Item 7DAGENDA ITEM # 7D
SEPTEMBER 10, 2007
ORDINANCE NO. 58-07-32
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, DIVISION 4, POLICE OFFICER RETIREMENT
SYSTEM, TO PROVIDE THE LIMITED OPPORTUNITY TO
CHANGE A DESIGNATION OF BENEFICIARY BOTH PRE AND
POST RETIREMENT; PROVIDE THE OPPORTUNITY TO
PURCHASE CREDITED SERVICE FOR PRIOR MILITARY AND
POLICE OFFICER EMPLOYMENT ON PAYMENT OF FULL
ACTUARIAL COST BY THE EMPLOYEE; PROVIDE
PROVISION FOR ADJUSTMENT TO NORMAL RETIREMENT
BENEFIT IN THE EVENT DESIGNATED BENEFICIARY
PREDECEASES THE EMPLOYEE; PROVIDE INCREASES IN
EMPLOYEE CONTRIBUTION RATE; PROVIDING FOR
SEVERABILITY AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach, Florida has an interest in the future retirement of its
employees and wishes to improve the retirement systems whenever feasible; and
WHEREAS, the City must maintain compliance with Chapter i 85 of the Florida Statutes; and
WHEREAS, the city desires to remain competitive in the local area with respect to salary and
benefits offered to its employees; and
WHEREAS, the City and certain employee representation groups have agreed to specific
provisions through the collective bargaining process; and
WHEREAS, the City Commission has received and reviewed an actuarial impact statement
related to this change; and
NOW THEREFORE, BE IT ENACTED BY TIC CITY COMII~IISSION ON BEHALF OF TIIE
PEOPLE OF THE CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. Chapter 2, Administration; Article VI Employee Benefits; Division 4, Police Officer
Retirement System be amended as follows:
DIVISION 4. POLICE OFFICERS' RETIREMENT SYSTEM
Sec.2~301. Definitions.
The following words and phrases as used in this division shall have the following meanings unless a
different meaning is clearly required by the context:
Actuarial egwivalent shall mean that any benefit payable under the terms of this plan in a form other than
the standard form of benefit for members shall have the same actuarial present value on the date payment
commences as such standard form of benefit. For the purpose of establishing the actuarial present value of
any form of payment, all future payments shall be discounted for interest and mortality by using the 1983
Group Mortality Table, with ages set ahead five (5) years in the case of disability.
beneficiary shall mean any person, desigpated in writing, by a member who is being paid, or has
entitlement to future payment, of a pension or other benefit by the retirement system for a reason
AGENDA ITEM # 7D
SEPTEMBER 10, 2007
otter than the person's membership in the retirement system. A member may revoke such
designation by signing and filing with the boazd of trustees a new designation of beneficiary
form at any time prior to retirement, however after retirement, such designation of beneficiary
may only be changed twice. The board of trustees may request such evidence of the good health of a
beneficiary that is being removed as it may require and the amount of the retirement income payable upon
the designation of a new beneficiary be actuarially re-determined to ensure that the benefit paid is the
actuarial equivalent of the present value of the member's current benefit, taking into account the
ages and sex of the former beneficiarys the new beneficiary and the member
Sec. 210.1. Credited service.
Service rendered by a member of the retirement system shall be credited to the member's individual
credited service account in accordance with rules the board of trustees shall from time to time prescribe
and in accordance with the applicable provisions of Chapters 185, Florida Statutes. In no case shall more
than one (1) year of credited service be credited on account of all service rendered by a member in any
one (1) period of twelve (12) consecutive calendar months. Service shall be credited to the nearest one-
twelfth (1/12) of a year. Service shall be credited for the total number of years, and fractional parts of
years, of service of the member.
A member, mawpurchase up to five (SZyears of Credited service for service in the Armed Forces of the
United States or service as a Police Officer for any law enforcement agency prior to emntovment as a
Police Officer by the City bv~positing the full actuarial costs of such years of Gredited service that
would have occurred had thc Police Officer been employed by the City for the number ofd ears
purchased. Such payment for said prior Credited service may be made as a lump sum or in installments
not to exceed the veers of service purchased: however, must be paid in full prior to retirement.
Installment payments shall require interest at the actuarial rate of return for the years ,purchased. Such
purchase of prior Credited service shall take effect upon vesting. If a member terminates service prior to
vesting and receives a refund of empi~ee contributions. the amount paid for such prior Credited service
shall also be refunded. Sub, ject to the followinu:
1. Prior Credited service shall not be granted fo~erv ice where the member is receiving
or is
2. ,
entitled to receive a benefit from another governmental pension system.
Prior Credited service under this section shall only be p~gd for service in the Armed
Forces of the United States or service as a police officer for any law enforcement agency.
3. Actual Prior Service credit purchased shall be added to the years of service with the City,
4. Election to purchase~rior Credited service for p rior service in the Armed Forces of the
United States or with any law enforcement agency, not to exceed a combined total of five (5)
years, shall be made in writing to the Board of tru stees. The cost of prior Credited service
purchased .for such prior service shall be the full actuarial cost of all Credited service
purchased hereunder computed as a lump sum p~v ment into the plan. Actual payment may,
at the member's option, be extended over a period of time not to exceed the purchased
and shall be subject to interest at the assumed act uarial rate for the years purchased. Such
payment may be by direct in-service transfer fro m a participant's defenned compensation
account (457 accounts) pursuant to Section 457(e) ~ 17) of the Internal Revenue Code or any
other qualified plan. Fuil payment of such pu rchased prior Credited service must be
completed prior to the member's actual retirement.
Sec. 2-310.11. Optional fornu~ of pension payment.
Z
AGENDA ITEM # 7D
SEPTEMBER 10, 2007
A member of the retirement plan may elect to be paid under one (1) of the following optional forms of
payment in lieu of the standard normal or early retirement benefit foam of payment. The election must be
made in writing and filed with the board of trustees prior to the date retirement is effective. No member
may change the elected optional form of payment after the date of cashing or depositing the first benefit
payment. Unless otherwise elected, the standard normal benefit form shall be "Option A" below.
Payment will be made under the standard normal retirement benefit form if a timely election of an
optional form of payment is not made. The amount of pension under any option shall be the actuarial
equivalent of the amount of pension under the standard normal retirement benefit form payment.
(1) Option A; Ten (10) years certain and retirant's life thereafter: Under Optoon A, a retirant
shall be paid a pension for life, however in the event the retirant dies after retirement but
before receiving retirement benefits for a period of ten (10) years, the same monthly
benefit will be paid for the balance of such ten year period. Benefit payments shall be
made to the retirant's designated beneficiary or estate for such period.
(2) Option B; Modified joint survivor pension:
a. .; A reticent shall be paid a reduced pension for life with the
provision that upon the retirant's death, a benefit as designated by the retirant of either,
one hundred (100), seventy-five (75), sixty-six and two thirds (66 2/3) or fifty (50)
percent of the reduced pension benefit shall be continued throughout the future lifetime
of and paid to such person as the retirant shall have specified by written designation duly
executed and filed with the board of trustees at the time of election of the optional form
of payment.
b. A retirant shall be paid a reduced pension for life with theprovision that upon the
retirant's death, a benefit as desi~ated by the reticent of either, one hundred (100),
seventy-five (75), sixty-six and two thirds (66 2/3) or fifty (SOZpercent of the reduced
pension benefit shall be continued throughout the future lifetime of and paid to such
person as the reticent shall have specified by written designation duly executed and filed
with the board of trustees at the time of election of the optional form of payment.
However. in the event the person designated by the reticent predeceases the reticent, the
monthly benefit shall increase to the amount dyable under the standard normal form of
payment for the remaining lifetime of the reticent.
Sec. 210.27. Member contributions.
(a) Member contributions for benefit group police bargaining unit members covered by the
current collective bargaining unit collective bargaining agreement shall be ei~e~-{-l~
~~two and eight hundred fifteen thousandths (2,8151 percent of salary.
Effective on September 24, 2006 Member contributions for benefit groug police
bargaining unit members covered by the current collective bargaining unit collective
bar ..staining aal{,reement shall be three and eight hundred fifteen thousandths (3.815) e~rcent
of salary.
Effective on September 23, 2007 Member car-tributions for benefit gun police
bargaainmg, unit members covered by the current collective bargaining unit collective
bargainmg_astreement shall be four and eight hundred fifteen thousandths percent (4.8151
of salary.
All contributions shall be deducted from the member's pay and ,paid over into the
retirement system each pay period.
AGENDA ITEM # 7D
SEPTEMBER 1 Q 2007
fib) Por Member contributions for benefitgroup police that are non-collective bar ag_min unit
members ,the contribution rate shall be four
and eight hundred fifteen thousandths (4.815) percent of salary_ ~isl~-said
All contributions shall be deducted from the member's pay and paid over into the
retirement system each pay period.
SECTION 2. Severability
If any section, sentence, clause or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way
affect the validity of the remaining portions of this ordinance.
SECTION 3. Effective Date
This ordinance shall take effect immediately upon its passage and as soon as the related
payroll deduction items can be implemented.
PASSED by the City Commission on fast reading on the 27~ day of August 2007.
PASSED by the City Commission at Public Hearing and final reading this 10`~ day of
September 2007.
Donald M. Wolfson
Mayor /Presiding Officer
ATTEST:
Donna L. Bussey, CMC
City Clerk
Approved as to form and correctness:
Alan Jensen
City Attorney
LEGEND: Underlining is new language
4