Agenda Item 7E AGENDA ITEM#7E
MAY 13,2013
ORDINANCE NO. 58-13-37
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
AMENDING AND RESTATING CHAPTER 2,
ADMINISTRATION, ARTICLE VI, EMPLOYEE BENEFITS,
DIVISION 3, GENERAL EMPLOYEES' RETIREMENT
SYSTEM, SECTIONS 2-261 THROUGH 2-299, INCLUSIVE, OF
THE CODE OF ORDINANCES OF THE CITY OF ATLANTIC
BEACH, BY RESTATING THE CITY OF ATLANTIC BEACH
GENERAL EMPLOYEES' RETIREMENT SYSTEM;
PROVIDING FOR CODIFICATION; PROVIDING FOR
SEVERABILITY OF PROVISIONS; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach General Employees are presently provided pension
and certain other benefits under Ordinances of the City of Atlantic Beach and;
WHEREAS, the City Commission desires to clarify and restate the provisions of the General
Employees' Retirement System to consolidate all prior ordinances and Code provisions and to
incorporate State and Federal law; and
WHEREAS, the City Commission also desires to amend and adjust the benefits currently
provided.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY
OF ATLANTIC BEACH, FLORIDA;
SECTION 1: That Chapter 2, Administration, Article VI, Employee Benefits, Division 3,
General Employees' Retirement Plan, Sections 2-261 through 2-299, inclusive, of the Code of
Ordinances of the City of Atlantic Beach, is hereby amended and restated as set forth in the
document designated CITY OF ATLANTIC BEACH GENERAL EMPLOYEES' RETIREMENT
SYSTEM, attached hereto and made a part hereof.
SECTION 2: Specific authority is hereby granted to codify and incorporate this Ordinance
in the existing Code of Ordinances of the City of Atlantic Beach.
SECTION 3: All Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
SECTION 4: If any section, subsection, sentence, clause, phrase of this ordinance, or the
particular application thereof shall be held invalid by any court, administrative agency, or other body
with appropriate jurisdiction, the remaining section, subsection, sentences, clauses, or phrases under
AGENDA ITEM#7E
application shall not be affected thereby. MAY 13,2013
SECTION 5: That this Ordinance shall become effective upon its adoption.
PASSED ON FIRST READING, this day of , 2013.
PASSED AND ADOPTED ON SECOND AND FINAL READING, this day of
2013.
MIKE BORNO
Mayor
ATTEST:
DONNA L. BARTLE, CMC
City Clerk
Approved as to form:
ALAN C. JENSEN, ESQUIRE
City Attorney
-2-
AGENDA ITEM#7E
MAY 13,2013
CITY OF ATLANTIC BEACH GENERAL EMPLOYEES' RETIREMENT SYSTEM
Sec. 2-261. Definitions.
(a) 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 with interest compounded
annually, redetermined on October 1 of each year based on the two-year Treasury Rate. For those
members who purchase credited service with interest or at no cost to the system, any payment
representing the amount attributable to member contributions based on the applicable member
contribution rate, and any payment representing interest and any required actuarially calculated
payments for the purchase of such credited service shall be included in accumulated contributions,
with interest. Interest shall accrue only during periods of active employment.
Actuarial equivalent means a benefit or amount of equal value, based upon the RP-2000
Combined Healthy Male Generational Mortality Table projected by Scale AA, and an interest rate of
eight percent (8%) per annum. This definition may only be amended by the city pursuant to the
recommendation of the board using assumptions adopted by the board with the advice of the plan's
actuary, such that actuarial assumptions are not subject to city discretion.
Average final compensation means one-twelfth (1/12) of the average salary of the five (5) best
consecutive years of the last ten (10) years of credited service years of credited service prior to
retirement, termination, or death, or the career average as a full-time general employee, whichever is
greater. A year shall be twelve (12) consecutive months.
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, except as provided by Sec. 2-267,
Pre-retirement death.
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 Atlantic Beach, Florida.
Credited Service means the total number of years and fractional parts of years of service as a
general employee with member contributions, when required, omitting intervening years or fractional
parts of years when such member was not employed by the city as a general employee. If a vested
member leaves the employ of the city, his accumulated contributions will be returned only upon his
written request. If a member who is not vested is not reemployed as a general employee with the
city within five (5) years, his accumulated contributions, if one thousand dollars ($1,000.00) or less,
shall be returned. If a member who is not vested is not reemployed within five (5) years, his
accumulated contributions, if more than one-thousand dollars ($1,000.00), will be returned only upon
the written request of the member and upon completion of a written election to receive a cash lump
sum or to rollover the lump sum amount on forms designated by the board. Upon return of a
member's accumulated contributions, all of his rights and benefits under the system are forfeited and
terminated.
The years or parts of a year that a member performs "Qualified Military Service" consisting of
voluntary or involuntary "service in the uniformed services as defined in the Uniformed Services
Employment and Reemployment Rights Act (USERRA) (P.L.103-353), after separation from
employment as a general employee to perform training or service, shall be added to his years of
credited service for all purposes, including vesting, provided that:
-1-
AGENDA ITEM#7E
MAY 13,2013
(1) The member is entitled to reemployment under the provisions of USERRA.
(2) The member returns to his employment as a general employee within the time frame
as allowed by USERRA following the earlier of the date of his military discharge or
his release from service, unless otherwise required by USERRA.
(3) The member deposits into the fund the same sum that the member would have
contributed, if any, if he had remained a general employee during his absence. The
maximum credit for military service pursuant to this subdivision shall be five (5)
years. The member must deposit all missed contributions within a period equal to
three times the period of military service, but not more than five (5) years, following
re-employment or he will forfeit the right to receive credited service for his military
service pursuant to this paragraph.
(4) This paragraph is intended to satisfy the minimum requirements of USERRA. To the
extent that this paragraph does not meet the minimum standards of USERRA, as it
may be amended from time to time, the minimum standards shall apply.
In the event a member dies on or after January 1, 2007, while performing USERRA Qualified
Military Service, the beneficiaries of the member are entitled to any benefits (other than benefit
accruals relating to the period of qualified military service) as if the member had resumed
employment and then died while employed.
Beginning January 1, 2009, to the extent required by IRC section 414(u)(12), an individual
receiving differential wage payments (as defined under IRC section 3401(h)(2)) from an employer
shall be treated as employed by that employer, and the differential wage payment shall be treated as
compensation for purposes of applying the limits on annual additions under IRC section 415(c).
This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.
Effective date means the date on which this ordinance becomes effective.
Fund means the trust fund established herein as part of the system.
General Employee means any actively employed person in the regular full-time or regular part
time service of the city, including those in their initial probationary employment period, but not
including
(1) Certified police officers employed by the city;
(2) Any city employee who is employed in a position normally requiring less than one
thousand(1,000) hours of work per annum;
(3) Any city managerial or professional employee who is employed pursuant to an
individual contract of employment which does not provide for the employee's
participation in this retirement system;
(4) Elected officials of the city;
(5) Positions which are compensated on a basis not subject to the withholding of federal
income taxes or FICA taxes by the city;
(6) Temporary employees.
(7) Retirees reemployed as a part-time employee and subject to Sec. 2-285.
IRCmeans the Internal Revenue Code of 1986, as amended from time to time.
-2-
AGENDA ITEM#7E
MAY 13,2013
Member means an actively employed general employee 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.
Plan Year means the twelve (12) month period beginning October 1 and ending September 30
of the following year.
Retiree means a member who has entered retirement status.
Retirement means a member's separation from city employment with eligibility for immediate
receipt of benefits under the system or entry into the deferred retirement option plan.
Salary means the compensation for services rendered to the city as a general employee report-
able on the member's W-2 form plus all tax deferred, tax sheltered or tax exempt items of income
derived from elective employee payroll deductions or salary reductions. Compensation shall include
base salary or wages, longevity pay, performance bonuses, overtime pay, compensatory time, cost of
living payments and salary or wages while absent from work on account of paid personal leave or
holidays. Compensation shall not include redemptions or payments in consideration of unused
personal leave, the value of any fringe benefit, uniform allowances, equipment allowances,
reimbursement of expenses, or any other item not specifically included. For service earned after
INSERT UNION CONTRACT DATE HERE (the "effective
date"), salary shall not include more than three hundred (300) hours of overtime per calendar year.
Provided however, in any event, payments for overtime in excess of three hundred (300) hours per
year accrued as of the effective date and attributable to service earned prior to the effective date, may
still be included in salary for pension purposes even if the payment is not actually made until on or
after the effective date.
Compensation in excess of the limitations set forth in Section 401(a)(17) of the IRC as of the
first day of the plan year shall be disregarded for any purpose, including employee contributions or
any benefit calculations. The annual compensation of each member taken into account in
determining benefits or employee contributions for any plan year beginning on or after January 1,
2002, may not exceed $200,000, as adjusted for cost-of-living increases in accordance with IRC
Section 401(a)(17)(B). Compensation means compensation during the fiscal year. The
cost-of-living adjustment in effect for a calendar year applies to annual compensation for the
determination period that begins with or within such calendar year. If the determination period
consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise
applicable annual compensation limit multiplied by a fraction, the numerator of which is the number
of months in the short determination period, and the denominator of which is 12. If the
compensation for any prior determination period is taken into account in determining a member's
contributions or benefits for the current plan year, the compensation for such prior determination
period is subject to the applicable annual compensation limit in effect for that prior period. 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
individual who was a member before the first plan year beginning after December 31, 1995.
Spouse means the lawful wife or husband of a member or retiree at the time benefits become
payable.
System means the City of Atlantic Beach General Employees' Retirement System as contained
herein and all amendments thereto.
-3-
AGENDA ITEM#7E
MAY 13,2013
(b) Masculine Gender. The masculine gender, where used herein, unless the context
specifically requires otherwise, shall include both the feminine and masculine genders.
Sec. 2-262 Membership.
(a) Conditions of eligibility. All general employees hired prior to September 1, 2008,
shall continue as members of this system as a condition of employment.
(b) General employees hired on or after September 1, 2008, shall no longer be eligible for
membership in the system. Such members shall participate in a Defined Contribution Retirement
Plan established by the City. The accumulated contributions of such members will be transferred to
a 457 plan.
(c) The system shall be closed to new members effective_(DATE) , 2013.
Sec. 2-263. Board of trustees.
(a) The sole and exclusive administration of and responsibility for the proper operation of
the system and for making effective the provisions of this ordinance is hereby vested in a board of
trustees. The board is hereby designated as the plan administrator. The board shall consist of five
(5) trustees, two (2) of whom, unless otherwise prohibited by law, shall be legal residents of the city,
who shall be appointed by the Atlantic Beach City Commission, and two (2) of whom shall be
members of the system, who shall be elected by a majority of the general employees who are
members of the system. The fifth trustee shall be a resident of the City and shall be chosen by a
majority of the previous four (4) trustees as provided for herein, and such person's name shall be
submitted to the Atlantic Beach City Commission. Upon receipt of the fifth person's name, the
Atlantic Beach City Commission shall confirm the appointment to the board as its fifth trustee. The
fifth trustee shall have the same rights as each of the other four (4) trustees appointed or elected as
herein provided and shall serve a four (4) year term unless he sooner vacates the office. Each
resident trustee shall serve as trustee for a period of four (4) years, unless he sooner vacates the office
or is sooner replaced by the Atlantic Beach City Commission at whose pleasure he shall serve. Each
member trustee shall serve as trustee for a period of four (4) years, unless he sooner leaves the
employment of the city as a general employee or otherwise vacates his office as trustee, whereupon a
successor shall be chosen in the same manner as the departing trustee. A vacancy shall occur on the
board if any member shall resign or any employee representative ceases to be employed by the City.
A vacancy shall occur on the board if any trustee fails to attend three (3) consecutive meetings of the
board unless, in each case, excused for cause by the trustees attending the meeting. Each trustee
may succeed himself in office. DROP participants can be elected as but not vote for elected
Trustees. The board shall establish and administer the nominating and election procedures for each
election. The board shall meet at least quarterly each year. The board shall be a legal entity with,
in addition to other powers and responsibilities contained herein, the power to bring and defend
lawsuits of every kind, nature, and description.
(b) The trustees shall, by a majority vote, elect a chairman, vice-chairman and a secretary.
The secretary of the board shall keep minutes 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.
(c) Each trustee shall be entitled to one (1) 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
abstain from voting as the result of a conflict of interest and shall comply with the provisions of F.S.
112.3143.
-4-
AGENDA ITEM#7E
MAY 13,2013
(d) The board shall engage such actuarial, accounting, legal, and other services as shall be
required to transact the business of the system. The compensation 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 amounts as the board shall agree.
(e) The duties and responsibilities of the board shall include, but not necessarily be
limited to, the following:
(1) To construe the provisions of the system and determine all questions arising
thereunder.
(2) To determine all questions relating to eligibility and membership.
(3) To determine and certify the amount of all retirement allowances or other benefits
hereunder.
(4) To establish uniform rules and procedures to be followed for administrative purposes,
benefit applications and all matters required to administer the system.
(5) To distribute to members, at regular intervals, information concerning the system.
(6) To receive and process all applications for benefits.
(7) 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.
(8) To have performed actuarial studies and valuations, at least as often as required by
law, and make recommendations regarding any and all changes in the provisions of
the system.
(9) To perform such other duties as are required to prudently administer the system.
Sec. 2-264. Finances and fund management.
Establishment and Operation of Fund.
(a) 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 General Employees' Retirement System.
(b) 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.
(c) All funds of the General Employees' 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 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 of the General Employees' Retirement
System. In lieu thereof, the board shall deposit the funds of the General Employees' Retirement
System in a qualified public depository as defined in §280.02, Florida Statutes, which depository with
regard to such funds 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
-5-
AGENDA ITEM#7E
MAY 13,2013
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.
(d) 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:
(1) Current amounts of accumulated contributions of members on both an individual and
aggregate account basis, and
(2) Receipts and disbursements, and
(3) Benefit payments, and
(4) Current amounts clearly reflecting all monies, funds and assets whatsoever attributable
to contributions and deposits from the City, and
(5) All interest, dividends and gains (or losses) whatsoever, and
(6) Such other entries as may be properly required so as to reflect a clear and complete
financial report of the fund.
(e) An audit shall be performed annually by a certified public accountant for the most
recent fiscal year of the system 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.
(f) The board shall have the following investment powers and authority:
(1) 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 Atlantic Beach 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 contribu-
tions 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.
(2) 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 subject to the following:
a. Notwithstanding any limitation in prior city ordinances to the contrary, all
monies paid into or held in the fund may be invested and reinvested in such
securities, investment vehicles or property wherever situated and of whatever
kind, as shall be approved by the board, including but not limited to common
or preferred stocks, bonds, and other evidences of indebtedness or ownership.
b. The board shall develop and adopt a written investment policy statement
setting forth permissible types of investments, goals and objectives of
investments and setting quality and quantity limitations on investments in
accordance with the recommendations of its investment consultants. The
investment policy statement shall be reviewed by the board at least annually.
-6-
AGENDA ITEM#7E
MAY 13,2013
c. In addition, the board may, upon recommendation by the board's investment
consultant, make investments in group trusts meeting the requirements of
Internal Revenue Service Revenue Ruling 81-100 and Revenue Ruling 2011-1
or successor rulings or guidance of similar import, and operated or maintained
exclusively for the commingling and collective investment of monies,
provided that the funds in the group trust consist exclusively of trust assets
held under plans qualified under IRC section 401(a), individual retirement
accounts that are exempt under IRC section 408(e), eligible governmental
plans that meet the requirements of IRC section 457(b), and governmental
plans under IRC section 401(a)(24). For this purpose, a trust includes a
custodial account that is treated as a trust under IRC section 401(f) or under
IRC section 457(g)(3). While any portion of the assets of the fund are
invested in such a group trust, such group trust is itself adopted as a part of the
system or plan,
(3) At least once every three (3) years, and more often as determined by the board, the
board shall retain a professionally qualified independent consultant to evaluate the
performance of all current investment managers and make recommendations regarding
the retention of all such investment managers. These recommendations shall be
considered by the board at its next regularly scheduled meeting.
(4) 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.
(5) Neither the board nor any trustee shall be liable for the making, retention or sale of
any investment or reinvestment made as herein provided, nor for any loss or
diminishment of the fund, except that due to his or its own negligence, willful
misconduct or lack of good faith.
(6) The board may cause any investment in securities held by it to be registered in or
transferred into its name as trustee or into the name of such nominee as it may direct,
or it may retain them unregistered and in form permitting transferability, but the books
and records shall at all times show that all investments are part of the fund.
(7) 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, recapitalizations, consolidations, and similar transactions
with respect to such securities; to deposit such stock or other securities in any voting
trust or any protective or like committee with the trustees or with depositories
designated thereby; to amortize or fail to amortize any part or all of the premium or
discount resulting from the acquisition or disposition of assets; and generally to
exercise any of the 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.
(8) 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.
(9) 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 applica-
ble 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 informa-
tion, 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.
-7-
AGENDA ITEM#7E
MAY 13,2013
(10) Any overpayments or underpayments from the fund to a member, retiree or
beneficiary caused by errors of computation shall be adjusted with interest at a rate
per annum approved by the board in such a manner that the actuarial equivalent of the
benefit to which the member, retiree or beneficiary was correctly entitled, shall be
paid. Overpayments shall be charged against payments next succeeding the
correction or collected in another manner if prudent. Underpayments shall be made
up from the fund in a prudent manner. Overpayments to a deceased retiree,
beneficiary or joint annuitant of less than one monthly payment resulting from the
death of the retiree, beneficiary or joint annuitant shall not be recouped.
(11) The board shall sustain no liability whatsoever for the sufficiency of the fund to meet
the payments and benefits provided for herein.
(12) 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.
(13) 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.
Sec. 2-265 Contributions.
(a) Member contributions.
(1) Amount. Each member of the system shall be required to make regular contributions
to the fund in the amount of five percent (5%) of his salary. Effective on
(INSERT DATE OF CONTRACT HERE) , each member shall be required
to make regular contributions to the fund in the amount of six percent (6%) of his
salary. Member contributions withheld by the City on behalf of the member shall be
deposited with the board immediately after each pay period. The contributions made
by each member to the fund shall be designated as employer contributions pursuant to
§414(h) of the IRC. 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.
(2) Method. Such Member contributions shall be made by payroll deduction.
(b) City contributions. So long as this system is in effect, the City shall make at least
quarterly contributions to the fund in an amount equal to the required City contribution, as shown by
the applicable actuarial valuation of the system.
(c) 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 additional benefits for members, as determined by the
board, and may not be used to reduce what would have otherwise been required City contributions.
Sec. 2-266. Benefit Amounts and Eligibility.
-8-
AGENDA ITEM#7E
MAY 13,20I3
(a) Normal retirement date. A member's normal retirement date shall be the first day of
the month coincident with, or next following the attainment of age sixty (60) and the completion of
five (5) 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 one hundred percent (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.
(b) Normal retirement benefit. A member retiring hereunder on or after his normal
retirement date shall receive a monthly benefit which shall commence on the first day of the month
coincident with or next following his retirement and be continued thereafter during member's lifetime
and ceasing upon death. The monthly retirement benefit shall equal:
(1) for members hired before April 24, 2005, two and eight-five one hundredths percent
(2.85%) of average final compensation, for each year of credited service;
(2) for members hired on or after April 24, 2005, two and one-half percent (2.5%) of
average final compensation, for each year of credited service.
(c) 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 attainment of age fifty-five (55)
and the completion of five (5) years of credited service.
Early retirement under the system is retirement from the City on or after the early
retirement date and prior to the normal retirement date.
(d) 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:
(1) A deferred monthly retirement benefit which shall commence on what would have
been his normal retirement date determined based upon his actual years of credited
service and shall be continued on the first day of each month thereafter. The amount
of each such deferred monthly retirement benefit shall be determined in the same
manner as for retirement on his normal retirement date, determined based upon his
actual years of credited service, except that credited service and average final
compensation shall be determined as of his early retirement date; or
(2) 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 subparagraph (b) above, and is actuarially
reduced from the amount to which he would have been entitled had he retired on the
date which would have been his normal retirement date determined based on his
actual years of credited service as a general employee and with the same number of
years of credited service as at the time his benefits commence and based on his
average final compensation at that date.
(e) Required distribution date. The member's benefit under this Section must begin to be
distributed to the member no later than April 1 of the calendar year following the later of the calendar
year in which the member attains age seventy and one-half (701/2) or the calendar year in which the
member terminates employment with the city.
Sec. 2-267. Pre-retirement death.
-9-
AGENDA ITEM#7E
MAY 13,2013
(a) Prior to eligibility for retirement. The beneficiary of a deceased member who was
not receiving monthly benefits or who was not yet vested (less than five (5) years of credited service
or eligible for early or normal retirement shall receive a refund of one-hundred percent (100%) of the
member's accumulated contributions.
(b) Deceased members vested or eligible for retirement. In the event a vested member
(five (5) years of credited service dies prior to retirement, a pre-retirement death benefit shall be
paid as follows:
(1) Deceased Members with a Designated Beneficiary who is not a Surviving Spouse or
Child. This subsection (1) applies only when the member's spouse and/or children
is/are not the beneficiary or beneficiaries, in which case subsection(2) below applies,
but there is a surviving designated beneficiary. The designated beneficiary shall be
entitled to a benefit as follows:
a. A pension benefit computed according to section 2-266(b)and calculated as if
the member had selected the100% joint and survivor option computed in
accordance with section 2-270(a)(2), and had retired the day preceding his
death, notwithstanding that the member may not have satisfied the conditions
for retirement.
b. A beneficiary may not elect an optional form of benefit, however the board
may elect to make a lump sum payment pursuant to Sec. 2-270, subsection
(g).
c. If a surviving beneficiary commences receiving a benefit under paragraph a.
above, but dies before all payments are made, unless otherwise provided for
herein, the actuarial value of the remaining benefit will be paid to the
surviving beneficiary's estate by December 31 of the calendar year of the
beneficiary's death in a lump sum.
d. The Uniform Lifetime Table in Treasury Regulations § 1.401(a)(9)-9 shall
determine the payment period for the calendar year benefits commence, if
necessary to satisfy the regulations.
(2) Deceased Members with Surviving Spouse and/or Children. This subsection (2)
applies only when the member's spouse and/or child(ren) are the designated
beneficiary or beneficiaries or the deceased member failed to designate a beneficiary,
and leaves a surviving spouse and/or child(ren). Under these circumstances, the
surviving spouse and/or child(ren) shall be entitled to a benefit as follows:
a. If the deceased member is not vested at the time of his death, his surviving
spouse or his child or children (equally), if he leaves no surviving spouse,
shall receive a benefit equal to the benefit provided for in (a) above.
b. If the deceased member is vested at the time of his death, his surviving spouse
and/or child(ren) shall receive a benefit as follows:
1. The surviving spouse shall be paid a pension equal to the greater of
the benefit provided for in (1)a. above or seventy-five (75) percent of
the amount of the life only pension benefit computed in accordance
with section 2-266(b), based on the deceased member's final average
compensation and credited service at the time of death. A surviving
spouse's pension shall terminate upon death. The surviving spouse of
-10-
AGENDA ITEM#7E
MAY 13,2013
any deceased member shall not lose the survivor retirement benefits if
the spouse remarries.
2. The deceased member's unmanied children under the age of nineteen
(19) years, or twenty-three (23) years if enrolled full-time as a student
in an educational institution, shall each be paid an equal share of a
percentage of the retiree's life only pension benefit computed in
accordance with section 2-266(b), based on the deceased member's
final average compensation and credited service at the time of death.
The percent shall be zero (0) percent during periods that a pension is
being paid to the surviving spouse in accordance with the provisions
of paragraph 1. and fifty (50) percent during periods a pension is not
being paid to the surviving spouse. A surviving child's pension shall
terminate upon attainment of age nineteen (19) years or, if over
nineteen (19) years but less than twenty-three (23) years, when no
longer being enrolled as a full-time student in an educational
institution, or upon marriage or death, and the pension of each
remaining eligible child shall be recomputed.
c. Notwithstanding anything contained in this section to the contrary, in any
event, distributions to the spouse beneficiary will begin by December 31 of
the calendar year immediately following the calendar year in which the
member died, or by a date selected pursuant to the above provisions in this
section that must be on or before December 31 of the calendar year in which
the member would have attained 701/2.
(3) Failure to Designate a Beneficiary, No Surviving Beneficiary and No Surviving
Spouse or Children. If a deceased vested member or retiree failed to name a
beneficiary in the manner prescribed in Section 2-271, or if the beneficiary (or
beneficiaries) named by a deceased member or retiree predeceases the member or
retiree and the member or retiree leaves no surviving spouse and/or child(ren), the
death benefit which shall be payable as a lump sum to the estate of member or retiree
shall be the actuarial equivalent of the member's accrued benefit as of the date of
death and the member's entire interest must be distributed to the estate by December
31 of the calendar year containing the fifth anniversary of the member's death.
Sec. 2-268. Disability.
(a) Disability benefits. Any member who has accrued five (5) or more years of credited
service, who shall 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
general employee, shall, upon establishing the same to the satisfaction of the board, be entitled to a
monthly pension equal to two and eight-five one hundredths percent (2.85%) of his average final
compensation multiplied by the total years of credited service for members hired before April 24,
2005, and two and one-half percent (2.5%) of his average final compensation multiplied by the total
years of credited service for members hired on or after April 24, 2005. Terminated persons, either
vested or non-vested, are not eligible for disability benefits, except that those terminated by the City
for medical reasons may apply for a disability within ninety (90) days after termination.
(b) Conditions disqualifying disability benefits. Each member who is claiming disability
benefits shall establish, to the satisfaction of the board, that such disability was not occasioned
primarily by:
(1) Excessive or habitual use of any drugs, intoxicants or narcotics.
-11-
AGENDA ITEM#7E
MAY 13,2013
(2) Injury or disease sustained while willfully and illegally participating in fights, riots or
civil insurrections.
(3) Injury or disease sustained while committing a crime.
(4) Injury or disease sustained while serving in any branch of the Armed Forces.
(5) Injury or disease sustained after his employment as a general employee with the City
of Atlantic Beach shall have terminated.
(6) Willful,wanton or intentional misconduct or gross negligence of the member.
(7) Injury or disease sustained by the member while working for anyone other than the
City and arising out of such employment.
(8) A condition pre-existing the general employee's membership in the system. No
member shall be entitled to a disability pension, 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.
(c) Physical examination requirement. A member 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 retiree receiving disability benefits under provisions of this ordinance may be
required by the board to submit sworn statements of his condition accompanied by a physician's
statement (provided at the retiree's expense) to the board annually and may be required by the board
to undergo additional periodic re-examinations 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
a retiree refuses to submit to such examination, the retiree's disability benefit shall be suspended until
such time as the retiree submits to the examination. 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 general employee, the board shall recommend to the City that the retiree be returned to
performance of duty as a general employee, and the retiree so returned shall enjoy the same rights that
he had at the time he was placed upon. In the event the retiree so ordered to return shall refuse to
comply with the order within thirty (30) days from the issuance thereof, he shall forfeit the right to his
pension.
The cost of the physical examination and/or re-examination of the member claiming or
the retiree receiving disability benefits shall be borne by the fund. All other reasonable costs as
determined by the board incident to the physical examination, such as, but not limited to,
transportation,meals and hotel accommodations, shall be borne by the fund.
If the retiree recovers from disability and reenters the service of the City as a general
employee, 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
-12-
AGENDA ITEM#7E
MAY 13,2013
The board shall have the power and authority to make the final decisions regarding all
disability claims.
(d) 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, retroactive to the date of application or the last day on
payroll, whichever is later, and any retroactive benefit amount shall be paid together with the first
payment. The last payment will be:
(1) If the retiree recovers from the disability, the payment paid preceding the date of such
recovery, or
(2) If the retiree dies without recovering from disability, the payment received preceding
his death.
Provided, however, the disability retiree may select, at any time prior to the date on
which benefit payments begin, an optional form of benefit payment as described in Section 2-270,
subsection(a)(1) or (a)(2), which shall be the actuarial equivalent of the normal form of benefit.
Sec. 2-269. Vesting.
If a member terminates his employment as a general employee, either voluntarily or by
discharge, and is not eligible for any other benefits under this system, 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 based upon his actual years of Credited Service, provided he does not
elect to withdraw his accumulated contributions and provided the member survives to his otherwise
normal or early retirement date. If the member does not withdraw his accumulated contributions and
does not survive to his otherwise normal or early retirement date, his designated beneficiary shall be
entitled to a benefit as provided herein for a deceased member, vested or eligible for retirement under
Sec. 2-267, Pre-Retirement Death. The member may, in lieu of the benefit provided for above, elect
to receive a refund of his accumulated contributions.
Sec. 2-270. Optional Forms of Benefits.
(a) In lieu of the amount and form of retirement income payable in the event of normal or
early retirement (payable for life only) as specified herein, a member, 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:
(1) A retirement income of a monthly amount payable to the retiree for his lifetime, but
with one-hundred twenty (120) payments guaranteed in any event.
(2) A retirement income of a modified monthly amount, payable to the retiree during the
lifetime of the retiree and following the death of the retiree, one hundred (100)
percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent or fifty
(50) percent of such monthly amount payable to a joint pensioner for his lifetime.
Except where the retiree's joint pensioner is his spouse, the payments to the joint
pensioner as a percentage of the payments to the retiree shall not exceed the
applicable percentage provided for in the applicable table in the Treasury regulations.
(See Q&A-2 of 1.401(a)(9)-6)
(3) A retirement income of a modified monthly amount, payable to the retiree during the
lifetime of the retiree and following the death of the retiree, one hundred (100)
-13-
AGENDA ITEM 0 3 7E
MAY 13,
percent, seventy-five (75) percent, sixty-six and two-thirds (66-2/3) percent or fifty
(50) percent of such monthly amount payable to a joint pensioner for his lifetime.
However, in the event the person designated by the retiree predeceases the retiree, the
monthly benefit shall increase to the amount payable under the standard normal form
of payment for the remaining lifetime of the retiree. Except where the retiree's joint
pensioner is his spouse, the payments to the joint pensioner as a percentage of the
payments to the retiree shall not exceed the applicable percentage provided for in the
applicable table in the Treasury regulations. (See Q&A-2 of 1.401(a)(9)-6)
(4) 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.
(5) For members who do not participate in the DROP pursuant to Section 2-286, the
member may elect a percentage of benefit in a lump sum as follows:
a. Ten percent (10%) of the total actuarial equivalent value of the benefit paid as
a lump sum with the remaining ninety percent (90%) paid under the normal
form or as per (1), (2) or (3) above.
b. Fifteen percent (15%) of the total actuarial equivalent value of the benefit paid
as a lump sum with the remaining eighty-five percent (85%) paid under the
normal form or as per(1), (2) or(3) above.
c. Twenty percent (20%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining eighty percent (80%) paid under the
normal form or as per(1), (2) or(3) above.
d, Twenty-five percent (25%) of the total actuarial equivalent value of the benefit
paid as a lump sum with the remaining seventy-five percent (75%) paid
under the normal form or as per (1), (2) or(3) above.
(b) The member, upon electing any option of this Section, will designate the joint
pensioner (subsection (a)(2) or (a)(3) above) or beneficiary (or beneficiaries) to receive the benefit, if
any, payable under the system in the event of member's 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 member has elected an option with a joint pensioner or
beneficiary and member's retirement income benefits have commenced, the 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. In the absence
of proof of good health of the joint pensioner being replaced, the actuary will assume that the joint
pensioner has deceased for purposes of calculating the new payment.
(c) The consent of a member's or retiree's 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.
(d) Upon change of a retiree's joint pensioner in accordance with this Section, the amount
of the retirement income payable to the retiree shall be actuarially determined to take into account the
age and sex of the former joint pensioner, the new joint pensioner and the retiree. Any such retiree
-14-
AGENDA ITEM W 7E
MAY 13,2013
shall pay the actuarial recalculation expenses. Each request for a change will be made in writing and
notarized on a form prepared by the board and on completion will be filed with the board. In the
event that no designated beneficiary survives the retiree, such benefits as are payable in the event of
the death of the retiree subsequent to his retirement shall be paid as provided in Section 2-271.
(e) 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:
(1) If a member or person eligible for a benefit 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 2-267.
(2) If the designated beneficiary (or beneficiaries) or joint pensioner dies before the
member's retirement under the system, the option elected will be canceled
automatically and a retirement income of the normal form and amount will be payable
to the member 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 member prior to his retirement.
(3) If both the retiree and the beneficiary (or beneficiaries) designated by member or
retiree 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 (a), the board may, in its discretion, direct that the commuted value of the
remaining payments be paid in a lump sum and in accordance with Section 2-271.
(4) If a member continues beyond his normal retirement date pursuant to the provisions of
Section 2-266, subsection (a), 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 member in the amount or amounts
computed as if the member had retired under the option on the date on which his death
occurred.
(5) The member's benefit under this section must begin to be distributed to the member no
later than April 1 of the calendar year following the later of the calendar year in which
the member attains age seventy and one-half (701/2) or the calendar year in which the
member terminates employment with the city.
(f) A retiree may not change his retirement option after the date of cashing or depositing
his first retirement check.
(g) 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 monthly income payments to be paid do not exceed one thousand dollars
($1,000.00). Any such payment made to any person pursuant to the power and discretion conferred
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.
Sec. 2-271. Beneficiaries.
(a) Each member or retiree 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
-15-
AGENDA ITEM#7E
MAY 13,2013
payable in the event of his death. Each designation may be revoked or changed by such member or
retiree 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.
(b) If a deceased member or retiree failed to name a beneficiary in the manner prescribed
in subsection (a), or if the beneficiary (or beneficiaries) named by a deceased member or retiree
predeceases the member or retiree, the death benefit, if any, which may be payable under the system
with respect to such deceased member or retiree, shall be paid to the estate of the member or retiree
and the board, in its discretion, may direct that the commuted value of the remaining monthly income
benefits be paid in a lump sum.
(c) Any payment made to any person pursuant to this Section shall operate as a complete
discharge of all obligations under the system with regard to the deceased member and any other
persons with rights under the system and shall not be subject to review by anyone but shall be final,
binding and conclusive on all persons ever interested hereunder.
Sec 2-272. Claims procedures.
(a) The board shall establish administrative claims procedures to be utilized in processing
written requests ("claims"), on matters which affect the substantial rights of any person ("Claimant"),
including members, retirees, beneficiaries, or any person affected by a decision of the board.
(b) The board shall have the power to subpoena and require the attendance of witnesses
and the production of documents for discovery prior to and at any proceedings provided for in the
board's claims procedures. 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.
Sec. 2-273. 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 members in
such a manner as to show the name, address, date of employment and date of termination of
employment.
Sec. 2-274. Maximum pension.
(a) Basic limitation. Notwithstanding any other provisions of this system to the
contrary, the member contributions paid to, and retirement benefits paid from, the system shall be
limited to such extent as may be necessary to conform to the requirements of IRC Section 415 for a
qualified retirement plan. Before January 1, 1995, a plan member may not receive an annual benefit
that exceeds the limits specified in IRC Section 415(b), subject to the applicable adjustments in that
section. On and after January 1, 1995, a plan member may not receive an annual benefit that
exceeds the dollar amount specified in IRC Section 415(b)(1)(A) ($160,000), subject to the applicable
adjustments in IRC Section 415(b) and subject to any additional limits that may be specified in this
System. For purposes of this section, "limitation year" shall be the calendar year.
(b) Adjustments to Basic Limitation forFolm of Benefit.
(1) For a benefit paid in a form to which IRC section 417(e)(3) does not apply (generally,
a monthly benefit), the actuarially equivalent straight life annuity benefit that is the
greater of:
-16-
AGENDA ITEM#7E
MAY 13,2013
a. The annual amount of the straight life annuity (if any) payable to the member
under the plan commencing at the same annuity starting date as the form of
benefit to the member, or
b. The annual amount of the straight life annuity commencing at the same
annuity starting date that has the same actuarial present value as the form of
benefit payable to the member, computed using a 5 percent interest
assumption (or the applicable statutory interest assumption) and (i) for years
prior to January 1, 2009, the applicable mortality tables described in Treasury
Regulation Section 1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any
subsequent Revenue Ruling modifying the applicable provisions of Revenue
Rulings 2001-62), and (ii) for years after December 31, 2008, the applicable
mortality tables described in IRC section 417(e)(3)(B) (Notice 2008-85 or any
subsequent Internal Revenue Service guidance implementing IRC section
417(e)(3)(B)); or
(2) For a benefit paid in a form to which IRC section 417(e)(3) applies (generally, a lump
sum benefit), the actuarially equivalent straight life annuity benefit that is the greatest
of:
a. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form of
benefit payable, computed using the interest rate and mortality table, or tabular
factor, specified in the plan for actuarial experience;
b. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form of
benefit payable, computed using a 5.5 percent interest assumption (or the
applicable statutory interest assumption) and (i) for years prior to January 1,
2009, the applicable mortality tables for the distribution under Treasury
Regulation Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue
Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable
provisions of Revenue Ruling 2001-62), and (ii) for years after December 31,
2008, the applicable mortality tables described in IRC section 417(e)(3)(B)
(Notice 2008-85 or any subsequent Internal Revenue Service guidance
implementing IRC section 417(e)(3)(B)); or
c. The annual amount of the straight life annuity commencing at the annuity
starting date that has the same actuarial present value as the particular form of
benefit payable (computed using the applicable interest rate for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(3) (the 30-year Treasury rate
(prior to January 1, 2007, using the rate in effect for the month prior to
retirement, and on and after January 1, 2007, using the rate in effect for the
first day of the plan year with a one-year stabilization period)) and (i) for years
prior to January 1, 2009, the applicable mortality tables for the distribution
under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality table
specified in Revenue Ruling 2001-62 or any subsequent Revenue Ruling
modifying the applicable provisions of Revenue Ruling 2001-62), and (ii) for
years after December 31, 2008, the applicable mortality tables described in
IRC section 417(e)(3)(B) (Notice 2008-85 or any subsequent Internal Revenue
Service guidance implementing IRC section 417(e)(3)(B)), divided by 1.05.
(c) Benefits Not Taken into Account. For purposes of this Section, the following
benefits shall not be taken into account in applying these limits:
-17-
AGENDA ITEM#7E
MAY 13,2013
(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 IRC and Regulations
thereunder to be taken into account for purposes of the limitation of IRC Section
415(b)(1).
(d) COLA Effect. Effective on and after January 1, 2003, for purposes of applying the
limits under IRC Section 415(b) (the "Limit"), the following will apply:
(1) A member's applicable limit will be applied to the member's annual benefit in the
member's first calendar year of benefit payments without regard to any automatic cost
of living adjustments;
(2) thereafter, in any subsequent calendar year, a member's annual benefit, including any
automatic cost of living increases, shall be tested under the then applicable benefit
limit including any adjustment to the IRC Section 415(b)(1)(A) dollar limit under IRC
Section 415(d), and the regulations thereunder; but
(3) in no event shall a member's benefit payable under the system in any calendar year be
greater than the limit applicable at the annuity starting date, as increased in subsequent
years pursuant to IRC Section 415(d) and the regulations thereunder.
Unless otherwise specified in the system, for purposes of applying the limits under
IRC Section 415(b), a Member's applicable limit will be applied taking into consideration cost of
living increases as required by Section 415(b) of the IRC and applicable Treasury Regulations.
(e) Other Adjustments In Limitations.
(1) In the event the member's retirement benefits become payable before age sixty-two
(62), the limit prescribed by this section shall be reduced in accordance with
regulations issued by the Secretary of the Treasury pursuant to the provisions of IRC
Section 415(b) of the IRC, so that such limit (as so reduced) equals an annual straight
life benefit (when such retirement income benefit begins) which is equivalent to a one
hundred sixty thousand dollar ($160,000) annual benefit beginning at age sixty-two
(62).
(2) In the event the member's benefit is based on at least fifteen (15) years of credited
service as a full-time employee of the police department of the City, the adjustments
provided for in (e)(1) above shall not apply.
(3) The reductions provided for in (e)(1) above shall not be applicable to disability
benefits pursuant to Sec. 2-268, or pre-retirement death benefits paid pursuant to Sec.
2-267.
(4) In the event the member's retirement benefit becomes payable after age sixty-five (65),
for purposes of determining whether this benefit meets the limit set forth in subsection
(a) 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 (10) Years of Participation or Service. The maximum retirement
benefits payable under this section to any member who has completed less than ten (10) years of
credited service with the City shall be the amount determined under subsection (a) 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). The reduction provided by this subsection cannot
reduce the maximum benefit below 10% of the limit determined without regard to this subsection.
-18-
AGENDA ITEM#7E
MAY 13,2013
The reduction provided for in this subsection shall not be applicable to pre-retirement disability
benefits paid pursuant to Sec. 2-268, or pre-retirement death benefits paid pursuant to Sec. 2-267.
(g) Participation in Other Defined Benefit Plans. The limit 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 IRC
Section 414(j) maintained by the City shall apply as if the total benefits payable under all City defined
benefit plans in which the member has been a member were payable from one plan.
(h) Ten Thousand Dollar ($10,000) Limit; Less Than Ten Years of Service.
Notwithstanding anything in this section 2-274, the retirement benefit payable with respect to a
member shall be deemed not to exceed the limit set forth in this subsection (h) of section 2-274 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) for
the applicable plan year and for any prior plan year and the City has not any time maintained a
qualified defined contribution plan in which the member participated; provided, however, that if the
member has completed less than ten (10) years of credited service with the City, the limit under this
subsection (h) of section 2-274 shall be a reduced limit equal to ten thousand dollars ($10,000)
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).
(i) 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 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.
(j) Service credit Purchase Limits.
(1) Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, if a member makes one or more contributions to
purchase permissive service credit under the system, as allowed in Sections 2-283, and
2-284, then the requirements of this section will be treated as met only if:
a. the requirements of IRC Section 415(b) are met, determined by treating the
accrued benefit derived from all such contributions as an annual benefit for
purposes of IRC Section 415(b), or
b. the requirements of IRC Section 415(c) are met, determined by treating all
such contributions as annual additions for purposes of IRC Section 415(c).
c. For purposes of applying subparagraph (j)(1)a.., the System will not fail to
meet the reduced limit under IRC Section 415(b)(2)(C) solely by reason of
this subparagraph c., and for purposes of applying subparagraph (j)(1)b. the
System will not fail to meet the percentage limitation under Section
415(c)(1)(B) of the IRC solely by reason of this subparagraph c.
(2) For purposes of this subsection the term "permissive service credit" means service
credit—
a. recognized by the system for purposes of calculating a member's benefit under
the plan,
b. which such member has not received under the plan, and
-19-
AGENDA ITEM#7E
MAY 13,2013
c. which such member may receive only by making a voluntary additional
contribution, in an amount determined under the system, which does not
exceed the amount necessary to fund the benefit attributable to such service
credit.
Effective for permissive service credit contributions made in limitation years
beginning after December 31, 1997, such term may, if otherwise provided by
the system, include service credit for periods for which there is no
performance of service, and, notwithstanding clause (j)(2)b., may include
service credited in order to provide an increased benefit for service credit
which a member is receiving under the system.
(3) For purposes of applying the limits in this subsection (j)., only and for no other
purpose, the definition of compensation where applicable will be compensation
actually paid or made available during a calendar year, except as noted below and as
permitted by Treasury Regulations Section 1.415(c)-2, or successor regulations.
Unless another definition of compensation that is permitted by Treasury Regulations
Section 1.415(c)-2, or successor regulation, is specified by the system, compensation
will be defined as wages within the meaning of IRC Section 3401(a) and all other
payments of compensation to an employee by an employer for which the employer is
required to furnish the employee a written statement under IRC Sections 6041(d),
6051(a)(3) and 6052 and will be determined without regard to any rules under IRC
Section 3401(a) that limit the remuneration included in wages based on the nature or
location of the employment or the services performed (such as the exception for
agricultural labor in IRC Section 3401(a)(2).
a. However, for calendar years beginning after December 31, 1997,
compensation will also include amounts that would otherwise be included in
compensation but for an election under IRC Sections 125(a), 402(e)(3),
402(h)(1)(B), 402(k), or 457(b). For calendar years beginning after
December 31, 2000, compensation will also include any elective amounts that
are not includible in the gross income of the employee by reason of IRC
Section 132(f)(4).
b. For limitation years beginning on and after January 1, 2007, compensation for
the calendar year will also include compensation paid by the later of 21/2
months after an employee's severance from employment or the end of the
calendar year that includes the date of the employee's severance from
employment if:
1. the payment is regular compensation for services during the
employee's regular working hours, or compensation for services
outside, the employee's regular working hours (such as overtime or
shift differential), commissions, bonuses or other similar payments,
and, absent a severance from employment, the payments would have
been paid to the employee while the employee continued in
employment with the employer; or
2. the payment is for unused accrued bona fide sick, vacation or other
leave that the employee would have been able to use if employment
had continued.
c. Back pay, within the meaning of Treasury Regulations
Section 1.415(c)-2(g)(8), shall be treated as compensation for the limitation
-20-
AGENDA ITEM#7E
MAY 13,2013
year to which the back pay relates to the extent the back pay represents wages
and compensation that would otherwise be included under this definition.
(4) Notwithstanding any other provision of law to the contrary, the board may modify a
request by a member to make a contribution to the system if the amount of the
contribution would exceed the limits provided in IRC Section 415 by using the
following methods:
a. If the law requires a lump sum payment for the purchase of service credit, the
board may establish a periodic payment deduction plan for the member to
avoid a contribution in excess of the limits under IRC Sections 415(c) or
415(n).
b. If payment pursuant to subparagraph (j)(4)a. will not avoid a contribution in
excess of the limits imposed by IRC Section 415(c), the board may either
reduce the member's contribution to an amount within the limits of that section
or refuse the member's contribution.
(5) If the annual additions for any member for a plan year exceed the limitation under
section 415(c) of the code, the excess annual addition will be corrected as permitted
under the Employee Plans Compliance Resolution System (or similar IRS correction
program).
(6) For limitation years beginning on or after January 1, 2009, a member's compensation
for purposes of this subsection (j) shall not exceed the annual limit under section
401(a)(17) of the code.
(k) Additional Limitation on Pension Benefits. Notwithstanding anything herein to the
contrary:
(1) 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 percent (100%) of his average final
compensation. However, nothing contained in this section shall apply to supplemen-
tal retirement benefits or to pension increases attributable to cost-of-living increases or
adjustments.
(2) 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 future, a retirement benefit or pension from
a different employer's retirement system or plan. This restriction does not apply to
social security benefits or federal benefits under Chapter 67, Title 10, U.S. Code.
Sec. 2-275. Minimum distribution of benefits.
(a) General rules.
(1) Effective date. Effective as of January 1, 1989, the plan will pay all benefits in
accordance with a good faith interpretation of the requirements of IRC Section
401(a)(9) and the regulations in effect under that section, as applicable to a
governmental plan within the meaning of IRC Section 414(d). Effective on and after
January 1, 2003, the plan is also subject to the specific provisions contained in this
Section. The provisions of this section will apply for purposes of determining
required minimum distributions for calendar years beginning with the 2003 calendar
year.
-21-
AGENDA ITEM#7E
MAY 13,2013
(2) Precedence. The requirements of this section will take precedence over any
inconsistent provisions of the plan.
(3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this
section other than this subsection (a)(3), distributions may be made under a
designation made before January 1, 1984, in accordance with Section 242(b)(2) of the
Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that
related to Section 242(b)(2) of TEFRA.
(b) Time and manner of distribution.
(1) Required beginning date. The member's entire interest will be distributed, or begin
to be distributed, to the member no later than the member's required beginning date
which shall not be later than April 1 of the calendar year following the later of the
calendar year in which the member attains age seventy and one-half (70 %z) or the
calendar year in which the member terminates employment with the city.
(2) Death of member before distributions begin. If the member dies before distributions
begin, the member's entire interest will be distributed, or begin to be distributed no
later than as follows:
a. If the member's surviving spouse is the member's sole designated beneficiary,
then distributions to the surviving spouse will begin by December 31 of the
calendar year immediately following the calendar year in which the member
died, or by a date on or before December 31 of the calendar year in which the
member would have attained age 70 1/2, if later, as the surviving spouse elects.
b. If the member's surviving spouse is not the member's sole designated
beneficiary, then, distributions to the designated beneficiary will begin by
December 31 of the calendar year immediately following the calendar year in
which the member died.
c. If there is no designated beneficiary as of September 30 of the year following
the year of the member's death, the member's entire interest will be distributed
by December 31 of the calendar year containing the fifth anniversary of the
member's death.
d. If the member's surviving spouse is the member's sole designated beneficiary
and the surviving spouse dies after the member but before distributions to the
surviving spouse begin, this subsection (b)(2), other than subsection (b)(2)a.,
will apply as if the surviving spouse were the member.
For purposes of this subsection (b)(2). and subsection (e), distributions are
considered to begin on the member's required beginning date or, if subsection
(b)(2)d. applies, the date of distributions are required to begin to the surviving
spouse under subsection (b)(2)a. If annuity payments irrevocably commence
to the member before the member's required beginning date (or to the
member's surviving spouse before the date distributions are required to begin
to the surviving spouse under subsection (b)(2)a.) the date distributions are
considered to begin is the date distributions actually commence.
(3) Death After Distributions Begin. If the member dies after the required distribution of
benefits has begun, the remaining portion of the member's interest must be distributed
at least as rapidly as under the method of distribution before the member's death.
(4) Form of distribution. Unless the member's interest is distributed in the form of an
annuity purchased from an insurance company or in a single sum on or before the
required beginning date, as of the first distribution calendar year distributions will be
-22-
AGENDA ITEM#7E
MAY 13,2013
made in accordance with this section. If the member's interest is distributed in the
form of an annuity purchased from an insurance company, distributions thereunder
will be made in accordance with the requirements of Section 401(a)(9) of the IRC and
Treasury regulations. Any part of the member's interest which is in the form of an
individual account described in Section 414(k) of the IRC will be distributed in a
manner satisfying the requirements of Section 401(a)(9) of the IRC and Treasury
regulations that apply to individual accounts.
(c) Determination of amount to be distributed each year.
(1) General requirements. If the member's interest is paid in the form of annuity
distributions under the plan, payments under the annuity will satisfy the following
requirements:
a. The annuity distributions will be paid in periodic payments made at intervals
not longer than one year.
b. The member's entire interest must be distributed pursuant to Sec. 2-266, Sec.
2-267, Sec. 2-269, or Sec. 2-270 (as applicable) and in any event over a period
equal to or less than the member's life or the lives of the member and a
designated beneficiary, or over a period not extending beyond the life
expectancy of the member or of the member and a designated beneficiary.
The life expectancy of the member, the member's spouse, or the member's
beneficiary may not be recalculated after the initial determination for purposes
of determining benefits.
(2) Amount required to be distributed by required beginning date. The amount that must
be distributed on or before the member's required beginning date (or, if the member
dies before distributions begin, the date distributions are required to begin under Sec.
2-266) is the payment that is required for one payment interval. The second payment
need not be made until the end of the next payment interval even if that payment
interval ends in the next calendar year. Payment intervals are the periods for which
payments are received, e.g., monthly. All of the member's benefit accruals as of the
last day of the first distribution calendar year will be included in the calculation of the
amount of the annuity payments for payment intervals ending on or after the member's
required beginning date.
(3) Additional accruals after first distribution calendar year. Any additional benefits
accruing to the member in a calendar year after the first distribution calendar year will
be distributed beginning with the first payment interval ending in the calendar year
immediately following the calendar year in which such amount accrues.
(d) General distribution rules.
(1) The amount of an annuity paid to a member's beneficiary may not exceed the
maximum determined under the incidental death benefit requirement of IRC Section
401(a)(9)(G), and effective for any annuity commencing on or after January 1, 2008,
the minimum distribution incidental benefit rule under Treasury Regulation Section
1.401(a)(9)-6, Q&A-2.
(2) The death and disability benefits provided by the plan are limited by the incidental
benefit rule set forth in IRC Section 401(a)(9)(G) and Treasury Regulation Section
1.401-1(b)(1)(I) or any successor regulation thereto. As a result, the total death or
disability benefits payable may not exceed 25% of the cost for all of the members'
benefits received from the retirement system.
(e) Definitions.
-23-
AGENDA ITEM If 7E
MAY 13,2013
(1) Designated beneficiary. The individual who is designated as the beneficiary under
the plan and is the designated beneficiary under Section 401(a)(9) of the IRC and
Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.
(2) Distribution calendar year. A calendar year for which a minimum distribution is
required. For distributions beginning before the member's death, the first distribution
calendar year is the calendar year immediately preceding the calendar year which
contains the member's required beginning date. For distributions beginning after the
member's death, the first distribution calendar year is the calendar year in which
distributions are required to begin pursuant to Sec. 2-266.
Sec. 2-276. Miscellaneous provisions.
(a) Interest of members in system. All assets of the fund are held in trust, and 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.
(b) No reduction of accrued benefits. No amendment or ordinance shall be adopted by
the City Commission of the City of Atlantic Beach which shall have the effect of reducing the then
vested accrued benefits of members or a member's beneficiaries.
(c) Qualification of system. It is intended that the system will constitute a qualified
public pension plan under the applicable provisions of the IRC for a qualified plan under IRC section
401(a) and a governmental plan under IRC section 414(d), as now in effect or hereafter amended.
Any modification or amendment of the system may be made retroactively, if necessary or appropriate,
to qualify or maintain the system as a Plan meeting the requirements of the applicable provisions of
the IRC as now in effect or hereafter amended, or any other applicable provisions of the U.S. federal
tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder.
(d) Use of forfeitures. Forfeitures arising from terminations of service of members shall
serve only to reduce future City contributions.
(e) Prohibited Transactions. Effective as of January 1, 1989, a board may not engage in
a transaction prohibited by IRC Section 503(b).
(f) USERRA. Effective December 12, 1994, notwithstanding any other provision of this
system, contributions, benefits and service credit with respect to qualified military service are
governed by IRC Section 414(u) and the Uniformed Services Employment and Reemployment Rights
Act of 1994, as amended. To the extent that the definition of "credited service" sets forth
contribution requirements that are more favorable to the member than the minimum compliance
requirements, the more favorable provisions shall apply.
(g) Vesting.
(1) Member will be 100% vested in all benefits upon attainment of the plan's age and
service requirements for the plan's normal retirement benefit; and
(2) A member will be 100% vested in all accrued benefits, to the extent funded, if the
plan is terminated or experiences a complete discontinuance of employer
contributions.
-24-
AGENDA ITEM#7E
MAY 13,2013
(h) Electronic Forms. In those circumstances where a written election or consent is not
required by the plan or the IRC, an oral, electronic, or telephonic form in lieu of or in addition to a
written form may be prescribed by the board. However, where applicable, the board shall comply
with Treas. Reg. § 1.401(a)-21.
Sec. 2-277. Domestic Relations Orders; Retiree Directed Payments; Exemption from
Execution, Non-assignability.
(a) Domestic relations orders.
(1) Prior to the entry of any domestic relations order which affects or purports to affect
the system's responsibility in connection with the payment of benefits of a retiree, the
member or retiree shall submit the proposed order to the board for review to determine
whether the system may legally honor the order.
(2) If a domestic relations order is not submitted to the board for review prior to entry of
the order, and the system is ordered to take action that it may not legally take, and the
system expends administrative or legal fees in resolving the matter, the member or
retiree who submits such an order will be required to reimburse the system for its
expenses in connection with the order.
(b) Retiree directed payments. The board may, upon written request by a retiree or by a
dependent, when authorized by a retiree or the retiree's beneficiary, authorize the system to withhold
from the monthly retirement payment those funds that are necessary to pay for the benefits being
received through the City, and to make any payments for child support or alimony.
(c) 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.
Sec. 2-278. 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. The board is empowered to purge the pension
rolls or correct the pension amount of any person heretofore granted a pension under prior or existing
law or any person hereafter granted a pension 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. Any overpayments or underpayments shall be corrected and paid or repaid in
a reasonable manner determined by the board.
Sec. 2-279. Forfeiture of Pension.
(a) Any 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 without interest as of the date of termination.
Specified offenses are as follows:
(1) The committing, aiding or abetting of an embezzlement of public funds;
-25-
AGENDA ITEM#7E
MAY 13,2013
(2) The committing, aiding or abetting of any theft by a public officer or employee from
employer;
(3) Bribery in connection with the employment of a public officer or employee;
(4) Any felony specified in Chapter 838, Florida Statutes;
(5) The committing of an impeachable offense;
(6) The committing 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 employment
position; or
(7) The committing on or after October 1, 2008, of any felony defined in Section 800.04,
Florida Statutes, against a victim younger than sixteen (16) years of age, or any felony
defined in Chapter 794, Florida Statutes, against a victim younger than eighteen (18)
years of age, by a public officer or employee through the use or attempted use of
power, rights, privileges, duties, or position of his or her public office or employment
position.
(b) 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 impeachable
offense.
(c) 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.
(d) 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.
Sec. 2-280. Indemnification.
(a) To the extent not covered by insurance contracts in force from time to time, the City
shall indemnify, defend 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. 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, defend and hold
harmless any members of the board from the judgment, execution, or levy thereon.
-26-
AGENDA ITEM#7E
MAY 13,2013
(b) 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.
(c) 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.
Sec. 2-281 Direct Transfers of Eligible Rollover Distributions.
(a) Rollover Distributions.
(1) General. This Section applies to distributions made on or after January 1, 2002.
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 (10)
years or more; any distribution to the extent such distribution is required under
section 401(a)(9) of the IRC and the portion of any distribution that is not
includible in gross income. Effective January 1, 2002, any portion of any
distribution which would be includible in gross income as after-tax employee
contributions will be an eligible rollover distribution if the distribution is made
to an individual retirement account described in section 408(a); to an
individual retirement annuity described in section 408(b); to a qualified
defined contribution plan described in section 401(a) or 403(a) that agrees to
separately account for amounts so transferred (and earnings thereon),
including separately accounting for the portion of such distribution which is
includible in gross income and portion of such distribution which is includible
in gross income and the portion of such distribution which is not so includible;
or on or after January 1, 2007, to a qualified defined benefit plan described in
IRC Section 401(a) or to an annuity contract described in IRC Section 403(b),
that agrees to separately account for amounts so transferred (and earnings
thereon), including separately accounting for the portion of the distribution
that is includible in gross income and the portion of the distribution that is not
so includible.
b. Eligible retirement plan: An eligible retirement plan is an individual
retirement account described in section 408(a) of the IRC; an individual
retirement annuity described in section 408(b) of the IRC; an annuity plan
described in section 403(a) of the IRC; effective January 1, 2002, an eligible
deferred compensation plan described in section 457(b) of the IRC which is
maintained by an eligible employer described in section 457(e)(1)(A) of the
-27-
AGENDA ITEM#7E
MAY 13,2013
IRC and which agrees to separately account for amounts transferred into such
plan from this plan; effective January 1, 2002, an annuity contract described in
section 403(b) of the IRC; a qualified trust described in section 401(a) of the
IRC; or effective January 1, 2008, a Roth IRA described in Section 408A of
the IRC that accepts the distributee's eligible rollover distribution. This
definition shall apply in the case of an eligible rollover distribution to the
surviving spouse.
c. Distributee: A distributee includes an employee or former employee. It
also includes the employee's or former employee's surviving spouse and the
employee's or former employee's spouse or former spouse. Effective January
1, 2007, it further includes a nonspouse beneficiary who is a designated
beneficiary as defined by IRC Section 401(a)(9)(E). However, a nonspouse
beneficiary may rollover the distribution only to an individual retirement
account or individual retirement annuity established for the purpose of
receiving the distribution and the account or annuity will be treated as an
"inherited" individual retirement account or annuity.
d. Direct rollover. A direct rollover is a payment by the plan to the eligible
retirement plan specified by the distributee.
(b) 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:
(1) 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 section 401(a) or 403(a) of the IRC, from an annuity contract described in
section 403(b) of the IRC or from an eligible plan under section 457(b) of the IRC
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.
(2) Member Rollover Contributions from IRAs. The system will accept a member
rollover contribution of the portion of a distribution from an individual retirement
account or annuity described in section 408(a) or 408(b) of the IRC that is eligible to
be rolled over.
(3) Elimination of mandatory distributions. Notwithstanding any other provision herein
to the contrary, in the event this Plan provides for a mandatory (involuntary) cash
distribution from the Plan not otherwise required by law, for an amount in excess of
one-thousand dollars ($1,000.00), such distribution shall be made from the Plan only
upon written request of the member and completion by the member of a written
election on forms designated by the board, to either receive a cash lump sum or to
rollover the lump sum amount.
Sec. 2-282. Family and Medical Leave Act.
-28-
AGENDA ITEM#7E
MAY 13,2013
The fractional parts of the twelve (12) month period ending each March 1 that a member is on
leave without pay from the City pursuant to the Family and Medical Leave Act (FMLA) shall be
added to his credited service provided that:
(1) The member contributes to the fund an actuarially determined amount so that the
crediting of the purchased 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.
(2) The request for credited service for FMLA leave time for the twelve (12) month
period prior to each March 1 and payment of professional fees shall be made on or
before March 31.
(3) Payment by the member of the required amount shall be made on or before April 30
for the preceding twelve (12) month period ending March 1 and shall be made in one
(1) lump sum payment upon receipt of which credited service shall be issued.
(4) Credited Service purchased pursuant to this Section shall not count toward vesting.
Sec. 2-283. Military Service Prior to Employment.
The years or fractional parts of years that a general employee serves or has served on active
duty in the military service of the Armed Forces of the United States, the United States Merchant
Marine or the United States Coast Guard, voluntarily or involuntarily and honorably or under
honorable conditions, prior to first and initial employment with the City shall be added to his years of
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 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.
(2) Multiple requests to purchase credited service pursuant to this Section may be made at
any time prior to retirement.
(3) Payment by the member of the required amount shall be made within six (6) months
of his request for credit, but not later than the retirement date, and shall be made in
one (1) lump sum payment upon receipt of which credited service shall be given or the
member may elect to make payment for the requested credited service over a period of
time as provided for in paragraph (6)below.
(4) The maximum credit under this Section shall be five (5) years.
(5) Credited Service purchased pursuant to this Section shall count for all pension
purposes, except vesting and eligibility for not-in-line of duty disability benefits.
(6) In lieu of the lump sum payment provided for in paragraph (3) above, a member
may elect to make payments over a period of time in order to fully pay the amount
provided for in paragraph (1). The member shall be required to notify the board, in
writing, of his election to make payments in the manner provided for in this
paragraph. The payment plan provided for in this paragraph shall be subject to the
following terms:
-29-
AGENDA ITEM#7E
MAY 13,20I3
a. The principal amount to be paid shall be determined as set forth in paragraph
(1) above.
b. The original principal amount shall be amortized over the period beginning
with the first payment and ending at the end of a period equal to the number
of years being purchased and shall be reamortized annually if necessary to
reflect changes in the interest rate provided for in subparagraph c. below.
c. Payments shall consist of principal and interest at a rate equal to the
actuarially assumed rate of return on plan investments.
d. Payments shall be made by payroll deduction from each paycheck on an
after-tax basis.
e. In the event that a member dies, retires (including entry into the Deferred
Retirement Option Plan (DROP)) or otherwise terminates his employment,
without having made full payment of the principal amount necessary to
receive all credited service requested, the member shall receive so much of the
credited service requested, determined using procedures established by the
actuary, which could be purchased with the amount of principal paid by the
member to the date of his death or termination of employment.
f. In the event that the member's employment is terminated for any reason and
he is not entitled to any benefit from the plan other than the return of the
amounts he has had deducted from his paycheck as his normal contribution to
the plan, the amounts which the member has paid pursuant to this subsection
to purchase additional credited service, shall be returned to him including all
interest paid.
Sec. 2-284. Prior government service.
Unless otherwise prohibited by law, the years or fractional parts of years that a general
employee who was previously a member, but who terminated employment and received a refund of
his contributions or who terminated employment and is not otherwise entitled to credited service for
such previous period of employment as a general employee, or the years or fractional parts of years
that a member previously served as an employee for any governmental agency in the United States,
including but not limited to federal, state or local government service, and for which he does not
otherwise qualify for and receive credit under this system, shall be added to his years of 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 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.
(2) Multiple requests to purchase credited service pursuant to this Section may be made at
any time prior to retirement.
(3) Payment by the member of the required amount shall be made within six (6) months
of his request for credit, but not later than the retirement date, and shall be made in
one lump sum payment upon receipt of which credited service shall be given or the
-30-
AGENDA ITEM#7E
MAY 13,2013
member may elect to make payment for the requested credited service over a period of
time as provided for in paragraph(6) below.
(4) The maximum credit under this section for service other than with the City of shall be
five (5) years of credited service and shall count for all pension purposes, except
vesting and eligibility for disability benefits. There shall be no maximum purchase
of credit for prior service with the City of Atlantic Beach and such credit shall count
for all pension purposes, including vesting.
(5) In no event, however, may credited service be purchased pursuant to this Section for
prior service with any other governmental agency, if such prior service forms or will
form the basis of a retirement benefit or pension from a different employers'
retirement system or plan as set forth in Section 2-274, subsection (k)(2).
(6) In lieu of the lump sum payment provided for in paragraph (3) above, a member
may elect to make payments over a period of time in order to fully pay the amount
provided for in paragraph (1). The member shall be required to notify the board, in
writing, of his election to make payments in the manner provided for in this
paragraph. The payment plan provided for in this paragraph shall be subject to the
following terms:
a. The principal amount to be paid shall be determined as set forth in paragraph
(1) above.
b. The original principal amount shall be amortized over the period beginning
with the first payment and ending at the end of a period equal to the number
of years being purchased and shall be reamortized annually if necessary to
reflect changes in the interest rate provided for in subparagraph c. below.
c. Payments shall consist of principal and interest at a rate equal to the
actuarially assumed rate of return on plan investments
d. Payments shall be made by payroll deduction from each paycheck on an
after-tax basis.
e. In the event that a member dies, retires (including entry into the Deferred
Retirement Option Plan (DROP)) or otherwise terminates his employment,
without having made full payment of the principal amount necessary to
receive all credited service requested, the member shall receive so much of the
credited service requested, determined using procedures established by the
actuary, which could be purchased with the amount of principal paid by the
member to the date of his death or termination of employment.
f. In the event that the member's employment is terminated for any reason and
he is not entitled to any benefit from the plan other than the return of the
amounts he has had deducted from his paycheck as his normal contribution to
the plan, the amounts which the member has paid pursuant to this subsection
to purchase additional credited service, shall be returned to him, including all
interest paid.
Sec. 2-285. Reemployment after retirement.
-31-
AGENDA ITEM#7E
MAY 13,2013
(a) Any retiree who is retired under this system, except for disability retirement as
previously provided 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.
(b) After normal retirement. Any retiree who is retired under normal retirement pursuant
to this system and who is reemployed by the city after that retirement shall be ineligible to participate
in this system and shall, during the period of such reemployment, continue to receive retirement
benefits previously earned.
(c) 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 be ineligible
to participate in this system and shall discontinue receipt of benefits from the system. Pension
benefit payments shall be suspended for the period of any such reemployment, but shall be restored
upon the earlier of termination of employment or such time as the reemployed retiree reaches the date
that he would have been eligible for normal retirement under this system had he continued
employment and not elected early retirement. Retirement pursuant to an early retirement incentive
program shall be deemed early retirement for purposes of this section if the member was permitted to
retire prior to the customary retirement date provided for in the system at the time of retirement.
(d) 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.
(e) DROP participants Members or retirees who are or were in the deferred retirement
option plan shall, following termination of employment after DROP participation shall be subject to
the above restrictions.
Sec. 2-286. Deferred retirement option plan.
(a) Definitions. As used in this Section 2-286, the following definitions apply:
(1) "DROP" -- The City of Atlantic Beach General Employees' Retirement System
Deferred Retirement Option Plan.
(2) "DROP Account" -- The account established for each DROP participant under
subsection (c).
(b) Participation.
(1) Eligibility to Participate. In lieu of terminating his employment as a general
employee, any member who is eligible for normal or early retirement under the system
may elect to defer receipt of such service retirement pension and to participate in the
DROP.
(2) Election to Participate. A member's election to participate in the DROP must be
made in writing in a time and manner determined by the board and shall be effective
on the first day of the first calendar month which is at least fifteen (15) business days
after it is received by the board.
(3) Period of Participation. A member who elects to participate in the DROP under
subsection (b)(2), shall participate in the DROP for a period not to exceed sixty (60)
months beginning at the time his election to participate in the DROP first becomes
-32-
AGENDA ITEM#7E
MAY 13,2013
effective. An election to participate in the DROP shall constitute an irrevocable
election to resign from the service of the City not later than the date provided for in
the previous sentence. A member may participate only once.
(4) Termination of Participation.
a. A member's participation in the DROP shall cease at the earlier of:
1. the end of his permissible period of participation in the DROP as
determined under subsection (b)(3); or
2. termination of his employment as a general employee.
b. Upon the member's termination of participation in the DROP, pursuant to
subsection a.l. above, all amounts provided for in subsection (c)(2), including
monthly benefits and investment earnings and losses, shall cease to be
transferred from the system to his DROP Account. Any amounts remaining
in his DROP Account shall be paid to him in accordance with the provisions
of subsection (d) when he terminates employment as a general employee.
c. A member who terminates his participation in the DROP under this subsection
(b)(4) shall not be permitted to again become a participant in the DROP.
(5) Effect of DROP Participation on the System.
a. A member's credited service and his accrued benefit under the system shall be
determined on the date his election to participate in the DROP first becomes
effective. For purposes of determining the accrued benefit, the member's
salary for the purposes of calculating his average final compensation shall
include an amount equal to any lump sum payments which would have been
paid to the member and included as salary as defined herein, had the member
retired under normal or early retirement and not elected DROP participation.
Member contributions attributable to any lump sums used in the benefit
calculation and not actually received by the member shall be deducted from
the first payments to the member's DROP Account. The member shall not
accrue any additional credited service or any additional benefits under the
system (except for any additional benefits provided under any cost-of-living
adjustment for retirees in the system) while he is a participant in the DROP.
After a member commences participation, he shall not be permitted to again
contribute to the system nor shall he be eligible for disability or pre-retirement
death benefits, except as provided for in Section 2-285, Reemployment After
Retirement.
b. No amounts shall be paid to a member from the system while the member is a
participant in the DROP. Unless otherwise specified in the system, if a
member's participation in the DROP is terminated other than by terminating
his employment as a general employee, no amounts shall be paid to him from
the system until he terminates his employment as a general employee.
Unless otherwise specified in the system, amounts transferred from the system
to the member's DROP Account shall be paid directly to the member only on
the termination of his employment as a general employee.
(c) Funding.
-33-
AGENDA ITEM#7E
MAY 13,2013
(1) Establishment of DROP Account. A DROP Account shall be established for each
member participating in the DROP. A member's DROP Account shall consist of
amounts transferred to the DROP under subsection (c)(2), and earnings or losses on
those amounts.
(2) Transfers From Retirement System.
a. As of the first day of each month of a member's period of participation in the
DROP, the monthly retirement benefit he would have received under the
system had he terminated his employment as a general employee and elected
to receive monthly benefit payments thereunder shall be transferred to his
DROP Account, except as otherwise provided for in subsection (b)(4)b. A
member's period of participation in the DROP shall be determined in
accordance with the provisions of subsections (b)(3) and (b)(4), but in no
event shall it continue past the date he terminates his employment as a general
employee.
b. Except as otherwise provided in subsection (b)(4)b., a member's DROP
Account under this subsection (c)(2) shall be debited or credited after each
fiscal year quarter with earnings, determined as follows:
The average daily balance in a member's DROP Account shall be credited or
debited at a rate equal to the net investment return realized by the system for
that quarter. "Net investment return" for the purpose of this paragraph is the
total return of the assets in which the Member's DROP Account is invested by
the board net of brokerage commissions, transaction costs and management
fees.
c. A member's DROP Account shall only be credited or debited with earnings or
losses and monthly benefits while the member is a participant in the DROP.
A member's final DROP account value for distribution to the member upon
termination of participation in the DROP shall be the value of the account at
the end of the quarter immediately preceding termination of participation plus
any monthly periodic additions made to the DROP account subsequent to the
end of the previous quarter and prior to distribution. If a Member fails to
terminate employment after participating in the DROP for the permissible
period of DROP participation, then beginning with the member's first month
of employment following the last month of the permissible period of DROP
participation, the member's DROP Account will no longer be credited or
debited with earnings or losses, nor will monthly benefits be transferred to the
DROP account. All such non-transferred amounts shall be forfeited and
continue to be forfeited while the member is employed by the City. A
member employed by the City after the permissible period of DROP
participation will still not be eligible for pre-retirement death and disability
benefits, and will not accrue additional Credited Service except as provided
for in Section 2-286, Reemployment After Retirement.
(d) Distribution of DROP Accounts on Termination of Employment.
(1) Eligibility for Benefits. A member shall receive the balance in his DROP Account in
accordance with the provisions of this subsection (d) upon his termination of
employment as a general employee. Except as provided in subsection (d)(5), no
amounts shall be paid to a member from the DROP prior to his termination of
employment as a general employee.
-34-
AGENDA ITEM#7E
MAY 13,2013
(2) Form of Distribution.
a. Unless the member elects otherwise, distribution of his DROP Account shall
be made in a lump sum, subject to the direct rollover provisions set forth in
subsection (d)(6). Elections under this paragraph shall be in writing and
shall be made in such time or manner as the board shall determine.
b. Notwithstanding the preceding, if a member dies before his benefit is paid, his
DROP Account shall be paid to his beneficiary in such optional form as his
beneficiary may select. If no beneficiary designation is made, the DROP
Account shall be distributed to the member's estate.
(3) Date of Payment of Distribution. Except as otherwise provided in this subsection
(d), distribution of a member's DROP Account shall be made as soon as
administratively practicable following the member's termination of employment.
Distribution of the amount in a member's DROP account will not be made unless the
member completes a written request for distribution and a written election, on forms
designated by the board, to either receive a cash lump sum or a rollover of the lump
sum amount.
(4) Proof of Death and Right of Beneficiary or Other Person. The board may require
and rely upon such proof of death and such evidence of the right of any beneficiary or
other person to receive the value of a deceased member's DROP Account as the board
may deem proper and its determination of the right of that beneficiary or other person
to receive payment shall be conclusive.
(5) Distribution Limitation. Notwithstanding any other provision of subsection (d), all
distributions from the DROP shall conform to the "Minimum Distribution Of Benefits"
provisions as provided for herein.
(6) Direct Rollover of Certain Distributions. This subsection applies to distributions
made on or after January 1, 2002. Notwithstanding any provision of the DROP to
the contrary, a distributee may elect to have any portion of an eligible rollover
distribution paid in a direct rollover as otherwise provided under the System in Section
2-281.
(e) Administration of DROP.
(1) Board Administers the DROP The general administration of the DROP, the
responsibility for carrying out the provisions of the DROP and the responsibility of
overseeing the investment of the DROP's assets shall be placed in the board. The
members of the board may appoint from their number such subcommittees with such
powers as they shall determine; may adopt such administrative procedures and
regulations as they deem desirable for the conduct of their affairs; may authorize one
or more of their number or any agent to execute or deliver any instrument or make any
payment on their behalf; may retain counsel, employ agents and provide for such
clerical, accounting, actuarial and consulting services as they may require in carrying
out the provisions of the DROP; and may allocate among themselves or delegate to
other persons all or such portion of their duties under the DROP, other than those
granted to them as trustee under any trust agreement adopted for use in implementing
the DROP, as they, in their sole discretion, shall decide. A trustee shall not vote on
any question relating exclusively to himself.
-35-
AGENDA ITEM#7E
MAY 13,2013
(2) Individual Accounts, Records and Reports. The board shall maintain records
showing the operation and condition of the DROP, including records showing the
individual balances in each member's DROP Account, and the board shall keep in
convenient form such data as may be necessary for the valuation of the assets and
liabilities of the DROP. The board shall prepare and distribute to members
participating in the DROP and other individuals or file with the appropriate
governmental agencies, as the case may be, all necessary descriptions, reports,
information returns, and data required to be distributed or filed for the DROP pursuant
to the IRC and any other applicable laws.
(3) Establishment of Rules, Subject to the limitations of the DROP, the board from time
to time shall establish rules for the administration of the DROP and the transaction of
its business. The Board shall have discretionary authority to construe and interpret
the DROP (including but not limited to determination of an individual's eligibility for
DROP participation, the right and amount of any benefit payable under the DROP and
the date on which any individual ceases to be a participant in the DROP). The
determination of the board as to the interpretation of the DROP or its determination of
any disputed questions shall be conclusive and final to the extent permitted by
applicable law.
(4) Limitation of Liability.
a. The trustees shall not incur any liability individually or on behalf of any other
individuals for any act or failure to act, made in good faith in relation to the
DROP or the funds of the DROP.
b. Neither the board nor any trustee of the board shall be responsible for any
reports furnished by any expert retained or employed by the board, but they
shall be entitled to rely thereon as well as on certificates furnished by an
accountant or an actuary, and on all opinions of counsel. The board shall be
fully protected with respect to any action taken or suffered by it in good faith
in reliance upon such expert, accountant, actuary or counsel, and all actions
taken or suffered in such reliance shall be conclusive upon any person with
any interest in the DROP.
(f) General Pro visions.
(1) Amendment of DROP. The DROP may be amended by an ordinance of the City at
any time and from time to time, and retroactively if deemed necessary or appropriate,
to amend in whole or in part any or all of the provisions of the DROP. However,
except as otherwise provided by law, no amendment shall make it possible for any
part of the DROP's funds to be used for, or diverted to, purposes other than for the
exclusive benefit of persons entitled to benefits under the DROP. No amendment
shall be made which has the effect of decreasing the balance of the DROP Account of
any member.
(2) Facility of Payment. If a member or other person entitled to a benefit under the
DROP is unable to care for his affairs because of illness or accident or is a minor, the
board shall direct that any benefit due him shall be made only to a duly appointed
legal representative. Any payment so made shall be a complete discharge of the
liabilities of the DROP for that benefit.
(3) Information. Each member, beneficiary or other person entitled to a benefit, before
any benefit shall be payable to him or on his account under the DROP, shall file with
the Board the information that it shall require to establish his rights and benefits under
the DROP.
-36-
AGENDA ITEM#7E
MAY 13,2013
(4) Prevention of Escheat. If the board cannot ascertain the whereabouts of any person
to whom a payment is due under the DROP, the Board may, no earlier than three (3)
years from the date such payment is due, mail a notice of such due and owing
payment to the last known address of such person, as shown on the records of the
board or the City. If such person has not made written claim therefor within three
(3) months of the date of the mailing, the board may, if it so elects and upon receiving
advice from counsel to the system, direct that such payment and all remaining
payments otherwise due such person be canceled on the records of the system. Upon
such cancellation, the system shall have no further liability therefor except that, in the
event such person or his beneficiary later notifies the board of his whereabouts and
requests the payment or payments due to him under the DROP, the amount so applied
shall be paid to him in accordance with the provisions of the DROP.
(5) Witten Elections, Notification.
a. Any elections, notifications or designations made by a member pursuant to the
provisions of the DROP shall be made in writing and filed with the board in a
time and manner determined by the board under rules uniformly applicable to
all employees similarly situated. The board reserves the right to change from
time to time the manner for making notifications, elections or designations by
members under the DROP if it determines after due deliberation that such
action is justified in that it improves the administration of the DROP. In the
event of a conflict between the provisions for making an election, notification
or designation set forth in the DROP and such new administrative procedures,
those new administrative procedures shall prevail.
b. Each member or retiree who has a DROP Account shall be responsible for
furnishing the Board with his current address and any subsequent changes in
his address. Any notice required to be given to a member or retiree
hereunder shall be deemed given if directed to him at the last such address
given to the board and mailed by registered or certified United States mail.
If any check mailed by registered or certified United States mail to such
address is returned, mailing of checks, advices and direct deposit of funds will
be suspended until such time as the member or retiree notifies the board of his
address.
(6) Benefits Not Guaranteed All benefits payable to a Member from the DROP shall be
paid only from the assets of the member's DROP Account and neither the City nor the
board shall have any duty or liability to furnish the DROP with any funds, securities
or other assets except to the extent required by any applicable law.
(7) , Construction.
a. The DROP shall be construed, regulated and administered under the laws of
Florida, except where other applicable law controls.
b. The titles and headings of the subsections in this Section 2-286 are for
convenience only. In the case of ambiguity or inconsistency, the text rather
than the titles or headings shall control.
(8) Forfeiture of Retirement Benefits. Nothing in this Section shall be construed to
remove DROP participants from the application of any forfeiture provisions applicable
-37-
AGENDA ITEM#7E
MAY 13,2013
to the system. DROP participants shall be subject to forfeiture of all retirement
benefits, including DROP benefits.
(9) Effect of DROP Participation on Employment. Participation in the DROP is not a
guarantee of employment and DROP participants shall be subject to the same
employment standards and policies that are applicable to employees who are not
DROP participants.
Sec. 2-287 to 2-299. Reserved.
dm/ab/gen/03-01-13.ord.clean
-38-