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3903ORDINANCE NO. 3903 AN ORDINANCE OF THE CITY OF SANFORD, FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE XV, POLICE OFFICERS' RETIREMENT SYSTEM; AMENDING SECTION 2-261, DEFINITIONS, BY AMENDING THE DEFINITION OF "BASE PAY"; AMENDING SECTION 2-266, BENEFIT AMOUNTS AND ELIGIBILITY; AMENDING SECTION 2-271, DIRECT TRANSFERS OF ELIGIBLE ROLLOVER DISTRIBUTIONS; AMENDING SECTION 2-273, MILITARY SERVICE PRIOR TO RETIREMENT; AMENDING SECTION 2-274, PRIOR POLICE SERVICE; ADDING SECTION 2-275, REEMPLOYMENT AFTER RETIREMENT; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY OF PROVISIONS; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE. BE IT ENACTED BY THE PEOPLE OF THE CITY OF SANFORD, FLORIDA: SECTION 1: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford entitled Police Officers, Retirement System, is hereby amended by amending Section 2-261, Definitions, by amending the definition of Base pay, to read as follows: Base pay means the pay for the grade and step classification pay plan in the city for the given including education incentive payments and plus all tax sheltered or tax-exempt items of income derived employee payroll deductions or salary reductions in the salary fiscal year, tax-deferred, from elective and otherwise includible in base pay. Compensation in excess of the limitations set forth in Section 401(a) (17) of the Code shall be disregarded. The limitation on compensation for an "eligible employee,, shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee,, is an Ordinance No. 3903 Page 1 individual who was a Member before the first Plan Year beginning after December 31, 1995. ~ECTION 2: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford entitled Police Officers' Retirement System, is hereby amended by amending Section 2-266, Benefit amounts and eligibility, subsection (e), Vesting, and subsection (f), Maximum pension, to read as follows: (e) Vesting. If a member terminates his employment as a police officer, either voluntarily or by discharge, and is not eligible for any other benefits under this system, the member shall be entitled to the following: (1) If the 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, determined as if he had remained employed, provided he does not elect to withdraw his accumulated contributions, and provided member survives to his otherwise early or normal Ordinance No. 3903 Page 2 (3) (f) (1) retirement date. In the event that the member does not does not survive to his otherwise early or normal retirement date, the member,s beneficiary shall receive the member's accumulated contributions. In the event a member elects to receive his accumulated contributions in lieu of any benefits hereunder, he shall also receive an additional lump-sum amount equal to five (5) percent of the member's base pay for all years of credited service since October 1, 1976. Maximum pension. 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 one hundred sixty thousand dollars ($160,000.00). 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 purposes of this subsection, not be taken into account: straight life annuity. For the followin~ benefits shall a. Any ancillary benefit which is not directly related to retirement income benefits; b. Any other benefit not required under Section 415(b) (2) of the [Internal Revenue] Code and Ordinance No. 3903 Page 3 Regulations thereunder to be taken into account for purposes of the limitation of Section 415(b) (1) of the [Internal Revenue] Code. (2) Participation in other defined benefit plans. The limitation of this subsection with respect to any member who at any time has been a member in any other defined benefit plan (as defined in Section 414(j) of the [Internal Revenue] Code) maintained by the city shall apply as if the total benefits payable under all defined benefit plans in which the member has been a member were payable from one (1) plan. (3) Adjustments in limitations. a. In the event the member's retirement benefits become payable before age sixty-two (62), the one hundred sixty thousand dollar ($160,000.00) limitation prescribed by this subsection shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of Section 415(b) of the [Internal Revenue] Code, so that such limitation (as so reduced) equals an annual benefit (beginning when such retirement income benefit begins) which is equivalent ($160,000) two (62). to a one hundred sixty thousand dollar annual benefit beginning at age sixty- Ordinance No. 3903 Page 4 (4) b. In the event the member's benefit is based on at least fifteen (15) years of credited service, the adjustments provided for in a. above shall not apply. c. The reductions provided for in a. above shall not be applicable to disability benefits paid pursuant to Sec. 2-266, Benefits amounts and eligibility, subsection (d), or pre-retirement death benefits paid pursuant to Sec. 2-266, Benefit amounts and eligibility, subsection (c). d. 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 section 2-265(f) (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 in accordance with regulations promulgated by the Secretary of the Treasury or his delegate. Less than ten years of service. The maximum retirement benefits payable under this subsection to any member who has completed less than ten (10) years of credited service with the city shall be the amount determined under section 2-265(f) (1) 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 Ordinance No. 3903 Page 5 (5) (6) (10). The reduction provided for in this subsection shall not be applicable to disability benefits paid pursuant to Sec. 2-266, Benefits amounts and eligibility, subsection (d), pursuant to Sec. subsection (c). or pre-retirement death benefits paid 2-266, Benefit amounts and eligibility, $10,000.00 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 subsection 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 ten thousand dollars ($10,000.00) 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 of benefits and/or required, shall be the member participated. Reduction of benefits. Reduction contributions to all plans, where 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 Ordinance No. 3903 Page 6 (7) (8) defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in which member most recently accrued benefits and thereafter in such priority as shall be established by the 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. Cost-of-living adjustments. The limitations as stated in subsections (f) (1), (f) (2)~ (f) (3) herein shall be adjusted to the time payment of a benefit begins in accordance with any cost-of-living adjustments prescribed by the Secretary of the Treasury pursuant to Section 415(d) of the [Internal Revenue] Code. Additional limitation on pension benefits. Notwithstanding anything herein to the contrary: a. The normal retirement benefit or pension payable to a retiree who becomes a member of the system and who has not previously participated in such system, on or after January 1, 1980, shall not exceed one hundred (100) percent of his average final compensation. However, subsection shall apply benefits or to pension cost-of-living increases nothing contained in this to supplemental retirement increases attributable to or adjustments. Ordinance No. 3903 Page 7 bo No member of the system shall be allowed to receive a retirement benefit or pension which is in part or in whole based upon any service with respect to which the member is already receiving, or will receive in the pension from a system or plan. future, a retirement benefit or different employer,s retirement This restriction does not apply to social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code. SECTION 3: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford entitled Police Officers. Retirement System, is hereby amended by amending Section 2-271, Direct transfer of eligible rollover distributions, subsection (2), Rollovers or transfers into the fund, to read as follows: (2) Rollovers or transfers into the fund. On or after January 1, 2002, the system will accept, solely for the purpose of purchasing credited service as provided herein, permissible Member requested transfers of funds from other retirement or pension plans, member rollover cash contributions and/or direct cash rollovers of distributions made on or after January 1, 2002, as follows: (a) Transfers and direct rollovers or member rollover contributions from other plans. The system will accept either a direct rollover of an eligible rollover distribution or a member contribution of an eligible rollover distribution from a qualified plan described in Ordinance No. 3903 Page 8 (b) Section 401(a) or 403(a) of the [Internal Revenue] Code, from an annuity contract described in Section 403(b) of the [Internal Revenue] Code or from an eligible plan under Section 457(b) of the [Internal Revenue] Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state. The system will also accept legally permissible member requested transfers of funds from other retirement or pension plans. Member rollover contributions from IRAs. The system will accept a member rollover contribution of the portion of a an individual retirement account or in Section 408(a) or 408(b) of the Code that is eligible to be rolled includible in gross income. distribution from annuity described [Internal Revenue] over and would otherwise be SECTION 4: That Chapter 2, Administration, Article XV of the City Code of the City of Sanford entitled Police Officers, Retirement System, is hereby amended by adding Military service prior to employment, follows: Section 2-273, subsection (1), to read as (i) 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 years or fractional parts of years for which he is requesting credit plus amounts actuarially determined Ordinance No. 3903 Page 9 S__~CTION 5: City Code of Retirement System, is hereby amended by amending Prior police service, subsection (1) and subsection follows: 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 years of credited service. That Chapter 2, Administration, Article XV of the the City of Sanford entitled Police Officers, Section 2-274, (6), to read as (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 years or fractional parts of years 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 years of credited service. (6) In no event, however, may credited service be purchased pursuant to this section for prior service with any other municipal, County or state law enforcement agency, if such prior service forms or will form the basis of a retirement benefit or pension from a different employer,s retirement system or plan as set forth in section 2-266, subsection (f) (8)b. Ordinance No. 3903 Page 10 _~ECTION 6: That Chapter 2, Administration, City Code of the City of Sanford entitled Retirement System, is hereby amended by adding Section Reemployment after retirement, to read as follows: Sec. 2-275. Reemployment after retirement, (1) Any retiree under this system, except for disability retirement as previouslyprovided for, may be reemployed by any public or private employer, except the city, and may receive compensation from that employment without limiting or restricting in any way the retirement benefits payable under this system. Reemployment by the city shall be subject to the limitations set forth in this section. Article XV of the Police Officers, 2-275, (2) After normal retirement. Any retiree who is retired under normal (or early) retirement pursuant to this system and who is memployed as a police officer and, by virtue of that reemployment, is eligible to participate in this system, shall upon being reemployed, discontinue receipt of benefits. Upon reemployment, the member shall be deemed to be fully vested and the additional credited service accrued during the subsequent employment period shall be used in computing a second benefit amount attributable to the subsequent employment period, which benefit amount shall be added to the benefit determined upon the initial retirement to determine the total benefit payable upon final retirement. Calculations of benefits upon retirement shall be based upon the benefit accrual rate, average final compensation, and credited service (and early retirement reduction factor, if applicable) as of that date and the retirement benefit amount for any subsequent employment period shall be based upon the benefit accrual rate, average final compensation (based only on the subsequent employment period), and credited service (and early retirement reduction factor, if applicable) as of the date of subsequent retirement. The amount of any death or disability benefit received during a subsequent period of employment shall be reduced by the amount of accrued benefit eligible to be paid for a prior period of employment. The optional form of benefit and any joint pensioner selected upon initial retirement shall not be subject to change upon Ordinance No. 3903 Page 11 subsequent retirement except as otherwise provided herein, but the retiree may select a different optional form and joint pensioner applicable only to the subsequent retirement benefit. (3) Any retiree who is retired under normal retirement pursuant to this system who is reemployed by the City in a position other than as a police officer, shall upon being reemployed, continue receipt of benefits for the period of any subsequent employment period. (4) After early retirement. Any retiree who is retired under early retirement pursuant to this system and who subsequently becomes an employee of the city in any capacity, shall discontinue receipt of benefits from the system. If the reemployed person, by virtue of his reemployment, is eligible to participate in this system, that person shall accrue a second benefit as provided for in subsection (2) above and benefit payments shall remain suspended during any such subsequent employment period. If the reemployed person is not eligible to participate in this system, that person,s pension benefit Payments shall be termination of employment or such reaches the date that he would suspended until the earlier of time as the reemployed retiree have been eligible for normal retirement under this system had he continued employment and not el ected early ret irement. "Normal retirement" as used in this subsection shall be the current normal retirement date provided for under this system. (5) Reemployment of terminated vested persons. Reemployed terminated vested persons shall not be subject to the provisions of this section until such time as they begin to actually receive benefits. Upon receipt of benefits, terminated vested persons shall be treated as normal or early retirees for purposes of applying the provisions of this section and their status as an early or normal retiree shall be determined by the date they elect to begin to receive their benefit. Ordinance No. 3903 Page 12 ~EC?ION 7: herewith be and the same are hereby repealed. ~EC?ION 8: If any section, subsection, sentence, phrase of this ordinance, or the particular application shall be held invalid by any court, administrative agency, body with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under application shall not be affected thereby. SEC?ION 9: That this Ordinance shall become effective upon adoption. Ail Ordinances or parts of Ordinances in conflict clause, thereof or other PASSED AND ADOPTED this 22nd day of November, A.D. 2004. As the City Commission of the City of Sanf~~a ~~, Mayor ATTEST: a~let R. Dougher~, Cit~ Clerk CERTIFICATE I, Janet R. Dougherty, City Clerk of the City of Sanford, Florida, do hereby certify that a true and correct copy of the foregoing Ordinance No. 3903, PASSED AND ADOPTED by the City Commission of the City of Sanford, Florida, on the 22nd day of November, 2004, was posted at the front door of the City Hall in the City of Sanford, Florida, on the 23rd day of November, 2004. A~/the City Clerk ty of Sanford, Florida bm\san\pol\02~23 04.ord Ordinance No. 3903 Page 13