Ordinance No. 58-75-4 v •• 1 ORDINANCE NO. 58-75-4
AN ORDINANCE, ESTABLISHING A RETIREMENT
PROGRAM FOR CITY EMPLOYEES, APPOINTMENT
AND RESPONSIBILITIES OF A BOARD OF TRUSTEES:
MEMBERSHIP OF RETIREMENT SYSTEM: RETIREMENT
CONDITIONS: SURVIVOR PROVISIONS: AMOUNT OF
PENSION: CITY CONTRIBUTIONS: FOR THE CITY
OF ATLANTIC BEACH, FLORIDA, PROVIDING AN
EFFECTIVE DATE.
BE ENACTED BY THE PEOPLE OF THE CITY OF
ATLANTIC BEACH, FLORIDA.
Section 1. The City of Atlantic Beach, Florida
Employees Retirement System is hereby created and established
for the purpose of providing pensions and death benefits for
K the employees of the City of Atlantic Beach, Florida and
their dependents . The effective date of the retirement
system is its final passage .
Definitions:
Section 2. The following words and phrases as used in
this ordinance shall have the following meanings unless a
different meaning is clearly required by the context:
(1) "City" means the City of Atlantic Beach, Florida,
and shall include officers, boards, departments
and instrumentalities.
(2) "Retirement systems" or "system" means the City
of Atlantic Beach Retirement System created and
established by this ordinance.
(3) "Board of Trustees" or "Board" means the board of
trustees provided in this ordinance.
(4) "City employee" means any person in the employ
of the City.
(5) "Member" means any person who is a member of the
400
retirement system.
- 1 -
(6) "Retirant" means any person who is being paid a
pension by the retirement system on account of
the person' s membership in the retirement system.
(7) "Beneficiary" means any person who is being paid,
or has entitlement to future payment, of a pension
or other benefit by the retirement system for a
reason other than the person' s membership in the
retirement system.
(8) "Service" means personal service rendered to the
City by a City employee.
(9) "Credited service" means the service credited a
member as provided in this ordinance.
(10) "Compensation" means the salary or wages paid a
member for personal service rendered the City.
Compensation shall include base salary or wages,
longevity pay, overtime pay, cost of living
payments, and salary or wages while absent from
work on account of vacation, holiday or illness.
Compensation shall not include redemptions or
payments in consideration of unused vacation time
or sick leave, the value of any fringe benefit,
uniform allowances, equipment allowances,
reimbursement of expenses, or any other item not
specifically included.
(11) "Final average compensation" means 1/60 of the
aggregate amount of compensation paid a member
during the period of 60 consecutive months of the
member' s credited service in which the aggregate
amount of compensation paid is greatest. The 60
consecutive months of credited service must be
contained within the member ' s last 120 months of
credited service. If a member has less than 60
consecutive months of credited service, final
average compensation means the aggregate amount of
compensation paid the member divided by the member ' s
months of credited service.
(12) "Regular interest" means such rate or rates of
interest per annum, compounded annually, as the
Beard of Trustees shall from time to time adopt.
- 2 -
(13) "Pension" means a series of monthly payments by the
retirement system throughout the future life of a
` retirant or beneficiary, or for a temporary period,
as provided in this ordinance.
(14) "Pension reserve" means the present value of all
payments likely to be made on account of a pension.
The present value shall be computed on the basis
of such mortality and other tables of experience
and regular annual compound interest as the actuary
appointed by the Board of Trustees shall from time
to time determine.
(15) "Actuarial equivalent" means of equal pension
reserve (present value) .
(16) "Police officer" means a city employee employed in
the police department who holds the rank of patrol
officer or higher, including probationary patrol
officer. The term police officer shall not include
any civilian city employee employed in the police
department, any person employed as a police
officer for an emergency, or any person privately
employed as a police officer.
(17) "Firefighter" means a city employee employed in
the fire department who holds the rank of fire-
fighter or higher, including probationary fire-
fighter. The term firefighter shall not include
any civilian city employee employed in the fire
department, any person employed as a firefighter
for an emergency, or any person privately employed
as a firefighter.
(18) "Workmen ' s Compensation Benefits" means any amounts
paid a retirant, beneficiary, spouse or child
pursuant to any workmen' s compensation or similar
law. Redemptions or settlements of a Workmen' s
Compensation claim shall be considered Workmen' s
Compensation Benefits . Payments in consideration
of medical expenses shall be disregarded in the
determination of Workmen ' s Compensation Benefits.
- 3 -
Benefit Group:
Section 3 . (a) The following benefit groups are hereby
designated for the purpose of determining a member' s appli- •
cable benefit eligibility conditions and benefit amount:
(1) Benefit group general shall consist of all
members not included in one of the benefit groups
which follow:
(2) Benefit group fire shall consist of all members
who are also firefighters;
(3) Benefit group police shall consist of all members
who are also police officers .
(b) Benefit eligibility conditions shall be
based on the member ' s benefit group at the time of termina-
tion of City employment. Benefit amounts shall be based on
the amount of credited service acquired in each benefit group.
Board of Trustees, Responsibilities and Duties:
Section 4. The general administration, management and
responsibility for the proper operation of the retirement
system, and for construing and making effective the provisions
of this ordinance are vested in the Board of Trustees.
Board of Trustees, Composition of:
Section 5. The Board of Trustees shall consist of 5
Trustees as follows:
(1) Two (2) members of the City Commission to be
selected by the City Commission and serve at the
pleasure of the City Commission;
(2) The City Manager, by virtue of his position;
(3) One (1) member of the retirement system who is
also either a police officer or a firefighter to
be elected by the members of the retirement system
who are also police officers or firefighters;
- 4
(4) One (1) member of the retirement system who is
neither a police officer or firefighter to be
• elected by the members of the retirement system
who are neither police officers or firefighters.
The elections provided for in (3) and (4) of this section
shall be held in accordance with such rules as the Board of
Trustees shall from time to time adopt.
Board of Trustees, Term of Office; Oath of Office:
Section 6 . The regular term of office of a member
elected Trustee shall be 4 years, one such term to expire
every 2 years. Each Trustee shall, before assuming the
duties of Trustee, qualify by taking an oath of office to be
administered by the City Clerk. The initial term of office
of the first elected police officer or firefighter Trustee
shall be 2 years.
Beard of Trustees, Vacancy on Board; Filling of Vacancy:
Section 7 . A vacancy shall occur on the Beard of
Trustees if any Trustee ceases to be a City employee. A
vacancy shall occur on the Board of Trustees if any
Ccrrunissicner Trustee or the City Manager ceases to hold the
position of Commissioner, or City Manager. A vacancy shall
occur on the Board of Trustees if any member elected Trustee
fails to attend five consecutive meetings of the Board unless,
in each case, excused fcr cause by the Trustees attending the
meeting.
In the event a vacancy occurs on the Board of Trustees,
the vacancy shall be filled within 90 days for the unexpired
term, if applicable, in the same manner as the position was
previously filled.
Board of Trustees, Meetings; Quorum; Voting; Compensation:
Section 8. The Board of Trustees shall hold meetings
regularly, at least one in each calendar quarter, and shall
designate the time and place of each meeting. All meetings
of the Board shall be open to the public. The Board shall
adopt its own rules of procedure and shall keep a record of
its proceedings . Three (3) Trustees shall constitute a
quorum at any meeting of the Board, and at least 3 concurring
- 5 -
votes shall be necessary for a decision by the Board. Each
Trustee shall be entitled to one vote on each question before
the Board. Trustees shall serve without compensation for
their services as Trustees, but shall be entitled to their
expenses actually and necessarily incurred in attending
meetings of the Board and in performing required duties as
Trustees.
Retirement System Officers and Employed Services:
Section 9. The officers and employed services of the
retirement system shall be as follows:
(1) Chairperson: The Board shall annually elect a
Chairperson and a Chairperson Pro-tem from its
members.
(2) Secretary: The City Manager shall be the Secretary
of the Board and the administrative officer of
the retirement system.
(3) Treasurer: The City Treasurer shall be Treasurer
of the retirement system. The Treasurer shall be
custodian of the assets of the retirement system,
except as to such assets as the Board may from
time to time place in the custody of a nationally
chartered bank.
(4) Legal Advisor: The City Attorney shall be legal
advisor to the Board.
(5) Actuary: The Board shall appoint an actuary who
shall be the technical advisor to the Board
regarding the operation of the retirement system
on an actuarial basis, and who shall perform such
services as are required in connection therewith.
The term Actuary as used in this ordinance shall
mean a member of the American Academy of
Actuaries, or a person who has demonstrated an
educational backgrcund necessary for the practice
of actuarial science, and has at least 5 years of
relevant actuarial experience. A partnership or
corporation may be appointed Actuary if the duties
of Actuary are performed by or under the direct
supervision of a person who meets the preceding •
qualifications.
- 6 -
(6) Medical Director: The Board may appoint as
Medical Director a physician who is not a member,
s retirant or beneficiary. The Medical Director
shall arrange for and pass upon all medical
examinations required in the administration of
the retirement system, and shall investigate all
statements and certificates of a medical nature
which are presented in connection with the
operation of the retirement system. The Medical
Director shall report his conclusions and
recommendations in writing.
(7) Services: The Board is authorized and empowered
to employ such professional and other services
as are required for the proper administration of the
retirement system. Such services, other than
actuarial and medical, shall be obtained and the
compensation for such services shall be fixed in
accordance with City operating procedures.
Board of Trustees, Actuarial Data; Report to City Commission:
Section 10. The Board shall keep or cause to be kept, in
convenient form, such data as shall be recommended by the
Actuary as necessary for the operation of the retirement
system on an actuarial basis. The Board shall keep or cause
to be kept, in convenient form, such additional data as is
required to properly report the operations of the system.
The Board shall render a report to the City Commission on
or before the 1st day of April of each year showing the fiscal
transactions of the retirement system for the year ended the
preceding 30th day of September, the assets of the retirement
system as of the preceding 30th day of September, and a copy
of the most recent actuarial report.
Membership of Retirement System:
Section 11. (a) All persons who are City employees, and
all persons who become City employees, shall be members of
the retirement system, except as provided in Subsection (b)
of this Section.
(b) The membership of the retirement system
shall not include (1) any City employee who is employed in a
- 7 -
•
position normally requiring less than 1,000 hours of work per
annum; ( 2) any City employee who is oo mpensated on a fee basis.
A
(c) Any member who ceases to be a City
employee shall thereupon cease to be a member, except as pro-
vided in Section 18.
(d) The Board of Trustees shall decide all
questions concerning the membership status of any person.
Credited Service:
-
Section 12 . Service rendered by a member shall be
credited to the member' s individual credited service account
in accordance with rules the Board of Trustees shall from
time to time prescribe. In no case shall more than one
year of credited service be credited on account of all
service rendered by a member in any one period of 12 conse-
cutive calendar months. Service shall be credited to the
nearest 1/12 year. The Board of Trustees may credit a
member with a full year of credited service if the member
has rendered at least 10/12 of a year of service during any
period of 12 consecutive calendar months .
Loss of Credited Service:
Section 13 . A member' s credited service shall be
forfeited and no longer in force in the event the member
termiNates City employment with less than 10 years of
credited service.
Reinstatement of Credited Service:
Section 14. A member ' s last forfeited credited service
shall be restored to his/her individual service account if
re-employment by the City and membership in the Retirement
System occurs within 5 years from and after the date of
separation from City employment that caused the forfeiture.
Military Service Credit:
Section 15 . A member who leaves or left City employment
to enter any armed service of the United States during time
of war, period of compulsory military service, or period of
national emergency recognized by the City Commission shall
- 8 -
have required periods of active duty credited as City service
subject to the following conditions:
A
(1) The menber is re-employed by the City within
i year from and after the date of termination of
such active duty;
(2) In no case shall more than 6 years of service
be credited on account of all military service.
The Board of Trustees shall determine the amount of
service to be credited a member under the provisions of this
Section.
Voluntary Retirement Conditions
Section 16 . (a) A member may retire upon satisfaction
of each of the following requirements:
(1) The member files written application for retire-
ment with the Board of Trustees setting forth the
date, not less than 30 days nor more than 90 days
subsequent to the execution and filing thereof,
retirement is to be effective;
(2) The member terminates all City employment prior to
the date retirement is to be effective ;
(3) The member has met one of the age and service
requirements for retirement specified in Sub-
section (b) applicable to the member' s benefit
group.
Upon retirement a member shall be paid a pension computed
according to the applicable Subsections of Section 21 .
(b) The age and service requirements for
voluntary retirement are as follows:
(1) Benefit group fire. The member has attained age 55
or older and has 20 or more years of credited
service in force; or, the member has attained age
60 years or older, and has 10 or more years of
credited service in force;
- 9 -
(2) Benefit group police. The member has attained age
55 years or older and has 20 or more years of
credited service in force; or, the member has
attained age 60 years or older, and has 10 or more
years of credited service in force;
(3) Benefit group general. The member has attained
age 60 years or older, and has 10 or more years
of credited service in force.
Compulsory Separation from Employment; Extensions; Retirement:
Section 17 . (a) A member, except an elected official
of the City, shall be separated from City employment the
first day of the calendar month next following attainment of
the applicable age specified in Subsection (b) , unless an
extension in employment is granted pursuant to Subsection (c) .
(b) The age attainment for compulsory
separation from City employment is as follows:
(1) Benefit group fire. Age 65 years.
(2) Benefit group police. Age 65 years.
(3) Benefit group general. Age 65 years.
(c) A member may be continued in City
employment beyond attainment of the applicable age specified
in Subsection (b) , but not beyond 70 years, subject to the
following conditions:
(1) The member makes written request to the Board of
Trustees for a specified period of continued
employment;
(2) The request is approved by the City Manager,
except if the member ' s position is one obtained
by City Commission appointment; in such case,
approval of the City Commission is required.
(3) The request is approved by the Board of
Trustees.
- 10 -
• (d) A member who has 10 or more years of
credited service in force shall be retired and paid a pension
computed according to the applicable subsections of Section 21
A upon separation from City employment as provided in this
Section.
Deferred Retirement Upon Separation from Employment (Vesting) :
Section 18. (a) A member who terminates City employment
for a reason other than retirement or death, and who has and
maintains in force the applicable period of credited service
specified in subsection (b) shall remain a member for the
sole and exclusive purpose of being entitled to retire upon
attaining age 60 years. Upon retirement the member shall
be paid a pension computed according to the applicable
subsections of section 22 as the subsections were in force
at the time the member left City employment.
(b) The credited service requirement for
separation from City employment with entitlement to deferred
retirement is:
(1) Benefit group fire. Ten years.
(2) Benefit group police. Ten years .
(3) Benefit group general . Ten years.
Disability Retirement - General Conditions for Eligibility:
Section 19. (a) Upon the application of a member or
the member' s department head, a member in the employ of the
City who becomes totally and permanently incapacitated for
employment by the City by reason of a personal injury or
disease and who has in force the applicable period of
credited service specified in subsection (b) may be retired
by the Board subject to the following conditions:
(1) The member is medically examined by or under the
direction of the Medical Director;
(2) The Medical Director certifies to the Board
of Trustees that the member is mentally or
physically totally incapacitated for continued
employment by the City, that such incapacity
• - 11 -
will probably be permanent, and the member should
be retired;
f
(3) The Board of Trustees concurs with the certifica-
ticn of the Medical Director.
(b) The credited service requirement for
disability retirement is as follows:
(1) Benefit group fire. Ten years.
(2) Benefit group police. Ten years.
(3) Benefit group general . Ten years.
(c) Upon disability retirement a member
shall be paid a pension computed according to the applicable
subsections of section 21 . Payment of the pension shall
commence 6 months following termination of City employment.
The disability retirement shall be subject to section 20.
Disability Retirement; Continuation Subject to Re-examination;
Return to Employment:
Section 20. (a) The Board of Trustees may require a
disability retirant to undergo periodic medical examination
by or under the direction of the medical director if the
disability retirant has not attained the following applicable
age:
(1) Benefit group fire . Age 60 years.
(2) Benefit group police. Age 60 years.
(3) Benefit group general. Age 60 years.
If a disability retirant refuses to submit to a medical
examination payment of the disability pension may be suspended
by the Board of Trustees until withdrawal of the refusal.
Should refusal continue for one year all the disability
retirant ' s rights in and to a disability pension may be
revoked by the Board of Trustees. A disability retirant
shall be restored to active employment with the City and
the disability pension discontinued if following a medical
examination the medical director certifies that the
- 12 -
disability retirant is mentally and physically able and
capable of resuming employment with the City, and the Board '
of Trustees concurs in the certification of the Medical
Director. The City shall be allowed reasonable latitude in
placing the tetutned disability retirant in a position
commensurate with the position held at time of disability
retirement.
(b) A disability retirant who has been
restored to employment with the City as provided in Subsection
(a) shall again become a member of the retirement system.
The disability retirant ' s credited service at time of retire-
ment shall be restored to full force. Service shall be
credited for the period the disability retirant was being
paid a disability pension.
Amcunt of Level Straight Life Pension:
Section 21. (a) Benefit group fire. Subject to
Secticn 25, the amount of level straight life pension shall
be equal to the retiring member' s benefit group fire
credited service multiplied by 2.0 percent of the retiring
member' s final average compensation.
(b) Benefit grcup police . Subject to
Section 25, the amount of level straight life pensicn shall be
equal to the retiring member ' s benefit group police credited
service multiplied by 2 . 0 percent of the retiring member ' s
final average compensation.
(c) Benefit group general. Subject to
Section 25, the amount of level straight life pension shall
be equal to the retiring member ' s benefit group general
credited service multiplied by the sum of 2.0 percent.
Optional Forms of Pension Payment:
Section 22 . A member may elect to be paid under one of
the following optional forms of payment in lieu of the level
straight life form of payment. The election must be made
in writing and filed with the Board of Trustees prior to
the date retirement is effective. Payment will be made
under the level straight life form of payment if a timely
election cf an optional form of payment is not made. The
amount of pension under Option A and Option B shall be the
- 13 -
actuarial equivalent of the amount of pension under the
level straight life form of payment.
Option A - 100% Survi :or Pension: Und3r Option A, a
retirant shall be paid a reduced pension for life with
the provision that upon the retirant ' s death, the
reduced pension shall be continued throughout the
future lifetime of and paid to such person having an
insurable interest in the retirant ' s life, as the
retirant shall have nominated by written designation
duly executed and filed with the Board of Trustees
at the time of election of the optional form of payment.
Option B - 50% Survivor Pension: Under Option B, a
retirant shall be paid a reduced pension for life with
the provision that upon the retirant ' s death, one-half
of the reduced pension shall be continued throughout
the future lifetime of and paid to such person having
an insurable interest in the retirant' s life, as the
retirant shall have nominated by written designation
duly executed and filed with the Board of Trustees
at the time of election of the optional form of payment.
Option C - Social Security Co-ordinated Pension: Under
Option C, a retirant shall be paid an increased pension
to attainment of age 65 years, and a reduced pension
thereafter. The increased pension paid to attainment
of age 65 years shall approximate the sum of the
reduced pension payable thereafter and the retirant ' s
estimated Social Security primary insurance amount.
Option C is available only to benefit group general
members who retire pursuant to Section 16 or Section 18.
Death While in City Employment - Elective Survivor Pension:
Section 23. A member who has 10 or more years of credited
service in force may nominate a '-)eneficiary whom the Board of
Trustees finds to be dependent upon the member for at least
50 percent of his/her support due to lack of financial means.
A member may revoke the nomination of beneficiary at any time
and again nominate a beneficiary whom the Board of Trustees
finds to be dependent upon the member for at least 50 percent
of his/her support due to lack of financial means. The
nomination of beneficiary shall be in writing and filed with
the Board of Trustees. The nomination of beneficiary shall
- 14 -
be null and void upon the member' s retirement or prior
termination of City employment . Upon the death of a member
who has a valid nomination of beneficiary in force, the
beneficiary, if living, shall be paid a level straight life
pension computed according to Section 21 in the same manner
in all respects as if the member had elected Option A
provided in Section 22 and retired the day preceding his/her
death, notwithstanding that the member may not have
satisfied the conditions for retirement.
Death While in City Employment - Automatic Pension to Spouse
and/or Children:
Section 24. (a) The applicable benefits provided in
subsections (b) and (c) shall be paid if a member who has
10 or more years of credited service in force dies while
in the employ of the City. The provisions of this section
shall not apply in the case of the death of ember who has
a valid-eignation of beneficiary_inforce pursuant to
Section 23.
(b) Subject to the subsection (d) , the
person to whom the deceased member was married at the time
of death shall be paid a pension equal to a percent of the
amount of level straight life pension computed according to
the applicable subsection of Section 21, based on the
deceased member ' s final average compensation and credited
service.
The percent shall be equal to the applicable following
percent:
(1) Benefit group fire. Seventy-five percent.
(2) Benefit group police. Seventy-five percent.
(3) Benefit group general. Seventy-five percent.
A surviving spouse ' s pension shall terminate upon
remarriage or death.
(c) The deceased member' s unmarried
children under the age of 19 years shall each be paid an
equal share of a level straight life pension computed
according to the applicable subsection of Section 21, based
on the deceased member' s final average compensation and
- 15 -
credited service.
• The percent shall be equal to the applicable following
percent:
(1) Benefit group fire. Zero percent during periods a
pension is being paid in accordance with the
provisions of subsection (b) . Fifty percent during
periods a pension is not being paid in accordance
with the provisions of subsection (b) .
(2) Benefit group police. Zero percent during periods
a pension is being paid in accordance with the
provisions of subsection (b) . Fifty percent during
periods a pension is not being paid in accordance
with the provisions of subsection (b) .
(3) Benefit group general. Zero percent during
periods a pension is being paid in accordance with
the provisions of subsection (b) . Fifty percent
during periods a pension is not being paid in
accordance with the provisions of subsection (b) .
A surviving child' s pension shall terminate upon attainment
of age 19 years, marriage, adoption, or death, and the
pension of each remaining eligible child shall be recomputed.
Maximum Amount of Pension:
Section 25. In no case shall the annualized amount of a
pension paid a member or the annualized amount of all pensions
paid on account of the death of a member exceed the difference
between (i) 80 percent of the member ' s final average compensa-
tion and (ii) the member' s initial annualized primary
insurance amount under the federal old age, survivors,
disability and health insurance program, or in the event of
the death of the member, the annualized periodic benefit
paid by the federal old age, survivors, disability, and
health insurance program; and, any Workmen' s Compensation
benefits.
Subrogation Rights:
Section 26. In the event a member, retirant or bene-
ficiary becomes entitled to a pension as the result of an
- 16 -
accident or injury caused by the act of a third party, the
( City shall be subrogated to the rights of such member,
retirant or beneficiary against such third party to the
extent of pensions which the City pays or becomes liable
to pay on account of such accident or injury.
Reserve for Retired benefit Payments:
Section 27 . The reserve for retired benefit payments
shall be the account from which shall be paid all pensions
as provided in this ordinance. Should any disability
retirant be returned to the employ of the City the pension
reserve at the date of return shall be transferred from the
reserve for retired benefit payments to the reserve for
employee contributions and the reserve for employer contri-
butions in the proportion transfers were made from such
accounts at the time of retirement.
Reserve for Employer Contributions; City Contribution:
Section 28. (a) The reserve for employer contributions
shall be the account to which shall be credited contributions
made by the City and the State of Florida to the retirement
system, and from which shall be made transfers as provided in
this Section.
(b) Each year following receipt of the
report of the annual actuarial valuation, the excess, if any,
of the reported value of pensions being paid and likely to
be paid retirants and beneficiaries over the balance in the
reserve for retired benefit payments shall be transferred
from the reserve for employer contributions to the reserve for
retired benefit payments.
(c) The financial objective of this
ordinance is to require City contributions to the retirement
system each year which together with other sources of income
shall be sufficient to (i) fully fund the cost of benefits
likely to be paid on account of service rendered by members
during the year, and (ii) finance unfunded costs of benefits
likely to be paid on account of service rendered by members
prior to the current year over a period of not more than 40
years. Such contributions shall be computed as level percents
of member payroll in accordance with generally accepted
actuarial principles on the basis of such rates of interest
- 17 -
and tables of experience as the Board of Trustees shall from
time to time adopt . The City shall also contribute the anti- '
cipated cost of any insurance coverage provided retirants and
beneficiaries, to the extent such cost cannot be covered by
the unencumbered balance in the reserve for undistributed
investment income. The Board shall annually certify to the
City Commission the contributions determined according to
this Section, and the Commission shall appropriate and pay
to the retirement system, during the next fiscal year, the
contributions so certified.
Reserve for Undistributed Investment Income:
Section 29. The reserve for undistributed investment
income shall be the account to which shall be credited all
interest, dividends, and other income from the investment of
retirement system assets, all gifts and bequests. received by
the retirement system, all unclaimed accumulated contributions
and pensions, and all other monies received by the retirement
system the disposition of which is not specifically provided.
There shall be transferred from the reserve for undistributed
investment income all amounts required to credit regular
interest to the reserve for employer contributions, and the
reserve for retired benefit payments. Whenever the Board of
Trustees determines the balance in the reserve for undistri-
buted investment income is more than sufficient to cover
current charges to the account, the excess or any part thereof
may be used to provide contingency reserves, or to meet
special requirements of the other reserve accounts of the
retirement system. Whenever the balance in the reserve for
undistributed investment income is insufficient to meet the
current charges to the account, the amount of the insuffi-
ciency shall be transferred from the reserve for employer
contributions.
Investment of Retirement System Assets:
Section 30. The Board of Trustees shall be the Trustee
of the monies and assets of the retirement system. The
Board shall have full power and authority to invest and
reinvest such monies and assets subject to all terms,
conditions, limitations and restrictions imposed by the State
of Florida on the investments of public employee retirement
systems. The Board shall employ outside investment counsel
to advise the Board in the making and disposition of
- 18 -
investments . All monies and assets of the retirement system
shall be held for the sole purpose of meeting disbursements '
A authorized in accordance with the provisions of this
ordinance, and shall be used for no other purposes.
Retirement System Divisions:
Section 31. The retirement system shall consist of
three divisions, one for members who are police officers, or
one for members who are firefighters, and one for all other
members. Separate accounting of the transactions of the
retirement system shall be maintained for each division and
shall clearly indicate the equity of each division in the
assets of the retirement system. The account separation
shall be effective as of June 1, 1976 . Each division shall
be regarded as a separate trust fund. The provisions of this
section refer only to the accounting records of. the retirement
system and shall not be construed as requiring a physical
segregation of the assets of the retirement system between the
divisions.
Expenses:
Section 32. The expenses of administering the retirement
system shall be paid by the City.
Insurance Coverage for Retirants and Beneficiaries:
Section 33 . The Board of Trustees shall pay the premiums
applicable to insurance coverage provided retirants and
beneficiaries to the extent not paid by deductions from the
pensions of retirants and beneficiaries. Such payment shall
be made only in those fiscal years authorized by specific
resolution of the City Commission. Payments shall be charged
to the unencumbered balance in the reserve for undistributed
investment income. If such unencumbered balance be
insufficient the deficiency shall be charged to the reserve
for employer contributions.
Method of Making Payments:
Section 34. All payments shall be made according to the
provisions of the City Charter and City Ordinances governing
the disbursement of City monies. No payment shall be made
that has not been authorized by a specific or continuing
- 19 -
resolution of the Board of Trustees.
Assignments Prohibited:
Section 35. The right of a person to a pension, any
optional benefit, and any other right accrued or accruing to
any person under the provisions of this ordinance, and any
monies and assets belonging to the retirement system, shall
not be subject to execution, garnishment, attachment, the
operation of bankruptcy or insolvency law, or any other process
of law whatsoever, and shall be unassignable except as is
specifically provided in this_ ordinance. If a member is
covered under a group insurance or pre-payment plan parti-
cipated in by the City, and should the member or his/her
beneficiary be permitted to and elect to continue such
coverage as a retirant or beneficiary, the member or bene-- -
ficiary may authorize the Board of Trustees to deduct
required payments to continue coverage under such group
insurance or pre-payment plan. The City shall have the right
of setoff for any claim arising from embezzlement by or fraud
of a member, retirant or beneficiary.
Errors:
Section 36. Should any change in the records result in
any member, retirant or beneficiary being paid from the
retirement system more or less than would have been paid had
the records been correct, the Board of Trustees shall correct
such error and, as far as practicable, shall adjust the
payment in such manner that the actuarial equivalent of the
benefit to which the member, retirant or beneficiary was
correctly entitled shall be paid.
Protection Against Fraud:
Section 37 . Whoever with intent to deceive shall make
any statements and/or reports required under this ordinance
which are untrue, or shall falsify or permit to be falsified
any record or records of the retirement system, or who shall
otherwise violate, with intent to deceive, any of the terms
or provisions of this ordinance, shall be guilty of a City
offense and upon conviction, shall be fined not to exceed
$1,000 plus costs of prosecution, or sentenced to 90 days
imprisonment, or both, at the discretion of the Ccurt.
- 20 -
Laws Inconsistent Repealed:
Section 38. All provisions of law, ordinance, or local
act inconsistent with the provisions of this ordinance are
hereby repealed to the extent of such inconsistency.
Validity; Severability:
Section 39. If. any section, subsection, paragraph,
sentence, clause or phrase of this ordinance is for any
reason held to be invalid or unconstitutional, such holding
shall not be construed as affecting the validity of any of
the remaining sections, subsections, paragraphs, sentences,
clauses or phrases of this ordinance, or the ordinance as
an entirety, it being the legislative intent that this
ordinance shall stand notwithstanding the invalidity of
any section or part of any section.
Effective Date:
Section 40. The effective date of this crdinance shall
be upon its final passage.
Passed by the City Commission on first reading
December 8, 1975 .
Passed by the City Commission cn second reading
December 8, 1975.
Passed by the City Commission on third and final reading
December 22, 1975.
ATTEST:
CERTIFICATION /.
I certify this to be a true and Acting City Clerk
correct copy of the record in
my office.
WITNESSETH my hand and official
seal of the City ofateet ed
Florida, this the o23 day of
- 21 -
(c'c�r1J City erlc