Ordinance No. 58-98-25 v • ORDINANCE NO. 58-98-25
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA, AMENDING CHAPTER 2, ADMINISTRATION,
ARTICLE VI, EMPLOYEE BENEFITS, DIVISION 3,
RETIREMENT SYSTEM, SEC. 2-262, TO CLARIFY
DEFINITION OF RETIRANT; SEC. 2-264, TO CLARIFY
BOARD OF TRUSTEES RESPONSIBILITY; SEC. 2-267, TO
ESTABLISH STAGGERED FOUR YEAR TERMS; SEC. 2-
268, TO REDUCE NUMBER OF ALLOWABLE MISSED
MEETINGS; 2-270(4), TO CORRECT SPELLING ERROR;
2-270(6), TO ESTABLISH ADMINISTRATIVE MANAGER
AND DELETE MEDICAL DIRECTOR; 2-270(7), TO
ESTABLISH MEDICAL PROFESSIONAL AND
PROCEDURES TO HIRE AND COMPENSATE; SEC. 2-
271(b)(2), TO ALLOW EXCLUSION OF MANAGERIAL OR
PROFESSIONAL UNDER CONTRACT; 2-271(3), DELETE;
•
2-271(4), TO RE-NUMBER AND EXCLUDE POSITIONS
NOT SUBJECT TO FWH & FICA TAXES; 2-271(5), TO
EXCLUDE TEMPORARY EMPLOYEES; 2-271(6), TO
ALLOW OPTION OF PARTICIPATING FOR EXECUTIVE
OR DEPARTMENT HEADS; 2-271(c), TO DEFINE
A&-
TERMINATION OF MEMBERSHIP; SEC. 2-274, TO
REQUIRE REPAYMENT ON REHIRING WHEN REFUND
OF CONTRIBUTIONS RECEIVED; SEC. 2-275(a)(3), TO
REQUIRE MILITARY SERVICE CREDIT IN
ACCORDANCE WITH THE IRS CODE; SEC. 2-276(a)(1),
TO DELETE DEADLINES WHEN APPLYING FOR
RETIREMENT; 2-276(a)(2), TO DEFINE RETIREMENT
CONSISTENT WITH EMPLOYMENT AFTER
RETIREMENT PROVISIONS; 2-276(c)(1), TO ALLOW
REEMPLOYMENT TO CERTAIN POSITIONS WITHOUT
LOSS OF PENSION AND DELETE WAITING PERIOD FOR
RESTORATION OF BENEFITS; 2-276(c)(2)&(3), ALLOWS
REEMPLOYMENT TO POSITIONS REQUIRING LESS
THAN 1000 HOURS WITH PENSION BENEFITS
SUSPENDED; 2-276(c)(3), TO DELETE DUE TO
LANGUAGE CONFLICTING WITH SUBSECTION (1) AND
(2); SEC. 2-277, TO DELETE FOR NONCOMPLIANCE
WITH STATE LAW; SEC. 2-278(a) TO DELETE
REFERENCE TO AGE AND PROVIDE FOR A DEFERRED
RETIREMENT; SEC. 2-279(a), TO DELETE REFERENCE
TO AGE; 2-279(a)(1), TO INCLUDE STATE LAW
• 1
• PRESUMPTIVE DISEASES FOR POLICE AND FIRE
PERSONNEL; 2-279(b), TO DEFINE DISABILITY AS
FUNCTIONAL DISABILITY WITHIN BENEFIT GROUP; 2-
279(d), TO MAKE PERIODIC EXAMINATION
PERMISSIVE BY BOARD OF TRUSTEES, AND ALLOW
SUSPENSION OF BENEFITS ON REFUSAL TO SUBMIT
TO A PERIODIC EXAMINATION; 2-279(e), TO PROVIDE
A 42% MINIMUM DISABILITY PENSION FOR POLICE
AND FIRE PERSONNEL; 2-279(1), TO CLARIFY DATE OF
LAST BENEFIT PAYMENT; 2-279(g), TO DEFINE
RECOVERY FROM DISABILITY AS FUNCTIONAL
WITHIN BENEFIT GROUP; SEC. 2-280(b), TO PROVIDE
CONTINUITY WITH SECTIONS 2-270(6)(7) AND 2-279(b);
2-280(c), TO PROVIDE CONTINUITY WITH SEC. 2-274;
SEC. 2-282(1) AND (2), TO ESTABLISH DESIGNATED
BENEFICIARY AS RECIPIENT OF BENEFIT; 2-282(3), TO
DELETE REFERENCE TO AGE AND MAKE BENEFIT
AVAILABLE TO ALL MEMBERS; 2-282(4), TO ALLOW
BOARD TO PROVIDE OTHER BENEFITS; SEC. 2-283(b),
TO DELETE REFERENCE TO SUBSECTION; SEC. 2-
284(a), TO PROVIDE ADDITIONAL OPTIONS FOR
DEATH IN PERFORMANCE OF DUTY; 2-284(b), TO
• DELETE REFERENCE TO REMARRIAGE OF SPOUSE
DUE TO NONCOMPLIANCE WITH LAW; 2-284(c), TO
PROVIDE FOR EXTENDED BENEFIT WHILE CHILDREN
ARE STILL IN SCHOOL; SEC. 2-285(c), TO ESTABLISH
COMPLIANCE WITH INTERNAL REVENUE CODE; SEC.
2-286, TO PROVIDE THE RETIREMENT SYSTEM WITH
SUBROGATION RIGHTS; SEC. 2-287, TO DELETE; SEC.
2-288, TO PROVIDE STATE REQUIRED TIME PERIODS;
SEC. 2-289, TO DELETE; SEC. 2-290, TO ESTABLISH
BOARD OF TRUSTEES INVESTMENT
RESPONSIBILITIES; SEC. 2-292, TO AUTHORIZE
PURCHASE OF INSURANCE FOR BOARD OF TRUSTEES;
SEC. 2-293, TO DELETE; SEC. 2-295(a), TO ESTABLISH
PROHIBITION AGAINST GARNISHMENT AND INCLUDE
IN CITY'S RIGHT OF OFFSET FORFEITURE OF
BENEFIT; SEC. 2-295(b) TO ALLOW DIRECT
TRANSFERS OF ELIGIBLE ROLLOVER
DISTRIBUTIONS; SEC. 2-296, TO ESTABLISH BOARD OF
TRUSTEES AUTHORITY TO CORRECT INACCURATE
BENEFIT PAYMENTS; SEC. 2-297, TO ALLOW
FORFEITURE OF BENEFITS FOR VIOLATIONS
• 2
• CONTAINED IN STATE LAW; SEC. 2-298(d), TO RE-
NUMBER CURRENT PARAGRAPH; PROVIDING FOR A
SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY
AND I'ROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach, Florida has an interest in the future retirement of
its employees and wishes to improve the retirement system whenever feasible; and
WHEREAS, the City of Atlantic Beach, Florida recognizes the requirement and desires
to ensure compliance of its pension ordinance and all sections thereof with all State and Federal
laws governing governmental pension plans; and
WHEREAS, Chapter 2, Administration, Article VI, Division 3, Retirement System, of the
Code of Ordinances of the City of Atlantic Beach, Florida, must comply with all State and Federal
laws governing pension plan it is hereby amended as follows:
NOW THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE
CITY OF ATLANTIC BEACH, FLORIDA, AS FOLLOWS:
Section 1. The definition of"Retirant" in Section 2-262 of the Atlantic Beach Code is
• amended as follows:
Retirant shall mean any person who has satisfied the condition for receiving a benefit and
is being paid a pension by the retirement system on account of the person's membership in the
retirement system.
Police officer shall mean a city employee employed by the police department who is
certified or required to be certified as a law enforcement officer in compliance with Sections
943.13 and 14, Florida Statures, and 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.
Section 2. Section 2-264 of the Atlantic Beach Code is hereby amended as follows:
The general administration, management, and responsibility for the proper operation of the
retirement system, and for construing, interpreting, and making effective the provisions of this
division, and for making recommendations to the City Commission on matters concerning this
retirement system are vested in the board of trustees.
Section 3. Section 2-267 of the Atlantic Beach Code is hereby amended as follows:
• 3
• The regular term of office of a member of the board of trustees shall be four two years for
civilian members and four two years for employee representatives, unless they terminate
employment, whereupon a new election will be held by the members of the plan four to fill the
unexpired term of their trustee representatives, and one year for the trustee selected by the other
four members of the board. Each trustee shall, before assuming the duties of trustees, qualify by
taking an oath of office to be administered by the city clerk, whereupon a trustee's term of office
shall begin. However, upon the expiration of the terms of the civilian trustees and employee
representative trustees in office at the time this ordinance is adopted, the term of the next
succeeding civilian member shall be for one year, the term for the next succeeding police officer
or firefighter representative shall be for two years and the term for the next succeeding non-police
officer non-firefighter employee representative shall be for three years, with all civilian member
and employee representative trustees having four year terms thereafter.
Section 4. Section 2-268(a) of the Atlantic Beach Code is hereby amended as follows:
(a) A vacancy shall occur on the board of trustees if any civilian member shall resign
or any employee representative ceases to be employed by the city. A vacancy shall occur on the
board if any member-elected trustee fails to attend five three consecutive meetings of the board
unless, in each case, excused for cause by the trustees attending the meeting.
Section 5. Section 2-270(2) of the Atlantic Beach Code is hereby amended as follows:
• (2) Secretary: The-City-Manager—orshall be-the-secretary of-the
Board and--the-administrative-officer-of-the The board shall annually elect a:
secretary from its members who shall sign the minutes of each meeting and be the custodian of the
retirement system's records.
Section 6. Section 2-270(4) of the Atlantic Beach Code is hereby amended as follows:
(4) Legal Advisor:The board is empowered to employee independent legal council
counsel but is authorized to utilize the services of the City Attorney.
• 4
• Section 7. Section 2-270(6) of the Atlantic Beach Code is hereby amended as follows:
(6) 1Vfeelkol Director: The board may appoint as medical who
- .- , - ' . . .- - . - -.• al-.' - . . . . _- .r and--pass-upon all
medical .' -1 ' - . • ' . '. . - retirement-system;-and-shall-investigate all
statements --of--a-medical- nature which are-presented-in-connection-with-the
operation of-the--retires The medical--director--shall-report-his-conclusions-and
recommendations-in--w WI iting.
(6) Administrative Manager: The board may employ or contract for the services
of an individual, firm or corporation, to be known as the "administrative manager", who shall,
under the direction of the board or any appropriate committee thereof, be ministerially responsible
to:
(a) Administer the office or offices of the retirement system and of the board;
02) Coordinate and administer the accounting, bookkeeping and clerical services;
(c) Provide for the coordination of actuarial services furnished by the actuary;
fsll Prepare (in cooperation or appropriate with the consulting actuary or other
advisors) reports and other documents to be prepared, filed or disseminated by or
• on behalf of the retirement system in accordance with law;
( Perform such other duties and furnish such other services as may be assigned,
delegated or directed or as may be contracted by or on behalf of the board.
Section 8. Section 2-270(7) of the Atlantic Beach Code is hereby amended as follows:
(7) Services: The Board is authorized and empowered to employ such
professional, medical, technical or other advisors as are required for the proper administration of
the retirement system. These services . - . • . . .. -•• . ; shall be obtained and the
compensation for these services shall be fixed determined in accordance with city-operating
procedures established by the board.
Section 9. Section 2-271(b)(2) and (3) of the Atlantic Beach Code is hereby amended
as follows:
(b)(2) Any city managerial or professional employee who is compensated--on--a fee-basis
employed pursuant to an individual contract of employment which does not provide for the
employee's participation in this retirement system;
(b)(3) -Any Person .. .. . . . . . . . .-nsation s
approved by the city commission.
4111 5
• (b)(4)(3) Elected officials of the city.
(b)(4) Positions which are compensated on a basis not subject to the withholding of
federal income taxes or FICA taxes by the city.
(b)(5) Temporary employees.
(b)(6) Any person initially employed as or promoted to a position designated by the City
as Executive or Department Head shall elect to participate or not participate in the retirement
system. Such election shall be irrevocable for as long as the employee holds such executive or
department head position. Should any such member elect to discontinue participation in the
retirement system, the member's entitlement to benefits hereunder shall be governed by the
system's provisions in effect at the time of such discontinuance.
(c) An individual shall cease to be a member upon termination of employment by the
City, or upon ceasing to be employed in a position regularly requiring 1,000 or more hours of
work in a year, or upon becoming employed in an excluded position.
Section 10. Section 2-274 of the Atlantic Beach Code is hereby amended as follows:
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 five
years from and after the date of separation from city employment that caused the forfeiture
provided that the member repays to the retirement system the contributions refunded under
Section 2-298(c) hereof plus interest at the actuarially assumed rate in accordance with terms
established by the board of trustees.
Section 11. Section 2-275 of the Atlantic Beach Code is hereby amended as follows:
(3) Notwithstanding any provision of this article to the contrary, contributions,
benefits and service credit with respect to qualified military service will be provided in accordance
with §414(u) of the Internal Revenue Code.
Section 12. Section 2-276(a)(1) and (2) of the Atlantic Beach Code is hereby amended
as follows:
(1) The member files written application for retirement with the board of trustees
setting forth the date, . - • • • • • • • • - • '0 • • subsequent to-the-execution
and-filing-thereof, retirement is to be effective.
(2) The member terminates all of his/her then—current city employment normally
requiring 1000 hours of work or more per annum on or before prior-to the date retirement is to be
effective;
• 6
Section 13. Section 2-276(c)(1), (2), and (3) of the Atlantic Beach Code is hereby
amended as follows:
(c) Employment After Retirement:
(1) Any person who has retired as a member of this retirement system may be
reemployed by the city in a position normally requiring less than 1000 hours of
work per annum and receive retirement benefits from his/her previous employment
and compensation from his/her reemployment_ -not
'.-. .. . .- . •9 . - . . • • - • • .1 . . - ••. . • earned
retirem- .- - • - - ' - • • . • - '.d-immediately
followi . .- . ' • . - • - .
(2) Any person who has retired as a member of this retirement system and is
subsequently reemployed by the city in any position normally requiring 1000 hours
or more of work per annum shall have his/her pension benefit suspended during the
period of such reemployment . • - . - • - •- • - - • - - •
• - . • I 1 - - . . • - .1 . • . 9- - •. - . - • - - .- -
and shall receive additional credited service from his/her reemployment.
(3) • .- . . •• . 1 '. . . . . • . •'.
i ; • . .. .1 . •• . • - . . • -. . • - • • . - . - . . - . of
(a) . . ' - . ; . to the
(b) . •- - - •1 - - . - - --suspended for the i emaindtr of the twelve
month-period;
(c) - - •-. . . . - giving of this written
a - - - - ' - . - • . . -,, -
.. - . .1 • . - - . - . . - - .. . _ . '. -period- has
• . " - • 9- deck
Section 14. Section 2-277(a), (b), (c) and (d) of the Atlantic Beach Code is hereby
deleted in its entirety.
• 7
• Section 15. Section 2-278(a) of the Atlantic Beach Code is hereby amended as follows:
(a) A member of the retirement system who terminates city employment prior to
satisfying the requirements for voluntary retirement under Section 2-276 es--city
employment for a reason other than retirement or death, who has not received a refund of his or
her member contributions, and who has and maintains in force the applicable period of credited
service specified in subsection (b) shall remain a member • - • - . • - . 've purpose-to be
entitled-to-retire and be entitled to be paid a pension upon attaining age-60-years the age and
service requirements for voluntary retirement, as set forth in Section 2-276. Upon retirement
attaining the age and service requirement for voluntary retirement, the member shall be paid a
pension computed according to the applicable subsections of Section 2-2821 as the subsections
were in force at the time a member left city employment.
Section 16. Section 2-279(a), (b), (d), (e), (f) and (g) of the Atlantic Beach Code is
hereby amended as follows:
(a) A member having five or more continuous years of credited service and having
contributed to the retirement system for five years or more may retire from the service of the city
if,-priorretirement-date, he becomes totally and permanently disabled as defined in
subsection (b) by reason of any cause other than a cause set out in subsection (c) on-or after-the
the---plan. Such retirement shall herein be referred to as "disability retirement."
• The prOvisionS-fbrTlisabllity--ot - ' -_• -• • • •• • •• • • • • • • • • • a ii,e,icher who-has
reached-early-or-normal ietirement age. The Ffive years of credited service requirement shall not
apply to police officers and firefighters disabled (as defined herein) in the line of duty. The
minimum benefit for any police officer or firefighter disabled in the line of duty shall be forty-two
percent of the final average salary compensation, regardless of years of credited service.
(1) For fire and police groups any permanent disability, as defined in subsection (a) of
this section, which is the result of or caused by tuberculosis, hepatitis,
meningococcal meningitis, hypertension, heart disease or hardening of the arteries
shall be presumed to have been incurred in the line of duty unless the contrary is
shown by competent evidence or unless a physical examination of the member
conducted upon initial hiring by the city revealed the existence of such condition at
that time, and provided that a member claiming disability due to tuberculosis or
meningococcal meningitis provides the affidavit required by Section 112.181(2)
FSS.
(b) A member will be considered totally disabled if, in the opinion of the board of
trustees, the member he is totally and permanently prevented from rendering useful and efficient
service as a ,
(1) As a firefighter, if a member of benefit group fire,
• 8
• �2) As a police officer, if a member of benefit group police; or
L3j As a city employee, if a member of benefit group general
•. • • 99 . - .4 • .'cabled-it-in the opinion
, - ' • - . . .. . . -. . ' . . . . d-permanently-from-a
cause-otherthan-as-specified-fir subsection-(-07
(d) No member shall be permitted to retire under the provisions of this section until
he/she is examined by a duly qualified physician or surgeon, to be selected by the board of trustees
for that purpose, and is found to be disabled in the degree and in the manner specified in this
section. Any member retiring under this section shall may be examined periodically by a duly
qualified physician or surgeon or board of physicians and surgeons to be selected by the board of
trustees for that purpose, to determine if such disability has ceased to exist. If a member refuses
to submit to such an examination, the member's disability pension shall be suspended until such
time as the member submits to the examination.
(e) The benefits payable to a member who retires from the service of the city with a
total and permanent disability as a direct result of a disability commencing prior to his normal
retirement date is the monthly income computed according to the applicable subsections of
Section 2-281 or, if a police officer or firefighter, 42% of final average compensation, whichever
• is greater.
(f) The monthly retirement income as computed in Section 2-281 to which a member
is entitled in the event of his disability retirement shall be payable monthly-on-the-first-tlay-of the
first-month after the board of trustees determine such entitlement retroactive to the date of
application or the last day on payroll, whichever is later. If the member recovers from the
disability prior to his normal retirement date, the last payment will be the payment due next
preceding the date of such recovery. If the member dies without recovering from his disability or
attains his normal retirement date while still disabled, the last payment will be the payment due
next preceding his death.
(g) If the board of trustees finds that a member who is receiving a disability retirement
income is, at any time prior to his normal retirement date, no longer disabled, as provided herein,
the board of trustees shall direct that the disability retirement income be discontinued. Recovery
from disability as used herein means the ability of the member to render useful and efficient
service as an employee of the city within the benefit group to which the member belonged at the
time the disability benefit was granted, regardless of whether the member is reemployed by the
city.
• 9
• Section 17. Section 2-280(a), (b) and (c) of the Atlantic Beach Code is hereby
amended as follows:
(a) The Board of Trustees may require a disability retirant to undergo periodic medical
examination . • . . . - - •• '• • - .' . •• - . if the disability retirant has not
attained the following applicable age:
(1) Benefit group fire:Age sixty(60)years;
(2) Benefit group police:Age sixty(60)years;
(3) Benefit group general:Age sixty (60)years.
(b) 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 (1) year all the disability retirant's rights in and to a disability
pension may be revoked by the board of trustees. - •' • •• ' • - ' • • - • -• • • 1
• - ••' - • .1 • - •' . 1' ' • .- •• . . • . -• • . • •••
_ -n edical
. 1 • .
. - - • 1 - • - - . - .' . .' ' • - .1 - . • .+ . . • . • . . -
. . .. . . - • - 1 • • - •.• - ' •, .1 1 - 1•• I . . - - • . }•• -
. •'• •• •- •
'•' .1 1' - • . - ' • .1 .- . • •• -• -. . . . - . . • . - ' -pla�+cing-Llle
•
retirement-.
(c) 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
.1 1' -• - • • - • - . O - - • - • • 1 • -. Service shall be
credited for the period the disability retirant was being paid a disability pension.
Section 18. Section 2-282 of the Atlantic Beach Code is hereby amended as follows:
In no event may a member's annual benefit exceed the lesser of:
(1) Option A; one hundred percent survivor pension: Under 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 . •' . . • - • - - • -, 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.
(2) Option B;fifty percent 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
•
10
• 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.
(3) Option C; social security coordinated pension: Under Option C, a retirant shall
be paid an increased pension to attainment of the age sixty-f- when the
retirant is eligible to receive regular social security retirement benefits, and a
reduced pension thereafter. The increased pension paid to attainment of regular
social security retirement age - shall approximate the sum of the
reduced pension payable thereafter and plus the retirant's estimated social security
primary insurance amount. Option C—is ava fable only to-benefit-group general
members-who retire-pursuant-to-Section 2-276-or Section
(4) Other benefit form. Any other actuarially equivalent form of benefit requested
by a member and approved, in their sole discretion, by the board of trustees.
Section 19. Section 2-283(b) of the Atlantic Beach Code is hereby amended as follows:
(b) 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
2-281 in the same manner in all respects as if the member had elected Option A provided in
• Section 2-282 and retired the day preceding his/her death, notwithstanding that the member may
not have satisfied the conditions for retirement. Upon a member's retirement, resignation or
termination as a city employee, eligibility for the death benefit payable under this Section 2-2-8-1-
will automatically terminate.
Section 20. Section 2-284 of the Atlantic Beach Code is hereby amended as follows:
Alternate death while in city employment, pension to spouse and/or
children.
(a) The applicable benefits provided in subsections (b) and (c) of this subsection or, if
the member designated the member's spouse or children, as set forth below, the benefits provided
in Section 2-283, whichever are greater, shall be paid if a member of the retirement system who
has five (5) or more years of credited service in-force and dies while in the employ of the city.
The provisions of this section shall not apply in the case of death of a member who has a valid
designation of beneficiary, other than the member's spouse or children as set forth below, in force
pursuant to Section 2-283.
(b) Subjectto-subsection-(d),, tThe 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 2-281, based on the deceased
member's final average compensation and credited service. The percent shall be equal to the
•
11
• applicable following percent:
(1) Benefit group fire: Seventy-five (75) percent;
(2) Benefit group police: Seventy-five (75) percent;
(3) Benefitgroup general: Seventy-five (75) percent.
A surviving spouse's pension shall terminate upon remarriage of death.
(c) The deceased member's unmarried children under the age of nineteen (19) years,
or 23 years if enrolled full-time as a student in an educational institution shall each be paid an
equal share of a level straight life pension computed according to the applicable subsection of
Section 2-281, 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. Zero (0) percent during periods a pension is being paid in
accordance with the provisions of subsection (b). Fifty (50) percent during periods
a pension is not being paid in accordance with the provisions of subsection (b);
(2) Benefit group police. Zero (0) percent during periods a pension is being laid 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 (0) percent during periods a pension is being
paid in accordance with the provisions of subsection (b). Fifty (50) 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 nineteen (19) years or,
if over nineteen, upon no longer being enrolled as a full-time student in an educational institution,
marriage, adoptio,i or death, and the pension of each remaining eligible child shall be recomputed.
Section 21. Section 2-285 of the Atlantic Beach Code is hereby amended as follows:
(c) In no event may a member's annual benefit exceed the lesser of:
(1) One Hundred Fifty Thousand dollars (adjusted for cost of living in accordance
with section 415(d) of the Internal Revenue Code, but only for the year in which
such adjustment is effective); or
(2) Not withstanding the provisions of paragraphs (1) and (2) above, the annual
benefit payable to a member having at least fifteen years of service shall not be less
•
12
• than the annually adjusted amount provided in the provisions of IRC Section
415(d).
(3) Compensation in excess of limitations set forth in Section 401(a)(17) of the
Internal Revenue Code shall be disregarded. The limitation on compensation for
an "eligible employee" shall not be less than the amount, which was allowed to be
taken into account hereunder as in effect on July 1 1993. "Eligible employee" is an
individual who was a member before the first plan year beginning after December
31, 1995.
If the member has less than ten years of service with the employer (as defined in
Section 415(b)(5) of the Internal Revenue Code and as modified by Section
415(b)(6)(D) of the Internal; Revenue Code), the applicable limitation in
subsection (1) or subsection (2) of this subsection shall be reduced by multiplying
such limitation by a fraction, not to exceed one. The numerator of such fraction
shall be the number of years, or part thereof, of service with the employer, the
denominator shall be ten years. For purposes of this subsection, annual benefit
means a benefit payable annually in the form of a straight-line annuity with no
ancillary or incidental benefits and with no member or rollover contributions. To
the extent that ancillary benefits are provided, the limits set forth in subsections (1)
and (2) of this subsection will be reduced actuarially, using an interest rate
• assumption equal to the greater of five percent or the interest rate used in the most
recent annual actuarial valuation, to reflect such ancillary benefits. If distribution
of retirement benefits begins before age 62, the dollar limitation as described in
subsection (1) of this subsection shall be reduced actuarially using an interest rate
assumption equal to the greater of five percent or the interest rate used in the most
recent annual actuarial valuation; however, retirement benefits shall not be reduced
below $75,000.00 if payment of benefits begins at or after age 55. If retirement
benefits begin after age 65, the dollar limitation of subsection (1) of this subsection
shall be increased actuarially using an interest assumption equal to the lesser of five
percent or the interest rate used in the most recent annual actuarial valuation. For
purposes of this subsection, average annual compensation for a member's three
highest paid consecutive years means the member's greatest aggregate
compensation during the period of three consecutive years in which the individual
was an active member of the plan. The special maximum retirement income
limitation applicable to police officers at the normal retirement date shall be as set
forth in Section 415(G) and (H) of the Internal Revenue Code of 1986 and
amendments thereto and such amount shall be adjusted in accordance with
regulations promulgated by the Secretary of the Treasury or his/her delegate.
Section 22. Section 2-286 of the Atlantic Beach Code is hereby amended as follows.
If a member of the retirement system, retirant or beneficiary becomes entitled to a pension
•
13
• as the result of an accident or injury caused by the act of a third party, the city retirement system
shall be subrogated to the rights of such member, retirant or beneficiary against such third party to
the extent of pensions which the city retirement system pays or becomes liable to pay on account
of such accident or injury.
Section 23. Section 2-287 of the Atlantic Beach Code is hereby deleted.
Section 24. Section 2-288 of the Atlantic Beach Code is hereby amended as follows:
Reserve--for-e1 ; cCity contribution.
(a) - - •- • - . • •- • .. '• : 1 •- - • •. • •• .11 be
- .' - • . '. . '• . . - . • - ' • .. I - . - I - - ' - - • - , .. • • •• •
.. . - . . - . . . • •'. - • ' u - '• . The plan shall be funded by contributions from
member contributions, as provided in Section 2-298, state funding provided for in Sections
175.101 & 175.121 of the Florida State Statutes, contributions from the city and other income
sources as authorized by law.
(b) -. . • ••• _ - -•• • - - .• • - .. 1 • . • . . .•1 •. uation-,—the
• - •. . . - • ..'. • • • - •: . and
S
- - .- • - • • •- • .. . • . • - ' -V .- - • - • - benefit
payments. State funding shall be provided from premium taxes collected and disbursed pursuant
to F. S. sections 175.101 and 185.121, which Moneys shall be deposited into the fund within five
calendar days of receipt by the city with the understanding that these premium tax revenues shall
be deposited into and become an integral part of this fund and may not be used for any other
purpose.
(c) - .A '. 90 - '• • 1 .'•' '• ' • -. . - ' . • Is . -to—the
- -. •-.1 - - •• • - . . - . • - . •- . - •.
(1) . • . . - • • •- - • • - •.'• • • •. . - •• • -. . •
members-cluring-the-year;and
(2) • .. II I I • . • - - • - • • . - •.1• . • . • - . - - dered
I . •- • .• • - . - • • • - • . '.• • • • - • • . (40)
years. City contributions shall be made to the plan, on at least a quarterly basis, in
an amount which, together with the member contributions provided for in section
2-298 and the state premium taxes funding provided for in subsection(b) and other
income sources as authorized by law, sufficient to meet the normal cost of the plan
and to fund the actuarial deficiency over a period of not more than forty (40)
years, as determined by the F. S. required annual actuarial valuation.
• 14
• 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 and tables of
experience as the board of trustees shall from time to time adopt. The city shall also contribute
the anticipated cost of any insurance coverage provided retirants and beneficiaries, to the extent
such cost cannot be covered by the unencumbered balance in the plan.
The board shall annually certify to the city he contributions
determined according to this section, and the commission-city shall appropriate and pay to the
retirement system,--during-the-next-fiscal-year; the contributions so certified.
fid,) All benefits and expenses shall be paid in accordance with the provisions of this
pension plan and consistent with Florida Statutes and the Internal Revenue Code.
Section 25. Section 2-289 of the Atlantic Beach Code is hereby deleted.
Section 26. Section 2-290 of the Atlantic Beach Code is hereby amended as follows:
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
, . 1' '• , . '• . 1 • ,e . 1 • - . -
investment-adviser to • •' •• .1 • •1 • •' •. monies-and
- . - - - . - .1 1 - - . . - . - ea 1. -
. . . . '. . I 1' ••' •'. , .1 1 a - . - , • . . -r
1 , 1 , - 990 , • I - - .1 • - .1 1 • - - . - . - - - - 1 I 1
•
(a) . . • . . / • • . . .1 ,.1 1- , . • - .. 1 -I . • - •11 - .
•
19 1 .1 - . /. . '. , . . . •• .1 1 ..1 . . '. '. • 1 - . . • - 1 - . • •
.1 1 .. I .1 . 90 . '.
(b) : . '_ '• . - • -. . -- . ' . 1 '_• '• :1 .1 •1 - -. . • a 1.1 • 1
(c) Bonds, stocks, or other evidences of indebtedness-issued or guaranteed by a
corporation-organized • • - - • • - . ; -. . - , .1 . -, . . -. - ' . • . e
V/ 1 - 1 . - , . ;. . • 1 1'. 1 . •'1 -•.
(i-) . •. . . 1 1 . .1 • • - . . - . - - .: ; . • . • .
exchan:- . . 1 - . . _ ' . - E - - • . 'ons-bya
'mayor ating-service.
(2) 91.14 . 1 .1 . . - . - •1 • 1 - - . • - -
• 15
. common-stock-or • • - • . • • - • ' : company,-nor s
_nohall-the-aggregate
investn . • • .• • ercent handing
capital-stock of the company, nor shall the-aggregate-ofits-investments-ander this
paragraph exceed fifty (50) percent-of the-fund's-assets:
Investments—shall not be made in any stocks, bonds;--or—other-securities—owned-or
contralled-by-a-govea ninent other than that of the-United a--several-states. The
board of trustees o . . - • •• • •-i . . •••- • • •• - • - • • commission-may-provide
gre. - : percent-in-equity-stocks: in their sole discretion, to
invest and reinvest such funds as are not necessary for current expenditures or liquid reserves, as
they may from time to time determine. The Trustees may sell, exchange or otherwise dispose of
such investments at any time. The Trustees shall have the authority, in respect to any stocks,
bonds or other property, real or personal, held by them as Trustees, to exercise all such rights,
powers and privileges as might be lawfully exercised by any person owning similar stocks, bonds
or other property in his own right. The trustees are authorized to vary from the investment
procedures outlined in Chapters 175 and 185, Florida Statutes, and invest in those stocks, bonds
and other securities permitted by the investment policies or guidelines adopted by the trustees.
Delegation and Allocation of Investment Functions.
(1) The Trustees shall have the power and authority to appoint one or more
• investment managers who shall be responsible for the management, acquisition,
disposition, investing and reinvesting of such of the assets of the Trust Fund as the
Trustees shall specify. Any such appointment may be terminated by the Trustees
upon written notice. The fees of such investment manager shall be paid out of the
Trust Fund. The Trustees shall require that the investment manager acknowledge
in writing that it is a named fiduciary with respect to the plan.
(2) In connection with any allocation or delegation of investment functions under this
section, the Trustees shall, from time to time, adopt appropriate investment
policies or guidelines, which may vary from the investment procedures outlined in
Chapters 175 and 185, Florida Statutes.
Section 27. Section 2-292 of the Atlantic Beach Code is hereby amended as follows:
The expenses of administering a retirement system, including the premiums for fiduciary
liability and waiver of recourse insurance covering the board of trustees and the retirement
system, shall be paid by the city.
Section 28. Section 2-293 of the Atlantic Beach Code is hereby deleted.
Section 29. Section 2-295 of the Atlantic Beach Code is hereby amended as follows:
•
16
• (a) The right of a person to a pension, disability, death or survivor benefit, any
optional-benef t and any other right accrued or accruing to any person under the provisions of
this division, and any monies in 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
division. If a member is covered under a group insurance or prepayment plan participated in by
the city, and should the member or his/her beneficiary be permitted to and elect to continue the
coverage as a retirant or beneficiary, the member or beneficiary may authorize the board of
trustees to deduct required payments to continue coverage under the group insurance or
prepayment plan. The city shall have the right of set off for any claim arising from embezzlement
by or fraud of a member, retirant or beneficiary in addition to any other remedies, including
forfeiture of benefits, provided by law.
Q Direct transfers of eligible rollover distributions. This subsection applies to
distributions made on or after October 1, 1993. Notwithstanding any provision of the plan 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 of trustees, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee
in a direct rollover.
(1) Eligible rollover distribution means any distribution of all or any portion of
• the balance to the credit of the distributee, except that an eligible rollover distribution does
not include any distribution that is one of a series of substantially equal periodic payments
(not less frequently than annually) made for the life (or life expectancy) of the distributee
or the joint lives (or joint life expectancies) of the distributee and the distributee's
designated beneficiary. or for a specified period of ten years or more; any distribution to
the extent such distribution is required under Section 401(a)(9) of the Internal Revenue
Code; and the portion of any distribution that is not includable in gross income
(determined without regard to the exclusion for net unrealized appreciation with respect to
employer securities).
(2) Eligible retirement means an individual retirement account described in
Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in
Section 408(b) of the Internal Revenue Code, an annuity plan described in Section 403(a)
of the Internal Revenue Code, or a qualified trust described in Section 401(a) of the
Internal Revenue Code, that accepts the distributee's eligible rollover distribution.
However, in the case of an eligible rollover distribution to the surviving spouse, an eligible
retirement plan is an individual retirement account or individual retirement annuity.
(3) Distributee includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse, or the employee's or former
employee's spouse or former spouse who is the alternate payee under an income
deduction order, is a distributee with regard to the interest of the spouse or former spouse.
• 17
Direct rollover means a payment by the plan to the eligible retirement plan
specified by the distributee.
Section 30. Section 2-296 of the Atlantic Beach Code is hereby amended as follows:
Should . . - ' - - . • - • the board of trustees determine that any member,
retirant or beneficiary is being paid from the retirement system more or less than is would--have
-- - - . .-- correct, the board of trustees shall correct the 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.
Section 31. Section 2-297 of the Atlantic Beach Code is hereby amended as follows:
Any member who is convicted as provided in F.S. Section 112.3173 of a specified offense
committed prior to retirement, or whose employment is terminated by reason of an admitted
commission, aid or abatement of a specified offense, shall forfeit all rights and benefits under this
pension plan, except for return of accumulated contributions as of his date of termination.
Section 32. Section 2-298 of the Atlantic Beach Code is hereby amended as follows:
• (a) Member contributions by benefit group fire shall be five and five hundred fifty-five
thousandths (5.555) percent of salary and by benefit group police bargaining unit members
covered by the current bargaining unit contract shall be one (1) percent of salary and by other
benefit group police members shall be four and eight hundred fifteen thousandths (4.815) percent
of salary which shall be deducted from the member's pay and paid over into the retirement system
at the same time as city contributions are made.
(b) Member contributions for benefit group general shall be no—less-than two (2)
percent of salary and said contribution shall be deducted from the member's pay and paid over
into the retirement system at the same time as the city contribution is made to the retirement
system.
(c) The Ccity of Atlantic Beach shall assume and pay the member contributions set
forth above in lieu of payroll deductions from members' earnings. No member shall have the
option of choosing to receive the contributed amounts directly instead of having them paid by the
city directly to the retirement system. All such contributions by the city shall be deemed and
considered as part of the member's contributions and subject to all provisions of this plan
pertaining to contributions of members. Such contributions shall additionally be considered as
part of the member's compensation for purposes of determining final average compensation and
other benefits hereunder and for determining the member's hourly wage rate for purposes of
• 18
FICA contributions, worker's compensation, and overtime compensation. The-city'stickup of a
five ndths--percent-reduction-of-eaclr-bber's
pay;-a-redaction of-two-and eight usandths (2.815)-percent of thepayof-each
lice l . " • - .- . •- -.-by-the--current-bargaining unit-contract,-a
reduction-of-four-and--eight-hundred-fifteen-thousandths--(478-1-5-)--percent-of-each-other benefit
' of-two-(2) percent ofeach-benefit general-member's
pay;-which--occurred on-a nary-1--F997
This city pick up of contributions is a result of a commensurate reduction of each member's pay
and is intended to comply with Section 414(h)(2) of the Internal Revenue Code.
(cd) If an employee leaves the service of the city before accumulating aggregate time of
five (5) years toward retirement and before being eligible to retire under the provisions of this
article he/she shall be entitled to a refund of all of his or her contributions made to the city pension
trust fund, without interest plus any interest accumulated at a rate of interest determined annually
by the Board of Trustees, less any disability benefits paid to him/her. If an employee who has
been in the service of the city for at least five (5) years and has contributed to the pension trust
fund as provided, elects to leave his accrued contributions in the trust fund, such employee, upon
attaining the age as required in Section 2-278, may retire with the actuarial equivalent of the
amount of such retirement income otherwise payable to him/her.
Section 33: The provisions adopted herein shall prevail over any existing sections of the
• Atlantic Beach Code to the extent said existing sections are contrary or inconsistent herewith.
Section 34: Severability. If any section, sentence, clause, word, or phase of this
Ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, then said
holding shall in no way affect the validity of the remaining portions of this Ordinance.
Section 35: This Ordinance shall take effect immediately upon its final passage and
adoption.
4110 19
PASSED by the City Commission on first reading this 26th day of October , 1998.
PASSED by the City Commission on second and final reading this 23rd day of
November , 1998.
SUZANNE SHA Age SSY '
Mayor/Presidin cer
Approved as to form and correctness:
/'AN C. S► "EN, ESQUIRE
City Attor ey
ATTEST:
MAL ' EN KING
Certified Municipal Cler
•
411 20