discovery and
presentation of evidence in order to assure that the Board
receives all relevant information prior to the Board's decision.
D. The Claimant shall have the right to be represented by counsel
at any or all times throughout the claims procedure.
2. Initial Hearing.
A. At the initial hearing, the only evidence to be considered by the
Board shall be documentary evidence contained in the pension
file, including but not limited to, correspondence, medical
records and reports of treating physicians and/or examining
physicians and evidence received pursuant to paragraph B.
B. Other than questions from the Trustees, there will be no taking
of additional evidence at the initial hearing, except that the
Claimant will be afforded fifteen (15) minutes to make a
presentation, which shall be limited to comments and/or
arguments as to the evidence or information already contained in
the pension file, including the report of the examining physician.
C. Upon completion of the review of the Claim at the initial hearing,
the Board shall enter an order setting forth its findings and
conclusions on the Claim. The written order shall be provided to
the Claimant. The order shall include:
(1) The specific findings and conclusions of the Board,
including specific references to pertinent provisions of the
System on which such conclusions are based;
( 2 ) A description of any additional material or information that
the Board may deem necessary for the Claimant to perfect
his Claim, together with the reasons why such material or
Ordinance No. 3188
Page --22--
information is necessary; and
(3) An explanation of the right to a full hearing on the Claim
and the time limit in which a full hearing must be
requested in writing.
D. The decision of the Board at the initial hearing shall not be final
until after the time has expired to request a full hearing or, if a
full hearing is requested, until the Board makes a decision at the
conclusion of the full hearing.
3. Full Hearing.
A. Any Claimant may request a full hearing on the issues presented
to the Board at an initial hearing and upon which the Board has
entered an order as provided in subsection 2 .C . above.
B. A full hearing must be requested by the Claimant within ninety
(90) days of the receipt of the Board's order. The order will be
deemed received three (3) days following the date it is mailed to
Claimant at the address provided to the Board by Claimant.
C. Upon receipt of the request for a full hearing and considering
the amount of discovery which might be conducted, the Board
shall establish a date for the full hearing and cause notice to be
given to the Clahnant. The full hearing shall be held within
ninety (90) days from the receipt of the request from the
Member. The full hearing may be postponed, if necessary and
with the consent of the C]almant, to permit full discovery of the
facts.
D. Copies of all documents to be offered into evidence at the full
hearing, including depositions, and a complete witness list with
haines and addresses of witnesses expected to be called, shall be
furnished to the Board by the Claimant and the Board Attorney
at least twenty (20) days prior to the full hearing. Documents
not furnished to the Board within the prescribed time limit may
be excluded from evidence at the full hearing if a reasonable
explanation is not provided for the delay in providing the
documents.
E. A Claimant or the Board Attorney may obtain discovery by
deposition and/or interrogatories prior to the full hearing.
Ordinance No. 3188
Page --23--
Written notice of any depositions and/or interrogatories shall be
given to the Board Attorney and the Claimant.
F. The costs of any discovery, except discovery requested by the
Board or the Board Attorney, the appearance of witnesses at the
hearing, and the making of a verbatim record of the proceedings
shall be the responsibility of the Claimant.
G. The Claimant shall be responsible for the appearance of any
witnesses at the hearing. The Board shall, however, 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 hereln. The Claimant may request in
writing the issuance of subpoenas by the Board. A reasonable
fee may be charged for the issuance of any subpoenas not to
exceed the fees set forth in Florida Statutes.
H. Testimony at the full hearing may be submitted in the form of a
deposition. Since it will give the Board more time for review and
consideration, the Board prefers that testimony be submitted by
deposition. Depositions timely submitted will be part of the
record before the Board at the full hearing and will not be read
in totality at the full hearing; provided however, that this does
not preclude the Claimant or the Board Attorney from reading
parts of depositions in an opening or closing statement.
I. Irrelevant and unduly repetitious evidence shall be excluded.
J. Any person who knowingly gives false testimony is guilty of a
misdemeanor of the first degree, punishable as provided in
Section 775. 082 or 775. 083, Florida Statutes.
K. The file maintained by the Board, including but not limited to
various medical reports therein, is part of the record before the
Board at the full hearing.
L. All proceedings of the Board shall be conducted in public.
M. In cases concerning an application for pension benefits,
including applications for disability retirement benefits, the
burden of proof, except as otherwise provided by law, shall be
on the Member seeking to show entitlement to such benefits.
N. In cases concerning termination of pension benefits including re-
Ordinance No. 3188
Page --24--
examination of Members receiving disability retirement benefits,
the burden of proof shall be on the Board.
O. Except as to those records which are exempted from the
provisions of Chapter 119, Florida Statutes, Florida's Public
Record Law, records maintained by the Board are open for
inspection and/or copying during normal business hours at a
reasonable cost for the copying.
P. Should a Claimant requesting an initial or full hearing decide to
appeal any decision made by the Board, with respect to any
matter considered at such hearing, the Claimant requesting an
initial or full hearing will need a record of the proceedings and
may need to assure that a verbatim record of the proceeding is
made. The Claimant requesting an initial or full hearing will be
responsible for obtaining a court reporter or otherwise making
a record of the proceedings before the Board.
Q. The decisions of the Board after the requested full hearing shall
be final and binding.
R. Within fifteen (15) days after making a decision at the full
hearing, the Board shall enter a final order setting forth its
findings and conclusions and a copy of the order shall be
provided to the Claimant.
S. Judicial review of decisions of the Board shall be sought by the
filing of a timely petition for writ of certiorari with the Clerk of
the Circuit Court, in the appropriate county.
4. Conduct of the Full Hearing.
A. The Chairman shall preside over the hearing and shall rule on all
evidentiary, procedural, and other legal questions that arise
during the hearing. The Chairman's rulings shall stand unless
overruled by a majority of the Trustees present. The Chairman
shall open the full hearing by explaining the procedures to be
followed.
B. The Claimant shall have the right to be represented by counsel
or be self-represented. The Board Attorney shall advise the
Board.
C. The Claimant shall be allowed to make an opening statement not
Ordinance No. 3188
Page --25--
to exceed ten (10) minutes.
D. Testimony of witnesses shall be under oath or affirmation.
Depositions or affidavits shall be admissible if agreed upon by
the Claimant and the Board or the Board Attorney.
E. The Chairman, any Trustee, the Board Attorney, the Claimant
or the Claimant's counsel, upon recognition by the Chairman,
may direct questions to any witness during the proceedings.
F. Either the Claimant or the Board Attorney 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.
G. The Claimant shall be permitted a closing argument not to exceed
fifteen ( 15 ) minutes.
H. The Board shall deliberate and make a decision following closing
argument and thereafter enter an order as provided herein.
5. Disability Claims - Additional Procedures
A. All applications for disability pensions shall be in writing. Forms
for such applications may be provided by the Board.
B. Upon receipt of the application for disability, the Board Attorney
will provide the Claimant with a set of interrogatorles or
questions to be answered under oath and a medical release
authorization. Both documents will be completed by the Claimant
and returned to the Board Attorney.
C. Upon receipt of the properly completed interrogatories and
medical release authorization, the Board Attorney will request
medical records from all relevant treating physicians; personnel
records from the employer, copies of relevant workman's
compensation records, and copies of other records deemed to be
relevant to the Claim. The Board shall pay, from the Fund, the
cost of any medical examinations required by the Board and for
copies of medical records.
D. The Board Attorney will, if authorized by the Board, upon
receipt of the medical records from the treating physicians,
schedule an independent medical examination (EvrE) with an
appropriate independent examining physician who will be asked
Ordinance No. 3188
Page --26--
to render an opinion about Claimant's physical condition as it
relates to the claimed disability.
E. Upon receipt of the I_ME from the examining physician, the Board
Attorney will provide all records of treating physicians, relevant
workman's compensation claims records, the independent medical
evaluation, and all other relevant documents to the Board for
inclusion in the pension file and the Board shall then schedule
the initial hearing.
SECTION 13. REPORTS TO DEPARTMENT OF MANAGEMENT SERVICES.
Each year and no later than March 15th, the Chairman of the Board shall file
a report with the Department of Management Services containing the following:
1. Whether in fact the City is in compliance with the provisions of Chapter
185, Florida Statutes.
2. A certified statement of accounting for the most recent fiscal year of the
City (or an independent audit by a certified public accountant if required by the
Department of Management Services ) showing a detailed listing of assets and methods
used to value them and a statement of all income and disbursements during the year.
Such income and disbursements shall be reconciled with the assets at the beginning
and end of the year.
3. A statistical exhibit showing the number of Police Officers on the force
of the City, the number included in the System, the number of Police Officers
ineligible, classified according to the reasons for their being ineligible, and the
number of disabled and retired Police Officers and their Beneficiaries receiving
pension payments and the amounts of annual retirement income or pension payments
being received by them.
4. A statement of the amount the City has contributed to the Fund for the
preceding plan year, and the amount the City will contribute to the Fund for the
current plan year.
S. If any benefits are insured with a commercial insurance company, the
report shall include a statement of the relationship of the insured benefits to the
benefits provided by this ordinance. This report shall also contain information about
the insurer, basis of premium rates, mortality table, interest rates and method used
in valuating retirement benefits.
6. The actuarial valuation of the System as provided for in Section 3. Such
valuation shall be prepared by an enrolled actuary who is enrolled under Subtitle C
Ordinamce No. 3188
Page --27--
of Title 3 of the Employee Retirement Income Security Act of 1974 and who is a
member of the Society of Actuaries or the American Academy of Actuaries.
SECTION 14, ROSTER OF RETIREES.
The Secretary of the Board shall keep a record of all persons enjoying a
pension under the provisions of this ordinance in which it shall be noted the time
when the pension is allowed and when the same shall cease to be paid. Additionally,
the Secretary shall keep a record of all Police Officers employed by the City in such
a manner as to show the name, address, date of employment and date of termination
of employment. These records shall be exempt from disclosure to the extent
provided for in Chapter 119, Florida Statutes.
SECTION 15. BOARD ATTORNEY AND PROFESSIONALS.
The Board may employ independent legal counsel at the System's expense for
the purposes contained herein, together with such other professional, technical, or
other advisors as the Board deems necessary.
SECTION 16. MAXIMIJM PENSION.
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 System shall
not exceed the lesser of:
A. $90,000, or
B. 1004 of the Member's average aggregate compensation for the
three (3) consecutive calendar years during which the Police
Officer was an active Member and had his highest aggregate
compensation. "Compensation" shall mean the Police Officer's
total annual remuneration paid or accrued for personal services
rendered to the City during the plan year as reported on the
Police Officer'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:
(1) Any ancillary benefit which is not directly related to
retirement income benefits;
(2) Any other benefit not required under §415(b)(2) of the
Ordinance No. 3188
Page --28--
Code and Regulations thereunder to be taken into account
for purposes of the limitation of §415(b)(1) of the Code.
2, Participation in Other Defined Benefit Plans,
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 §414(j) of the
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 age
62, the $90,000 limitation prescribed by this Section shall be reduced in accordance
with Regulations issued by the Secretary of the Treasury pursuant to the provisions
of §415(b) of the Code, but not less than $?5,000, if the benefit begins at or after
age fifty-five (55).
In the event the Member' s retirement benefit becomes payable before age
fifty-five (55), the $75,000 limitation shall be reduced from age fifty-five (55) in
accordance with Regulations issued by the Secretary of the Treasury pursuant to
the provisions of §415(b) of the Code. A Member with at least fifteen (15) years of
Credited Service may not have the benefit reduced below $50,000.00.
If the Member's retirement benefit becomes payable after age sixty-five
(65), 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 age sixty-five (65). This adjustment shall be
made using an assu/ned interest rate of five percent (5%) and shall be made in
accordance with regulations promulgated by the Secretary of the Treasury or his
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 mount 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 (10).
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
Ord'mance No. 3188
Page --Z9--
Section if the benefits payable, with respect to such Member under this System and
under all other qualified defined benefit pension plans to which the City contributes,
do not exceed $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. Member in Defined Contribution Plan.
In any case where a Member under this System is also a Member in a
'lDefined Contribution Plan" as defined in §414(i) of the Code, maintained by the
City, the sum of the "Defined Benefit Plan Fraction" and the I'Defined Contribution
Plan Fraction" (both as defined in §415(e) of the Code) shall not, subject to the
restrictions and exceptions contained in §2004 of the Act, exceed 1. 0 .
7. 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 Board 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 there-
after in such priority as shall be established by the Board and the plan administrator
for such other plans provided, however, that necessary reductions may be made in
a different manner and priority pursuant to the agreement of the Board and the plan
administrator of all other plans covering such Member.
8. Cost-of-Living Adjustments.
The limitations as stated in subsections 1, 2, 3, and 6 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 §415(d)
of the Code.
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 100 percent of his Average Final Compensation.
Ordinance No. 3188
Page --30--
However, nothing contained in this Section shall apply to
supplemental retirement benefits or to pension increases
attributable to cost-of-living increases or adjustments.
B. No Member of the System who is not now a Member of such 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 another retirement
system or plan. This restriction does not apply to social security
benefits or federal benefits under Chapter 67, Title 10, U.S.
Code.
SECTION 17. COMMENCEMENT OF BENEFITS.
1. Unless the Member otherwise elects, with such election being in writing
and delivered to the Board and specifying the form of retirement income and date on
which the retirement income is to commence, the payment benefits under the System
to the Member shall commence not later than the 60th day after the close of the plan
year in which the latest of the following events occur:
A. The attainment by the Member of age 65;
B. The 10th anniversary of the date on which the Member commenced
participation in the System; or
C.The termination of the Member's service with the City.
Z. If the payment of a Member's retirement income cannot begin on the date
required under subsectlon 1 of this Section because the Board either cannot
ascertain the amount of the Member's retirement income or cannot locate the Member
after making reasonable efforts to do so, the payment of the Member's benefit shall
begin not later than sixty (60) days after the date on which the amount can be
ascertained or the Member is located, whichever is applicable. Any such payment
shall be made retroactive to a date which is not earlier than the date on which the
payment of the Member's benefit was scheduled to begin but which is not later than
the date specified under subsection 1 of this Section.
SECTION 18. DISTRIBUTION OF BENEFITS.
Notwithstanding any other provision of this System to the contrary, a form of
retirement income payable from this System after the Effective Date of this
ordinance, shall satisfy the following conditions:
1. If the retirement income is payable before the Member's death,
Ordinance No. 3188
Page --31--
A. It shall either be distributed or commence to the Member not later
than April 1 of the calendar year following the later of the
calendar year in which the Member attains age 70-1/2, or the
calendar year in which Member retires
B. The distribution shall commence not later than the calendar year
defined above; and a) , shall be paid over the life of the Member
or over the lifetimes of the Member and Spouse, issue or depen-
dent, or b), shall be paid over the period extending not beyond
the life expectancy of the Member and Spouse, issue or
dependent.
Where a form of retirement income payment has commenced in accordance
with the preceding paragraphs and the Member dies before his entire interest in the
System has been distributed, the remaining portion of such interest in the System
shall be distributed no less rapidly than under the form of distribution in effect at
the time of the Member's death.
2. If the Member's death occurs before the distribution of his interest in
the System has commenced, Member's entire interest in the System shall be
distributed within five (5) years of Member's death, unless it is to be distributed in
accordance with the following rules:
A. The Member's remaining interest in the System is payable to his
Spouse, issue or dependent;
B. The remaining interest is to be distributed over the life of the
Spouse, issue or dependent or over a period not extending
beyond the life expectancy of the Spouse, issue or dependent;
and
C. Such distribution begins within one year of the Member's death
unless the Member's Spouse, issue or dependent shall receive the
remaining interest in which case the distribution need not begin
before the date on which the Member would have attained age ?0-
1/2 and if the Spouse, issue or dependent dies before the
distribution to the Spouse, issue or dependent begins, this
Section shall be applied as if the Spouse, issue or dependent
were the Member.
SECTION 19. MISCELLANEOUS PROVISIONS.
1. Interest of Members in System.
OrdLnance No. 3188 Page
At no time prior to the satisfaction of all liabilities under the System
with respect to retirees and Members and their Spouses or Beneficiaries, shall any
part of the corpus or income of the Fund be used for or diverted to any purpose
other than for their exclusive benefit.
2. No Reduction of Accrued Benefits.
No amendment or ordinance shall be adopted by the City Commission of
the City of Sanford which shall have the effect of reducing the then vested accrued
benefits of Members or a Member' s Beneficiaries, except to the extent that the assets
of the Fund may be determined to be inadequate.
SECTION 20. REPEAL OR TERMINATION OF SYSTEM.
1. This ordinance establishing the System and Fund, and subsequent
ordinances pertaining to said System 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 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 System are
discontinued, the Board shall continue to administer the System in accordance with
the provisions of this ordinance, for the sole benefit of the then Members, any
Beneficiaries then receiving retirement allowances, and any future persons entitled
to receive benefits under one of the options provided for in this ordinance who are
designated by any of said Members. In the event of repeal, or if contributions to the
System are discontinued, there shall be full vesting (100%) of benefits accrued to
date of repeal and the assets of the System shall be allocated in an equitable manner
to provide benefits on a proportionate basis to the persons so entitled in accordance
with the provisions thereof.
3. The following shall be the order of priority for purposes of allocating
the assets of the System as of the date of repeal of this ordinance, or if contributions
to the System are discontinued with the date of such discontinuation being deter-
mined by the Board.
A. Apportionment shall first be made in respect of each retired
Police Officer receiving a retirement or disability benefit
hereunder on such date, each person receiving a benefit on such
date on account of a retired or disabled (but since deceased)
Ordinance No. 3188
Page --33--
Police Officer, and each Police Officer who has, by such date,
become eligible for normal retirement but has not yet retired, an
amount which is the Actuarial Equivalent of such benefit,
provided that, if such asset value be less than the aggregate of
such amounts, such amounts shall be proportionately reduced so
that the aggregate of such reduced amounts will be equal to such
asset value.
B. If there be any asset value remaining after the apportionment
under paragraph A, apportionment shall next be made in respect
of each Police Officer in the service of the City on such date who
has completed at least ten (10) years of Credited Service and who
is not entitled to an apportionment under paragraph A, in the
mount required to provide the Actuarial Equivalent of the
accrued normal retirement benefit, based on the Credited Service
and Average Final Compensation as of such date, and each vested
former Member then entitled to a deferred benefit who has not,
by such date, begun. receiving benefit payments, in the amount
required to provide said Actuarial Equivalent of the accrued
normal retirement benefit, provided that, if such remaining asset
value be less than the aggregate of the amounts apportioned
hereunder, such latter amounts shall be proportionately reduced
so that the aggregate of such reduced amounts will be equal to
such remaining asset value.
C. If there be any asset value after the apportionments under
paragraphs A and B, apportionment shall be made in respect of
each Police Officer in the service of the City on such date who is
not entitled to an apportionment under paragraphs A and B in
the amount equal to Member's Accumulated Contributions,
provided that, if such remaining asset value be less than the
aggregate of the mounts apportioned hereunder such latter
amount shall be proportionately reduced so that the aggregate of
such reduced amounts will be equal to such remaining asset
value.
D. If there be any asset value remaining after the apportionments
under paragraphs A, B, and C, apportionment shall lastly be
Ordinance No. 3188
Page --34--
made in respect of each Police Officer included in paragraph C
above to the extent of the Actuarial Equivalent of the accrued
normal retirement benefit, less the amount apportioned in para-
graph C, based on the Credited Service and Average Final
Compensation as of such date, provided that, if such remaining
asset value be less than the aggregate of the amounts appor-
tioned hereunder, such amounts shall be reduced so that the
aggregate of such reduced amounts will be equal to such
remaining asset value.
E. In the event that there be asset value remaining after the full
apportionment specified in paragraphs A, B, C, and D, such
excess shall be returned to the City, less return of the State's
contributions to the State, provided that, if the excess is less
than the total contributions made by the City and the State to the
date of termination such excess shall be divided proportionately
to the total contributions made by the City and the State.
The allocation of the Fund provided for in this subsection may, as
decided by the Board be carried out through the purchase of insurance company
contracts to provide the benefits determined in accordance with this subsection.
The Fund may be distributed in one sum to the persons entitled to said benefits or
the distribution may be carried out in such other equitable manner as the Board may
direct. The Fund may be continued in existence for purposes of subsequent
distributions.
If, at any time during the first ten (10) years after the effective date
of the ordinance originally establishing this System, the System shall be terminated
or the full current costs of the System shall not have been met, anything in the
System to the contrary notwithstanding, City contributions which may be used for
the benefit of any one of the twenty-five (25) highest paid Police Officers on the
effective date, whose anticipated annual retirement allowance provided by the City' s
contributions at Member's normal retirement date would exceed $1,500, shall not
exceed the greater of either a) $20,000, or b), an amount computed by multiplying
the smaller of $10,000 or twenty percent (20%) of such Police Officer's average
annual earnings during his last five (5) years of service by the number of years of
service since the effective date. In the event that it shall hereafter be determined
by statute, court decision, ruling by the Commissioner of Internal Revenue, or
Ordinance No. 3188
Page --35--
otherwise, that the provisions of this paragraph are not then necessary to qualify
the System under the Code, this paragraph shall be ineffective without the necessity
of further amendment of this ordinance.
4. After all the vested and accrued benefits provided hereunder have been
paid and after all other liabilities have been satisfied, then and only then shall any
remaining funds revert to the general fund of the City.
SECTION 2,1. EXEMPTION FROM EXECUTION, NON-ASSIGNABILITY.
Except as otherwise provided by law, the pensions, annuities, or any other
benefits accrued or accruing to any person under the provisions of this ordinance
and the Accumulated Contributions and the cash securities in the Fund created
under this ordinance are hereby exempted from any state, county or municipal tax
and shall not be subject to execution, attachment, garnishment or any legal process
whatsoever and shall be unassignable.
SECTION 2,2,. PENSION VALIDITY.
The Board 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 person who has heretofore under any prior or
existing law been or who shall hereafter under this ordinance be erroneously,
improperly or illegally classified.
SECTION 2,3. FORFEITURE OF PENSION.
1. Any vested Member who is convicted of the following offenses committed
prior to retirement, or whose employment is terminated by reason of his admitted
commission, aid or abetment of the following specified offenses, shall forfeit all
rights and benefits under this System, except for the return of his Accumulated
Contributions as of the date of termination. Specified offenses are as follows:
A. The committing, aiding or abetting of an embezzlement of public
funds;
B. The committing, aiding or abetting of any theft by a public
officer or employee from employer;
C. Bribery in connection with the employment of a public officer or
employee;
Ordinance No. 3188
Page --36--
D. Any felony specified in Chapter 838, Florida Statutes.
E. The cornrnittlng of an impeachable offense.
F. The corarnittlng of any felony by a public officer or employee who
willfully and with intent to defraud the public or the public
agency, for which he acts or in which he is employed, of the
right to receive the faithful performance of his duty as a public
officer or employee, realizes or obtains or attempts to obtain a
profit, gain, or advantage for himself or for some other person
through the use or attempted use of the power, rights,
privileges, duties or position of his public office or employ~nent
position.
2. Conviction shall be defined as an adjudication of guilt by a court of
competent jurisdiction; a plea of guilty or a nolo contendere; a jury verdict of guilty
when adjudication of guilt is withheld and the accused is placed on probation; or a
conviction by the Senate of an irnpeachable offense.
3. Court shall be defined as any state or federal court of competent
jurisdiction which is exercising its jurisdiction to consider a proceeding involving
the alleged commission of a specified offense. Prior to forfeiture, the Board shall
hold a hearing on which notice shall be given to the Member whose benefits are being
considered for forfeiture. Said Member shall be afforded the right to have an
attorney present. No formal rules of evidence shall apply, but the Member shall be
afforded a full opportunity to present his case against forfeiture.
4. Any Member who has received benefits from the System in excess of his
Accumulated Contributions after Member's rights were forfeited shall be required to
pay back to the Fund the amount of the benefits received in excess of his
Accumulated Contributions. The Board may implement all legal action necessary to
recover such funds.
SECTION 24. INDEI~NIFICATION.
1. To the extent not covered by insurance contracts in force from time to
time, and to the extent not covered by the Sovereign Immunity Statute, the City
shall indemnify and hold harmless members of the Board from all personal liability for
damages and costs, including court costs and attorneys' fees, arising out of claims,
suits, litigation, or threat of same, herein referred to as "claims", against these
individuals because of acts or circumstances connected with or arising out of their
official duty as members of the Board, other than as set forth in paragraph 2 and 3
Ordinance No. 3198
Page --37--
of this section. The City reserves the right, in its sole discretion, to settle or not
settle the claim at any time, and to appeal or to not appeal from any adverse
judgment or ruling, and in either event will indemnify and hold harmless any
members of the Board from the judgment, execution, or levy thereon.
2. This Section shall not be construed so as to relieve any insurance
company or other entity liable to defend the claim or liable for payment of the
judgment or claim, from any liability, nor does this Section waive any provision of
law affording the City immunity from any suit in whole or part, or waive any other
substantive or procedural rights the City may have.
3. This Section shall not apply nor shall the City be responsible in any
manner to defend or pay for claims arising out of acts or omissions of members of the
Board which constitute felonies or gross malfeasance or gross misfeasance in office.
SECTION ZS. DIRECT TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS.
1. General.
This Section applies to distributions made on or after January 1, 1993.
Notwithstanding any provision of the System 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
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 Code; and the portion of any distribution that is not
includible in gross income.
B. Eligible Retirement Plan: An eligible retirement plan is an
Ordinance No. 3188
Page --38--
individual retirement account described in section 408(a) of the
Code, an individual retirement annuity described in section
408(b) of the Code, an annuity plan described in section 403(a)
of the Code, or a qualified trust described in section 401(a) of
the Code, that accepts the dlstributee's eligible rollover
distribution. However, in the case of an eligible rollover
distribution to the surviving Spouse, an 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 dlstributee.
SECTION 26. FA/~ILY MEDIGAL LEAVE ACT.
The fractional parts of the twelve (12) month period ending each September
1 that a Police Officer is on leave from the City pursuant to the Family iV~edical Leave
Act (FMLA) shall be added to his Credited Service provided that:
1. The Member contributes to the Fund the sum that he would have
contributed, based on his Salary and the Member contribution rate in effect at the
time that the Credited Service is requested, had he been a member of the System for
the fractional parts of the twelve (lZ) months ending each September 1 for which he
is requesting credit plus amounts actuarially determined such that the crediting of
service does not result in any cost to the Fund plus payment of costs for all
professional services rendered to the Board in connection with the purchase of
periods of Credited Service.
2. The request for Credited Service for FMLA leave time for the twelve
(12) month period prior to each September 1 shall be made on or before September
30.
3. Pa~ent by the ~ember of the required amount shall be on or before
December 31 for the preceding twelve (12) month period ending September 1 and
shall be made in one lump s~ p~ent upon receipt of which Credited Service shall
be issued.
4. Credited Service purchased pursuant to this section shall not count
OrdEce No. 3188
PaEe --39--
toward vesting.
5. For those Members who purchase Credited Service hereunder, only that
portion of any payment representing the sum that he would have contributed (1% of
what would have been received as Gross Pay, plus 5% of what would have been
received as Base Pay for all years of Credited Service since October l, 1976) had he
been a IVYember of the System for the fractional parts of years for which he is
requesting credit, shah be included in Accumulated Contributions.
SECTION Z?: SEVERABILITY. If any section or portion of a section of
this Ordinance proves to be invalid, unlawful or unconstitutional, it shall not be held
to impair the validity, force or effect of any other section or part of this Ordinance.
SECTION 28: CONFLICTS. That all Ordinances or parts of Ordinances
in conflict herewith be and the same are hereby revoked.
SECTION 29: EFFECTIVE DATE. That this Ordinance shall become
effective immediately upon its passage and adoption.
MAyO~
ATTEST-'
TC~C2yCL/ERK
Sanford, Florida
Ordinance No. 3188
Page --40--
CERTIFICATE
I, Janet R, Donahoe, Ci,,y Clerk of the Ci,,y of Sanford, Florida, do hereby
cer,,ify tha,, a ,,rue and correct copy of the foregoing Ordinance No. 3188,
~~ Clerk of
of Sanford, Florida
Ordinance No. 3188
Page --41--