Ordinance No. 58-99-26 v ORDINANCE NO 58-99-26
• AN ORDINANCE OF THE CITY OF ATLANTIC BEACH,
FLORIDA,AMENDING CHAPTER 2,ADMINISTRATION,
ARTICLE VI, EMPLOYEE BENEFITS, TO COMPLY
WITH RECENT AMENDMENTS TO THE FLORIDA
STATE STATUTES, SEPARATING THE RETIREMENT
SYSTEM INTO A GENERAL EMPLOYEE PLAN AS
DIVISION 3,AND CREATING A POLICE OFFICER PLAN
AS DIVISION 4; PROVIDING IN DIVISION 3 OF THE
GENERAL PLAN FOR DELETION OF ALL REFERENCES
TO POLICE OFFICER OR FIREFIGHTER AND
CHAPTERS 175 AND 185 OF THE FLORIDA STATUTES;
PROVIDING FOR A SINGLE BENEFIT GROUP;
PROVIDING FOR THE MAKE UP OF BOARD OF
TRUSTEES; PROVIDING FOR TRUSTEES' TERMS OF
OFFICE; PROVIDING FOR FILLING A BOARD
VACANCY; PROVIDING FOR THE CREATION OF
DIVISION 4, POLICE OFFICER RETIREMENT PLAN;
PROVIDING FOR COMPLIANCE WITH THE
REQUIREMENTS OF CHAPTER 185 OF THE FLORIDA
STATUTES; PROVIDING FOR THE DEFINITION OF
SPECIFIC. TERMS; PROVIDING FOR A BENEFIT
4110
. GROUP; PROVIDING FOR A BOARD OF TRUSTEES,
THEIR DUTIES, COMPOSITION, TERMS OF OFFICE,
FILLING OF VACANCIES, AND ACTUARIAL
RESPONSIBILITIES; PROVIDING FOR MEETING
REQUIREMENTS, QUORUM, VOTING, AND
COMPENSATION;PROVIDING FOR THE ELECTION OF
BOARD OFFICERS AND EMPLOYMENT OF
INDEPENDENT ADVISORS; PROVIDING FOR
MEMBERSHIP REQUIREMENTS; PROVIDING FOR
CREDITED SERVICE,LOSS,AND REINSTATEMENT OF
SAME; PROVIDING FOR MILITARY SERVICE CREDIT;
PROVIDING FOR VOLUNTARY RETIREMENT AND
EMPLOYMENT AFTER RETIREMENT; PROVIDING
FOR DISABILITY RETIREMENT BENEFITS;
PROVIDING FOR PERIODIC REEXAMINATION OF
DISABILITY RECIPIENTS; PROVIDING FOR A
STANDARD PENSION BENEFIT AND OPTIONAL
PENSION BENEFITS; PROVIDING FOR SURVIVOR
PENSION BENEFITS; PROVIDING FOR COMPLIANCE
WITH THE INTERNAL REVENUE CODE AS TO
MAXIMUM BENEFITS; PROVIDING FOR
• SUBROGATION; PROVIDING . FOR CITY AND
EMPLOYEE CONTRIBUTIONS; PROVIDING FOR THE
PROHIBITION OF ASSIGNMENTS; PROVIDING FOR A
SAVINGS CLAUSE; PROVIDING FOR SEVERABILITY;
S . PROVIDING FOR CODIFICATION AND PROVIDING
- FOR AN EFFECTIVE DATE.
• WHEREAS,the City of Atlantic Beach,Florida has an interest in the future retirement of its
employees and wishes to improve the retirement system whenever feasible; and
WHEREAS, the City of Atlantic Beach, Florida recognizes the requirement to ensure
compliance of its pension ordinance and all sections thereof with all State and Federal laws governing
governmental pension plans; and
WHEREAS,the Legislature of the State of Florida made significant amendments to Chapters
175 and 185 of the Florida statutes that require amending the Code of Ordinances of the City of
Atlantic Beach, and .
WHEREAS, Firefighters are no longer employed by the City of Atlantic Beach; and
WHEREAS, Chapter 2, Administration, Article VI, Division 3, Retirement System, of the
• Code of Ordinances of the Cityof Atlantic Beach, Florida, must comply with all State and Federal
PY
laws governing pension plans 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. Chapter 2, Administration, Article VI, Division 3,Retirement System of the Code of
Ordinances is hereby amended as follows:
•
2
•
DIVISION 3. GENERAL EMPLOYEE RETIREMENT SYSTEM
Sec. 2-262. Definitions.
•
• Actuarial equivalent shall mean • -. .- '• - - • - . - - •. . - that any benefit
payable under the terms of this plan in a form other than the standard form of benefit for
members shall have the same actuarial present value on the date payment commences as such
•standard form of benefit. For the purpose of establishing the actuarial present value of any
form of payment, all future payments shall be discounted for interest and mortality by using
the 1983 Group Mortality Table, with ages set ahead five(5) years in the case of disability.
City employee shall mean any person in the employ of the city, other than Police Officers
and Firefighters.
Compensation shall mean 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, salary or wages while absent from work on account of vacation;
holiday, or illness, . . • - ' - .. ' - • ' - • . • ••' • • 'Tic
• . . - '14 . lurida Statutes. 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.
Firefi: • -. . • - .loge f ed-fire-fighter
in-accordance-witirthe-provisions-Se '• • . , • '• , tatutesTand-who-holdsthe-rank
• ..' •.. '. . • - _ - . - - - nut
_hter-shall
•include any civilian city employee-empl , . • .- • . • •-9 .
• - - • - - _- , • . • .- • . '•. -ly-employed-aS
•, • i - -. • - . • •-- - . • •-. . • - .• - •- .,rtmen Who-is
- ' -. • -. . -. • .- - -. . . . •• - 1 . - - • - • .Ita11 •onS
• I �= :, • '. • • - , . . • • . - . . • •1-officer or higlrei;
including pi obationaiypatr. •' - . - - .• ' e-offcershall-not-i-ncl
.
- . . • - - . • •-. - .• - . - .. - .. • I- • - . • •-. . . .• - • - . .
emergency,-o . • .- • . '•. - • - .loyed as a
Retirement shall mean an employee's separation from city employment as an employee
with immediate eligibility for receipt of benefits under the retirement system.
Sec 2-263. Benefit groups.
(a) The following benefit groups are is hereby designated for the purpose of determining
a retirement system member's applicablebenefit eligibility conditions and benefit amount:
(1) Benefit group general shall consist of all members not included in one-of the-benefit
• groups-which fulbw; another city pension plan.
3
(2) .. . .. _
•
(3) : - - _ .. . .. ' - .. . • . . - berswh. . - . . .. • - . -
4110 (b) Benefit eligibility condition shall be based on the member's benefit group at the time
of termination of city employment. Benefit amounts shall be based on the amount of credited
service acquired in each benefit group general.
•
•
Sec. 2-266. Same-Composition. •
The board of trustees shall consist of five (5) trustees as follows:
(1) Two(2)residents of the cityto be selected by the city commission and serve at the
pleasure of the city commission,who may also serve as trustees of the police officer
retirement system created in division 4 hereof;
•
(2) One(1)Two(2)members of the retirement system who • -• - • • - • ' - -
a firefighter are employees of the city, but not the-chief ofeitherdepartment police
officers or firefighters, to be elected by the members of the retirement system who
are also .. • - . ' - • - - similarly situated employees of the city;
(3) - ..
faufighter, but not the-dief of eitlre, departmen . .- - - -• • • - - - -
the retirement system who are neither poli - . ' - . - - ,
• (4),( ) One (1) resident of the city to be selected by the other four (4) members of
the board of trustees, and whose appointment shall be confirmed by a vote of
the city commission.
The elections provided for in subsections (2) and (3) of this section shall be held in
accordance with such rules as the board of trustees shall from time to time adopt.
Sec. 2-267. Same— Term of office; oath of office.
The regular term of office of a member of the board of trustees shall be four(4)years for
civilian members, and four (4) years for employee representatives, unless they terminate
employment, whereupon a new election will be held by the members of the plan to fill the
unexpired term of their trustee representatives, and one (1) year for the trustee selected by
the other four (4) 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 article is
adopted, the term of the next succeeding civilian member shall be for one (1) year and the
term for the next succeeding poli-c- . ' - • - - -• - - • • - • i- • ••
- - -.. ' - . ' - o refighte -employee
representative shall be for three (3) years, with all civilian member and employee
• 4
representative trustees having four-year terms thereafter.
Sec. 2-271. Membership.
• (d) 'Effective June 1, 1999, all firefighter employees of the City of Atlantic Beach are
hereby consolidated into the City of Jacksonville Fire Department. On execution of this
action, City of Atlantic Beach firefighter employees became members of the City of
Jacksonville Police and Fire Pension Fund with full rights and benefits in accordance with
Chapter 121, City of Jacksonville Ordinance Code, and with other applicable law. Such
consolidation is in accordance with Resolutions 95-944-256 and 98-1006 of the City of
Jacksonville, which provide for an Interlocal Agreement between the Cities of Jacksonville
and Atlantic Beach entered into by these Cities effective on the 1st day of June 1999; and the
City of Jacksonville's Ordinance 1999-472-E, which was enacted on the 25th day of May,
1999 and approved on the 1st day of June 1999.
Sec. 2-272: Credited service.
Service rendered by a member of the retirement system shall be credited to the member's
individual credited service account in accordance with rules the board of trustees shall from
time to time prescribe and in accordance with.the applicable provisions of Chapters 175 and
1-85; the Florida Statutes. .In no case shall more than one (1) year of credited service be
credited on account of all service rendered by a member in any one period of twelve (12)
consecutive calendar months. Service shall be credited to the nearest one-twelfth of a year.
Service shall be credited for the total number of years, and fractional parts of years, of service
of the member.
• Sec. 2-275A. Military service credit.
(a) A member of the retirement system who leaves or left city employment voluntarily
or non-voluntarily 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 have required periods of active duty credited as city service subject to the
following conditions:
(1) The member is re-employed by the city ' • - . • . • as provided
in the Uniformed Services Employment and Reemployment Rights Act(USERRA)
after the date of termination of such active duty;
(2) In no case shall more than six-(6)-the years of service provided for in USERRA be
credited on account of all military service.
(3) Notwithstanding any provision ofthis article to the contrary,contributions,benefits,
and service credit with respect to qualified military service will be provided in
accordance with USERRA and Section 414(u) of the Internal Revenue Code.
(b) The board of trustees shall determine the amount of service to be credited a member
5
under the provisions of this section and USERRA.
(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 or in a position not covered by this pension plan and receive
retirement benefits from his/her previous employment and compensation from
his/her reemployment.
(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 in a position covered by this pension plan shall have
his/her pension benefit suspended during the period of such reemployment and shall
receive additional credited service from his/her reemployment.
Sec. 2-276. Voluntary retirement conditions; employment after retirement.
(a) A member of the retirement system may retire upon satisfaction of each of the
following requirements:
(3) The member has met one—of-the age and service requirements for retirement
specified in subsection (b) • •• • • • - • - - •- •- - •.
Upon retirement, a member shall be paid a pension computed according to the applicable
• subsections of section 2-281.
(b) The age and service requirements for voluntary retirement are-as-follows:
• -. • •• • • • -, - - ber-at-any-age-has
VT •
• .' • -, • , - -
att.' -• ._- • • •: •-. •r-oider—and has five-(5)-or-more-years-of-credited
•. • : . . - •-. • -. -. - . • -, - - • • • • •t-
•
-, • , - - • •
attained age sixty (60) years or older, an. . •- • • - •-. • -•• -d
se ,
(3) Benefit group genetai -T-he mennlrei lids attained age sixty(60) years or older, and
has-five (5) or more years of credited service in force.
4110 6
Sec. 2-278. Deferred retirement upon separation from employment (vesting).
(b) The credited service requirement for separation from city employment with
• entitlement to deferred retirement is:
(1) Benefit group fire: Five (5) years;
F_five (5) years.
Sec. 2-279. Disability retirement— General conditions for eligibility.
(a) A member having five (5) or more continuous years of credited service and having
contributed to the retirement system for five(5)years or more may retire from the service of
the city if 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). Such retirement shall herein be
referred to as"disability retirement". The five . • -•• -cFservice-requii ement shall
• . . • • • .• • - • • - . . - - .' . . -. • I " -. - • • - • - 9 • . .
- ;'
. •- - • . • .• - • - ,• - • - , . . -• - - • . • • . .e
• ._ ..• - ,- - • - . - • .- . •• . - . •-. • -.' -d
service.
(1) Foi fire and p. •• - .. 1 •. • ••- . - .' . .' ' •, . . - -. ' . • - '•n (a) of
- - - •lt of . . . -. .- . • , - •.
• - • • • - ; _ , • .- - . , -• .' . - • • . - ' - . - • - •-
shall-be-presumed-to-have-been-in f-duty-unless-the-contrary-is
• .. • • • e- - - •'. - - • . 1 - . • • • • - . 1 . '•
•
• . . -• . .. • ; •
_ • . - • - .-• -. - - ; - - . - . • • • .
'
. -, . . . • • -. . . - ,- .' 1 _ .
• . • • II - . 09- . . •
•
meninges • • - . • . . .
(b) A member will be considered disabled if, in the opinion of the board of
trustees, the member is totally and permanently prevented from rendering useful and efficient
service
- - . - _ - , . - .' . .- - _ •. . -,
(2) As a police officer, if a member of benefit—group—police,—or
(3) Aas a city employee, • - •- • •- - •. . .- - • .
If-a-firefighter-or a police-officeris-found-by-the-b s-to-have-beelydisabled
- - • •- •• . •• . ." • . .- . - - -. . - 9. • - • - ' : 4 - . • .
• 7
• - - - -1 1• -I .• • •1. . 1 .1 • • • • • ..• - • - -.1 •
• - _ - • .• - • 6 - - .9 • • • 1• •• .- • -1 . • • ••. • . - •, .-
. - 1 11 • . - .-- 1 -1 - - • . 1 • 1 1 - • •• • - • 1• • . • • 9- -
• - ,- •_ - • .• - • ' - . •. 1 - 1 • passed
- . ; . •. -
•
• •
•
•
1 . -. • - • -.. • . - . . 9 - 9 •
(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, • • . •• • - • - • _ - , • •- •• •- - • . . _-
compertsa . , •. ; - • - -. -
(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 ••• ; - •- - •1 . • • - - .-
reemployed by the city.
Sec. 2-280. Same-Continuation subject to re-examination; return to employment.
(a) The Board of Trustees may require a disability retirant to undergo periodic medical
examination if the disability retirant has not attainedthe-following-applicable age sixty (60)
• years.
(1) Benefit-group- :. - : • •: •-• ,
(2) Benefit group police: Age sixty (60) yea,J,
(-5)—Benefit group-bgeneral-Age-sixty-((-i0)-years
(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. S—
credited---for-the-period the disability-retirant-wasb ability-pensio r.
Sec. 2-281. Amount of level straight life pension.
(a) Benefit group-frrefi . Subject to secti• - : , - . •• • - •-1-straight-fife
pensiorrofthe-r- ' - - • - - .- . 1-b ember`sbenef tg oup
fire credited-serve - 1 • '-1 . • 1 - _ - _-
compensation
(b) Benet ct-to-se - , he ailluunt of level—straight—life
- - ' ' - .- .- - •1 . •• ' -credited-service-multiplied
• 8
•
I • - - . - - . - - . -
(c& Benefit group general. Subject to section 2-285, 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 two and eighty-five hundredths (2.85) percent of the retiring
member's final average compensation.
(dh) Cost-of-living adjustment. All retirement system members and beneficiaries who
retired prior to January 1, 1997,shall receive a one-time cost-of-living adjustment,which shall
be in an amount equal to three (3) percent of the benefits paid to such retired members and
beneficiaries during the immediately preceding month.
Sec. 2-284. Alternate death while in city employment pension to spouse and/or
children.
(b) The person to whom the deceased member was married at the time of death shall
be paid a pension equal to a seventy five percent (75%) 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. e
e plicab1e-followii g percent:
(+)-Benefit-groupfire--Seventy=five-(-7-5)-percent;
(2) Benefit group p. ' -. - •- - • - .ercent;
• (3) Benefit group general:-Seventy-five(75) percent.
A surviving spouse's pension shall terminate upon death.
(c) The deceased member's unmarried 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 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 -• . • - • •• ' • • - • • •••
percent
: - . . . - • i . - . . . - •.. • I - '• .-' .•accordance-witirt '.
h-e-provisi• . . . - •• . . .• • : .- - . . ' : .- ••1 • 9- ••
• 9 - _ .• . • • . . - ••' - . • .. . . . . - • .
(2) Benefit group police. Zero (0)percent during-periacis-a-pension-isbeing-laid
. . - ..' - , • •• •• • II - . . . • •- - .\.r� • .- '.• • .- ion
•
• •- ..'. • • . . - • - . . • '• . . . - /f
• - • - • . Zzero (0)percent during periods a pension is being paid in
accordance with the provisions of subsection(b): Ffifty(50)percent during periods a pension
i9
•
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(19), but less than twenty three(23), upon no longer being enrolled as a full-
time student in an educational institution, marriage, or death, and the pension of each
remaining eligible child shall be recomputed.
Sec. 2-288. City contribution.
(a) The plan shall be funded by contributions from member contributions, as provided
in Section 2-298, . - • •' •'• -• . ' . . •• . : . • : , contributions
from the city and other income sources as authorized by law.
(b) . - . . . - . - - . . ..
.. . . . •• : •. . • , •• 1 . - . .- . - .. -. . - . .
withirrfive-(5)-calendar-days-ofreceipt-by-the-city-with-the-und-erstanding-that-these-premium
- •- . - . .- .- .. -. . . • .- • - - . .. . . • •nd-may-not-be
purpose:
(c) 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
. . .1 • - . e• . -• • • . . - •• • . 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 Florida
Statutes required annual actuarial valuation.
• 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
• .. - - • . '
.. -. . . • • I . - U •- _- • .•'. -. - . . I I- - .1 ,.
• - - - .nnot be covcied by the wienc,uhrbeied-balance in the plan. The
board shall annually certify to the city the contributions determined according to this section,
and the city shall appropriate and pay to the retirement system, the contributions so certified.
(dc) 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.
Sec. 2-290. Investment.of retirement'system assets.
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,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,
• 10
bonds, or other property in his own right. The trustees are authorized to vary-fronrthe
• - • . -• • - •• • . . • , • • invest in those stocks, bonds
and other securities permitted by the investment policies or guidelines adopted by the trustees.
• (a) Delegation and Allocation of Investment Functions.
(1) The tTrustees 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 tTrust fFund as the tTrustees
shall specify. Any such appointment may be terminated by the tTrustees upon
written notice. The fees of such investment manager shall be paid out of the tTrust
fFund. The tTrustees 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, •• • • ••
175 and 185.
Sec. 2-291. Divisions Reserved.
- ' - - • - . • • .f three •••• •• , • - • - •ers-who--are
police—office , . - - •- •• • • - - • - , . . • - • . • -
members: S-epa . - . •. • • - . . •• - - • - - • - —Shall—be
niaintainedf. -. .••• •• . • -. • • •• . - - -• •• • • •••' •• • - . -
dives-a-separate t,List fundli- • • •• •• • ion-refer-only
to-the--acco. ' - • • - - • - - • - . • •- . . . . -pp' '
• • • . -i . •• • he-assets-of th- - ' - - • - •- ••een-the-clivi sior
Sec. 2-298. Member contributions.
• - .- • .. • . • . - - • •. . - . V- I - . •- . . •-
•
•
•
•• ; • . - .- - . .- -. .• - . - .. .• . • . . •- . -
two and three - •• • • • - -U •- - • . • • • • • • • er
benefit group police-m- •- . •- - . •• . -• • • -• ' -- •• . •
' cl-paid-overinto
the retirement system at the-same time as city contributions are made.
(ba) Member contributions for benefit group general shall be two (2) percent of salary
and said contribution shall be deducted from the member's pay and paid over into the
retirement system at least monthly - ' • • •• • .• - • e
(cb) The City of Atlantic Beach shall assume and pay the member contributions set forth
• 11
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 pait 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 ofFICA contributions,worker's compensation,and overtime compensation.
This city pick up of contributions is a result of a commensurate reduction of each member's
pay which occurred on January 1, 1997, and is intended to comply with Section 414(h)(2) of
the Internal Revenue Code.
(dc) 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/her contributions made to the city
pension trust fund, 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 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.
(ed) If a member who terminates employment elects a refund of contributions and:
(1) Some or all of the refund is eligible for rollover treatment, as defined by the
ilnternal rRevenue sService;
(2) Elects to have such eligible distribution paid directly to an eligible retirement plan
or IRA, and
(3) Specifies the eligible retirement plan or IRA to which such distribution is to be paid
(in such form and at such time as the distributing plan administration may
prescribe),
The distribution will be made in the form of a direct trustee-to-trustee transfer to the specified
eligible retirement plan.
Section 2. Chapter 2, Administration, Article VI, Division 4, Police Officer Retirement
System of the Code of Ordinances is hereby created as follows:
• 12
DIVISION 4. POLICE OFFICERS' RETIREMENT SYSTEM
• Sec. 2-261A. Created, purpose.
The Police Officers' Retirement System is hereby created and established for the purpose of
providing pensions and death benefits for the Police Officers of the city and their dependents
in accordance with Chapter 185 of the Florida Statutes. The effective date of the retirement
system is on adoption of this ordinance. However, all benefits in existence under all previous
retirement systems or plans effective after December 22, 1975 shall remain in effect and be
included as a part of this retirement system.
Sec. 2-262A. Definitions.
The following words and phrases as used in this division shall have the following meanings
unless a different meaning is clearly required by the context:
Actuarial equivalent shall mean that any benefit payable under the terms of this plan in
a form other than the standard form of benefit for members shall have the same actuarial
present value on the date payment commences as such standard form of benefit. For the
purpose of establishing the actuarial present value of any form of payment,all future payments
shall be discounted for interest and mortality by using the 1983 Group Mortality Table, with
ages set ahead five (5) years in the case of disability.
Beneficiary shall mean any person 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.
Board of trustees or board shall mean the board of trustees provided for in this division.
City shall mean the City of Atlantic Beach, Florida, and shall include officers, boards,
departments and instrumentalities.
Compensation shall mean the total cash remuneration paid a member for service rendered
to the city. Compensation shall include base salary or wages, longevitvpay, overtime pay,
cost of living payments, salary or wages while absent from work on account of vacation,
holiday, or illness, and will also include incentive pay as defined in Chapter 943.22 Florida
Statutes. Compensation shall not include redemptions or payments in consideration ofunused
vacation time or sick leave, the value of any fringe benefit, uniform allowances, equipment
allowances, reimbursement of expenses, or payments for extra duty or a special detail work
performed on behalf of a second party employer or any other item not specifically included.
Credited service shall mean the service credited a member as provided in this division.
110 13
Final average compensation shall mean one/sixtieth of the aggregate amount of
compensation paid a member during the period of sixty(60)months of the member's credited
service in which the aggregate amount of compensation paid is greatest. The sixty (60)
• months of credited service must be contained within the member's last one hundred twenty
(120) months of credited service. If a member has less than sixty (60) 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.
Member shall mean any person who is a member of the retirement system.
Pension shall mean 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 division.
Pension reserve shall mean 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.
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
185.02(11.) and 943.14, Florida Statutes, 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.
41) Regular interest shall mean such rate 'or rates of interest per annum, compounded
annually, as the board of trustees shall from time to time adopt.
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.
Retirement shall mean a police officer's separation from city employment as a police
officer with immediate eligibility for receipt of benefits under the retirement system.
Retirement systems or system shall mean the city retirement plan created and established
by this division.
Service shall mean personal service rendered to the city by a police officer.
Workers' compensation benefits shall mean any amounts paid a retirant, beneficiary,
spouse, or child pursuant to any workers' compensation or similar law. Redemptions or
settlements of workers' compensation claim shall be considered workers' compensation
benefits. Payments in consideration of medical expenses shall be disregarded in the
determination of workers' compensation benefits.
• 14
Sec. 2-263A. Benefit groups.
La) The following benefit group is hereby designated for the purpose of determining a
41111 retirement system member's applicable benefit eligibility conditions and benefit amount:
(1) Benefit group police shall consist of all members who are also police officers.
fijo Benefit.eligibility conditions shall be based on the member's benefit group at the time
of termination of city employment. Benefit amounts shall be based on the amount of credited
service acquired in benefit group police.
Sec. 2-264A. Board of trustees - Responsibilities and duties generally.
The general administration, management, and responsibility for the proper operation of the
retirement system, 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. Such responsibilities and duties shall
be conducted in such manner as to comply with the requirements of Chapter 185 of the
Florida Statutes, and shall specifically include compliance with section 185.06 therein.
Sec. 2-265A. Same- Actuarial data; report to city commission.
&I The board shall keep or cause to be kept, in convenient form, such data as shall be
recommended by its actuary and as required by state law (Chapters 112 & 185 F.S.) for the
operation of the retirement system on a sound 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.
(b) The board shall render all reports required by state (Chapter 185, F.S.) or federal
law to appropriate agencies,with a copy to the city commission, on or before the first day of
April of each year showing the fiscal transactions of the retirement system for the year ended
the preceding thirtieth day of September, the assets of the retirement system as of the
preceding thirtieth day of September, and a copy of the most recent actuarial report.
See. 2-266A. Same- Composition.
The board of trustees shall consist of five (5) trustees as follows:
a) Two (2), unless otherwise prohibited by law, shall be legal residents of the city,
appointed by the city commission, who may serve as trustees of other City Boards
including the General Employees Retirement System provided herein;
(2) Two(2)Police Officers to be elected by the active police officers who are members
of the retirement system;
4110
15
L3) One (1) trustee to be selected by the other four (4) members of the board of
trustees, and appointed as a ministerial act by the city commission.
The elections provided for in subsection (2) of this section shall be held in accordance
• with such rules, as the board of trustees shall from time to time adopt.
Sec. 2-267A. Same- Term of office; oath of office.
The regular term of office of a member of the board of trustees shall be two (2) years for
resident appointees, and two (2) years forelected representatives, unless they terminate
employment, whereupon a new election will be held by the members of the plan to fill the
unexpired term of their trustee representatives. The term of office for the trustee selected
by the other four members of the board shall be two (2lvears. 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.
Sec. 2-268A. Same - Vacancy; filling of vacancy.
,(,a) A vacancy shall occur on the board of trustees if any member resigns or any
employee representative ceases to be employed by the city.
If a vacancy occurs on the board of trustees, the vacancy shall be filled within ninety
(90) days for the unexpired term, in the same manner as the position was previously filled.
Sec. 2-269A. Same-Meetings; quorum; voting; compensation.
The board of trustees shall hold meetings regularly, at least one (1) 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. Notice of such meetings shall be posted on employee bulletin
boards so that all members will be aware of the meeting. 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 three (3) concurring votes shall be
necessary for a decision by the board. Each trustee shall be entitled to one(1)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 in accordance with Florida
Law.
Sec. 2-270A. Officers and employed services.
The officers and employed services of the retirement system shall be as follows:
(1) Chairperson: The board shall annually elect a chairperson from its members.
(2) Secretary. The board shall annually elect a secretary of the board from its members,
who shall sign the minutes of each meeting and be the custodian of the retirement
• 16
system's records and shall perform such duties as required in Chapter 185 of the
Florida Statutes.
12 Legal Advisor: the board is empowered to employ independent legal counsel.
•
,l Actuary: The board is empowered to employ an independent 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 division shall mean an
"enrolled actuary" who is enrolled under Subtitle C of Title III of the Employee
Retirement Income Security Act of 1974 and who is a member of the Society of
Actuaries of the American Academy of Actuaries. A partnership or corporation
may be appointed actuary if the duties of the actuary are performed by or under the
direct supervision of an enrolled actuary and the enrolled actuary signs and is
responsible for all final documents submitted by the partnership or corporation.
(5) Administrative Manager: The board is empowered to 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:
Administer the office or offices of the retirement system and of the board;
(b) Coordinate and administer the accounting, bookkeeping, and clerical services;
Provide for the coordination of actuarial services furnished by the actuary;
•
(d) 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.
(6) Other 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 determined in accordance with procedures
established by the board in accordance with Chapter 185 of the Florida Statutes.
Sec. 2-271A. Membership.
f All persons who are city police officers, and all persons who become city police
officers, shall be members of the retirement system, except as provided in subsection (b) of
this section.
• . 17
(2) The membership of the retirement system shall not include:
(1) Any police officer who is employed in a position normally requiring less than one
thousand (1,000) hours of work per annum;
21 The chief of the police department may opt not to become a member of the
retirement system. Such option shall be made within sixty(60)days of appointment
as police chief and shall be irrevocable;
Police officer positions which are compensated on a basis not subject to the
withholding of federal income taxes or FICA taxes by the city;
O Temporary police officers;
Elected officials of the city;
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 one thousand (1,000)
or more hours or work in a year, or upon becoming employed in an excluded position.
Sec. 2-272A. Credited service.
Service rendered by a member of the retirement system shall be credited to the member's
individual credited service account in accordance with rules the board of trustees shall
from time to time prescribe and in accordance with the applicable provisions of Chapters
185, Florida Statutes. In no case shall more than one (1) year of credited service be
• credited on account of all service rendered by a member in anv one period of twelve (12)
consecutive calendar months. Service shall be credited to the nearest one-twelfth of a
year. Service shall be credited for the total number of years, and fractional parts of years,
of service of the member.
Sec. 2-273A. Loss of credited service.
A retirement system member's credited service shall be forfeited and no longer in force
if the member terminates city employment with less than five (5) years of credited service.
Sec. 2-274A. Reinstatement of credited service.
• A member's 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 (5) 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 2-298A(c) hereof, plus interest at the actuarially assumed rate, in
accordance with terms established by the board of trustees.
• 18
Sec. 2-275A. Military service credit.
fa,) A member of the retirement system who leaves or left city employment voluntarily
or non-voluntarily 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 have required periods of active duty credited as city service subject to the
following conditions:
ID The member is re-employed by the city as provided in the Uniformed Services
Employment and Reemployment Rights Act (USERRA) after the date of
termination of such active duty;
(2) In no case shall more than the years of service provided for in USERRA or within
FS 185 be credited on account of all military service.
(3) Notwithstanding any provision ofthis article to the contrary,contributions,benefits,
and service credit with respect to qualified military service will be provided in
accordance with USERRA, FS 185, and section 414(u) of the Internal Revenue
Code.
Ib) The board of trustees shall determine the amount of service to be credited a member
under the provisions of this section and USERRA.
Sec. 2-276A. Voluntary retirement conditions; employment after retirement.
• A member of the retirement system may retire upon satisfaction of each of the
following requirements:
(1) The member files written application for retirement with the board of trustees
setting forth the date retirement is to be effective.
(2) The member terminates all his/her city employment normally requiring one thousand
(1,000)hours of work per annum on or before the date retirement is to be effective.
The member has met the age and service requirements for retirement specified in
subsection (b).
Upon retirement, a member shall be paid a pension computed according to the applicable
subsections of section 2-281 A.
(b) The age and service requirements for voluntary retirement are:
(1) Normal Retirement: the member has attained the age of fifty(50) or older and has
twenty(20)years or more of credited service in force;or the member at any age has
twenty-five (25) years of credited service in force; or the member has attained the
age of sixty (60) years, and has five 15) years of credited service in force.
• 19
Lcj Employment after retirement:
a) 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 or in a position not covered by this pension plan and receive
retirement benefits from his/her previous employment and compensation from
his/her reemployment.
f 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 in a.position covered by this pension plan shall have
his/her pension benefit suspended during the period of such reemployment and shall
receive additional credited service from his/her reemployment.
Sec. 2-277A. Normal Retirement Date and Payment Date.
The normal retirement date of each member shall be the first day of the month
following the effective retirement of the member as indicated in the member's retirement
application and as approved by the Board of Trustees.
fl) The monthly retirement income payable in the event of normal retirement shall be
payable on the first day of each month and as provided in Section 185.16(3).
Sec. 2-278A. Deferred retirement upon separation from employment (vesting).
• fa,) A member of the retirement system who terminates city employment prior to
satisfying the requirements for voluntary retirement under Section 2-276A for a reason other
than retirement or death,who has not received a refund of his/her member contributions, and
who has the applicable period of credited service specified in subsection (b) shall remain a
member and be entitled to be paid a pension upon attaining the age and service requirements
for voluntary retirement, as set forth in Section 2-276A. Upon attaining the age and service
requirement for voluntary retirement,the member shall be paid a pension computed according
to the applicable subsections of Section 2-281A as those subsections were in force at the time
a member left city employment.
fib) The credited service requirement for separation from city employment with
entitlement to deferred retirement is five (5) years.
A member of the retirement system who terminates city employment prior to
satisfying the five (5) year requirement for deferred retirement under Section 2-276A is
entitled to a full refund of his/her contributions, plus interest as determined by the board of
trustees.
Sec. 2-279A. Disability retirement - General conditions for eligibility.
fa) If a member, prior to his normal retirement date, becomes totally and permanently
• 20
disabled as defined in subsection (b) by reason of any cause other than a cause set out in
subsection(c)the member shall be eligible.for disability retirement. The minimum benefit for
any member disabled in the line of duty shall be forty-two (42) percent of the final average
salary,regardless of years of credited service. The minimum benefit for any member disabled
not in the line of duty who has eight and one third (8 1/3) years of credited service shall be
twenty-five percent (25%) of the final average salary.
(1) A permanent disability 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 F.S. section
112.181(2).
fb) A member will be considered disabled if, in the opinion of the board of trustees, the
member is totally and permanently prevented from rendering useful and efficient service as
a city police officer and will be considered permanently disabled if, in the opinion of the board
of trustees,he is likely to remain so disabled continuously and permanently from a cause other
than as specified in subsection (c).
(c) A member will not be entitled to receive any disability retirement income if disability
is as a result of:
Excessive and habitual use by the employee of drugs, intoxicants, or narcotics;
•
Injury or disease sustained by the employee while willfully and illegally participating
in fights, riots, or civil insurrections or while committing a crime;
(3) Injury or disease sustained by the employee while serving in any armed forces: or
(4) Injury or disease sustained by the employee after his/her employment has
terminated.
(5) Injury or disease sustained by the police officer while working for anyone other
than the city and arising out of such employment.
fd) No member shall be permitted to retire under the provisions of this section until
he/she is examined by a duly qualified physician, surgeon, or other medical or psychological
professional 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 may be examined periodically by a duly qualified physician, surgeon, or other
medical or psychological professionals or board of physicians, surgeons, and other medical
or psychological professionals 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
• 21
examination, the member's disability pension shall be suspended until such time as the
member submits to the examination.
S (e) The benefits payable to a member who retires from the service of the city with a
l and permanent disability as a direct result of a disability commencing prior to his/her
normal retirement date, is the greater of the monthly income computed according to the
applicable subsections of Section 2-281A or the minimums established in Section 2-279A(a).
fn The monthly retirement income as computed in Section 2-281 A to which a member
is entitled in the event of his/her disability retirement shall be payable monthly 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/her normal
retirement date while still disabled, the last payment will be the payment due next preceding
his/her death.
,(g1 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 a police officer employee of the city, regardless of whether the member
is re-employed by the city.
101 If the member recovers from disability and reenters the service of the city as a police
1111 officer employee, his/her service will be deemed to have been continuous, but the period
beginning with the first month for which he/she received disability retirement income payment
and ending with the date he/she reentered the city service will not be considered as credited
service for the purpose of the system.
Sec. 2-280A. Same-Continuation subject to re-examination; return to employment.
The Board of Trustees may require a disability retirant to undergo periodic medical
or psychological examination if the disability retirant has not attained age sixty (60).
If a disability retirant refuses to submit to a medical or psychological examination,
payment of the disability pension may be suspended by the board of trustees until the retirant
submits to the examination.
1.0 A disability retirant who has been restored to employment with the city as provided
in subsection 2-280(h) shall again become a member of the retirement system.
Sec. 2-281A. Calculation of pension benefit.
Normal Retirement Benefit. Subject to section 2-285A,the amount of level straight
life pension shall be equal to the retiring member's credited service multiplied by three percent
• 22
(3%) of the retiring member's final average compensation.
fi) Cost-of-living adjustment. All retirement system members and beneficiaries who
retired prior to January 1, 1997, shall receive a one-time cost-of-living adjustment, which
• shall be in an amount equal to three(3) percent of the benefits paid to such retired members
and beneficiaries during the immediately preceding month.
Sec. 2-282A. Optional forms of pension payment.
A member of the retirement plan may elect to be paid under one(1)of the following optional
forms of payment in lieu of the Normal Retirement benefit form ofj,ayment. 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 Normal Retirement benefit form if a timely
election of an optional form of payment is not made. The amount of pension under any
option shall be the actuarial equivalent of the amount of pension under the Normal Retirement
benefit form payment.
(1), Option A; Ten (10)years certain and Retirant's lie thereafter: Under Option A,
a retirant shall be paid a pension for life, however if the retirant dies prior to ten
(10) years immediately following retirement payments shall continue for one
hundred twenty(120) payments. Benefit payments shall be made to the retirant's
designated beneficiary or estate for such period.
(2) Option B; Modified joint survivor pension: Under Option B, a retirant shall be
paid a reduced pension for life with the provision that upon the retirant's death, a
• benefit as designated by the retirant of either,one hundred(100),seventy-five(75),
sixty-six and two thirds(66-2/3)or fifty(50)percent of the reduced pension benefit
shall be continued throughout the future lifetime of and paid to such person as the
retirant shall have specified by written designation duly executed and filed with the
board of trustees at the time of election of the optional form of payment.
(3� Option C;Social security coordinated pension:Under Option C, a retirant shall be
paid an increased pension to attainment of the age 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 plus the
retirant's estimated social security primary insurance amount.
0) 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.
Sec. 2-283A. Death while in city employment; elective survivor pension.
(a) Each member may, on a form provided for that purpose, signed and filed with the
board of trustees,designate a beneficiary(or beneficiaries)to receive the benefit,if any,which
may be payable in the event of his/her death, and each designation may be revoked by such
• 23
member by signing and filing with the board of trustees a new designation of beneficiary form.
(b) Upon the death of a member who has a valid designation-of-beneficiary in force,
the beneficiary, if living, shall be paid a pension benefit computed according to section 2-
281A in the same manner in all respects as if the member had elected Option B at the one
hundred percent (100%) level provided in Section 2-282A 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 section 2-281 A will automatically terminate.
fsj If a member failed to name a beneficiary in the manner prescribed in subsection(a)
above, or if the beneficiary (or beneficiaries) named by a deceased member predeceases the
member, the death benefit, if any, which may be payable under the plan with respect to such
deceased member, shall be paid by the board of trustees to the estate of such member,
provided that in any of such cases the board of trustees, in its discretion, may direct that the
commuted value of the remaining monthly income payments be paid in a lump sum. Any
payment made to any person pursuant to this subsection shall operate as a complete discharge
of all obligations under the plan with regard to such deceased member and shall not be subject
to a review by anyone,but shall be final,binding,and conclusive on all persons ever interested
hereunder. Notwithstanding any other provision of law to the contrary,the surviving spouse
of any member killed in the line of duty shall not lose survivor retirement benefits if the
spouse remarries.
Sec. 2-284A. Alternate death while in city employment; pension to spouse and/or
children.
• fAl 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 2-283A, whichever are greater, shall be paid if a member of the
retirement system has five(5) or more years of credited service 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 2-283A.
fib,) The person to whom the deceased member was married at the time of death shall
be paid a pension equal to seventy-five percent(75%)of the amount of Option A—Retirant's
life only pension computed according to the applicable subsection of Section 2-282A, based
on the deceased member's final average compensation and credited service.
A surviving spouse's pension shall terminate upon death.
The deceased member's unmarried children under the age of nineteen_09) 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 Retirant's life only pension benefit computed according to
the applicable subsection of Section 2-282A, based on the deceased member's final average
compensation and credited service. The percent shall be zero (0) percent during periods a
• 24
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 nineteen(19)years or, if
over nineteen(19)years but less than twenty three(23)years, upon no longer being enrolled
as a full-time student in an educational institution,marriage,or death,and the pension of each
remaining eligible child shall be recomputed.
Sec. 2-285A. Maximum amount of pension.
�a) The normal retirement pension payable to a member of the retirement plan who has
not previously participated in such system, on or after January 1, 1980, shall not exceed one
hundred (100) percent of his/her final average compensation. However, nothing contained
in this section shall apply to supplemental retirement benefits or to pension increases
attributable to cost-of-living increases or adjustments.
(1)) No member of the system covered by this article who is not now a member of such
system shall be allowed to receive a retirement 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 pension from another, retirement system or plan; provided that this
restriction does not apply to social security benefits or federal benefits under Chapter 67,Title
10, U.S. Code.
1') In no event may a member's annual benefit exceed the lesser of:
• (1) Any limits (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
1Not withstanding the provisions of paragraph(a)and(b)above,the annual benefit
payable to a member having at least fifteen (15)years of service shall not be less
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.
(4) 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(1). The numerator of such fraction shall
be the number of years, or part thereof, of service with the employer; the
•
25
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.
Sec. 2-286A. Subrogation rights.
• If a member of the retirements tem retirant,etirant, or beneficiary becomes entitled to a
pension as the result of an accident or injury caused by the act of a third party, the 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 retirement system pays or becomes liable to
pay on account of such accident or injury.
Sec. 2-287A. Reserved.
Sec. 2-288A. City contribution.
The plan shall be funded by contributions from member contributions, as provided
in Section 2-300A, state funding provided for in F.S. & 185.08, contributions from the city,
and other income sources as authorized by law.
fib,) State funding shall be provided from premium taxes collected and disbursed
pursuant to F.S. $ 185.08, which moneys shall be deposited in the fund within five (5)
calendar days of receipt be 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.
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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 2-300A and
the state premium taxes funding provided for in subsection (b) and other income sources as
111 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 thirty (30)years, as determined by the Florida
Statutes required annual actuarial valuation.
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 board shall annually
certify to the city the contributions determined according to this section, and the city shall
appropriate and pay to the retirement system, the contributions so certified.
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.
Sec. 2-289A. Reserved.
Sec. 2-290A. Investment of retirement system assets.
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, 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 invest in
those stocks, bonds, and other securities permitted by the investment policies or guidelines
adopted by the trustees in compliance with all requirements and limitations of Chapter 185,
of the Florida Statutes.
Delegation and Allocation of Investment Functions.
LU The Trustees shall have the power and authority to appoint one (1) 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.
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 that comply with all requirements and limitations of Chapter 185 of
the Florida Statutes.
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See. 2-291A. Expenses.
The expenses of administering the 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.
See. 2-292A. Method of making payments.
All payments under this division 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 resolution of the board of
trustees.
Sec. 2-293A. Assignments prohibited.
Generally. The right of a person to a pension,disability, death, or survivor benefit,
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 ofbankruntcy 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.
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.
"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 (10)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 includible in gross income(determined without regard to the
exclusion for net unrealized appreciation with respect to employer securities).
410
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•
,() "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.
Sec. 2-294A. Errors.
Should the board of trustees determine that any member, retirant, or beneficiary is being
paid from the retirement system more or less than is 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.
Sec. 2-295A. Protection against fraud; forfeiture.
Whoever willfully and knowingly makes,or causes to be made, or assists,conspires
with,or urges another to make,or causes to be made,any false,fraudulent,or misleading oral
or written statement, or withholds or conceals material information with the intent to obtain
any benefit available under this retirement system shall be in violation of section 185.185 of
the Florida Statutes. Any member convicted of such violation may, in the discretion of the
board of trustees, be required to forfeit the right to receive any or all benefits he/she may be
• otherwise be entitled to under this retirement system. For purposes of this subsection,
"conviction" shall mean a determination of guilt that is the result of a plea or trial, regardless
of whether adjudication is withheld.
02) 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/her
date of termination.
Sec. 2-296A. Response to claims and inquiries.
All inquiries shall be answered promptly. The final decision for approval of benefits shall
be made by the board of trustees.
Sec. 2-297A. Denial of benefits.
If any claim for benefits is denied, suspended or terminated, in whole or in part, then the
claimant shall be furnished with a notice of denial, suspension, or termination no later than
thirty (30) days after the final decision has been made. The notice shall be provided in
writing, by certified mail, and shall set forth:
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(1l The specific reasons for the denial, suspension, or termination of benefits;
• .) The specific references to the pertinent provisions of the pension plan upon which
410 the action is based and a copy of the pension plan provisions shall be furnished with
this notice,
al A description of any additional material or information necessary for the claimant
to perfect the claim, along with an explanation of why such material or information
is necessary: and
fit)) An explanation of the claims review procedure.
Sec. 2-298A. Claim review procedure.
Laj Requests for review. If a claim for benefits is denied, suspended or terminated, in
whole or in part; then the claimant may appeal to the board of trustees for a full and fair
review. In order to file an appeal, a written notice of appeal must be submitted within sixty
(60)days after the notice of denial, suspension, or termination is received by the claimant (or
such later time as the board of trustees deems reasonable). The notice of appeal shall briefly
describe the grounds upon which the appeal is based on shall be signed by the claimant. The
claimant shall be allowed to review all pertinent documents during normal business hours,and
shall be permitted to submit comments and a statement of issues for consideration by the
board of trustees.
(b), Representation. A claimant may designate an attorney or any other duly authorized
• person to act as his or her representative at any stage of the claims review procedure. Any
rights provided to the claimant during the claims review procedure shall automatically extend
to the representative designated by the claimant. A designation of representative shall be
signed by the claimant and the representative, and shall be submitted in writing.
Claims review board. The board of trustees shall rule on all appeals brought under
this section. A decision to grant or deny an appeal shall be based solely on the record before
the board of trustees, unless the board of trustees determines, in its sole discretion, that a
hearing is necessary for the proper resolution of the appeal. The board of trustees shall
decide, by majority vote, to grant or deny an appeal. The final decision shall be made bythe
board of trustees, in writing, and shall be made no later than sixty (60) days after receipt of
the notice of appeal, unless special circumstances (such as the need for a hearing) require an
extension of time. In no event, however, should the decision of the board of trustees be made
later than one hundred twenty (120) days after receipt of the notice of appeal. If an appeal
is denied, in whole or in part, then the decision shall set forth the specific reasons for the
action, with specific references to those pension planprovisions upon which the decision is
based. The claimant shall be promptly provided with a copy of this decision. The decision of
the board of trustees shall be final and binding.
Sec. 2-299A. Exhaustion of claims review procedure.
• 30
No action in law or in equity shall be brought to contest a denial, suspension, or
termination of benefits until the claimant has complied with the procedures provided in
section 2-298A,unless the board of trustees fails to render a decision as provided in 2-298(c).
In no case, however, shall ariy action be brought unless instituted within one (1)year from
• the time the claimant received the notice of denial, suspension or termination provided in
section 2-297A.
Sec. 2-300A. Member contributions.
fa), Member contributions for benefit group police bargaining unit members covered by
the current collective bargaining unit collective bargaining agreement shall be one(1)percent
of salary and for other benefit group police members shall be four and eight hundred fifteen
thousandths (4.815) percent of salary, whichsaid contribution shall be deducted from the
member's pay and paid over into the retirement system each pay period.
aol The City 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 FICA contributions, worker's compensation, and overtime
compensation. 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.
(c) If an employee leaves the service of the city before accumulating aggregate time of
five (5) years towards 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/her contributions made to the city
pension trust fund, plus any interest accumulated at a rate of interest determined annually by
the Board of Trustees, less any disability benefits paid to him/her. Any such member may
voluntarily leave his or her contributions in the fund for a period of five(5)years after leaving
the employ of the police department pending the possibility of his or her being rehired by the
same department, without losing credit for the time he or she has participated actively as a
police officer. If he or she is not reemployed as a police officer with the same department
within five (5) years, his or her contributions shall be returned to him or her.
fill 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/her accrued
contributions in the trust fund, such employee, upon attaining the age as required in Section
2-278A, may retire with the actuarial equivalent of the amount of such retirement income
otherwise payable to him/her.
fie,) If a member who terminates employment elects a refund of contributions and:
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•
j) Some or all of the refund is eligible for rollover treatment, as defined by the Internal
Revenue Service;
L2) Elects to have such'eligible distribution paid directly to an eligible retirement plan
• or IRA, and
(3) Specifies the eligible retirement plan or IRA to which such distribution is to be paid
(in such form and at such time as the distributing plan administration may
prescribe),
The distribution will be made in the form of a direct trustee-to-trustee transfer to the specified
eligible retirement plan.
Sec. 2-301A. Benefit limitations and required distributions.
1' Benefits paid under this city police officer employees retirement system shall not
exceed the limitations of Internal Revenue Code Section 415, the provisions of which are
hereby incorporated by reference.
fib,) Notwithstanding any provisions in this section to the contrary, the distribution of
benefits shall be in accordance with the following requirements and otherwise comply with
Internal Revenue Code Section 401(a)(9) and the regulations thereunder, the provisions of
which are incorporated herein by reference:
(1) A member's benefit shall be distributed to him/her not 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(70-1/2)or the calendar year in which the member retires.
Alternatively, distributions to a member must begin no later than the applicable
April 1,as determined under the preceding sentence, and must be made over the life
of the member(or the life expectancies of the member and the member's designated
beneficiary) in accordance with regulations.
Distributions to a member and his/her beneficiary shall only be made in accordance
with the incidental death benefit requirements of f Internal Revenue] Code Section
401(a)(9)(G) and the regulations thereunder.
Sec. 2-302A. Benefit Enhancements:
To the extent that additional premium(Sec. 185)tax dollars over those received for calendar
year 1997 become available to incrementally fund the cost of enhancements, the following
benefits, as required by FS 185, shall be considered by the City Commission.
fa) Normal Retirement. A normal retirement benefit for members who have attained the
age of fifty-five (55) years and have ten (10) or more years of creditable service shall be
established.
• 32
(b) Normal Retirement - Ten (10)year period certain. A normal Retirement benefits
will be paid for a ten (10) year period certain and life. In the event the officer dies after
retirement but before receiving retirement benefits for a period of ten (10) years, the same
1111 monthly benefit will be paid to the beneficiary for the balance of such ten (10) year period,
or if no beneficiary is designated, to the estate of the police officer.
fc) Early Retirement. A member who has attained the age of fifty(50)years and has ten
years of credited*service in force, shall be eligible for an early retirement. The amount of an
early retirement benefit shall be calculated as provided in Sec. 2-281 A(a)taking into account
credited service to the date of actual retirement and final monthly compensation as of such
date. Such amount of retirement income shall be actuarially reduced to take into account the
participant's younger age and earlier commencement of retirement income payments. In no
event shall the early retirement reduction exceed three percent (3%) for each year by which
the member's age at retirement preceded the member's normal retirement age.
(d) Early Retirement - Ten (10) year period certain. An Early Retirement Benefit
benefits will be paid for a ten (10) year period,certain and life. In the event the officer dies
after retirement but before receiving retirement benefits for a period of ten (10) years, the
same monthly benefit will be paid to the beneficiary for the balance of such ten (10) year
period, or if no beneficiary is designated, to the estate of the police officer
(e) Deferred Retirement upon Separation. Any police officer who has been in the
service of the city for al lest ten (10)years elects to leave his or her accrued contributions in
the plan, such police officer upon attaining age fifty(50)years or more, may retire under the
provisions as set out for an Early Retirement.
(f) Deferred Retirement - Ten (10)year period certain. Such benefits will be paid for
a ten(10)year period certain and life. In the event the officer dies after retirement but before
receiving retirement benefits for a period of ten(10)years, the same monthly benefit will be
paid to the beneficiary for the balance of such ten (10) year period, or if no beneficiary is
designated, to the estate of the police officer.
(g) Disability Retirement - Ten(10)year period certain. Such benefits will be paid for
a ten(10)year period certain and life. In the event the officer dies after retirement but before
receiving retirement benefits for a period of ten (10) years, the same monthly benefit will be
paid to the beneficiary for the balance of such ten (10) year period, or if no beneficiary is
designated, to the estate of the police officer.
fh) Employee death - Ten(10)year period certain. If any police officer having at least
ten(10)years of credited service dies prior to retirement, his or her beneficiary is entitled to
the benefits otherwise payable to the police officer at early or normal retirement age.
Secs. 2-303A-2-310A. Reserved.
Section 3. The provisions adopted herein shall prevail over any existing sections
• 33
of the Atlantic Beach Code to the extent said existing sections are contrary or inconsistent
herewith.
•4 Section 4. Severability. If any section, sentence, clause, word, or phrase 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 5. Codification. Specific authority is hereby granted to codify this
ordinance,
Section 6. This Ordinance shall take effect December 31, 1999.
PASSED by the City Commission on first reading this 26th day of June
2000.
PASSED by the City Commission on second and final reading this 10th day of
July , 2000.
ATTEST:
I
City lerk Tt'.-j ,.yo. ''residing Officer
Approved as to form and correctness:
City Atto,f y
LEGEND: Underlining is new language.
Sty ikethrough is old-language.
1410
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